Volume 30 • Number 4 • APRIL 2019 Business Solutions for Retail Decision Makers
®
C-Stores
Rally
in Tight Labor Market The 11th Annual CSD/Humetrics HR Benchmarking Survey reveals retention now surpasses recruitment as top labor challenge for c-stores.
INSIDE:
Balancing Wages
Smokeless Far From Snuffed Changes at the Checkout
April Cover.indd 6
34 46 60
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April 2019
Vol. 30 • No. 4
CONTENTS 24 COVER STORY
C-Stores Rally in Tight Labor Market
The 11th Annual CSD/Humetrics HR Benchmarking Survey reveals retention now surpasses recruitment as top labor challenge for c-stores.
EDITOR'S MEMO
OPERATIONS
8 Editor’s Memo: Employees are Your Competitive
64 The Importance of Keeping It Clean
Advantage
FRONT END 10 On Location: Gulf Oil Reimages for the Future 14 CSD’s Quick Bites 16 Industry News
20 HR Awards: Ray Lights the Way for Maverik HR
22 HR Awards: Bolinske Guides Stinker’s HR Strategies
BACK END 68 Product Showcase
72 Quick Stop 73 Ad Index
74 Industry Perspective:
TPE Show Buzzes with CBD Excitement
23 Convenience Store Solutions: Are You Ready for
New Challenges? 34 Balancing Wages
FOODSERVICE 36 Serving Up Lunch & Dinner
36
50
60
64
40 Pushing Your Pizza Offer
44 Finding Space for a Profitable Kitchen
CATEGORY MANAGEMENT 46 Smokeless Far From Snuffed
50 BFY Trend Comes for Cold Dispensed
TECHNOLOGY 54 Chip Card Storm Brews 56 POS Systems Advance
60 Changes at the Checkout 4 Convenience Store Decisions April 2019
04_TOC.indd 4
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THE CSD GROUP
Convenience Store Decisions • Leading Through Innovation • www.cstoredecisions.com Convenience Store Decisions
CStoreDecisions ecisions .com EDITORIAL
CREATIVE SERVICES
DIGITAL MARKETING
VICE PRESIDENT, EDITOR-IN-CHIEF John Lofstock jlofstock@csdecisions.com
VICE PRESIDENT, CREATIVE SERVICES Mark Rook mrook@wtwhmedia.com
DIGITAL MARKETING DIRECTOR Virginia Goulding vgoulding@wtwhmedia.com
EXECUTIVE EDITOR Erin Del Conte edelconte@csdecisions.com
CREATIVE DIRECTOR Erin Canetta ecanetta@csdecisions.com
DIGITAL MARKETING MANAGER Amanda Fourlaris afourlaris@wtwhmedia.com
SENIOR EDITOR Thomas Mulloy tmulloy@csdecisions.com
ART DIRECTOR Matthew Claney mclaney@wtwhmedia.com
WEBINAR MANAGER Lisa Rosen lrosen@wtwhmedia.com
ASSOCIATE EDITOR Isabelle Gustafson igustafson@csdecisions.com ASSOCIATE EDITOR Howard Riell hriell@csdecisions.com ASSOCIATE EDITOR Marilyn Odesser-Torpey mot@csdecisions.com CONTRIBUTING EDITORS Anne Baye Ericksen Pat Pape Brad Perkins Lisa White COLUMNISTS Carlos Acevedo Jim Callahan Ed Collupy Jeremie Myhren Steve Sandman
ADVERTISING VICE PRESIDENT/GROUP PUBLISHER Tom McIntyre tmcintyre@csdecisions.com
(216) 533-9186
PUBLISHER John Petersen jpetersen@csdecisions.com
(216) 346-8790
VICE PRESIDENT, SALES Tony Bolla tbolla@csdecisions.com
(773) 859-1107
REGIONAL SALES MANAGER Ashley Burk aburk@wtwhmedia.com
DIRECTOR, AUDIENCE DEVELOPMENT Bruce Sprague bsprague@wtwhmedia.com
VIDEO SERVICES VIDEOGRAPHER Bradley Voyten bvoyten@wtwhmedia.com VIDEOGRAPHER Derek Little dlittle@wtwhmedia.com VIDEOGRAPHER Graham Smith gsmith@wtwhmedia.com
FINANCE CONTROLLER Brian Korsberg bkorsberg@wtwhmedia.com ACCOUNTS RECEIVABLE SPECIALIST Jamila Milton jmilton@wtwhmedia.com
DIGITAL MEDIA/WEB/ DEVELOPMENT WEB DEVELOPMENT MANAGER B. David Miyares dmiyares@wtwhmedia.com SENIOR DIGITAL MEDIA MANAGER Patrick Curran pcurran@wtwhmedia.com
WEBINAR COORDINATOR Halle Kirsh hkirsh@wtwhmedia.com LEADLIFT ONBOARDING SPECIALIST Mike Ulanski mulanski@wtwhmedia.com
EVENTS EVENTS MANAGER Jen Kolasky jkolasky@wtwhmedia.com EVENT EXHIBITOR & SPEAKER MANAGER Michelle Flando mflando@wtwhmedia.com EVENTS MARKETING SPECIALIST Christina Lograsso clograsso@wtwhmedia.com
PRODUCTION/CUSTOMER SERVICE CUSTOMER SERVICE MANAGER Stephanie Hulett shulett@wtwhmedia.com CUSTOMER SERVICE REPRESENTATIVE Barbra Martin bmartin@csdecisions.com DIGITAL PRODUCTION MANAGER Reggie Hall rhall@wtwhmedia.com DIGITAL PRODUCTION SPECIALIST Brian Furda bfurda@wtwhmedia.com
Convenience Store Decisions is a three-time winner of the Neal Award, the American Business Press’s highest recognition of editorial excellence.
EDITORIAL ADVISORY BOARD Robert Buhler, President and CEO Open Pantry Food Marts • Pleasant Prairie, Wis. Jim Callahan, Director of Marketing (Retired) Geo. H. Green Oil Inc. • Fairburn, Ga. Brad Call, President Colour Du Jour • Salt Lake City Bill Kent, President and CEO The Kent Cos. Inc. • Midland, Texas Greg Lorance, Dispensed Category Manager Cumberland Farms • Framingham, Mass. Billy Milam, President RaceTrac Petroleum Inc. • Atlanta Patrick J. Lewis, Managing Partner Oasis Stop ‘N Go • Twin Falls, Idaho Scott Zaremba, President and CEO Zarco USA • Lawrence, Kan.
NATIONAL ADVISORY GROUP (NAG) BOARD Robert O’Connor, Board Chairman O’Connor Petroleum Co. • Hales Corners, Wis. Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo. Greg Ehrlich, Chief Operating Officer Beck Suppliers Inc. • Freemont, Ohio Doug Galli, Vice President, General Manager Reid Stores Inc./Crosby’s • Brockport, N.Y. Joe Hamza, Chief Operating Officer Nouria Energy Corp • Worcester, Mass. Brent Mouton, President and CEO Hit-n-Run Food Stores • Lafayette, La. Peter Tamburro, General Manager Clifford Fuel Co. • Utica, N.Y.
DIGITAL MEDIA SPECIALIST Nicole Lender nlender@csdecisions.com
Vernon Young, President and CEO Young Oil Co. • Piedmont, Ala.
(737) 615-8452
YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD Bart Stransky, Board Chairman RaceTrac Petroleum Inc. • Atlanta
WTWH MEDIA, LLC 1111 Superior Ave., 26th Floor, Cleveland, OH 44114 Ph: (888) 543-2447 EDITORIAL AND NAG 1420 Queen Anne Rd., Suite 4, Teaneck, NJ 07666 Ph: (201) 321-5642
Garet Bishop, Chief Financial Officer BFS Cos. • Morgantown, W.Va. 2011 - 2018
SUBSCRIPTION INQUIRIES To enter, change or cancel a subscription, please e-mail requests to: bmartin@csdecisions.com or Mail: Convenience Store Decisions, 1111 Superior Ave., 26th Floor, Cleveland, OH 44114 Copyright 2019, WTWH Media, LLC
Convenience Store Decisions (ISSN 1054-7797) is published monthly by WTWH Media, LLC., 1111 Superior Ave., Suite 2600, Cleveland, OH 44114, 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. Periodicals postage paid at Cleveland, OH, and additional mailing offices. POSTMASTER: Send address changes to Convenience Store Decisions, 1111 Superior Avenue, 26th Floor, Cleveland, OH 44114. GST #R126431964, Canadian Publication Sales Agreement No: #40026880. CONVENIENCE STORE DECISIONS does not endorse any products, programs or services of advertisers or editorial contributors. Copyright© 2019 by WTWH Media, LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, or by recording, or by any information storage or retrieval system, without written permission from the publisher. Circulation audited by Business Publications Audit of Circulation, Inc.
6 Convenience Store Decisions April 2019
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Caroline Filchak, Director, Wholesale Ops Clipper Petroleum • Flowery Branch, Ga. Kalen Frese, Food Service Director Warrenton Oil Inc. • Warrenton, Mo. Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas Sharif Jamal, Corporate Training Manager Chestnut Petroleum Inc. • New Paltz, N.Y. Lindsay Lyden, Vice President, Development Truenorth Energy • Brecksville, Ohio Jeremie Myhren, Chief Information Officer Road Ranger • Rockford, Ill.
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EDITOR’S
Memo
Employees are Your Competitive Advantage
For any questions about this issue or suggestions for future issues, please contact me at jlofstock@ csdecisions.com.
T
HE MORE THINGS CHANGE, the more they stay empowered to step up and show the same. the initiative your company needs That is the key message from the 2019 Human to grow. Make it clear that this emResources Benchmarking Survey, the subject of this powerment mentality is the rule, not month’s cover story. The convenience store industry is the exception, in your organization. evolving and expanding, but for the 11th consecutive Team members who have shown a year, staffing issues continue to be the biggest industry- desire and ability to lead need to be nurtured through wide challenge for c-store owners, according to survey consistent communication. respondents. Actively train. Back expectations and empowerment Furthermore, more than half of respondents expe- with training, which takes raw talent and molds it, turnrienced turnover rates of 90% or more, meaning that ing leadership potential into leadership skills. Through while the industry grows, old problems persist. active training, leadership-minded team members will As for the specifics of the staffing challenges, 68% learn important traits required for leadership, such as aucited employee retention as the biggest challenge, fol- thenticity — never asking a co-worker to do something lowed by employee recruiting and selection at 56.8% you wouldn’t do. each. This is the first time in 11 years that retention has Be honest. Encouragement and training should probeen a greater concern than recruiting or selection. duce results. If they don’t, you have to communicate that Convenience Store Decisions has partnered with hu- to your team members. Difficult conversations should man resources expert Mel Kleiman, president of Hu- never come as a surprise, Kleiman said. Your next genermetrics Inc., for more than a decade on this important ation of leaders — and, really, everyone in the company benchmarking survey. He said that while staffing remains — should know where they stand relative to the expectaa challenge, there are steps retailers can take to give tions set. Having that direct, honest communication is a themselves a competitive advantage. major part of building a culture of accountability, which First and foremost is to build a winning corporate cul- is essential to grooming leaders, attracting top employture — and then to use that culture to attract employees. ees and retaining good people long term. Great employees won’t beat a path to your door unless you give them a reason to find you. Store operators must CSD Staff Additions understand that everything they do — from how the cusSpeaking of growing the team, Convenience Store tomer is greeted, to managing accounts payable, to the Decisions is pleased to report the addition of two editors way the restrooms look — melds into a cohesive whole to the team. Tom Mulloy, a veteran media professional that communicates the character of your business to ev- with versatile record of creating, shaping and managing eryone in your sphere of influence. editorial content across multiple media platforms, joins “While most retailers understand how important CSD as senior editor. branding and image are to winning and keeping cusIsabelle Gustafson, a 2016 graduate of the University tomers, many have yet to realize that the same principles of Missouri’s School of Journalism, joins CSD as associate also apply to how an organization attracts and keeps editor. Isabelle gained journalism experience in the editoquality employees,” Kleiman said. “First impressions are rial departments of Vox and Town & Style magazines. lasting, and the fastest, least expensive way to reduce Additionally, Erin Del Conte, who has been with costly employee turnover is to make more favorable first Convenience Store Decisions since 2009, has been impressions.” promoted to executive editor. We all look forward to Here are three things you should keep in mind when being your go-to source for news and information from recruiting and retaining good people: across the convenience store industry. Clearly communicate expectations. If employees don’t clearly understand that leadership qualities are expected within the company, they will never feel
8 Convenience Store Decisions April 2019
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FRONTEND
Profile
Gulf Oil Reimages for the Future Gulf’s iconic orange-disc logo and forecourt graphics get a makeover for 2019. Erin Del Conte, Executive Editor
G
ULF OIL’S GAS CANOPY, GULF Express convenience store banner, car wash and diesel offering are getting facelifts by way of a refreshed logo and modern, eye-catching designs. Wellesley, Mass.-based Gulf Oil announced the reimaging in March and plans to aggressively revamp approximately 700 dealer locations in the Northeast market over the next two years, including its 11 flagship locations on the Massachusetts Turnpike. “Our mission is to distinguish the brand with offers that increase consumer loyalty and drive profitability for our branded marketers. We are confident this contemporary image will create a buzz of excitement in the market and generate incremental business for our customers,” said Sue Hayden, chief marketing officer (CMO) and executive vice president for Gulf Oil. The reimaging includes a refresh of Gulf’s iconic orange-disc logo to include brighter variations of classic Gulf colors, a friendlier typeface and “warm gradient sun imagery.” It also represents a renewed commitment by the brand to a cohesive look and consistent values across its 1,800 forecourts that supply Gulf-branded gas
10 Convenience Store Decisions April 2019
10-13_FE_Gulf.indd 10
and about 300 c-stores that sport the Gulf Express banner. Gulf operates in 36 states with its highest concentration of dealers located in the Northeast. TIME FOR A CHANGE Gulf’s previous image package debuted a little more than 12 years ago. “We’re at the very end of the typical life cycle of a retail image. Both our (retail) customers and consumers are ready for a change,” said Nikki Fales, director of marketing for Gulf Oil. Since Eric Johnson took the helm as president and CEO of Gulf Oil in June 2017 — succeeding former CEO Jerry Ashcroft — Gulf has been focused more heavily on its brand image. In April 2018, Gulf welcomed Hayden, who is responsible for driving overall strategy for branded and unbranded operations in her role as CMO. With renewed focus on the brand, Gulf is ready for a new look as it moves full-steam ahead into its next chapter. “We took a hard look over the past year at how our consumers perceived the brand through different research, focus groups and talking to customers in the industry,” said Fales. cstoredecisions.com
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With its new design, Gulf is incorporating orange throughout its forecourt graphics, as well as a “friendlier” blue hue. The new graphics are rolling out now in the Boston market and are expected to begin a wider rollout in the coming months.
Consumers responded that they preferred a modern, cleaner and fresher-looking brand, and they wanted to know and trust that every Gulf station incorporated the same values, even when operated differently. “People definitely still recognize the iconic Gulf brand and have a lot of love and affinity for the blue and orange. They are looking to see how we evolve with changing times,” said Fales. In response, Gulf is defining itself graphically and ensuring the station experience is consistent between locations. As part of that commitment, Gulf revamped its mystery shopping strategy and partnered with GasBuddy to give branded distributors and dealers new tools for receiving feedback from consumers.
“We’re excited to get the new image out on the street, and there’s also a lot going on behind the scenes to make sure that, as we roll out this image, we’re keeping with what consumers want from us, which is an overall more consistent and reliable experience across all Gulf stations,” said Fales. Gulf is continuing to differentiate with its iconic disc logo, which has been in place for more than 100 years, and its blue-and-orange color scheme, but in a new, fresh way. “We’re flipping it around and owning the orange throughout the entire site. You’ll notice a lot more orange on the canopy and bright bursts of color throughout the forecourt, whereas the image was more prominently blue prior,” she said. “Orange is not common throughout the industry, so it’s a great way to distinguish the brand.” The logo is updated to feature a modern, friendlier blue hue that casts a glow onto the canopy at night, said Fales.
12 Convenience Store Decisions April 2019
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OUR #1 SELLING SNACK ITEM “You now notice this dynamic blue beacon pulling you into the station. The new blue has helped us brighten up the forecourt and provide a more welcoming appearance.” The font on the logo is a little curvier, bigger and bolder for a friendlier look. Gulf began testing the new image at New England locations in early December. It tested a few options including various canopy elements and font types. Although Gulf doesn’t operate company-owned stations, it provides a branded gas offering and c-store banner package for retailers. Gulf is currently working on an image package for the interior of the Gulf Express c-stores. Gulf’s c-store partners have been excited about the changes. C-store retailers won’t have to wait long to incorporate the new graphics. Currently, Gulf is rolling out the image to the Boston market and plans to move toward a full rollout in the next two months. As part of the reimaging, Gulf is updating the graphics for its unbranded car wash and adding a specific image for its diesel island. While the diesel product is remaining the same, it marks the first time Gulf has offered a diesel image package. “Now retailers can ‘brand up’ their diesel island, whereas before it looked the same as the gas canopy. This adds a bit of dimension to the overall station,” said Fales. EVOLVING WITH TECHNOLOGY Gulf is also preparing for tomorrow by staying on the cusp of retail technology, including mobile payment. Gulf introduced a loyalty and mobile payment app called Gulf Pay in July 2017, which presents new payment incentives to customers each quarter. Currently, if c-store customers link a MasterPass account within the Gulf Pay app, they get 20 cents off per gallon on their first three fillups. The app itself also offers regular incentives to inspire customers to use the app, such as five cents off per gallon with an in-store purchase. “Gulf Pay is a huge initiative for us,” said Fales. “It’s been piloted for just a few years now, and we’re already seeing consumers using Gulf Pay an average of 2.7 times a month, which has doubled since we launched the app. That’s also almost double the industry average of customers visiting a gas station brand 1.6 times per brand per month.” Gas customers type their pump number into the Gulf Pay app to authorize the pump. Inside the c-store, customers scan the app’s QR code to pay. Next up, Gulf plans to configure the app to interface with connected cars and the Apple Watch. New this quarter, distributors and dealers will be able to enter their own store offers directly into the app. “We’re looking to provide our customers with tools to ensure a great, consistent experience across all of our stations,” Fales said. “In addition, we’re focusing on Gulf Pay and how we can continue to evolve and provide more services for the consumer, and really just make the consumer’s life a little bit easier every time.”
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QuickBites HERE COMES GENERATION Z
CONSUMERS LIVING, SPENDING FOR TODAY
— AND THEY’RE HUNGRY!
GEN Z: • Made 14.6 billion restaurant visits in 2018 • Represent 10% of total foodservice traffic
• Made 552 million foodservice delivery orders in 2018 Source: The NPD Group
One-fourth of American consumers are choosing to pay for convenience versus putting money in savings.
Sweet Outlook for Cookie Market • A demand for indulgence spurred the U.S. packaged cookie market to total retail dollar sales of $11 billon in 2018.
Two in five consumers would opt to spend four times as much on transportation to save 20 minutes.
• The market increased at a compound annual growth rate (CAGR) of 2% between 2013 and 2018. • Retail dollar sales of the packaged cookies market are expected to exceed $12 billion in 2023, increasing by a CAGR of more than 2% from 2018.
One in three consumers (and 43% of millennials) would choose to take $1,000 now rather than waiting a year for $3,000.
Source: Packaged Facts, “U.S. Food Market Outlook 2019.”
88% of Americans are concerned about another economic downturn. 83% of those impacted by the Great Recession are still recovering. Source: PurePoint Financial’s second “State of Savings in America” survey.
Bottled Juice Sales Dip Dollar Sales
Unit Sales
Coffee Category Gets a Jolt
Current
1-Year % Change
Current
1-Year % Change
$1.6 B
-2.10%
922.5 M
-3.90%
SS Bottled Fruit Drinks
$716.8 M
-2.00%
480.7 M
-3.70%
(+1.8% for 12-weeks; +1.8% for 52-weeks).
SS Bottled Lemonade
$177.0 M
-2.10%
126.7 M
-5.20%
SS Bottled Orange Juice
$158.0 M
-7.30%
78.6 M
-7.30%
• Ground coffee category dollar sales growth (including pods/K-cups) was up 0.9%
SS Bottled Apple Juice
$164.1 M
3.70%
77.9 M
-1.80%
SS Bottled Cranberry Cocktail/ Juice Drink
$146.0 M
3.70%
72.6 M
-4.30%
SS Bottled Fruit Juice Blend
$67.2 M
Bottled Juice Single-Serve (SS)
(+0.2% for 12-weeks; +0.7% for 52-weeks).
• Liquid ready-to-drink coffee dollar sales growth was still strong, up 7.1% (vs. +9.8% for 12-weeks; +6.4% for 52-weeks).
26.0%
$26.1 M
Source: IRI Total U.S. Convenience Store Channel data for the 52 weeks ending Dec. 30, 2018.
14 Convenience Store Decisions April 2019
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• In the four weeks ending Feb. 23, 2019, dollar sales for the total coffee category were up 2.1%
21.0%
Source: Nielsen All Channel Coffee & Tea Data ending Feb. 23, 2019 as reported by Wells Fargo Securities.
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INDUSTRY
News
Enmarket Debuts Large C-Store with Drive-Through Window Enmarket has built its largest cstore yet — a new 6,366-square-foot store in Pooler, Ga. The new c-store features a proprietary restaurant, touchless restrooms, exposed ceilings and outdoor seating.
“This is the largest Enmarket we’ve built from the ground up,” said Brett Giesick, president of Enmarket, which has 124 c-stores in three states. “We’re excited to announce this new location and believe it serves as a fine example of our dedication to providing customers with quality service and food.”
PFG Acquiring Eby-Brown Performance Food Group (PFG) is acquiring Chicago-based c-store distributor Eby-Brown Co. Eby-Brown presidents and management will continue to run the company. The acquisition will allow PFG’s Vistar segment to expand in the c-store channel where significant overlap exists with suppliers and product categories, as well as opportunities to use PFG brands for unique solutions in the prepared/ made-to-order foodservice market. Combined, Vistar and Eby-Brown will service more than 75,000 locations. Vistar would be No. 1 in locations served and No. 2 in overall non-tobacco convenience volume. The acquisition is set to close in Q2 of 2019. 16 Convenience Store Decisions April 2019
16_IndusytryNews.indd 16
“We believe this acquisition will better position us to serve existing and new customers, and we’re excited about the innovative possibilities that we will be able to provide to our customers as a part of PFG,” said Eby-Brown Co-President Dick Wake.
Casey’s Acquires Fantasy’s Convenience Stores Casey’s General Stores Inc. has acquired the Fantasy’s convenience stores and Ride the Wave car washes located in the Omaha, Neb., metro area. Casey’s plans to perform significant remodels at all nine locations to enable the stores to offer pizza, doughuts, made-to-order sub sandwiches and other freshly-prepared food items. Casey’s plans to leave the popular touchless tunnel washes in place and continue to use the Ride the Wave car wash brand.
San Francisco Officials Propose E-Cig Ban New legislation would ban the sale of e-cigarettes in San Francisco until the U.S. Food and Drug Administration (FDA) evaluates the effect of electronic cigarettes on public health. If approved, it would be the first e-cigarette ban in the U.S. San Francisco was the first U.S. city to approve a ban on the sale of flavored tobacco and flavored vaping liquids, which voters upheld in 2018. City Attorney Dennis Herrera and Supervisor Shamann Walton also proposed a bill that would prohibit ecigarette companies from occupying city-owned property. It wouldn’t apply retroactively, so e-cig manufacturer Juul would be allowed to remain in its headquarters in San Francisco, but e-
cigarette companies would be banned from leasing city property in the future.
Maryland Expected to Adopt $15 Minimum Wage The Maryland General Assembly approved legislation increasing the state’s minimum wage to $15 per hour by Jan. 1, 2028. Companies with fewer than 14 employees will need to adapt sooner — by Jan. 1, 2026, according to WageHourBlog.com. At presstime the bill was headed to Maryland Governor Larry Hogan to be signed into law. The Baltimore Sun has reported that Hogan previously expressed concern about the consequences of increasing Maryland’s minimum wage to $15 per hour. Even if he were to veto the bill, a veto override is expected. Maryland would follow a small number of states to pass bills increasing the minimum wage to $15 an hour within the next few years: California will reach $15 an hour in 2022, Massachusetts in 2023, New Jersey in 2024 and Illinois in 2025.
EPA Proposes E15 Sale Year-Round The U.S. Environmental Protection Agency (EPA) proposed allowing the sale of E15 year-round. Gasoline blended with up to 15% ethanol (E15) would fall under the 1-psi Reid Vapor Pressure (RVP) waiver that previously only applied to E10. This would allow the sale of E15 year-round, without additional RVP control. The current limitation on E15 restricts sales between June 1 and Sept. 15. These changes are consistent with President Trump’s direction, which he gave the EPA on Oct. 11. cstoredecisions.com
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BURNING ISSUE 1
Local Lobbying: Why your voice matters more than ever. Whether it's increasing tobacco taxes, rising minimum wages, fuel regulations or credit card fees, convenience store owners need to make their voices heard on the important issues integral to store sales. Lobbying is an essential part of our democratic system and can help bring about change. This session will delve into how convenience store owners can make their voices be heard with lawmakers at the local and state levels to influence change that is good for business. Moderator: Tom Briant, Executive Director, National Association of Tobacco Outlets (NATO)
BURNING ISSUE 2
How Cashier-less Sites Will Impact the Convenience Store Industry. Amazon and other cashier-less concepts are no longer a novelty. They are fast becoming destinations in markets such as San Francisco, Seattle and Chicago, and they are challenging conventional convenience stores in the race for time-pressed customers. Beyond retail competition, the concept is also changing consumer behavior to expect a frictionless experience. While some municipalities are passing laws to require stores to accept cash, convenience store owners must develop a strategy to compete with this emerging trend.
BURNING ISSUE 3
Equipped for Foodservice Success: How to execute a successful foodservice strategy in small spaces. Space limitations used to be the bane of convenience store operators who wanted a professional foodservice program. But now manufacturers are stepping up to the plate with equipment that serves multiple purposes and still fits nicely within the c-store footprint. Choosing the right equipment can often be an overwhelming task given the range of options available, so retailers must also focus on cost, machine life, maintenance and ROI considerations.
BURNING ISSUE 4
Developing Your Digital Strategy: How artiďŹ cial intelligence is impacting retail. The hype around artificial intelligence (AI) has never been higher and one industry where it has a chance to make a major impact on profits is retail. From interpreting data to predicting sales needs, artificial intelligence is redefining retail. This panel will discuss how a digital strategy ties into all aspects of the store including loyalty, the back-office and the POS system. It will also discuss how retailers can use AI to engage customers through communication and experiences, better manage inventory and price products optimally. Moderator: Paul Roetzer, Founder and CEO, The Marketing Artificial Intelligence Institute
BURNING ISSUE 5
The Importance of Family Values in the Convenience Store Industry. Family-owned small businesses are the backbone of our economy. They provide 55% of all jobs in the U.S. and 54% of U.S. sales, according to the Small Business Administration. Strong family values can prove extremely productive in business and this is evident in the convenience store and petroleum industries. Family businesses have left an indelible impression on convenience store chains across the country by providing outstanding leadership, innovation and stability in the communities they serve. In this session, we will hear how three unique chains have made their mark on the convenience store industry. Moderator: John Lofstock, Executive Director, NAG Speakers: Margaret Dinneny, Chief People Officer, Wawa
BURNING ISSUE 6
Merchandising and Marketing for Success: What are your customers looking for? From foodservice to the cold vault, customers see c-stores as a destination, but how closely do you track where they go once they enter your store? New technology, such as heat maps integrated with high-resolution cameras, allow retailers to see where customers are going, what they are looking at and how much time they spend in each area of the store. This data can help c-stores design integrated merchandising plans to drive sales. Moderator: John Matthews, President and CEO, Gray Cat Enterprises Speakers: Kyle Schrader, Schrader Oil
YEO BREAKOUT SESSION
How Millennial Insights Can Connect Your Brand with Customers Speaker: Linda McKenna, Managing Partner, EPS Inc.
OPERATIONS BOOT CAMP:
Best practices and a conference wrap up with John Lofstock, Executive Director, NAG, and Brian Unrue, Vice President of Operations, Clark's Pump N Shop.
* Speakers confirmed through March 25.
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3/27/19 11:21 AM
HYATT REGENCY — Minneapolis
September 8-11, 2019 NAG 2019 BREAKOUT SESSIONS
1) New and Emerging Fuels. Shell's push into hydrogen and electric vehicles, plus the push to expand E-15/ethanol sales, could change the retail landscape on fuel. Moderator: Bob O'Connor, President, Jetz Convenience Centers
4) Foodservice: Forecasting demand. Leading convenience store chains avoid waste to stay more profitable. Hear how the experts learn to predict foodservice demand.
2) HR: There's an app for that. From scheduling to communicating with employees, there's an app to maintain constant contact with your employees and your customers. Learn how c-store chains are using technology to navigate rising wages and win the best store talent.
5) How is Industry Consolidation Changing the C-Store Industry? Change is inevitable. Should you be buying stores? Is selling the right thing to do for your family businesses? How is vendor consolidation affecting costs? This breakout session will help c-stores get answers to these tough questions.
3) The Future of CBD and Vape. What the future holds for this growing category and how FDA regulations can impact sales. Moderator: Tom Briant, Executive Director, National Association of Tobacco Outlets (NATO)
6) LEED CertiďŹ cation and Embracing the Green Movement. Your customers, especially Millennials, want your brand to stand for something in order to gain their business. LEED Certification and marketing local products help earn their business.
Join us in
SEPTEMBER!
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3/27/19 11:00 AM
Human Resources AWARDS
Ray Lights the Way for Maverik HR Maverik’s training culture evolves as the chain strengthens employee-manager relationships to aid retention. Marilyn Odesser-Torpey, Associate Editor
A
s Maverik Inc.’s human resources director for 14 when it comes to increasing employee retention and reyears running, Ashley Ray has created a strong em- ducing turnover. In 2017, the turnover rate at Maverik was ployee-oriented culture by improving employee re- 134%, not an astoundingly high number in the c-store intention, performance management and training. She’s also dustry, but also not ideal. In 2018, turnover decreased to focused on new employee orientation, certifications and 130%. The big change came at the end of 2018 and into this year, when the turnover rate plummeted to 101% as increasing awareness and understanding around benefits. Convenience Store Decisions is recognizing Ray as part the result of pay, training and store management initiatives. of our annual Human Resources (HR) awards for her effort in building an employee-oriented culture as well as her VALUING EMPLOYEES Last year, Maverik implemented a new pay structure that commitment to reducing turnover, improving employeemanager relationships and her initiatives in proactive pro- upped its minimum pay to $10.25 per hour for all hourly store employees, which meant employees received an incedures at the Salt Lake City-based chain. crease of between $2-$4 per hour, depending on their previous rate. The company invested $3 million in this pay boost. GETTING STARTED A new Team Climb Bonus based on set goals provides When Ashley Ray was working on her degree in communications with an emphasis in public relations at Weber incentives to keep fuel and inside sales growing. EmployState University in Utah, a career in HR was not even on ees also get a pay raise for performance on their anniverher radar. It was a job as an office manager for a small lo- saries, if they hit their goals. This year, Ray is also focusing on strengthening the recal company while she was in school that led to her taking on some human relations functions and discovering she lationships between managers and their store staff by proenjoyed the challenges that came with the position as the viding extra training on how to lead more effectively and giving them the tools they need to carry out their roles. company grew. “We have found through exit interviews that people don’t After college, Ray took a job in marketing, and while she liked the creative aspects of the job, she missed the inter- usually leave companies, they leave managers,” she said. The employee-manager relationship at Maverik now beaction with people that human relations provided. When she saw an entry level opening for a benefits coordinator gins with new-hire training. Ray said the company wants with Maverik convenience stores, she immediately applied. to “change the culture around training” by not putting Within a year, she moved up into the HR manager posi- new-hires in front of computers to literally train themselves. tion, and five years ago she took on the role of HR director. Training for the “adventure guides” — as Maverik’s calls Now, she’s spearheading labor management projects that its store employees — is now more hands-on and includes more interaction with their supervisors. Even with 5,600 will position the chain for the future. “It’s important for us to take care of our employees,” employees spanning the company’s wide-ranging market, said Ray. “They keep us moving and growing; they keep it is important each one has the same close connection and experience with the company as stores down the us in business.” With 360 stores in 10 states, remaining up to date and street from the company’s headquarters, she said. “Our goals revolve around creating an employee value compliant with all state and federal laws and guidelines is proposition, and that they understand how much they another big part of the job at Maverik. Over the past 18 months, Ray has prioritized creating mean to this company,” said Ray. “Concentrating on makproactive processes and procedures, rather than reactive ing all of our employees feel valued has been a real gameones that consist of simply putting out fires, particularly changer for us.” 20 Convenience Store Decisions April 2019
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cstoredecisions.com
3/24/19 9:37 AM
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Human Resources AWARDS
Bolinske Guides Stinker’s HR Strategies At Stinker Stores, Sandy Bolinske believes in developing employees while growing morale and competitive advantage. Pat Pape, Contributing Editor
A
s director of human resources for Boise, Idaho- closely with owners Charley and Nancy Jones to develop based Stinker Stores, Sandy Bolinske is always on strategic direction for the organization. “My job is to make things better, whether I am workthe hunt for new ways to push the chain’s human resources (HR) practices to the next level. In her position, ing on developing training content, recruiting talent, reBolinske oversees recruitment, compensation, training, viewing new HR technology or discovering something that policy administration, benefits, employee relations, culture could be unique to Stinker,” she said. “My team and I are always working to take Stinker to the next level.” and compliance. Convenience Store Decisions is recognizing Bolinske with an HR award for her 21 years of professional experi- NAVIGATING NEW TERRAIN HR departments face many challenges in today’s busience in HR, including six years at Stinker Stores, and for her ness climate, but recruiting and retaining talent are the commitment to valuing and developing employees. In addition to 105 c-stores, Stinker includes a ware- most difficult, said Bolinske. “With low nationwide unemployment, every company is house division and a fuel transportation company. When combined with administration support, Stinker has 920- fighting for the top tier of applicable candidates,” she said. plus employees. Bolinske manages HR with the aid of four “Attracting talent is a huge investment of time and money. specialists who assist her as she interacts with management Setting yourself apart from the competition requires a lot and employees, keeps her finger on the company’s pulse of creativity around branding who you are, what you do and how a job within a c-store can be a rewarding career.” and endeavors to make Stinker an “Employer of Choice.” When new employees come on board, they receive New Employee Training (NET) within their first 30 days of emTHE ROAD TO HR Bolinske didn’t plan on being an HR professional. As a ployment. NET covers both company and store procedures young adult, she worked in the research and development and policies, along with culture, safety and compliance. Stinker created a career-development training program department of a vegetable seed company, helping geneticentered around business, communication, change mancists develop new seed varieties. “I was young and outspoken,” said Bolinske. “I became agement, quality, interviewing and generational differences. an advocate for employees — some of whom didn’t speak “The courses are two to three hours long and available to English — about what they wanted regarding benefits, rec- employees who want to gain a better understanding of how ognition and compensation. I often approached manage- theories and principles can apply to everyday situations,” ment to share my thoughts on how we could become a said Bolinske. Although the courses aren’t mandatory, they provide an avenue for personal and professional growth. company that valued employees.” “Any time you invest in your employees, you increase When a position opened in HR, the chief financial officer asked if she wanted to transfer. “Sandy, you’re a natural at morale, employee satisfaction, competitive advantage and open up a platform for innovation in strategies and dealing with people issues,” he told her. “I took a leap of faith, and here I am in a field that allows products,” said Bolinske. HR professionals play an integral part of the success of me to make a difference for employees in the workplace, while having a unique viewpoint on the overall strategy of any company. “Our profession is the only one that truly impacts people. Hiring someone and seeing them grow themthe business,” said Bolinske. After spending her entire career in large, publicly-traded selves in the organization is the ultimate reward,” she said. Bolinske said she’s enjoyed her HR career and describes companies, Bolinske was attracted to the opportunities at Stinker, a privately-held family business. Today, she works it as “a great ride.” 22 Convenience Store Decisions April 2019
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cstoredecisions.com
3/24/19 9:38 AM
CONVENIENCE STORE SOLUTIONS
Are You Ready for
New Challenges? When times are good, never forget that the business climate can change in an instant. Jim Callahan, Contributing Editor
I
T MAY SOUND EASY, BUT being prepared for any challenge that may come your way is crucial to business success. More than 20 years ago, I opened a presentation to a group of independent convenience store operators with this simple three-word question: “Are you ready?” My intention was to make them aware that competition and emerging business threats were threatening their survival and putting their livelihood at risk. Unfortunately, in retrospect, many did not listen close enough or heed my advice. The question before us now is: “Will you listen and react to the changing market around you?” The warning is simple — good times in the c-store industry don’t last forever. You see, good times bring complacency, and with them a feeling of euphoria that makes one feel like the good times will never end. Take a minute to look around you, and you will notice that the housing industry and the building industry that accompanies it are pretty hot right now and have been for some time. New retail businesses are sprouting up all over, and I don’t have to remind you that the highways and byways are overrun with tractor trailers delivering new cars, building supplies and other retail merchandise to market. While the c-store industry helped create this demand and will benefit greatly from increased sales and a host of new customers, we can’t afford to pat ourselves on the back. The complacency virus tends to infect us when we discover success and perhaps drink a little too much from that intoxicating punch bowl, believing the good feelings will last forever. In truth, we would be much better off if we were to focus on the other end of the equation and act as if bad times lie just ahead. In other words, remember to use some common sense. cstoredecisions.com
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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 email at jfcallahan1160@ gmail.com.
PREPARATION PLAN The hardest part of staying prepared is putting together a comprehensive plan. This first and foremost means putting money away for that day when business falls off a bit. It also means having a strategy for when QuikTrip, RaceTrac, Sheetz or another outstanding competitor buys the lot that directly competes with your best store. I can tell you without exaggeration that within six months of my meeting with independent c-store owners, QuikTrip went on a building binge. Just a few years later, RaceTrac did the same. Marketers that failed to plan paid a steep price. New competition means new buildings, fresh deli programs, new restrooms, new fuel dispensers, enhanced landscaping, etc. Customers might forgive you if you don’t have a brand new, state-of-the-art store design or new fuel dispensers, if your store is friendly, has fresh paint and offers good service. They will also forgive you if your deli doesn’t quite match up, if food quality is good and your facility is very clean. The same holds for restrooms — on which we must place a renewed emphasis. You can bet customers judge whether or not they will buy food at a c-store based on overall cleanliness, and restrooms are one of the first places they look. You may have also noticed top quartile c-store chains no longer find it necessary to beat, or in some cases even meet, local competitors’ fuel prices. Leading chains also understand the need to do a superior job with things like windshield management, tire air and vacuums. Fact is, these services drive customer traffic. As convenience store operators, you are hard-working and dedicated marketers. Find the wisdom in the words, and always make sure you’re ready for the challenges that lie ahead. April 2019 Convenience Store Decisions 23
3/26/19 6:32 PM
R E N W O I O P INNOV T
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4/10/19 9:28 AM
Join the conversation:
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Cover Story
2019 Human Resources Study
C-Stores Rally in Tight
Labor Market
The 11th Annual CSD/Humetrics HR Benchmarking Survey reveals retention now surpasses recruitment as top labor challenge for c-stores. Mel Kleiman, President, Humetrics and Erin Del Conte, Executive Editor
C
onvenience Store Decisions and Humetrics recently collaborated on our 11th annual Human Resources Benchmarking Survey. The results reported here are based on the respondents’ recent experiences and expectations and provide industry-wide insights on human resources (HR) trends in the convenience store industry as well as useful benchmarks. A few interesting findings include: • As has been the case every year since 2009, staffing issues continue to be the biggest industry-wide challenge by a wide margin, followed by “the competition” and government regulations. • More than half of respondents experienced turnover rates of 90% or more, while 76% reported 50% or more. Since the low estimate of the cost to replace a $10-per-hour employee is just over $3,000, the time and money spent coping with turnover is an inestimable drain on profitability. • We asked several new questions this year, one of which was: “In 2018, approximately what percentage of the people you made offers to either did not take the job or accepted the position, but did not show up?” Just over half of respondents experienced applicants refusing a job offer and new hires not showing up for work as promised. 24 Convenience Store Decisions April 2019
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cstoredecisions.com
3/27/19 8:11 AM
What do you think are the two or three biggest challenges your organization will face in 2019?
100 91%
80 60 47%
40
33%
7%
7% Vendor Relations
Marketing
Technology Challenges
Fuel Costs
Government Regulations
The Competition
0
Staffing
16% 16%
Succession Plan
26%
20
DEMOGRAPHICS This year’s survey asked 39 questions — several about general business conditions and demographics, but the majority about human resource issues. Responses were collected from mid-January to March 1. Respondents’ employers ranged in size from 25 or fewer employees (27%) with less than $1 million in annual revenues (2.3%) to more than 500 employees (20.5%) and more than $100 million in annual revenues (22.7%). Most respondents (54%) fell in the 101 to more than 500 employee range, while 61.3% reported revenues between $1 million and $50 million. When we look at the respondents by job title, about 50% were corporate HR personnel; another 25% were “corporate other,” while store managers accounted for the remaining 25%.
STAFFING CHALLENGES As for the specifics of the staffing challenges, 68% cited employee retention as the biggest challenge, followed by employee recruiting and selection at 56.8% each. This is the first time in 11 years that retention has been a greater concern than recruiting or selection. CSD spoke with several c-store operators to see how their experiences matched the survey findings. One of the biggest HR challenges for small to midsized c-store chains in 2019 is competing against bigger chains offering “tremendous benefits,” including learning and development opportunities via their corporate structures and otherwise “sweetening the value proposition for employees” in ways that elude small to mid-sized operators financially, Chris McKinney, director of HR for Ridgeland, Miss.-based Sprint Mart told CSD. Sprint Mart cstoredecisions.com
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operates 90 c-stores in Mississippi, Alabama and Louisiana. Kurt Weigel, director of recruiting for Weigel’s Stores Inc., which operates 65 c-stores in east Tennessee, agreed, pointing to fast-food and big-box retailers that are raising the bar in terms of pay. “We just can’t justify paying these higher wages at this time. Unemployment continues to be very low, and we are having a hard time finding hourly workers,” Weigel said. Sprint Mart has no difficulty attracting interest for open positions. Its internet postings draw significant interest, but other retailers are also capturing applicants in large numbers. “Very rarely is anyone just applying to your company,” McKinney said. “They are applying all over and evaluating the nuances between what they get at this place versus what they get over here.” The result can be hiring an employee who leaves for a better opportunity after a week, or fails to show up at all because of a better offer. When survey respondents were asked, “In 2018, approximately what percentage of hourly employee separations were voluntary quits?” the average was 60%. When asked what percentage of those quits actually gave notice, the average was 43%. The responses to the question in the title of the chart below were somewhat surprising in light of the employee turnover rates already cited. On a scale of 1-5 where 5 is highest/best, how would you rate the effectiveness of your organization in each of these three areas:
50% 40% 30% 20% 10% 0%
Unsatisfactory
Hourly Employee Recruiting
Below Avg.
Average
Above Avg.
Hourly Employee Selection
Excellent
Hourly Employee Retention
April 2019 Convenience Store Decisions 25
3/24/19 9:40 AM
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Cover Story
2019 Human Resources Study
Some interesting observations respondents shared about all these challenges include: • More concerned about how to stop the decline in customer counts, which we are seeing across our industry. • We see a higher percentage (of applicants), but many do not show up for the interview; many more than accepting the offer and not showing up. • Our wages against other c-stores are comparable, but not compared to companies like Amazon, Target and Walmart at — or on their way to — $15 per hour, so it’s hard to attract candidates. At those companies you can work less in terms of day-to-day responsibilities and receive more pay. • Desperation and the “I need an employee right now” mindset, so we have enough employees to run the store, gets in the way of being patient. • We are in a rural area. Retaining employees isn’t generally a problem for us. Getting people to apply and then selecting from the poor pool of candidates is the issue. Once we make a decision to hire, they generally stay for a longer period of time.
RECRUITING PRACTICES When asked about the relative effectiveness of available recruiting tools, ranked from most to least effective, they are: internet job boards, social media, referrals, in-store/ outdoor signage, company website, re-recruiting former employees, job fairs, local newspapers and Craigslist. Here’s a snapshot of how internet job boards and social media have taken over as the top two over the past three years:
2017
2018
1. In-store ads/outdoor signage
1. In-store ads/outdoor signage
2019 1. Internet job boards
2. Employee referrals
2. Internet job boards
2. Social media
3. Internet job boards
3. Employee referral
3. Employee referral
4. Craigslist
4. Social media
4. In-store ads/outdoor signage
5. Company website
5. Company website and rehiring former employees
5. Company website
9%
Those with criminal records
41%
Older Workers
The chart to the left shows the industry is in sync with the 20% economy at large in actively People with disabilities recruiting from traditionally overlooked groups — especially older workers. To appeal to younger 30% Veterans workers as well, many respondents are relaxing rules about tattoos (74%), offering flexible scheduling
26 Convenience Store Decisions April 2019
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As other competing channels boost their wages in the direction of $15 per hour, some c-stores are struggling to attract candidates and are finding new ways to sweeten the deal for employees.
(72%), relaxing piercing rules (67%) and hair color rules (54%), communicating with employees through mobile apps (51%) and using digital scheduling programs (38%). Casey’s General Stores is using tools and resources that Gen Z finds attractive. For example, the chain posts available positions on Indeed.com, which job seekers can also access using Indeed’s mobile app. “We are partnering with our internal social media team to gain presence on attracting candidates through those routes, including a Careers Instagram account and via Facebook and LinkedIn,” said Cindi Summers, senior vice president of HR at Ankeny, Iowa-based Casey’s, which operates more than 2,000 stores in the Midwest. Casey’s highlights its social responsibility opportunities, which Gen Z finds attractive, including volunteer projects. “We are actively involved in the Business and Education Alliance through the Iowa Business Council to help connect scholastic and business stakeholders to keep our students in Iowa, grow our population and diversity, and increase valuable connections that may drive this (internships, externships, job events) in K-12 education, as well as colleges,” Summers said. Casey’s has also implemented more casual dress opportunities at store level, including T-shirts employees can cstoredecisions.com
3/24/19 9:40 AM
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3/21/19 3:30 PM
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Cover Story
2019 Human Resources Study
Tips 10 for Attracting
‘STAR’ Employees Recruiting STAR employees can help take your c-store business to the next level. STAR stands for SelfMotivated, Trainable, Accountable and Responsible. Follow these tips from Humetrics to attract them:
1
Develop your Unique Employment Proposition (UEP). Why would a STAR employee want to work for your organization?
2
Make a list before shopping for STAR employees, and include capacities (physical and mental); attitudes (responsible and self-motivated); personality (funny or serious, extrovert or shy); and any required skills. Remember, it’s smarter to hire for attitudes and train for skills.
3
Seek STARs even when you don’t need them. If you only recruit when you have a need, anyone with a pulse and reliable transportation will look good.
4
Don’t recruit only from the pool of people looking for jobs. Go after people who are working and looking for better jobs.
5
Make your jobs easy to apply for, but, more importantly, make them hard to get.
6
Act quickly, and make potential employees feel important.
7
Let only your A-players conduct interviews, and train them in best practice interview techniques.
8
Remember everything you do in the hiring process is a test, and testing is one of the most reliable predictors of success.
9
Make the winners feel like winners.
10
Tell them why you want to hire them and the ground rules. It’s up to you to create a culture of accountability. Let them know why you would fire them, too.
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win through its recognition campaign and other events; for example, wearing jerseys the week of the Super Bowl and 50th Anniversary T-shirts provided to all employees last summer. At the corporate headquarters, Casey’s recently implemented a ‘dress for your day’ policy, including jeans on Fridays with a monetary or in-kind donation to a local charity the chain sponsors each month. Sprint Mart is also evaluating dress code guidelines to find the ideal line between matching the needs of the business, while also allowing younger generations to have the freedom of expression in their appearance that they crave. C-stores are also looking at ways to make scheduling more convenient for employees. Sprint Mart installed an electronic scheduling system that “went into high gear last summer,” which workers can view through an employee self-service app. The move increases scheduling transparency and allows employees to swap, give away or indicate their availability and preferences. “All these are things the younger generation is used to in their consumer lives, and expects now from their careers too,” McKinney said. Employees now get their schedule 10 days in advance of the schedule going live. “So they can plan their lives and make necessary arrangements. We are committed to giving them that kind of intangible perk here in a way that I know others don’t. We see that as an affordable way to compete.” ‘Work schedule’ used to be the No. 2 reason people quit, but since implementing the electronic scheduling system, it has all but disappeared from Sprint Mart exit surveys as a reason why employees voluntarily leave. “At store level and in our distribution centers, we have a scheduling tool that is connected to our HCM system, which allows an employee to see their scheduling via the app as well,” Summers said. The chain also recently deployed iPads in all stores to aid employee training. “We are working on shift-swap components as well.” Casey’s is also implementing a regional talent acquisition model, placing a specialist in each region dedicated to helping managers attract and retain talent based on the needs in that specific geographic location. “We use Paylocity and are trying to get our managers to start using it at least 1-2 weeks in advance to help cashiers and foodservice employees know their schedules in advance,” said Weigel. “We are also looking at text message options and allow them to trade shifts if needed to help reduce call outs.” Here are some of the other creative recruiting strategies respondents mentioned: cstoredecisions.com
3/24/19 9:41 AM
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Cover Story
2019 Human Resources Study
• Programmatic job search, which allows for targeting and placement on multiple job boards and Google pay-per-click display ads. • Open-candidate pools between stores. • Sign-on bonus, recruiting bonus, tuition reimbursement program. • $12 to start, insurance and 401K benefits after 60 days. • Part-time health benefits, of which the company pays a portion, and more generous paid time off. • Less strict uniform: T-shirts and jeans. • Pay is above minimum wage. Tips are allowed. • Paid vacation starting the first year. • Looking for applicants with other jobs not related to our industry. • Contacting local high school graduating classes and higher education facilities counselors for candidates. Especially successful at the Junior College level. Fifty-one percent of respondents have an employee referral reward program in place, and the other 49% do not.
EMPLOYEE SCREENING & SELECTION Seventy percent of those responding report that all those conducting interviews have been trained in bestpractice interview techniques, but only 59% use a standard interview question set, which is one of the most effective best practice techniques.
SCREENING TOOL IN USE 69%
Criminal background check
59%
Structured interview
54%
Telephone pre-screening call
38%
Drug testing
28%
Attitude testing
26%
Personality testing
18%
Credit check
15%
Skills testing Physical capacity testing 8% IQ testing 5% 0%
10%
20% 30% 40% 50%
60% 70% 80%
0
10 20 30 40 50 60 70 80
We can’t help but wonder why so few organizations are testing for attitudes when it is the best predictor of success on the job. In addition to the tools listed in the survey, many are also checking the applicant’s social media posts. 30 Convenience Store Decisions April 2019
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EMPLOYEE RETENTION Seventy-three percent conduct performance reviews most often after three or six months, and annually thereafter.
When are new hires eligible for their first raise? 50 43%
40 30
24%
20
17% 12%
10 0
5% 1 month 3 months 6 months
1 year
Other
The 16.67% “Other” category in the chart above includes: • All associates eligible for a salary increase every six months as long as they are performing and not above the max of the range end review. • Depends on performance. • Annually in January. • Do not have a set time frame. • Yearly and if they are deemed going above and beyond on a consistent basis. Also, if they move into a different position or a position of greater responsibility. • No specific timeline, just when their manager requests it. • Usually around six weeks, then six months and yearly after that. • Engagement surveys and associated action planning. Have introduced associate discounts, updated break policy and piloting an associate communication app during the last 12 months. When asked what their organizations are doing to improve employee retention, responses included training, leadership track, incentives, training raises, tuition reimbursement, lowering the cost of benefits, standardized interview guide, interview/screen improvements, employee activities, exit and stay interviews, engagement initiatives; scheduling employees in four 10-hour days to allow three days off, creating a culture of listening, caring and transparency, and “whatever it takes” to keep employees happy. Training was a frequent response to the preceding question. About 45% said they’re increasing their spending on
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Cover Story
2019 Human Resources Study
training, and all others will spend about the same as they did last year. When it comes to how training is delivered: Hands on, in-store training by manager or peer
97%
Online eLearning
48%
Live classes led by a professional trainer
34%
Webinars
30%
Which of the following hourly employee hiring and retention tools do you use now, and which do you plan to add in 2019? Pre-shift huddles
43%
Retention interviews
57%
37%
(“Stay Conversations”)
67%
30%
Formalized employee recognition program
70%
21%
Informal employee recognition program Standardized onboarding/ orientation program
16%
Standardized recruiting ads and signage
14%
78% 85%
The “Other” write-in responses included “Changing,” “All of the above,” “Above and beyond” and “Cold, not trusting, sterile” — which doesn’t bode well for that organization. The reasons great employees should stay with the responding organization included: Great boss and coworkers (47%), flexible schedules (43%), opportunities for advancement (52%), family-friendly (34%), respect and recognition (31%), benefits (22%) and best pay (13%). Sprint Mart is automating HR practices and using data to determine key retention thresholds. “We are designing financial incentives to be strategically placed at those moments, where if someone stays X number of months, the chances that they’re going to stay another X number of months increases,” McKinney said. “I do think c-store operators need to take a cold, hard look at increased wages,” he added. “For us, more effective scheduling and management of labor was the first step to having that dialogue. But I also think, it is not anywhere close to a silver bullet that will solve turnover problems.” McKinney noted there’s often a lack of results when measuring the impact of wage increases on turnover, which peers in the industry are proving. “There’s much more to the discussion even though wages is the foundation of it all.”
PROGNOSIS FOR YEAR AHEAD
86%
While artificial intelligence (AI) is a trendy topic, it hasn’t yet taken the c-store world by storm. Only 9% responded 85% “yes” to the question, “Have you or do you plan to add robotics, self-checkout or any other tools or technology to 0% 20% 40% 60% 80% 100% 0 20 Will add 40 60 Now80Use 100 reduce labor costs or increase efficiency?” Some of the things that 9% are looking at include kiosks and online food ordering systems; point of sale systems; making checkout quicker; researching and pricing selfTwo additional, effective retention tools are benefits and checkouts; and artificial intelligence, IT and cloud tech. Finally, here are the results when asked: “How was busicorporate culture. Twenty-six percent of this group will be increasing benefits this year and, when asked, “What one ness in 2018, and how do you think 2019 will compare in or two words would you use to describe your organization’s each of the three categories listed below?” culture?” they responded as follows: 16%
Performance reviews
2018 (%)
Employee engagement 2%
7%
Other
10%
Responsible/Accountable Teamwork
12%
Trust/Integrity
12% 17%
Flexible/Adaptable
27%
Family-friendly
0
5
10
32 Convenience Store Decisions April 2019
24-32_CVR_HR_Study.indd 32
Better
The Same
Worse
Much Worse
Don’t Know
Our company
4.5%
56.8%
31.8%
6.8%
0%
4.6%
Our industry
4.5%
38.6%
50.0%
4.5%
0%
2.2%
U.S. economy
18.1%
45.5%
29.5%
6.8%
0%
0%
Our company
25.0%
52.2%
22.7%
0%
0%
0%
Our industry
13.6%
36.3%
40.9%
6.8%
0%
2.2%
U.S. economy
13.6%
38.6%
31.8%
13.6%
2.2%
0%
2019 (%)
12%
Respect/Fairness
Much Better
15
20
25
30
Our thanks to all those who took time out of their busy schedules to participate. CSD
cstoredecisions.com
3/26/19 6:32 PM
McLane Company, Inc’s • Ozark Distribution Center — Springfield, MO
May 1-2, 2019
®
Register for the YEO Conference at McLane!
This May 1-2, the Young Executives Organization (YEO) Conference will draw young convenience store executives to Springfield, Mo., for an inside look at McLane’s Ozark distribution center, which uses robotics and artificial intelligence (AI) to create supply chain efficiencies. The conference will include: • Ample networking opportunities. • A tour of the McLane Ozark distribution center, where attendees will learn how robotics and AI are transforming how products are brought to market. • A series of educational sessions will focus on the unique leadership challenges facing the industry’s next-generation executives. • Tour of local convenience stores in Springfield, Mo. Attendees can also opt to arrive the day before the YEO Conference to participate in a special YEO volunteer leadership project with Habitat for Humanity—set for April 30. THANK YOU TO OUR 2019 SPONSORS:
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Mark your calendars to attend this important industry event aimed at helping young executives and next-generation leaders better understand the retail supply chain. REGISTER AT:
https://yeo2019.eventbrite.com
3/26/19 6:28 PM
Balancing
Wages
A
s outlined in the The 11th minimum wage. Starting Nov. 1, 2018, Annual CSD/Humetrics HR Amazon raised the bar by instituting Benchmarking Survey, wages a $15 an hour minimum wage for its are a key component in employees. Target also committed employee recruiting and retention. to a minimum wage of $15 an hour Many c-stores are upping their mini- by 2020. In 2018, Walmart raised its mum wages to attract applicants, while starting wage rate for all U.S. hourly many struggle to compete against the associates to $11 per hour. Meanwhile, likes of big box chains and Amazon the federal minimum wage stands at $7.25 per hour, and has not increased that offer wages above $10 an hour. Nationally, talk of a ‘living wage’ since July 2009. That hasn’t stopped cities and has translated into a push for a $15 34 Convenience Store Decisions April 2019
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As companies like Amazon and cities and states raise the minimum wage, c-stores plot how to compete with wages in an ever-changing market. Brad Perkins, Contributing Editor
states from reaching the $15 benchmark. Seattle, San Francisco and St. Paul, Minn., are among cities hiking wages. California became the first state to institute a $15 hourly minimum wage in 2016, followed by Massachusetts, New York and Washington, D.C. In 2019, New Jersey and Illinois committed to gradually upping their minimum wages to $15. And, at presstime, Maryland is considering a bill that would push its minimum wage to $15 by 2028.
cstoredecisions.com
3/26/19 6:33 PM
Also, at presstime, the Raise the attracting applicants can be difficult. Wage Act of 2019 that would estab- As economies differ by region, state lish a $15 federal minimum wage was and even chain, the rush to make polset for a vote in the House. But there is icy concerns some. “Our West Texas economy is overconcern among retailers of every sector about government overreach in set- heated due to oil and gas activity, and ting wages that don’t reflect the market our local unemployment has dropped or balance concerns on each side. For to one of the lowest in the nation at c-stores, a myriad of issues exist that 2% or less,” said Bill Kent, CEO of many feel can’t be settled by regulation. Kent Oil, which operates more than “There is a pretty clear agreement 40 Kent Kwik locations in New Mexico, amongst our members that the mar- Oklahoma and Texas. “In some market does a very good job of regulating kets, McDonald’s advertises for entry wage rates,” said Lyle Beckwith, senior level hires at $17-$20 per hour, and vice president of government rela- they still can’t hire people.” But not all Kent Kwik stores exist tions for the National Association of Convenience Stores (NACS). “A fed- in the same type of economy as West eral wage does not take into account Texas. “In a different economic cycle, regional cost of living differences. The an increase could hurt tremendously if cost of living in Jackson, Miss., is a minimum wages go up and the econlot different than Boston, so a federal omy won’t let you pass those costs on minimum wage covering both doesn’t in terms of price increases,” Kent said. Retailers also see issues on the make sense.” Even for companies in areas with quality of applicants. Some believe higher costs of living, perception does that with a standard minimum wage, the quality of applicant won’t go up not always meet reality. “Sometimes, what you read in the since they can find the same job in difheadlines is more dramatic that what’s ferent industries. Letting the market happening with us,” said Bob Graczyk, and the company dictate wages allows vice president of human resources at for motivation and promotion. “I’m not a fan of (a standard miniQuickChek, which has 143 locations in mum wage) and I don’t think there are New Jersey and New York. any benefits to it,” Graczyk said. “In our company, if somebody wants to ATTRACTING & RETAINING QuickChek decided to raise wages make more money, they get promoted, as part of its overall strategy to attract and they make more money.” and retain quality employees. It has been successful, in part due to proper WAGES AS ENGAGEMENT market assessments and in part due to Not supporting a federal minimum its status as a ‘Best Place to Work.’ doesn’t preclude a company from rais“We tend to be a little bit bet- ing wages. Retail leaders and experts ter than market. We treat our people note the key is to do what’s right for right, and people want to work for us,” your business and your employees. Graczyk said. “We have a lot of stores “Our decision early on was to stay that are fully staffed — probably the ahead of the minimums in our marmajority of them. Our strategy is to be ketplace, and that has helped with more prescriptive in terms of where we attracting applicants,” Graczyk said. need to be ahead of the market. We’re “Whether it’s a quarter or 50 cents, a certainly paying attention to the likes little bit ahead of the state minimums of Amazon and whoever else out there has helped us even stay ahead of the is making across-the-board changes.” majority of the competitive minimums. Across-the-board changes are a Today in some of our markets, we are major concern in an industry where still ahead of minimums, but we’re cstoredecisions.com
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Fast Facts: » Many cities and states are considering or implementing minimum wage hikes. » Paying above current minimum wage can help entice applicants. » Treating employees well is key to retention.
closer to competitive where we can be.” Kent agreed, adding that paying more does not necessarily improve the quality of hires. “We increase our cost of doing business but not our results or expectations,” he said. “We believe we are able to fight this concern by our testing that identifies better quality candidates. However, we don’t seem to see much difference in the caliber of hire when the pay scales are $9 to even the $15-$16 per hour range.” So, what is the answer to the wage question? Treating employees right. “I think there is some stickiness when you raise somebody’s pay, but the majority of engagement is all about how you treat them, how you make them part of the decision-making process, the training and development,” Graczyk said. “For us it’s letting people know what to do and say, and how to act toward customers. Then you get engaged people. If you pay them well and treat them bad, you’re not going to get engaged team members.” Companies that are successful in balancing wage needs with company needs do so in a thoughtful manner. “You have to set your compensation strategy. You have to be competitive,” Graczyk said. “If you’re at the bottom of the rung, I don’t think that’s a good place to be.” CSD April 2019 Convenience Store Decisions 35
3/26/19 6:33 PM
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Foodservice
Lunch & Dinner
Serving Up
Lunch & Dinner Although breakfast remains the bright spot for c-store foodservice, some retailers are making impressive inroads at lunch and dinner. Marilyn Odesser-Torpey, Associate Editor
C
onvenience stores are they can plan a weekly menu high- quarter three introduces gourmet using both proprietary and lighting a different entrée selection Coney dogs and cheeseburgers; and co-branded programs to each day, so customers know they can the fourth quarter presents Asian cuimeet a growing customer expect to find meatloaf on Mondays, sine, including General Tso’s chicken demand for lunch and dinner foodser- fried chicken on Tuesdays, and so on.” and teriyaki barbecue. Weckstein said when the company vice options. first started offering LTOs it had a lot While consumers tend to be crea- LEADING WITH LTOS tures of habit when it comes to Thirty of Southwest Georgia Oil to learn about making them successbreakfast, at lunch and dinner they Co.’s SunStop convenience stores, ful. Now, prior to the introduction crave variety, according to David Feit, SunStop Markets and S&S Food Stores of LTO items in the stores, foodservice president, strategic insights, at in Georgia, Florida and Alabama that vice managers are brought together The Hartman Group, a Bellevue, Wash.- serve hot food feature different lim- and given a detailed roll-out guide. based market research firm. Millennials ited time offer (LTO) foodservice items They are then shown how to build the particularly are looking for ready-to- every quarter, said Michelle Weckstein, promoted items and make one for themselves to taste. When they go serve family meals or components from SunStop’s director of foodservice. which they can easily build them. This year, quarter one showcases back to their stores, they do the same “To provide variety, retailers should an Italian meatball hoagie and chicken with their team. “This builds excitement and helps consider featuring different items on parmesan; quarter two offers Tex certain days, for example, promoting Mex specialties, including a signature ensure the team knows how to make Taco Tuesdays,” Feit suggested. “Or “Fritaco” taco salad made with Fritos; the product the right way,” she said.
36 Convenience Store Decisions April 2019
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Foodservice
Lunch & Dinner
To reach these groups, Weckstein item. Successful items are brought SunStop’s hot foods program also offers traditional southern comfort said the company takes a “boots on back. For example, the stores recently dishes such as fried chicken tenders, the ground” approach, handing out ran a waffle-with-sausage sandwich pork chops, meatloaf, Alabama cat- printed menus to customers and sur- and a chicken and dumpling entrée, fish, fresh vegetables and peach rounding businesses and institutions both of which earned a return to the cobbler under the EATS Southern in addition to in-store and on-pump menu. They are currently promotCookin’ banner. Last year, the stores signage, digital-menu boards and ing a special price for an eight-piece chicken dinner. integrated signature subs, hoagies extensive use of social media. “We’re using signage, apps and Last summer, the company opened and salads topped with fried, baked a 7,000-square-foot SunStop Urban social media, including offering food or sautéed chicken. Everything, Weckstein emphasized, Market in Tallahassee, Fla., right off the specials on Facebook,” he said. Breakfast foods are big sellers all day i s m a d e f ro m s c r a t c h i n t h e Florida State University campus, with a stores’ 2,500-square-foot kitchens. primary focus on food, Weckstein said. and evening, accounting for between Sandwiches are available in the cold The hot deli and sandwich areas are the 35-40% of Clark’s total foodservice first things customers see as soon as business. Customers can get their case or can be made to order. breakfast sandwiches on house-made they walk in the front door. At the College Town store, younger biscuits to order or from the hot case. guests requested breakfast foods in the evening and even after mid- COMMITTING TO HEALTHY night. To accommodate these To give customers seeking healthier requests, the store transforms its food solutions more options, Tri Star hot food case into a breakfast bar Energy’s Twice Daily stores teamed from 10 p.m. to 3 a.m. on Thursday, with Partnership for a Healthier America (PHA), a national organization Friday and Saturday. Chicken is the bulk of the lunch founded to prevent obesity in children, and dinner foodservice business at three years ago. “Our partnership with PHA has Clark’s Pump ‘n Shop stores in West Virginia, Ohio, Kentucky and Florida. made us more aware of the items Eight of the stores co-brand with we bring in,” said Lisa Lem, category Krispy Krunchy Chicken and seven manager, foodservice and dispensed sell proprietary fried chicken as beverage, for Twice Daily, which has 54 part of its Clark’s Café program. stores, all within 200 miles of Nashville. The company has been doing “We still have doughnuts and cheesebusiness with Krispy Krunchy for burgers, but we make sure to have about 10 years, said Brian Unrue, healthful items as well.” For example, the company looks at Clark’s director of operations, and is For customers looking for more pleased with the training and support the salt content of its lunchmeats and uses the database and online calculahealthful fare, the company searched the brand provides. Featuring a spicy Cajun prod- tors on PHA’s website to look for the out meats with low sodium and littleto-no nitrates, and low-fat cheeses. uct, Krispy Krunchy fits best in stores healthiest options. Spinach wraps and wheat berry bread where customers like their chicken Twice Daily’s hot foods menu are offered as alternatives to Italian “with a pop to it,” Unrue said. The includes cheeseburgers, pizza and cafes serve a milder, more traditional grilled chicken, all of which are made and white breads. in the stores’ kitchens. The hot foods Last year, foodservice sales in the southern-fried chicken. The cafes also offer homestyle offering shuts down at 2 p.m., but sigstores grew 8%, an achievement Weckstein attributes to the quality of entrees such as meatloaf, lasagna nage informs customers they can get their offerings. This year, SunStop is and hamburgers along with biscuits whatever they want anytime by asking. The c-stores’ cold cases hold sandputting some marketing muscle behind and sides from a hot bar 12-13 feet take-home family meals for break- from the checkout counter. The stores wiches, wraps, salads, parfaits and fast, lunch and dinner. Another area prepare the food from scratch in 150- fresh-cut fruit — “one of our biggest of opportunity the chain identified is 200-square-foot open kitchens. sellers in the case” — for grab and go. Every month, the stores add to catering for office parties, pharmaFoodservice is promoted on TVs at ceutical representatives, churches, the foodservice menu an LTO Krispy the pumps, on the drink cooler doors Krunchy, Clark’s Café or grab-and-go and on the hot foods warmer. CSD hospitals, schools and other groups. 38 Convenience Store Decisions April 2019
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3/24/19 9:46 AM
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3/21/19 2:15 PM
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Foodservice
Pizza
Pushing Your
Pizza Offer
Pepperoni and sausage may still lead the pack of favorite toppings, but American consumers are getting more adventurous when it comes to choosing what goes on their pizza. Marilyn Odesser-Torpey, Associate Editor
I
n a SNAP Keynote Report, “Pizza Power,” earlier this year, Datassential research firm found that consumers enthusiastically order toppings beyond the traditional, especially those that featured regional-favorite ingredients and flavor combinations, when convenience stores and other foodservice operators introduce them on their menus. High-scoring variations offered in c-stores included the Philly Cheesesteak at Turkey Hill — cheese sauce, peppers, onions and sliced steak — and Casey’s General Store’s
Fast Facts: » Chicken has become a hot pizza topping. » Regional specialties often earn loyalty. » Take-and-bake offers can spur sales opportunities.
40 Convenience Store Decisions April 2019
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Chicken Quesadilla — cheesy ques- sics are always menu must-haves, he adilla sauce, green peppers, onions, said, chicken variations resonate with grilled chicken and mozzarella cheese. customers. Cliff’s has done particularly well with “We’re seeing growth in chickenbased toppings — chicken, bacon such creations as Buffalo Chicken with and ranch in particular is showing the mozzarella cheese and buffalo wing biggest increase in menu penetra- sauce; Chicken Bacon Ranch, with a tion — and pizza crust as a platform base of zesty ranch dressing topped for such popular menu standards as with a mozzarella and cheddar blend mac and cheese and even bar snacks and ranch drizzle; and Carolina Gold, such as beer cheese, a popular dip in with a honey mustard barbecue sauce, the Midwest,” said Jackie Rodriguez, chicken marinated in the sauce and senior project manager at Datassential. mozzarella cheese. “We want to give the guy who Flavor profile-wise, retailers can take pizza any direction they wish to go, comes in every day reasons to keep making it a great platform for experi- coming in,” said Thurston. Cliff’s promotes new pizza varietmentation and, at the same time, a way to maximize the use of proteins and ies on social media and has found that other ingredients they already have in the word spreads “organically,” said inventory to come up with new innova- Thurston. “BBQ Chicken Pizza” has been so tions, said Rodriguez. She suggested that operators showcase their pizza ver- popular at Kent Kwik convenience satility by promoting a new pie every stores that it’s earned a place as a menu staple, said Stormy Williams, week for a month. At Cliff’s Local Market locations, the the company’s director of operations steady growth in pizza sales is partially foodservice. fueled by the availability of 12 topping options and a constantly changing TRENDING TOPICS variety of specialty pies offered at the In Datassential’s SNAP report, twostores, according to Derek Thurston, thirds of the respondents said they director of foodservice operations for enjoy the flavor boost that a dip or the New York chain. While the clas- sauce adds to their pizza experience. cstoredecisions.com
3/26/19 6:34 PM
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Foodservice
Pizza
Among those mentioned were marinara, garlic sauce and ranch dressing. Aside from reflecting local tastes in ingredients, pizzas also vary in configuration in different regions of the country, and many consumers are fiercely loyal to their hometown type of pie, said Rodriguez. Residents of New Haven, Conn., for example, tend to favor an oblong pizza with a charred crust, while, in Detroit, consumers like a thick, airy crust. Breakfast pizza is one of the fastest-growing varieties on convenience store menus, according to the SNAP report. Its inclusion has grown 63% since 2013. “With their brisk morni n g c o ff e e p ro g r a m s , c-stores have a great opportunity to sell breakfast pizzas,” Rodriguez said. “It’s a portable, handheld alternative that’s as convenient as a breakfast sandwich or burrito.” Kent Kwik stores serve up breakfast pizzas with a regional twist. One of its two top sellers is topped with bacon, egg and salsa — “ We l c o m e t o We s t Texas”— said Williams. The other pizza offers sausage and egg on a sausage gravy base. At Cliff’s, breakfast pizzas are “a huge part of our foodservice business,” said Thurston. They are available all the time because some customers like to have breakfast pizzas for dinner. Ted Roccagli, director of preferred vendor programs for Dallas-based Empire Petroleum Partners, which services 1,726 partner stores and nearly 80 corporate locations spanning 31 states, said that crust options are going beyond thin and thick. He added that whole wheat and glutenfree crusts are also available. And the Pie-Five concept, a new Empire preferred partner, offers a cauliflower crust for health-conscious pizza lovers. Rodriguez said refrigerated or frozen take-and-bake pizzas are
increasing in sales and that c-stores can easily take advantage of that market segment. Roccagli pointed out that take-and-bake pizzas are also EBTfriendly, providing another source of sales for the pies. When Datassential asked consumers why they choose the place where they purchase pizza, a primary response was convenience. “C-stores should leverage their advantage of having convenient locations by making sure that every customer who comes in, even ones that are coming in just to get a cup of coffee, knows they sell pizza,” said Rodriguez.
SLICES TO PIES Seventeen of the 19 total Cliff’s Local Market stores offer pizza. A merchandiser for grab-and-go slices is located up front, in between the two cash registers “... making sure we don’t block the Slim Jims and lighters,” Thurston said. “Slices are a huge part of our pizza business,” he said. “And once customers realize we have pizza, they buy whole pies as well.” Kent Kwik has made-to-order pizzas in 14 of its 45 stores in Texas, New Mexico and Oklahoma and grab-andgo items serviced by its proprietary commissary in all of them. The company recently retrofitted one of its Kwik Eats Cafes fresh delis to accom-
42 Convenience Store Decisions April 2019
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modate made-to-order pizza, and it will be part of the cafes going forward, Williams said. Because pizza has “great food cost and really good margins if you make them with the right measures of cheese and meat,” Kent Kwik will be focusing advertising efforts to promote their program, Williams said. Some of that effort will be with local coupon mailers, but the majority will be regular and digital billboards, window clings and pumptoppers. Thurston believes that value is a big part of the equation that determines where consumers purchase their pizza. To highlight the value of Cliff’s offerings, the stores promote two pizza slices for $3.99. “When we offer this promotion, at least 34% of our customers go for the two slices,” Thurston said. He is also planning to keep introducing new pizza varieties “so the selection doesn’t get old and we continue to encourage impulse purchases,” and tracking their success. Most of all, he said, the stores will focus on operations, continuing to make and present the pizzas correctly, including changing out the grab-and-go slices every hour and a half. For its corporate stores, Empire recently signed a deal with Orion Food Systems to offer the Hot Stuff concept. After only 30 days following the introduction of the concept in some of Empire’s stores, pizza is “selling beyond expectation in a short time” and is likely to be rolled out to the rest of the corporate stores after testing, Roccagli said. “I run across very few stores that can’t put together a successful pizza made-to-order and/or grab-and-go program, whether it’s leasing space to a national brand, baking off frozen products or making fresh-dough products in-store, if it’s executed correctly,” Roccagli said. CSD
cstoredecisions.com
3/26/19 6:34 PM
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3/21/19 2:42 PM
CHEF’SCORNER
Finding Space for a Profitable Kitchen The right oven or refrigeration unit for a c-store space can elevate foodservice sales. Carlos Acevedo, Yesway
C
ongratulations, you’re jumping into the culinary game and outfitting your convenience store with a kitchen. Sure, space is tight, and your budget may be even tighter, but don’t let that stop you from offering fresh, delicious and profitable food. All it takes is a good plan. I deal with space constraints on a regular basis as the corporate chef at Yesway, a rapidly-growing chain with about 150 c-stores in nine states. Many of our locations have limited kitchen space, but I can assure you that solutions for making the most of small footprints are plentiful. Just look at food trucks. Most chefs confront cramped quarters at some point in their careers. Manufacturers know this and have developed innovative equipment. EQUIPMENT CONUNDRUM First, define your menu. Do you plan to make food to order or whip it up in batches ahead of time to hold in a warmer? What daypart holds the most profit potential for your location? Will you serve pizzas or sandwiches? Are you thinking of frying snacks or chicken? What’s your labor model? Your needs will be dictated by the compromise between wants and space limitations. When I walk into a potential kitchen, I look for a preexisting hood system, which removes grease-laden vapors, and gas lines. These components are expensive to install from scratch, but they empower you to cook with gas ranges, griddles and ovens, as well as open fryers. Depending on space, I’d immediately consider adding a gas range, griddle, convection oven and/or fryer, which will allow you to prep nearly any dish. No hood? No problem. Shift gears, and think ventless. These electric cooking machines use filters, catalytic converters and other technology to capture and convert grease-laden vapors into harmless CO2 and water, so they generally don’t need to be under a hood — your local fire inspector will have the final say. Ventless ovens and fryers come in a range of sizes and price points, but none are inexpensive, so choose wisely. A rapid-cook oven is one ventless option. It uses different types of heat — convection, hot air jets, radiant and/or microwaves — simultaneously to cook food up to 15-times faster than traditional ovens. This makes them ideal for short44 Convenience Store Decisions April 2019
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order dishes like hot sandwiches and personal pizzas. Recipes can be preprogrammed and selected on a one-touch screen. The tradeoff is these units are pricey and have small oven cavities, so batch cooking is usually not an option. But they are versatile, and a company’s sales representative or chef can help you get the most out of your machine. For a cheaper route, select countertop convection ovens. They won’t provide the blistering speed of rapid-cook ovens, but are roomier inside — and lighter, which might matter depending on where your oven will live. A panini press is an affordable way to add variety and value to your menu with pressed sandwiches, quesadillas and so on. Ventless fryers open up a world of made-to-order fried snacks and sides, such as wings, french fries and cheese balls. Before purchasing, consider whether you need to load and drop from the front or sides given your space. A fully-automated option saves labor but costs more. Finally, ventless conveyor-style ovens are ideal for pizzas but can prepare almost any dish you can make in a rapidcook oven. They move food past heating elements or hot air jets using a conveyor belt. Determine the width of the conveyor belt and height of the oven cavity in the model before making a purchase, as this will limit the size of dishes you can prepare. These ovens can usually be stacked, doubling your cooking capacity in a small footprint. INGREDIENT STORAGE The second thing I look for in a kitchen is storage — specifically, refrigeration. You need cold and dry storage sufficient to hold enough fresh, frozen and dry ingredients to execute your menu between deliveries. Calculate the volume those ingredients will occupy, and plan accordingly. A small walk-in freezer and cooler are ideal, but upright reach-in units or chest freezers can do the trick, if you get deliveries frequently. Metro shelving on casters works for pantry items. Consider leveraging the beverage cooler for ingredients. With a well-selected line of cooking equipment, even the smallest kitchen can create a robust revenue stream for your business. Carlos Acevedo is Yesway’s culinary innovation and research chef. Yesway operates 150 c-stores and counting in nine states. cstoredecisions.com
3/26/19 6:34 PM
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Category Management
Smokeless
Smokeless Far From
Snuffed New products, growing dollar sales and limited regulatory activity give the smokeless tobacco category a boost. Anne Baye Ericksen, Contributing Editor
H
istorically, the smokeless tobacco category in convenience stores hasn’t benefited from a frequent influx of new products, packaging redesigns or special-edition flavors, unlike candy and snack categories that regularly welcome innovations. Over the past several months, however, this other tobacco product (OTP) segment has expanded, which could inject new energy into an otherwise quiet category. In October, Swedish Match released the Thunder Xtreme line of snus with packaging prominently branded by a large “X.” Then in February, the company confirmed that its ZYN nicotine pouch — test marketed exclusively in the West — is set to roll out nationwide later this year. Last month, the American Snuff Co., a subsidiary of Reynolds American Inc., announced a national relaunch of Grizzly Dark, its premium brand. In addition to redesigned packaging, the manufacturer updated point-of-sale (POS) materials and initiated an online sweepstakes to reinvigorate consumer interest. These announcements have captured the attention of c-store owners and operators.
Fast Facts: » Smokeless tobacco banked more in dollar sales than electronic smoking devices for the 52 weeks ending Jan. 27, according to IRI. » Moist outsold snus by more than a 15:1 ratio, according to IRI. » ZYN nicotine pouches plan nationwide rollout. 46 Convenience Store Decisions April 2019
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“I am excited to see how ZYN performs when it is introduced in our markets. It is basically the same concept to moist as Juul is to the e-cigarette category,” said Dave Linder, chief operating officer for Meyer Oil Co., DBA Mach 1, which owns and operates 19 Phillips and Marathon retail sites in its home state of Illinois, and one in Indiana. Even before this recent series of product introductions and updates, smokeless has been making incremental gains while cigarette volumes continue to weaken. In fact, smokeless banked more in total dollar sales for most of 2018 than the trending electronic nicotine delivery systems (ENDS) sector. According to IRI, a Chicago-based market research firm, smokeless tobacco products cashed in more than $6.8 billion in sales at U.S. c-stores for the 52 weeks, ending Jan. 27, compared with $3 billion for electronic smoking devices. However, ENDs experienced a 169% increase over the previous year’s performance, compared with a 5.6% gain for smokeless tobacco, while cigarettes eked out a mere 0.1% gain for the same period. Within the category, there’s a significant split between chewing tobacco — or moist — and spitless tobacco — or snus. The moist segment accounted for more than 94% of dollar sales. “Year to date versus prior sales are up 7.5%, but … snus are a … small piece of the pie,” said John Kolb, director of merchandising for FKG Oil Co. The Belleville, Ill.-based chain runs 79 Moto Mart stores in six states. “Snus represent 5.5% of the sales when combined with moist.” Still, snus are gaining ground by posting the larger change in dollar sales at 25.8%, opposed to 4.6% for moist. The difference in unit sales is even more jarring. Moist outsold snus in volume by more than a 15:1 ratio; but snus registered a 17.5% increase for the 52 weeks versus a loss of 1.1% in unit sales for chewing tobacco, according to IRI. cstoredecisions.com
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Category Management
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MARKET MANAGEMENT
has gone public regarding its intent to heavily oversee Merchandising strategies for categories with frequent sales of tobacco. In November, then-Commissioner Scott product introductions are more fluid and receptive to Gottlieb announced two major proposals — to ban menchanges. Planograms for tobacco products rarely change, thol in combustible cigarettes and prohibit flavors other due in part to regulations that dictate where cans and than mint, menthol and tobacco in e-cigarettes. Last month, pouches can be displayed. Plus, c-stores are limited under the FDA delivered its plan for the e-cigarette flavor ban to law as to how to promote this category, and as such, OTPs the White House. Also last month, Gottlieb announced his do not lend themselves to innovative marketing and mer- resignation, prompting some analysts to forecast a reprieve chandising options. In fact, neither Linder nor Kolb has from the tighter oversight. Others suggest his replacement initiated new campaigns for smokeless tobacco products in may further the FDA’s focus on menthol regulation. For now, the federal agency’s newest proposed rule changes do not their stores. specifically call out smokeless tobacco. That said, customers have responded to discounts. “The FDA’s actions are all about youth tobacco use. “The manufacturers have done a few consumer engagements at the store level with coupons, and that always What’s saving smokeless tobacco from the flavor ban is the helps,” said Linder. “However, I have not seen any signifi- fact that it’s not very popular with young people,” said Alex Clark, CEO for the Consumer Advocates for Smoke-free cant increase in repeat sales/purchases.” But, smokeless does demonstrate extreme strength in Alternatives Association. “But if we start to see teenagers brand loyalty. Data from Nielsen and Wells Fargo Securities in more affluent neighborhoods start picking up smokeless suggests unit share among the most popular product lines products, you can bet there will be action.” has not significantly changed. Copenhagen, manufactured by U.S. Smokeless Tobacco Co., a subsidiary of Altria Group, led with approximately 34% of unit share for the four weeks ending Feb. 23. It’s held steady at this percentage for the 12-week period, and was only slightly less — 33.2% — for Retail $ Sales $ Share for Unit Share for the 52-week gauge. BRAND for Last 52 Wks Last 4 Wks Last 4 Wks Other brands performed similarly: Grizzly maintained an (ending Feb. 23) (ending Feb. 23) (ending Feb. 23) estimated 28% for each period; Skoal registered 13.6% at Copenhagen $2.2 B 36.6% 34.9% four weeks, 13.5% at 12 weeks and a slight bump to 14.4% for 52 weeks. Each of the remaining brands claimed less Grizzly $1.6 B 27.4% 27.4% than 5% each, none of which posted any notable moveSkoal $1.0 B 15.8% 13.6% ment up or down from one period to the next.
SMOKELESS TOBACCO SALES BY BRAND
CONTROL FACTORS
Camel
$229 M
3.6%
1.1%
Kodiak
$198 M
3.2%
2.4%
Of course, no discussion of tobacco products would be Red Seal $178 M 2.9% 4.0% complete without reviewing the latest on the regulatory front. “Twenty-eight states are considering bills to raise the Longhorn $136 M 2.2% 4.1% legal age to purchase tobacco products. If a state adopts Red Man $123 M 1.9% 2.8% and enacts this kind of legislation, retail sales would decline Source: Nielsen XAOC including c-store and Wells Fargo Securities LLC, March 5, 2019. due to the loss of consumers in the 18-, 19- and 20-year-old age range,” said Thomas Briant, executive director for the The FDA’s decisions on multiple applications for modiNational Association of Tobacco Outlets. Plus, some states are contemplating tax hikes: Tennessee fied risk tobacco products (MRTP) could directly affect the is weighing a 17% tax on wholesale of OTPs; Mississippi has category’s future potential. Eight Swedish Match General proposed a 22.5% tax on the manufacturer’s list price for all snus are under consideration, there’s an MRTP application tobacco products other than cigarettes; and Nebraska may pending for Copenhagen fine-cut moist snuff, and Reynolds raise the state excise tax on OTPs to 65% of the purchase American has submitted documentation for its Camel snus. Approval of a modified-risk order by the FDA might price, a 45% jump from the current level. In Southern California, Beverly Hills city leaders pro- help correct people’s misconceptions about the risks of posed banning all tobacco sales within its limits at a smokeless tobacco, Clark said. “The ability to make modFebruary city council meeting. As of mid-March, no fur- ified-risk claims about any of these products could lead to a measurable consumer shift from combustible products to ther action had been taken. Nationally, the U.S. Food and Drug Administration (FDA) smokeless tobacco.” CSD 48 Convenience Store Decisions April 2019
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Dispensed Beverage
BFY Trend Comes
for Cold Dispensed
C-stores meet new better-for-you beverage demands with kombucha, seltzer-juice combos and naturallyflavored drinks. Howard Riell, Associate Editor
Fast Facts: » Customers are demanding better-for-you dispensed beverage alternatives, such as seltzer, sugar-free and naturally-sweetened options. » Despite declines, carbonated soft drinks are still among the Army & Air Force Exchange Service’s most popular dispensed beverages. » Alltown Fresh’s made-toorder smoothies are the most popular cold beverage at its Plymouth, Mass., location.
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onvenience store operators are reconfiguring cold and frozen dispensed beverage selections to meet growing consumer demand for healthier options. The uptick in interest in better-foryou (BFY) dispensed beverages has, logically, resulted in a decline in soda consumption. Gary Hemphill, managing director of research for Beverage Marketing Corp. in New York City, pointed out soda sales have been soft for more than a decade as consumers seek out both variety and healthier refreshment alternatives. Soda manufacturers are responding with healthier craft soda and sparkling water options. “We expect the future to be challenging for soda as new products and categories continue to emerge,” said Hemphill. “That said, sodas are likely to remain the second most popular consumed beverage in the U.S., right behind bottled water.”
Local politicians nationwide have tried dissuading Americans from drinking soda through taxes, but have accomplished little. A recent study by the American Journal of Public Health found increasing taxes on soda — as with cigarettes — does decrease consumption, but only locally. Most consumers are willing to drive a short distance to buy carbonated beverages where the higher taxes don’t apply.
EXPANDING ALTERNATIVES The Army & Air Force Exchange Service (AAFES), which operates 334 Express convenience stores, is grappling with new beverage trends by expanding its alternative dispensed beverage selection to include offerings such as Revolution Tea. Along with traditional sweet and unsweetened tea flavors, the c-stores offer black raspberry and lemonade. “As the shift toward healthier options continues, and customers seek cstoredecisions.com
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CLEANASSIST
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out BFY alternatives, we added sugarfree options in frozen, non-carbonated beverages,” said Marissa Tinoco, c-store foodservice buyer for AAFES. “New, national-branded, limited-time flavors will also be introduced to support hot, trending flavors like sweet and spicy and ethnic flavor profiles.” BFY products are entering the market at a rapid pace, Tinoco noted. “We are working with our beverage partners to bring in healthier fountain alternatives like PowerAde and vitaminwater. Bubblers with flavored waters, real sugar and real juices are also something we are reviewing,” she said. Express units’ offerings continue to change with their customers’ demographic profile. “Industry data shows that growth of Generations X, Y and Z are changing the entire landscape of the business,” Tinoco said. “Products once considered fringe are now mainstream.” Later this year, Express c-stores plan to test touchscreens to provide an interactive experience for shoppers and allow them to experiment with different flavor combinations. AAFES launched iced coffee in 2017 and expanded into additional flavors in 2018 to keep pace with trends. It’s also considering nitro-infused programs that appeal to younger generations. Despite declines, carbonated soft drinks are still among AAFES’ most popular dispensed beverages. The core lineup of cola, diet cola and lemon-lime are mainstays, but flavored iced tea, iced coffee and candyinspired flavors in cappuccinos and lattes are gaining popularity.
C-store customers‘ cold and frozen dispensed beverage demands are changing. Operators are responding with new drink options including iced teas and iced coffees.
“As the fresh convenience market, flavors develop,” said Seidenberg. we’ve noticed consumers are looking Alltown Fresh offers a selection for the same things from cold-dis- of organic, carbonated beverage pensed beverages as they are from and juice combos with flavors like other areas of the store — fresh food Lemongrass Soda, Raspberry Seltzer and beverage choices with BFY alter- and Cardamom Mandarin. Alltown Fresh takes dispensed bevnatives,” said Shauna Seidenberg, category marketing manager of dis- erage products that may be viewed as indulgent, such as its made-to-order pensed beverage and fast food. Global Partners supplies fuel to smoothies or tapped kombucha, and more than 1,600 locations and owns aims to make them approachable, so and operates 300 c-stores, including 74 customers feel good about incorporatCOCO Alltown sites located through- ing them into everyday meals. The chain’s made-to-order smoothout New England. By year-end, it plans ies are the most popular cold beverage to operate six Alltown Fresh sites. Millennials are driving beverage at its Plymouth, Mass., location. The trends as they lead the charge for smoothies are made with fresh-cut healthier and more natural beverages. produce and are sweetened naturally. The c-store industry and beverage Flavors include Escape, a “refreshing, manufacturers are responding with hydrating blend” rich in Vitamin C; alternatives like seltzer and naturally- Power, mixed with a balance of carbs, sweetened products. Seidenberg sees fiber and fat for sustained energy; and more diversity in the segment than Awake, blended with cold-brew cofever before, including a demand for fee for a boost of energy, plus protein FRESH APPROACH The emphasis on healthier cold- and functional beverages: choices such as and fiber. Customers are upping their stanfrozen-dispensed beverages fits natu- kombucha, which touts probiotics on rally for Waltham, Mass.-based Global tap, made-to-order smoothies with all- dards for what they put in their bodies, Partners’ new Alltown Fresh concept organic produce and add-ins like maca said Seidenberg. “We are raising the bar to meet those needs by providing that debuted in January. The new and spirulina. “We’ve also seen demand for non- non-GMO dispensed beverage alterconcept focuses on healthy, fresh madeto-order food, and that extends to the GMO and organically-sweetened natives made with cane sugar, natural options made with natural colors and colors and natural flavors.” CSD cold and frozen dispensed section. 52 Convenience Store Decisions April 2019
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Technology
Data Column
Chip Card
Storm Brews
Jeremie Myhren has been managing IT in the convenience retail industry since 2000. He is the chief information officer for Road Ranger in Rockford, Ill.
As the October 2020 EMV liability shift at the pump draws near, the cost of not taking action grows clear. Jeremie Myhren, Road Ranger
N
o other industry has as many unattended outdoor payment terminals as we do in the convenience store and petroleum industry in the U.S. There isn’t even a close second. This becomes increasingly relevant to the data security conversation as the payments technology and security landscape continues to evolve. Outdoor payment terminals are steadily increasing in value as a tool used by the criminal underworld. The October 2015 inside Europay, Mastercard and Visa (EMV) liability shift in the U.S. moved a material percentage of retail payment card transactions from traditional magnetic stripe swipe to inserted, chip-card read. While attackers moved to exploit chip where they could, through techniques like swipe fallback, the retail shift to chip added cost, complexity and reduced feasibility for the criminal hacking groups and gangs who perpetrate most of the large-scale payment-card breaches. That’s not to imply that inside EMV solves the payment card data security problem. In most cases, payment terminals are just as susceptible to a costly compromise as before EMV. Typical breach methods like memory scraping point-of-sale (POS) malware remain a threat, and the data captured in such an attack remains valuable, even from a chipped card. Really, the biggest shift in the move to inside chip is that your outlet becomes less attractive for criminal syndicates to perpetrate the final step of the payment-card data-breach fraud — actually spending the money or using the compromised account to buy goods or services to then sell or trade for cash. That said, today, few of us have fully-operational EMVcapable payment-card terminals at the pump. Many of us have some sites and lanes with chip-capable hardware, but few retailers and payment networks are conducting an actual chip-card read at the fuel island. The EMV liability shift at the fuel island currently stands at October 2020 and is unlikely to be extended further. Until the liability shift actually takes effect, so long as we follow current acceptance rules (things like not authorizing over allowed limits), we’re largely protected from stolen account numbers being used for purchases at our outdoor payment terminals.
This conceals the reality that our c-store sites are seeing higher incidences of stolen or breached payment cards being used for fuel purchases. Thieves are finding more obstacles at their traditional outlets, which have fully converted to chip-card acceptance, so the non-EMV-accepting fuel dispensers have increased in value to them. Because the issuing banks behind the stolen cards being used are bearing the cost of most of this fraud, we are often blind to it — even as it rises steadily. This sets us up for a troublesome late 2020. Those who do not make the necessary investments in chip-accepting hardware at the fuel island, as well as those who have, but whose POS and payment processing partners have not, will find a shock in November 2020 as they bear the full burden of payment-card fraud at the fuel island for the first time. WHAT’S A RETAILER TO DO? • If you are branded, ask your fuel brand what your options are and what the current state of their technology programs are when it comes to EMV at the pump. • Talk to your POS software and hardware providers to determine dispenser EMV options and when they will be ready. • Talk to your dispenser partners about your specific dispensers and what your specific options are. • Talk to your payment-card processors about your specific technology mix and when they will be ready for your specific setup. • Talk to Visa, Mastercard, American Express and Discover. If you do not have an assigned representative from each payment brand, ask your payment-card processor to put you in touch. Ask each payment brand to share the burden of Automated Fuel Dispenser (AFD) fraud at your sites for the past year. Normally, you do not see this data, as you didn’t bear the burden of it, but they have it and are generally able to provide it. • Use all of the above to apply pressure where needed to get various stakeholders to get you ready in time. Also use it to build your business case and ROI needed to fund the necessary investments to be prepared.
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cstoredecisions.com
3/26/19 3:57 PM
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Technology
POS Column
POS Systems
Advance
C-stores test new point-of-sale technology to keep pace with a changing landscape. Ed Collupy, W. Capra Consulting Group
D
on’t blink. It’s only been two months since NRF’s Big Show, where I thought I had learned everything happening with point-of-sale (POS) systems that could possibly impact the convenience and petroleum industry. Well, as time moves on, I’ve learned even more since retail’s Big Show, and it’s clear more is on the horizon.
Picture Courtesy of Amazon
GOING CASHIERLESS Let’s begin on the show floor of the NRF Big Show, where one of the common POS solutions displayed was various models for competing with Amazon Go stores. Current POS providers demonstrated how they could accomplish this, including one option that allows consumers’ smartphones to act as the POS. Others included technology providers aligned with new POS-solution providers. Start-up companies had booth visitors like me walk through a variety of experiences, most not ready for the fuel side of the convenience store industry. The first focus for the cashierless experience is clearly in urban and other highly-populated communities like college campuses and workplaces.
Amazon Go has raised the bar on frictionless checkout, leading many convenience stores to consider new checkout options.
EMERGING SOLUTION PROVIDERS International companies and those with supermarket customers are ready to make a play in the c-store industry. These are wellestablished companies, each with considerable market share similar to the leading U.S. POS vendors in the c-store space. They offer solid solutions that can be extended beyond supermarkets, in part because grocers and big-box retailers have entered the fueling business and are demanding more integrated solutions from their current POS providers. Two recognized POS company leaders in other industries told me that having a fuel solution and a team of people with c-store and petroleum experience on board has prompted many c-store retailers to reach out to learn more. Both expect to have new customers from the c-store industry implementing their company’s solution this year. An international firm planning to bring its POS systems to market in the U.S. pointed to U.S.-specific POS needs — such as the ability to handle local sales taxes and bottle deposits — that must be developed, refined and tested. Yet another provider has integrated wearable-POS solutions, which are now ready for states like Massachusetts, where store clerks can authorize the dispenser to begin fueling from wherever they may be within the store. The restaurant industry over the past few years has seen new POS players enter their industry, and many of these come with a selected or aligned payments processor/acquirer arrangement to their solution. And, new POS companies in the c-store industry are offering “free” POS solutions tied to a commitment to a processor and higher transaction rates. C-STORE CHECKOUT C-store operators aren’t waiting for solution providers to deliver the “what’s next.” Instead they’re either
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Ed Collupy is an executive consultant at W. Capra Consulting Group. Reach him at ecollupy@wcapra.com. Visit capraplus.com for more retail technology and business insights. Collupy has IT leadership and business team experience providing strategic, operational and project leadership to retailers, emerging businesses and technology companies.
cstoredecisions.com
3/24/19 9:52 AM
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POS Column
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implementing solutions they’ve developed on their own or seriously considering this approach. A top30 retailer recently began an implementation of new POS software after discussions with its long-term POS provider, who was less than willing to develop the features and functions the business had identified as critical to its growth plans. Another c-store retailer, having customized their chain’s POS system from a “Top 3” solution provider 20 years ago and continuing on as new requirements have been identified, is considering a new POS system that would take advantage of new tools they’re writing and their current provider has shared with them. The willingness to pilot new solutions and to be innovative has grown. One chain, with almost 90 stores and with a new store concept, which can be a stand-alone store or be incorporated into the existing operation, turned to its current POS provider for solutions. It found that, with some changes, a current product for other retail segments would be worth testing.
Mobile
POS So
lution
Technology
Self-checkout is gaining momentum in the industry in part from labor concerns and wanting new customer experience options. This drove a Northeast chain with more than 250 stores to agree to testing a new solution from its existing POS provider. C-store entrepreneurs are pushing the envelope by challenging the status quo of the current POS landscape. One young member of a family-run business put his college experiences to work in his father’s stores and developed his own iPad-based POS system that is up and running. And, it’s about to be installed in a 100-store chain. TECHNOLOGY PLAYS At c-stores, POS-system financial investments have, in recent time, been for compliance reasons or to aid the launch of new foodservice programs. Retailers often wish to extend their POS investment as long as possible. Now, a technology that helped transform data centers, virtualization, is emerging at retail sites. Virtualized POS moves the software application and operating system from the terminal hardware to a shared in-store infrastructure virtual server. An East Coast chain has made a recent commitment to this technology and will be extending the life of the hardware in its stores, while expanding the POS capabilities it now needs, including better checkout performance. Tablet-based POS solutions from the Top 3 POS companies in c-stores are coming to market. In one case, the solution is in pilot, accepting credit and debit only, while another is going through payment certifications, but its solution will have limitations such as the number of fueling positions it supports. Another vendor is expected to be ready by year-end, again with scaled-back functionality compared to its core c-store POS solution. There’s even more happening, and that’s why retailers need to keep their eyes wide open. When it comes to the cloud, watch for an established provider to announce something soon; POS platforms are becoming reality; POS-as-a-Service — as an alternative to a capital investment; and smart cash drawers — in time for cities like Philadelphia saying “No” to no-cash stores. cstoredecisions.com
3/24/19 9:52 AM
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Technology
Kiosks
Changes at the Checkout From touchscreen kiosks to selfcheckout stations and apps, technology offers new ways for c-stores to eliminate lines. Brad Perkins, Contributing Editor
Fast Facts: » Customers increasingly expect a self-service option, whether via a kiosk, self-checkout or within an app. » Americans spend 37 billion hours waiting in lines, a significant amount of that time in checkout lines. » Smart vending machines can allow c-stores to expand their inventory, even in a small footprint.
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“In retail petroleum, both selfechnology disruption has come for the checkout line. checkout and self-service kiosks have Convenience store retailers are been in place for several years now,” adapting in a myriad of ways said Jeremie Myhren, chief informa— like adding mobile payment, scan- tion officer at Road Ranger, which and-pay apps, kiosk ordering and operates 40 stores in the Midwest and self-checkout stations — as they eye Texas. “Customers increasingly expect Amazon’s frictionless checkout for signs to have a self-service option, whether via a kiosk, self-checkout or within your of where technology is headed. When Amazon opened its first app, and certain customer segments cashierless, checkout-free Amazon are going to increasingly demand from Go store in Seattle in 2018, retailers and reward those who provide full selfaround the world took notice. Allowing service options.” And it’s not just self-checkout cuscustomers to enter the store using an app, pay automatically and leave was tomers want, but the ability to find intriguing. Would the process catch on directions and information on whether products are in stock or available — or even work? In the three cities where Amazon for delivery. Futurist Daniel Burrus Go has launched, it’s been met with said c-stores would do well to move both skepticism and excitement. But beyond initial skepticism and investiit demonstrates that consumers want gate the options. “What if I could get anything I greater options for payment and information. At supermarkets, self- wanted at the c-store because they’ve checkout has become more prevalent. got a kiosk, and if I walk up to that kiosk, And at quick-serve restaurants, con- I can order anything?” Burrus said. Kiosks are easy to use, ease sumer spending increased 30% when using kiosks, according to Pymnts.com. store congestion and can serve as a cstoredecisions.com
3/26/19 6:36 PM
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3/21/19 2/22/19 2:14 2:51PM PM
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Technology
Kiosks
“
Many companies roll out self-checkout machines, but then they end up moving the line from the clerk to a line in front of the self-checkout machine.
”
- Gurmeet Singh, chief digital officer and chief information officer, 7-Eleven
“Americans spend 37 billion hours supplement to the store clerk. And they can expand based on offerings, waiting in lines, with a significant demographics and customer need. amount of that in checkout lines,” Burrus mentioned smart vending said Gurmeet Singh, chief digital offimachines as the next step after kiosks. cer and chief information officer at “By having a smart vending 7-Eleven. “The challenge I gave my machine, you will have a store that team was, ‘How do we disrupt this?’ encompasses almost any product that How do we make our shopping even can be sold in a Walmart, a Kmart, a more convenient and delightful?” Now, time-starved customers can Sam’s Club or a Costco, and your customers can get it delivered that day, use Scan & Pay to skip the line. Because the shopping experience if you work out the right deal,” said Burrus. “So you can expand your is integrated into 7-Eleven’s loyalty app, customers receive coupons and inventory tremendously.” Without size restrictions and with savings automatically. “They are also costs coming down, the possibilities earning and redeeming rewards points seamlessly as they check out on their continue to expand. “Self-service is moving from a large, smartphones,” Singh said. The company rolled out a Scan & expensive single-purpose kiosk footprint to a smaller, lower-cost footprint,” Pay pilot across the Dallas metroplex, Myhren said. “Today’s new and best with plans to expand further this year. “We focused on building an endpractice implementations range from mobile devices in the hands of associ- to-end experience for our customers,” ates to low-cost wall-mounted tablets, Singh said. “That meant integrating and away from any sort of physical this feature with our 7-Rewards loyalty implementation — by moving such program, which is already integrated with in-store technology and includes functionality to your app.” special bags for customers to use, so they can easily shop and scan, as well NO MORE LONG LINES But to start, companies are intro- as a patent-pending confirmation ducing self-checkout, like Savannah, station that alerts the store that a cusGa.-based Parker’s did in its 54 stores tomer paid and checked out.” last year, because it brings greater convenience and eases wait times. EMPOWERING PEOPLE 7-Eleven recently introduced Scan & One fear about introducing kiosks Pay, a self-checkout feature using the and self-checkout is the potential 7-Eleven mobile app and connected to effect on employment. But technology its 7Rewards loyalty program. doesn’t have to replace employees; it 62 Convenience Store Decisions April 2019
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can supplement and improve your workforce. “In addition to meeting modern customers’ expectations, when done successfully, you can better optimize and re-allocate your labor investment,” Myhren said. “At highvolume facilities that reach capacity, you can stretch the limits of the facility in ways that aren’t otherwise possible short of a raze and rebuild.” Besides, the human element is still necessary. “It is a human world,” Burrus said. If three people are waiting at the checkout line, and another customer just has a question or needs to ask directions, they could get that answer from a chatbot — like Alexa — positioned in the c-store, Burrus noted. “I’m not saying we get rid of the human, I’m saying we serve our customers better because we have speed and service.” Kiosks that provide information or scan items can free up workers and managers to focus on other areas of the c-store, like hot food and beverage cases. But the main focus of introducing kiosks and self-service machines is to assist customers. “Customer-facing self-service tools are an important part of what should be your digital strategy and implementation,” Myhren said. “It also allows the same number of associates to serve a higher volume of customers in a higher quality way.” That’s been the case for 7-Eleven. “Many companies roll out selfcheckout machines, but then they end up moving the line from the clerk to a line in front of the self-checkout machine,” Singh said. “We wanted to go for the fastest and best customer experience keeping in mind every customer is walking around with a ‘POS in their pockets’ — their smartphone.” Customers may forget their wallets, but they rarely forget their phones. “We decided to use a technology platform that customers are already comfortable using to enable a frictionless experience at our stores.” CSD cstoredecisions.com
3/24/19 9:55 AM
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3/22/19 9:42 AM
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Operations
Restrooms
The Importance of
Keeping it Clean
Restroom cleanliness and employee hygiene can directly impact a c-store’s bottom line. Lisa White, Contributing Editor
R
estroom cleanliness may not sound as glamorous as other popular convenience store initiatives like frictionless checkout or proprietary foodservice, but getting the basics of store cleanliness right has a massive impact on a business’s bottom line. This goes double in the c-store channel where restrooms drive traffic, and customer perception of restroom sanitation can make or break a foodservice sale. What’s more, foodservice employees’ hygiene practices can directly affect the health of customers, making sanitation practices all the more vital. At Rutter’s, customers can press a button to alert associates if the restroom falls below standards, so When Tulsa, Okla.-based QuikTrip the employees can take fast action. Rutter’s designed its restrooms with touch-free fixtures and forayed into the fresh food business 10 easily cleanable wall and floor tiles to appeal to customers. years ago, it knew the condition of its restrooms would be a reflection on its prepared food business. “Our thought process is that our core customers are in vehicles multiple studies, customers value AMBIANCE APPEALS all day long, and our restrooms are cleanliness more than many other facWhen on a road trip, most customtheir personal restrooms,” said Mike tors when deciding to do business with ers have favorite c-stores at which they Thornbrugh, manager, public, gov- an establishment. prefer to stop, and this usually revolves Customers and food operators alike around restroom cleanliness, said ernment affairs for QuikTrip, which are also more attuned to the poten- Warner. “People will drive past stores operates 758 stores in 11 states. A Harris Interactive Survey con- tial for infectious diseases, as well as to go to the cleanest ones,” he said. ducted for Cintas Corp. confirms the the concept of food safety, as stories To maximize appeal to customimportance of cleanliness to con- of foodborne illness more frequently ers, c-stores are investing in restroom sumers. It found 94% of 1,000 adults appear in the news. upgrades from touch-free entrances “Fear of sickness is the No. 1 driver and fixtures to high-quality sanitation surveyed would avoid a business in the future if they encountered dirty in creating a cleaner environment,” practices and extra touches like artsaid Mark Warner, ISSA’s Cleaning work to create ambiance. restrooms. ISSA (International Sanitary Supply Management Institute education manYork, Pa.-based Rutter’s, which operAssociation), a global cleaning indus- ager. “The other driver is the inherent ates 73 c-stores in central Pennsylvania, try association, found, according to value of clean appearances.” West Virginia and Maryland, under64 Convenience Store Decisions April 2019
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3/21/19 2:21 PM
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Operations
Restrooms
stands the value of spotless, attractive restrooms. To appeal to customers, Rutter’s » A Harris Interactive Survey found 94% of adults would avoid a designed its restrooms with touchbusiness in the future if they encountered dirty restrooms. free fixtures and easily cleanable wall and floor tiles. “The touch-free fixtures » Restroom cleanliness influences customer perceptions of a c-store seem to be preferred by the public and their purchasing decisions. and allow for the most sanitary restroom experience,” said Jere Matthews, » C-stores are adding touch-free and modern fixtures to restrooms Rutter’s vice president of operations. and employing best practices in cleaning and employee hygiene. Although employees check the restrooms multiple times each shift, a restroom can become unsatisfactory in a short period of time. To ensure Knoxville, Tenn.-based Pilot Travel impact on customers’ buying decisuccess, Rutter’s provides cleaning materials and trains employees on its Centers has also invested in upgrades sions,” said Matthews. restroom standards and best practices. to ensure its restrooms and showers Employees are educated from day “Rutter’s utilizes a mobile machine are as comfortable as possible at its one of their employment with Rutter’s for restroom cleaning that provides a approximately 550 sites. on hygiene and handwashing proto“We continue our commitment to cols. The chain’s employee hygiene quick and easy way for our team members to clean the restroom fixtures and upgrading our restrooms with mod- training is a major component of its ern tile and fixtures, state-of-the-art Hazard Analysis and Critical Control floors,” said Matthews. The chain also features a button LED lighting, low-water-consumption Points (HACCP) food safety program, inside each restroom that customers toilets and eco-friendly dryers,” said which in addition to handwashing can press if they’re unhappy with its Jason Nordin, Pilot’s chief operator. includes training on illness policies, condition. If a customer pushes the proper glove use in the restaurant and button, it alerts an employee at the HYGIENE PROTOCOLS dress code standards. front sales counter to take the approRutter’s management verifies that Employee hygiene can also deterpriate action to ensure the restrooms mine consumers’ purchasing decisions, handwashing takes place and posts are meeting Rutter’s standards. reminder signs in the restrooms and especially with regard to foodservice. “The restroom sets the tone of the “If employees are wearing clean foodservice areas.“Team members store; if it has a modern feel and fix- uniforms, and are well groomed and also police each other with regard to tures, clean floors and no offensive practicing good hygiene skills, such handwashing and are quick to tell a odors, customers will be more likely as wearing gloves in the food area fellow employee when they fail to folto make purchases, both planned and and washing their hands when visiting low the procedure,” said Matthews. impulse,” said Matthews. This is also the case at Pilot Travel the restroom, this will have a positive Centers, where team members also receive training in hygiene protocols, including handwashing, prior to handling foods, after cleaning any facilities and throughout their day. At QuikTrip, restroom cleanliness and employee hygiene go hand in hand. “Staff is constantly checking restrooms and restocking necessary supplies,” said Thornbrugh.“If we don’t, customers will let us know.” QuikTrip also trains employees on hygiene, and uses signage as reminders. “Customers notice employees and what they do,” he said. “Because Both store and employee appearance can make or break a sale. That’s why many c-store chains of QuikTrip’s protocol, employees set expectations on day one by making hygiene, handwashing and store sanitation practices have their hands clean, and customcore parts of their training. ers see us doing it the right way.” CSD
Fast Facts:
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3/24/19 9:59 AM
EVERY BUSINESS
IS INVITED TO
WIN
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PRODUCTShowcase Spellbound Nicotine Salts Brown Ale Relaunch Heineken USA announced the March 2019 relaunch of Newcastle Brown Ale brewed by Lagunitas Brewing Co., a new brew that celebrates the “Altogether Uncommon” by bringing together a unique blend of pale and roasted malts with American hops. The new liquid is brewed with American Centennial and Chinook hops, fermented using the Lagunitas’ English house ale yeast. The medium-colored brown ale is smooth, crisp, slightly roasty and complete with a delicious hoppy twist. Not too sweet; not too bitter. To support the launch along with highly targeted digital outreach, the team is leading with retail sampling, brew tastings at community events and fan influencer engagement that will let the delicious new brew speak for itself. In addition, a range of point-of-sale (POS) and merchandising materials for both retail and on-premise accounts will be available to encourage shoppers and on-premise drinkers to try this new brown ale. Newcastle Brown Ale will be produced at Lagunitas’ breweries in Petaluma, Calif. and Chicago, and will be available in 12-ounce six-, 12- and 24-pack bottles and a 7.75-gallon slim steel keg.
Company: HEINEKEN USA heinekenusa.com
Phillips & King is launching Spellbound Nicotine Salts. This entirely new line of nicotine salt e-liquid is created in partnership with the award-winning Solace Vapor Co. The mission of Spellbound Nicotine Salts is to provide an effective, high-quality alternative for millions of adult smokers, and it’s going to be a big deal — just like the companies behind it. Spellbound Nicotine Salts are a line of premium nicotine salt e-liquid featuring the “Powered by Salts” diamond. This logo is the vapor industry-recognized stamp of approval that affirms the liquid was made with the highest standards. Spellbound Nicotine Salts include the following e-liquid flavors: Blue Raspberry, Mango, Peach, Strawberry Twist, Mint and Tobacco. Spellbound Salts will be available in 30-milliliter bottles with 50 milligrams of nicotine strength.
Company: Phillips & King phillipsandking.com
Crisp, Sparkling Taste Warmer weather may be a few months away, but Stella Artois is introducing the brand new light, crisp, Stella Artois Spritzer. New to the Stella Artois family, Stella Artois Spritzer is an effervescent dry cider made from a blend of crisp apples and hibiscus flavors. It has a clean, sparkling taste at 3.5% ABV and is now available nationwide. Keep a few of these naturally gluten-free Spritzer cans chilled, or mix them into a cocktail for your guests. Enjoy Stella Artois Spritzer from a wine glass or grab the new 12-ounce sleek cans to help spritz up any of life’s moments on the go (no corkscrew required!).
Company: Anheuser-Busch stellaartois.com/en_us/stella-artois-spritzer.html
Two-in-One Flavor Mars Inc. has introduced STARBURST Duos, which bring two unexplainably juicy flavors together in one single fruit chew. The unique two-in-one pack includes one chew that fuses Strawberry and Watermelon flavors, and another that combines Blue Raspberry and Lemonade flavors, delivering a mouthwatering taste. STARBURST Duos are available at major retailers nationwide in 2.07-ounce single packs, suggested retail price (SRP) 99 cents, and 14-ounce laydown bags, SRP $3.19. The new product launch will be supported with a campaign this summer featuring digital, PR and in-store support.
Company: Mars Inc. mars.com
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PRODUCTShowcase
Improved Butterfinger Cleaning and Sanitizing Solution San Jamar is launching the Kleen-Pail Pro. Kleen-Pail Pro color-coded pails eliminate confusion between cleaning and sanitizing solution containers. NSF approved, the pail is dishwasher safe, easy to clean and fits into any HACCP plan. Kleen-Pail Pro’s patented, curved shape and recessed bottom allow for easy pouring, with molded-in handles for more controlled carrying. The embossed lettering ensures the pail complies with health code, and the trilingual design aids in employee training. Debriscatching ribs at the bottom of the pail trap excess dirt to keep it separated from the towel above. The product is available in three-, six- and eight-quart sizes for frontof-house and back-of-house applications with Kleen-Pail Pro Stands and Wall-Mount Stands available for all sizes.
The Butterfinger brand has launched the national “Better Butterfinger” campaign, revealing a new TV spot, Butterfinger website and social creative across multiple digital platforms. The campaign supports the new and improved Butterfinger recipe — now with more crispety, crunchety, peanut buttery goodness. The Better Butterfinger is available now at retailers across the country. The recipe includes carefully-selected U.S. grown peanuts and a rich chocolatey coating, delivering an indulgent, craveable taste with a robust peanut flavor. It also features a double-layer, higher-quality packaging material to lock in freshness and the Butterfinger flavor that fans love.
Company: Ferrara Candy Co. butterfinger.com
Company: San Jamar sanjamar.com
Sweet & Tangy Cigarillos Swisher Sweets Sticky Sweets, a proven customer favorite, are now available as an Encore Edition Cigarillo. These cigarillos provide a delicious blend of caramel fused with juicy peach for an unbeatable satisfying taste and equally enticing aroma. The combination of sweet caramel and tangy peaches offers a savory blend. Available in a resealable two-count pouch with the “Sealed Fresh” guarantee, Swisher Sweets Sticky Sweets is ready for shipment to stores nationwide. It is offered in “two for 99 cents,” “Save on two” and “two for $1.49” options. This product is also available in a “two for $1.29” option for select markets.
Company: Swisher Sweets
Energy Shot with CBD VitaminEnergy has released a CBD super-infused VitaminEnergy shot. Now that the Farm Bill passed, allowing CBD to be sold and purchased nationally, the company is helping to bring CBD mainstream this year. VitaminEnergy is including 10 milligrams of pure hemp-derived cannabidiol (CBD) that is U.S.-sourced in its newest line of VitaminEnergy shots. Additionally, it’s rolling out the B12 14,000% VitaminEnergy shot. The company has seen huge demand for the VitaminEnergy brand as consumers are seeking energy products that provide more. The brand recently coined the tagline “energy, with benefits” to communicate VitaminEnergy brand’s unique position in the category. In addition to its product line expansion, VitaminEnergy will announce multiple key executives it has hired in the upcoming months, who have extensive energy shot brand experience.
Company: VitaminEnergy vitaminenergy.com
(800) 874-9720
swisher.com/cigars-cigarillos cstoredecisions.com
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PRODUCTShowcase Standby Generators
Baked Fruit Chips Bare Snacks has introduced a line of baked, never-fried fruit and coconut chip blends: NEW bare Medleys. Available in two varieties, bare Medley Pineapple Chips & Coconut Chips and bare Medley Apple Chips & Strawberry Chips, these new snacks unite two fan-favorite flavors in each bag for a deliciously baked, never fried crunchy snack mix. The bare Medleys are perfect for snacking straight from the bag or as a delicious topper to smoothies, yogurt, oatmeal and beyond. A convenient, resealable bag also makes it easy to eat real anywhere — perfect for on-the-go snacking. Like the rest of bare’s expansive portfolio of baked crunchy snacks, including Apple Chips, Banana Chips, Coconut Chips and Veggie Chips, NEW bare Medleys are Non-GMO Project Verified and contain no artificial flavors, colors or preservatives. bare Medleys will retail for $4.29 per 1.6-ounce to 1.8-ounce bag and will be available nationwide this summer.
Company: Bare Snacks baresnacks.com
Briggs & Stratton Corp. is introducing three new 12kW, 17kW and 20kW standby generator units. The new units are enhanced with an improved controller for more efficient operations. They’re also equipped with an updated InfoHub system and Amplify, the next generation of Symphony II power management. The units are a part of Briggs & Stratton’s robust line of high-quality standby generators ranging in power from 8kW to 200kW. Innovations on the three new units offer enhanced control and optimized performance. The new controller features a new exercise cycle, tighter frequency control and smart automatic voltage regulator for reduced fuel consumption, quieter operation and decreased engine impact. Additionally, the new 12kW features a brushed alternator with an improved surge current for motor starting capabilities. It can now start a five-ton air conditioning unit with 50% of base load.
Company: Briggs & Stratton Corp. briggsandstratton.com
Orange Vanilla Coke and Orange Vanilla Coke Zero Sugar launched nationwide at the end of February. The new beverages are the first flavor innovations in more than a decade to join the Coca-Cola flavor portfolio, which includes fan-favorites Cherry Coke and Vanilla Coke — and their zero-sugar counterparts. Orange Vanilla Coke and Orange Vanilla Coke Zero Sugar are available in 12-ounce cans and 20-ounce PET bottles. The new flavor first appeared exclusively at Wendy’s restaurants in Coca-Cola Freestyle fountain dispensers during the NCAA March Madness basketball tournament and is now rolling out nationally across all Freestyle units.
Company: Coca-Cola Co. cocacolacompany.com
Flavored Cappuccino Sunny Sky Products LLC is launching Reese’s-flavored cappuccino. Made with Hershey’s cocoa and staying true to the brand’s origins, the new Reese’s-flavored cappuccino is the perfect combination of chocolate and peanut butter flavor. Sunny Sky Products is a licensing partner of The Hershey Co. and currently offers a multitude of branded hot chocolates and flavored cappuccinos such as Hershey’s Hot Chocolate, Hershey’s Cookies ‘n’ Crème, York, Heath and Almond Joy cappuccinos. The Reese’s-flavored cappuccino adds Hershey’s No. 1 selling chocolate brand to Sunny Sky Products’ expanding hot dispensed portfolio. Reese’sflavored cappuccino is sold in 12-pound cases containing six two-pound pouches and is peanut and tree nut allergen free. Equipment merchandising is available.
Company: Sunny Sky Products LLC sunnyskyproducts.com/products/reeses-flavored-cappuccino/
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PRODUCTShowcase Peach & Pear Energy Drinks Red Bull is introducing new Peach Edition, offering the Wings of Red Bull with the taste of peach-nectarine, and The Red Bull Pear Edition Sugarfree, offering the taste of sugarfree crisp pear. Winning over new and existing consumers since 2013, the Red Bull Editions stand for taste and choice. The line offers a delicious taste option for every palate whether new to the energy drink category, or currently enjoying Red Bull while working, studying, traveling, working out or juggling the daily demands of life. The introduction of The Red Bull Pear Edition Sugarfree, which joins with The Red Bull Lime Edition Sugarfree and The Red Bull Purple Edition Sugarfree (açaí berry), offers consumers an additional choice when looking for variety and sugar-free offerings. The new products will be available nationwide in 12-fluid-ounce single-serve cans.
Company: Red Bull redbull.com
Big Cheese Flavor Kellogg’s is introducing new Cheez-It Snap’d. This new snack from the flavorful, baked, not fried, 100% real cheese brand your customers know and love is super thin, crispy and available in Double Cheddar and Cheddar Sour Cream & Onion flavors. Offered in 2.2-ounce bags, new Cheez-It Snap’d is made with real cheese inside and out and meets salty snackers’ desire for big cheese flavor and unique texture. With the new, eye-catching 36-count, two-flavor display in your store, Cheez-It fans will be excited to give Cheez-It Snap’d a try.
Company: Kellogg’s kelloggsspecialtychannels.com
Online Orders Made Easy Customers expect stores to have an e-commerce operation. MasonWays helps your business stay nimble and meet requirements with its system. The Personal Shoppers Cart accommodates six bins to retrieve orders from store shelves. The Master Base holds 18 loaded bins with online orders until delivery is due from staging area at designated pick up times. Master platform allows for extra Storage Bases to be garaged underneath for use during periods of high activity. System is engineered to work seamlessly with the Collapsible Bins, which have areas for order-identification tags. Tags allow personal shoppers to identify times scheduled for final pick up. The adjustable Metal Sign keeps storage areas organized for personal shoppers to easily locate customer bins at proper pick up times. Loaded bins are delivered outdoors directly to the customer’s car using the Custom Dolly. Dolly is designed to accommodate up to six bins. MasonWays products are molded with USDA approved materials. Keep food orders sanitary and safe from cross contamination. Purchase the complete system for cost savings or individually. Company: MasonWays
masonways.com cstoredecisions.com
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Superfood Bars B.O.S.S. Food Co. has reformulated three of its superfood bars to gain additional nutritional benefits from newer clinically-researched functional ingredients with significant increases in vegan protein, up to three times more prebiotic fiber and no added sugar. The reformulated bars contain between seven and 10 grams of complete protein, an increase of up to six additional grams from fermented shiitake vegetable protein containing all 20 amino acids. The vegan protein is derived from brown rice and pea protein fermented with shiitake mushrooms. The non-GMO, paleo and grain-free B.O.S.S. bars also have only three to seven grams of sugar, all naturally occurring from fruit. The Move and Smile bars previously had two grams of added sugars. The new bars also now contain medium chain triglyceride (MCT) oil. MCTs are beneficial fats that provide energy and feelings of satiety, assist athletic performance by decreasing lactate buildup, are linked to brain health and have fewer calories than other fats. SRP: $2.99-$3.99 for a 1.7-ounce bar. They ship 12 to a case and 144 to a master case.
Company: B.O.S.S. Food Co.
(800) 344-8584
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Classifieds /Ad Index ADD Systems www.go.addsys.com/choice
Apter Industries 800.441.7146 / www.apterindustries.com Blu 888.207.4588 / www.blu.com
Brakebush 800.933.2121 www.brakebush.com/cstore-burger
Calico Brands 800.544.4837 / www.calicobrands.com CB Distributors 888.824.3256 / www.cbprices.com Click It www.clickit.com
57 21 17 15 12 5, 7
onvenience Distribution Business C Exchange 61 703.208.1649 / www.cdaweb.net
Del Monte Fresh 800.950.3683 / www.freshdelmonte.com E-Alternative Solutions 877.373.0069 / www.LeapVapor.com
39 41 49
65
FIJI Water 888.426.3454
11
(Select Regions ONLY)
67
Florida Lottery Commission
www.flalottery.com/LotteryOffices
55
Core-Mark www.core-mark.com/food-service/
Excel Dryer 877.249.0131 / www.exceldryer.com
Gulfcoast 727.449.2296 / www.gulfcoast.com
Hatco 888.815.8460 / www.hatcocorp.com
3 45
Home Market Foods 37 800.367.8325 / www.HomeMarketFoods.com Hoshizaki www.hoshizakiamerica.com
51
JUUL www.juul.com
29
Krispy Krunchy 800.290.6097 / www.krispykrunchy.com Loomis www.loomis.us/SafePoint
75 59
MasonWays 800.837.2881 / www.masonways.com
Nat Sherman www.altria.com
2
National Retail Solutions 833.289.2767 / www.nrsplus.com
73
North American Bancard 866.481.4604 / www.nynab.com
72
NRF Protect 2019 www.nrfprotect.com
58
Prairie City 800.338.5122 / www.pcbakery.com
13
Swedish Match 800.367.3677 www.gamecigars.com www.nightowlcigar.com www.zyn.com www.swedishmatch.com
9 31 47 53
Swisher 800.874.9720 www.optimocigars.com www.swisher.com/smokeless Texas Pete
www.TexasPeteFoodService.com/FlavorsForTheRoad
43 76 27
73
No Assembly Required
Emergency Spill Centers
Windshield Service Center Bases for Beer Caves Storage & Display
www.masonways.com 800-837-2881 cstoredecisions.com
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INDUSTRY
Perspective
TPE Show Buzzes with CBD Excitement
TPE Show attendees veered into booths showcasing CBD-infused products, glassware and smoking accessories to prepare their stores for new consumer demands. Steve Sandman, Contributing Editor
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he 2019 Tobacco Plus Expo, or TPE Show as it’s referred to, held at the Las Vegas Convention Center in February, represents the last true tobacco show in the U.S. While attendance seemed strong from both the retail and distributor communities, finding actual tobacco products seemed like more of a challenge than one might imagine amid a sea of new CBD products. The tidal wave of new products that appeared to exceed more than half the show floor not only created an opportunity for making new friends, but also generated excitement among attendees and made the show fun. Rather than rehash the usual lineup of speakers or the mainstay product lines, let’s focus on what was new and interesting; moreover, these are some of the items or products that likely deserve some consideration from retailers looking to expand their revenue stream and offset some of the declines the industry faces with cigarettes.
CBD ARRIVES Cannabidiol, known as CBD, appeared everywhere across the show floor, and in virtually every delivery format one could imagine. CBD is derived from the hemp plant, but it does not contain Tetrahydrocannabinol (THC), which is responsible for the hallucinating effect of marijuana. While CBD won’t make you high, it is said to reduce pain and anxiety. With the signing of the Farm Bill recently, industrial hemp — and CBD — became legalized nationwide. With this legalization, CBD products have flooded the market. The show floor contained CBD in capsules, lip balm, body cream, vape juice, gummies, edibles, drinks, and even in the raw flower from the hemp plant for those who choose to smoke out of a pipe or a CBD cigarette. Retail prices generally begin around $5 and can go all the way up to the hundreds of dollars for a single sale. While there are certainly some long-standing compa74 Convenience Store Decisions April 2019
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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.
nies selling CBD like Phillips and King, many entrants into this category are brand new to the business and seemed somewhat challenged on how to approach traditional retail with things like fact sheets, displays or practical pointof-sale items. Those shortcomings will eventually be addressed, but for now, retailers should ask basic questions to ensure they partner with companies capable of providing the support necessary to sell the products successfully. INTO THE LIGHT The event also overflowed with glassware and smoking accessories. Once considered the ‘dark side’ of the tobacco business, the continuing expansion of both medical and recreational marijuana has pushed these categories to the forefront of retailer needs. Veteran smoking accessories exhibitors at the show experienced busier booths, and it appeared many had expanded their offerings of these types of items. The booths featured grinders, pipes and all sorts of gadgets — intended for smoking tobacco, but the dual-use appeal to the products did not go unnoticed. While it will likely be a long time before we see large glass pipes in convenience stores, these products are slowly creeping into the c-store world, and that penetration will only get stronger over time. Overall, the show floor buzzed with excitement and a new energy. The recent breakout in the market into CBD has generated a lot of enthusiasm and interest in new products, and created a key reason to not only attend the show, but to actively work the trade show floor. Additionally, what appears to be the inevitability of legalized cannabis caused retailers to take a second look at some exhibitors they might have ignored in the past. There seemed to be an acknowledgment that it’s time to familiarize oneself with this category that had so often been ignored.
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