CStore Decisions April 2022

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Staffing Challenges in Today’s Labor Market The 14th annual CSD/Humetrics HR Benchmarking Survey examines how c-store retailers are responding to the labor management landscape in 2022.

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EDITORIAL

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MARKETING

VICE PRESIDENT, EDITOR-IN-CHIEF John Lofstock jlofstock@wtwhmedia.com

VICE PRESIDENT, CREATIVE SERVICES Mark Rook mrook@wtwhmedia.com

VICE PRESIDENT, DIGITAL MARKETING Virginia Goulding vgoulding@wtwhmedia.com

EXECUTIVE EDITOR Erin Del Conte edelconte@wtwhmedia.com

CREATIVE DIRECTOR Erin Canetta ecanetta@wtwhmedia.com

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ASSOCIATE EDITOR Emily Boes eboes@wtwhmedia.com

DIRECTOR, AUDIENCE DEVELOPMENT Bruce Sprague bsprague@wtwhmedia.com

ASSOCIATE EDITOR Marilyn Odesser-Torpey

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CONTRIBUTING EDITORS Howard Riell COLUMNISTS Tom Briant John Matthews

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

EDITORIAL ADVISORY BOARD Robert Buhler, President and CEO Open Pantry Food Marts • Pleasant Prairie, Wis. Lisa Dell’Alba, President and CEO Square One Markets • Bethlehem, Pa. Raymond Huff, President HJB Convenience Corp. • Lakewood, Colo.

Bill Kent, President and CEO The Kent Cos. Inc. • Midland, Texas Patrick Lewis, Managing Partner Oasis Stop ‘N Go • Twin Falls, Idaho Reilly Robinson Musser, VP, Marketing & Merchandising Robinson Oil Corp. • Santa Clara, Calif.

Bill Weigel, CEO Weigel’s Inc. • Knoxville, Tenn.

NATIONAL ADVISORY GROUP (NAG) BOARD Doug Galli (Board Chairman), Vice President/General Manager Reid Stores Inc./Crosby’s • Brockport, N.Y. Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo. Greg Ehrlich, President Beck Suppliers Inc. • Fremont, Ohio Derek Gaskins, Senior VP, Merchandising/Procurement Yesway • Des Moines, Iowa Joe Hamza, Chief Operating Officer Nouria Energy Corp. • Worcester, Mass.

Brent Mouton, President and CEO Hit-N-Run Food Stores • Lafayette, La. Joy Almekies, Senior Director of Food Services Global Partners • Waltham, Mass.

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

ACCOUNTS RECEIVABLE SPECIALIST Jamila Milton jmilton@wtwhmedia.com

YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD Jeremie Myhren (Board Chairman), Chief Information Officer Road Ranger • Rockford, Ill. Daillard Paris, Director of Petroleum Supply and Trading Sheetz Inc. • Altoona, Pa.

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SUBSCRIPTION INQUIRIES To enter, change or cancel a subscription, please go to: http://d3data.net/csd/indexnew.htm or email requests to: bsprague@wtwhmedia.com Copyright 2022, WTWH Media, LLC CStore 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 CStore 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 CStore Decisions, 1111 Superior Avenue, 26th Floor, Cleveland, OH 44114. GST #R126431964, Canadian Publication Sales Agreement No: #40026880.

Caroline Filchak, Director, Wholesale Operations Clipper Petroleum • Flowery Branch, Ga. Cole Fountain, Director of Merchandise Gate Petroleum Co. • Jacksonville, Fla. Kalen Frese, Food Service Director Warrenton Oil Inc. • Warrenton, Mo. Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas Sharif Jamal, Corporate Brand Manager Chestnut Petroleum Inc. • New Paltz, N.Y.

CSTORE DECISIONS does not endorse any products, programs or services of advertisers or editorial contributors. Copyright 2022 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. ©

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April 2022

cstoredecisions.com

CONTENTS April 2022

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Number 4 •

Volume 33

CStoreDecisions

®

EDITOR’S MEMO

8 Leadership in a Tight Labor Market FRONT END

10 Quick Bites: Post-Pandemic Pinch 12 NATO Update: ACS Study on Massachusetts Cigarette Sales Decline Is Misleading

16 McNeil Advocates for People at OnCue 20 Sprint Mart’s McKinney Succeeds With Technology CATEGORY MANAGEMENT

32 Smokeless Rolls Along 38 Dispensed Beverages Offer Cold Comfort FOODSERVICE

44 Upping Your Foodservice Game:

TXB Takes Foodservice to the Next Level

48 Beyond the Basics: Three Insight-Driven Approaches to Great Retail Foodservice

COVER STORY

TECHNOLOGY

50 Integrating Technology Into Labor Management 54 IoT Can Bring Swift ROI

24 Navigating Staffing Challenges in Today’s Labor Market

OPERATIONS

56 What Message Is Your Restroom Sending?

The 14th annual CSD/Humetrics HR Benchmarking Survey examines how c-store retailers are responding to the labor management landscape in 2022.

Cover photo courtesy of Sheetz

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April 2022

BACK END 60 Product Showcase 65 Ad Index 66 Industry Perspective: What Did COVID Teach Us About Employee Management?

cstoredecisions.com

Editor’s Memo

For any questions about this issue or suggestions for future issues, please contact me at jlofstock@wtwhmedia.com.

Leadership in a Tight Labor Market As you look back over the past two years, you’re feeling a sense of fatigue, followed immediately by a knot in the pit of your stomach because every store in the chain is suffering from out-of-stocks and is at least three employees short of being fully staffed. In between these feelings is another Zoom meeting.

Despite the looming recession and record-high gas prices, the convenience store business is strong. However, employees have been slow to come back to the retail marketplace, and those who are coming back have multiple options from a host of competitors. You need to tilt the odds in your favor to find the people that will help you grow the business.

This topic was among the most talked about issues at the 2022 National Advisory Group (NAG) Conference last month in La Jolla, Calif. Solid business results that stand the test of time do so for one reason: consistent excellent leadership. Individual leaders come and go. The key is to create an organizational culture that ensures great leadership persists long into the future.

In other words, to solve the labor crunch, you need a longterm fix, not a magic bullet or a trendy marketing campaign.

You need a culture built on good, solid, time-tested leadership principles. This issue was discussed at length on my panel at NAG with Tony El-Nemr, founder and CEO of Nouria Energy; Tom Robinson, chairman of Robinson Oil; and Dave Simendinger, president and CEO of Champlain Farms.

These principles are not complicated. They’re simple, commonsense tactics that leaders can get their hands around and start doing right away. Implementing a few best practices will enable employers to see dramatic changes by the end of 2022.

• Get rid of low performers. Labor is extremely difficult right now, but you can’t let bad employees hold managers hostage. Let’s say an employee consistently comes in late, gets “headaches” every other Friday and spends more time chatting up coworkers than he or she does working. Others will notice and be resentful. Turning a blind eye toward the disruption squelches profitability because middle performers get pulled down to the low-performer level, while high performers either disengage or leave. These low performers are holding everyone else back.

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• Accentuate the positive. The next time you’re visiting a store, listen in on the conversations nearby.

Chances are you’ll hear people griping about their workloads, difficult managers, annoying coworkers or the ridiculousness of corporate policy. Everyone does it, but if they realized how harmful it is to their company, perhaps they’d think twice. Helping employees understand what can happen when negativity is allowed to breed — good people quit and customers leave — they’ll be more likely to stop doing it.

• Say thanks. Send thank you notes and emails to employees who do an excellent job. Post positive comments about team members in company newsletters and on social media accounts. But be consistent. That doesn’t mean sending the occasional note when someone goes above the call of duty. It means mandating employee recognition. If this process isn’t hardwired into your organization, it should be. A thank you note is just too powerful a tool not to use. People love being recognized and feel a sense of pride. They will reward you with their loyalty.

• Don’t just recruit great employees, recruit people. We all know employee turnover is expensive.

But did you know that more than 25% of employees who leave positions do so in the first 90 days of employment? To retain a new team member, the leader needs to build a relationship. Studer Group research has found that scheduling two one-on-one meetings, the first at 30 days and the second at 90 days, has an enormous impact on retention that directly turns into savings for your organization.

Once companies start implementing tactics like these, results will follow. Employees will see that you care about them, which boosts morale, improves performance and leads to happier customers, which leads to increased sales.

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quickBites POST-PANDEMIC PINCH As employers in the post-pandemic environment cope with the so-called ‘great resignation,' the convenience channel suffers a double hit: retail workers are more likely to depart for other jobs and fewer commuters means fewer customers. Meanwhile, more consumers report having less to spend on non-essentials.

TO STAY OR NOT TO STAY? LinkedIn asked more than 30,000 U.S. employees if they planned to stay or leave their current role or employer within the following six months. Retail workers topped the list of those looking to leave.

RESIGNED TO THE PANDEMIC

A report from GoodFirms Research surveyed workers through more than 40 partners. Among their key findings, the percentage of employees experiencing stress and burnout topped the list.

30.7% Frequently stressed and feel burnout

Stay in Current Role

Leave Current Employer

Retail

33%

23%

U.S. Average

45%

17%

Source: LinkedIn Workforce Confidence Index, survey of 31,869 professionals in U.S., Dec. 4, 2021 to Feb. 25, 2022

23.1% Feel mental depression sometimes

19.2% Not satisfied with their managers

17.3% Can do better if they leave current job

16.4% Find themselves overburdened

Source: “Who Can Stop This Unstoppable Great Resignation,” GoodFirms Research, 2021

REMOTE EXPECTATIONS In a recent survey of 2,000 fully remote or hybrid-remote employees, more than one-third (35%) of respondents said they wouldn’t consider a new job unless it includes the option to work remotely.

93% do not expect to return to an office five days per week 39% prefer working completely remote 24% prefer a hybrid work environment Source: Rippling, “The New Workweek: Employee expectations after two years of working from home,” survey of 2,000 Americans working remotely (fully remote and hybrid) Feb. 3-4, 2022

PAYCHECK TO PAYCHECK

After your regular expenses are paid each month, do you typically have money left over to save and/or spend on non-essential things?

C-STORE WAGES Projections for 2022 from industry analyst IBISWorld. $2.9 billion Wages Paid 2% U.S. Wage Growth 2.5% Five-year increase 2017-2022

25% Usually have a lot left 57% Usually have a little left 18% Usually have none left Source: CivicScience, responses from 2,647 U.S. adults from Feb 9-10, 2022

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CSTORE DECISIONS • April 2022

Source: “Convenience Stores in the U.S.,” IBISWorld, Aug. 31, 2021

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FRONT END NATO Update

ACS Study on Massachusetts Cigarette Sales Decline Is Misleading A regional impact analysis of a statewide flavored tobacco ban is needed, as well as evidence-based data to determine the results of tobacco policies.

Thomas Briant • NATO

On Jan. 4, 2022, the Journal of the American Medical Association (JAMA) published a study compiled by the American Cancer Society (ACS), which claims to analyze the impact of a Massachusetts law banning the sale of menthol cigarettes and other flavored tobacco products.

The study focused on comparing cigarette sales in Massachusetts from January 2017 to July 2021 to cigarette sales in 33 other states that did not enact a similar statewide menthol cigarette ban.

In the “Discussion” section of the published study, the ACS researchers claimed that “[t]he comprehensive flavor ban in Massachusetts was associated with a statistically significant decrease in state-level menthol and all cigarette sales.”

This claim is misleading and, for this reason, the study and its conclusions could misinform the public as well as lawmakers about the actual impact of a statewide flavored tobacco ban on cigarette sales.

STUDY CLAIMS The ACS study, which was based on an analysis of Nielsen Co. Retail Scanner Data from retail stores in 12

CSTORE DECISIONS • April 2022

Massachusetts and 33 other states, asserts the following impacts from the Massachusetts menthol cigarette ban: • Sales of menthol-flavored and non-flavored cigarettes in Massachusetts declined by up to 33% from June 2020 to July 2021, which constitutes the first year after the law went into effect on June 1, 2020.

• Sales of menthol-flavored and non-flavored cigarettes in the 33 other states decreased by 8% from June 2020 to July 2021, with menthol cigarettes in particular declining by 3%.

STUDY FINDINGS MISLEADING The methodology of the study and the noninclusion of publicly available state cigarette tax stamp sales data raises a serious concern that the study findings are misleading.

In fact, these questionable aspects of the study lead to a conclusion that the findings are not an accurate representation of how a statewide menthol cigarette ban impacts cigarette sales. These questionable aspects of the study include the following: • The main conclusion that the Massachusetts flavored tobacco sales ban led to a decline in cigarette sales to Massachusetts residents is a misrepresentation.

If a state bans the legal sale of a product, the sales of that product by retailers in that particular state will, of course, decline to zero.

cstoredecisions.com

However, given that cigarettes are a nationally sold product, and that consumers are mobile and will seek out other sources of a banned product, a study of one state’s cigarette sales should focus on a more regional analysis, especially considering the short distance to adjacent states where the product is legally sold.

That is, the impact of the Massachusetts menthol cigarette sales ban should be analyzed in conjunction with cigarette sales data from immediately adjacent states because consumers will travel to the nearest state to purchase what has been banned in their home state.

• Significant increases in cigarette tax stamp sales in some of these neighboring states demonstrate the improper focus of the ACS study.

In fact, the study researchers confirmed that “[l]imitations of the study include that cross-border or online cigarette sales in Massachusetts were not accounted for … .” This admission by the study authors raises the question whether excluding changes in cigarette sales in adjacent states, specifically New Hampshire, Rhode Island and Vermont, was a choice to support their eventual claim that a statewide menthol cigarette sales ban is associated with a significant decline in all cigarette sales to residents of the subject state.

• The Nielson Co. Retail Scanner Data relied on for the study is only a sampling of some retail store sales and does not capture total cigarette sales in any given state, including Massachusetts. Even the study authors admit that their “findings should be interpreted cautiously as sales data may not fully capture cigarette consumption.”

That is, the Nielsen sampling of cigarette sales data in Massachusetts would not capture cigarette purchases made by Massachusetts residents who travel to adjacent states to buy their preferred cigarettes.

• A more accurate source for cigarette sales is cigarette tax stamp sales data from state revenue departments. All states, except North Carolina and North Dakota, require a special cigarette tax stamp to be affixed to each package of cigarettes by a wholesaler to show that the state cigarette tax has been paid.

A state revenue department maintains data on

every tax-paid stamp sold to wholesalers and this data is publicly available. The decision to not use accurate and publicly available state cigarette tax-paid stamp sales data calls into question the credibility of the study and the very conclusions made by the ACS researchers.

• According to Massachusetts cigarette tax stamp data, state tax-paid stamp sales to wholesalers declined by 24% (33.1 million fewer stamps/packs), not 33% projected from Nielson Co. sales sampling data. This 24% decline occurred from June 2020 to May 2021.

During this same 12-month period, three adjacent states experienced significant cigarette tax stamp sales increases led by New Hampshire with a 22.1% increase (+23.4 million stamps/packs), Rhode Island with an 18% increase (+5.36 million stamps/packs), and Vermont with a 6% increase (+1.14 million stamps/packs).

This means that while Massachusetts recorded 33.1 million fewer cigarette stamps sold during the first year after the flavor ban law was in effect, the three bordering states reported an increase of 29.9 million cigarette tax stamps sold, which equates to 90% of the lower Massachusetts cigarette tax stamp volume.

Evidence-based data in the form of state cigarette tax stamp sales demonstrates that the study’s conclusion is not fact-based as Massachusetts residents changed their purchasing behavior by crossing state borders and patronizing retailers in New Hampshire, Rhode Island and Vermont to purchase cigarettes.

The questionable aspects of the ACS study and the non-inclusion of cross-border cigarette sales data substantiate not only the need for a more regional impact analysis of a statewide flavored tobacco ban, but also confirm the importance of accurate evidence-based data when considering the impact of tobacco-related policies.

With lawmakers relying on studies to make policy decisions, a study such as the one paid for by the ACS needs to be approached with a serious amount of caution and skepticism.

Thomas Briant is the executive director for the National Association of Tobacco Outlets (NATO). NATO’s mission is to enhance the business interests of retailers that sell tobacco products, support the legislative and regulatory interests of members, and encourage the expansion of the retail tobacco segment in a responsible manner.

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April 2022 • CSTORE DECISIONS

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Front End | Human Resources Awards

McNeil Advocates for People at OnCue Norah McNeil draws on her 12 years of experience in HR at OnCue to implement solutions for employees and account for change in the industry.

Emily Boes • Associate Editor

Norah McNeil, human resources manager of Stillwater, Okla.-based OnCue, which operates 68 stores in Oklahoma and one store in Texas, has found success by taking a people-first approach to her position. She enjoys watching employees grow in their careers and providing an empathetic ear.

Norah McNeil

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With 12 years in the human resources (HR) department at OnCue under her belt, the last five years as human resources manager, she has learned new strategies to stay sharp in her role.

CStore Decisions is recognizing McNeil as one of our HR award recipients due to her passion for the people she works with and her drive to improve the employee environment and set OnCue apart from the competition.

“I enjoy having the ability to have a positive impact on our employees’ career and/or life,” McNeil said.

McNeil graduated from Oklahoma State University with a bachelor’s degree in Finance. Soon after, she accepted a role in OnCue’s accounting department, where she stayed for a few months before transferring to the human resources department as an assistant.

“As much as I enjoyed numbers, I missed interacting with people and jumped at the opportunity to transfer to human resources,” she said.

April 2022

cstoredecisions.com

Front End | Human Resources Awards

TOP PLACES TO WORK

In her current position as human resources manager, McNeil’s responsibilities include overseeing benefits and leave administration, maintaining the human resources information system and coaching general managers and area supervisors.

Additionally, she investigates employee claims, oversees performance evaluations and completes various monthly reports.

McNeil finds her work especially meaningful The human resources team at OnCue assists the chain’s 1,500 when assisting OnCue’s 1,500 employees with her employees in their career paths, helping them find resources when HR team in their career paths and helping them they are in difficult situations. find resources when they are in difficult situations.

“I truly enjoy assisting the employees with navigating various parts of their employment,” she said.

“I love getting to celebrate in their successes and good news.”

Furthermore, McNeil believes in keeping up with an ever-changing industry. She continues to grow Currently, McNeil is working on finding methods and learn by keeping her mindset fresh. to set OnCue apart from the competition. A few During her time in OnCue’s HR department, she options the company can look into to meet this served as the co-lead for the Employee Advisory goal, according to McNeil, are changing benefit Committee, a diverse group with members who packages, offering other incentives and providing hold various positions with the stores. more flexibility.

The goal of the committee was to gain feedback “Staying competitive is key now,” said McNeil. on the challenges front-line employees are facOnCue began a new marketing campaign to ing on a day-to-day basis. With this information, provide insight to prospective applicants into its McNeil and the team were able to help make fun, energetic culture. Pay and benefits, particularly, employees’ jobs more efficient, safer and fun while are being evaluated to offer that competitive edge. building upon OnCue’s culture and standards.

“As the human resources manager, being able to “I was honored to be a part of this initiative and collaborate on these ideas brings joy and focus to enjoyed building relationships with all the commitour goals,” said McNeil. tee members,” said McNeil.

With McNeil’s people-first approach clear in McNeil cites this initiative as being instrumental mind, one of the aspects of her job she is most in raising employee engagement and allowing looking forward to in 2022 is holding face-to-face OnCue to be named one of the Top Workplaces in meetings and trainings to develop new relationOklahoma five times and Top Workplace USA twice. ships. She wants to let OnCue’s employees know She believes the company’s value lies within the that she is there for them by building connections effort and collaboration of the employees who between OnCue’s locations and main offices. work there.

“I look forward to honing my own skills and “The team aspect really rings true at OnCue. becoming a stronger advocate for the employees We are all a team with one main goal and that is and company,” said McNeil. “Being able to hold extremely clear in the work that we all do,” said quarterly meetings and go to stores to meet new McNeil. faces again will be wonderful!” CSD 18

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Front End | Human Resources Awards

Sprint Mart’s McKinney Succeeds With

Technology Chris McKinney promotes positive employee experiences with technology-based HR programs.

Emily Boes • Associate Editor

Chris McKinney, chief human resources officer at Sprint Mart, is championing new programs within his role that aim to positively impact the employee experience at the Ridgeland, Miss.-based chain, which operates 115 stores across Alabama, Mississippi and Louisiana.

Recently promoted to chief human resources officer this past winter, McKinney was involved in numerous technology-based human resources (HR) initiatives during his tenure at Sprint Mart, which began in the summer of 2016.

CStore Decisions is recognizing McKinney as one of our HR award recipients due to his drive to add value to Sprint Mart through technology-based programs.

Chris McKinney

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cstoredecisions.com

STRATEGIC VISION

McKinney’s HR career trajectory began at The Walt Disney World Resort in Orlando, Fla., where he served as a cast member.

“Disney discovered an ability I didn’t even know existed within me, the ability to combine my experience as a former entertainer and musician and translate that into world-class training, delivery and facilitation,” he said.

After multiple learning and development opportunities, McKinney joined the Sprint Mart team as the assistant director of human resources.

He was soon promoted to director of human resources, a title he held for just over four years

until his promotion to his current role.

His current position entails leading strategic vision and daily operations for the full scope of human resources-related functions across the company. This includes functions such as people operations, talent acquisition, payroll and more.

McKinney’s dedication to supporting new programs was discovered after passing on his passion for training facilitation to the current Learning & Development team.

“As a former trainer, training facilitation will always hold a special place in my heart as something I truly love doing,” he said.

However, his shift in focus has allowed him

cstoredecisions.com

April 2022 • CSTORE DECISIONS

21

Front End | Human Resources Awards

McKinney aims to positively affect the employee experience, particularly though kickstarting Sprint Mart LEAP and installing a digital-scheduling tool.

to contribute to projects such as the redesign of the company’s HR technology strategy and the implementation of the Sprint Mart Learning, Engagement and Acceleration Program (Sprint Mart LEAP), the company’s 90-day learning and onboarding program.

The redesign of technology strategy involved McKinney sourcing Sprint Mart’s new platform and installing it from the ground up.

“During this process it became clear from our peers that managing integrations between disparate HR related platforms (ATS, HR, Time Keeping and Payroll) can be a full-time job in itself. So we made the early decision to try and find an all-in-one technology platform, where we could keep the data in one place, and eliminate the effort required to keep it in sync,” McKinney explained.

With this accomplished, McKinney was then able to kickstart Sprint Mart LEAP, the company’s solution to employee turnover, which occurred primarily during the first 90 days of employment.

The six-module learning program reinforces key concepts provided in the instructor-led company orientation. Sprint Mart incentivizes participation in Sprint Mart LEAP by offering pay increases with each

Sprint Mart is debating the right strategy to meet the needs of employees at all levels, while balancing costs at the same time as providing the options employees care about most.

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April 2022

milestone completed.

“Each module is designed to deliver key content, check for understanding via a quick learning assessment, provide a two-week time period to allow the employee to fully implement the learnings and provide an immediate pay raise,” McKinney said.

On par with McKinney’s goal of positively affecting employees’ experiences, he also helped install a digital-scheduling tool, allowing better communication between store employees and their managers, in response to employees requesting work schedules in advance and attendance accountability.

“Today, we commit to all employees a schedule 10 days in advance and have implemented a no-fault attendance policy, which holds everyone to the same attendance standard,” said McKinney.

Sprint Mart also rewards employees with perfect attendance at the end of each month.

ADAPTING TO TODAY’S MARKET

Currently, Sprint Mart is working to address labor management issues such as competing with 100% remote work and the desire for gig work within younger generations. McKinney noted that the company is working to adapt its management strategies for 2022.

“We are actively exploring new functionality within our workforce management strategy to attempt to bridge the gap between fixed shifts and the desire for flexibility,” he said.

Total rewards is also a large focus in 2022 for Sprint Mart. It’s debating the right strategy to meet the needs of employees at all levels, while balancing costs at the same time as providing the options employees care about most.

McKinney remains optimistic about the adjustments the industry will make in the face of today’s realities.

He believes creative strategies will emerge while Sprint Mart attempts to be open as much as possible.

“I’m thrilled to be a part of this conversation,” he said. “Ultimately, my goal is to keep Sprint Mart relevant as an employer-of-choice within the communities we serve.” CSD cstoredecisions.com

2022 Human Resources Report

NAVIGATING

STAFFING CHALLENGES

IN TODAY’S LABOR MARKET The 14th annual CSD/Humetrics HR Benchmarking Survey examines how c-store retailers are responding to the labor management landscape in 2022.

Mel Kleiman • President, Humetrics and Erin Del Conte • Executive Editor

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After two years of the COVID-19 pandemic, supply challenges and labor shortages, c-store retailers are evaluating labor management practices in 2022 as they look to better attract, train and retain quality workers in today’s increasingly competitive landscape.

CStore Decisions and Humetrics, for the 14th consecutive year, have collaborated on the annual Human Resources (HR) Benchmarking Survey, which polled c-store retailers between Jan. 4, 2022 and March 1, 2022, about HR practices, labor challenges, employee incentives and outlook.

The results that follow comprise the survey respondents’ recent experiences and expectations and provide industrywide insight as well as a number of useful benchmarks.

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Just as it has been every year for over a decade now, the most concerning industry-wide challenge continues to be staffing issues. A significant change, however, is that inventory/supply chain management has jumped from what was traditionally of least concern to second place this year (for obvious reasons). And, in light of world events since the close of the survey and this writing, Humetrics expects fuel costs would also be among today’s top three.

April 2022 •

CSTORE DECISIONS

25

2022 Human Resources Report

About 35% of respondents reported a 2021 hourly-employee turnover rate of between 100% and 300%, and more than 70% of respondents saw turnover at least above 50%.

Other hurdles mentioned in respondent comments included inflation, wage pressures and renewable identification numbers (RINs).

In response to the question, “How is the pandemic affecting employment at your store(s)?” as would be expected, nearly all respondents (81%) noted the intensified recruiting challenges, an inability to cover shifts due to employee illness (77%), as well as both increased labor costs and retention/ turnover issues (71% each).

Without exception, all respondents offered a variety of incentive(s) to overcome these pandemic-related challenges last year.

The most popular strategy was “enhanced employee recognition programs” (77%).

Comments on strategy included: • “Stimulus pay to reward employees that never miss a shift and/or pick up additional shifts beyond their schedule.”

• “Making culture changes as well.”

• “Retention bonuses paid monthly.”

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DEMOGRAPHICS

This year’s survey asked 37 questions, the majority of which concerned human resource issues.

Respondents’ organizations ranged in size from 25 or fewer employees (10%) with less than $1 million in annual revenues (20%) to more than 500 employees (40%) and more than $100 million in annual revenues (28%).

When we look at the respondents by job title, 38% were corporate HR personnel; another 21% were general, regional or operations management; and CEOs/ owners accounted for another 14%. The balance (27%) comprised other corporate staffers, assistant store managers and store associates.

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STAFFING CHALLENGES

As for the specifics of the most challenging hourly staffing issues foreseen for 2022, 87% cited retention as the most pressing concern, followed by recruiting (65%) and hiring (77%).

When asked, “Approximately what percentage of 2021 new hires quit within the first 30 days?” some 42% noted they lost up to 25% of new hires, and another 55% reported that they lost somewhere between 26% and 75% of new hires in one month’s time.

In spite of these turnover rates, in response to a question about organizational effectiveness, most gave themselves above-average scores for selection, and the more realistic marks of average for recruiting and below-average for retention.

Comments here included: • “Virus and government unemployment benefits hit hard.”

• “Despite being short staffed, we are becoming

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extremely selective in recruiting. We are not taking individuals that, despite being qualified, are not a good fit culturally for our organization (fast-paced work environment requiring positive mental attitude).”

• “Have recently made some changes, we think will make a difference. Raised wages, employee recognition, flexible scheduling, better training, easier assessment process, etc.”

April 2022 •

CSTORE DECISIONS

27

2022 Human Resource Report

In-store ads and outdoor signage reclaimed the top spot for the first time since 2018 as one of the most effective recruiting tools, followed by social media, employee referrals, internet job boards and the company website.

EMPLOYEE RECRUITING

Here’s a snapshot of how perceptions about the effectiveness of the most widely used recruiting tools have changed over the last three years:

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It’s interesting to note that in-store ads and outdoor signage reclaimed the top spot again for the first time since 2018, and Craigslist has dropped out of favor entirely (at least for this group of respondents).

The chart on the top of page 29 shows the percentages of those actively recruiting from often-overlooked populations. One person commented, “All these areas are productive, but (there’s) still not enough available people.”

Sixty-eight percent of respondents make use of an hourly-employee recruiting-bonus incentive or referral reward program and, in general,

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find that when it works, it works exceedingly well.

Still, on balance, they find their programs less than satisfactory at best.

EMPLOYEE SCREENING & SELECTION

In spite of the fact that pre-employment testing (for things like attitudes, personality traits, IQ, strength/ stamina, etc.) has been found to be the most reliable predictor of success on the job, only 36% of these respondents use these proven screening tools.

Also of note, this year online employment applications appear to now be favored over the hard copy,

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paper version. Humetrics cautions that the only way to know for certain the applicant is the person who completed either an online or paper version of your employment application is to have it completed and submitted on site. Both versions should have the applicant’s hand-written signature as well.

Like last year, 67% reported that all those conducting interviews have been trained in best-practice interview techniques, and 56% reported that they use a standardized interview question set.

EMPLOYEE RETENTION

Fully 81% of the survey takers raised starting wages in 2021. These increases varied widely from 5-20% in amounts ranging from 15 cents to $3 per hour.

When it comes to training budgets for 2022, 51% will spend more than they did last year, and 30% will maintain current investment levels.

As for training methods, the tried-and-true, handson, in-store approach is most favored once again and these results are in the exact same order of use/

April 2022 •

CSTORE DECISIONS

29

2022 Human Resources Report

To reduce employee turnover, stores are conducting more/ better training, offering bonuses, shortening staff working hours, improving employee engagement, doing more focused hiring for better candidates and more.

preference as last year.

Of the questions in this survey that invited comments, this one had the largest response: “Other than raising wages, what is the most effective thing you’re doing to reduce employee turnover?”

While the most mentioned strategies were “more/better training” and “bonuses,” here is a sampling of other tactics these employers are using to improve hourly employee retention rates: • “Keeping an older population of staff on board. (They are) much more responsible in showing up, working their job responsibilities and being flexible.”

• “Retention bonuses.”

• “Shortening staff working hours.”

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• “More focused hiring for better candidates. Small pay increases based on earned qualifications. Additional pay for stores with drive-through ($1 per hour) and incentive pay for full week with no missed shifts” • “Reducing workload.”

• “Improving employee engagement.”

• “Flexible schedules.”

• “Employee engagement and rewards programs.”

• “Culture — making the employees feel a part of the company training — investing in their future.”

• “Incentives for taking extra shifts, gift cards.”

When asked about the use of specific retention tools, the results were:

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Two other retention tools we asked about were benefits and corporate culture. Forty-two percent of this group increased hourly employee benefits in 2021, while 52% made no changes. When asked to describe their organization’s culture, the most frequent responses were: “Family-friendly (39%), “Respect/fairness” (16%), “Caring” and “Team-work” (10% each).

The chart below captures the responses to the question: “What are the top three reasons a great employee would want to work for your organization?”

TECHNOLOGY

This year, in spite of the pandemic, only 19% responded “yes” to the question: “Have you or do you plan to add robotics, self-checkout or any other tools or technology in order to minimize human contact, reduce labor costs or increase efficiency?” Only 30% reported the use of scheduling software.

PROGNOSIS FOR THE YEAR AHEAD

And, finally, here are the results when asked: “How was business overall in 2021 and how do you think 2022 will compare in each of the three categories listed below?”

Our thanks to all those who took time out of their busy schedules to participate. CSD cstoredecisions.com

April 2022 •

CSTORE DECISIONS

31

Category Management | Smokeless

SMOKELESS

ROLLS ALONG The segment chugs steadily forward on the strength of moist smokeless tobacco, while modern oral nicotine products like pouches are driving growth with double-digit sales increases.

Thomas Mulloy • Senior Editor

Loyal moist tobacco dippers overwhelmingly command the smokeless segment, but consumers are eagerly trying non-tobacco spitless pouches, which are driving sales with impressive double-digit growth as retailers consider expanding their offerings.

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Category Management | Smokeless

While moist smokeless tobacco (MST) like loose snuff and pouches dominate in convenience stores with more than 80% of the segment, according to data from IRI Worldwide, non-tobacco modern oral nicotine has been on a tear. Convenience channel dollar sales of modern oral nicotine spitless products for the year ending Feb. 20, 2022, skyrocketed by 39.7%, according to IRI. And retailers are taking notice.

“Within our business model, we really took on a big investment with modern nicotine like the ZYN, On!, Velo and Rogue,” noted Jon Manuyag, director of marketing with Beaverton, Ore.-based Plaid Pantry, which operates 107 stores in the Pacific Northwest. “(We) have found some huge success over the last two years within this category, and it continues to still grow.”

Michelle Signorelli, tobacco category manager

for Atlanta-based RaceTrac’s 560 stores throughout the southeastern U.S., has found that the nontobacco spitless products are showing plenty of appeal to more traditional dippers, as well.

“We’re getting a lot of trial from that,” said Signorelli. “I don’t have the ability to see complete conversion consumer to consumer, but I haven’t seen cannibalization into MST. It’s more so just been poly use of (customers) buying them together.”

But while both Signorelli and Manuyag have seen a lot of moist users sampling modern nicotine products, that hasn’t been the case for central Texas, according to General Manager and Retail Director Vince Segura of Fuel City, which operates seven c-store locations in the Dallas-Ft. Worth metroplex. In his area, traditional tobacco’s rule over the back bar hasn’t been challenged by modern oral nicotine.

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Category Management | Smokeless

While moist smokeless tobacco (MST) like loose snuff and pouches dominate in c-stores with more than 80% of the segment, non-tobacco modern oral nicotine has been on a tear with annual sales growth of nearly 40%.

“They move, but not at a rate that you would expect them to,” said Segura. “Moist snuff definitely does. … Copenhagen primarily is No. 1, followed probably by Grizzly for our customer base here.”

Segura calls Fuel City’s smokeless consumer ‘a specific type of customer.’ Brand loyalty is important to those folks. “If I’m a Copenhagen guy, I’m not going to go try a Velo or ZYN or a snus to replace it,” he added.

MERCHANDISING CONSIDERATIONS

Spitless dollar sales growth decreased slightly for the 12 weeks and four weeks ending Feb. 22, slowing to 31.7% and 32.6%, respectively, but that matches the smokeless category as a whole, which saw growth ease 0.7% and 3.1% for the same periods.

For RaceTrac, moist snuff growth has been soft, according to Signorelli, which she attributed to consumers having fewer usage opportunities as the pandemic eases and more of the workforce returns to the office or jobsite.

“We saw the normal January decline, which wasn’t unusual — it always happens at that time,” explained Signorelli. The drop in sales growth in November and December caught retailers like her by surprise. “That’s actually typically a lot higher of a time for MST.” Retailers don’t seem to be seeing much movement with nicotine lozenges or toothpicks. Fuel City no longer carries either. Both RaceTrac and Plaid Pantry stock the lozenges, but sales aren’t very robust at either chain.

RaceTrac’s Signorelli wonders whether these products need to move off the back bar, away from more traditional nicotine products. “My question mark’s still up in the air on if that needs to be something a little bit more shoppable. … So I wonder if that will emerge into a health and beauty aid (HBA) realm, similar to grocery,” she said.

As for merchandising the smokeless category, more manufacturer-based promotions may be in the cards. Convenience vendors across all categories may have been shy running specials with uncertainty brought about by recent supply disruption.

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“A lot of them have a lot of promotions starting back up now that they have a little bit more confidence in their inventory,” Signorelli said.

At Plaid Pantry, Manuyag said he’s been able to get “crafty” with promotions. The chain is currently running a ‘buy three and save $4,’ which has consumers purchasing six tins to save $8 in lieu of buying a full roll.

As for regulation, the spitless category has largely avoided scrutiny. But that could change.

“I think a lot of us are just waiting to hear on the regulatory front — whether it’s cigars or vapor and now the tobacco-derived nicotine — how that shakes out before everybody buys into a ton of products that could potentially be taken off the market,” said Signorelli. CSD

fast facts: •S pitless products have sustained 39.7% growth in the past year, per IRI. •M oist smokeless tobacco dominates smokeless sales thanks to loyal consumers.

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Category Management | Dispensed Beverages

DI S P E NSE D BEVERAGES

OFFER COLD COMFORT Will cold and frozen dispensed beverages see a return to pre-pandemic sales this spring and summer?

Marilyn Odesser-Torpey • Associate Editor

With two years of pandemic fatigue in the rearview mirror and spring promising warm and sunny days ahead, c-store retailers are preparing for a revival of sales in the cold and frozen dispensed beverage category as customers return for their favorite and new thirst quenchers.

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By June SunStop will be installing in some of its stores frozen noncarbonated machines fueled by propane gas for environmental benefits that freeze 30% faster than traditional machines.

Last year, SunStop Convenience Stores and Markets made a good start at bringing its cold and frozen dispensed beverage category back to its pre-pandemic profitability with a 31% increase in sales over the year before.

This year, with the addition of new products and flavors of already popular brands, the chain, which has 80 locations in Georgia, Florida and Alabama, is expecting to gain even more ground, according to Michelle Weckstein, director of food and beverage brands for SunStop.

“We’re knee-deep in evaluating the category in our stores, surveying the volume of frozen beverages, looking at counter space and electrical capability and bringing in new state-of-the-art equipment,” Weckstein said.

In its markets located in rural areas where there are substantial numbers of Latinx farm workers, SunStop has

had great success with Jarritos, a 100% non-carbonated, no-sugar-added, frozen juice drink in flavors such as hibiscus, mango, strawberry and watermelon, since the brand was introduced mid-last year. In markets with schools nearby, SunStop is testing Jolly Rancher frozen dispensed beverages.

“Kids like their beverages on the sweeter side, so we think Jolly Rancher will appeal to them,” she noted.

By June, the stores will also be carrying non-carbonated beverages from a company that will custom-craft flavors such as pineapple-lemonade for them.

“We’ll be able to have flavors no one else has and constantly rotate them to keep our selections fresh,” Weckstein said.

Also, by June, SunStop will be installing in some of its stores frozen noncarbonated machines fueled by propane gas for environmental benefits that freeze 30% faster than traditional machines. The manufacturer designed an eye-catching LED light-up front panel that promotes the stores’ Chillin’ On Ice brand.

For its carbonated fountains, the stores are putting in new 12-head machines and chewy ice. Some are increasing from eight heads to 12.

COVID-triggered sanitation measures remain in place at the SunStop stores.

“We clean our equipment frequently,” Weckstein said.

“We want our customers to watch us clean.”

COLD COFFEE

To promote its fountain drinks, Zip Trip offers a continuous promotion through both its loyalty programs and app.

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Cold-brew coffee is a hot commodity this spring.

Cenex Zip Trip, which has 39 stores across seven states, is testing a new Ronnoco program in some of its locations, reported Jon Fleck, the chain’s category manager. David Cole, category manager for Plaid Pantry, said that his company recently launched a dispensed STōK cold-brew coffee program in about half of its 107

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Category Management | Dispensed Beverages

locations in Washington and Oregon.

To promote its fountain drinks, Zip Trip offers a continuous promotion through both its loyalty program and app. Loyalty members receive any size fountain drink up to 44 ounces for 99 cents, while anyone who downloads the app receives a coupon for a free 32-ounce fountain drink.

“We also rotate other offers through both the app and loyalty program to include discounts on additional products like Froffee (frozen coffee),” Fleck explained.

“Plus, from time to time, usually for holidays or on occasions such as Mother’s Day, Veterans Day, etc., we offer free fountain drinks.”

REBOUND AHEAD

Although cold fountain beverage sales at Plaid Pantry are still being negatively affected by COVID, Cole is hopeful that they will rebound in the coming months because “we always see a large spike in fountain sales during the summer.”

Refills are back and, on June 1, Plaid Pantry stores will kick off a ‘100 Days of Summer’ promotion offering

fast facts:

•S ome retailers are bundling dispensed beverages with food to drive sales while others add new flavors, upgrade equipment and focus on sanitation.

•D ispensed beverage promotions and coupon offers through a loyalty app can help boost excitement in the category.

a medium (30-ounce) fountain drink for 99 cents June through August.

Plaid Pantry just upgraded its Pricebook and register systems with an eye to bundling cold and frozen dispensed beverages with food or snacks, Cole added.

“We are just stepping into this strategy and are exploring concepts that will register with our customers,” Cole said.

Now the stores offer a 32-ounce fountain drink for 49 cents with the purchase of any prepackaged sandwich.

They also tie in fountain discounts with pizza sales. CSD

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Foodservice | Upping Your Foodservice Game

TXB TAKES FOODSERVICE TO THE NEXT LEVEL

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With customer expectations getting higher all the time, retailers must keep raising the foodservice bar to increase their share of stomach.

Marilyn Odesser-Torpey • Associate Editor

Last year, Kwik Chek began the process of rebranding under the TXB (Texas Born) name. While Kwik Chek did a lot of things well, the company’s senior leadership team wanted to enhance and refine many aspects of the operation as well as change the name and logo, explained TXB CEO Kevin Smartt.

“In addition to in-store enhancements, we’re hyper-focused this and next year on new store growth,” he said.

Currently, the chain has 48 stores in Texas and Oklahoma. Smartt stated that five additional stores will open this year and seven more in 2023.

As an example of the foodservice enhancements, Smartt pointed out that while Kwik Chek always offered freshly hand-made tortillas, its production was never built into the front line where customers could watch the process. Now, tortillas are pressed out onto the flattop grill right in front of customers while the staff takes their orders. cstoredecisions.com

April 2022 • CSTORE DECISIONS

45

Foodservice | Upping Your Foodservice Game

Among the chain’s signature food items are made-instore salad shakers, which are large cups containing high-end salads, usually including a protein, that customers simply shake to distribute the dressing.

“Little things like that can make a big difference in customer perception,” Smartt noted.

A good part of what differentiates TXB from competitors is a variety of at least 20 foodservice offerings that cannot be found in any other c-store, Smartt said.

Among the chain’s signature food items are madein-store salad shakers, which are large cups containing high-end salads, usually including a protein, that customers simply shake to distribute the dressing.

“The salad shakers are visually stunning and are perfect for people on the go,” he noted.

At least six new varieties of salad shakers already have or are soon to hit the store coolers. The quesadilla and taco offerings are also being expanded and three types of nachos are being added.

Prior to and going into the pandemic, TXB was offering limited-time offers (LTOs) on a quarterly basis.

Supply and labor challenges made it necessary for the company to back off that schedule for a while, but Smartt predicted that the quarterly LTO schedule will resume this year.

“Customers are a little food fatigued and are looking for new, fresh and exciting products,” he remarked.

“We believe that LTOs will drive sales.”

Keeping up with major foodservice trends is a big part of TXB’s growth strategy, according to Smartt. The company has been testing and refining a mobile food order model for some time and he projected that it will be ready to roll out this year.

Newer stores will have food lockers for pickup orders in a designated room with heated glass cubicles.

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Either the customer or a third-party food delivery service such as DoorDash will enter a code to retrieve the food, making it immediately available without disturbing staffers who are helping other customers, he said.

Right now, between 50-60% of the stores subscribe to a third-party delivery service. By the end of this year, Smartt would like to see that number increase to 90%.

Home delivery is not a huge driver of sales for TXB, but “it gets a lot of buzz in the market,” he said.

One explanation, he suggested, may be that the biggest driver of home delivery is dinner and consumers do not yet associate convenience stores with the dinner daypart.

“We’re trying to reposition that,” Smartt said. “It’s a trend we all have to think about and understand.”

NAVIGATING INFLATION

“As rising inflation makes price more of a factor for consumers, it is even more important for retailers to deliver value products,” Smartt stated. That, he said, might require selling multiples of products to drive the price point lower.

“Take tacos for example,” he offered. “I can sell one for $3.99 or two for $2.99 — how do I get more pennies in the bank? If I sell the one for $3.99, I will get $1.50 in gross dollars; with two for $2.99 I get $1.60 or $1.70 in gross profit.”

If, he continued, the consumer has only $5 to $6 in their pocket, they can’t afford to get two $3.99 tacos.

At $2.99 for two, they can.

“The gross profit percentage is less, but gross profit dollars are more,” he concluded. CSD

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Foodservice | Beyond the Basics Column

THREE INSIGHT-DRIVEN APPROACHES TO GREAT RETAIL FOODSERVICE Learn to elevate your food program and do more with what you already have.

Jessica Williams • Food Forward Thinking

Forward Thinking is in my company name because the importance of thinking ahead is paramount to anything else we do as business owners. Predictive thinking is a strategy for constantly improving. Restless dissatisfaction can drive us to find ways to capitalize on what’s working well and improve in areas that are struggling.

In my role as a menu creator, I hear the word “innovation” quite regularly, and it may be one of the most over-used words. Just to level-set, let’s reframe innovation as a way to do more with what you already have; a twist on the familiar, insightdriven adjustments and changes that meet needs and drive sales.

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In the business of convenience foodservice, there are two issues that will impact our food businesses in 2022: 1. unpredictable supply, and 2. predictably low labor.

Our job is not only to survive in these circumstances, but to actually excel. We will have to be innovators.

Here are three innovative approaches to execute a great foodservice program and practical applications: 1. Elevate.

2. Do more with less.

3. Take the backseat.

cstoredecisions.com

With our creative hats on, let’s brainstorm what we can elevate.

Here’s what I mean by elevate: Like an elevator, move fast and efficiently from floor one to floor 99; from the Holiday Inn to the Ritz-Carlton; from mediocre to unforgettable. Elevating food can be a series of incremental improvements or a giant leap toward improving the customer experience.

Here are some ways to ELEVATE your food program: • Lunchables to Charcuterie Boards If small snacks and kids’ plastic meal kits are moving well in your location, why not check out bento boxes and higher-end charcuterie boards? Salami, cheese and crackers, nuts, olives and dried fruit are becoming more frequent lunches and snacks and can serve as an appetizer for anyone picking up beer or wine. Get inspiration from groceries. Ask distributors for ideas.

• Sausage Biscuit to French Toast Breakfast Sandwich If breakfast does well in your location, ask distributors and key vendors for ideas. Limited-time offers (LTOs) in this category are easy to execute, often have the same or slightly-higher register ring, may help drive supplier incentives and can drive overall category sales.

• Same Old Same Old to Local Legends Partner with local legends to bring in destinationdriving items. Offer space to start-ups and small business owners to showcase their (inspected, approved) baked goods, candies, beverages, cheese curds, candles. Take advantage of direct-store-delivery scenarios; if you’re part of a chain, ask for legal and marketing support from corporate. Look for items that are better than the ones you offer and don’t be afraid to sell them.

DO MORE WITH LESS

With labor shortages at store locations and at headquarters, there is a ton of work to do for those willing and able to do it. Let’s make it easy for them. Let’s work with what we have and elevate the messaging from level one to level 99.

• “Sorry, Out of Stock” to “We Have Lots of THIS!” Create accurate planograms (POGs) that showcase multiple facings of top-movers. You may anticipate being out of stock on some key items, but you may be able to count on other items being in stock. Go ahead and set cstoredecisions.com

“

Like an elevator, move fast and efficiently from floor one to floor 99; from the Holiday Inn to the Ritz-Carlton; from mediocre to unforgettable. Elevating food can be a series of incremental improvements or a giant leap toward improving the customer experience.

“

ELEVATE

POGs now and communicate to store teams so that each store appears front-faced and fully stocked.

• Now Hiring to “Ask Me Why I Work Here” If it sounds risky to ask this question now, then use this moment to address the “why.” Are there benefits you can list on the sign? Is there anything you can share to communicate what’s better about working here, than anywhere else? Share the path to leadership, the flexibility in scheduling hours, and any benefits that help set your unique location apart from those hiring next door.

• “We Are Staffed” to Actual Hospitality One chain I know has obviously trained everyone at the register to always greet the person walking in. Every guest feels known and seen, and any potential communication barriers never exist. It literally takes no extra time or cost, and it stands out from other convenience brands.

TAKE THE BACKSEAT

This may be controversial advice: If you are a category manager in food and beverage, consider giving marketing space — like loyalty messaging, emails, billboards, radio — to other categories that are known to drive more customers to your locations.

The truth is that tobacco, fuel and lottery are often primary reasons customers stop by, so strategically speaking about food and beverages on valuable real estate at your site may be of more value to you than real estate off your site. It may sound crazy, but just consider it.

Jessica Williams founded and operates Food Forward Thinking in central Kentucky. She considers herself both a foodie and an operationally-minded menu developer. More at FoodForwardThinking.com

April 2022 • CSTORE DECISIONS

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Technology | Labor Management

INTEGRATING

Technology into Labor Management From electronic time clocks and Zoom meetings to digital inspections and applicant tracking, technology is changing the way c-stores approach labor management.

Erin Del Conte • Executive Editor

Technology is changing the way retailers address labor management, from application tracking to shift scheduling. As labor issues intensify across the industry, more retailers are turning to technology to offer efficiencies.

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“Though many tech offerings have existed to assist retailers with labor management, they’ve certainly become more apparent and necessary to me over the past year and a half,” said Jared Scheeler, CEO, The Hub Convenience Stores Inc. and the 2021-2022 National Association of Convenience Stores (NACS) chairman. “The labor issues that we’re experiencing aren’t going away, probably ever. So the need for automation of administrative tasks is greater now than ever.”

At The Hub, which operates six stores in North Dakota, Scheeler is working to reduce administrative tasks within the stores, to allow store leaders to spend as much time as possible face to face with customers and team members.

“It’s so easy to get bogged down in menial tasks, so I want to simply remove as many of them as I can from the task list of our store leaders,” he said.

The Hub uses electronic time clocks to automatically track labor hours. It also employs a digital platform for scheduling.

“This allows team members to communicate with one another via the mobile scheduling app, as well as switch shifts and request time off,” Scheeler said. “It sure beats the old system of paper notes.”

Like The Hub, Cliff’s Local Market also uses electronic time clocks.

“That is very helpful in terms of managing that data coming in,” said Jeff Carpenter, director of education and training for Cliff’s Local Market, which operates 19 c-stores throughout the central New York region. “I assume most larger chains are doing that today. I’ve worked with some chains that have done it through the web as well.”

He pointed out that the technology exists today to use smartphones to clock in as well, which can use geolocation to ensure employees are ‘punching in’ at the appropriate location.

On the training front, more retailers are finding computer-based training (CBT) to be a user-friendly and fast way to bring new hires up to speed.

When it comes to base-level team member training, The Hub uses Ready Training Online.

“I think it’s important that all new team members receive the same training from the same voice without skipping what the trainer may not deem important,” Scheeler said.

Currently, The Hub is looking into systems that would tie its various labor management technologies together under one system. It’s also exploring other services such as onboarding paperwork and using a team documents portal.

Asked if he saw any drawbacks to using technology in the area of labor management, Scheeler noted, “The

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obvious drawback is removing the human element of some of these tasks, however the newer generations of workers are generally all in favor of any sort of technology in the workplace.”

DIGITAL INSPECTIONS

Cliff’s also uses digital inspection tools through a partnership with MeazureUp, a digital field assessment solution. Digital inspection tools have helped, Carpenter noted, because they add more transparency, and the ability to share results electronically with stores — including pictures — as they are collected.

“They say pictures mean a thousand words,” Carpenter said. “It’s true. Being able to post those inspections afterwards for employees in the store to look back through and to see how they did as a team is excellent feedback. We encourage our managers to post those inspections publicly and share those with the team. And then also we’ll review those during monthly store meetings.”

The digital inspections can be completed via an app on a tablet or mobile phone, and inspectors can use the voice-to-text functionality by pressing the microphone button and speaking into it to leave a comment.

The app shows where and when the inspection began, finished and was submitted. And, at the end of the month, the app highlights April 2022

• CSTORE DECISIONS

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Technology | Labor Management

the highest and lowest performing c-stores.

The biggest benefits for Cliff’s have been transparency and being able to respond quickly to items that require attention.

When it comes to Human Resource Information Systems (HRIS), Cliff’s partners with Automatic Data Processing Inc. (ADP). “We’ve been building out our modules in terms of what we offer,” Carpenter said.

Historically, Cliff’s has relied on paper-based reviews, but now it’s moving to digital for reviews and other modules.

“Paid-time-off requests — all those types of things — are going to be electronically completed through that platform,” he said.

Zoom video meetings are another tool that rose to prominence during the early days of the COVID-19 pandemic. Today, Cliff’s holds monthly Zoom meetings.

“Before we found ourselves holding on to information to share with the field or big updates for quarterly meetings, whereas now we hold them monthly. It’s much easier just to get the information out and get together more frequently for a shorter period of time, which obviously works better for the managers as busy as they are in the stores as well,” he said.

APPLICANT TRACKING

As labor shortages continue, digitizing the applicant tracking and onboarding process can speed up the process.

“It helps us stay more organized and ensures we’re performing due diligence and communicating properly with all applicants,” Scheeler said.

“We utilize an organization for a job board, as well as applicant tracking and onboarding. We don’t use any paper applications here,” Carpenter said.

Cliff’s features a text-to-apply platform, which is used by the 52

CSTORE DECISIONS •

April 2022

majority of applicants. Potential hires simply text the number and they receive a link to the application.

All that information flows through the various platforms from onboarding to the HRIS through to the computer-based training.

That’s a big change considering only a few years ago, the company’s application process was paper based.

“We’ve come a long way, and it’s created a lot of efficiencies for us,” he said.

One of the big advantages of electronic applications is that applications for the entire company are visible with the click of a button. When applications were paper-based, they’d remain at the store where that individual applied.

“With a digital version, those folks can make one application and apply to multiple locations, if they so choose,” Carpenter said.

Another advantage is if one store is in need of employees and a nearby store has applications they’re not using, those applications can be quickly transferred over to the store that needs them.

Whereas some job boards feature click-to-apply, Cliff’s has assessments built into its application process, and it found that this increased vetting means the candidates who apply are more likely to be a fit and responsive when contacted.

TRENDS TO WATCH

Overall, Carpenter sees user-interfaces today becoming more userfriendly with more mobile and tablet functionality.

“I think the cell phones of today’s age

are really a PC in your pocket, and that’s what people utilize most,” he said.

Carpenter has seen that a more digital approach to employee management can improve communication by allowing the company to provide feedback more quickly, and follow up on information sooner.

To have the time necessary to build culture, provide trainings, recognize star employees and make sure employees enjoy working for your convenience store chain, it’s necessary to commit to and build efficiencies elsewhere in the HR realm, including when it comes to reporting and in different platforms using your HRIS and computer-based training, Carpenter advised.

Technology overall allows greater flexibility organizationally, and better communication with employees.

“There’s technology out there where you can send push notifications or text to your entire workforce with updates or changes.

There’s scheduling functionality around that, where if you have an open shift, you can push a text or push notification to your entire team to say, ‘Who wants to take this shift?’

That’s not something that we’re currently using, but we have looked at it, and (it) may be something (to consider) down the road at some point,” Carpenter said. “There’s so much out there that can really help expand the efficiencies of that particular department. Technology is a huge piece of that. And we expect more of it in our offices here and to improve as we move forward.” CSD

fast facts:

• Automating the applicant tracking and onboarding process can create efficiencies in hiring in this climate of staffing challenges.

•D igitizing the store inspection process can produce more transparency, better communication and quicker feedback.

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Technology | IoT & Facility Automation

IoT Can Bring Swift ROI As Internet of Things and facility automation technology advances, entry costs are dropping and functionality is expanding, saving money and raising retail revenues.

Thomas Mulloy • Senior Editor

From the cold vault to the forecourt, facility automation is made possible by the interactivity of the Internet of Things (IoT) and the data it provides. That information helps prevent costly breakdowns and increases consumers’ access to products. For a retail chain, that means more income and less expense.

“In my experience, the two areas with an immediate return on investment (ROI) in convenience retail are building performance monitoring and monitoring customer experience,” said Jeremie Myhren, a 22-year convenience retail veteran, who is now the co-founder and chief information officer of emerging technology company ONRAMP. He advised c-store operators to stay on top of IoT developments in the next few years as solutions become more cost effective, not

only for smaller chains, but for stores with a small footprint, as well.

Late adopters will be able to catch up with entry-level technology to begin to automate their stores.

Myhren cited smart shelves that display pricing and monitor inventory levels as the first line in IoT retail technology. Sensors that monitor foot traffic can help optimize merchandising as well as improve labor scheduling.

Within building performance, according to Myhren, cold chain monitoring helps reduce spoilage,

fast facts: • Facility automation alerts help prevent expensive malfunctions.

• Customer-facing tech raises personalization.

• Technology establishes a maintenance/service record for monitored equipment.

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ensures product safety, and allows asset tracking for costly not-for-sale assets like climate controls and fuel dispenser connectivity.

Customer-facing functionality includes the ability to not only keep shelves stocked with solid sellers, but to also expand inventory virtually as well as provide more options to enhance customer convenience, according to futurist Daniel Burrus, founder and CEO of Burrus Research. “You can expand your sales because you’re not limited by the current inventory that you’ve got,” said Burrus. “Depending on the kind of arrangements you have, it could even be same-day delivery — just depends on what it is that they’re buying.”

Savannah, Ga.-based Enmarket, operating 129 stores in Georgia, North Carolina and South Carolina, installs IoT and automation capability in all of its new builds, according to Peter Meyer, director of construction and facilities for Enmarket. Not only do Enmarket’s systems monitor operations, but also serve to compile a record of equipment maintenance.

“The computerized maintenance management system (CMMS) software captures all relevant

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I

service information in real time by the service providers, labor on site, materials and status of the work order,” Meyer said. “Once completed, all required asset information is updated with the repair history.”

A QR code attached to each piece of equipment allows access to its operational status via an app. Meyer noted that Enmarket is testing similar systems for its coffee equipment as well as its ice makers and refrigeration equipment, with plans for a multistore rollout.

IoT functionality extends to some of a c-store location’s most expensive and vital assets — its HVAC units.

Meyer explained that a rack system on the roof monitors the equipment 24 hours per day and provides critical alarms if operations run amiss.

“If the monitoring team can’t resolve an issue, an alarm is sent to its maintenance system, allowing the facilities team to review and evaluate what’s happening via a portal,” said Meyer. “We then determine if a service dispatch to the appropriate service provider is warranted.”

The same principle applies to the forecourt assets. Automatic tank gauges provide remote equipment and full environmental compliance monitoring. Any alarms are automatically dispatched for evaluation and response priorities.

That type of automation extends to the stores’ living exterior, as well.

Enmarket employs systems that can gauge if a location’s landscaping and shrubbery need watering.

“Similar concepts to the above items, the irrigation and flow controls have a rain sensor monitor and weather monitor based on plant and grass irrigation requirements,” Meyer said.

FUTURE IOT EXPANSION

Just over the horizon are largescale consumer augmented reality (AR) product launches, which promise to blend the physical world with AR overlays, predicted Myhren.

“We are only a few years out from customers walking into our stores with an AR layer over their vision of our physical space,” he said.

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Burrus sees IoT functionality expanding even further. Customerfacing touchscreens equipped with a camera will allow a store to personalize its offering to each specific shopper via their loyalty history and/ or facial and attire recognition that steer demographic information.

“So a guy that’s been working on, let’s say, fixing a road nearby that came in to your convenience store is going to get different offers when they’re in front of that screen than a mother with a couple kids in tow, who is pregnant,” he said.

Again, personalization will be key in developing repeat customers who feel at home shopping at a certain store or brand. Furthering that concept, Myhren advised to be on the lookout for IoT successors — the Internet of Humans and Digital Twins.

These next-level tech advancements will allow retailers and consumers to virtually recreate physical places and expand useful information that enhances the seller-buyer relationship, leading to a more free and pleasing transaction environment. CSD April 2022 • CSTORE DECISIONS

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Operations | Restrooms

What Message Is Your

Restroom Sending?

Customers can learn about how seriously a c-store values sanitation by stepping into the restrooms.

Howard Riell • Contributing Editor

Restroom cleanliness and sanitation have long been key components of growing c-store sales, but the COVID-19 pandemic made these aspects of operations more important than ever before.

The mission for c-store retailers now when it comes to their restrooms is to continue to create positive impressions in consumers’ minds — something many are doing via effective cleaning schedules and touchless fixtures and amenities.

SETTING THE TONE

Clean restrooms are important because the restroom experience is often what sets the tone for a customer’s visit. A tidy restroom signifies that a retailer takes pride in all facets of their operation. If the restrooms are spotless, shoppers understand the rest of the store is likely to be, too.

“We have a high-frequency cleaning program in place, and this helps us ensure we are keeping our customers and employees safe,” said Michele Truelove, operations vice president for 54-store, Baltimore, Md.-based High’s.

“During the pandemic we added a high-kill-rate sanitizer that was used hourly in all restrooms.”

All new restroom builds in High’s c-store locations are furnished with touch-free sinks, soap and hand dryers.

“We recently went back and began to remodel our dated restrooms to offer hand dryers and baby changing stations in both the men’s and women’s restrooms,” Truelove said. “We also added hooks on all doors for customers’ personal belongings. All restrooms are equipped with air fresheners and toilet bowl clips to provide a pleasant smell.”

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SAFE SHOP ASSURED

High’s is Safe Shop Assured certified. Safe Shop Assured third-party certification is available to businesses that meet the highest standards for appearance, sanitation, hygiene and community safety. One of the protocols for that certification is consistent restroom standards.

At High’s, managers ensure that customers will know that they will always find a clean restroom during their visit. Restrooms are checked hourly to ensure that they meet rigorous standards.

The restrooms are also cleaned from the ceiling to the floor, including all fixtures, every four hours. This is supported with a cleaning checklist that details the correct product to use on each fixture in the restroom.

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Operations | Restrooms

Automatic paper-towel dispensers are almost a given in public restrooms now. Many establishments have increased these types of touch-free options, with automatic soap dispensers and hand-sink water sensors to provide an entirely touchless experience from flush to hand drying.

“We make sure that our staff knows from day one how important restroom cleanliness is,” Truelove emphasized.

Restroom cleaning is trained during the new hire process via computer-based and on-the-job training.

“We utilize our company bulletin, which goes out weekly, to heighten awareness,” Truelove added.

The restroom cleaning checklist is also included in the shift duties checklist. Store managers do a ready-forbusiness assessment daily at all locations, and district managers are required to check restrooms during all store walks and then report their findings.

In addition to keeping up with current cleaning procedures and policies, Truelove said it is also important to consider restrooms during remodels or when planning new stores.

“Spend the money and do it right,” Truelove advised.

“In new builds, dedicate the needed space to (restrooms). Allocate the proper labor to keep them clean and appealing to all customers. Test fixtures before installing them; not all of them are the best.”

fast facts: • The state of a c-store’s restrooms gives customers insight into its overall cleanliness standards.

• Safe Shop Assured third-party certification is available to businesses that meet the highest standards for appearance, sanitation, hygiene and community safety.

• Retailers are using cleaning schedules and touchless fixtures to create a sanitary experience.

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PRIORITIZING CLEANLINESS

The way a convenience store takes care of its restrooms can tell customers a lot about the business, especially when it comes to foodservice.

“A clean restroom is a window to how that location prioritizes cleanliness,” explained Buddy Gillespie, director of culinary innovation and restaurant services for the JBH Advisory Group in New York City. “If an establishment makes the efforts to keep a public bathroom clean, smelling nice and stocked with soap and paper products, this translates to its perceived overall cleanliness standards.”

This level of regard for customers and attention to detail can instill confidence in the customer, he added.

One way convenience store operators can make their restrooms appealing is by making cleanliness schedules highly visible on walls.

“Posted cleaning schedules are more visible than ever,” Gillespie suggested. “This gives the customer a confidence that management cares about cleanliness and that the team is aware of when the last cleaning occurred.”

Automatic paper-towel dispensers are almost a given in public restrooms now. Many establishments have increased these types of touch-free options, with automatic soap dispensers and hand-sink water sensors to provide an entirely touchless experience from flush to hand drying, Gillespie pointed out.

“A digital scheduling app such as Jolt is highly recommended for management to monitor and communicate a building’s cleaning needs and schedules,” said Gillespie.

“Cleaning schedules are communicated through the app on the team members’ phones, so they can be reminded when to do a scheduled cleaning.”

Once complete, each team member enters the information into the app, and management is informed digitally that the task has been successfully executed at the store, and by whom. CSD

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CStoreDecisions .com Making Connections that Drive Business

CStoreDecisions.com is geared toward C-Store retailers, convenience store suppliers, and distributors looking to stay abreast of industry trends, new product offerings and category management best practices.

We use the latest media technology, delivering content the way you want it: print issues, digital issues, enewsletters, and videos.

Use CStoreDecisions.com to help you strengthen your peer network with social engagement through Twitter, LinkedIn, Facebook, YouTube, Pinterest, and Google+.

Browse, bookmark, share and interact with the most relevant industry content and people in the market.

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Bourbon Barrel-Aged Seltzer Two Trees Beverage Co. is introducing its new Bourbon Barrel-Aged Seltzer this spring. The new maltbased, wood-crafted seltzer will be available in sixpacks of 12-ounce cans.

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CSTORE DECISIONS • April 2022

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PRODUCTShowcase

Self-Service and Self-Sanitizing Blender One of the best-selling candy bars is now a milkshake. Consumer demand for customizable milkshakes, smoothies and protein shakes is at an all-time high.

Everyday customers use f’real’s milkshake finder to seek the brand out. Retailers can add their stores to the f’real finder and save $1,000 on a self-service and self-sanitizing f’real blender when they order today. Retailers shouldn’t wait to boost revenue with the brand of craveable and customizable frozen indulgences — including the latest addition to the f’real family: the salty and creamy f’real Snickers milkshake.

Rolled Tortilla Chip Lineup

HI-CHEW released its new Fantasy Mix, available in a whimsically designed colorful package, featuring three flavors: • Rainbow Sherbet features layers of raspberry, lime and orange flavors.

• Blue Hawaii has notes of sweet citrus and hints of pineapple.

• Blue Raspberry is both a familiar and fantasy-like offering, with a distinct true-to-flavor profile.

HI-CHEW’s Fantasy Mix provides a double layer of true-to-life fruit flavor and is made with concentrated fruit juices, natural and artificial flavors and no colors from synthetic sources. HI-CHEW Fantasy Mix is available in peg bags.

New-to-market rolled chip product, Chipoys, has expanded its growth opportunities with marketing agency Blue C. Chipoys’ line of rolled chips will first launch in convenience stores across the U.S., with the goal of expanding into big box grocers before year’s end and eventually, introducing the brand internationally in Latin American and Canada. Chipoys’ authentic rolled tortilla chips are made with premium ingredients that deliver heat and flavor in every bite. At launch, Chipoys will be sold in three flavors — Fire Red Hot, Lemon Chile and Spicy Ranch.

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Chewy Candies With Fantasy-Like Flavors

Energy Shot Gummies GummiShot announced that caffeine lovers nationwide can now purchase its long-lasting, plant-based energy gummies at over 4,000 convenience store locations. Launched in 2021, GummiShot entered the market to change the way consumers get their daily pick-me-up.

Leveraging the power of the gummy industry and the energy drinks and shots segment with a disruptive, better-for-you innovation allowed GummiShot to accomplish mass expansion rapidly through six key distributors: CoreMark, McLane, Hackney, VISTAR, Golden Eagle Distribution and Harbor Wholesale. GummiShot offers three flavors made from real fruit: Elderberry, Valencia Orange and Tropical.

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April 2022 • CSTORE DECISIONS

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PRODUCTShowcase

Frozen Oreo Desserts Oreo Frozen Treats is a new line that reimagines the classic Oreo cookie into frozen desserts. All new Oreo Frozen Treat recipes ensure the familiar and authentic taste of the real Oreo cookie flavor — including a creme-flavored base with pieces of Oreo cookies packed in. In addition to the base, Oreo Frozen Bars and Oreo Frozen Cones have coatings made from crushed Oreo wafer pieces.

Oreo Frozen Sandwiches have the creme-flavored base sandwiched between two big Oreo cookie wafers. Oreo 48-ounce and 14-ounce tubs feature the creme-flavored base packed in scoopable tubs.

Mondelēz International www.mondelezinternational.com

Lemon Cookies Due to popular demand, Tate’s Bake Shop has decided to make its previous limited-edition Lemon Cookies a permanent flavor in 2022. The light and crisp cookies can be purchased year-round.

One unit of Lemon Cookies has a suggested retail price of $4.99.

Tate’s Bake Shop www.tatesbakeshop.com

Thin Hazelnut Kit Kat The Kit Kat brand launched Kit Kat Chocolate Hazelnut Thins, a flavor spin on the classic light, crispy treat. Kit Kat Thins Chocolate Hazelnut joins the existing Kit Kat Thins lineup, which slims down the classic Kit Kat wafer into a thinner treat. Kit Kat Thins Chocolate Hazelnut adds a hazelnut flavor to a light, crispy version of the Kit Kat Thins that launched last year. This new item is available in both 3.1-ounce and 7.37-ounce bags. The item is available at retailers nationwide.

The Hershey Co. www.thehersheycompany.com

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Tequila Lime and Roasted Garlic Hot Salsas This spring, Aubrey D. Rebel is introducing two new hot salsas — The Very Hot Aubrey D. Rebel Tequila Lime Hot Salsa and Very Hot Aubrey D. Rebel Roasted Garlic Hot Salsa. The Tequila Lime Hot Salsa is filled with fresh tomatoes, tequila and freshly squeezed lime juice. The Very Hot Aubrey D. Rebel Roasted Garlic Hot Salsa is packed with chunks of tomatoes and freshly roasted garlic. The salsas are glutenfree and vegan/vegetarianfriendly. A 16-ounce jar of each carries a suggested retail price of $9.99.

Gourmet Chips & Sauces www.gourmetchip.com April 2022

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PRODUCTShowcase

Star Wars-Inspired Character Fan CandyRific expanded its line of Star Wars-themed items, featuring characters from the hit Star Wars series “The Mandalorian” streaming on Disney+. A second sculpt of the Grogu-inspired character fan is available, offering two designs of a favorite character. Customers can push the button on the fan and feel a burst of cool air. Each fan comes with 0.53 ounces of assorted fruit-flavored dextrose candies (natural flavors and colors). The new sculpt has green fan blades. It has a suggested retail price of $5.99 and ships in six 12-count displays per case.

CandyRific www.candyrific.com

Nitrogen-Infused Soda Pepsi released its new Nitro Pepsi nationwide on March 28 in two flavors, Draft Cola and Vanilla Draft Cola, in newly designed cans in both single-serve and four-pack varieties.

Nitro Pepsi is the first-ever nitrogen-infused cola that’s creamy, smooth and has a mesmerizing cascade of tiny bubbles topped off by a frothy foam head. The frothy texture is made possible by a unique widget placed at the bottom of every can. Nitro Pepsi is best served cold, ideally without ice. It is best “hard poured” or fully inverted into a tall glass.

Security Bollards Solutions

Enjoy Hemp has launched a line of four Delta-9 THC gummy experiences. Each product is formulated with a specific terpene blend to target each desired effect. The 250-milligram, 25-count gummies come in assorted fruit flavors and are available for $34.99.

• Boost — contains Sativa terpenes terpinol and alpha-pinene • Chill — an Indica terpene-infused blend • Euphoria — contains the terpenes alphapinene and limonene • Zen — contains the terpenes limonene and ocimene

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Calpipe Security has developed security bollards solutions for some of the most populated public spaces, including Times Square and the Santa Monica Pier.

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Classifieds/Ad Index ADD Systems

40

ADGA/Helix Charleys Franchise

27

800.922.0972 / www.addsys.com

2

800.43.STEAK / www.charleysfranchise.com

E-Alternative Solutions

www.EalternativeSolutions.com/Leap

GSK C-Store

Scott.F.Breisinger@gsk.com

Hoshizaki America www.hoshizaki.com

5 3, 57 7

Pop Vapor

33

Prairie City Bakery

31

Premier Manufacturing, Inc.

11

https://popvapor.com www.pcbakery.com

www.gopremier.com

Swedish Match

800.367.3677 www.zyn.com www.whiteowl.com www.generalsnus.com www.gamecigars.com

9 14-15 35 53

Johnsonville C-Store 47

47

Swisher International

68

Krispy Krunchy Chicken

67

Texas Pete

19

Liggett Vector Brands

23

TransAct Tecnologies

49

Modern Store Equipment

37

VLN

MPACT Beverage

39

SalesTeam@Vibenomics.com

North American Bancard

64

Welbilt Beverage

53

NRS Petro

34

Xcalibur International, Ltd.

41

www.Cstore.Johnsonville.com 800.290.6097 / www.krispykrunchy.com 877.415.4100

877.532.8433 / sales@modernstoreequipment.com modernstoreonline.com/cstore 832.559.8633 / salesmpactbeverage.com / www.mpactbeverage.com 866.481.4604 / www.nynab.com 888.260.0112 / www.nrspetro.com

800.874.9720 / www.swisher.com TexasPeteFoodservice.com/SimpleAs boha@transact-tech.com / www.transact-tech.com/cd

Cover

TryVLN.com

Vibenomics

103

877.375.9300 / www.welbilt.com

Clean and safe

shouldn't be a secret Much of the hard work keeping stores clean and safe happens behind the scenes, and it isn't always apparent to customers. Communicate better with Safe Shop Assured™ certification.

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cstoredecisions.com

April 2022 • CSTORE DECISIONS

65

IndustryPerspective

What Did COVID Teach Us

About Employee Management?

Employee management has evolved due to the COVID-19 pandemic, with many changes potentially here for the long term.

John Matthews • Gray Cat Enterprises

Well, we didn’t see that coming!

How many of us would have predicted that for the better part of two years, the entire planet has had their professional lives turned upside down due to the COVID-19 pandemic. From industries that were shuttered to millions of us forced to work remotely, our work lives have been in a constant state of upheaval.

Yet here we are. The survivors. The adapters. And now, we need to be the trendsetters.

So, what did we learn about employee management during the pandemic?

Better flexibility and trust are required: Managers must begin to rethink the employee experience. Our c-store staffs have been battling all the same challenges as remote workers regarding childcare, school closures and other pandemic-related issues all while still coming into work for an essential industry.

The strains on this group of employees have been unrelenting, and increasing pay and benefits can only go so far.

Managers need to be extremely nimble in ensuring that the front-line team is well-respected, appreciated and that they feel safe. Flexibility and trust have always been fantastic attributes of a manager, and now the post-pandemic manager will be required to ratchet up these skill sets.

More one-on-one employee coaching is needed: It is not all one-size-fits-all when it comes to managing your team, especially when teammates are in different working environments. In one of my current interim executive management roles that I have with one of my clients, I am managing eight employees all working from home in three different states. In addition to weekly team Zoom calls, I schedule monthly one-on-one Zoom meetings to ensure that I can adequately address the individual needs of each employee.

Employee wellness may have morphed: Perhaps a silver lining is that companies have had to adapt to a changing environment in a compressed time period. In a recent employee experience study, McKinsey found 66

CSTORE DECISIONS •

April 2022

that “employees working remotely see more positive effects on their daily work, are more engaged and have a stronger sense of well-being than those in nonremote jobs with little flexibility do.”

The pandemic has accelerated the need for companies to offer more flexibility to create greater employee wellness to stay competitive with their workforce.

Improved technology skills are a must: In 2019, I flew 174 flights and 200,000 miles on business-related work.

Those days are over. I will be surprised if I pass 25,000 miles this year. Fortunately, as a sole-proprietor, I have had to hone my technology skills over the years of flying to continue to bring value to my clients.

The same goes for larger companies. Management and employees will need to embrace technologies like Microsoft Teams and Zoom to be able to prosper in their current roles.

There have been several outside influences that have occurred over time that have accelerated paradigm shifts in our professional lives. The pandemic has introduced remote work, less travel, the potential of four-day workweeks and a need for better technological skills, in a very compressed timetable.

This has tested management and employees on how quickly they can adapt to some pretty unprecedented times. From a professional standpoint, history may show that the pandemic created more change in the way we do business then in any previous two-year time period.

John Matthews is the founder and president of Gray Cat Enterprises Inc., a strategic planning, operations and interim general management firm that specializes in helping businesses grow in the restaurant, convenience and general retail industries.

With more than 25 years of senior-level experience in retail and a speaker at retail-group events throughout the U.S., Matthews has recently written “Game-Changing Strategies for Retailers,” which is available on Amazon. In addition, he has two step-by-step manuals, “Local Store Marketing Manual for Retailers” and “How to Stage a Killer Grand Opening!” which are available at graycatenterprises.com.

cstoredecisions.com

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