CStore Decisions January 2024

CStoreDecisions

®

Solutions for Convenience Retailers

featuring:

The 2024

Social Media

Awards p. 26

EV ADOPTION

Joel Hirschboeck, GetGo’s SVP of fuel, executes the chain’s EV strategy, which includes a proprietary charging network.

STILL A LONG GAME Electric vehicles offer c-store retailers an opportunity to expand their customer base and promote sustainability, but questions on customer adoption, infrastructure, timeline and profitability remain.

PLUS

Legislation Looms for Tobacco p. 36

Tackling Inflation in C-Stores

p. 48

January 2024 • CStoreDecisions.com

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EDITORIAL

LEADERSHIP TEAM

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EDITOR EMERITUS John Lofstock

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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 Olivia Beck • Operations Beck Suppliers Inc. • Fremont, Ohio 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 Vernon Young (Board Chairman), President and CEO Young Oil Co. • Piedmont, Ala. Joy Almekies, Senior Director of Food Services Global Partners • Waltham, Mass.

Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo. Greg Ehrlich, President Beck Suppliers Inc. • Fremont, Ohio Doug Galli, Real Estate/Government Relations Reid Stores Inc./Crosby’s • Brockport, N.Y. 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. Robin Hunt, Sales Hunt Brothers Pizza • Nashville, Tenn.

Kyle May, Director External Relations Reynolds Marketing Services Co. • Winston-Salem, N.C. Steve Yawn, Director of Sales McLane Company Inc. • Temple, Texas

2023

2011 - 2020

Leading Through Innovation

SILVER REGIONAL AWARD

2023

YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD

SILVER REGIONAL AWARD

Kalen Frese (Board Chairman), Director of Merchandising Warrenton Oil Inc. • Warrenton, Mo.

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Jeff Carpenter, Director of Education and Training Cliff’s Local Market • Marcy, N.Y.

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Megan Chmura, Director of Center Store GetGo • Pittsburgh Ryan Faville, Director of Purchasing Stewart’s Shops Corp. • Saratoga Springs, N.Y.

Copyright 2024, 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.

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Cole Fountain, Director of Merchandise Gate Petroleum Co. • Jacksonville, Fla. Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas

CSTORE DECISIONS does not endorse any products, programs or services of advertisers or editorial contributors. Copyright© 2024 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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CSTORE DECISIONS •

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CONTENTS January 2024

•

Number 1

•

Volume 35

CStoreDecisions

®

FRONT END

8 Editor’s Memo: New Year, New Opportunities 10 Quick Bites: Trends to Watch in 2024 12 NATO Update: 2024 Tobacco Legislative and Regulatory Outlook SPECIAL REPORT

26 The 2024 Social Media Awards CATEGORY MANAGEMENT

36 Legislation Looms for Tobacco FOODSERVICE

42 Breakfast Rules OPERATIONS

COVER STORY

48 Tackling Inflation in C-Stores

16 E V Adoption Still a Long Game E lectric vehicles offer c-store retailers an opportunity to expand their customer base and promote sustainability, but questions on customer adoption, infrastructure, timeline and profitability remain.

26 6

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CSTORE DECISIONS •

January 2024

BACK END 52 Product Showcase 57 Ad Index 58 Industry Perspective: Homing in on Loss Prevention

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Editor’s Memo For any questions about this issue or suggestions for future issues, please contact me at edelconte@wtwhmedia.com.

New Year, New Opportunities As we enter 2024, c-store retailers and customers alike are keeping an eye on inflation and the economic outlook for the year.

As this month’s operations article, “Tackling Inflation in C-Stores,” points out, while inflation has slowed from its high of 9.1% in June 2022 to 3.1% in November 2023, customers seem to be feeling the effects of consistently rising prices now more than ever. C-stores face the tricky balancing act of appealing to price-conscious customers with loyaltyprogram promotions and value deals while they themselves grapple with price increases across all areas of business from foodservice ingredients and products to staffing.

What’s more, inflation is one more thing impacting fuel demand — as customers have less discretionary spending power, they’re taking fewer trips. High gas prices and the rise of fuel-efficient vehicles are also contributing to lower gas demand, according to the Energy Information Administration’s November report.

As stores look to grow in the new year, the ongoing decline in fuel demand as well as shifts around electric vehicle (EV) charging are top of mind for many retailers.

This month’s cover story, “EV Adoption Still a Long Game,” shares the outlook for EV as well as the barriers to entry and key considerations for retailers deciding whether to enter the playing field. An aggressive outlook forecasts the percentage of zeroemission vehicles in operation by 2035 could reach 16.5%, while a conservative view paints the percentage as closer to 5.6%, according to Transportation Energy Institute research. But retailers must weigh numerous factors before diving into EV, from the costs to their location and customer base.

GET SOCIAL

For stores looking to reach new customers in 2024, social media is a crucial avenue. This month’s “The 8

CSTORE DECISIONS •

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January 2024

2024 Social Media Awards” highlights the chains performing best across social media platforms and the trends to adopt if c-stores want to be successful in the new year. Hint: Video is more important than ever, from reels to TikToks, and it’s key for breaking through algorithms to ensure your content is seen, according to Blair Feehan, content marketing, Rival IQ, a Quid Company, which powered this year’s social media awards.

BURNING ISSUES

Other key issues on retailers’ minds as the ball drops on 2024 are navigating labor management challenges — particularly recruitment and retention; the rise of artificial intelligence (AI) and how c-stores can and should adapt; and how to best market c-store food programs for success, as c-stores begin to compete with quick-service restaurants on the food front.

These topics and more will be under discussion at the upcoming NAG Convenience Conference, set for March 10-13 in Tampa Bay, Fla., where retailers will converge to network and share ideas with other small to mid-sized c-store chains. For more info check out the agenda on p. 34.

This year, NAG is celebrating its 40th anniversary. The conference is best known for its information exchanges, where retailers meet with non-competing chains to discuss how to navigate key challenges and opportunities. Attendees will also have the opportunity to select from seven burning issue breakout sessions on topics ranging from security and risk as a small operator to winning the customer as trip drivers evolve.

Retailers can register at NAGConvenience.com. I look forward to seeing you in sunny Tampa Bay this March!

Erin Del Conte

cstoredecisions.com

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QUICKBITES TRENDS TO WATCH IN 2024 As retailers ring in the new year, they’re keeping an eye on customer shopping and spending habits from traffic drivers to private-label demand.

TOP PURCHASES IN C-STORES

CONSUMERS WANT CONVENIENCE

As mentioned in the "Ready-to-Eat" report from Good Natured, more consumers are going for prepared food items. A survey of 1,000 U.S. adults aged 18 to 64 years for the report found that:

Based on PDI Technology and GasBuddy's "Tracking Convenience" report, the top purchases consumers make in c-stores are:

35

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30

25

25

26%

20

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19%

15

10

10

10%

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Cigarettes

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Source: PDI Technology and GasBuddy's "Tracking Convenience" report, November 2023

MOST POPULAR REASONS FOR VISITING C-STORES 35

According to a survey of 1,032 U.S. adults aged 18 and over by NCSolutions, the most popular reasons consumers visit c-stores are:

33%

30

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19% of respondents prefer prepared food for smaller portion sizes.

21% of respondents prefer prepared food to save on costs.

40% of respondents prefer prepared food to save time.

70% of respondents prefer prepared food because it's convenient.

Source: Good Natured "Ready-to-Eat" report, November 2023

ARTIFICIAL INTELLIGENCE IS IN DEMAND More consumers are starting to be interested in using artificial intelligence (AI) when shopping.

Based on a survey of 2,338 respondents in PYMNTS’ “Consumer Inflation Sentiment” report: 44.2% of consumers are at least somewhat interested in using AI when shopping.

21.1% of consumers are slightly interested in using AI when shopping.

34.6% of consumers are not at all interested in using AI when shopping.

Source: PYMNTS “Consumer Inflation Sentiment” report, September 2023

25

25%

20

24% 20%

15

STORE BRANDS CONTINUE TO THRIVE

More Gen Z consumers are starting to purchase more store brands. According to PLMA's "Consumer Research"report:

10

64% of Gen Z customers buy store brands often or frequently.

56% of Gen Z shoppers like to try store brands to find the best value.

51% of Gen Z customers choose a place to shop due to its store brands.

41% of Gen Z shoppers buy store brands to cope with inflation.

5 0

To make impulse buying decisions

To roam To find new c-store products aisles for and flavors inspiration to try

To purchase a product featured in-store

Source: NCSolutions "Consumer Sentiment" survey, October 2023

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January 2024

Source: PLMA's "Consumer Research" report, November 2023

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FRONT END NATO Update

2024 Tobacco Legislative and Regulatory Outlook Retailers are watching the Food and Drug Administration and Congress as well as local and state legislatures as tobacco regulation looms.

David Spross • NATO

12

With 2023 in the rearview mirror, 2024 will continue to be a very dynamic year in the tobacco legislative and regulatory landscape within all levels of government.

of Tobacco Outlets (NATO) met with representatives from OMB, the Executive Office of the President, FDA and the Department of Health and Human Services advocating that these rules not be finalized because:

CTP SHIFTS MENTHOL DECISION DEADLINE With the recent announcement that the Food and Drug Administration (FDA) Center for Tobacco Products (CTP) will not publish final rules to ban menthol cigarettes and characterizing flavors in cigars until at least March 2024, stakeholder meetings will continue with the Office of Management and Budget (OMB) through at least Jan. 18, 2024. These meetings occur in step eight of the nine-step federal rulemaking process. During the review process, OMB evaluates whether to clear the rule for final publication or send it back to FDA for further review.

In early December, the National Association

• They would have a substantial negative economic impact on reputable, licensed and regulated retail businesses; • They would severely negatively impact government revenues and the public programs they fund; • They would result in significant unintended consequences, including the fact that the supply of these products will shift from licensed and regulated retailers to an already flourishing illicit market; and • Licensed and regulated retailers, like NATO’s members, sell tobacco products responsibly and follow all laws and regulations, which already prevents youth access to menthol cigarettes and flavored cigars.

CSTORE DECISIONS • January 2024

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FRONT END NATO Update

CTP has stated that finalizing these rules remains a top priority for the agency. If these rules are finalized, they will likely not take effect for at least one year following publication. Anticipated industry challenges in court could further delay (or altogether prevent) their implementation.

Other issues that CTP will focus on in 2024 include continuing to process premarket tobacco product applications (PMTA) and prioritizing enforcement around illicit vapor products. Additionally, CTP has recently announced that it intends to publish in April 2024 a proposed rule to reduce nicotine levels in cigarettes, but the agency rarely meets these timelines. Regardless, this will involve a multistep process that will span many years before the rule takes effect (if at all).

EYES ON CONGRESS Two separate pending bills would substantially increase the federal excise tax on all tobacco products: the “CARE for Moms Act” and the “Tobacco Tax Equity Act of 2023.” However, passage of these bills appears unlikely due to gridlock caused by a Republican-controlled House and a Democrat-controlled Senate.

Further, Congress will likely continue to pressure CTP to bring regulatory order to the vapor marketplace by finishing the PMTA review process and implementing an effective enforcement plan around illicit vapor products. Recently, members of Congress sent a letter to FDA Commissioner Robert Califf asking for a status report on the PMTA applications and on FDA’s steps to prevent the importation of illegal vapor products.

STATE OUTLOOK Some 46 state legislatures (i.e., all but those in Montana, Nevada, North Dakota and Texas) will hold legislative sessions in 2024. Like every year, approximately 20 states will likely consider tobacco excise tax increases with inflation affecting the economy and the termination of federal COVID-19 assistance funds. Over the last two years, almost all of these proposals have failed as only New York has increased its cigarette tax.

Additionally, at least a few of the 18 states that do not currently tax vapor products will consider levying excise taxes on the category.

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CSTORE DECISIONS • January 2024

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Approximately 15 states will likely consider some form of flavored tobacco product ban. After California enacted its statewide flavor ban late last year, neighboring states such as Oregon and Washington have considered bills and may do so again in 2024. Northeast states that surround Massachusetts, the first state to enact a flavor ban, will also likely consider proposals. Lastly, Michigan has already introduced a bill that would ban flavors and also substantially increase all tobacco excise taxes.

LOCAL OUTLOOK In the past five years, local activity has increased dramatically as many major cities have implemented flavor bans. Given the progressive nature of many such jurisdictions’ tobacco policies, this trend will likely continue in the new year.

In 2024, NATO will remain engaged in each of these issues and at every level of government to help protect its retail members and inform legislators of the unintended consequences of these proposals. NATO is proud to serve its retail members as well as communicate to legislators and regulators how its members sell tobacco products responsibly and in compliance with all laws and regulations.

David Spross is the new executive director of the National Association of Tobacco Outlets (NATO), a national retail trade association that represents more than 66,000 stores throughout the country. He comes to this position with 23 years of tobacco industry experience previously working in the government affairs departments at UST Inc. and at Reynolds American.

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Cover Story / EV

EV ADOPTION STILL A LONG GAME Electric vehicles offer c-store retailers an opportunity to expand their customer base and promote sustainability, but questions on customer adoption, infrastructure, timeline and profitability remain.

Emily Boes • Senior Editor

The past year has seen shifting trends in gas demand and fluctuating oil prices, inflation increases, a federal push for electric vehicle (EV) adoption and charger implementation, and growth in biofuel usage. These factors have all contributed to the fuel landscape in 2023 and its trajectory for 2024.

Since one of the biggest draws bringing customers into the convenience store space is the need for fuel, c-store retailers are keeping abreast of news and trends regarding what the fuel environment looks like today and where it’s heading.

BREAKING INTO EV

EV adoption is one of the bigger topics of interest for c-store operators as they consider how to improve the forecourt.

The percentage of zero-emission vehicles in operation by 2035 is forecasted to be 16.5% with an aggressive outlook, whereas a conservative lens

16-25_CVR_EV Fuel copy (1).indd 16

has a forecast of 5.6%, according to Transportation Energy Institute research.

For those retailers that have entered the playing field, they have taken multiple pathways.

Madison Heights, Mich.-based c-store chain My Stop launched its own line of EV chargers. “(It was) in response to the urgent need for sustainable transportation solutions. Our commitment to environmental responsibility, coupled with the rising demand for EVs, technological innovation, market opportunity and government incentives, prompted us to contribute to the growth of the EV charging infrastructure,” said Julian Hanna, director of operations for My Stop Convenience and Petroleum, which has nine stores in Michigan.

Hanna believes c-stores with EV chargers can attract a new customer base and more partnership avenues; he noted the addition positions c-stores as progressive.

Pilot Travel Centers LLC, whose footprint includes 870-plus locations across the country, is one chain leading the charge on EV adoption.

Pilot is committed to building a coast-to-coast EV charging network given the company’s belief that the number of EVs on the road is rising and its expectation that the trend will continue.

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Cover Story / EV

Share of Zero-Emission Vehicles (ZEV) in Operation

“The decision to make this move was relatively straightforward — we are here to meet drivers’ needs, and those needs are becoming increasingly electric,” said Matt Dunn, head of mergers and acquisitions at Pilot Travel Centers LLC. “With our travel centers located along all major highways and interstates, we have a unique opportunity to provide EV drivers with a better, more convenient charging experience that increases range confidence to take longer-distance trips.”

In 2012, Altoona, Pa.-based Sheetz installed its first EV charger in Pennsylvania, and today it offers a total of 683 EV chargers at 99 of its 700 stores in six states, with plans to open chargers at a 100th location soon.

Trevor Walter, vice president of petroleum supply management at Sheetz, said opportunity exists to attract customers to its stores with EV chargers in areas where charging options are limited — particularly since many potential consumers cite range anxiety as a concern.

Pilot Travel Centers LLC plans to have 200 locations equipped with EV chargers by the end of 2024.

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CSTORE DECISIONS •

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January 2024

EV LEGISLATION

Another factor to consider is the Biden Administration’s previously announced goal for federal vehicle acquisitions to be 100% zero emission by 2035. California furthered the zeroemission agenda by stipulating that all new cars and light trucks sold in the state need to be zero emission by 2035.

At least 13 states have adopted a version of California’s standards to transition new car sales to electric as opposed to gasoline by 2035.

“I think (more states adopting California’s policy) sends a dangerous message because California is a special exception in the Clean Air Act — they do their own thing.

And there’s a provision in the Clean Air Act where other states can emulate California, but they have to emulate California exactly,” said John Eichberger, executive director of the Transportation Energy Institute.

Eichberger noted that these states adopting California’s 2035 zero-emission vehicle mandate aren’t investing the money on infrastructure that California is that’s needed to reach the goal.

“And so they have this mandate that they’ve just adopted by rule that they are not prepared to support. First of all, California is not going to make their goal either. I’m 100% confident of that, but they’re going to have a much better shot at making their goal than any of these other states because the other states don’t have the resources,” he continued.

Eichberger believes many of these states are going to have to rethink their approach.

Eichberger is not the only person who questions the likelihood of California reaching its mandate. Phil Near, president of Jump Start Stores, which operates 26 stores in Kansas, remains skeptical.

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Cover Story / EV

Jump Start offers its customers a variety of fuels, including E-10, E-20, E-30 and E-85, at its forecourt.

“There’s not enough electricity produced in California today to meet their mandates,” Near said.

Ed Collupy, president of Collupy System Solutions LLC, said he expects states will make progress in following California’s lead, but he also acknowledged that whether or not they can follow to the same degree is “always a bit of guesswork.”

Joel Hirschboeck, senior vice president, fuel, GetGo, recognizes the hype that exists with EV evolution, but he doesn’t believe execution matches it.

“As progress toward improved charging infrastructure marches on, the consumer sentiment for EV remains tentative. EV sales continue to increase but remain a very small portion of total vehicle sales today,” he said.

GetGo operates over 260 locations in five states. The chain currently has 14 locations that have EV directcurrent-fast-charger charging stations. Additional GetGo stores are under different stages of development with both the chain’s proprietary charging station network and Tesla super charging stations.

“As a company, we believe ‘markets’ not ‘mandates’ are the best way to determine EV’s long-term viability,” Hirschboeck continued.

Additionally, he suspects that the nation’s energy policies, including EVs, will be a significant topic of debate among candidates during the election year.

One of the largest concerns among those looking to reach a certain EV goal, however, may be the strength of the electric grid.

“What’s happening with energy utilization at the moment is the demand is switching from liquefied product to the grid, and that’s by way of EVs. So EVs are substantially drawing more from the grid, and that will be amplified as more demand happens for commercial charging locations. …” said Matt Beale, partner at W. Capra Consulting Group.

Another concern for the states pushing for an uptick in EV drivers is both the demand on utilities and supply chain constraints.

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January 2024

“EVs are still going to have a huge play in the market.

It’s going to take time, which is a good thing because the utilities are struggling to build the infrastructure. There’s a back order on a lot of necessary equipment,” said Eichberger. “For the convenience industry, the slowdown of EV adoption is a good thing because it gives them more time to get themselves prepared.”

Despite potential setbacks, many are pleased with a federal push for EVs. Hanna, for example, noted federal involvement is a positive step in terms of sustainable transportation.

“Governments, including the U.S., are recognizing the environmental benefits of EVs in mitigating climate change and reducing air pollution,” said Hanna. “Financial incentives, regulatory support and international collaboration are integral components, fostering a holistic approach to drive the transition from traditional internal combustion engine vehicles to cleaner and more sustainable EVs.” “Overall, the federal push for EVs signifies a commitment to a greener future and the realization of long-term environmental and economic benefits,” he continued.

Sheetz, too, looks forward to working with the federal and state governments to expand its EV charging footprint.

“As a company, we think having the support of federal and state entities will go a long way in expanding the popularity of electric vehicles and expanding the reach of charging access,” said Walter.

BARRIERS TO ENTRY

C-store retailers considering EV charger implementation must not only examine the advantages but also any obstacles in their path.

“The biggest barrier for entry is cost. There are concerns from retailers about profitability and the total costs associated with the infrastructure of EV charging,” said Walter. “For example, charging multiple vehicles at once at a store could cost the operator a large amount in supplemental fees or demand charges. Additionally, there are utility fees and initial capex costs associated with EV charging.”

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Anticipating the high costs of developing an EV infrastructure, the Biden Administration offers federal funding programs such as the National Electric Vehicle Infrastructure Formula Program (NEVI) and the Discretionary Grant Program for Charging and Fueling Infrastructure.

NEVI provides funding to states to strategically develop an EV charging infrastructure along alternative fuel corridors, followed by publicly accessible locations or other public roads.

“NEVI and other programs offered by federal and state governments to increase EV charging infrastructure are critical due to the high cost of investment. Without these incentives, these projects are not viable. These incentives should exist to solidify this emerging market,” Hirschboeck stated.

Pilot is one chain that has been able to grow its EV charging footprint with the help of NEVI. “We’ve found significant value and support in having partners like General Motors and EVgo, as well as public/ private partnerships like NEVI, to help us tackle building an EV network,” said Dunn.

Pilot had around 25 EV charging locations publicly available by the end of 2023 and plans to have 200 locations equipped with EV chargers by the end of 2024. The chargers in its network can deliver up to 350 kilowatts, and the EVs will be about 80% charged in 20 minutes.

“Our ultimate goal as part of the collaboration with General Motors and EVgo is to offer fast-charging stations at 500 of our Pilot and Flying J locations,” said Dunn.

C-stores not located on major highways, however, may struggle more to find funding.

Collupy noted that during a Convenience Technology Vision Group (CTVG) meeting, one of the group’s 22

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January 2024

members commented that their chain was not selected for grant funding for EV charging.

“The interstate or major highway corridors is where most of the funding for EV charging units has been going. … Their stores are not sitting along the highway in other areas, so they feel like they didn’t win because of where their stores are located,” said Collupy.

However, the chain can try again with the next round of funding requests in their state, according to CTVG. EV MARKET TRAJECTORY

While considering entry, c-store retailers need to be thinking about where the EV market is, not just in the present, but years in the future.

“We’ve been presented with these aspirational forecasts and aspirational goals that I’ve always called way too aggressive — the market just can’t support it,” noted Eichberger. “And now we’re starting to see that come into fruition. That those huge goals … just probably aren’t attainable, but we’re still selling more EVs, and so the market share’s growing.”

The U.S. is at a roughly 1.2% national average for market penetration of EVs to the rest of the fleet, according to Eichberger.

Hirschboeck expects an increase in the number of EVs sold in the market with scale, which will grow the potential revenue the charging stations generate, even if the number of EVs on the road today are still a small percentage.

“Though still emerging, we are anticipating the market will grow multifold over the next five years, with EV tax credits driving continued expansion. There is also a path toward universal charging that will allow more customers to use a variety of chargers, reducing customers’ range

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Sheetz installed its first EV charger in Pennsylvania in 2012. Today, the chain offers a total of 683 EV chargers at 99 of its stores, with plans to open chargers at a 100th location soon.

anxiety and making the charging process much simpler,” said Hirschboeck.

Sheetz’ Walter agreed that EV popularity will eventually increase, as will the opportunities for c-stores to “get in front of this population.”

Eichberger still encourages convenience retailers to consider their current markets and what they’ll look like in five to 10 years. “(Retailers need to) plan their forecourt decisions based upon what their market is going to do, not what the national trends are going to do, but what the drivers and their communities are going to do. That’s the only way they can be assured they’re going to be able to make money on installing the chargers,” he said.

EV ALTERNATIVES

Although the conversation surrounding EVs remains strong, other options exist to retailers looking to diversify their fuel offerings.

“Biofuels represent a promising avenue in the pursuit of more sustainable and environmentally friendly fuel alternatives. Embracing a diversified fuel setup on the forecourt is essential for reducing reliance on conventional fossil fuels and mitigating the environmental impact of transportation,” said My Stop’s Hanna.

Alongside conventional fuels, My Stop offers customers a blend of biofuels derived from renewable sources, including plant-based feedstocks or waste materials.

Pilot also offers alternative fuel options, such as unleaded 88, E-85, biodiesel, hydrogen, compressed natural gas and liquefied natural gas.

And the needs of its customers continue to evolve, as evidenced by California, which has more legislation on the transportation industry’s environmental standards and whose residents are more interested in alternative fuels, noted Dunn.

Jump Start has E-10, E-20, E-30 and E-85 available with the Dover Fueling Solutions Anthem UX platform on its Wayne Ovation fuel dispensers.

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January 2024

“The thing that we like about those products is they have less tail pipe emissions, and they give consumers a choice. In our part of the country, we feel like that’s the future,” said Jump Start’s Near.

Near said that while it’s a slow education process for consumers regarding biofuels, awareness is growing.

“I think in the current stage, it comes back to reducing the carbon footprint, reducing emissions for the fuels we sell today. I think that’s where we can make an impact today as we watch and see what happens with the EV world,” he said.

GetGo provides E85, renewable natural gas and biodiesel minimally across its footprint.

“Biofuels are a critical component to near-term reductions in carbon dioxide, and they play a role in our sustainability initiatives. We are actively searching for opportunities to enhance our biofuel offerings even further,” said Hirschboeck.

Hirschboeck recommended other c-store retailers revitalize their interest in renewable fuels.

“Regardless of the pace of (EV) adoption, there are still 250 million internal combustion engine-powered vehicles on the road that will take decades to replace. If the goal is to use EVs to achieve zero emissions, the bridge to get there may be through renewable fuels,” he said.

Apart from biofuels, one avenue W. Capra’s Beale sees as a potential alternative is the use of hydrogen.

“The idea that I’ve been playing with and generating some support in the industry for is large-scale hydrogento-electricity conversion,” said Beale.

Beale’s concern that EVs and other projects require too much from the electric grid, especially with states such as California making a large push for EV implementation, has led him to contemplate putting some of the power demand back onto liquefied products.

“Using hydrogen to convert to electricity to charge the batteries that charge the trucks means that demand doesn’t sit with the grid and everyone wins. And c-stores know how to move liquefied energy around. That’s what

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they’ve been doing since inception,” he said.

Beale acknowledged hydrogen power has its complications, but he also noted that oil companies are now investing in hydrogen-powered trucks.

“You just put the hydrogen directly into the truck and use it instead of diesel. …” he said. “You can use that hydrogen directly, but then you can also electrify the hydrogen and charge electric vehicles with it as well. So the one fuel source provides (for) two needs. … When you burn (hydrogen), it produces water — it doesn’t use any carbon.”

Beale revealed that a few substantial white hydrogen pockets have been discovered in Europe and the U.S. FUEL DEMAND

While retailers debate adding EV, alternative fuels or both to their forecourts, they are still monitoring gasoline demand.

Hirschboeck has noticed the impact of inflation on fuel demand, considering that it remains soft nationally despite the average price of gas being significantly lower than the country saw in the summer of 2022.

As of Dec. 14, the national average for a gallon of gas

was $3.10, according to AAA. “I think it will be a soft winter for demand, but hopefully people will be ready to hit the road this summer,” he said.

Walter, too, has logged the influence of inflation on the fuel industry.

“The U.S. Energy Information Administration projects gas prices to rise slightly in 2024 as global production slows and that gasoline demand is expected to drop on a per capita basis to levels lower than those recorded before the pandemic,” he said.

However, Walter deems it worth monitoring the remote work landscape in 2024, as fuel demand will increase if more employees are required to go back to the office.

Hanna believes the fuel industry will see a positive 2024 “fueled by high oil prices, increasing demand and strong financial position. Upstream companies are expected to maintain investment levels, leading to increased production and potential supply growth. Air travel recovery will also boost demand for jet fuel. While macroeconomic uncertainties and geopolitical tensions remain concerns, the industry is expected to have a solid year overall.” CSD

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January 2024 • CSTORE DECISIONS

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Social Media Awards

The 2024

Social Media

Awards

CStore Decisions celebrates the c-store chains standing out on social media and points to best practices for maximizing engagement in 2024.

Erin Del Conte • Editor-in-Chief

CStore Decisions, for the 12th consecutive year, is recognizing the convenience store chains performing best on social media platforms.

This year we looked at performance across Facebook (FB), Instagram (IG), X — formerly Twitter — and TikTok.

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For the fourth year in a row, CStore Decisions partnered with Rival IQ to determine the winners.

Rival IQ, a Quid Company, is a social media analytics software company that helps brands measure their social media engagement and benchmark their performance against their competition and their broader industries.

Rival IQ looked at the social media performance of 70 convenience store chains across the aforementioned platforms —FB, X, IG and TikTok — between Nov. 1, 2022, and Oct. 31, 2023.

“Using this data and a weighted formula, we generated an overall engagement ranking for each store,” explained Blair Feehan, content marketing, Rival IQ. “The top-ranked convenience stores on social media have high engagement rates with average or better audience size and posting volumes.”

Overall Rank Across Platforms

BEST OVERALL PERFORMANCE

about its strategy. Paige Geary, digital marketing for Kwik Trip Inc., noted the chain’s strategy of creating and posting engaging, relatable content that helps it spread brand awareness and build a loyal fan base has remained relatively consistent over the past few years.

“This past year, our team has definitely pushed our creativity by including a bit more promotional content than in past years,” Geary noted. “While it’s a challenge at times to make these key business initiatives entertaining, we’ve found success in using our established witty, humorous brand voice to help push commodity sales and sweepstakes through graphic and video content. A large component of this shift has been allocating more time for our team to be present at events to capture content as well as coordinating video shoots

For the fourth year running, Kwik Trip claimed the top spot on the social media awards in the overall category, and it’s no surprise considering the chain’s commitment to driving social media engagement.

“Kwik Trip consistently does so many things right on social year after year: it creates dynamic, channel-specific content that engages its way-above-average follower counts to earn impressive engagement rates and totals that other cstores just can’t beat,” Feehan said.

“The brand benefits from years of hard work engaging followers to deliver fun and sassy posts that just always hit.”

CStore Decisions caught up with Kwik Trip, which operates 850 locations in Wisconsin, Minnesota, Iowa, Michigan and Illinois, to learn more

1. Winner: Kwik Trip 2. Runner up: Kum & Go 3. Stewart’s Shops 4. 7-Eleven 5. QuikTrip 6. Buc-ee’s 7. Wawa 8. Sheetz 9. Maverik 10. Daily’s

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to showcase sweepstakes prizes.”

Runner up, West Des Moines, Iowa-based Kum & Go, which came in third place overall last year, edged past Ballston Spa, N.Y.-based Stewart’s Shops into second place, with strong performances across FB (sixth place), IG (fourth place), X (third place) and TikTok (second place).

New to the top 10 this year is Altoona, Pa.-based Sheetz, thanks to its strong finishes across each of the four channels.

“The brand really shined on FB, where their engagement increased consistently month over month all year,” Feehan said.

Sheetz, which operates 700 locations across Pennsylvania, North Carolina, Virginia, West Virginia, Ohio and Maryland, also came in fifth place overall on TikTok by staying on top of trending sounds and memes, which, Feehan noted, helped it rise in the rankings. Of note, Sheetz dipped a little on X and IG, but still finished strong, “reminding us that you don’t have to improve everywhere to earn top marks on social,” Feehan added.

January 2024 • CSTORE DECISIONS

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Social Media Awards

PERFORMING BEST ON FACEBOOK

The Pilot Co., which operates 800 locations in 44 states and five Canadian provinces, has again claimed the top spot on FB for the second year in a row.

“Unlike other c-stores we looked at, The Pilot Co. isn’t relying on an enormous follower base or tons of posts per week to win big on Facebook,” Feehan said. “Pilot’s success on FB comes down to content that really resonated with fans and strategic use of boosting to rake in the engagements this year.”

Pilot isn’t as sassy as other c-stores on social media, Feehan pointed out.

However, the chain’s mix of content that spans holiday posts, photos of food offerings, giveaways and lots of content around National Road Trip Pilot’s annual Road Warrior camDay resonated with fans. paign was another key touchpoint “Its post wishing followers happy between Pilot and its fans. holidays on Christmas Eve (in 2022) “We asked our community to nomiearned more engagements than nate a ‘road warrior’ in their life and any other FB post in the landscape,” read through hundreds of nominaFeehan said. tions to pick our winners. It’s always “By intentionally producing more an honor getting to share the stories engaging, relevant content to our that come from that campaign,” Minfollowers, we have seen this page gie said. consistently grow throughout 2023,” Mingie also pointed to the chain’s said Lindsey Mingie, manager of “Hauliday Giveaway,” which allowed social media at Pilot Travel Centers the brand to shine through witty, LLC. “Our National Road Trip Day humorous content. giveaway was a great moment in time Mingie’s favorite FB post of the where we interacted with our guests year was the chain’s Road Warrior in a big, unconventional way to kick grand prize winner announcement. off the summer travel season.”

The team even flew out to coordinate

Top 5 Performers on Facebook 1. Winner: The Pilot Co. 2. R unner up: Kwik Trip 3. Stewart’s Shops 4. Rutter’s 5. Buc-ee’s 28

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January 2024

a surprise presentation for the winner.

“We not only were able to foster a connection with this driver and his story, but our community did as well in the announcement post comments,” Mingie said.

Mingie’s advice to other chains is to focus more on your fans/guests and less on yourself, while also having some fun.

“People want to ingest and respond to content that feels authentic and relevant to them. When you focus on people, storytelling and making connections, you naturally create engaging content,” Mingie said.

For the first year, Rutter’s, with 85 locations in Pennsylvania, West Virginia and Maryland, has edged into the Top 5 on FB. “Rutter’s has a third as many FB followers as its average competitor, reminding us that quality and not quantity matters most on social media,” Feehan said. “The brand rose by 37 spots on FB this year in our rankings thanks to extra-engaging posts with a strong focus on their line of flavored milks like Chocolate Chip Mint Milk and Pumpkin Pie Milk.”

And, similar to Pilot, Rutter’s used strategic boosting to help some posts go even further on FB.

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Social Media Awards

STANDING OUT ON INSTAGRAM

Kwik Trip skipped from second place last year to first place this year on IG by posting twice as often as its competitors. Plus, having four-times the number of followers compared to most other chains also helped the chain capture engagement. But most of all, Kwik Trip’s content is what gave it an edge.

“Kwik Trip’s social media engagement team is clearly having the time of their lives creating wacky and sassy posts for Kwik Trip’s feed that followers just loved,” Feehan said. “It’s worth noting that nine of the brand’s top 10 posts by engagement rate on IG were reels with double-digit engagement rates, which is increasingly tough to pull off with social media engagement rates on the decline. Reels are going to be critical for brands looking to increase (or even maintain) their engagement rates on IG this year as IG continues to model itself after the success of TikTok and YouTube shorts.”

In other words, c-stores that aren’t currently creating videos for IG should plan to start in 2024.

One big content shift for Kwik Trip in 2023 was hopping on the CapCut filter trend on IG and TikTok. “Not only are these videos incredibly quick and easy to create, but they have proven to result in high views and engagement,” Geary said.

Kwik Trip also amplified its IG presence by using the collaboration feature more often with its influencers and pro athletes.

“This tool has made it seamless to reach both follower bases and has helped make these partnerships more apparent to our audience,” Geary added.

ENGAGING FOLLOWERS ON X

It’s been a strange year on X — formerly Twitter — so it’s no surprise that the rankings have seen a shake up this year, with 7-Eleven and Weigel’s surpassing former three-year champion Kum & Go, which Feehan noted pulled back this year in terms of frequency of tweets, replies and its overall audacity, although it’s still delivering snarky quips followers love. Feehan pointed out it appears Kum & Go, which operates over 400 stores across 13 states, is putting more of its focus on TikTok with 70 more videos in this tracking period compared to last year’s.

“Success for c-stores on X still looks like a strong mix of sass, 1-to-1 convos with followers, and more tried-andtrue strategies like giveaways and new

Top 5 Performers on X 1. Winner: 7-Eleven 2. Runner up: Weigel’s 3. Kum & Go 4. Kwik Trip 5.QuikTrip product releases,” Feehan said.

C-store behemoth 7-Eleven, which operates, franchises and/or licenses more than 13,000 stores in the U.S. and Canada, took the top spot on X with its sassy posts bringing in strong engagement from followers.

“7-Eleven stood out on Twitter thanks to an enormous — and rabid — support base that ate up the brand’s increasingly irreverent tweets that dealt with every topic under the sun except convenience stores,” Feehan said. “It also tweeted way more frequently than its competitors, which gave it more bites at the engagement apple.”

Top 5 Performers on Instagram 1. Winner: Kwik Trip 2. R unner up: Buc-ee’s 3. 7-Eleven 4. Kum & Go 5. MAPCO 30

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January 2024

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Social Media Awards

Social Media Trends to Watch in 2024 Blair Feehan, content marketing for Rival IQ, shared the top three social media trends to watch in 2024: 1. Video Content — Video is more important than ever, from reels to TikToks, and it’s key for breaking through algorithms in order to ensure your content is seen. Channels have been blatant about prioritizing video content over more static photos or status updates, Feehan noted.

3. Sass — “We’re relieved to announce that sass is still in style for c-stores on social this year, with many of the top posts, tweets and TikToks still focusing on roasting competitors — and occasionally customers,” Feehan said.

2. Trending Sounds and GIFs — Find the trending sounds, GIFs and even dances and use them to make content that’s recognizable even to people who aren’t yet a fan of your brand, Feehan advised.

TUNING INTO TIKTOK

It’s not a surprise that Kwik Trip dominated the TikTok category with a first place win for the second year running. After all, it has more followers, more videos per week and more engagements than most of its competitors.

Feehan pointed out that Kwik Trip also “made the most of trending sounds and celebrity GIFs to create short and sweet content that raked in the engagement.”

Still, Kwik Trip found that hopping on sound trends, which Geary noted is a long-advised rule of TikTok, isn’t working as well today as it did in 2020, when the chain first arrived on the platform.

“Things have certainly changed as the TikTok space has gotten more competitive. We’ve now found that unique, yet relatable content has been the key to our success — whether this pertains to Kwik Trip experiences or the Midwest as a whole,” Geary said.

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Top 5 Performers on TikTok 1. Winner: Kwik Trip 2. Runner up: Kum & Go 3. Stewart’s Shops 4. 7-Eleven 5. Sheetz Regular internal brainstorms with its digital team and in-depth social listening helped the chain succeed.

“Keeping an eye on the social chatter from our guests and followers allows us to learn more about their experiences at our stores and gather a solid list of relatable situations. The more you incorporate instances that make your audience think, ‘Hey, I do that’ or ‘I know someone who does that,’ the more engaging and share-

January 2024

able the content will be,” Geary said.

For c-stores considering delving into the world of TikTok in 2024, Geary advised that the first step is to log onto the platform, scroll and observe.

“Discover what other successful brands in your space are doing and take notes on how they’ve found their content niche. Take those learnings and brainstorm ways you want to present your brand to TikTok,” Geary said.

Kwik Trip kept its brand voice consistent and translated its efforts to the video-based platform. It also took topperforming content on FB and IG and found ways to present those ideas in a video format.

“This helped us start out strong in the TikTok space by using concepts that already proved to be engagement worthy,” Geary said.

“Creating video is harder than, say, tweeting a link, but with TikTok engagement rates many times higher than other channels, the payoff is real,” Feehan added. CSD

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Sunday, March 10

Warm Welcomes (literally!)

Fishing Charter An add-on available for conference attendees to enjoy the Tampa Bay with their industry peers! It’s all-inclusive with equipment and lunch provided. Why come to Tampa and not enjoy the sun and the sea?

40 Under 40 Celebration Reception An invite-only reception to celebrate the Class of 2023 40 Under 40 inductees with their Young Executives Organization (YEO) peers.

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Monday, March 11

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Burning Issues Exchange

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This half day workshop is facilitated by Heather Wright Senior Workplace Consultant, Gallup

Afternoon Burning Issue Sessions

• The Legislative Landscape Ahead of the 2024 Elections — a fireside chat with Matt Mowers, President, Valcour; and Kyle May, Director of External Relations, Reynolds • Retail Innovation Tour Overview — In lieu of a traditional store tour, attendees will be inspired by innovations around us in Tampa! With Allison Dean, Executive Director, NAG Convenience

Evening Social Networking

• Back by popular demand, the NAG Convenience conference will offer a hospitality and networking opportunity after hours. Join us after dinner on Sunday and Monday evenings to make the most of your time with industry friends in Tampa!

Tuesday, March 12

Investing in the Future and the Burning Issues Exchange Morning Burning Issue Sessions

• Preparing for the Next Generation of Leadership moderated by Erin Del Conte, Editor-in-Chief, CStoreDecisions, with panelists Brent Mouton President & CEO, Hit n Run Stores; Joseph Sheetz, Chairman, Sheetz, Inc.; Greg Ehrlich President, Beck Suppliers Inc. • The Meaning of Membership with Allison Dean, Executive Director, NAG Convenience

Wednesday, March 13

Protecting your Fuel Operations and Farewell Morning Burning Issue Sessions

• The Electrification of Fuel with LeeAnn Goheen, NATSO • Conference Wrap Up & Final Thoughts with Allison Dean, Executive Director, NAG Convenience

Meet Our Conference Moderator!

Erin Del Conte Editor-in-Chief, CStore Decisions

CStoreDecsions is the media and publication partner of NAG Convenience. As the Editor-In-Chief of the publication, there is no one better suited to guide conference attendees through each day. She brings more than 15 years of experience in B2B magazine publishing, digital content and editorial production. Erin has been covering the convenience store industry for CStore Decisions for more than a decade, reporting on all aspects of the business from acquisitions to foodservice evolution and technology innovation, while crafting stories through articles, webinars and videos.

POWERED BY:

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Category Management | Cigars, Vape, MRTP

Legislation

Looms for Tobacco C-store retailers assess tobacco data and trends even as confusion around flavored cigar ban proposals, the legality of vape products and the growth of modified-risk tobacco products continues.

Emily Boes • Senior Editor

As a longtime staple in the convenience store industry, tobacco has always been a key category on which retailers have focused.

In recent years, however, increasing regulations have forced c-stores to repeatedly revamp their backbars to stay in compliance with changing rules, particularly around vape. Now, c-store operators are keeping an eye on the Food and Drug Administration’s (FDA) next round of proposed regulations, including a potential ban on menthol cigarettes and flavored cigars on the horizon. The FDA has continued to push back the announcement date of the anticipated final ruling.

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Category Management | Cigars, Vape, MRTP

LEGISLATIONS AND REGULATIONS

In December, the FDA announced the final rules regarding flavored cigars and menthol cigarettes will be further delayed until March 2024.

“Overall, I think the Administration is doing its due diligence in understanding the potential unintended consequences these rules may have as well as the policy positions of the stakeholders who are engaged on these issues,” said David Spross, executive director of the National Association of Tobacco Outlets (NATO).

“Since it figures to be a close presidential election, political implications are in play and could push a final decision on whether to finalize the rules until after November 2024.”

Kevin Harder, category manager at Yesway, which has 440 stores in nine states, agreed “the proverbial can may continue to be kicked down the road” and that a decision may not come until the 2024 presidential election passes.

He noted, nonetheless, that the outcomes of these rulings may define 2024.

“The plan is to monitor legislative activity, speak up and let our voices be heard about things that could negatively impact the tobacco category, and try to be prepared for whatever changes may come,” said Harder.

Statewide bans are also being proposed. For example, New York has considered enacting a ban on flavored cigars and menthol cigarettes.

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“We successfully defeated a statewide measure in 2023 and expect a similar effort will be required in 2024. Prohibitions of products just don’t work — look at the failed flavored vape ban,” said Kent Sopris, president of the New York Association of Convenience Stores (NYACS).

New York has instated a ban on flavored vape products, which Sopris noted NYACS members continue to abide by, but there have been increases in illegal flavored vape sales elsewhere.

“This is something we’ve been fighting at the state and local levels and will continue to do so in 2024,” Sopris continued.

According to NATO’s Spross, only 23 vapor products have received marketing granted orders.

He recognized, however, the confusion that exists within the marketplace due to the FDA having yet to rule on many premarket tobacco product applications (PMTA).

“Many flavored vapes, particularly disposable products, are readily available because of limited information on what vapor products currently have timely filed PMTA applications under review,” said Spross.

Sopris urged c-store retailers not to sell illegal products, however, because it “makes the industry look bad and really contributes to a poor quality of life in communities.”

At the same time, Harder encouraged operators to have backup products waiting in order to prepare for worst-case scenarios.

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Category Management | Cigars, Vape, MRTP

Unit Sales Slow for Cigars, Vape Cigars and electronic smoking devices show unit sales dropping by 3.7% and 8.2% respectively, while price per unit increases cause dollar sales to see upward momentum.

Product

Dollar Sales

Unit Sales

Price Per Unit

Current

1-Year % Change

Current

1-Year % Change

Current

1-Year % Change

Cigars

$4.05 B

0.6%

2.27 B

-3.7%

$1.78

4.5%

Electronic Smoking Devices

$7.23 B

2.7%

411 M

-8.2%

$17.60

11.9%

Source: Circana’s total U.S. convenience data for the latest 52 weeks ending Dec. 3, 2023

TRENDS TO WATCH

While c-store retailers wait for the outcome of potential regulations, they continue to evaluate tobacco purchasing trends among their customers.

Cigar dollar sales at c-stores have so far remained flat with only a minimal 0.6% uptick for the latest 52 weeks ending Dec. 3, according to Circana, a Chicagobased market research firm. Unit sales, however, have seen a 3.7% drop.

At Yesway, though, cigar sales are performing well.

“Cigar customers seem to be getting used to what appears to be a new strategy of annual cigar manufacturer price increases, which is a strategy taken directly from the cigarette manufacturer playbook,” said Harder. “With rapid inflation, we think it may be that customers are so used to everything going up that they are becoming numb to it when they see it in outof-the-ordinary places like cigars.”

Meanwhile, dollar sales of electronic smoking devices nudged upward by 2.7% to hit $7.23 billion. With a large 11.9% jump in price per unit, though, unit sales decreased by 8.2%.

Harder believes Altria’s acquisition of NJOY is worth paying attention to in terms of how it will affect the vape segment.

“We think the addition of another strong manufacturer with plenty of resources to spend should only 40

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benefit retailers and our customers,” he said. “Similarly to how On! fueled additional category growth without necessarily taking competitive oral nicotine sales, we may see additional growth in vape as customers find themselves in an increasingly competitive environment between vape manufacturers. Growth, of course, would be predicated on the assumption that segments of the vape category are not banned.”

One emerging trend c-store retailers should watch for is the modified-risk tobacco product (MRTP).

As of print time, 16 MRTP applications have been granted, noted Spross.

“The marketing of MRTP products has been limited since so few products have received an MRTP order, and some with orders have had limited or interrupted distribution,” said Spross. “With Philip Morris International entering the U.S. marketplace over the next few years and companies focusing on smokefree products, interest in the MRTP pathway may increase.” CSD

FAST FACTS:

• The FDA announced the final rules regarding flavored cigars and menthol cigarettes will be further delayed until March 2024.

• Cigar dollar sales at c-stores came in flat (up a minimal 0.6%) for the 52 weeks ending Dec. 3, per Circana.

• Retailers are urged to stay on top of marketing granted and denial orders for vape products to ensure they are not selling illegal vape products, which looks bad for the industry.

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Foodservice | Breakfast

BREAKFAST

RULES

Traditional, new and unique items and flavors promoted through savvy marketing techniques are propelling continued growth in the already strong breakfast daypart.

Marilyn Odesser-Torpey • Associate Editor

Convenience stores understand why customers choose to eat breakfast outside of the home. Fifty-eight percent of consumers who eat breakfast away from home do so because of convenience, according to the “Breakfast Keynote Report” fielded in April 2024 by research firm Datassential.

And c-stores know how to deliver on convenient, quick breakfast options.

However, 36% of customers said they eat breakfast away from home because specific foods and flavor profiles are too hard to make or replicate at home. Luckily, c-stores have been rising to the occasion with more versatile, flavorful and quality breakfast options to meet this need.

TRACKING THE TRENDS

More than half of consumers, particularly Gen Z, said they want highprotein offerings at breakfast, according to Datassential. Nearly half said they had eggs for their last breakfast, according to the report.

C-store retailers would do well to follow these trends and continue to respond accordingly.

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cstoredecisions.com

12/29/23 7:45 AM

2024

Leaders in Convenience

ADVERTORIAL

Our portfolio includes a variety of pre-packed and bulk cooked meats, dairy, and frozen entrées including Franks, Sausages, Corn Dogs, Burritos, Hispanic Cheeses and Creams, Roller Grill and Hot Box Solutions, Deli Meats, and Plant-Based Alternative Proteins.

BUTTERMILK PANCAKE & SAUSAGE BREAKFAST STYLE CORN DOGS

Sigma Foodservice USA enables convenience stores and restaurants to serve their customer’s cravings with superior ingredients, business insights, and a collaborative approach to help their business thrive, now and long-term.

Apart of a global food company, we work to help local and national restaurants and convenience stores grow their business through innovative foods, quality ingredients, and solutions that lead to new opportunities.

Sigma Foodservice USA Michael Stremlau, National C-Stores Sales Director 18700 N. Hayden Road Suite #545 Scottsdale, AZ 85255 Ph: 520.336.7559 Email: mstremlau@bar-s.com www.sigmafoodserviceus.com

Developed for the c-store, restaurant, college/ university, and foodservice distributor segments, our 4 oz. breakfast style corn dogs are made with a fluffy, soft buttermilk pancake flavored batter, wrapped around a hearty, savory all-pork sausage link, seasoned with black pepper and spices. This product provides operators with a protein-rich offering to be used on a variety of menus. Each fully cooked corn dog is ready to heat and serve, packed with 8 corn dogs per inner package and 48 units per case.

FIRE ROASTED FIESTA PORK, BEEF & PEPPER JACK SAUSAGES

Developed specifically for the college, university, c-store, and restaurant foodservice segments, our 5:1 format, 3.2 oz. pork, beef, and pepper jack cheese sausages provide operators with a premium, protein-rich product to be used on a variety of menus. With an average length of 6 inches, these sausages are great for vendors, concessionaires, and caterers. Each fully cooked link is gluten free with no artificial flavors, colors, or ingredients, packed with 25 links per inner package and 50 links per case.

CARAMEL CHURRO DESSERT BURRITOS

Our sweet, crispy, and creamy caramel churro dessert burritos are filled with cream cheese, caramel sauce, and molasses, then dusted with an exterior coating of cinnamon and sugar. Perfect for roller grills, ovens, and air/deep fryers, our hand-rolled churro dessert burritos are an indulgent, unique, on-the-go snack perfect for those looking to savor a Mexican favorite as a part of an authentic Hispanic cuisine. Each package contains 4 churro dessert burritos, with 32 units per case.

CHEESY CHEDDAR JALAPEÑO SNACK BITES

Our savory, crispy, and creamy cheesy cheddar jalapeño snack bites are stuffed with a zesty, jalapeño-cheddar blend, enclosed within an exterior, flavorful corn masa coating, seasoned with a hint of turmeric and paprika. This unique, indulgent, bite-size snack performs great under multiple heating applications and is perfect for consumers looking to savor a classic Mexican favorite, now in a convenient, on-the-go format. Each package contains 3/15-count one-ounce bites, with 90 individual bites per case.

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Foodservice | Breakfast

At Duchess stores, breakfast accounts for 20% of the total foodservice program. In the past quarter the chain saw a 30% increase in breakfast sales.

Englefield Oil Co.’s Duchess convenience stores noticed one “strong trend” that has led to a popular menu offering: consumer demand for low-carb options, according to Nathan Arnold, Duchess’ director of marketing. Duchess responded with the “eggwich” — sausage and cheese sandwiched between two eggs instead of a bread or waffle carrier.

Less traditional meats, such as chorizo, also continue to grow for the breakfast segment.

Duchess is not the only c-store chain to notice what The signature item that sets Duchess apart, howcustomers want and add new items to its menu. At ever, is called the Duchess Stuffer.

Nana’s Kitchen, Birmingham, Ala.-based Quick Shop’s “We do especially well with our sausage gravy foodservice program, customers have the option of stuffer, which consists of sausage gravy stuffed inside enjoying a biscuit sandwich (bacon, egg and cheese a biscuit,” reported Arnold. “It turns sausage and is the favorite) or a full plated breakfast with grits, gravy into a tasty handheld breakfast item.” fried or scrambled eggs, and bacon or sausage.

The latest item to be added to the menu is a “Our customers like to have choices,” Quick Shop chicken and biscuit sandwich that will be available at President David Collins remarked. “And we have breakfast and lunch. enough choices to make everybody happy.”

“By focusing on items that span across multiple Collins continued that breakfast is very strong in the dayparts we can increase the efficiencies of our team eight out of 13 total stores in Alabama that serve the members and help to reduce waste,” Arnold explained. morning meal. Sales in 2023 were higher than in 2022 At Duchess stores, breakfast accounts for 20% of the and have grown the most from July through October. total foodservice program, he noted. In the past quarAt two of the stores, Collins has introduced breakter the chain saw a 30% increase in breakfast sales. fast wraps, using tortilla shells instead of a biscuit, and Duchess operates 119 convenience stores in Ohio “they’re doing pretty good,” he said. He is also considand West Virginia, 110 of which serve breakfast. ering adding a sweet item such as a cinnamon roll.

Breakfast burritos and sandwiches seem to be crowd pleasers across regions.

At Kwik Stop, which has 27 locations — 13 of which offer breakfast — in Colorado and Nebraska, three breakfast burrito variations, including one made with chorizo, account for 43% of breakfast sales. The top-selling sandwich is the egg and cheese croissant which, by itself, accounts for 10.7% of total breakfast sales. Additionally, breakfast pizza slices represent 10.73% of morning daypart sales.

The breakfast daypart for 2023 accounted for over 16% of total deli sales, said Kwik Stop Director of Food Services M. David May. That number is up from At Kwik Stop convenience stores, three breakfast burrito varia12% in 2022, representing a 33% increase. tions, including one made with chorizo, account for 43% of May also emphasized that a dynamic breakfast breakfast sales.

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12/29/23 7:45 AM

2024

Leaders in Convenience

ADVERTORIAL

FIORUCCI PEPPERONI & PEPPER JACK PANINOS

Fiorucci is the brand of specialty meats that delivers the true taste of Italy. For over 170 years, we have used old-world recipes to produce a full line of authentic Italian deli meats, using only hand trimmed cuts of premium pork and the finest ingredients, then slowly aging them to perfection.

Our portfolio includes a variety of pre-sliced and bulk meats including Prosciutto, Pancetta, Salami, Pepperoni, Sopressata, Jamón Serrano, Capicollo, Mortadella, Chorizo, and other specialties, including our bestselling Paninos and snacking lines.

Fiorucci Foods, Inc. Michael Stremlau, National C-Stores Sales Director 1800 Ruffin Mill Road South Chesterfield, VA 23834 Ph: 520.336.7559 Email: Marketing@fioruccifoods.com https://fioruccifoods.com

CSD 2024 Leadership Fiorucci.indd 45

Introducing our tasty Pepperoni & Pepper Jack Cheese Paninos, available in a 1.5-ounce, 2-count, easy-open package. Each serving contains no artificial flavors, colors, or ingredients, and is a good source of both protein and calcium. The product is gluten, MSG, and trans-fat free, low-carb with no sugars, and great for those following keto-friendly, paleo, or Mediterranean diets. The pepper jack cheese is r-BST hormone free. Our new Pepperoni & Pepper Jack Cheese Paninos offer consumers a new flavor that’s perfect for those who enjoy a hint of spice. Paninos are a convenient, on-the-go snack that’s ready to eat. Try them out of the package, great for daily school and work lunches, morning or afternoon workouts, and late-night snacking.

FIORUCCI PIZZA FLAVORED & MOZZARELLA PANINOS

Our new, unique-to-market Pizza Flavored Paninos, are now available in a 1.5-ounce, 2-count, easy-open package. Each serving contains no artificial flavors, colors, or ingredients, and is a good source of both protein and calcium. The product is gluten, MSG, and trans-fat free, low-carb with no sugars, and great for those following keto-friendly, paleo, or Mediterranean diets. The creamy mozzarella cheese is r-BST hormone free. Our new, tasty Pizza Flavored Paninos offer consumers a familiar flavor that’s perfect for those who enjoy the classic flavor of a margherita pizza. Paninos are convenient, on-the-go snacks ready to eat. Try them out of the package, great for school and work lunches, morning or afternoon workouts, latenight snacking, and ideal for crowd-pleasing charcuterie or grazing boards.

FIORUCCI PEPPERONI & AGED CHEDDAR PROTEIN SNACK PACKS

Snack on-the-go with Fiorucci’s Uncured Pepperoni & Aged White Cheddar Cheese Snack Packs, with 5 slices each of all-natural meat and cheese. Every serving contains no artificial flavors, colors, ingredients, or preservatives, with no nitrates or nitrites added, and is a good source of both protein and calcium. The product is gluten, MSG, and trans-fat free, low-carb with no sugars added. The aged white cheddar cheese is r-BST hormone free and the pepperoni is made with pork containing no antibiotics ever. Our Uncured Pepperoni & Aged White Cheddar Cheese Snack Packs offers consumers a new variety, perfect for consumers wanting a convenient, on-the-go snack that’s ready to eat. Try them out of the package, great for daily school and work lunches, morning or afternoon workouts, and late-night snacking.

1/8/24 8:50 AM

A Case of Mistaken Identity

In November, Kwik Stop launched Cinnobabies from partner Hot Stuff.

business is crucial in c-stores because it boasts a 65% gross profit margin, more than any other daypart.

Last September, Kwik Stop added a waffle, sausage, egg and cheese sandwich and French toast sticks to its breakfast menu. Both are doing well, May said. In November, he launched Cinnobabies from partner Hot Stuff and plans to add a no-meat breakfast burrito.

HOT

FROZEN

COLD

AMBIENT

Some people still think Southern CaseArts only produces the world’s best custom display cases. In reality, we offer a remarkable range of in-stock designs for every section of your store. Hot, Cold, Frozen, Ambient…whatever your need we have options that maximize packout and encourage sales. Bakery, Meat,

MARKETING THE MORNING DAYPART

Adding variety and options that appeal to customers is not enough to capitalize on the breakfast daypart, however. C-store retailers must find ways to inform customers that can get them in the door to try their food, as well.

At Duchess, to promote its breakfast menu the stores offer two-for promotions or bundling opportunities.

“Coffee,” Arnold pointed out, “is, of course, a natural fit, but we’ve also had success with fountain drinks, canned energy drinks, bottled soda and sweet treats, such as coffee and a cookie with a breakfast sandwich or a candy bar with a breakfast sandwich.”

Drawing a customer’s eye to the breakfast offerings through strategic placement is also key for success.

May has found at Kwik Stop that one major way to increase foodservice, and specifically breakfast, sales is by moving the hot case close to the point of sale.

“We first noticed the benefit of having the cases very close to the registers when we began offering chicken,” he explained. “It dramatically increased impulse sales.” CSD

Hot Foods & Soup, Beverages and more, discover today’s Southern CaseArts, where quality and reliability for the long-term is absolutely unmistakable.

FAST FACTS: • Signature breakfast items can set stores apart from the crowd.

• Bundling opportunities with breakfast items can have success beyond only a coffee pairing.

• Moving the hot case to the point-of-sale area may help boost sales.

46 southerncasearts.com CSTORE DECISIONS • January 2024 | 800.552.6283

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cstoredecisions.com

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12/20/23 4:27 PM

Operations | Inflation

Tackling

in C-Stores

As inflation drives prices up, retailers are considering strategies to provide value and cost savings to keep consumers engaged.

Zhane Isom • Associate Editor

Since 2021, inflation has been impacting consumers’ spending and shopping habits, and as we enter 2024, customers seem to be feeling the pinch now more than ever.

CivicScience reported its Penta-CivicScience Economic Sentiment Index — that tracks U.S. adults’ expectations of the economy and sentiment on current conditions — had fallen to its lowest point in a year, declining 1.1 points to 32.0 on Nov. 11. It then ticked up slightly to 34.2 by Dec. 19.

Despite a pessimistic consumer sentiment, inflation is reportedly slowing. On Dec. 12, the U.S. Bureau of Labor Statistics reported that the inflation rate had dipped to 3.1%, down from 3.2% in October and from a high of 9.1% in June 2022. But while inflation may be technically growing at a slower rate, it’s little comfort for consumers when costs remain elevated across the board compared 48

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January 2024

to where they were pre-pandemic.

Not only are customers grappling with soaring food, rent and housing prices, but they’re also seeing the cost of most products from beverages to snacks to health and beauty items continue to increase.

To combat rising costs, more consumers are shopping for deals, while others have switched to buying store-brand products.

One c-store chain that has seen consumers’ shopping behavior change due to inflation is High’s, which operates 59 stores throughout Maryland, Delaware and Pennsylvania.

“We continue to see inflation and the worries over the economy impacting our customers and their shopping behavior,” said Brad Chivington, senior vice president of retail for High’s. “They are being more selective and thoughtful in their trips and choices. They are also looking for value, and we see that our loyalty rewards program and offers are of growing importance to our customers.”

cstoredecisions.com

12/29/23 7:47 AM

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Operations | Inflation

INFLATION’S IMPACT ON C-STORES

But it’s not just shoppers reeling from the effects of inflation. C-store retailers are also feeling the impact of the rising cost of goods and labor and the effects of price increases on category performance.

“We see cigarettes, tobacco and some center store categories being most impacted by inflation,” said Chivington. “However, we continue to see growth in food, beverages and candy.”

For other retailers, managing the rising cost of food and determining when or if to pass costs onto the consumer has been a key challenge.

“We saw some of the biggest increases in prices in foodservice,” said Mike Gilligan, vice president of Gilligan’s Retail, which operates 10 sites in Arizona and two in Montana under the name The Welcome Shop. “In 2022 and 2023, we were constantly changing the prices on our menus. Even though we don’t change the prices as often now, we do see a return of higher prices in the future.”

TAKING ON INFLATION

To help ease sticker shock, some retailers are working to provide customers with different options and opportunities to save money.

Rutter’s, which operates over 80 locations in Pennsylvania, Maryland and West Virginia, has begun developing new ways to keep consumers engaged in its products while helping them save on costs.

“We’re going to look at driving some new programs to engage customers here in Q1,” said Joseph Bortner, senior category manager for Rutter’s. “We’ll also look at creating new promotional activity through the summer to offer deeper value promotions for customers on their favorite brands.

We have certainly added some new tools in the sales toolbox for 2024.”

Bortner also noted that it’s important for retailers to work together to create value propositions that resonate with customers.

“In 2024, consumers will be faced with tough decisions across the store on where they’ll be willing to spend their dollars,” he said. “The brands that look to lean in and create memorable value propositions will be the ones gaining shares throughout the year.”

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Meanwhile, High’s and Gilligan’s are tackling inflation by focusing on their rewards programs and product mix.

“We are focusing more on personalized offers via our loyalty rewards program and giving customers greater value in fuel, tobacco and food offerings,” said Chivington. “We will also continue to focus on categories like candy and snacks.”

“We are paying more attention to our product selection,” added Gilligan. “As prices rose, we cut back on some of the product selections that we felt were duplicates, especially in candy and beverages.”

INFLATION CONTINUES

As time goes on, inflation is expected to continue to be a challenge for retailers and consumers.

“This inflation story is not finished yet,” said Gilligan. “We anticipate that prices will continue to rise in late 2024 into 2025 and beyond due to input cost (the expense of creating a product) increases for goods and services. Wage growth and energy costs being two areas of particular concern.”

Nonetheless, with 2024 being an election year, retailers hope to see some positive changes when it comes to inflation.

“This election year could possibly yield some positive impact as consumers look to vote with how they have been impacted in their wallets and looking for some real relief and positive economic answers,” said Chivington.

With inflation here to stay for now, retailers and consumers must continue to find new ways to navigate it.

“Inflation is going to continue to be around,” said Bortner. “It’s certainly a challenge that’s making us look harder at the programs and offers we have in place.”CSD

FAST FACTS:

• D ue to inflation, more consumers are shopping for deals, while others have switched to buying store-brand products.

• S ome retailers are considering adding new promotions and personalized offers to their loyalty rewards program to help consumers save money while shopping.

cstoredecisions.com

12/29/23 7:47 AM

If your business accepted Visa and/or Mastercard between 2004 - 2019, you’re now eligible to claim your share of a $5.5 billion Settlement.

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PRODUCTShowcase

Ghost Pepper-Flavored Candy Straws Sour Punch has unveiled its new Ghost Pepper Roulette Pack. Each pack contains an assortment of four flavors of Sour Punch straws, including Boo Raz, Chilling Cherry, Ghoulish Grape and Ghost Pepper.

With all straws maintaining the same shade of black, consumers won’t know when they might get a fiery surprise. To make sure everyone can enjoy this haunting new flavor, the Ghost Pepper straws are a perfect balance of heat and sweet. Sour Punch Ghost Pepper Roulette is available now while limited supplies last.

American Licorice Co.

www.americanlicorice.com

Grab-and-Go Sausages and Brats

Zero-Sugar Beverage

Johnsonville starts with its high-quality sausage, wraps them in fresh-made bread dough, and soft bakes them together to create a hearty, craveable taste sensation.

Satisfy cravings across all dayparts with classic favorites and trending flavors perfect for the ultimate grab-andgo package. Flavors include Smokey Cheddar Sausage, Spicy Sunrise, Smoked Brat, Jalapeño Cheddar Sausage, Sweet Smokey Sausage and Beef Hot Dog — great flavors that will fly off the shelves.

Ocean Spray has launched its new Zero Sugar Juice Drink, the first beverage from Ocean Spray with bold flavor, zero grams of sugar and no artificial sweeteners. Ocean Spray Zero Sugar Juice Drink is available in two flavors: Ocean Spray’s iconic Cranberry flavor and Mixed Berry, a new flavor to the brand’s beverage portfolio.

Made with real fruit juice and sweetened with stevia, Zero Sugar is an excellent source of vitamin C. Ocean Spray Zero Sugar Juice Drinks are available now in stores nationwide.

Johnsonville

www.johnsonvillefoodservice.com

Ocean Spray

www.oceanspray.com

Individually Wrapped Cookies Otis Spunkmeyer has expanded its lineup of individually wrapped cookies with the addition of two new four-ounce flavors: Double Chocolate Caramel and Apple Cinnamon Oat. The two new cookie flavors join bestselling flavors Chocolate Chunk and Oatmeal Raisin and continue the Otis Spunkmeyer tradition of baking without artificial flavoring. The Apple Cinnamon Oat cookie has the ability to ‘cross over dayparts’ as a great morning or afternoon snack for those who desire more natural nutrition, and the Double Chocolate Caramel cookie gives consumers more of their preferred flavor, chocolate.

Aspire Bakeries

www.aspirebakeries.com 52

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PRODUCTShowcase

Stackable Display Cases ClearCor Displays has unveiled its brochure of new clear acrylic displays that are shipped from stock. Retailers can choose from floor stand displays and countertop models that can be used for a wide range of categories, including liquor, vape, cannabis, smokeless tobacco, nicotine pouches, vitamins and supplements, and accessories. Displays are designed to be fully modular and stackable. All displays are produced in the U.S. from high-grade acrylic material and feature a unique “stackable” design that allows the opportunity to add capacity as needed. Removable category headers can be purchased separately. Custom displays are also available.

ClearCor Displays

www.clearcordisplays.com

Brewed Coffee and Espresso Beverages, Hot or Cold

Versatile Ventless Oven TurboChef’s PLEXOR M2, with impingement and rapid cook modules, provides the same flexibility and convenience as the PLEXOR A3 but in a 27-inch footprint. The modular design allows for easy configuration changes, ensuring that the system remains adaptable to menu adjustments. Like its larger counterpart, the PLEXOR M2 features TurboChef’s ventless technology, which means you can install it in any kitchen without the need for expensive ventilation systems. The PLEXOR M2 is a perfect solution for smaller, high-volume kitchens or venues with limited space.

Hot dispensed beverages continue to drive growth in the foodservice category — with 79%* of total sales being coffee. When was the last time you upgraded your coffee program? The A1000 FLEX combines the best of both worlds, delivering traditionally brewed coffee and espresso beverages, hot or iced, in one machine with maximum FLEXibility. Integrated features such as Cold-Water Bypass for iced beverages and a Patented Brew Unit specifically designed for coffee and espresso, creates the perfect beverage with customization, consistency and quality at the touch of a button — serving all your consumers’ coffee needs. *Source: NACS State of the Industry Report

Franke Coffee Systems

www.franke.com

Money-Saving Digital Platform Formi, powered by Patron Points, is a first-in-class instant savings digital platform designed specifically for convenience stores of all sizes. This easy-to-use, powerful app connects c-stores with manufacturers and consumers to offer instant coupons when they are shopping wherever they are.

Patron Points

www.patronpoints.com

TurboChef

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PRODUCTShowcase

Chip-Inspired Goldfish Goldfish unveiled new Goldfish Crisps, which combine the best of Goldfish and the best of chips into one snack that is light and airy and always baked in the Goldfish shape. Goldfish Crisps are the first Goldfish in the brand’s history made with potato and are larger than traditional Goldfish. The new snack is available in three chipinspired flavors: Sour Cream & Onion, Cheddar and Salt & Vinegar. They also come in a new and larger bag. Goldfish Crisps will roll out to retailers nationwide this month for a suggested retail price of $4.79.

Campbell Soup Co.

www.campbellsoupcompany.com

Texas-Inspired Beef Jerky Uncle Ervin’s smoked meats introduce a fresh idea into an established category. Its Premium Texas Jerky, currently offered in a three-ounce bag, is unlike any other, with attention-grabbing, bold flavors, including Bohemian Garlic, Jalapeño Honey, Texas Heat, Mesquite, Lemon Pepper, Peppered and Zero Sugar; coming soon are Korean BBQ, Cajun and Teriyaki. Uncle Ervin processes its jerky like no one else, creating a consumer-preferred texture. Coinciding with its Premium Jerky are the Premium Survival Sticks, which come in the same great flavors in one-ounce and four-ounce sizes.

Uncle Ervin’s

Handmade Panadas Ruiz Foods has introduced its new Cheesy Pepperoni Panadas. The panadas bring c-store consumers universally loved flavors in an exciting new form.

They’re handmade and packed with authentic flavors and ingredients: savory marinara sauce; real, melty cheese; flavorful, Italian-style seasonings; and zesty, authentic pepperoni.

Operators can boost hot case sales with this easy-to-adopt choice that doesn’t compete with existing programs.

Ruiz Foods

www.ruizfoodservice.com

www.uncleervins.com

Doughnut-Flavored Candy Bar KIT KAT released the new KIT KAT Chocolate Frosted Donut Flavored Bar. The new flavor delivers the experience of biting into a fresh doughnut, with smooth milk chocolate layered delicately on top of doughnut-flavored creme. Available nationwide in standard and king sizes, the KIT KAT Chocolate Frosted Donut Flavored Bar joins the brand’s list of exciting, and sometimes unexpected, flavors, including Mint + Dark Chocolate, Birthday Cake, Strawberry + Dark Chocolate and more.

The Hershey Co.

www.thehersheycompany.com cstoredecisions.com

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© 2023 North American Bancard, LLC (NAB). All rights reserved. NAB is a registered ISO of BMO Harris Bank N.A., Chicago, IL, Citizens Bank N.A., Providence, RI, The Bancorp Bank, Philadelphia, PA, and First Fresno Bank, Fresno CA. American Express may require separate approval. *Durbin regulated Check Card percentage rate. A per transaction fee will also apply. **Some restrictions apply. This advertisement is sponsored by an ISO of North American Bancard. Apple Pay is a trademark of Apple.

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Classifieds/Ad Index ADD Systems

33

Premier Manufacturing, Inc.

13

Altria Group Distribution

2

Sigma Foodservice USA

43

Cheyenne International, LLC

37

Smokey Mountain

15

Fiorucci Foods, Inc.

45

Southern CaseArts / A Royston Group Company

46

Flex Forward

21

SPC Retail

23

Hunt Brothers Pizza

29

Stuft Spuds

5

Liggett Vector Brands

41

Swedish Match

Loomis Armored US, LLC

49

Mars Wrigley

3

800-922-0972 / www.addsys.com

877.968.5323

866.254.6975 / contactus@cheyenneintl.com / CheyenneBrochure.com

520.336.7559 / Marketing@fioruccifoods.com / https://fioruccifoods.com www.flexfuelforward.com

www.HuntBrothersPizza.com/csd

877.415.4100

713.435.6700 / sales@us.loomis.com / www.loomis.us www.mms.com

North American Bancard 866.481.4604 / www.nynab.com

NRS Petro

888.260.0112 / www.nrspetro.com

Panelrak Modular Organizing System www.panelrak.com

Perfetti van Melle

56 25 47 59

www.perfettivanmelle.com

CStoreDecisions .com

www.gopremier.com/contact

520.336.7559 / mstremlau@bar-s.com / www.sigmafoodserviceus.com www.smokeymountainsales.com

800.552.6283 / southerncasearts.com 800.523.6899 / www.spc-retail.com

yum@stuftspuds.com / www.stuftspuds.com 800.367.3677 / customer.service@smna.com www.zyn.com www.generalsnus.com www.gamecigars.com www.whiteowlcigar.com

9 19 39 53

Swisher International

60

Texas Pete

11

Trion Industries, Inc.

7

Visa/Mastercard

51

Xcaliber International

31

800.874.9720 / www.swisher.com www.TexasPeteFoodservice.com/SimpleAs

TrionOnline.com / info@triononline.com / 800.444.4665 800.625.6440 / www.PaymentCardSettlement.com 888.4.XCALIBER / https://xcaliberinternational.com

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Digital Issues CStoreDecision CStoreDecisions CStoreDecisions CStoreDecisions ®

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UNDER 40

ARKO’S M&A JOURNEY

LEADERS TO WATCH

CELEBRATING

Fresh off its 24th acquisition, ARKO Corp., led by CEO Arie Kotler, earmarks over $2 billion for continued mergers and acquisitions (M&A) growth as it integrates recently purchased chains into its portfolio.

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TXB

CStore Decisions introduces 40 next-generation leaders standing out for their business acumen, work ethic, ingenuity and more.

Neon Marketplace CEO Adi Dhandhania brings a wealth of experience to his role as he drives the company into the future.

The Texas-based chain, led by CEO Kevin Smartt, has earned CSD’s 2023 Chain of the Year Award for its commitment to operational excellence.

....

INSIDE

Prasek’s Takes a Different Approach Approach on C-Stores ...............................10

....

INSIDE Vape Grapples With Shifting Landscape The Pizza Power Report AI Transforms C-Store Operations

Spirited Frozen Dispensed Drinks Spike Sales ….42 Hot New Products Contest Winners ................…64

Adapting to Changing Consumer Menu Preferences .......................................66

2023 Restroom Awards ….................................106

New Loyalty Launches Offer Opportunity ....72

November 2023

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December 2023 • CStoreDecisions.com

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IndustryPerspective

Homing in on Loss Prevention With theft on the rise at retail stores, c-store operators must continue improving their loss prevention tactics to keep employees and customers safe.

Zhane Isom • Associate Editor

Loss prevention is essential when running a successful and thriving c-store.

Having different loss prevention strategies in place helps retailers keep a close eye on their stores while ensuring employees and customers are safe. However, as theft continues to rise in the U.S., c-store retailers must stay vigilant when it comes to upgrading the loss prevention tactics in their stores, whether by using new technology, hiring experienced loss prevention specialists or improving training.

CStore Decisions caught up with Kristy Clement, loss prevention manager for Walters-Dimmick Petroleum’s Johnny’s Markets, which operates 66 c-stores throughout Michigan and Indiana, to learn more about how retailers can improve their loss prevention strategies.

CStore Decisions (CSD): How can retailers improve the loss prevention strategies they already have?

Kristy Clement (KC): In my opinion, the best way to evaluate and address the weaknesses of your current loss prevention strategies is to start at the front line.

Put yourself in the cashier’s shoes, or better yet, ask them. Talk to long-time team members and new team members. Find out if they know what to do in various emergency and non-emergency situations, if they feel they have support and tools to use, and if they know who to turn to with questions.

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January 2024

Kristy Clement CSD: What tools, technology or tactics should convenience stores have on their radar for store security in 2024?

KC: There will always be new camera models, security and monitoring devices, geofencing, and the addition of artificial intelligence to catch the “bad guys.” Individual companies may be focusing on a variety of specific areas when it comes to technology, but one that I believe we should be careful not to lose sight of is anything that makes communication between management and the front line clearer.

CSD: What challenges are retailers facing today when it comes to loss prevention?

KC: There are many challenges today when it comes to loss prevention. Our employees often face increased violence, increased sense of entitlement and lack of respect for other humans. With the “new normal” after the pandemic, face coverings are acceptable, so who can tell the difference between someone concealing their identity to commit a crime and someone covering their cough? Police, like everyone else, are understaffed in many areas of our country. High turnover and the increased demand for part-time or gig jobs make training and re-training more of a challenge.

CSD: What makes loss prevention successful in convenience stores today?

KC: Success comes from working together with your other operations management team members. Don’t do it alone. Think of the whole picture, prioritizing safety over sales. Put clear policies and repetitive training in place so that the employees on site know exactly what to do in any situation.

cstoredecisions.com

12/29/23 7:49 AM

Growing Family of Brands Full Page 20231219_OL_FA.pdf

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