Volume 28 • Number 12 • DECEMBER Volume 19 66 •• JUNE 2008 19 •• Number Number JUNE 2017 2008
Business Business Solutions Solutions for for Retail Retail Decision Decision Makers Makers
® ® A A
HARBOR COMMUNICATIONS H A R B O R C O M M U N I C AT I O N S
P U B L I C AT I O N P U B L I C AT I O N
®
Recognizing this Year’s Industry Frontrunners
Figuring Out the Future of Tobacco .....45 Dazzling Customers Across Dayparts ....48 C-Stores Power Through Storms ........52
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Volume 28 • Number 12 • DECEMBER 2017 Volume 19 • Number 6 • JUNE 2008
Business Solutions for Retail Decision Makers
® a
H A R B O R C O M M U N I C AT I O N S
p u b l i c at i o n
IS DIESEL CONTAMINATION DAMAGING YOUR SYSTEM? 3 OUT OF 4 OWNERS/OPERATORS HAD NO IDEA THEY HAD CORROSION Environmental Protection Agency Underground Storage Tank Study, July 2016
Rust/Corrosion
Microbial Growth
Fungus/Mold/Yeast
Sludge buildup
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THE SOLUTION
• 83% of diesel tank systems exhibited moderate or severe corrosion (water, acids, microbial, and ethanol) • 75% of owner/operators had “no idea” they had corrosion • Every tank load of delivered diesel fuel can have up to 7 gallons of water Rust/Corrosion
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RUST
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Blue
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DEPARTMENTS 8 Editor’s Memo: Developing Leaders at Your
Company 10 Front End: CSD’s Quick Bites 12 Front End: Industry News 13 Front End: Developer Welcomes Royal
Farms to Sparrows Point 14 Convenience Store Solutions: Are Bad
Breaks Bad Luck or Bad Choices? 16 NAG Brings Attendees to Nashville 24 Cover Story: 2017 40 Under 40:
Recognizing this Year’s Industry Frontrunners
®
DECEMBER 2017 • Volume 28 • Issue 12
45 Category Manager's Column:
Figuring Out the Future of Tobacco
InsidethisIssue
48 Foodservice: Dazzling Customers Across
24 2017 40 Under 40
Dayparts
This year’s 40 Under 40 class represents a wide range of individuals who boast innovative thinking, business smarts, community engagement and professionalism. It’s also what keeps the c-store industry sprinting forward.
52 Operations: C-Stores Power Through Storms
45 Figuring Out the Future of Tobacco
60 Quick Stop
While some segments such as smokeless remain steadfast, the dynamics surrounding other tobacco products—including vape—are changing in part because of manufacturers’ aspirations to get their offerings to market.
61 Ad Index
56 New Stuff!
62 Industry Perspectives: Looking at 2018
and Beyond
48 Dazzling Customers Across Dayparts Retailers that position their stores as foodservice destinations are making a promise to offer fresh, enticing meals and snacks day and night. It’s a promise they can’t afford to break.
45
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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 .
EDITORIAL
CONTRIBUTING EDITORS
Vice President, Editor-in-Chief John Lofstock jlofstock@csdecisions.com Senior Editor David Bennett dbennett@csdecisions.com Senior Editor/News & Online Erin Rigik Del Conte edelconte@csdecisions.com Associate Editor Howard Riell hriell@csdecisions.com Associate Editor Marilyn Odesser-Torpey mot@csdecisions.com
ART
ADVERTISING
Anne Baye Ericksen Pat Pape Brad Perkins Jeffrey Steele Lisa White
President, Harbor Communications Dan Ramella dramella@csdecisions.com (440) 250-1583
COLUMNISTS
Group Publisher Tom McIntyre tmcintyre@csdecisions.com (440) 250-1583
PRODUCTION
Publisher John Petersen jpetersen@csdecisions.com (440) 250-1583
Jim Callahan Steve Sandman
Production Manager Barbra Martin bmartin@csdecisions.com Webmaster Dave Miyares dmiyares@csdecisions.com
Vice President, Sales Tony Bolla tbolla@csdecisions.com (773) 267-1897
Creative Director Erin Canetta ecanetta@csdecisions.com
EDITORIAL ADVISORY BOARD
NATIONAL ADVISORY GROUP BOARD
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.
Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo.
Brad Call, President Colour Du Jour • Salt Lake City
Greg Ehrlich, Chief Operating Officer Beck Suppliers Inc. • Freemont, Ohio
Jack Kofdarali, President and CEO J&T Management • Corona, Calif.
Doug Galli, Vice President, General Manager Reid Stores Inc./Crosby's • Brockport, N.Y.
Greg Lorance, Dispensed Category Manager Cumberland Farms • Framingham, Mass.
Joe Hamza, Chief Operating Officer Nouria Energy Corp • Worcester, Mass.
Billy Milam, President RaceTrac Petroleum Inc. • Atlanta
Brent Mouton, President and CEO Hit-n-Run Food Stores • Lafayette, La.
Patrick J. Lewis, Managing Partner Oasis Stop 'N Go • Twin Falls, Idaho
Robert O’Connor, President and CEO O’Connor Petroleum Co. • Hales Corners, Wis.
Scott Zaremba, President and CEO Zarco 66 • Lawrence, Kan.
Vernon Young, President and CEO Young Oil Co. • Piedmont, Ala.
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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YEO BOARD OF DIRECTORS Jared Sturtevant, Board Chairman CST Brands, Director of Marketing
Alex Olympidis, Board Vice Chairman Family Express Corp., President of Operations Alli Bixler, Director of Special Projects The Kent Cos. Sharif Jamal, Corporate Training Manager Chestnut Petroleum Distributors Lindsay Lyden, Vice President, Development Truenorth Energy Dana Moloney, Strategic Workforce Partner 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., Suite 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
Developing Leaders at Your Company
T
JOHN LOFSTOCK Vice President/ Editor-in-Chief (201) 837-2177 jlofstock@ csdecisions.com Follow me on Twitter @CSDEditor
HE CONVENIENCE STORE INDUSTRY proves time and again that innovation and hard work make up the foundation that supports steady, meaningful growth.This growth isn’t only important from a sales standpoint, but is vital to a company’s long-term stability when analyzing the human element. After all, great leadership and great people drive successful businesses. But whether you are a family-owned business or a Fortune 500 company, eventually you will have to transition to new leadership, and it can be a complicated process. In the fast-paced convenience store industry, c-store chains must be able to produce young talent that will guide the business into an uncertain future, but they must first learn how to identify the next generation of great young leaders. Leadership isn’t about a title or a position. It’s a mentality— an approach to how you do your job. Leaders don’t just give orders. In fact, someone can lead without ever taking charge of another person. Leaders are people who take initiative. They’re the ones who don’t wait for someone else to step up. They hold others accountable and hold themselves to the same high standards. You can develop leaders at all levels of your company and teach them to groom future leaders. In this issue, Convenience Store Decisions and the Young Executives Organization (YEO) are proud to collaborate on the third annual 40 Under 40 to Watch, a select group of next-generation leaders that are already making their mark at leading convenience store chains. Industry growth today, as it was decades ago, is a complex, multi-tiered web that requires everyone within in an organization to focus beyond their immediate needs and anticipate the needs of tomorrow. This is especially true when it comes to identifying the next generation of industry leadership. For some organizations, this is a fairly simple process. The next-generation leaders will be family members. At non-family owned businesses, the road to leadership is a little more complex as young employees have to learn to navigate corporate policies and politics. Regardless of the set of challenges, young leaders must be given an opportunity to evolve. YEO was designed to help next-generation
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leaders have a group of their own that gives members an opportunity to interact with others in a similar position of maturing within the competitive convenience store industry. It also provides members a platform to express their ideas, leadership abilities and vision for the future of convenience retailing by encouraging capable executives. As chains look to develop a leadership pipeline, there are many important factors to consider: what your needs are, where you want the company to be in 10 years, how you want to go about recruiting, retaining and training future leaders—all of which are important questions. Here are three things you should also keep in mind: Clearly communicate expectations. If employees don’t clearly understand that leadership qualities are expected within the company, they’ll never feel empowered to step up and show the initiative your company needs to grow. Make it clear that this empowerment mentality is the rule, not the exception, in your organization. Team members who have shown a desire and ability to lead need to be nurtured through consistent communication. Actively train. Back expectations and empowerment with training, which takes raw talent and molds it, turning leadership potential into leadership skills. Through active training, leadership-minded team members will learn important traits required for leadership, such as authenticity—never asking a co-worker to do something you wouldn’t do. Be honest. Encouragement and training should produce results, and if they don’t, you have to communicate that to your team members. Difficult conversations should never come as a surprise. Your next generation of leaders—and really, everyone in the company— should know where they stand relative to the expectations set. Having that direct, honest communication is a major part of building a culture of accountability, which is essential to grooming leaders.
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FRONTEND
CSD’S QUICK BITES How to Grow Millennial Traffic Cleanliness Earns Via mobile: • 157—amount of times Millennials check their phones per day. Appealing to • 33% will accept At the pump: adventurers: ads on mobile • 40% of U.S. • 40% of Millennials device if there’s a Millennials say they want to consume good offer. are influenced by something unfamil• 61% of Millensigns at the gas iar at least once a nials use social pump. media at least once month. • 73% say the best • 50% say limited a month to make promotions have time products are decisions about discounted fuel with enticing. an in-store purchase. where to eat, drink. Source: Coca-Cola Infographic, “Beyond the Pump: Driving In-Store Traffic.”
Repeat Business
• 91% are more likely to have an overall negative opinion of an independent business if the public spaces, such as restrooms are not clean. • 88% of customers wonder about the safety of the food being served if a food establishment’s restrooms are not clean. • 95% of consumers say cleanliness can elevate a good business into a great business. • 92% are more likely to recommend a restaurant to friends if it is clean. • 74% are more willing to overlook slow service if the business is noticeably clean. • 57% say that a clean table that is not sticky or does not have evidence of the last guest is more important than the quality of the food. • 73% say a smelly restroom is worse than receiving the wrong food order. Source:“2017 Consumer Cleaning Insights Survey,” by P&G Professional, the away-from-home division of Procter & Gamble
2018 Ingredient Trends to Watch • Cauliflower at Center & Side – from curries to fritters. • Eggs Benedict Trending Across Dayparts – Benedict experimentation exists from morning to night. • Mac & Cheese Beyond the Box – be it fried bite-sized snacks or on a sandwich. • Meatballs are on a Roll - Meatballs are being reinvented thanks to the alternative burger trend—look for meatballs made from a variety of meats (pork, duck) or even plant proteins. • Olives Across the Board - olives pack a lot of flavor, versatility and allure. • Better with Brown Butter - It’s hard to go wrong with brown butter, a double-down on comfort food flavor and texture. • Figuring out Figs – from fine to casual dining figs appear more often. • (Earl Grey) Tea Time at Dessert –look for this flavor from ice creams to cocktails Source: Packaged Facts report,“New Spins on Standards 2017: Culinary Trend Tracking Series”
Holiday Shoppers Shop Early
n easo ng s sumers i p p n o the S. co 7 sh 201 more U. iddle of y a d ) Holi here the m kend • The e first w pping in ing wee eason h is t ed sho nksgiv in the s start son (Tha art late er). ing ned plan anksgiv -16% sea n will st Decemb s r e Th he 12 tha . early nsum over t of co opping pared to (i.e % 0 h 3 s m , co arly 4. iday • Ne start hol in 2017 r to 201 o d i to eken rs pr we he yea Source: NPD Group’s “2017 in t Holiday Purchase Intentions Survey”
Each generational demographic has reported buying more frozen food than last year, including:
g
e
n th o s le
Sa
in w s p U
43% of Millennials; 27% of Gen Xers; 19% of baby boomers; and 19% of Silents
The following factors are ranked as most important in making frozen purchasing decisions: 76% No antibiotics / 76% Hormone free / 73% All natural 71% Sustainable / 69% Low sodium Source: Mintel’s “Coffee U.S. 2017 and Coffee and Tea On-Premise U.S. 2017.”
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INDUSTRYNEWS Sheetz Family Earns Gold The Sheetz family, founders of Sheetz convenience store chain, which was recently awarded Convenience Store Decisions’ 2017 Convenience Store Chain of the Year, recently received the 2017 Pennsylvania Society Gold Medal for Distinguished Achievement on Saturday, Dec. 2, at the Society’s annual dinner in New York City. “The Sheetz family is a success story that reflects the best traditions of Pennsylvania and The Pennsylvania Society,” said Roger Richards, Pennsylvania Society president.“From its founding in rural Blair County in 1952, Sheetz has championed industryleading innovations, from touchscreen technology to the then-revolutionary idea that a convenience store could serve quality food. With more than 500 stores now, they have grown to become one of the largest and most successful convenience store networks in the nation.”
Fighter Pilot to Keynote M-PACT 2018 Maj. Dan “Noonan” Rooney, a U.S. Air Force F-16 fighter pilot, PGA golfer, best-selling author and founder of Folds of Honor—a non-profit organization that has raised over $100 million and awarded nearly 13,000 educational scholarships to family members of soldiers killed or disabled in combat—will deliver a powerful keynote presentation during the M-PACT 2018 Industry Luncheon, Wednesday March 14, 2018, from 11:30 a.m. to 1 p.m. In his presentation ‘A Patriot’s Calling: Leadership,Teamwork and Sacrifice,’ Major Rooney reveals how his experiences as a fighter pilot during three tours of combat in Iraq impressed upon him the importance of personal accountability and collaborative effort in ensuring the success of any mission.
Rogers Petroleum Acquires Arrow Rogers Petroleum, one of east Tennessee’s largest petroleum distributors, has purchased the assets of Arrow Gas & Oil Inc., of Oak Ridge, adding to its regional presence in the wholesale fuel distribution market. With the acquisition, Rogers Petroleum will distribute more than 155 million gallons of fuel per year to customers in the Southeast. Headquartered in Morristown, Tenn., Rogers serves commercial and other customers in eight states and has facilities across east Tennessee. 12 Convenience Store Decisions
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Parker’s Celebrates 50th C-Store Location Parker’s Convenience Stores in November opened its 50th c-store, located just off I-16 at 2601 Dean Forest Rd. in Savannah, Ga. The company’s 50th store features Parker’s Nitro Infused Cold Brew Coffee as well as a full-service Parker’s Kitchen serving breakfast, lunch and dinner daily. The store sells high-flow truck diesel and offers ample tractor trailer parking, and also sells highquality Parker’s gas, Bean to Cup Guaranteed Fresh Coffee, fountain drinks, freshly-brewed tea and lemonade, 28-degree beer, cell phone accessories and more.
FDA Issues Menu Labeling Guidance The U.S. Food and Drug Administration (FDA) on Tuesday, Nov. 7, issued guidance on the Obama administration’s menu labeling rule, noting it took into consideration concerns and questions from c-stores, supermarkets and pizza franchise owners, among others. Menu labeling was initially passed by Congress as part of the Affordable Care Act, and was delayed multiple times. The current compliance date is set for May 7, 2018.
Joe Kim Appointed CEO of Sunoco Joe Kim has been named CEO of Dallas-based Sunoco LP, effective Jan. 1, 2018. Kim has been serving as president and chief operating officer since June following the announcement that current CEO Bob Owens would retire from as of Dec. 31, 2017. Prior to his most recent appointment, Kim had been serving as executive vice president and chief development officer for Sunoco from October 2015 to June 2017, where he was responsible for all business development and merger and acquisition activities. During his service with Sunoco, Kim has provided a wealth of experience and expertise in strategic planning and execution of growth initiatives. Owens will continue to serve as a consultant to the partnership through 2019. CStoreDecisions ecisions .com
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FRONTEND News
Developer Welcomes Royal Farms to Sparrows Point The Baltimore c-store chain will occupy a portion of the 70-acre retail development, known as The Shoppes at Tradepoint Atlantic. By CSD Staff
B
ECAUSE OF THEIR SMALL footprints, convenience quite well here.” Royal Farms will occupy one of the site’s seven freestore developments are often thought of as small projects that rise up from local intersections. standing retail pads. It is expected to open in late-2018. However, some c-store operators this year have Headquartered in Baltimore since 1959, Royal Farms manbecome involved in large industrial and commercial ages a chain of stores stretching throughout more than development projects, generating headlines for those 180 locations in Maryland, Delaware, Virginia, New Jersey and Pennsylvania. companies. Baltimore-based convenience store chain Royal Farms not long ago signed a long-term lease, becoming the first BIG DEALS Speedway Properties and Nelnet held a groundtenant of Tradepoint Atlantic’s retail project, The Shoppes at Tradepoint Atlantic, a planned retail development breaking ceremony this past September for their $11 million redevelopment project in Nebraska at the existcomprising more than 70 acres. The Royal Farms component includes retail gas and ing Lumberworks parking garage located along Canopy Street between N and O streets. diesel fueling, a convenience store and car wash. The project, called Canopy Row, will involve three Tradepoint Atlantic is a 3,100-acre multimodal global logistics center encompassing the former Sparrow Point mixed-use buildings: two four-story buildings with first-floor Steel Mill site, formerly operated by Bethlehem Steel Corp. retail and three floors of apartments, and one five-story building with first-floor retail and four floors of office space. during its heyday. Designed to surround the city’s Lumberworks parking According to stakeholders, Royal Farms chose the 3.7acre location for its direct access to I-695, proximity to BWI garage on the north, west and south, part of the projAirport, easy access to more than 43,000 households and ect includes a small grocery store, being developed by its adjacency to the newly-constructed fulfillment centers. Whitehead Oil, which operates the U-Stop convenience chain. The development also includes 100,000 square feet of office space. BALTIMORE BRAND “We’re extremely proud, as well as excited, to take one of Baltimore’s favorite local brands and partner with a signifi- CALIFORNIA DESIGNS Jack Kofdarali, president of Corona, Calif.-based J&T cant part of Baltimore’s history as well as its future as part of our business growth,” said Jeff Bainbridge, director of real Management Group Inc., is experienced in developestate for Royal Farms in a prepared statement.“In addition ing real estate projects big and small. More than a year to the symbolic nature of our move to Sparrows Point, we’re ago, he had operated 28 Arco ampm stores in southern eager to benefit from convenient access to thousands of California, before selling off 24. Now, he’s looking at developing grander projects, customers on-site at Tradepoint Atlantic, as well as tens of many boasting c-store operations. thousands of customers in the immediate area.” During this year’s annual meeting of the National JLL, a professional services and investment management Advisory Group (NAG) in Nashville, Kofdarali outlined firm, is serving as the exclusive broker for Tradepoint Atlantic. For more than a century, steel was produced at the a few multi-million dollar deals that he has in the pipeSparrows Point site, mostly as a Bethlehem Steel plant. line. For example, the former chairman of the National After a series of ownership changes, the mill closed for Association of Convenience Stores, is tackling a $9.5 million project in the city of Moreno Valley, Calif. When done, good in 2012 when then owner RG Steel went bankrupt. “The addition of Royal Farms marries a first-rate opera- the six-acre tract will include a 3,800-square-foot c-store, tor with a great deal of offerings to the burgeoning tenant a 37,000-square-foot industrial building and two standdevelopment at Tradepoint Atlantic,” said Greg Ferrante, alone, quick-service restaurants. Another proposed project is earmarked in the California senior vice president of JLL. “The surrounding residential population provides further convenience to the heavily- city of Murrieta, including a similar 3,800-square-foot c-store trafficked I-695 corridor, and we expect Royal Farms to do as well as eight other retail buildings. CStoreDecisions ecisions .com
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Convenience Store Solutions
Are Bad Breaks Bad Luck or Bad Choices? Sometimes the circumstances that are beyond our control can be tamed with due diligence. By Jim Callahan
W
HO AMONG US HAS not been bitten by the failure
bug? All of us, including me. The question that sometimes lurks in our minds is usually this: Was I a victim of circumstance or did I play an active role in this bad luck incident? I decided a personal theme for this month’s column was in order since we are about 30 days from ushering in a new year. The beginning of a new year always offers a ray of renewed hope and visions of greater success. It also provides us opportunities to assess the circumstances that seem beyond our control and investigate some measures that can swing the good-luck pendulum back in our favor. Because most in the business world can attest, the difference between success and failure isn’t being on the right side of Lady Luck, but what position you chose to be in when she came to call.
BORDER WAR More than 30 years ago, shortly after acquiring some small Exxon and BP distributorships in a part of western Georgia very close to the Alabama line I had learned my first lesson in choices. About that time, Alabama lawmakers had lowered state fuel taxes so they were much less than Georgia. Competition at the border then got fiercer, very quickly. That hadn’t always been the case. Previously, Georgia claimed the cheaper fuel because of consumer-friendly taxes on the books. Then there was a steady flow of Alabama residents who flocked to neighboring Georgia in search of that elusive “cheapest gallon of gas.” With the change in Alabama, we were watching the rear ends of vehicles with Georgia license plates heading west as they sought out the border towns to take advantage of lower gas prices. As if that wasn’t bad enough, it was around that same time Georgia lawmakers rescinded the prohibition on “below cost selling,” which generally means that no retailer may sell gasoline at a price less than the net cost to the retailer. My small company was suddenly outgunned by many larger companies eager and able to lose a bit of money in return for building customer volume. While I wasn’t personally aware of the pending changes 14 Convenience Store Decisions
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at that critical juncture, I was fully aware going in that business is all about risk and reward. However, just because you take the risk doesn’t mean you are going to reap the reward. After 44 years of knowing pretty much nothing but success, albeit on a small scale, I’ve learned a lesson or two along my journey. One lesson I believe and have tried to follow during my career is not to allow complacency to stop you from being proactive when it comes to making smart business decisions. Going back to those long gone days near the GeorgiaAlabama state line, the local laws and shifting tax burden seemed totally out of my control. But when you get down to the nuts and bolts, I hadn’t studied the political landscape, which can quickly put you behind the power curve—especially when you’re a convenience store retailer. If I had done my homework, I would have known that there was a bill pending in the Georgia legislature to rescind the “below cost” prohibition on fuel. In the same vein, I’m sure there were public hearings scheduled to discuss a bill in the Alabama legislature to reduce its state tax on fuel. If not, it was still something I should have been aware of. I encourage every retailer new to a market that when you are expanding, take a broader view of what you are encountering with your investment. Do a complete assessment—not only of the property, utilities, taxes, etc., but of the surrounding political landscape. There are numerous c-store businesses in the industry that can attest to the fact local laws can appear on the books and if you aren’t paying attention, can squeeze your profit margin to death. A good example is the increasing volume of tobacco ordinances coming out of local jurisdictions. Bad luck sometimes appears out of the blue, but often the circumstances can be handled in one way or another depending on the choices you make. Here’s to a happy and prosperous new year. Jim Callahan has more than 40 years of experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on cstoredecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan1160@gmail.com. CStoreDecisions ecisions .com
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NAG Brings Attendees to Nashville Convenience store retailers gather in Nashville to explore topical issues in the industry while learning ways to make their business better. Bill Kent, president and CEO, of The Kent Cos. in Midland, Texas, accepts the NAG Lifetime Award for Convenience Retailing with wife Julie Kent and daughter Alli Brinker in Nashville.
By CSD Staff
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HE 2017 NATIONAL ADVISORY Group (NAG) Conference kicked off Sept. 10 in Nashville, Tenn. at the Hilton Nashville Downtown, with a welcome reception hosted by the Young Executives Organization (YEO), dinner, live country music entertainment and networking time in the hospitality suite. John Lofstock, executive director of NAG and editorin-chief of CSD, welcomed attendees, noting that the 2017 NAG Conference included 16 speakers from leading retail chains. More than 60 chains were represented along with 21 first-time members. “NAG has been around for more than 30 years because of the retailers we serve,” said Lofstock. The conference ran through Sept. 13.
BURNING ISSUES The three-day event was jam-packed with educational sessions on a number of burning issues impacting the convenience store industry today, including the following: • The Impact of Family Business on Convenience Retailing. Lofstock moderated this important opening educational session, which featured speakers Joe Sheetz, president and CEO, Sheetz Inc.; Allison Moran, former CEO, board member and family shareholder, RaceTrac Petroleum; and Jeff Miller, President and CEO, Miller Petroleum. The session included personal experiences and commitment to employees, customers and the tradition of family-owned business. • Navigating Staffing: Attracting, Motivating and Retaining Millennials. Cherrie Clay Clark, professor of the practice of management at the Owen Graduate School of Management, Vanderbilt University, explained how the world Millennials came of age in has influenced them. 16 Convenience Store Decisions
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• Competing On Fuel: Understanding Alternative Fuels, RIN’s and Declining Gallon Sales. Moderator Suzanne Murray, partner, Haynes and Boone, lead counsel for the Small Retailers Coalition; and speakers Stanley Roberts, president and CEO, Capital Oil; Wendy Chronister, president and CEO, Chronister Oil Co.; and John Eichberger, executive director, the Fuels Institute discussed how the Renewable Fuel Standard is changing fuel economics, as well as the future of alternative power sources. • The Future of Fresh Foods in Retail. As customers continue to seek fresh options in convenient formats, c-store retailers are rising to the challenge. Matt Lally, manager, analytics and insights, Nielsen Perishables Group, started off the session with a look at the continued evolution of prepared deli. William Baine, CEO of Git ‘N Go Markets, gave an overview of his foodservice program. Mario Spina, CEO, The Pride Stores Inc., talked about the chain’s three restaurant concepts and its commissary. • Developing Real Estate: How to Find and Invest in Great Locations. The retail industry continues to evolve and retailers must change or be left behind. Meanwhile, the cost of real estate is rising too. The panel including Charles Bell, senior vice president of facilities at Tri Star Energy LLC; Robert Buhler, president and CEO of Open Pantry Food Marts of Wisconsin Inc.; and Jack Kofdarali, president and CEO of J&T Management Inc. and former chairman of the National Association of Convenience Stores (NACS), shared best practices from their own experiences in managing the real estate segment. Mark Radosevich, president of PetroActive Real Estate Services, who moderated the session, said big and large chains are pulling the trigger on new locations. “It’s exciting to see so many new-to-market sites going up,” he said. CStoreDecisions ecisions .com
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Bill Kent delivers his acceptance speech as he receives the NAG Lifetime Award for Convenience Retailing. Bill Weigel, who was honored by NAG in 2017, with Bill and Julie Kent.
• Foodservice: Delivering the Goods. From Grubhub to key market trends. Two of the most important today are Instacart to Amazon, food delivery is gaining momentum. “Simple & Pure” and “Transparency 360.” Dr. Nancy Caldarola, To remain competitive, convenience store operators need to Ph.D., R.D., general manager of The Food Training Group, keep pace with this new competition. Speaker Bonnie Riggs, shared a number of ideas to help c-stores compete on food. “No matter what, you have to look at your demographdirector, industry analyst, foodservice, The NPD Group, and moderator Ed Burcher, foodservice marketing and strategy, ics and what they want,” Caldarola said. Regardless of what FriendShip Stores, tackled the issue of who is ordering deliv- area a c-store chooses to pursue, education of the customer is crucial in attracting people who will be loyal to your brand. ery and how c-stores can compete in the space. Mark your calendars for the 2018 NAG Conference, In a YEO Breakout session, “What Does Omnichannel Mean to Convenience Retail?” Pat Lewis, partner, Oasis which will be held Sept. 9-12 at Ponte Vedra Inn and Resort Stop ‘N Go, discussed omnichannel strategies that are in Ponte Vedra Beach, Fla. becoming more prevalent in U.S. retailing. NASHVILLE NETWORKING Retailers also had the opportunity to participate in ‘information exchanges,’ which are the heart and soul of what makes NAG so unique. Attendees formed into small groups of non-competing chains to discuss relevant business issues. Other opportunities to network with industry peers involved a golf outing, time to explore Nashville, receptions, time in the hospitality suite and more. The National Advisory Group (NAG) recognized Bill Kent, president and CEO of The Kent Cos., in Midland, Texas, with the NAG Lifetime Award for Convenience Retailing. Kent is the third retailer to receive the award, which was presented during a group dinner outing at Margaritaville, in Nashville, Tenn., where attendees also had the chance to enjoy live music. NAG attendees enjoy a lunch break at the Hilton Nashville In a closing Operations Boot Camp session led by NAG’s Downtown. More than 60 convenience store chains were Lofstock, foodservice consultant Keith Solsvig, outlined eight represented along with 21 first-time members. 18 Convenience Store Decisions
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2018
SAVE THE DATE
Line up for NAG 2018 at the beautiful Ponte Vedra Inn & Club September 9th thru 12th II Ponte Vedra Beach, FL Committed to building relationships and profits! The National Advisory Group (NAG) is an association of small to mid-size and familyowned chains and the executives that run them. This group convenes 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 speakers, retail information exchanges, opportunities to address burning issues within your business, a chance to get to know your peers in similar size operations and much more!
2018_NAG_STD_HouseAd.indd 1
For more information: RETAILERS should contact John Lofstock at 201.837.2177 jlofstock@csdecisions.com SUPPLIERS should contact John Petersen at 440.250.1583 info@nagconvenience.com
8/15/17 4:17 PM
John Lofstock, of NAG; Allison Moran, of RaceTrac; Jeff Miller, of Miller Oil, and Joe Sheetz, of Sheetz Inc.
Jack Kofdarali, president and CEO, of J&T Management.
Professor Cherrie Clay Clark, of Vanderbilt University, led the session on Navigating Staffing: Attracting, Motivating and Retaining Millennials.
The NAG session on Developing Real Estate: How to Find and Invest in Great Locations featured Charlton Bell, of Tri Star Energy; Robert Buhler, of Open Pantry Food Marts; and Jack Kofdarali, of J&T Management.
NAG’s Information Exchanges are the heart and soul of what makes NAG so unique. Attendees are assembled into small groups of non-competing chains to discuss relevant business issues. These sessions, which are for retailers only, featured discussions on foodservice, technology, operations, human resources and fuel.
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In the NAG session on emerging fuel trends, attendees heard from Stanley Roberts (left), president & CEO, Capital Oil; Wendy Chronister, president & CEO, Chronister Oil, and John Eichberger, executive director, of The Fuels Institute. CStoreDecisions ecisions .com
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The 2017 NAG Conference featured burning issues on foodservice, technology, real estate, human resources and the impact family-owned businesses have on convenience retailing. More than 60 chains helped make this the largest NAG conference to date.
Matt Lally (left), of the Nielsen Perishables Group, leads the session on The Future of Fresh Foods in Retail with Mario Spina, CEO of the PRIDE Stores; and William Baine, CEO, of Git’N Go Market.
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Leo and Joanne Vercollone, of VERC Enterprises; with NAG Executive Director John Lofstock; and Mark Radosevich, of PetroActive Real Estate Services.
After a long day of educational sessions and networking, NAG members enjoyed an evening in the Hospitality Suite.
NAG Chairman Peter Tamburro, and Stacey Davis, of Clifford Fuel; with Christina Fisher and Mindy Marshall, of Marshall Brothers Inc.
NAG attendees were treated to an evening with local Nashville singer-songwriters.
In addtion to new product samples, the NAG Hospitality Suite featured games and live music.
The NAG Golf Outing at Hillwood Country Club Nashville, featured more than 50 golfers from 40 convenience store and supplier companies. Prizes were awarded for best round, closest to the pin and longest drive. Mark your calendars for the 2018 NAG Conference, which will be held Sept. 9-12 at Ponte Vedra Inn and Resort in Ponte Vedra Beach, Fla.
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TO THE 2017 NAG SPONSORS
www.nagconvenience.com 2017 Thank you ad.indd 1
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COVER STORY
2017 R
EGULARLY WHEN PUNDITS EVALUATE athletes they often compile
This year’s 40 Under 40 class represents a wide range of individuals who boast innovative thinking, business smarts, community engagement and professionalism. It’s also what keeps the c-store industry sprinting forward. A CSD Staff Report
career statistics, crunching the numbers to determine the best quarterback, most talented goalie, elite point guard or top outfielder. Numbers come into play in everyday business as well when evaluating staff. Often the best employees, managers, directors or executives who demonstrate intangibles such as creativity, leadership, originality and loyalty are harder to quantify. The individuals in the following pages represent big corporations and small retail chains—but all demonstrate the type of qualities that most employers seek. Each member of this year’s 40 Under 40 class plays an important role in determining the future course of his or her respective company. Included are category managers, financial officers, marketing directors, vice presidents and CEOs. If you look closely, you’ll find that all of the individuals in the 2017 class likely share many of the same qualities—qualities that go above and beyond the regular stat line of a good employee or a responsible manager. ON THE BALL There are few industries that better connect to the people within a local community than c-stores. They are there for the customers that come in
every day for a cup of joe or a breakfast sandwich or to fill up their gas tanks. And because many on this year ’s list belong to family-owned companies, these young professionals are that much more in tune to ensuring their customers are receiving the highest quality service, each and every day. Those who work in this business are members of an evolving and diverse industry, which is not surprising given the diversity of U.S. consumers who frequent today's c-stores. As the face of the channel’s customer base becomes even more diverse, companies willing to embrace social media, technology and even meal kits are becoming more successful. The challenges in 2018 will be numerous: local laws that stifle business growth, rising healthcare costs, a booming ecommerce movement and the ongoing search for capable workers loom large. However, the young professionals that make up this year’s group seem up to facing any obstacles. CSD and the National Advisory Group's (NAG) Young Executives Organization (YEO) tallied the votes, crunched the numbers and came up with 2017’s 40 Under 40 class. For those interested in nominating your future leaders for the class of 2018 or to join YEO, contact CSD Editor and NAG Executive Director John Lofstock at jlofstock@csdecisions.com.
where we are headed in the future,” she said. “Our mission is to be a guest-driven, quality power retailer, and the only Human Resources Manager way to achieve that goal is to first make sure we are taking care of our own people and empowering our team members with excellent training and future career goals.” Company: The Kent Cos. Alderson began her tenure at the Texas c-store chain in Headquarters: Midland, Texas the corporate communications and brand development Number of Stores: 44 department, where she focused on company events, volYears with the Company: 2 unteer/community outreach and advertising promotions. A graduate of Arizona State University, Alderson met owner Bill Kent, another Arizona State graduate. Afterward, LAIR ALDERSON TRANSITIONED INTO a new role as human resources manager for The Kent Cos., earlier she decided the retailer was the place for her, said Alderson, this year, overseeing the company’s in-house recruit- who also played on the Sun Devil women’s soccer team. “I love the opportunity of taking on a good challenge ing and benefits departments. and look forward to growing with the company,” she said. So far, she has left her mark. “I really enjoy being involved in the recruiting process. “Looking ahead at 2018, The Kent Cos. will continue to grow It’s crucial to our company, both who we are today and and expand.”
Blair Alderson, 25
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COVER STORY Jared Bartle, 34
Sonya Amill, 28 Foodservice Specialist
Director of Operations
Company: FriendShip Food Stores Headquarters: Fremont, Ohio Number of Stores: 24 Years with the Company: 1
Company: Blueox Corp. Headquarters: Oxford N.Y. Number of Stores: 11 Years with the Company: 20
S
INCE JOINING FRIENDSHIP FOOD Stores, Sonya Amill has made an impact on the chain’s foodservice program in a short time. She brought years of hands-on experience in the foodservice industry.
Most recently, Amill worked in the quick-service restaurant industry, serving as a general manager. She became accomplished in staff development and training and leadership. These skills will come in handy, with the task of elevating FriendShip Kitchen’s foodservice program. “The expectations of our guests are increasing, and serving high-quality products at our stores each and every day is our goal,” said Amill. “Building the business does not happen overnight. We want to grow our food offer as a destination for breakfast, lunch and dinner.” Improving the product mix through new product development, leading selection and rollouts as well as the implementation of new items at 24 locations keeps Amill busy at FriendShip Food Stores, which is the retail division of Fremont, Ohio-based Beck Suppliers. Amill’s commitment to growth extends beyond the workplace. In addition to the hectic work schedule, Amill returned to college to earn a degree in applied sciences. Balancing her life and work is still clear cut. “I know that everything cannot be done at once,” she said. “Prioritizing and understanding the needs of our staff in introducing change is one of the keys to success.”
Jaquilyn Bohn, 30 Construction and Planning Coordinator Company: Cumberland Farms Inc. Headquarters: Westboro, Mass. Number of Stores: 558 Years with the Company: 5
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ITH NEW LEADERSHIP, NEW vision, new store designs, new products and even a new logo, Cumberland Farms, over the past decade, has evolved. Since 1939, Cumberland Farms is still family owned and operated, continuing to reflect the values it was built upon. Building on its legacy, the third-generation retailer based in Westboro, Mass., is adding new convenience stores and updating the design on its existing units, said Jaquilyn Bohn, CStoreDecisions ecisions .com
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ARED BARTLE HAS BEEN around the convenience store
industry since the young age of 14. “Much of my experience comes from working the front lines of the business. Aside from c-stores, we operate a home heating fuel distribution and HVAC business,” said Bartle, referring to the diversified Blueox Corp. in New York State. “This is where I spent most of time, but in the last few years, I’ve started to get much more involved in the store side of the business. I’ve been very fortunate to be surrounded by people who have helped to teach, nurture, guide and challenge me to be a better and more effective leader.” Like any effective leader, Bartle is looking to the future. In 2018, he and company executives plan on reinvesting in store locations. “We would like to do a lot of remodeling/rebuilding of some of our older stores, with the intention of then being able to offer new products/services that will hopefully increase foot traffic, revenue, margins, etc.” Management will also be focusing on rebranding all of the company’s locations over the next few months, including exteriors, interiors and the foodservice program. “For many years we flew under the Nice N Easy franchise flag,” said Bartle. “However, after the franchise was sold, following the passing of Nice N Easy founder John MacDougall, we decided to launch our own brand.”
the chain's construction and planning coordinator. "Over the next year our goal is to raze and rebuild 16 stores, add 17 new-to-industry sites and build seven new offsets across New England, New York and Florida," Bohn said. "This fall we started rolling out our newest prototype, which we are calling the AIM 3.0 stores." With the new store design is a renewed focus on foodservice and providing outstanding service, in which Bohn has played an integral role. "As seen in our new AIM 3.0 stores, we are focusing on a more food and customer service based environment to grow our footprint in the c-store industry," Bohn said. "We now have self-service terminals, an expansive menu and added a second floor for storage, all while maintaining the classic feel of the neighborhood Cumby’s. We have appealed to the needs of our customers and we will continue to evolve to keep up with the times." December 2017
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COVER STORY Jessica Boyd, 27
Courtney Buckley, 32
General Manager, Express Petro Transportation Company: The Kent Cos. Headquarters: Midland, Texas Number of Stores: 44 Years with the Company: 1
J
ESSICA BOYD MOVED FROM Alabama to Midland,
Texas to help The Kent Cos. start a fuel transportation company called Express Petro Transportation in June 2017. She met the owner of Kent Cos., Bill Kent, in Mobile, Ala., where he proposed a job opportunity. At the time, Boyd was involved in a similar project in Alabama where she was the office manager of Hunter Livery and in charge of managing the profitability and operations for the company. “The challenge seemed appealing to me,” she said of the chance to help build a fuel transportation business. In her current role, Boyd is directly responsible for the start up of what will be known as a common carrier dedicated to The Kent Cos. Boyd also aims to combat the diminishing stereotype that Millennials aren’t ambitious, by scoring one professional success at a time in her own career. In fact, for young professionals looking to succeed, Boyd said one of the biggest challenges in corporate America still is dealing with the perception that Millennials aren’t totally committed to the organization. “I have found the biggest challenge as a young executive is the constant expectation of failure or lack of willingness to make the same sacrifices as our elders,” she said. Midland, Texas-based Kent owns and operates 44 convenience stores and quick lubes.
Manager of Training and Development Company: VERC Enterprises Headquarters: Duxbury, Mass. Number of Stores: 28 Years with the Company: 6
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FAMILY-OWNED BUSINESS WITH LOCATIONS in Massachusetts and southern New Hampshire, VERC Enterprises continues to grow its business while upholding a traditional commitment to its customers. The convenience chain is implementing a new employee training program in 2018, headed by Courtney Buckley. “We’ll streamline training so people feel confident in their jobs sooner and push themselves to do more,” said Buckley, manager of training and development. “Things can change overnight. We need up-to-date processes in place to ensure everyone is on the same page. It's my job to make sure everyone understands why changes are made and how to implement them correctly at store level.” At VERC, Buckley has taken on many roles successfully, including category manager and district manager. Along the way, she has been involved in various issues that have impacted the course of the future of the company. In the coming year, there will be increased focus on technological upgrades. Buckley will play an integrate role. “We’re focusing on analyzing our data in order to have a clear picture on what items sell best, which will help us keep up in a quickly changing market,” Buckley said. “Any retail channel that uses technology or delivery service to give customers speedier service poses a challenge. VERC must keep up with marketplace changes, but continue to provide fast, friendly service. Some people still appreciate face-to-face interaction.”
Jimmy Clifford, 29
his grandfather Jack Clifford. His father, Jim Clifford, joined the company in 1980. Today, in his role as fuel operations manager, Jimmy Clifford’s responsibilities include the pricing of gas and fuel Company: Clifford Fuel Inc. at retail locations, environmental compliance and helping Headquarters: Marcy, N.Y. manage Clifford Fuel’s dealer business. Number of Stores: 19 Throughout his time at the company, Clifford has been Years with the Company: 7 involved in marketing campaigns and advertising as well. IMMY CLIFFORD BEGAN WORKING with his family’s He was also involved in the process of the chain’s c-store business, Clifford Fuel, back in college during his sum- branding change from Nice N Easy to Cliff’s Local Market, which took place earlier this year. mer vacations. The biggest issue facing the region has been fighting fraud “It gave me a strong interest and appreciation for our family business as well as the c-store business in general,” on transactions such as skimming at the pump. It’s the same issue that Clifford Fuel is working on to ensure its customers said Clifford. After he graduated from Union College, Clifford joined are protected. “Even with the EMV upgrades we need to stay the company full-time, part of a third generation to work in diligent in taking the necessary steps to make sure our locathe family business. Clifford Fuel was founded in 1961 by tions are a secure place to do business,” Clifford said.
Fuel Operations Manager
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COVER STORY customers better and meet their convenience needs.” Engagement is a key component in a market that is Category Manager seeing dollar stores and drug chains move in on the familyowned business with buying power to offer lower prices on Company: Clifford Fuel Inc. items key to Clifford’s margin. Headquarters: Marcy, N.Y. “Dollar General has been growing rapidly in our marketNumber of Stores: 19 place,” Clifford said. “Quick-service restaurants are a significant threat to our foodservice and coffee business as well.” Years with the Company: 6 Between chain stores, non-convenience brands and regS CATEGORY MANAGER, Mike Clifford knows the ulations like minimum wage increases, business can be ways of doing business are changing. As brand cham- challenging. But the category manager is working to help pion, he also understands the need to connect with advance Clifford Fuel’s operations to stay ahead of the competition while still engaging its clientele. customers. “The most challenging issue is staying in front of the “Increasing awareness and building the reputation of our convenience store brand, which debuted this past May, is a changes that the retail and fuel industry will undergo in the top priority,” said Clifford. “Another priority is growing the future,” said Clifford. “The changes could be drastic, and social media and technology component to engage with our we’ll need to adjust the current model to stay profitable.”
Mike Clifford, 28
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Britt Davidson, 36
Alex Davidovich, 28 Executive Vice President
Manager of Loss Prevention
Company: Town Star Holdings Headquarters: Port Saint Lucie, Fla. Number of Stores: 18 Years with the Company: 3
Company: Kum & Go L.C. Headquarters: West Des Moines, Iowa Number of Stores: 420 Years with the Company: 3
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S THE EXECUTIVE VICE president of Port Saint Lucie, Fla.-based Town Star Holdings, Alex Davidovich oversees the daily operations of the company’s 18 convenience stores. A second-generation leader in the industry, he credits his early success to hands-on experience gained in his upbringing. “Having a strong operational base means that I can lead effectively from the front.” said Davidovich. “I love being able to help a new manager order cigarettes or jump behind a busy Subway counter during a lunch rush. I can set the standard and motivate at the same time. You can’t do that from an office.” Davidovich approached the development of Town Star’s growing restaurant program, which comprises 22 restaurant locations, sampling food products and testing equipment from manufacturers nationwide. “I had to experience the program from the perspective of our employees to know that it was doable. I wanted to watch customer reactions to know whether we were heading in the right direction.” He said his father influenced his hands-on approach. “My greatest influence has always been my father, Avry. Thirty years ago, he started at the bottom of this industry and worked his way to the top. He did it by building relationships with customers and trust with his employees. I want to achieve success the same way.” 28 Convenience Store Decisions
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S THE MANAGER OF loss prevention at Kum & Go, Britt Davidson leads the analysis, detection and prevention of control issues. This includes an array of responsibilities from monitoring cash, inventory and fuel loss to leading theft and fraud functions (detection, investigation, analysis) to loss prevention training, just to name a few. Previously, Davidson was the corporate loss prevention leader for Scheels All Sports. Before that, he began his foray into loss prevention as inventory control manager at Menards. Davidson began working at Kum & Go in 2013 after a mutual friend introduced him to then manager of loss prevention, Christie Sullivan, and they discussed opportunities for him to further develop the strategy and foundation of loss prevention at Kum & Go based on his experiences in his previous role. One of the main loss prevention objectives at Kum & Go is to provide a safe and secure working and shopping environment, he said. “In recent years, violent crimes, and specifically robberies, have seen a dramatic increase,” said Davidson. “There are many theories as to why this increase is happening, but the fact remains, our job has gotten more difficult because of the sporadic nature of these crimes and it’s increasingly important that we be proactive in reducing and deterring violent crimes/robberies.” CStoreDecisions ecisions .com
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COVER STORY Lisa Dell’ Alba, 39
Jonathan Durling, 33
President and CEO
District Leader
Company: Square One Markets Inc. Headquarters: Bethlehem, Pa. Number of Stores: 9 Years with the Company: 13
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IKE MANY IN THE convenience store industry, Lisa Dell’Alba is looking to stir up greater profits by offering foodservice options that cater to consumers’ evolving tastes for healthier choices. “We hope to be able to offer more fresh and healthy items. We are developing new food items and trying to navigate what is still a challenging fresh food supply chain,” said Dell’Alba, president and CEO of Square One Markets Inc. The company’s better-for-you initiative doesn’t end there. Dell’Alba works to inspire her staff to embrace a healthier lifestyle, too. “It’s something important to me, and I want to help others in our Square One Markets family to achieve their goals. I am personally challenging a few of our team members to pursue their goals to become fitter with exercise,” she said. “A few of us are taking on a workout challenge in a few weeks.” Dell’Alba also is excited about deepening relationships with vendors to provide products that will convince individuals to stop and shop at her stores in eastern Pennsylvania. “In the past year, we have had the opportunity to work closely with one of our suppliers,” said Dell’Alba. “It is truly an honor to know that the opinion of the small retailer matters so much in an industry of some very large players.”
Company: QuickChek Corp. Headquarters: Whitehouse Station, N.J. Number of Stores: 150 Years with the Company: 17
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HEN JONATHAN DURLING’S GREAT-GREAT-GRANDFATHER started a dairy business in central New Jersey
known as Durling Farms in 1888, he likely never imagined a convenience store that featured food, soup and cold cuts available through touchscreen kiosks, or more than a dozen flavors of coffee. But 130 years later, the Whitehouse Station-based convenience market chain is taking its strategy to provide fresh products and food-to-go to a new level with its 150 store, marking a new prototype design. The new QuickChek location offers free Wi-Fi and indoor seating counters with phone and laptop charging stations in addition to a menu of fresh items with healthier and clean ingredients. Also, the new design offers wider aisles with food stations that include extensive displays of freshly-made market items and baked goods made in the store. In 17 years at QuickChek, Jonathan Durling has experienced this growth more than anyone. As the son of Dean Durling, company president and CEO, he understands the family aspect of the business. And while the chain varies from small family stores to larger convenience stores with more than a dozen fueling locations and pharmacies, it continues its focus in bringing more to its customers.
Nicole Earp, 33
petition out there for the qualified employees,” said Earp. “We are competing with a lot of manufacturing jobs that have very good benefit packages and higher wages. In our low-margin industry we are having a hard time getting the Company: Good Oil Co. (Good To Go) right people, especially customer-focused employees.” Headquarters: Winamac, Ind. Aside from revamping its foodservice program, Good Number of Stores: 18 To Go is preparing to launch a digital marketing initiative Years with the Company: 11 to move its promotions and in-store advertisements away from standard signage to digital forms to attract customers’ ON GOOD’S FAMILY HAS run Good Oil Co. since the attention. Like most c-stores, the retailer is looking to stay business started in 1941. To grow the organization, ahead of impactful trends. “I believe the online retail stores such as Amazon and the family has surrounded itself with dependable Walmart are our biggest threat,” she said. “We live in a pretty professionals like Nicole Earp, chief financial officer. Earp has never taken her professional success for rural marketplace and as those sales pick up and (competgranted, especially in an industry where competition is itors) are delivering groceries and home supplies, we are tight—including the challenge of identifying able workers. going to see less frequency of people needing to drive the “With the low unemployment rates there is a lot of com- distance to town to pick up their household needs.”
Chief Financial Officer
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COVER STORY Caroline Filchak, 29
Fouad El-Nemr, 26
Director of Retail Operations
Executive Vice President
Company: Nouria Energy Corp. Headquarters: Worcester, Mass. Number of Stores: 116, 49 car washes Years with the Company: 2
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OUAD EL-NEMR HAS BEEN involved with his family’s convenience store business since he was 14 years old. Over that time, he was involved in all facets—from stocking the shelves to cleaning the pumps to running the cash register. “When I got older I moved into the finance and accounting department, and once I was in college I started attending quarterly board meetings to understand every aspect of the business,” he said. Now back as executive vice president of Nouria Corp., El-Nemr, who holds an MBA in concentrated finance from Suffolk University, works with the chief operating officer and chief financial officer on analyzing data on special projects by developing financial and forecasting models, and handles budgeting and banking for the growing company, which earlier this year completed the acquisition of the F.L. Roberts & Co. Inc. “When our father eventually retires, my brother, who is now completing his master’s degree, and I will continue the family business for generations to come,” said El-Nemr. Into 2018 and beyond, he said the company will focus on its private label product line, My Nouria, as well as growing both its new Nouriabranded store concept and its Golden Nozzle car wash operations within its New England footprint.
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Company: Clipper Petroleum Inc. Headquarters: Flowery Branch, Ga. Number of Stores: 28 Years with the Company: 7
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S DIRECTOR OF RETAIL operations for Clipper Petroleum, boasting 28 convenience stores in Georgia and South Carolina under the Clipper, On the Run and Circle M brands, Caroline Filchak is closely linked to the company’s pipeline. Her expertise will be vital next year as Clipper tackles some significant projects. “We have a new store build on the books for mid-2018, which will feature our new store prototype, branding elements and offerings,” said Filchak. “Last year, we became a Bojangles’ franchisee and opened our first Bojangles’ location. We have plans to open another Bojangles’ in mid-2018, and we are looking forward to growing that part of our business.” Clipper is in the final stages of the planning and development of a new foodservice concept that it will begin testing at one of its stores in early 2018. To complement those program changes, Clipper is remodeling some of its store locations. Lastly, the company is boosting workplace benefits for its staff. “We recently implemented a chain-wide wage increase and raised our starting wage. We are building upon that to roll out other programs that will show our team members how much we appreciate their contribution and recognize their value,” she said. “Our goal is to become the ultimate employer of choice in the communities where we operate.”
Robert Griffith, 32 President Company: Golden Pantry Food Stores Inc. Headquarters: Watkinsville, Ga. Number of Stores: 38 Years with the Company: 4
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HE GOLDEN PANTRY FOOD Stores convenience chain, famous for hot, homemade biscuits and hand-breaded fried chicken, has been serving the Athens, Ga., area for 52 years. Of course, such savory offerings don’t come about without a lot of hard work. Robert Griffith, president of Golden Pantry, is tackling the challenges that many c-store retailers face, such as staying up to date on technology and finding and retaining good talent to manage the stores and serve customers. “We have an unemployment rate in the low fours, which is great,” said Griffith, referring to this part of Georgia. “However it does present some challenges in regard to staffing.” Next year, the company will be even busier. “We will be transitioning to a new grocery wholesaler, releasing a new revision to our existing Golden Pantry brand, refreshing our website and debuting a customer-facing mobile app,” Griffith said. “We have a full plate.” Simultaneously, the chain will continue its focus on employees, customers and the communities where it does business. “We wouldn’t be where we are or who we are without them,” said Griffith. “We strive to make all of our decisions with our people and communities in mind.” CStoreDecisions ecisions .com
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COVER STORY John Hillam, 38 Vice President, Power Move Division Company: Maverik Inc. Headquarters: Salt Lake City Number of Stores: 304 Years with the Company: 7
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AVERIK STORES ARE FAMOUS for an outdoor image
and the slogan, “Adventure’s First Stop.” The chain is spread across 10 Western states and is the largest independent fuel marketer in the Intermountain West. In addition, Maverik is known for a variety of proprietary products and the Adventure Club Card loyalty program. John Hillam, vice president of the Power Move division, which includes fuel supply, logistics and marketing, plays
an important role in helping drive the convenience chain forward. In his opinion, the retailer is “the coolest retail convenience experience on the planet by balancing efforts to be a great place to work, a great operator for our customers and a great growth company.” That growth metric will expand more in 2018. “By the end of next year, Maverik will accept commercial fleet cards at each of our 300-plus stores through a gamechanging proprietary point-of-sale system,” Hillam said. “And in the kitchen, we will be cooking and brewing up some hot, new Bonfire Grill items with compelling value for our customers on the go.” The consumer’s demand for fresh food and expanded fuel pump offerings is evolving, and “Maverik provides the coolest retail convenience experience on the planet,” he added. “There isn’t any competitor, in or out of our industry, attacking our position in this space.”
Whitney Haslam Johnson, 38
Sharif Jamal, 36
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Operations Analyst
Vice President of Brand and Guest Experience
Company: Chestnut Petroleum Distributors Inc. Headquarters: New Paltz, N.Y. Number of Stores: 300 Years with the Company: 8
Company: Pilot Flying J Headquarters: Knoxville, Tenn. Number of Stores: 750 Years with the Company: 14
UST AS CHESTNUT PETROLEUM Distributors (CPD) is a
driving force of retail entrepreneurship in New York, New Jersey and Connecticut, Sharif Jamal is one of the forces driving the company’s future. As an operations analyst for the company, which includes 300 company-owned and dealer-operated locations, Jamal recognizes that good customer service begins with good employees. “I believe one of the biggest issues we continue to deal with in our region is hiring new employees,” Jamal said “A c-store sales associate is not the most glamorous job so we have to do our best to make our stores fun and interesting places to work.” Of course, there are multiple facets to a successful convenience store operation and the family enterprise that has developed into the burgeoning CDP brand is preparing for the future. That includes improving foodservice offerings for company-operated sites and creating new programs to help dealers grow their business as well. “In 2018 we are hoping to launch more technology programs that can help automate some of our daily data entry and free up more time for our site managers to work with their teams and have more of a presence on the sales floor,” said Jamal. 32 Convenience Store Decisions
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F 2017 WAS A busy year for Whitney Haslam Johnson, vice president of brand and guest experience at Pilot Flying J, 2018 promises to be even busier. “We will also be rolling out the new Pilot Express concept,” said Johnson. “These locations are a smaller format than our travel centers. Through this new store model, we will be highly focused on enhancing our food offerings and will provide quick, healthy options. Pilot Express locations will feature newly upgraded and modernized facilities in addition to standard offerings.” Johnson is tasked with building a strong brand presence and helping further position the company’s travel centers as roadside destinations. Pilot Flying J operates more than 750 Pilot and Flying J Travel Centers across North America, serving more than 1.3 million customers daily. Pilot Flying J in 2018 will expand its network through the addition of some 20 new locations, Johnson said. In addition, the company is also highlighting the MyPilot app, allowing users access to trip planners, its MyRewards loyalty program and the ability to access special offers with our MyOffers feature. “Every day, our focus is to provide great service to our guests and to deliver on our mission of connecting people and places with comfort, care and a smile at every stop,” said Johnson. CStoreDecisions ecisions .com
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COVER STORY Mary Kolkoski, 30
Nick Lacaillade, 34
Assistant Director of Marketing Company: Jetz Convenience Centers Headquarters: Hales Corners, Wis. Number of Stores: 4 Years with the Company: 15
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ARY KOLKOSKI IS A fourth-generation member of the O’Connor family
business Jetz Convenience Centers. As the assistant director of marketing, Kolkoski is involved in all aspects of the business, but her focus is mainly on operations, payables and marketing. “I currently manage our Hales Corners location and am learning the financial part of the business,” Kolkoski said. “When I am not at one of the stores, or in the office, I work on our pump advertising and digital marketing.” Kolkoski and the Jetz team are excited for a busy 2018, preparing plans to help the chain grow its offerings in the new year. “We are currently working on new store designs, and I am excited to be a part of the process,” said Kolkoski. “This is a new area of the business for me and I am anxious to watch and participate as we deploy many of the current trends and new best practices.” Jetz also recently introduced higher blends of ethanol, specifically E15 and E85, to the forecourts. “I'm watching as the performance of that new sector grows,” she added.
Jillian Kreamer, 29 Store Systems Administrator Company: Freedom Oil Headquarters: Warsaw, Ind. Number of Stores: 6 Years with the Company: 5
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T WAS THE ENTHUSIASM that Freedom Oil owners Greg and Sheila Cobb had for
their business that convinced Jillian Kreamer to join their team five years ago. Today, that same level of enthusiasm still drives her and the company, which distributes gasoline to c-stores and gas stations while also operating six of its own c-stores under the Freedom Oil banner. As store systems administrator, Kreamer is responsible for the financial end of the business from accounts payable to petroleum accounting to managing the Pricebook. One of the biggest issues she sees facing convenience stores in Freedom Oil’s retail-saturated market areas is finding the right people to staff the stores. The company found some success by using social media such as Facebook to make connections. “We also increased our minimum wage, which has also helped to increase the pool of qualified and quality applicants,” said Kreamer. “To help keep and motivate the staff, the company also instituted a bonus program a few years ago.” Kreamer describes it as a kind of profit-sharing program that gives everyone a stake in seeing that the company does well. The program has been very rewarding, not just for the employees, but for the profitability of the company, she said.
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Senior Vice President of Retail and Corporate Development Company: Certified Oil Corp. Headquarters: Columbus, Ohio Number of Stores: 70 Years with the Company: 5
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S IT NEARS ITS 80th anniversary, Certified Oil is a company on the move. Founded by Carlyle Baker, in Piqua, Ohio in 1939, Certified remains one of Ohio’s leading c-store operators and retail fuel suppliers. Collectively, the family business operates or supplies more than 140 locations in Ohio, Kentucky and West Virginia. Nick Lacaillade, a third-generation executive for Certified Oil, has been senior vice president of retail and corporate development since 2012. Before returning to the family business, he spent seven years working on Wall Street. His father, Peter, is chairman and CEO of the Columbus, Ohio-based company. Looking ahead, the thriving retailer will be revamping its loyalty program to better meet its customers' needs. The new program will be called “For You Rewards," said Lacaillade. "In addition to the loyalty program, we will overhaul much of our human resources practices, including recruiting, interviewing and hiring standard operating procedures and rolling out a mystery-shop program," Lacaillade said. On top of this, the Certified convenience chain in January will open a new-to-industry store in Ohio—a move to grow its footprint. “I’m also head of corporate development, including spending our growth capital on rebuilds and new builds,” Lacaillade said. “We’re currently looking at a slew of properties at various stages to grow our store base.” December 2017 l Convenience Store Decisions 33
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COVER STORY Lindsay Lyden, 35
Bailey Lyden, 33
Vice President of Administration/Development
Vice President of Retail
Company: Truenorth Energy LLC Headquarters: Brecksville, Ohio Number of Stores: 110 Years with the Company: 10
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Company: Truenorth Energy LLC Headquarters: Brecksville, Ohio Number of Stores: 110 Years with the company: 11
N HER ROLE AS vice president of administration and development at Truenorth Energy, Lindsay Lyden’s responsibilities touch on many areas of the convenience chain’s operation. The goal is to continue to build a profitable business that’s well positioned to serve its customers while continuing to growing its market presence. That growth strategy also includes identifying new ways to market to a diverse Millennial base and ensuring a modern store design that keeps pace with evolving demand. “Truenorth is well into a revolving five-year plan of upgrading our network of stores,” said Lyden. “We rebuild six to eight stores every year and remodel another six to eight, focusing on signature features such as our restrooms, beer caves and food area.” Lyden and the executive team focus a considerable amount of time and thought on how the family-owned company, which operates 110 truenorthbranded store locations in Ohio and Indiana, can make the shopping experience for its customers quicker, simpler and more seamless. The demand for c-stores to remain nimble while providing U.S. consumers efficient service is only increasing.“I think our industry has always been tuned into what the quick-serve restaurants, drug and grocery [channels] are doing,” Lyden said. “But more and more, we are seeing Amazon being more convenient in people’s lives—with the key word being convenient.”
S VICE PRESIDENT OF retail for Brecksville, Ohio-based Truenorth Energy, which operates the 110-c-store chain truenorth, Bailey Lyden faces a number of business decisions every day. While government regulations in general don’t appear as burdensome as in years past, he believes there’s an ongoing need to challenge regulations at both the state and local levels in the categories of tobacco, labor and fuel. Lyden said that among primary initiatives for Truenorth in 2018 are two Stephanie Martone, 34 major initiatives: “We will continue Category Manager, Other Tobacco Products our aggressive investment plans on development in order to keep delivCompany: Cumberland Farms Inc. ering an updated retail experience for Headquarters: Westboro, Mass. our customers. At the same time we Number of Stores: 558 will continue to expand offers that are Years with the Company: 11 fresh and ‘better for you.’” Among the c-store’s additional TEPHANIE MARTONE WOULD NEVER say that she’s the face of Cumberland business plans for the next 12 Farms. However, it’s fair to say that there are many local community memmonths are strategies to enhance bers who know her as the face of the New England convenience chain. current foodservice offerings and That’s because as Cumberland Farms’ category manager who oversees OTP launch new food lines that comple- (other tobacco products), she regularly attends meetings of city councils and townment its current program. ship trustees to discuss the latest local tobacco ordinances, which have become “We also want to focus on market- common in many of communities where the c-store chain operates. ing the truenorth brand more than “The biggest issue we face right now is keeping up with the local legislation hapin previous years,” Lyden said. pening in the Northeast and evolving legislation at the federal level,” said Martone. Like all other retailers, the Ohio “We do our best to keep up with the changing landscape, but it is definitely a moving retailer is keeping keeps a weather target with lots of change.” e y e o n A m a z o n ’ s r a p i d i n c u rCumberland Farms continues to focus on serving patrons and being the best dessions into various areas of retail. tination for their everyday needs. That objective remains clear as the chain extends Amazon’s recent investments in the its retail reach into other areas including Florida—the test ground for its concept Whole Foods Market will force food store design that was launched a couple of years ago. providers to be more aggressive on As for OTP, Martone expects 2018 to be bright and sunny. several fronts. “Our biggest initiative is always to grow sales,” Martone said. “Product mix and “One of those fronts will continue innovation are key to that. We will continue to review and strive to make 2018 a great to be c-stores,” said Lyden. year for tobacco sales.”
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The convenience store industry’s young executives and next-generation leaders face unique challenges as they grow their businesses in the fast-paced, competitive convenience store market. The National Advisory Group’s (NAG) Young Executives Organization (YEO) was formed specifically to addresses these challenges and help the industry’s leaders of tomorrow identify solutions with others in their age group. YEO exists to serve as an effective conduit for getting young professionals more involved and prepared for leadership positions both in their companies and in the broader convenience store industry. Convenience store companies must identify their next-generation leaders and groom them for management positions. But leadership is a dynamic and demanding task. Many people believe they have what it takes to be an effective leader, but quite often they discover that the demands far exceeded their expectations. Successful leaders are prepared for the challenges ahead and have a vast support network to see them through the tough times. This is where YEO can help. YEO membership offers next-generation leaders a network of other young leaders in similar positions. The group meets twice annually at an annual roundtable in the spring and the NAG Conference in September.
For information on joining YEO or NAG, contact NAG Executive Director John Lofstock at jlofstock@csdecisions.com.
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COVER STORY Julia Miller, 31
Dana Moloney, 29
Director of Business Growth and Development
Strategic Workforce Partner Company: Warrenton Oil Co. (FastLane Convenience Stores) Headquarters: Warrenton, Mo. Number of Stores: 35 Years with the Company: 4
Company: Blueox Energy Headquarters: Oxford, N.Y. Number of Stores: 11 Years with the Company: 7
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ROWING UP IN THE family fuel and c-store business, Julia Miller developed an intimate knowledge of its customer base and their purchasing habits. For example, she knows some of their retail locations serve as a grocer on top of being a traditional convenience store. Miller, director of business growth and development, sees this larger community presence and service as an opportunity to add even more value. “We service a lot of rural areas with few options as far as places to eat,” said Miller, who’s been part of Blueox Energy for the past seven years. “We want to see families unload from their cars, sit down at our tables and spend time together enjoying good food, great staff and true convenience to their busy lives.” She wants to add value to the Blueox name, too. Very soon, all 11 stores will be rebranded as Blueox Neighborhood Markets. “The really unique thing about this new brand is it brings together our energy divisions and our store divisions,” said Miller. “We get to capitalize off both sides of our business. We have customers who don’t know we have stores and customers who don’t know we do energy. This is a great opportunity to bring those worlds together and service customers at their homes or on the road.”
Daniel Moran, 31 Category Manager Company: Robinson Oil Corp., (Rotten Robbie Convenience Stores) Headquarters: Santa Clara, Calif. Number of Stores: 35 Years with the Company: 1
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I’M A RECENT ADDITION to the Robinson Oil team, so learning about our unique stores and customer base has been a fun challenge,” said Daniel Moran, a category manager covering 35 Rotten Robbie c-stores in northern California. Prior to his current position, Moran worked in the consumer packaged goods industry for more than a decade. That experience provided him in-depth knowledge of various product families, but viewing them daily from the 36 Convenience Store Decisions
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ANY NEXT-GENERATION C-STORE LEADERS have been
groomed for success and understand that the business challenges they face today are significant. This is also true for Dana Moloney, who was promoted to strategic workforce partner in April 2017 after serving as FastLane's food service director for three years. At family-owned Warrenton Oil, which operates 35 FastLane stores, 11 car washes and three hotels, Moloney has enjoyed support from experienced leadership. “I’ve been able to learn from industry veterans, and been given the freedom to make my own decisions. I’ve also been introduced to several trade organizations and encouraged to take an active role.” Inherently there is a lot of pressure on next-generation executives when they are trying to fill the shoes of successful past leaders. The key is to continue learning the industry and carving your own path with employees and customers, said Moloney, who also sits on the Young Executives Organization (YEO) board. “As members of YEO, we are afforded the priceless opportunity to network with and learn best practices and cost-savings solutions from top industry leaders,” Moloney said. Overall, Moloney views the convenience store industry as a great place to build a rewarding career. “Our whole purpose is to offer a service that helps make peoples’ lives easier,” she said. “If we can help brighten someone’s day with a quick, tasty breakfast sandwich and coffee, that’s pretty cool. And it’s evolving, so it keeps things exciting.” convenience store level is rather fresh to him still. His approach has been a boon to Rotten Robbie’s retail operation. “I love being able to walk into a store and make changes that directly interact with customers and their shopping experience,” said Moran. Of course, some changes come about because of external forces including the threat of sugary drink taxes. “These initiatives have the potential to harm retailers based on geographic location, and fail to do little more than redirect purchases to another area, effectively hurting the local economy,” Moran said. To keep customers interested, he plans to cash in on consumers’ preference for locally-sourced products. “I want to focus on carrying more local brands, products that are hyper-local and haven’t blown up yet,” said Moran. “I want customers to come into my stores knowing we’ll have classic brands, but also something new and exciting.” CStoreDecisions ecisions .com
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COVER STORY Whitney Douglass Oestreich, 28
Robby Posener, 37
Credit Manager Company: Douglass Distributing (Lone Star Food Stores) Headquarters: Sherman, Texas Number of Stores: 22 Years with the Company: 4
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N TODAY’S TIME-STARVED WORLD, c-stores continue to have a place in U.S. retail as consumers want frictionless transactions. Whitney Douglass Oestreich is doing her part to ensure Lone Star Food Stores is meeting customers’ expectations. In 2018, Lone Star is rolling out a mobile app and expanding its proprietary Mexican quick-service restaurant, Mi Taco. Moreover, the retailer is opening its first coffee lodge (TexaKona Coffee Lodge). All of these initiatives will happen against the backdrop of a revamped employee-training program. Just as important, the chain is adding renewable diesel and gas without ethanol to its fuel offerings and implementing near field communications (NFC) to fuel dispensers, which enables flex pay. For all the projects at the pump, fuel is also one of the family business’ biggest challenges, Oestreich said. “Our biggest issue is trying to price competitively in a market where we do not get the RIN (Renewable Identification Number) while the competition around us does. To quote my grandfather, Bill Douglass, ‘the point of obligation needs to be moved to the rack or the government economics of subsidizing the large retailers will spell the eventual end to the small, independent retailer. The small retailer attrition, currently created by the uneven playing field has already begun, with hundreds selling out where possible or just closing.’”
Alex Olympidis, 30 President of Operations
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Company: Family Express Corp. Headquarters: Valparaiso, Ind. Number of Stores: 70 Years with the Company: 9
T'S A BEEN A busy year at Family Express as the company rolled out a new
design that is focused on center store and foodservice. Overseeing these initiatives is Alex Olympidis, who was recently promoted to president of operations. Olympidis, who also serves as the vice chairman of the Young Executives Organization (YEO), said Family Express "strives to be the finest small chain of convenience stores and fueling centers in the world." To help meet that goal, over the past 12 months, the Valparaiso, Ind.-based chain debuted a new made-to-order hot foodservice offering, labeled Cravin’s Kitchen, as well as rebranding the inside of its stores with a focus on foodservice. Cravin’s Kitchen features made-to-order breakfast sandwiches and an exciting upscale, customizable pizza offering. Over the next year, the company looks to continue its expansion of the Cravin’s to Order foodservice program across all three dayparts, Olympidis said. The deployment of Cravin’s Kitchen is synchronized with the rebranding of Family Express store interiors designed to bring focus to its foodservice program. “The family of our proprietary brands has evolved over decades of marketing, but they existed in silos as opposed to speaking with one voice,” said Olympidis, who oversees 70 Family Express locations across northwest and north central Indiana. CStoreDecisions ecisions .com
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Vice President of Store Experience
Company: RaceTrac Petroleum Inc. Headquarters: Atlanta, Ga. Number of Stores: 500 Years with the Company: 14
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ITH A 6,000-PLUS SQUARE-FOOT
convenience store design, offering more than 4,000 items, Swirl World frozen yogurt, free Wi-Fi and both indoor and outdoor seating, RaceTrac Petroleum has become a model of consumer satisfaction. Helping the Atlanta-based convenience chain delight customers is Robby Posener, RaceTrac's vice president of store experience. In 2018, foodservice will be a higher priority. "We have finally gotten comfortable with our ability to execute food at the levels that our guest expects and our menu is headed right where we want it, which is allowing us to feel confident in our investment to roll out a first-class food operation," Posener said. "Our continued enhancements in immediately consumable beverages are also supporting that work along with great bolt-on purchases from our private label line." As RaceTrac grows and expands into new markets, Posener said other retail channels such as dollar stores and online retailers will vie for its customers. "The threats to c-stores are coming from all angles, which makes it harder to pinpoint how to react," he said. "The space we are headed into is very crowded as we become a restaurant that also happens to provide a great c-store and fuel offering. At RaceTrac, we feel that our ability to offer consistency, variety and speed are going to be three distinctive advantages."
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COVER STORY “Retailers are inherently drawn toward execution,” said Quint. “However, an execution-only focus will eventually District Supervisor deteriorate your ability to provide the best customer service possible. We’re working to connect with our customers Company: Kum & Go L.C. through small, meaningful details. We have some of the Headquarters: West Des Moines, Iowa best associates out there, and it will be my job to help them Number of Stores: 420 understand how their connections will make Kum & Go the Years with the Company: 3 convenience store of choice.” Faster, easier shopping is becoming both commonplace ITH STORES IN 11 states, Kum & Go continually strives and expected in the c-store industry. Staying ahead of the to differentiate its operation from that of other retailers. curve is important. “Some companies are trending towards smaller footprint One example is the convenience retailer ’s &Rewards loyalty program, which rolled out more than a stores that allow a faster shopping experience,” Quint said. year ago, said Ashley Quint, district manager. “We’re now “In certain markets, you can order online and have the prodconnected with over 700,000 of our best customers and use ucts delivered within an hour. Kum & Go’s ability to stay relevant with fresh food, dependable service, fuel choices that connection to stay relevant through their feedback.” In 2018, Kum & Go will launch a new initiative that and ease of shopping is critical as other channels merge into our ‘convenience’ zone.” focuses on connecting with people.
Ashley Quint, 34
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Jared Scheeler, 37
Matthew Redmond, 30 President
CEO
Company: Raymer Oil Co. (Fast Phil’s and Run In) Headquarters: Statesville, N.C. Number of Stores: 20 Years with the Company: 7
Company: The Hub Convenience Stores Inc. Headquarters: Dickinson, N.D. Number of Stores: 3 Years with the Company: 6
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ED BY MATTHEW REDMOND, company president, Raymer Oil has earmarked 2018 as the year for some important company initiatives. Raymer Oil comprises 10 Fast Phils and 10 Run In branded locations. “We have had great success growing our retail business over the last two years and are looking to continue to make smart acquisitions into next year with a focus on continuing investments into foodservice,” he said. That includes continuing to add foodservice to every store that has a footprint large enough to accommodate it, said Redmond, who joined the family company seven years ago. That’s despite the challenges of competing retail channels and larger c-stores. “We have some of the best in class operators in our area and having to compete with them helps us to continue to remain focused on delivering the best customer experience possible with the lowest possible price,” he said. The burgeoning retailer isn’t focused solely on business. It also supports the local communities where it operates by giving back through golf tournament participation, charity luncheons and sitting on social committees. The company recently helped a local elementary school in need of funds procure playground equipment. “I’m incredibly proud of all the great causes that we have the benefit to be involved with,” said Redmond. 38 Convenience Store Decisions
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OR JARED SCHEELER, LEADERSHIP means balancing what has been done with what’s to come. “It's important to keep an eye on the future, but we must also remember to balance that with the basics of the past,” he said. So how do leaders achieve that? “I believe there's a natural inclination for young leaders to continuously look forward, looking for that next great initiative or progressive leadership style,” said Scheeler. “But we need to remember that the things our predecessors in this industry did yesterday, helped set us up for the success of our industry today.” That success is helping Scheeler overcome challenges in the Bakken Oil region, where oil industry volatility affects sales forecasts, volume and pricing. With a mix of forward thinking and respect for the past, he is working to build new programs for The Hub in branding and foodservice. “Though we are looking hard at some technological initiatives for 2018, the bulk of our energy will be put towards updating acquired stores to properly represent The Hub's branding,” Scheeler said. “We're still focused on developing ourselves as a quality alternative to the quick-service restaurants. We're continuing to work on developing our identity in the food channel.” CStoreDecisions ecisions .com
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COVER STORY Michael Schiemer, 32
Bart Stransky, 38 Executive Director of Merchandise and Supply Chain
Digital Marketing Manager
Company: Colbea Enterprises (Season Corner Market) Headquarters: Cranston, R.I. Number of Stores: 60 Years with the Company: 3
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S THE DIGITAL MARKETING manager for Colbea Enterprises, Michael Schiemer is prepared for a big year ahead doing everything he can to help spread the word of Seasons Corner Market, both online and offline, to consumers throughout New England. “Seasons Corner Market has had another incredible year of growth and 2018 will be even better. It's an exciting time for both the convenience store industry and the growing use of digital marketing as a tool to brand and promote c-stores,” Schiemer said. As customers spend an increasing amount of time on computers and mobile devices, Schiemer said it is critical to reach the right consumer on the right digital platform at the right time. “There are countless areas of our digital marketing strategy that we plan to improve, expand, evolve and refine,” he said. As the c-store industry grows more competitive each year, he said it’s vital to follow current trends, but also to listen to those with decades of valuable experience. “I've learned a great deal over the years from my father who worked extensively in the industry. I continue to learn new things every day from all of the talented leaders here at Colbea Enterprises,” said Schiemer. “I greatly appreciate the wisdom they have shared with me and I will continue building on it.” CStoreDecisions ecisions .com
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Company: RaceTrac Petroleum Inc. Headquarters: Atlanta, Ga. Number of Stores: 500 Years with the Company: 10
N ARMY VETERAN AND graduate of the University of Georgia, Bart Stransky has led some of RaceTrac’s largest initiatives and served in a variety of leadership roles over his 10 years with the convenience chain. Now as executive director of merchandise and supply chain, one of his top priorities is to integrate the operational systems in which the company has invested. "We are focused on leveraging technology to automate a number of store processes around invoicing, ordering, receiving and other inventory functions," he said. "Helping the stores with these processes allows them to focus more on our guests’ needs." Another initiative that will be coming to life for RaceTrac in 2018 is increasing its internal product distribution abilities, especially around perishable products. "This will support our expansion of freshly prepared foodservice offers across the fleet," Stransky said. Over the next 12 months, RaceTrac will also continue to focus on organic store growth, investing heavily in upgrading its self-distribution capabilities, with a tight focus around perishable products. "As we grow stores we are also focused on expanding the advanced food offering we have in our locations," Stransky said. "Our guests have shown that they desire these types of offers from us and we are working to deliver them across the company.”
Jared Sturtevant, 39 Supervisor of Digital Marketing Company: Alimentation Couche-Tard / Circle K Headquarters: Laval, Canada Number of Stores: 13,600 Years with the Company: 22
J
ARED STURTEVANT’S ROLE HAS changed significantly compared to a year ago with the acquisition of CST Brands by Circle K. He continues helping the company during the transition. “Currently, I am actively assisting Circle K global, national and the respective business units with the transition of the Corner Store and Nice N Easy Grocery Shoppes digital assets to Circle K,” said Sturtevant. “We are in the process of migrating our robust audiences to the Circle K App, website and social platforms.” Sturtevant has had the opportunity to learn from some of the industry's most respected leaders during his 22-year career in the c-store industry. He began his career with Nice N Easy Grocery Shoppes in 1996 as a clerk shortly following high school. Prior to CST’s acquisition of Nice N Easy, Sturtevant served as the director of marketing at Nice N Easy for five years. Before that, he was director of category management. Sturtevant is also the chairman of the National Advisory Group's (NAG) Young Executive Organization (YEO). Although so much of Sturtevant’s past is closely tied to the industry, his focus remains on the future. “My focus for 2018 will be ensuring a smooth transition for our customers as they are introduced to the Circle K brand. I will also be exploring new and exciting (career) opportunities.” December 2017
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COVER STORY Spencer Thomas, 24
Whitney Thomas, 25
Brand Manager
Executive Assistant
Company: Southwest Georgia Oil Co. Headquarters: Bainbridge, Ga. Number of Stores: 80 Years with the Company: 3
C
OMPETITION FOR C-STORES COMES not only from
other convenience stores, but also from grocers, general discount stores, big box chains, and now, online retailers that deliver purchases to homeowners’ doorsteps. Achieving growth within this crowded field is an accomplishment for any retail business Then again, expansion presents its own set of predicaments to overcome as Spencer Thomas can attest. “Our company has tripled in size over the last few years, and this has been a challenge,” said Thomas, brand manager for Southwest Georgia Oil Co. “The amount of growth our company has taken on the last few years [affects] the level of consistency and execution to our stores.” Currently, its retail division features several store names, including SunValley Market & Deli, Inland Fuels and S&S Food. For 2018, though, leadership has decided to consolidate its identity by creating and promoting a new brand name for all locations. With 80 sites, that’s no small task; however, Thomas, whose duties include construction development, said it’s been a valuable learning experience for him professionally. “The most influential development for my career…has definitely been having the opportunity to work on different concepts that we are working on rolling out in 2018,” he noted. “I am always learning from the leaders of our company.”
Company: Southwest Georgia Oil Co. Headquarters: Bainbridge, Ga. Number of Stores: 80 Years with the Company: 4
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S AN EXECUTIVE ASSISTANT, Whitney Thomas is often assigned to oversee elements of a multitude of projects for Southwest Georgia Oil Co. Currently, she is attending to details related to unveiling a new retail concept for 2018. “We have a few concepts beside c-stores that we want to nail down, [including] a non-fuel site on a college campus, a grocery/market/c-store concept and a travel center,” said Thomas. The company, which operates locations in Alabama, Florida and its home state of Georgia, also is preparing to overhaul its existing retail chain, which would include a significant redesign. “The new concept is unlike anything we have seen in the marketplace, so we are very excited to get this rolling out,” she added. Having an active role in a variety of endeavors keeps Thomas inspired. In fact, it’s what she enjoys most about working in the convenience store industry. “Changing concepts within the stores and creating new ideas to stay innovative is a fun task,” Thomas said. “People will always need to fuel their cars, and it’s a fun challenge to maximize each visit and make it special so they keep coming back to our stores.”
to take the company forward into the future. We have an incredibly strong management team supporting us, and Real Estate Development Manager they provide a vast experience and knowledge base, both within themselves and in the teams they have built. As Company: Kwik Trip Inc. Gramps says, ‘Life is good, and the best is yet to come.’” Headquarters: La Crosse, Wis. Among Kwik Trip’s major initiatives that will spill over Number of Stores: 615 into 2018, he explained, is its retrofitting of this year’s acquiYears with the Company: 6 sition of the PDQ convenience chain, which operates mainly in Milwaukee and Madison. “This acquisition has allowed us to enter critical markets in ARK ZIETLOW CREDITS HIS early professional success to the good fortune of having a mentor in his grand- our overall real estate strategy, and will complement our yearover-year initiative of building 50 stores per year,” said Zietlow. father, Don Zietlow. His company’s focus and goal remains consistency. “He has laid the foundation for both the company and “We strive to provide excellent food at a value for our family,” he reflected. “He has set us up for success, and has ensured the sustainability of the company. As part of our guests, the best fuel options and quality, and supethe third generation of family ownership, along with my rior guest service for our seven-million guests per week,” siblings and cousins, it is our privilege and responsibility said Zietlow.
Mark Zietlow, 30
M
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CATEGORYMANAGER’S COLUMN
Figuring Out the Future of Tobacco While some segments such as smokeless remain steadfast, the dynamics surrounding other tobacco products—including vape—are changing in part because of manufacturers’ aspirations to get their offerings to market. By Steve Sandman
T
HE LARGEST SINGLE CATEGORY in c-stores—tobacco— of quicker acceptance from the FDA and ultimately the pubis changing faster than many of us may realize. Given lic in general. So what kind of products are we talking about? Philip the speed of technology today and the advances in the Morris International (PMI) has invested over $3 billion in marketplace, it’s not surprising. While the headline grabbers these days in the technol- research, almost $2 billion in manufacturing changes for a ogy world remind us of Uber, Amazon and Tesla, the idea product called IQOS. In fact, the product boasts more than of smoking tobacco is changing just as rapidly, and those 3 million users worldwide. And while the product hasn’t been introduced to the U.S. changes will be landing upon our doorstep before most of yet, applications are filed and the Altria Group, parent of us hear the thud. PMI, is the exclusive distributor here. The innovative product heats tobacco, but doesn’t MOVING ON burn the tobacco, allowing the With the quick rise of vaping, smoker to have all the smoking and the settling down of the catsatisfaction of a cigarette withegory after years of chaos at retail, out ingesting the cancer-causing many stakeholders in the industry agents created when burning the put their interest in tobacco techproduct. nology behind them and moved on, but there’s so much happenSMOKE FREE ing it’s hard to narrow it down By 2025, PMI expects 30% of to a few key developments, but their volume to be “smoke free.” let’s take a stab at it because deciRJ Reynolds (RJR) has not only sions will have to be made and the invested in the VUSE brand, but category will look significantly RJR’s heat-not-burn technology different in the next five years. dates back to the 1980’s and the The most important thing to know is that recently appointed U.S. Food and Drug company has filed applications with the FDA this past sumAdministration (FDA) commissioner Scott Gottlieb publicly mer for improved versions of the technology. PAX Labs markets and currently sells JUUL, which utipronounced two key changes to tobacco, which will intersect lizes a nicotine liquid filled pod in a device that exclusively soon at a store near you. First, Gottlieb stated the FDA will seek to reduce nicotine holds the disposable pod. The actual device, in some way levels in cigarettes in order to reduce harm by discouraging similar in looks and feel to IQOS, looks like something from smokers to burn tobacco, and the menthol ban looms even if the future, with sleek and simple lines. What’s most impressive is the true satisfaction smokers apparently are receiving it’s only at some local levels, currently. Secondly, he’s announced not only a sharp focus on from the device. Some c-stores have never seen the product at retail, and one reduced-risk products, but encouraged the tobacco industry to bring them forward. These two tracks will speed innova- reason is because the company can’t seem to produce enough tion of reduced risk products, and have all the appearance pods. Retailers that have been stocking the product are sold CStoreDecisions ecisions .com
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CATEGORYMANAGER’S COLUMN “THE PRODUCT HEATS TOBACCO, BUT DOES NOT BURN TOBACCO, WHICH ALLOWS THE SMOKER TO HAVE ALL THE SMOKING SATISFACTION OF A CIGARETTE WITHOUT THE CANCER-CAUSING AGENTS CREATED BY BURNING THE PRODUCT.” out within a few days of shipment, usually a short-shipment, and spend the rest of the week out of stock. The majority of retailers I have spoken with are clearly stating these sales are coming from smokers, which differs to some extent from many who used vape because it was new and different. What’s also different here is that the company will sell directly to consumers, presenting another challenge for retailers on determining whether or not to support a business model where the manufacturer competes directly for consumers with their stores. We can all be certain that the other major cigarette companies are developing technologies that will compete in the reduced-risk category, not to mention some OTP man-
ufacturers such as Swedish Match that may be nearing regulatory approval to claim-reduced risk for its Generalbranded SNUs products. The FDA has really told the market, out with the old and in with the new when it comes to tobacco. According to BAT/RJR Investor Day presentation, 46% of smoking consumers are open to change and are looking for products to better suit their desires. These new products are the real deal, and there’s no question we can expect to see them on store shelves in the next few years, if not sooner. British American Tobacco (BAT), which has a portfolio that includes the leading smokeless brand, Grizzly, is determined to turn its vaping business into a billion-dollar enterprise. Recently the manufacturer said it expects to double sales of “new generation products” to more than $1.3 billion in 2018. The company also expects that revenue from all tobacco products, including e-cigarettes and tobacco that heats without burning, to reach $6.6 billion by 2022. Steve Sandman has worked in the tobacco industry for more than 30 years, most recently as president of Republic Tobacco. His extensive experience includes product management. He can be reached at (812) 569-1388.
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FOODSERVICE
Dazzling Customers Across All Dayparts
Retailers that position their stores as foodservice destinations are making a promise to offer fresh, enticing meals and snacks day and night. It’s a promise they can’t afford to break. By Marilyn Odesser-Torpey, Associate Editor
R
simply snack stops. According to ented outside suppliers can become Eric Dwonezyk, global co-director foodservice leaders in their markets. Kwik Trip, which has 550 cont u r n i n g t o c o n v e n i e n c e for AlixPartners, by beefing up their stores for their meals. In its menus and using every opportunity to venience stores in Wisconsin and September 2017 “North American promote their mealtime food offerings, Minnesota, is a prime example of a Convenience Store Consumer Study,” retailers around the country are dem- grab-and-go-only operation that has consulting firm AlixPartners reported onstrating that it is possible to break firmly established itself as a food destination in its markets. In fact, when that the frequency of consumers through that mindset. “In some markets, certain conve- the company recently acquired PDQ purchasing a meal at a c-store has nience stores have raised the bar for Stores in the Wisconsin cities of increased by 13.2% since 2012. Consumers who participated in the foodservice by showing consumers Madison and Milwaukee, customers study also indicated that foodservice is what good really looks like,” he said. came in looking for their favorite sandnow the primary driver for their in-store “To compete, others need to catch up.” wiches and burgers. Kwik Trip is no stranger to fresh purchases in the past 12 months. The top foodservice. The company has been factors consumers consider in selecting GRAB AND GO Though made-to-order immediately focusing on this category for the past a c-store to purchase a meal are price, quality, speed and variety. Older con- communicates freshness and gener- 15 years. Grab-and-go is the route sumers are heavily focused on location ates buzz, stores that don’t have the Kwik Trip took because that is what and convenience, while Millennials and space, labor or budget for it don’t have customers want. “Our customers expect the speed of Gen X both identify price and food qual- to be left out, said Dwonezyk. Instead c-stores with off-site proprietary kitch- grab-and-go,” said Paul Servais, Kwik ity as their top considerations. At the same time, however, there ens or commissaries that deliver food Trip’s retail foodservice director. “If is also a large percentage of the pop- to the stores or even stores that have we would switch, it would be painful, ulation who still view c-stores as strong relationships with quality-ori- even if we ask them to only wait for an ESEARCH SHOWS THAT CONSUMERS are increasingly
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FOODSERVICE whole or by the slice. Hot foods, such additional three to five minutes.” Cold fresh-case foods such as sand- as breakfast sandwiches, burritos and wiches, subs, salads and fruit parfaits burgers are cooked in the stores’ kitchare prepared in a proprietary off-site ens. Every day one hot item is selected kitchen and delivered to the stores daily. for sale at “a significantly reduced Pizza is available for take-and- price,” Servais said. Foods from the stores’ Hot Spot are bake or baked in the stores to be sold
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4 TIPS TO DRIVE DAYPART PURCHASES • Foodservice is the primary driver for in-store purchases. • Customers still want the speed and convenience of grab-and-go. • Price promotions can pay off. • Burritos and bowls can easily make the dinner transition.
such big sellers that the company has to keep adding shelves to the display. The company also has its own bakery where pastries, doughnuts, cookies, bars and other desserts are produced for delivery to the stores. With the goal of getting more consistently good food out in less time, every year Kwik Trip budgets between $1 million and $2 million for store kitchen equipment upgrades. Recently, the company replaced its Turbo Chef ovens with an upgraded TurboChef I3 Convection/Microwave model. “We’re constantly reinvesting in our stores,” said Servais. In addition to speed and convenience, the company is always looking for ways to tempt their customers with new items and flavors. Limited time offers (LTOs) make it easy to deliver more variety. While some customers are looking for “better for you” sandwiches, salads and snacks, many still want their pizza, cheeseburger and chocolate milk, Servais said. Where the health trend is going for a growing number of consumers, he predicted, is toward “clean” ingredients—without GMOs or anything artificial. FRESH IS BEST Burritos are a signature item that carries through the breakfast, lunch and dinner dayparts at Kent Oil Co.’s Kent Kwik Convenience Stores in west Texas, New Mexico and Oklahoma. Five different breakfast varieties are CStoreDecisions ecisions .com
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FOODSERVICE available, made-to-order in-store at 16 of the chain’s 44 locations and delivered daily from the company’s proprietary commissary for the rest. “We emphasize freshness in all of our stores,” said Stormy Williams, Kent Kwik’s director of operations—foodservice division. “In our advertising for our stores that don’t prepare their own food we point out that it is made fresh in our own commissary.” Since April, the chain has been featuring breakfast, lunch and dinner bowls. For breakfast, the bowls may be composed of seasoned potatoes, bacon, sausage or chorizo, egg and cheese or sausage with white gravy. Lunch and dinner choices are meat loaf or pot roast with mashed potatoes, gravy and corn. Breakfast is still the most popular meal of the day at Kent Kwik, but the lunch daypart is growing, especially
in the 16 made-to-order locations that offer burgers and fries and chicken tenders. To build dinner business, the retailer promotes a chicken tender meal for four people. MAXIMIZING MARKETING Consistently extensive promotions help Nittany Energy’s 25 Nittany Minit Marts in Pennsylvania that have foodservice grow sales throughout the day. Everything for made-to-order and graband-go including hoagies; hot, deli and breakfast sandwiches; wraps; pizza; salads and tacos and taco salad is prepared in the stores’ kitchen. Nittany Energy operates a total of 26 stores. Pizza is experiencing exceptionally strong sales, a fact that Angela Gearhart, the company’s foodservice category manager attributes to more promotions. The pizza is widely touted
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OPERATIONS
C-Stores Power Through Storms
Having a back-up generator can help immensely when bad weather happens. By Howard Riell, Associate Editor
T
HE TAKEAWAY FROM HURRICANES Harvey, Irma power systems to avoid outages in the future, which should and Maria, which wrecked parts of Florida, Texas, obviate the need to scramble to find temporary generators. As Smith explained, “We won’t have to worry about Louisiana and Puerto Rico this year, is neither novel nor surprising, but it is true: an ounce of prevention is whether (a rented generator) works or what department it’s got under it. We’ve got one store online with the new sysworth a pound of cure. After Hurricane Maria devastated Puerto Rico, recovery tem now, and two coming on later this year and the first of efforts have been ongoing, while recovery after Hurricane next year, so we will definitely be ready for the hurricane Harvey in Texas and Irma in Florida is almost over. During season going forward.” While the temporary generators certainly prevented a the eye of any storm, however, convenience stores are often a lifeline for local residents who are in need of basic goods. great deal of loss, Smith said they also represent an expense. The key to staying open and serving customers during a “You have a cost in getting those, and the cost to set them natural disaster is maintaining power, which often depends up. What you are really looking to do is to provide some gas, upon back-up generators—a simple, but sometimes-scarce and some power inside. The temporary generators won’t run a lot of stuff; generally speaking, you get about a quarcommodity. ter of the store working.” FLORIDA SURGE Stoney Smith, owner, president and CEO of Hudson DOWN AND OUT “We closed all of our stores for a couple of days, but we Food Stores/United Foods, based in Chiefland, Fla., said that almost half of the convenience chain’s 18 stores lost were fortunate enough to get a few of them up and runpower during Irma. Interestingly, the stores on the coast ning quickly,” said John Cary, president of Dion Oil LLC, never lost power, which he called a miracle. “Obviously, it in Key West, Fla., which owns and operates the Dion’s c-store chain. “We have 12 company-operated stores, three came in a lot further south.” Smith’s company maintains a couple of generators at of which are still down.” The dollar damage done by the storms has yet to be calcustores that are moved to various locations as needed. The most likely locations to require them are usually those along lated, Cary said. “We don’t even have that number together north Florida’s evacuation routes, state roads like U.S. 19, 27 yet, to be honest. We are still having contractors going in and looking at the sites. It’s going to be a very large number.” and 41, which run North and South. Dion Oil’s management team brought temporary generThe Hudson/United team managed to get a hold of three additional generators at the last minute this year, each of which ators to several of the chain’s locations. “When something supplied enough juice to power a store. The chain is currently like this happens, you realize you don’t have enough of refitting units with a combination of solar and battery backup them,” Cary reflected. “But we did bring in enough genera-
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OPERATIONS DETERMINING YOUR COMMERCIAL GENERATOR REQUIREMENTS A GENERATOR THAT’S BUILT for commercial applications is going to be more substantial than a consumer model. The steel will be a thicker gauge, the engine larger and typically liquid-cooled, and the internal electronics more robust to handle higher wattages and higher heat associated with longer run times.
While the utility power coming into your house is “single-phase” and powers 120/240 volt household appliances, the utility power for your business typically is 3-phase which supports a larger electrical demand. A store’s electrical panel will help you determine its voltage requirements. For many, the electricity enters a building at 120/208 or 277/480 volts into the first electrical panel. Of course, always turn to a professional for the best information. Source: www.electricgeneratorsdirect.com
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tors and put them in strategic locations. We had to bring in some to our oil company just so that we could get the fuel out to the sites.” Dion stores lost a tremendous amount of money due to lost sales resulting from the power outage, Cary noted. “You can do nothing; all you can do is watch your product go away. Absolutely, you need the refrigeration to keep going. You need the fuel pumps to keep going. The consumers desperately needed the fuel for their own generators at home, for their own vehicles.” Cary believes it pays for c-store operators to own their own generators. “We own three currently, but before the next storm comes along hopefully we will have some more.” He said the best thing about a store having its own generators is timeliness. “You can bring them right up to the site and get them set up right away,” Cary said. “If you are looking to rent one you just have to hope that whoever is renting them still has them available by the time you get to them. They do disappear quickly.” Wiring is another challenge an operator doesn’t want to have to deal with during the run-up to an emergency. “Having a generator on site means you have the box in place already, so that you can hook them up. You don’t want to
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OPERATIONS have to go ahead and rewire your entire electrical system when the unthinkable happens.” ENERGY MANAGEMENT While energy is of course critical, it is not the only concern. According to Ned Bowman, executive director of the Florida Petroleum Marketers & Convenience Store Association, in many cases generators were all but beside the point. “The electricity was knocked out, but the argument has always been that in order to run generators you need people at the c-stores,” said Bowman. “When they ordered evacuation of Monroe County and Miami-Dade County, for Dion Oil and Hudson United Foods the No. 1 concern was the safety of their employees; not to sell food and gasoline, but to get their employees out of harm’s way.” Bowman emphasized that once the evacuation order was given there weren’t a lot of people left in the Keys, yet retailers kept operating. “Tom Thumb stores borrowed some generators from another association member in Clearwater and brought those down, but resources remained limited going into the Keys. Florida Power & Light (a utility company serving 10 million people) and Duke Energy Florida had the power
turned back on quickly nearly everywhere except Naples,” said Bowman. “Some of the RaceTrac stores had power, though a few of them had technical issues with the transfer switches and their computer systems.” PLANNING AHEAD Though preparing for emergencies is wise, human nature and budget limitations will remain a tough combination to beat. “You know, it’s a question of being underfunded and never knowing when you are going to get a hurricane,” Smith observed. “A lot of times there’s a threat but you don’t really lose power, even if it comes through. We were amazed that some of our stores kept power.” Smith advises operators who can afford it to keep emergency generators on hand at all times, even if they are the smaller, 150-200-watt models found commonly on construction job sites. Cary said he plans to be more proactive, going forward. “In retrospect, we would like to get some more (generators) before the next storm comes, but you just don’t know,” he said. “We bought this chain about a year-and-a-half ago, so this was our first full-on hurricane. Definitely, now is the time to start planning.” CSD
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*Offer valid only for merchants who purchase a National Retail Solutions (”NRS”) POS register in full with one payment and sign a standard service contract between November 15, 2017 - December 31, 2017. Service and support fees are $19.95/ month. NRS reserves the right to cancel, suspend or modify time without notice. *All Boss Revolution products and services are subject to terms and conditions. Visit www.bossrevolution.com for complete terms, current rates and additional information. Boss Revolution money transfer products and payment services are offered and serviced by IDT Payment Services, Inc., licensed money transmitter, or IDT Payment Services of New York LLC, licensed as a Money Transmitter by the New York State Department of Financial Services.
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NEWSTUFF Creations & Innovations to Convenience Products and Services
CHURRO DONUTS Rich’s Foodservice is introducing Churro Donuts. New Churro Donuts will take a store’s bakery case to a delicious new level. A unique mash-up between a Spanish churro and an American donut, this sweet treat is sure to grab attention. Churros increased on menus by 29% over the last four years, and 73% of donuts are impulse purchases. Churro donuts are delicious on their own, or stores can add the included cinnamon-sugar or create a unique offering with melted chocolate, toasted coconut or caramel—the combinations are endless! The SRP range is 59 cents to $1.29.
For More Information From Rich's Foodservice www.richsfoodservice.com
AUTHENTIC GRILL BURRITOS Menu del Sol frozen entrées combine the convenience of easy-to-prepare foodservice with the authentic taste of a freshly-made, freshly-cooked Mexican meal. Products include popular Mexican recipes passed down from generation to generation. The roller grill burritos offer four delicious Mexican flavors for roller grill usage in addition to traditional serving methods.The burritos bring a new use to the convenience store roller grill, with the ease of a quick and satisfying carryout snack or meal. Look for Chicken and Chipotle, Chicken and Green Sauce, Chorizo and Cheese, and Vegetarian Bean, Corn and Poblano Burritos in the coming months.
For More Information From Menu del Sol www.bar-sfoods.com
POS POWER National Retail Solutions (NRS) has introduced the NRS POS+, the latest and best technology built especially for convenience stores and independent markets. Their Point of Sale (POS) bundle includes state-of-the-art software on their Dual Screened POS, a 2D scanner, a cash drawer and a thermal receipt printer. NRS POS+ also comes integrated with a digital loyalty program that offers manufacturer coupons, reimbursed daily. Also included in the POS package is a text message marketing program, a customer retention program, an inventory tracking feature that also uses your selling habits to help you know when to reorder on your products, in-store promotions, store statistics, a mobile app and portal, and the aggregated represented buying-power to CPGs of all of NRS POS stores, now over 4,000 stores nationwide. The NRS POS+ will transform how you run your business. With insights into your sales, user permissions, and access to monthly manufacturer coupons, you will be fully equipped with the right tools to manage your store with precision and peace-of-mind. The NRS POS+ is an affordable solution for your business.
For More Information From National Retail Solutions
www.daelmansstroopwafels.com
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Daelmans stroopwafels recently launched the chocolate-caramel duopack stroopwafel. Daelmans is a family-owned Dutch bakery group. The new flavor upholds Daelmans’ tradition, with a deep, rich chocolate flavor from real chocolate and only natural ingredients baked into the dough. Delicious straight from the package, Daelmans Stroopwafels evolve into a scrumptious, sweet and melty treat when placed atop your hot cup of coffee or tea for about one minute, allowing the heat to warm the biscuit, soften the caramel, and release the natural aroma of cinnamon and real Bourbon vanilla. The two-pack retails for $1.79-$1.99, and the cube of eight retails for $4.79-$4.99. Stroopwafels are also available in honey and caramel flavors and are distributed in the U.S. in grocery, specialty and convenience chains, including 7-Eleven, Sunoco, Wawa, Rutter’s and more.
For More Information From Daelmans
(833) 289-2767
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NEWSTUFF Creations & Innovations to Convenience Products and Services
FUN, FRUITY FLAVORS The ICEE Co. debuted a number of new flavors and a newly-launched machine at the 2017 National Association of Convenience Stores (NACS) Show in October. The ICEE Co. introduced new flavors Fanta Watermelon Splash, Fanta Blood Orange, Fanta Green Apple, WARHEADS Watermelon, Strawberry Basil, Blackberry Mint Limeade and Blue Lemonade. The recently-launched TWISTED CHILL Machine is giving consumers the chance to make their own unique flavor combinations. The new TWISTED CHILL dispenser is a machine that does it all – mixing multiple flavor infusions with a base flavor in a single cup.
For More Information From The ICEE Co. www.icee.com
COFFEE GO CUBES Nootrobox has introduced GO CUBES to the c-store channel. GO CUBES are gummy coffee bites offering enhanced cognitive performance without the jitters often associated with coffee and energy drinks. GO CUBES are made with cold-brew coffee and offer a full nootropic stack, including caffeine, B complex to accelerate metabolism and L-Theanine, an amino acid found in green tea. Each cube is 35 calories with the caffeine equivalent of one half a cup of coffee. GO CUBES are available in individual and mixed flavor packs. Single flavor packs are offered in Latte, Pure Drip and Mocha. GO CUBES are available in more than 3,000 retail locations nationwide, including more than 100 Shell Gas locations in the Chicago area, and in The Loop, a popular California c-store. GO CUBES are also coming to 450 California 7-Elevens in spring of 2018. Individual four-packs have a SRP of $2.99.
For More Information From Nootrobox www.hvmn.com
STICK PACK CHEWS Torie & Howard has introduced a grab-and-go stick pack of its USDA Organic Chewie Fruities fruit chews. The 2.1-ounce stick packs began shipping in July. The stick packs contain 10 individually-wrapped pieces of candy and are available in three sophisticated flavor duos, which include Italian Tarocco Blood Orange and Wildflower Honey, California Pomegranate and Sweet Freestone Nectarine, and Meyer Lemon and Raspberry. The candy is made in the U.S. and one serving provides the daily requirement of Vitamin C. The stick packs have a suggested retail price of $1.99 and have 18 to a display case and 12 cases in a master case. All Torie & Howard candy is USDA Organic, kosher certified, contains no artificial dyes, flavors, preservatives or genetically engineered ingredients, and is free from major allergens, including soy, wheat, gluten, nuts and dairy. Chewie Fruities candy also is available in gusseted four-ounce peg packs with a suggested retail price of $3.99 and ships six to a case and 48 to a master case.
For More Information From Torie & Howard www.torieandhoward.com
PROTEIN-PACKED SNACKS Reichel Foods introduces the next generation of PRO2snax to the Max line extension. These exciting new products are protein-packed meal replacements made up of fresh produce and healthy proteins. They are top quality products that are a great fit for a variety of departments including Produce, Dairy and Deli. The new flavor combinations are: Baby Carrots & Mild Cheddar Cheese with Turkey Sausage Bites & Almonds; Sweet Gala Apples & White Cheddar Cheese, Hard Boiled Egg, Dried Cranberries & Almonds; Sliced Apples, White Cheddar Cheese, Dried Cranberries & Turkey Sausage Bites; Sliced Apples & Mild Cheddar Cheese with Hard Boiled Egg, Dried Cranberries & Cashews. All four products are currently available nationwide.
For More Information From Reichel Foods (402) 933-3801 Greg Wilson, vice president of sales and marketing, greg@reichelfoods.com www.pro2snax.com
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BIG MEATY PIZZA Hunt Brothers Pizza is introducing the Big Meaty pizza for a limited time. With wall-to-wall meats including premium giant pepperoni, naturally smoke-cured salami, slices of spicy ham and Italian sausage, The Big Meaty Pizza brings the premium meat trend to the convenience store industry. Hunt Brothers Pizza is a national brand of made-to-order pizza in the convenience store industry with more than 7,500 locations in 28 states.
For More Information From Hunt Brothers Pizza
STUFFED PRETZELS J&J Snack Foods Corp. has introduced Pretzel Fillers. These stuffed and topped soft pretzels now come in three new and exciting flavors, Sea Salted Caramel, Chipotle Cheddar and Beer Cheese, and are available in the foodservice channel in both 3.5-ounce and 6.25-ounce sizes.
For More Information From J&J Snack Foods Corp. www.jjsnackfoodservice.com
www.huntbrotherspizza.com
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AdvancePierre Foods .............................................49 www.freshcutsandwiches.com
LSI Industries ....................................................21 www.lsi-industries.com/vertex
Apter Industries ......................................................11 800.441.7146 / www.apterindustries.com
MasonWays ...................................................61 800.837.2881 / www.masonways.com
Blu ................................................................31 www.blucigs.com
National Retail Solutions ............................................55 800.215.0931 / www.nrsplus.com
Cash Depot ......................................................54 800.776.8834 / www.cdlatm.com
North American Bancard ................................................60 866.481.4604 / www.nynab.com
CB Distributors ........................................................5 888.824.3256 / www.cbdistributorsinc.com
Phillip Morris USA ....................................................................2
GasBuddy ............................................................27, 41-44 www.business.gasbuddy.com Gulfcoast Software Solutions, Inc. ..............................3 727.449.2296 / www.gulfcoastsoftware.com Home Market Foods ...................................................................7 800.367.8325 / www.homemarketfoods.com Johnsonville ........................................................................51 800.837.5391 / www.cstore.johnsonville.com Kretek International .........................................................9 www.djarumcigar.com KT&G ...............................................................15,17 www.ktngusa.com
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POSA Tech ...............................................................59 888.491.4006 x203 / www.posatech.com R.J. Reynolds ................................................................63 www.vusevapor.com 2018 Southeast Petro-Food Marketing Expo ........................46 www.sepetro.org Subway ........................................................50 203.877.4281 / www.subway.com Swisher International ......................................................64 800.874.9720 / www.kayak-outdoors.com 2018 Tobacco Plus Expo ........................................................47 www.tobaccoplusexpo.com
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INDUSTRYPERSPECTIVES
Looking at 2018 and Beyond From biometrics to augmented reality, technological opportunities are starting to move faster. By Erin Rigik Del Conte, Senior Editor
T
The 7-Eleven store at Lotte World Tower uses the ECHNOLOGY HAS EVOLVED FASTER in the last five years than it has in decades, bringing changes that HandPay system that identifies individuals by the vein patare disrupting major industries, including the c-store tern on the palm of their hand. That pattern identified by the HandPay device is also linked to a pre-assigned credit industry. I recently spoke with Futurist Daniel Burrus to get his card. The method was selected over fingerprint and iris take on some of the biggest technology initiatives to scanning because it was considered more convenient for customers. watch in the coming year and years ahead. According to Burrus, c-store retailers should expect the transition to mobile payment in the short term, with AUGMENTED REALTY Expect augmented reality to become more prevaan eventual move toward biometrics/BioPay to identify people. What’s more, augmented reality opportunities lent in 2018 and beyond. Augmented reality is looking at are expected to increase, as Google glasses launch in the physical, real-world environment whose elements are the next few years and accelerate the demand for aug- "augmented" by computer-generated input. For example, using an app to scan something to gain more informamented reality options. Burrus expects the transition to mobile payment to tion about an item. Another example is Google glasses, begin moving more rapidly. “The (EMV) chip on a credit which are expected to hit the market soon. The latest rendition of the glasses will look just like regucard is kind of like taking a DVD and making it super high definition, just before streaming. In other words, it’s the last lar glasses, Burrus explained, but will have an augmented reality option, such as the ability to connect to a phone hurrah of the physical, tangible credit card,” Burrus said. When it comes to mobile, we’re already using multiple via Bluetooth, allowing wearers to tap into the power of their phone, with the option to turn on and off data. biometrics, depending on the level of security. “We’ve already got the fingerprint on not just the iPhone but on a number of other phones now. We have Apple GETTING READY While we wait for BioPay, mobile pay and augmented coming out with facial recognition, which they claim is reality to arrive, c-stores can prepare now. even better. And they won’t be the only one,” he said. C-stores with apps are already ahead of the game, but Already, we have the ability to use the camera for retinal scans, and to sense identity via cardiac rhythms, with more apps on the market than ever before, retailers should try to make them “sticky,” meaning useful to cuswhich are all unique. As hacking continues to become a larger con- tomers, Burrus advised. For example, an app that allows c-store customers to cern, and social security cards and financial data are repeatedly hacked, Burrus sees biometrics as the confirm ahead of time if the store has the item they desire next frontier. After all, it’s harder to steal people than in stock, and even let them order ahead, can add sticksocial security numbers. Burrus predicts that in the iness. Targeted marketing that allows for personalized near future social security numbers will become so specials as the stores learn what the customer buys is compromised that we stop using them and move to another strategy. Using big data and analytics to determine what gets biometrics. In fact, he expects AmazonGo will eventueach customer into the store and suggesting related ally incorporate biometrics. We’ve already seen experimentation with BioPay in the items is an important thing for c-stores to figure out if they c-store industry. 7-Eleven, for example, partnered with Lotte don’t want to be left behind as the future arrives. If retailers can begin mining big data now to learn Card and Lotte Data Communication earlier this year to launch its first smart convenience store equipped with a about how to target customers in a personalized way, BioPay system at Lotte World Tower in Seoul, South Korea, they will be well positioned to act when augmented reality rolls into town. according to The Korea Herald.
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