Convenience Store Decisions July 2019

Volume 30 • Number 7 • JULY 2019 Business Solutions for Retail Decision Makers

®

2019 CHAINS to WATCH

Fuel City grows as a destination with a robust food program, unique family attractions and car care.

And BP invests in technological advancements, clean energy and expanding its retail footprint.

INSIDE:

Cold Brew Buzz

Tax Deductions for Conferences

Thieves Target Fuel Pump Card Readers

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July 2019

Vol. 30 • No. 7

CONTENTS 26 COVER STORY

2019 Chains to Watch Fuel City grows as a destination with a robust food program, unique family attractions and car care. And BP invests in technological advancements, clean energy and expanding its retail footprint.

EDITOR'S MEMO

TECHNOLOGY

8 Editor’s Memo: Elevating the NAG Experience

50 The Shifting Landscape of ATM Ownership

FRONT END 10 Front End Profile: SIGNAL Food Stores

Embraces Change 14 CSD’s Quick Bites 16 Industry News 18 Highlights from the Sixth Annual YEO Conference 22 Weigel’s Named 2019 C-Store Chain of the Year 24 Convenience Store Solutions: Don't Be Satisfied with Half the Profits

52 Thieves Target Fuel Pump Card Readers

BACK END 55 Product Showcase 59 Quick Stop

61 Ad Index 62 Industry

Perspective: Anticipating Technology Disruption

42

FOODSERVICE 34 Getting Started with Foodservice

CATEGORY MANAGEMENT

18

38 Breaking the Chocolate Mold

42 Meaty Opportunities 44 Cold Brew Buzz

OPERATIONS 48 Tax Deductions for Conferences

and Trade Shows

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34

50 cstoredecisions.com

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THE CSD GROUP

Convenience Store Decisions • Leading Through Innovation • www.cstoredecisions.com

CStoreDecisions ecisions .com

EDITORIAL

CREATIVE SERVICES

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

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

EXECUTIVE EDITOR Erin Del Conte edelconte@csdecisions.com

CREATIVE DIRECTOR Erin Canetta ecanetta@csdecisions.com

SENIOR EDITOR Thomas Mulloy tmulloy@csdecisions.com

ART DIRECTOR Matthew Claney mclaney@wtwhmedia.com

ASSOCIATE EDITOR Isabelle Gustafson igustafson@csdecisions.com ASSOCIATE EDITOR Howard Riell hriell@csdecisions.com ASSOCIATE EDITOR Marilyn Odesser-Torpey mot@csdecisions.com

REGIONAL SALES MANAGER Ashley Burk aburk@wtwhmedia.com

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

VIDEO SERVICES

DIGITAL MARKETING MANAGER Amanda Fourlaris afourlaris@wtwhmedia.com

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ADVERTISING

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VIDEOGRAPHER Graham Smith gsmith@wtwhmedia.com

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

DIGITAL MEDIA/WEB/ DEVELOPMENT

DIRECTOR, AUDIENCE DEVELOPMENT Bruce Sprague bsprague@wtwhmedia.com

COLUMNISTS Jim Callahan Jeremie Myhren

PUBLISHER John Petersen jpetersen@csdecisions.com

NEW PRODUCTS

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

VIDEOGRAPHER Derek Little dlittle@wtwhmedia.com

(216) 533-9186

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DIGITAL MARKETING

CONTRIBUTING EDITOR Mark Battersby

VICE PRESIDENT/GROUP PUBLISHER Tom McIntyre tmcintyre@csdecisions.com

Convenience Store Decisions

CUSTOMER SERVICE MANAGER Stephanie Hulett shulett@wtwhmedia.com CUSTOMER SERVICE REPRESENTATIVE Barbra Martin bmartin@csdecisions.com DIGITAL PRODUCTION MANAGER Reggie Hall rhall@wtwhmedia.com DIGITAL PRODUCTION SPECIALIST Nicole Lender nlender@csdecisions.com

(737) 615-8452

WEBINAR COORDINATOR Halle Kirsh hkirsh@wtwhmedia.com

Bill Kent, President and CEO The Kent Cos. Inc. • Midland, Texas Greg Lorance, Dispensed Category Manager Cumberland Farms • Framingham, Mass.

Billy Milam, President RaceTrac Petroleum Inc. • Atlanta

LEADLIFT ONBOARDING SPECIALIST Mike Ulanski mulanski@wtwhmedia.com

Patrick J. Lewis, Managing Partner Oasis Stop ‘N Go • Twin Falls, Idaho

EVENTS

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

EVENTS MANAGER Jen Kolasky jkolasky@wtwhmedia.com

NATIONAL ADVISORY GROUP (NAG) BOARD

EVENT EXHIBITOR & SPEAKER MANAGER Michelle Flando mflando@wtwhmedia.com

Robert O’Connor, Board Chairman O’Connor Petroleum Co. • Hales Corners, Wis. Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo.

EVENTS MARKETING SPECIALIST Christina Lograsso clograsso@wtwhmedia.com

Greg Ehrlich, Chief Operating Officer Beck Suppliers Inc. • Fremont, Ohio

FINANCE

Doug Galli, Vice President, General Manager Reid Stores Inc./Crosby’s • Brockport, N.Y.

CONTROLLER Brian Korsberg bkorsberg@wtwhmedia.com

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

ACCOUNTS RECEIVABLE SPECIALIST Jamila Milton jmilton@wtwhmedia.com

Brent Mouton, President and CEO Hit-N-Run Food Stores • Lafayette, La. Peter Tamburro, General Manager Clifford Fuel Co. • Utica, N.Y. Vernon Young, President and CEO Young Oil Co. • Piedmont, Ala.

YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD WTWH MEDIA, LLC 1111 Superior Ave., 26th Floor, Cleveland, OH 44114 Ph: (888) 543-2447 EDITORIAL AND NAG 1420 Queen Anne Rd., Suite 4, Teaneck, NJ 07666 Ph: (201) 321-5642

Bart Stransky, Board Chairman RaceTrac Petroleum Inc. • Atlanta

2011 - 2018

SUBSCRIPTION INQUIRIES To enter, change or cancel a subscription, please e-mail requests to: bmartin@csdecisions.com or Mail: Convenience Store Decisions, 1111 Superior Ave., 26th Floor, Cleveland, OH 44114 Copyright 2019, WTWH Media, LLC

Convenience Store Decisions (ISSN 1054-7797) is published monthly by WTWH Media, LLC., 1111 Superior Ave., Suite 2600, Cleveland, OH 44114, for petroleum company and convenience store operators, owners, managers. Qualified U.S. subscribers receive Convenience Store Decisions at no charge. For others, the cost is $80 a year in the U.S. and Possessions, $95 in Canada, and $150 in all other countries. Single copies are available at $9 each in the U.S. and Possessions, $10 each in Canada and $13 in all other countries. Periodicals postage paid at Cleveland, OH, and additional mailing offices. POSTMASTER: Send address changes to Convenience Store Decisions, 1111 Superior Avenue, 26th Floor, Cleveland, OH 44114. GST #R126431964, Canadian Publication Sales Agreement No: #40026880.

CONVENIENCE STORE DECISIONS does not endorse any products, programs or services of advertisers or editorial contributors. Copyright© 2019 by WTWH Media, LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, or by recording, or by any information storage or retrieval system, without written permission from the publisher. Circulation audited by Business Publications Audit of Circulation, Inc.

6 Convenience Store Decisions July 2019

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Garet Bishop, Chief Financial Officer BFS Cos. • Morgantown, W.Va. Caroline Filchak, Director, Wholesale Ops Clipper Petroleum • Flowery Branch, Ga. Kalen Frese, Food Service Director Warrenton Oil Inc. • Warrenton, Mo. Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas Sharif Jamal, Corporate Training Manager Chestnut Petroleum Inc. • New Paltz, N.Y. Lindsay Lyden, Vice President, Development Truenorth Energy • Brecksville, Ohio Jeremie Myhren, Chief Information Officer Road Ranger • Rockford, Ill.

cstoredecisions.com

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Phone: 888-824-3256 | www.cbprices.com www.naturesscript.com | www.hempbombs.com

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EDITOR’S

Memo

Elevating the NAG Experience

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

T

HE CONVENIENCE STORE INDUSTRY CON- ensures that NAG is meeting retailTINUES to grow sales at record numbers, but the ers’ needs with content that will stakes have never been higher as convenience store make them better c-store retailers. owners face competition from multiple retail channels and the growing home delivery industry. As competition Youth Movement As the convenience store and peincreases across the board, savvy retailers are learning to take cost out of their operations to run lean, efficient troleum industry continues to evolve, training the leaders of tomorrow is more important than ever. That’s the driving top-quartile businesses.

The National Advisory Group (NAG) has created an force behind NAG’s Young Executives Organization (YEO).

This growing group of emerging industry leaders is environment where small, mid-sized and family-owned retailers can interact with one another and share ideas keenly focused on education and networking with other for reducing operating costs and increasing sales. The next-generation executives who are facing similar chalproof can be found in our world-class educational lineup lenges in the competitive convenience store industry — something that will be on full display at the 2019 NAG for the 2019 NAG Conference in Minneapolis.

To help retailers return home with actionable ideas to Conference in Minneapolis.

This is not an easy industry for young professionals. boost sales and cut costs, the 2019 NAG Conference encourages an extremely educational yet highly social In addition to learning the business, they are faced with environment. The multi-phase schedule encourages in- other daunting challenges such as learning to negotiate with vendors, managing employees who can be much teractive dialogue among retailers.

The list of speakers at this year’s conference reads like older than them and, perhaps most importantly, maka who’s who of the best companies in the convenience ing connections with experienced professionals that can store and petroleum industry, including Wawa, Kum & Go, help them navigate the rocky terrain.

This is where YEO is helping c-store chains of all sizes.

Sheetz, GetGo, Verc Enterprises, Holiday Stationstores, Alltown, Parkland Fuel, Oasis Stop N’ Go and many more. The association provides young executives a platform to Additionally, our panel moderators include Ernie Harker, demonstrate their leadership abilities and vision for the the former executive director of the CREATE department future while gaining valuable feedback from seasoned for Maverik; John Schaninger, the former senior vice pres- NAG members.

More than 50 young executives attended the annual ident of marketing for QuickChek; and John Matthews, YEO Conference at McLane in May, and we expect to the former president of Jimmy John’s.

Plus, this year’s conference will include several break- keep the momentum going in September with this growout Information Exchanges exclusively for convenience ing group of industry leaders. Linda McKenna, a manstore retailers. Topics for the breakout sessions include aging partner with EPS Inc., will lead a YEO breakout CBD and vape, foodservice, industry consolidation, new session titled “How Millennial Insights Can Connect Your and emerging fuels, human resources and LEED Certifi- Brand With Customers.”

NAG aims to provide c-store operators with a can’tcation. This is a powerful agenda aimed at helping make miss agenda that is full of learning opportunities and you a better convenience store retailer.

NAG provides the convenience store industry the most networking. There is not a lot of downtime at a NAG exclusive environments for small, mid-sized and family- Conference and we don’t parade motivational speakers owned retailers to interact with one another and share across the stage. You know how to run your business.

Our goal is to provide you with insights, ideas and indusideas for reducing operating costs and increasing sales.

The agenda for this year’s NAG Conference again high- try experts that will help you be more profitable. I hope lights the association’s ability to understand the needs of to see you in Minneapolis. convenience store retailers and deliver educational sessions designed to help them grow sales and profits. The high level of input from the retailer board of directors

8 Convenience Store Decisions July 2019

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FRONTEND

Profile

SIGNAL Food Stores Embraces Change From employee benefits to CBD products and more, this Missouri c-store chain is at the forefront of the industry.

Isabelle Gustafson, Associate Editor

S

IGNAL FOOD STORES IS DIFFERENTIATING in a crowded market with a successful proprietary foodservice program, a competitive employee benefits package and a focus on the future, from remodeling stores to adding CBD products.

SIGNAL was established in 1984 with one store in Ava, Mo. Today, the chain spans 11 locations in southwest Missouri. In 2016, the company relocated its headquarters from Springfield, Mo. to Ozark, Mo. to accommodate its growing business.

In 2017, SIGNAL began remodeling all 11 stores to bring them in line with the more “modern, industrial” design of its flagship store in Ozark, Mo. and create additional space for foodservice, hot dispensed and cold vault offerings. The final two remodels are set to be complete by 2020.

success. The average cashier has been with the company for five years, and the average manager for 12. In an industry with a notoriously high turnover rate, the company has succeeded in retaining employees by ensuring caring about its people is a core part of its culture.

“I think it starts from the top,” said Sean Bumgarner, vice president of Scrivener Oil Co. Inc., the parent company of SIGNAL. “We

only have about 160 employees, so we’re small enough to know them all by name.”

Bumgarner also credits the company’s benefits, which include competitive wages. At SIGNAL, new hires earn $11 to $12 per hour, depending on the location, while the minimum wage sits at $8.60 in Missouri and $7.25 federally.

“If you pay better, set clear expectations and train them the

VALUING EMPLOYEES SIGNAL’s employees are one of the driving forces behind the chain’s 10 Convenience Store Decisions July 2019

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FRONTEND

Profile

SIGNAL features a proprietary foodservice brand, Hank’s Chicken, Fish & More, which offers fresh, fried chicken and other dishes in a clean, welcoming environment.

proper way, then you end up having better-quality employees in the long run, and they stay around longer,” Bumgarner said.

At SIGNAL, training continues well past the new-hire stage. New employees undergo a day-long basic training period at the main office, followed by two weeks with a dedicated trainer at the store location.

After about a month with the company, Bumgarner personally meets with new employees to check in.

“I’ll drive out there and see them, make sure that they understand what they’re doing, why they’re doing it the way they’re doing it — and see if they have any suggestions to make the company better,” he said. “Some of them they do, and we’ll try to implement that into our future training programs.”

In the third quarter, the company plans to begin an ongoing, advanced training program for all employees, which includes online courses that will livestream from the main office, as well as web-based questionnaires.

SIGNAL also offers a companysponsored 401(k) program, paid vacation after a year of employment and incentive programs for meeting fuelgallon goals or inside-sales goals.

“Each store has different goals,” said Bumgarner. “Once they meet those goals, we have a party. We rent a limo, we take every employee out. … It might be dinner, it might be drinks, it might be an amusement park — something that everybody thinks is going to be fun.”

co-brands Subway, Quiznos and Papa even though there’s nothing wrong John’s, as well as its own proprietary with it,” Bumgarner said.

“We have one town where the cops brand, Hank’s Chicken, Fish & More.

All are overseen by Jami Jordan, who pulled it out because they didn’t think is a vice president at the company it was legal, and we finally had to get an attorney involved and prove it was along with Bumgarner.

“We wanted to differentiate our- legal,” he added. “We still have to selves from other c-stores that sell fight that perception that it’s a bad chicken,” said Jordan. “To do this, we product.”

Bumgarner did make sure all of the set out to create a brand that focuses on fresh, fried chicken in a clean and CBD products were returnable as a precaution, but he said he’s not worwelcoming environment.”

The brand’s No. 1 seller is chicken ried about potential Food and Drug tenders, but Jordan said they also sell Administration (FDA) regulation, in part because customers tell him they a lot of catfish, livers and gizzards.

“Our chicken is not your typical greasy, benefit from the products.

“Several say it helps with their aches rubbery ‘gas station chicken,’” she said.

“We hand-bread all of our chicken and and pains,” Bumgarner said. “A lot of catfish. … Customers often think that them say it helps with their anxiety. we are part of a larger franchise and are Two of them have told me it helps with surprised to that find we’re a local, self- their children’s seizures.” made chicken concept.”

MOVING FORWARD SELLING CBD With close to 30% of transactions Employee benefits and a commit- tied to a SIGNAL Rewards card, the ment to quality foodservice aren’t the company is always looking for ways to only modern aspects of the company. offer its customers more.

Although the chain hasn’t emAfter the Agriculture Improvement Act of 2018 passed, better known as barked on new technology, such as the Farm Bill, SIGNAL started sell- frictionless checkout, Bumgarner is ing cannabidiol (CBD) products from interested in the developments.

“The nature of our business is Hemp Bombs in all stores, including oils, rubs, gummies, pet treats and convenience,” he said. “If we could vape products. Gummies, Bumgarner get somebody in and out without said, are the top seller for the category. having to wait in a line, I think that’d Despite its popularity, Bumgarner be great.”

For now, Bumgarner said the said misconceptions still exist about CBD, which is derived from the company is focused on bettering its hemp plant and does not contain existing business, while keeping an PROPRIETARY AND BRANDED tetrahydrocannabinol (THC), the main eye on innovation.

FOODSERVICE “I like change.” he said. “If you’re psychoactive component of cannabis.

“We’re still getting a few upset not changing, you’re going in the SIGNAL is also growing through its foodservice offerings, which include customers that we’re carrying (CBD) wrong direction.”

12 Convenience Store Decisions July 2019

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INDUSTRY

News

Casey’s Appoints New President, CEO Casey’s General Stores Inc. appointed new president and CEO, Darren Rebelez, on June 24. Rebelez succeeds former Casey’s President and CEO Terry Handley, who retired after a 38-year career with the company.

“It has been a privilege to lead and be part of such a talented team, and I look forward to seeing Casey’s continue to build on its momentum in fiscal 2020 and beyond,” said Handley.

Former President of IHOP Restaurants, Rebelez brings more than 25 years of leadership experience focused on operations, marketing and merchandising for large corporations in the convenience store, fuel and restaurant industries.

“I am honored to join the Casey’s team at an exciting and dynamic time for both the company and the industry,” said Rebelez. “I have long admired Casey’s and look forward to working closely with its talented team to continue providing outstanding service to local communities across our markets and creating value for all of Casey’s stakeholders.”

Sheetz, Kwik Trip Among C-Stores Selling CBD Several c-store chains are launching cannabidiol (CBD) products, including Sheetz and Kwik Trip. Altoona, Pa.-based Sheetz launched “an extensive line of CBD products,” at more than 140 of its Pennsylvania

stores. The line includes both isolate and full-spectrum products, such as topical rubs and patches, tinctures, vape pens, oral pouches, capsules and pet products.

La Crosse, Wis.-based Kwik Trip also rolled out CBD products, including vape pens, topical rubs, oral pouches, tinctures and drops.

The company website also features an information section about CBD.

Parker’s Hires New Director of Personnel Development Parker’s hired convenience store operations veteran Dave Meloni as the company’s new director of personnel development.

Most recently, Meloni served as director of operations at Enmarket.

In his new role, Meloni oversees the recruitment, training, retention and succession planning of nearly 1,000 employees at Savannah, Ga,based Parker’s. He’s also responsible for establishing a culture of outstanding customer satisfaction at Parker’s stores, encouraging customer loyalty and creating an exceptional work environment with performance-based opportunities for career advancement.

“Dave is a leader in the convenience store industry with a remarkable talent for training employees to exceed customer expectations,” said Parker’s Founder and CEO Greg Parker. “He’s a strong addition to our team and a tremendous asset to our overall work culture at Parker’s.”

16 Convenience Store Decisions July 2019

16_IndusytryNews.indd 16

Circle K Adding Bitcoin ATMs Circle K has partnered with DigitalMint, a cryptocurrency provider, adding 20 Bitcoin ATMs in Arizona and Nevada as part of an exclusive pilot program. Similar to a traditional ATMs, Bitcoin ATMs enable consumers to exchange U.S. dollars for bitcoin. Customers can buy up to $20,000 in bitcoin per day. With this Circle K partnership, DigitalMint becomes the largest Bitcoin ATM and point-of-sale operator in the U.S. The company currently has more than 250 locations in 25 states.

7-Eleven Adds Nearly 100 BFY Products to LA Stores 7-Eleven has launched almost 100 new, better-for-you (BFY) products from 31 up-and-coming companies — all winners of its 2019 Los Angeles-based product test. The winners launched in 125 of its Los Angeles-area stores. Following the success of 7-Eleven’s Next Up event last fall, where 7-Eleven employees and Dallas-area franchisees voted on favorite new products, the merchandising and emerging brands teams launched this similar product test in Los Angeles in 2019.

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FRONTEND

YEO Highlights

Highlights from

Sixth Annual YEO Conference the

Young c-store executives and next-generation leaders gathered in Springfield, Mo., this May at the McLane Ozark Distribution Center.

By Erin Del Conte, Executive Editor

T

he Young Executives Organization (YEO)’s sixth annual conference, hosted by McLane Co., drew more than 55 young executives to Springfield, Mo., this past May. The event included educational sessions on topics such as artificial intelligence, robotics, data mining, food safety and leadership; as well as ample networking time, an inside look at the McLane Ozark Distribution Center that integrates robotics and a tour of local convenience stores.

After the educational sessions, the YEO group toured a handful of c-stores in the area, including Kum & Go, Signal Food Stores, Casey’s, Macadoodles and Farm2Counter.

Thank you to YEO sponsors, including host McLane, Apter Industries, CB4, Procter & Gamble, Purell/GOJO Industries, R.J. Reynolds and Skupos.

YEO will meet again at the 2019 NAG Conference, Sept. 8-11, in Minneapolis.

YEO attendees pose by the giant ampersand in front of a Kum & Go convenience store during a tour of local Springfield, Mo., convenience stores. The two-day event, hosted

by McClane Co., drew more than 55 young executives and featured educational sessions, networking time, convenience store tours and an inside look at the McLane Ozark Distribution Center that integrates robotics.

Attendees learn about Farm2Counter’s initiative to bring fresh produce to customers in a food desert. The store even offers cooking demonstrations.

YEO members had a chance to sample the foodservice programs and ask questions about various departments during the c-store tours.

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The GOJO team samples wine at Macadoodles. Jennifer Bloomhuff (left) with Brandace Wilson and Stephanie Payne.

John Lofstock, the editor-in-chief of Convenience Store Decisions and executive director of the National Advisory Group, tries out the cowboy hats at Kum & Go during the store tours on the last day of the conference.

At Macadoodles, which offers fine wine, beer and spirits, attendees had a chance to sample and learn about the chainâ&#x20AC;&#x2122;s wine selection. Macadoodles offers more than 3,000 labels of wine and creates an experience for guests by featuring wine tastings as well as wine classes. cstoredecisions.com

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July 2019 Convenience Store Decisions 19

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FRONTEND

YEO Highlights

Chelsea Carvalho, of FriendShip Food Stores; Dyson Williams, of Dandy Mini Marts; and Stacey Davis, of Clifford Fuel.

The YEO educational sessions kicked off with a presentation from Paul Roetzer, founder, The Marketing Artificial Intelligence Institute, on “Artificial Intelligence and The Future of Retail.”

“Eighty percent of what we do every day is going to be intelligently automated to some degree in the next 3-5 years,” he said, before providing attendees with useful tips on how to navigate the challenges ahead.

Jeremie Myhren, chief information officer, Road Ranger, spoke on “Mining Data in the C-Store Industry.” “In today’s retail climate, being a smart consumer of data is what’s going to allow you to continue to maintain relevance, and if you desire — to grow,” Myhren said. “It starts with adopting a datadriven mindset and integrating it with your organization’s culture.”

Educational sessions included lessons on artificial intelligence, robotics, data mining, food safety and leadership.

Linda McKenna, principal, Employee Performance Strategies Inc., shared the foundations of leadership in an interactive session.

John Lofstock, of Convenience Store Decisions, welcomes attendees.

TOP: Lance Smith, of McLane; Jeremie Myhren, of Road Ranger; YEO Board Chairman Bart Stransky, of RaceTrac; and Cole Fountain, of Gate Petroleum during a group dinner at Springfield Brewing Co. RIGHT: Sharif Jamal, of CPD Petroleum; Ryan Fuelling, of Parent Petroleum; Derrick Woods and Dimetri Olympidis, of Family Express; Michael Meyer, of Mach 1; John Lofstock, of NAG. 20 Convenience Store Decisions June 2019

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YEO Members Participate in

HABITAT BUILD

For the third straight year, the day before the conference, YEO members had the option to participate in a team-building event with Habitat for Humanity. A group of 16 volunteers did a full day’s work in under four hours.

The Young Executives Organization (YEO) partnered with the Greater Springfield Habitat for Humanity in Missouri to work on a new home for Amanda A., of Springfield, Mo. Amanda is a single mother of three kids who was also required to work dozens of hours on the home, which Habitat for Humanity refers to as sweat equity. RIGHT: The team from The Kent Cos. in Midland, Texas, installed windows and ventilation insulation throughout the house prior to the installation of sheetrock.

Olivia Beck, branded fuels specialist, with Beck Suppliers/FriendShip Foods, and Chelsea Caravalho, special project manager for FriendShip Foods, donated time working on the exterior of the onestory, four-bedroom home, in addition to installing soffit vents.

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YEO has donated time and money to support Habitat for Humanity for three straight years.

This year’s team project follows last year’s work in Boston on Habitat’s Operation Playhouse, where members built playhouses for active duty military personnel and veterans.

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FRONTEND

COY News

Named CSD CSD’s 2019 Chain of the Year The family-owned Tennessee convenience store chain is the 30th winner of this prestigious award for convenience retailing.

A CSD Staff Report

O

utstanding leadership, great Kwik Trip as Chain of the Year, is the The chain was voted by the local comstores and unsurpassed cus- 30th winner of this prestigious award, munity to have the best pizza, best tomer service are the hallmarks considered the gold standard in con- coffee, best c-store brand and the best bakery in the markets it serves. of the convenience store industry’s ex- venience retailing.

“It is such an honor to have been Its bakery was voted the Employer ceptional chains. Weigel’s checks each of these boxes and so much more. For selected CSD’s Convenience Store of the Year by Goodwill Industries decades, the company has been a re- Chain of the Year from all the great in Knoxville, Tenn., for its dedication spected member of the communities chains operating across this country,” and hard work in the Goodwill emit serves, has built a strong foodservice said Bill Weigel, chairman of Weigel’s. ployment training and rehabilitation program and has maintained a pristine “It’s a tribute to the qualities and lega- program. Additionally, Weigel’s was reputation as a leading employer in the cy this company was founded on over awarded the honor of the cleanest 80 years ago, and to the great man- restrooms in Tennessee by GasBuddy, markets it serves.

Following these guiding princi- agement and team members we have and graded as having the fifth-cleanest restrooms in the nation. ples, Convenience Store Decisions is in our stores today.”

The role of family businesses canproud to announce Weigel’s as the not be overstated in the convenience 2019 Convenience Store Chain of LEADING THE WAY Geographically, the 67-store chain store industry. This is a fact Weigel the Year. Weigel’s, which succeeds has never strayed far from its Pow- has carried with pride for his nearly ell, Tenn., roots. Yet, its evolution 60 years in the family business. Weifrom small town player to industry gel’s was founded as a dairy company leader has impacted the way the in- in 1931. It wouldn’t be until 1964 that dustry does business, especially as the company moved into the convea local employer and in the areas of nience store business.

“While Weigel’s continues to flourfoodservice and technology. Familyowned convenience stores ish, Bill’s biggest impact on the conare the backbone of the venience store industry has been his convenience store industry influence on his peers to strive for reand Weigel’s is a shining ex- tailing excellence,” said John Lofstock, ample of the very best the editor-in-chief of Convenience Store convenience store industry Decisions. “I have known Bill and his family for more than two decades and has to offer.

Over the past year, Wei- have had the opportunity to spend gel’s has stepped to the time with the Weigel’s team in Tenforefront in several key areas. nessee. The entire team under Bill’s 22 Convenience Store Decisions July 2019

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For decades, Weigel’s has been a respected member of the communities it serves, has built a strong foodservice program and has maintained a pristine reputation as a leading employer.

leadership represents the very best the succeed each and every day, and it’s because of them that we have this c-store industry has to offer.”

While Weigel’s has an outstanding great honor,” said Ken McMullen, operation and has earned the respect CEO of Weigel’s. “This memorable of all who have come in contact with tribute would not have been possible the brand, the chain’s legacy is its without them.”

Please join us in honoring Weicommitment to doing things the right gel’s. For seating information to the way and for the right reasons.

For example, Weigel’s remains the Weigel’s Chain of the Year award ceronly Tennessee dairy buying only Ten- emony at the Fox Theatre in Atlanta, nessee milk. This is done strictly to retailers can contact John Lofstock, support the local dairies of Tennessee, editor-in-chief of Convenience Store an industry that is struggling to grow. Decisions, at jlofstock@csdecisions.

For the past two decades, Weigel’s com. Supplier companies interested has supported Weigel Family Christ- in sponsorship opportunities should mas to support families in need dur- contact Tom McIntyre, Group Publishing the holiday season. Since 1998, er of the Convenience Store Decisions Weigel’s has taken more than 4,000 Group, at tmcintyre@csdecisions.com. underprivileged children Christmas shopping, chaperoned by employees ABOUT THE CHAIN and volunteers and funded by the OF THE YEAR AWARD CSD’s Chain of the Year award anchain and its many trade partners.

Weigel’s has also been a leading nually honors a convenience store or supporter of Wags for Warriors, a lo- petroleum chain that has established cal nonprofit organization whose mis- itself as a superior retailer and innovasion is to enhance the physical and tor in its markets of operation. CSD’s psychological quality of life for vet- first Chain of the Year award was given erans with service-related disabilities to Wawa Inc. in 1990. Weigel’s follows through the training and placement 2018 Chain of the Year winner Kwik of service dogs. Weigel’s has raised Trip. Other winners of this prestigious award include Sheetz, Maverik, Racemore than $40,000 for the program.

“Our management team, store Trac, 7-Eleven Inc., Krause Gentle team members and partnerships with Corp., Alimentation Couche-Tard, our trade partners are the reason we QuikTrip, Rutter’s and Family Express. cstoredecisions.com

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PAST CHAIN OF THE YEAR WINNERS 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Wawa Inc. SuperAmerica QuikTrip Corp.

Casey’s General Stores Inc. Sheetz Inc. Diamond Shamrock Corp.

Mapco Express Speedway Inc. Krause Gentle Corp.

Dairy Mart Inc. Amerada Hess Corp.

Huck’s Food & Fuel Petro-Canada Exxon Mobil Corp.

Kwik Trip Inc. 7-Eleven Inc. Valero Inc. Alimentation Couche-Tard Chevron Inc. Nice N Easy Grocery Shoppes Rutter’s Farm Stores Thorntons Inc. Tedeschi Food Shops Maverik Inc. RaceTrac Petroleum Inc. Family Express Corp.

QuickChek Corp.

Sheetz Inc. Kwik Trip Inc.

July 2019 Convenience Store Decisions 23

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CONVENIENCE STORE SOLUTIONS

Don’t Be Satisfied with Half the Profits Many c-stores are giving away profits by failing to get these basic necessities right for their customers.

By Jim Callahan, Contributing Editor

L

ET ME ASK YOU THIS: If you discovered a genuine gold mine on your property, would you take half and leave the other half sitting there for anyone else to take? Not a chance. Now let’s say you inherited $500,000 from someone you had helped support, would you only take $250,000? Of course not. And lastly, if you won $10 million in the lottery after playing it weekly for 25 years, would you tell the government, “You keep $5 million and I’ll take $5 million?”

No. You would not.

Well, giving up half the profitability is what I see on a near-daily basis when I stop at many convenience stores.

These are nice stores that are likely valued at $1 million to $2 million each in today’s market. But they could easily command another $500,000 to $1 million when sold, if they achieved their full sales potential.

The reason for the extra money is because c-stores are still sold more for their fuel sales, inside volume and profit than they are for the brick-and-mortar value. C-store owners must be willing to dig a little deeper to keep their stores looking good. That means fresh paint, clean canopies and nearly manicured landscaping. It does make a difference.

What’s more, this is the low-hanging fruit to maximizing profitability. In a recent report from GasBuddy, as reported in Convenience Store Decisions, c-store retailers are failing to maximize sales opportunities among their most loyal customers. The report was launched to better understand why so many customers are leaving after filling up their vehicles rather than going into the store for a snack, beverage or more. We know these customers are stopping elsewhere. The big question is, “Why aren’t they going into your store?”

KEY FINDINGS GasBuddy, with a database of 150,000 gas stations and c-stores, conducted surveys from July to December 2018. The key findings included: • In-store sales generate 72.6% of gross profit dollars.

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Jim Callahan has more than 40 years of experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CStoreDecisions.com.

He can be reached at (678)485-4773 or via email at jfcallahan1160@ gmail.com.

GasBuddy estimates suggest a similar percentage drive away after refueling.

• Forecourt conversion rates depend on whether retailers meet consumer needs. Past experiences and brand reputation play a part in this.

• Consumers want clean restrooms, well-maintained stores, healthy food options and mobile technology. You cannot fake any of these things.

• More than 75% of female customers said their decision to visit a store would be influenced if retailers promoted clean restrooms, and the restrooms would have to live up to the advertising.

I strongly believe that, in addition to the very meaningful study GasBuddy has conducted, the fuel island and the surrounding area need a lot more attention than they are getting. Planting and tending to flowers and bushes seems to be a lost art. If you do have nice shrubbery, take care of it. Don’t wait until it’s overgrown to cut and trim branches.

BIGGEST “NO-NO” However, I have saved my biggest “no-no” for last — neglecting the windshield cleaning area. As we come into the warm summer weather, the windshield cleaning area must be 100% effective. Accordingly, that calls for clean, chemically treated water, squeegees that work and a consistent stock of paper towels. This is not a once-aweek task; it is an every day, if not every shift, task.

There is much I don’t know, but of this I am sure: Travelers, as well as locals who stop to fuel vehicles and their stomachs, will not return if they can’t clean off their windshields. You can’t be out of fluid or towels or buy cheap, plastic squeegees. That might get by a major oil inspector, but it won’t pass muster with your customers. Remember, if you are not investing in these things, your competition is. They will take your customers away. So the ball is in your court. Make this the year you pick up the other 50%. cstoredecisions.com

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Cover Story

Chains to Watch - BP

BP Innovates for Tomorrow

BP has an eye toward future transformation as it invests in technological advancements, clean energy and expanding its retail footprint.

Erin Del Conte, Executive Editor

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B

P is dynamically inno- brand in the early 2000s. In 2018, vating to keep pace with BP reintroduced the Amoco digital transformation. brand to the U.S. market.

“BP is our primary brand,” said From its BPme app and soon-to-launch BPme Rewards Nicola Buck, head of marketing program to its mobile app for for BP. “Amoco is a really imporsite operators, the company is tant secondary brand for us. We upgrading the consumer expe- are committed to the U.S. market rience by reducing friction, while and to growing significantly.”

While the predominant focus testing new technological innoremains on growing the BP brand, vations for the future.

Simultaneously, BP is spear- Amoco offers an ideal solution for heading a transition to clean dealers with neighboring sites energy; crafting partnerships to that are too close together to give consumers more value; and both fly the BP flag.

“The Amoco brand is rememgrowing both its BP and Amoco brands, as well as reinvesting in bered so fondly in the U.S. from retail through its joint venture when it was around before, and has a great heritage that peoacquisition of Thorntons.

All this and more makes BP one ple remember and really love,” of Convenience Store Decisions’ she said.

At the end of 2018, BP formed Chains to Watch for 2019. a joint venture with ArcLight Capital Partners, which acquired GROWTH MINDSET With its retail fuels business Louisville, Ky.-based Thorntons headquartered in Chicago, BP Inc., which operates 191 stores in opened 176 new BP stations in six states. The c-stores continue 2018, for a total of more than to operate under the Thorntons 6,500 BP sites in the U.S., oper- banner.

“That’s a significant sign of ated by independent dealers.

The company is also expand- our move towards getting coning the Amoco brand, opening venience retail capability and 84 new Amoco-branded sites owning convenience retail stabetween 2018 and May 2019. BP tions,” Buck said. purchased the Amoco brand in 1998 from Standard Oil Company FUTURE TECHNOLOGY of Indiana, but took the brand Today, the gas pump experioff the market in favor of the BP ence can take a whopping two

“

minutes. BP is reducing friction and increasing the speed of the customer experience with its BPme mobile payment platform, which launched in 2018. With BPme, customers can open the app in the driver’s seat, remotely unlock the pump and pay.

Rewards are integrated into the app and directly applied to the fuel purchase.

In the fourth quarter of 2019, BP is set to launch BPme Rewards, which will replace its Driver Rewards program. “ I t ’s a re a l l y i m p o r t a n t evolution in our rewards journey,” said Buck, noting it takes the company another step toward frictionless fueling. In addition to awarding customers five cents off per gallon for every visit, BP is also building loyalty by creating a smoother, simpler experience.

“It’s easy. It’s automatic,” Buck said.

The app also includes gamification and surprise rewards.

Buck noted consumers today are more savvy with apps, and interactions with brands like Amazon have changed consumer expectations to where they are comfortable providing data in return for personalized rewards and a simplified experience.

“Consumers expect that from gas stations, too,” she said.

We’re investing heavily in new technology to make sure we’re transforming our offers to be relevant for the future.

”

— Nicola Buck, head of marketing for BP

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Chains to Watch - BP

“

Renewables are really important … but that’s not enough. We have to make all our forms of energy cleaner and better.

BP will also continue to offer a way for consumers to link credit cards to the rewards program.

BP is committed to growth in the U.S. like never before, Buck said.

“We’re listening to what our consumers need and want from gas stations in the future, and what our branded marketers want as well.”

— Dave Welch, director of brand communications for BP Using those insights, BP continues to develop offers and services to differentiate itself. “We’re investing heavily in new technology to make or encourage them to fill up after so We have to make all our forms of energy cleaner and better.” sure we’re transforming our offers to many miles,” Buck said.

In another test, cameras recognize BP has created an RIC framework, be relevant for the future,” Buck said.

Through its digital platform, BP if a car is dirty, allowing for proactive which stands for Reduce-Improvecontinues to test new initiatives, like car wash promotions. In a recent pod- Create. BP is reducing its own linking the BPme app to the in-car cast, BP spoke with CSD about a lab emissions and meeting its greenhouse dash system, which would give con- pilot it did to test using biometrics at gas target, improving its products to help customers reduce their own sumers insights into fuel level and the pump.

BP also launched a new app in emissions and investing in creating driving style. “We could start to talk to consumers about offers for more oil April for its branded marketers and low-carbon businesses. site operators that provides on-thego access to marketing resources, PARTNERSHIPS personalized site performance dashBP partnered with GetUpside, and boards and training materials. in January began offering real-time, “We have this in a desktop version, personalized gas saving offers to and we know it’s really well received. GetUpside and GasBuddy app users.

This mobile version gives them real- BP continues to form new regional time, relevant information about their partnerships to offer savings to conBP and Amoco branded stations in a sumers, including with several regional simple and easy-to-use way,” Buck said. Kroger brands, Mariano’s, Harris Teeter and Pick ‘n Save.

“You will see more partnerships and ENERGY FORWARD BP recently launched a new more innovation in technology as we global advertising campaign,” Keep move into 2020,” Buck said. CSD Advancing,” focused on BP’s investment in becoming a leader in the energy transition. BP has a target of 3.5 million tons of sustainable greenhouse gas emissions reductions by 2025. It’s Listen to CSD’s recent also taking action to minimize methpodcast about c-stores of the ane, the primary component of natural future, where Nicola Buck, gas, from entering the atmosphere. head of marketing for BP, “The reality we face is the world shares information about the requires more energy to fuel progress chain’s recent biometrics lab and the living standards we all expect, test, BPme mobile app and the but we’re also demanding energy importance of planning for a that’s produced and delivered in new digital future.

In the fourth quarter of 2019, BP is set to ways with fewer emissions,” said Dave cstoredecisions.com/2019/06/07/ launch BPme Rewards, which will replace Welch, director of brand communicapodcast-biometrics-and-c-storesits Driver Rewards program and further tions for BP. “Renewables are really of-the-future/ reduce friction at the pump. important … but that’s not enough.

”

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Cover Story

Chains to Watch - Fuel City

Fuel City Focuses on Family, Fun

Robust food program, unique attractions and car care make Fuel City a destination.

Thomas Mulloy, Senior Editor

W

ith an award-winning and diverse food program, strong ties to the communities it serves and a multitude of unique, family-friendly offerings, Dallas-area c-store chain Fuel City has become a Texas destination for both locals and travelers.

For all of this and more, Fuel City is one of Convenience Store Decisions’ 2019 Chains to Watch.

Founded with the Dallas store in 1999 by convenience store veteran John Benda, the chain is now run by his son-in-law, Joseph Bickham, who is president of the company.

Fuel City has four locations in the Dallas-Fort Worth Metroplex.

A fifth store is under construction in Cedar Hill, southwest of Dallas.

All Fuel City stores offer full detailing and car wash services, with some locations hosting up to 25 free vacuums. A monthly Fast Pass membership has been highly successful, Bickham said.

Fuel City also has a multitude of fuel pumps at each store, but Bickham knows none of these things are enough to survive today’s c-store environment.

“To stay competitive and differentiate ourselves,” Bickham said, “we sometimes feel like we’re mostly in the foodservice business and we happen to sell fuel.”

Instead of choosing between a franchised or proprietary food program, Fuel City chose both. There’s a Little Caesars Express, a license for making The Original Fried Pie Shop pies, and the company’s home-grown burger, sub shop and taco concepts. Bickham said the taco is pretty much modeled after the simple street taco.

“There’s not a lot of the frills and fluff that you get with some of the taco concepts now,” he said. “It’s just the five essential meats and we have very simple (ingredients), you know, fresh onion, tomato and cilantro on the tacos.”

Fuel City President Joseph Bickham with his father-in-law, John Benda, who founded the company in 1999 with the opening of the first location in Dallas.

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Chains to Watch - Fuel City

All locations also have small carts selling elote, Mexican roasted street corn dressed up with cheese, sour cream, seasoning and served in a cup. It’s very popular, especially late at night.

FAMILY ATTRACTIONS But food and fuel are just the beginning of what gives Fuel City its distinct personality. There are animals, too. It was Benda’s idea to bring in livestock at the Dallas and Haltom City stores — kind of an “urban ranch,” Benda called it.

“We’ve rotated different species in, but always there’s a stable of longhorns,” said Bickham. “Donkeys, we’ve had buffalo and zebra and camel come through. And the kids love it; and the parents can get food and fuel. And get the car washed.”

This kind of thing is not unusual for Fuel City. Back when the original Dallas location was new, founder Benda would hire a Tejano singer to perform in the parking lot on weekends. It’s the same place that had a swimming pool with bikini-clad pool girls who’d come out and buff the cars

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of drive-thru beverage customers.

Bickham said, “On Friday nights there’d be a line wrapped around the whole store. You know 25, 30 vehicles in line.”

Through the years, Bickham said, Benda has often been likened to P.T. Barnum. Little wonder, then, that Benda’s chain has been recognized for its character. Among the accolades is Texas Monthly 2006 Best Taco in Texas. But others came in the form of Dallas Observer Best Example of Texas, Ride Texas Best of Texas Readers’ Choice Awards and even a national write-up in The Wall Street Journal Weekend Edition.

Fuel City earned an Instagram shout out from Hollywood actor Shia Lebouf while the “Transformers” star was touring the nation on a food-finding mission.

The fun doesn’t end there. Fuel City has original T-shirts and hats imprinted with unique messages like “I Love the Smell of Tacos in the Morning.”

Fuel City stations are now magnets for visits from friends and strangers alike.

“We get a lot of buses,” said Bickham. “When buses come through and they’re going

through town. Or for special events and proms and all that stuff.”

PEOPLE-FIRST CULTURE What makes Bickham most proud of Fuel City?

“I guess three things,” he said.

“I’d say our focus on customer service.” Bickham stressed that a focus on people is how you keep customers coming back.

Secondly, Bickham cited his 300 employees. “And they’re all great people, and we’ve been really blessed finding really, really good, talented, hardworking individuals.” Among them are husbands and wives or multiple generations of longtime employees.

Which leads to his third point of pride. “We have an environment that rewards a lot of initiative. It’s a culture of discipline, but it’s a very fun culture.

And that’s something we’ve worked very hard to create and maintain as we’ve grown.”

While it seems like there’s so much going on at every Fuel City location, Bickham pretty much summed up how simple the company philosophy is. “It’s hard to find a place where you can go and do all these different things,” Bickham said. “And buy the bare necessities and eat great food and all that stuff in one stop.”

With that fifth store, Fuel City is well on its way to becoming an even stronger Dallas-area institution. And a Chain to Watch. CSD

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HYATT REGENCY Minneapolis, MN

September 8-11 2019

THE MOST AWAITED C-STORE EVENT OF THE YEAR!

NAG 2019 at the beautiful Hyatt Regency Minneapolis Minneapolis, Minnesota

Committed to building profits and relationships!

The National Advisory Group (NAG) is an association of small, mid-sized and familyowned c-store chains and the executives that run them. This exclusive, member-driven group convenes annually to exchange ideas with the motivation to improve their business performance and ultimately their bottom line.

The setting of this conference encourages an extremely educational, yet highly social environment. The schedule consists of topnotch speakers, retail information exchanges, opportunities to address burning issues within your business, a chance to get to know your peers in similar size operations and much more!

FOR MORE INFORMATION: RETAILERS should contact John Lofstock 201.321.5642 â&#x20AC;˘ jloftsock@csdecisions.com

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SUPPLIERS should contact John Petersen 440.250.1583 â&#x20AC;˘ info@nagconvenience.com

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SUNDAY, SEPTEMBER 8 1:00 PM – 7:30 PM Registration 1:00 PM – 4:00 PM NAG Hospitality Suite 4:00 PM – 5:00 PM NAG/YEO Board Meeting 6:00 PM – 7:00 PM NAG Networking Reception 7:00 PM – 10:00 PM NAG Opening Night Dinner Featuring Keynote Speaker Frank Siller, Tunnel to Towers Foundation 9:00 PM – 12:00 AM NAG Hospitality Suite

1:00 PM – 5:00 PM 1:30 PM – 6:30 PM 6:30 PM – 9:00 PM 9:00 PM – 12:00 AM

MONDAY, SEPTEMBER 9 7:00 AM – 1:30 PM Registration/Info Desk Open 7:00 AM – 8:00 AM Breakfast 8:00 AM – 8:15 AM Welcome/Conference Overview, NAG Executive Director John Lofstock and incoming NAG Board Chairman, Doug Galli, Reid Stores Inc./Crosby's

8:00 AM – 9:00 AM GENERAL SESSION: BURNING ISSUE # 3 Merchandising and Marketing Your Brand for Success: What are your customers looking for? From foodservice to the cold vault, customers see c-stores as a destination, but how closely do you track where they go once they enter your store? New technology, such as heat maps integrated with high-resolution cameras, allow retailers to see where customers are going, what they are looking at and how much time they spend in each area of the store. This data can help c-stores design integrated merchandising plans to drive sales.

8:15 AM – 9:15 AM GENERAL SESSION: BURNING ISSUE # 1 The Importance of Family Values in the Convenience Store Industry.

Family-owned small businesses are the backbone of our economy. They provide 55% of all jobs in the U.S. and 54% of U.S. sales, according to the Small Business Administration. Strong family values can prove extremely productive in business and this is evident in the convenience store and petroleum industries. Family businesses have left an indelible impression on convenience store chains across the country by providing outstanding leadership, innovation and stability in the communities they serve. In this session, we will hear how three unique chains have made their mark on the convenience store industry.

MODERATOR: John Lofstock SPEAKERS: • Margaret Dinneny, Chief People Officer, Wawa Inc. • Mathew Spackman, Vice President of Grow People, Kum & Go • Leo Vercollone, CEO, Verc Enterprises 9:15 AM – 9:30 AM

Break/Visit Sponsor Tables

9:30 AM – 10:30 AM GENERAL SESSION: BURNING ISSUE # 2 Local Lobbying: Why your voice matters more than ever. Whether it's increasing tobacco taxes, rising minimum wages, fuel regulations or credit card fees, convenience store owners need to make their voices heard on the important issues integral to store sales. Lobbying is an essential part of our democratic system and can help bring about change. This session will delve into how convenience store owners can make their voices be heard with lawmakers at the local and state levels to influence change that is good for business.

Golf Outing – Shotgun Start NAG Retail Store Tours: The Best of Minneapolis Dinner on Your Own to Explore Minneapolis NAG Hospitality Suite

TUESDAY, SEPTEMBER 10 7:00 AM – 4:00 PM Registration/Info Desk Open 7:00 AM – 8:00 AM Breakfast

MODERATOR: John Schaninger, President, The Schaninger Group SPEAKERS: • Ernie Harker, Brand Therapist, Ernburn Brand 9:00 AM – 9:15 AM

Break/Visit Sponsor Tables

9:15 AM – 10:15 AM GENERAL SESSION: BURNING ISSUE # 4 Developing Your Digital Strategy: How artificial intelligence is impacting retail. The hype around artificial intelligence (AI) has never been higher – and one industry where it has a chance to make a major impact on profits is retail. From interpreting data to predicting sales needs, artificial intelligence is redefining retail. This panel will discuss how a digital strategy ties into all aspects of the store including loyalty, the back-office and the POS system. It will also discuss how retailers can use AI to engage customers through communication and experiences, better manage inventory and price products optimally.

MODERATOR: Paul Roetzer, Founder and CEO, The Marketing Artificial Intelligence Institute SPEAKERS: • Doug Haugh, President, Parkland Fuel Corp.

• Pat Lewis, Partner, Oasis Stop N' Go 10:15 AM – 10:30 AM Break/Visit Sponsor Tables 10:30 AM – 12:00 PM Information Exchange Breakout Sessions:

MODERATOR: Tom Briant, Executive Director, The National Association of Tobacco Outlets (NATO) SPEAKERS: • Jim Calvin, Executive Director, The New York Association of Convenience Stores (NYACS) • Jerry Smith, Director or Retail Operations, Tobacco Central/Low Bobs 10:30 AM – 10:45 AM Break/Visit Sponsor Tables 10:45 AM – 12:15 PM Information Exchanges Part 1 12:15 PM – 1:15 PM Lunch

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1) New and Emerging Fuels.

MODERATOR: Bob O'Connor, President, Jetz Convenience Centers 2) HR: There’s an app for that.

MODERATOR: Sharif Jamal, Corporate Training Manager, Chestnut Petroleum

6/24/19 12:16 PM

HYATT REGENCY — Minneapolis

September 8-11, 2019 3) CBD, Vape and Tobacco: What the future holds for this growing category and how FDA regulations can impact sales.

MODERATOR: Paul Crozier, Category Manager for Cigarettes & Tobacco, Sheetz Inc. 4) Foodservice: Forecasting demand.

MODERATOR: Kalen Frese, Food Service Director, Warrenton Oil Co. 5) How is Industry Consolidation Changing the C-Store Industry?

WEDNESDAY, SEPTEMBER 11 7:30 AM – 12:00 PM Registration/Info Desk Open 8:00 AM – 9:00 AM Breakfast 9:00 AM – 10:15 AM GENERAL SESSION: BURNING ISSUE # 6 How Cashier-less Sites Will Impact the Convenience Store Industry.

Amazon and other cashier-less concepts are no longer a novelty. They are fast becoming destinations in markets such as San Francisco, Seattle and Chicago, and they are challenging conventional convenience stores in the race for time-pressed customers. Beyond retail competition, the concept is also changing consumer behavior to expect a frictionless experience.

While some municipalities are passing laws to require stores to accept cash, convenience store owners must develop a strategy to compete with this emerging trend.

MODERATOR: Jonathan Ketchum, Vice President of Retail, Energy North Group 6) LEED Certification and Embracing the Green Movement.

12:00 PM – 1:00 PM

Lunch

1:15 PM – 2:30 PM GENERAL SESSION: BURNING ISSUE # 5 Equipped for Foodservice Success: How to execute a successful foodservice strategy in small spaces. Space limitations used to be the bane of convenience store operators who wanted a professional foodservice program. But now manufacturers are stepping up to the plate with equipment that serves multiple purposes and still fits nicely within the c-store footprint. Choosing the right equipment can often be an overwhelming task given the range of options available, so retailers must also focus on cost, machine life, maintenance and ROI considerations.

MODERATOR: John Matthews, President, Gray Cat Enterprises SPEAKERS: • Jon Cox, Senior Director of Food & Beverage, GetGo • Ted Roccagli, Director of Partnerships & Preferred Vendor Programs, Empire Petroleum 2:30 PM – 2:45 PM

MODERATOR: Richard Crone, President, Crone Consulting SPEAKERS: • Raymond Huff, President, HJB Convenience 10:15 AM – 10:30 AM Break/Visit Sponsor Tables

10:30 AM – 11:30 AM Ideas Boot Camp Best practices and conference wrap up with John Lofstock, Executive Director, NAG, and Brian Unrue, Vice President of Operations, Clark's Pump N Shop.

11:45 AM 12:00 PM

Conference Wrap Up and Takeaways Departures

Break/Visit Sponsor Tables

2:45 PM – 4:00 PM YEO BREAKOUT SESSION How Millennial Insights Can Connect Your Brand with Customers SPEAKER: Linda McKenna, Managing Partner, EPS Inc.

5:30 PM – 6:30 PM 6:30 PM – 9:00 PM 9:00 PM – 12:00 AM

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NAG Networking Reception Dinner & Awards Ceremony NAG Hospitality Suite

6/24/19 6/24/19 12:1712:59 PM PM

HOW TO REGISTER

Go to: www.nagconvenience.com. You will receive a confirmation email after completion.

HOTEL PRICING

A block of rooms has been reserved for the NAG Conference at these special rates: • Standard rooms at $199/night • Golf rate is $150 for golf and $25 for club rentals

As the convenience store and petroleum industry continues to evolve, training the leaders of tomorrow is more important than ever before. To help young executives have a group that is solely focused on exchanging personal experiences with peers in their age group, the National Advisory Group (NAG) is proud to announce that it has relaunched the Young Executives Organization (YEO).

YEO’s mission is to cultivate young talent in the convenience store and petroleum industry through implementation of education and networking. YEO accomplishes this mission by leveraging the experience of NAG members to help foster superior leadership skills.

YEO members are industry leaders who are approximately 40 years of age or younger. Members are entrepreneurs, leading top businesses and actively pursuing a higher level of professionalism in the convenience store and petroleum industry.

Your hotel costs are NOT included in the cost of the conference and should be booked through the NAG Hotel Block at the Hyatt Regency (https://www. hyatt.com/en-US/group-booking/MSPRM/G-HARB).

Please make your room reservation by 8/16/19.

CONFERENCE REGISTRATION RATES

Member • April 15th - July 20th: Super Saver Price, $579 • July 20th - August 12th: Early Bird Price, $629 • August 13th ownward: $779 Non-Member • April 2nd - July 20th: Super Saver Price, $679 • July 20th - August 12th: Early Bird Price, $829 • August 13th onward: $879 • Spouse/Guest $399

Membership in YEO provides young convenience store and petroleum industry executives with an opportunity to network with other NAG members and influential industry leaders. It also gives young executives a platform to express their idea, leadership abilities and vision for the future of convenience retailing.

Membership in YEO is open to all NAG-member company employees at no cost. If you are not a NAG Member, join NAG now at www.nagconvenience.com. If you are a young executive or if your operations has a young up-and-coming executive please join us in 2020.

For additional information, contact John Lofstock at jlofstock@ csdecisions.com or YEO Board Chairman Bart Stransky at bstransky@racetrac.com.

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The convenience store industry’s young executives and next-generation leaders face unique challenges as they grow their businesses in the fast-paced, competitive convenience store market. The National Advisory Group’s (NAG) Young Executives Organization (YEO) was formed specifically to addresses these challenges and help the industry’s leaders of tomorrow identify solutions with others in their age group. YEO exists to serve as an effective conduit for getting young professionals more involved and prepared for leadership positions both in their companies and in the broader convenience store industry.

Convenience store companies must identify their next-generation leaders and groom them for management positions. This is where YEO can help.

YEO membership offers next-generation leaders a network of other young leaders in similar positions. The group meets twice annually at an annual roundtable in the spring and the NAG Conference in September.

For information on joining YEO or NAG, contact NAG Executive Director John Lofstock at jlofstock@csdecisions.com.

THANK YOU TO OUR 2019 SPONSORS:

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Foodservice

Co-brands vs Proprietary

Getting Started with Foodservice

Whether introducing proprietary or co-branded foodservice, savvy c-store retailers first build a foodservice culture.

Fast Facts: » Proprietary and cobranded programs offer different benefits and challenges. » Learn by building a simple coffee and roller grill program before jumping into bigger foodservice initiatives. » With any type of food program, building a foodservice culture is critical to success.

Erin Del Conte, Executive Editor

A

s the c-store landscape evolves, more operators view foodservice as a necessary differentiator and traffic driver for their business.

Before embarking on a foodservice initiative, c-store operators must recognize it’s a radically different business model from the retail business they’re accustomed to running. Foodservice has different margins and labor needs, and spoilage is a vital part of the equation.

C-stores must also identify whether a proprietary or co-branded program works best for their capabilities. Regardless of which a c-store selects, developing a foodservice culture internally is crucial for running a successful food operation.

“Retailers probably realize they need a food culture for a proprietary program, but they may not think they need it as much for the brand because they believe it’s coming with the program, and it really

34 Convenience Store Decisions July 2019

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doesn’t. It has to be developed internally,” said c-store veteran Jerry Weiner, founder of Jerry Weiner Consulting.

CO-BRAND SUCCESS Cenex Zip Trip, which operates 36 c-stores in Montana, Wyoming, North Dakota, South Dakota and Minnesota, partners with co-brands to provide foodservice to its customers.

“The name recognition on co-brands puts you ahead of proprietary brands with your customers because they already know what to expect from prior experience,” said Jon Fleck, Zip Trip merchandising manager. “The cookie cutter program makes it easier to get into, the point-of-sale is exceptional and the training down to an art.”

The chain offers a Hot Stuff Pizza program in three stores and a Godfather’s Express in one store in Fergus Falls, Minn. cstoredecisions.com

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h

75% of Americans believe

c-store foodservice has improved in the past five years.

- Source: GasBuddy, Beyond the Pump Report, May 2019

Zip Trip also participates in CoreMark’s fresh program, through which it offers sandwiches, salads, burritos, parfaits and fruit cups. The program makes it easy for Zip Trip to offer consistency in its sandwich cases, receive multiple deliveries per week and receive expert advice from foodservice professionals. Zip Trip also offers a Basilio’s pizza program through CoreMark at eight stores. Basilio’s includes premade, frozen, personal pan pizzas that Zip Trip cooks in a pizza oven and sells out of a warmer.

“This gives us the opportunity to sell pizza in stores with smaller footprints that can support a food program,” Fleck said.

Zip Trip uses its own employees to run the food programs at all of its sites.

As for training, “Godfather’s has an extensive training course in Omaha, Neb., for our foodservice managers, while Hot Stuff has their trainers train at the store,” Fleck said. “They also have a salesperson on site every other week to take orders, give training and answer any questions we have. Overall, the training is great at teaching you how to be successful in the foodservice arena.”

ASKING THE RIGHT QUESTIONS Weiner agreed that partnering with a co-brand provides “instant credibility,” due to the brand recognition. But co-brands have various restrictions too, he said, and it’s important to be clear about those restrictions before committing.

Can someone else open the same co-brand a block away or do boundary rules exist? Will the brand restrict which items you can sell on the c-store cstoredecisions.com

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side — like roller grill products — or limit your fountain selection? Do you have access to new menu items the brand launches or will some of the most advertised products be unavailable to the c-store version of the program? If the brand features delivery at some locations — and customers expect that — will your location have that option, too?

“Be leery of brands that tell you they have no royalty fees,” Weiner warned.

“You have to buy all your products from them. Trust me, you’re paying a fee. It’s in the cost of goods, which is not a benefit because now you’re paying royalties on your spoilage, which you don’t do if you’re paying the royalty on your sales.”

In other words, investigate, because every brand has a royalty fee somewhere, Weiner advised.

Source: GasBuddy, Beyond the Pump Report, May 2019

PROPRIETARY PATIENCE If selecting a proprietary food program, remember the success or failure of the program will impact the value of your c-store brand. When developing a proprietary food brand, you’re also creating the procedures and processes, nurturing the program and making ongoing adjustments to food products and overall execution.

“Understand that it will take three to five years for you to see the real benefits of doing this,” Weiner said. “That’s not a guess.

That’s going to happen.”

STEP ONE Before leaping into any food program — proprietary or co-branded — it’s crucial to have created an effective coffee program and gained experience with a roller grill offering or simple breakfast program.

“If they haven’t mastered the basics of operating foodservice in those more simplistic programs, they’re going to have a tremendous issue, whether it’s branded or proprietary,” Weiner said. CSD July 2019 Convenience Store Decisions 35

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Category Management

Chocolate

Breaking the

Chocolate Mold Flavor innovation and premium demand shake up the chocolate category at c-stores.

By Thomas Mulloy, Senior Editor

L

ast year, consumer research firm Mintel predicted innovative and premium products would begin to occupy a larger share of the U.S. candy market. So far, that prediction appears to be coming to fruition at convenience stores.

“Year to date, chocolate is up over 7% for us, and I expect that trend to continue into summer,” said Daniel Moran, category manager for the Rotten Robbie chain with 34 stores in Northern California. “I utilize a proven strategy of ‘two for $X’ promos with overlapping displays.”

Rotten Robbie’s numbers are in line

38 Convenience Store Decisions July 2019

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with a Zion Market Research report that estimates the global chocolate market is growing at a compound annual growth rate (CAGR) of 7% between 2018 and 2024. Smart marketing and the ability to adapt to market changes help, too.

Plaid Pantry’s Director of Marketing Tim Jones said that, for his 108 stores serving the Pacific Northwest, mainstream chocolate candy is trending down, but the chain adjusted by switching gears to higher-end products.

“We have expanded our variety of premium, imported and specialty chocolate offerings,” said Jones. “There is growth in

Fast Facts: » Consumers want a balance of familiar and adventurous flavors. » Stand-up bags enhance displays, encourage larger bag purchases. » Millennials show preference for fine chocolate.

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Category Management

Chocolate

Some 90% of consumers enjoy mainstream chocolate, 70% premium and 27% consume fine chocolate.

- Source: National Confectioners Association, “Getting to Know Chocolate Consumers,” May 2019

this sub-segment, but not enough to move overall category performance.”

FLAVOR INNOVATION That shift fits recent chocolate consumption trends by millennials, who’ve displayed an above-average preference for fine chocolate made by small, artisan chocolatiers, according to a May 2019 National Confectioners Association report, “Getting to Know Chocolate Consumers.” The report also noted premium chocolate — priced at $11 per pound and up — grew more than 19% in 2018.

Mintel’s “Chocolate Confectionery US 2018” report found more than three-fourths of chocolate buyers said they would pay more for premium chocolate. Mintel reported customers crave more unique and savory flavors, as well as health benefits like added protein.

Some of the flavor innovations have been successful for Plaid Pantry.

Jones pointed to Snickers share size — with peanut butter or almond butter — as one of the chain’s better-selling chocolate items.

“Kinder Surprise Eggs are a more recent best-seller for us,” he added.

Rotten Robbie’s Moran is stocking outside the flavor box, too, and showing success with it.

“I brought in quite a bit of innovation this year, but the Twix Triple Chocolate has outperformed all of them,” said Moran. “I thought it was a great flavor, so I scheduled a lot of displays, and I’m happy to see such strong numbers as a result.”

C-store retailers can expect much more to come in the area of flavor innovations. Look for floral and botanical flavors to emerge this year in sweets and other categories, according to the “Global Floral Flavors Market 2018” report from Research & Markets. Ingredients and extracts from natural flowers are expected to see a CAGR of 9.95% between 2018 and 2022. Preference for florals, like dark chocolate, is also driven by perceived health benefits. Consumers are also looking for a combination of authentic and adventurous tastes.

Kerry Foods, an industry additive maker that specializes in flavor trends,

“

Year to date, chocolate is up over 7% for us, and I expect that trend to continue into summer.

”

—Daniel Moran, category manager, Rotten Robbie 40 Convenience Store Decisions July 2019

38-40_CM_Chocolate.indd 40

listed florals chamomile, rose, saffron and lavender among its “2019 Taste Charts” list of fastest-growing flavors over the past three years, all of which are likely candidates for blending with chocolate.

The fastest-growing flavors in the past year appear on Kerry’s “Emerging Flavors” list and include ube — a Philippine purple yam — alongside horchata, chai, wasabi, buttermilk and basil. Look for more sweet and savory combinations, too. Rosemary, bacon, cheese and chamoy also made Kerry’s list of savory emerging flavors.

MERCHANDISING STRATEGIES In terms of packaging, Jones said Plaid Pantry sees greater use of standup bags. The stand-up bags create a clearer, more uniform product display and make it easier for customers to find the products they are seeking.

With an influx of new innovation to the chocolate category and limited space on c-store shelves, many c-stores are finding help from their supplier partners when optimizing store sets for success, including best practices in product placement based on shopper behavior research.

“I work with the Hershey Customer Insights team to optimize our schematics,” said Rotten Robbie’s Moran. “They do a great job, and I appreciate their ... recommendations. We’ve used their ‘strike zone’ merchandising strategies for two years in a row, and I believe it’s helped sales.” CSD

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Category Management

Meat Snacks

Meaty

Opportunities An influx of meat snack varieties — from adventurous flavors to alternative protein types — are creating excitement in the category.

Thomas Mulloy, Senior Editor

Fast Facts: » Consumers are increasingly seeking meat snacks for protein and on-thego meal replacement. » Some 20% of women eat meat snacks, according to FONA International. » Plant-based jerky is replicating the texture of meat using coconut, mushroom and jackfruit.

42 Convenience Store Decisions July 2019

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T

oday’s meat snack consumers are seeking protein on the go, a need that goes hand-in-hand with a trend toward healthier lifestyles.

And gone are the days where a cylinder near the front counter featuring a single flavor of beef sticks fuels meat snack impulse buys.

Customers want more variety when it comes to meat snack flavors and more types of protein, too.

“I’m getting a health-conscious group who are going for proteins,” said Scott Zaremba of Zarco USA, of his meat snack customers. Zaremba owns two c-stores in Lawrence, Kan. He added that, for the most part, this health-conscious group is made up of millennial shoppers.

Meat snack manufacturers are responding to these shifting customer demands with a wide array of new products to satisfy an evolving market.

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GROWTH POTENTIAL The U.S. is the largest meat snack market in the world, according to the Mordor Intelligence report “Meat Snacks Market – Growth, Trends and Forecasts (2019-2024).”

A 2018 trend insight report by FONA International, “Meat Snacks: Accelerated Opportunity,” points to meat snacks as the fastest growing snack food. Growing along with it have been form and flavor options.

While mainstream flavors like teriyaki, sweet barbecue and pepper continue to entice customers, manufacturers are also debuting flavors like pepper pineapple chili, chicken sriracha, cilantro lime turkey and bison bacon cranberry. Jerky is mixing it up too, with options like jerky trail mix, featuring jerky, dried fruit and nuts mixed together. Other varieties include jerky combined with cheese cubes and chocolate-covered pretzels.

While beef rules the barnyard and chicken, pork and turkey are familiar choices, the explosion in taste options is nearly matched by novel protein offerings as seen in lamb, elk and venison jerky. One brand offers a blend of pork and either alligator or kangaroo. There’s Australian Wagyu beef (a Japanese breed of cattle) and also biltong jerky, which uses an African curing process to create a more tender meat snack compared to traditional jerky.

NONTRADITIONAL APPEAL And don’t count out non-meat eaters. Plant-based jerky options replicate the texture of meat using coconut, mushroom and jackfruit, among other ingredients. These products open up sales to vegetarian and vegan consumers looking for the same benefits and tastes as meat snack consumers.

Americans see meat snacks as basic food products, Morder reported. So it’s not surprising they’ve come to expect the same things of the category as other foods — translation: More choices. cstoredecisions.com

42-43_CM_Meat Snacks.indd 43

Zaremba noted the meat snacks training, and so meat snacks do protrends he sees are similar to those in vide benefits that women are seeking, other categories today. “Everybody is as well.”

By increasing the options, meat trying every flavor, and everything they can think of to help expand their mar- snacks have increased their product appeal to women. Some retailers, ket share,” he said.

As meat snack manufacturers focus FONA reported, are already targeton long-term strategies that include ing active women who are looking expanding flavor and product varieties, for a healthy snack. That dovetails it’s creating an opportunity to entice with opportunities to elevate some of nontraditional meat snack consumers these newfangled meat snack choices to premium status. to the category.

Pictured on the lefthand page, the Buc-ee’s in Fort Worth, Texas, features an entire wall of its proprietary meat snacks that grabs customers’ attention. Pictured above, Buc-ee’s also displays a large collection of assorted meat snacks in its snack aisle.

“I’m getting a lot of the mothers buying for the kids,” said Zaremba.

“So again, they’re looking at that and trying to get them a little healthier choice of protein.”

While men have traditionally been the category’s target market, 20% of women say they eat meat snacks, according to the FONA report. Darren Seiffer, food industry analyst with market research company The NPD Group, said there may be an opportunity there.

“But you know it’s not just men who are seeking more protein and trying to avoid sugars in their diet,” said Seiffer. “We see women trying to get fit, as well. We see more and more of them trying to do some more strength

“So (meat snacks are) sensible, in the sense that they do provide the protein, and they have a health halo around them,” said Seiffer. “But where they might have some opportunities is to provide a little bit of a sense of an indulgence at the same time.”

The convergence of these two motivations — health and indulgence — is going to become even bigger over the next few years, he added.

For c-stores, the countless options now available in the category for consumers may also be the key to expanding sales of meat snacks to a broader consumer demographic. It boils down to one conclusion: There’s opportunity in meat snacks. CSD July 2019 Convenience Store Decisions 43

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Category Management

Cold Coffee

Cold Brew

buzz

Cold-brew coffee is being touted as the darling of the caffeinated beverage category. In markets where consumers have developed a preference for it, it can be a profitable addition to c-store cold vault or dispensed beverage sections.

Marilyn Odesser-Torpey, Associate Editor

G

iven increasing customer excitement surrounding cold-brew coffee, many convenience store retailers across the U.S. have been getting in on the trend by adding the beverage to their cold vaults and/or dispensed areas.

While some retailers expressed encountering specific challenges with cold brew sales and, as a result, are carrying only a representative sampling of the beverages, others have been experiencing sales that range from good to great and growing.

At Yesway, for example, “cold brew has been a hot category” since it hit the stores last year, according to Derek Gaskins, the c-store chain’s senior vice president of merchandising and procurement. Yesway, which has 150 stores in nine states, currently carries four to five brands of cold brew.

To meet the increasing consumer interest in and demand for the product, the company is expanding that array of brands and has plans for private-label development.

“Cold brew is starting to go mainstream as consumers experience the true difference between it and regular-brew coffee,” Gaskins explained. “It is smoother, and because it’s steeped longer, it delivers more robust flavors without the acidity. All of that really resonates with consumers.”

44 Convenience Store Decisions July 2019

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Category Management

Cold Coffee

The difference between cold brew and regular, iced coffee is that cold brew uses room temperature or cold water that remains in contact with the grounds for between 12 and 24 hours, while iced coffee is brewed the traditional way using hot water that is then chilled or iced.

Gaskins added that, in addition to the flavor, the caffeine boost from cold-brew coffee is also a major driver of sales, much as it is in energy drinks.

At Yesway, he pointed out, Peet’s and Starbucks have both delivered solid sales and growth.

11% of consumers reported drinking

cold-brew coffee in the past week, according to National Coffee Association’s “National Coffee Data Trends” report for 2019. One in five American adults say they drink cold brew regularly or occasionally.

EXPANDING SEGMENT A constant influx of new brands and flavors make keeping up with coldbrew coffee a challenge, especially in “exotic” and is sticking with the ones that offer more mainstream appeal. c-stores with limited cold vault space.

“It’s a growing category, like the Scott Zaremba, president of Zarco USA, which has two convenience water category, particularly among stores in Lawrence, Kan., has room for the 25-to-50-year-old age group,” only a few of the name brands, such Zaremba said. “They’re a dedicated as Dunkin’ Donuts and Starbucks. He group who are loyal to the product.”

He noted that cold brew fans are said they sell well, especially the flamigrating from soda to coffee in the vored varieties.

In his c-stores, it is crucial that he afternoons and evenings, as well as keep a “sharp eye” on the brands and drinking it in the mornings. Even in the flavors that sell best. He has also cut mornings, it’s the canned product his down on flavors that he describes as consumers prefer.

“I had dispensed cold brew in the stores for a while, and it didn’t sell, so I eventually took it out,” he said. “People seem to like the RTD product because of its grab-and-go convenience.” » An influx of ready-to-drink Meanwhile, in one convenience market and most of the nine cafes on and dispensed cold brew Iowa State University’s campus, disflavors and brands are pensed cold brew “has really taken off, arriving in the market. really grown in popularity,” said Kristi Patel, assistant director for retail oper» Consumers are migrating from ations. The unsweetened cold brew is soda to cold brew for afterdispensed from a keg. noons and evenings.

“Our customers like the flavor profile of the cold brew; it’s smoother,” » Consumers ages 25 to 39 are Patel noted. the driving force behind cold Cold brew got off to a fast start brew growth. when it was first introduced at Quick Shop c-stores with 13 locations in central Alabama. “It quickly grew like crazy,

Fast Facts:

46 Convenience Store Decisions July 2019

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but since then has flattened out,” said Quick Shop President David Collins.

“We still do well with Starbucks and Monster Java in certain flavors, but with so many new brands on the market and so many new flavors being added, it’s not possible to keep up.”

In three of its c-stores, the company also experimented with nitro cold brew, which is infused with nitrogen, but the popular trend didn’t catch on with the chain’s customer base.

At select travel centers across North America, Pilot Flying J stores dispense freshly made cold-brew coffee. Guests can choose from a wide selection of creamers, toppings and syrups to create their own personal cup.

“They like the all-natural energy boost they get from cold brew,” said Stephanie Myers, external communications supervisor for Pilot Flying J, which operates more than 750 retail locations in 44 states.

According to the National Coffee Association’s “National Coffee Data Trends” report for 2019, 80% of consumers are aware of cold-brew coffee, and the under-40 demographic — and specifically ages 25 to 39 — is a formidable force driving “remarkable growth” in the category. Coffee drinkers ages 18 to 24 are the nexthighest consumers of cold brew. CSD cstoredecisions.com

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Operations

Controlling Costs

f Often overlooked and easily misunderstood, tax deductions exist for convention and trade show-related expenses.

Mark Battersby, Contributing Editor

I

ndustry events such as September’s National Advisory Group (NAG) Conference in Minneapolis are a good way to gain know-how, find new suppliers and network with others in the industry.

Best of all, Uncle Sam, in the form of our tax laws, is willing to pick up the expense of attending many events — at least for some.

Unfortunately, many deductions for show attendance previously claimed on the personal tax returns of attendees were temporarily suspended by the 2017 Tax Cuts and Jobs Act (TCJA), the same bill that put a bigger crimp in the meals and entertainment deductions.

The TCJA eliminated, at least until 2026, the deductibility of some itemized deductions on the tax returns of individuals. That means that unreimbursed employee business expenses — including expenses for travel, lodging, meals, entertainment, continuing education and others — can no longer be claimed.

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Fortunately, the rules for deducting SIDE TRIP STIPULATIONS the expenses for getting to, staying at Generally, taking extra days for a and attending meetings, conventions, mini-vacation won’t result in the loss trade shows or seminars that formerly of the show-attendance deduction. applied to both individual attendees The tax rules permit a deduction for and businesses, remain only for con- the total travel costs when the main venience store businesses — including purpose of the trip is attending a console proprietorships. vention, trade show or conference.

Although the TCJA isn’t too clear on When combining a vacation or side how the new law applies to business trip with convention attendance, a meals, under the new law, entertain- good rule is to spend more days on ment is no longer deductible. No business than on pleasure. Lodging change was made to the 50% deduc- expenses cannot be deducted for tion for business meals or the 100% personal days, but purchasing a deduction for expenses incurred for reduced-fare ticket requiring stay-over recreational, social or similar activities days means lodging costs for stay-over primarily for the benefit of employees. days is permissible.

The tax laws limit the business meal When friends, family or other deduction to only 50% of the expense. guests accompany an attendee to a Not too surprisingly, the rules in this show, convention or conference, only area contain quite a few gray areas. the business-related portion of the If, for instance, the convenience store expenses can be deducted. In other business foots the bill to take employ- words, deducting the cost of the famees to a conference, the full amount of ily’s hotel suite is a no-no. Instead, their meals is deductible by the busi- deduct the cost of a single room. ness. The 50% rule applies only to the If a bonafide business purpose business owner. exists for the individual’s presence cstoredecisions.com

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for Conferences and Trade Shows Fast Facts:

and can be proven, a tax deduction might result. Incidental services, such as keeping notes or assisting in entertaining customers, are not enough to make the expenses deductible.

Any convenience store operation clearing the hurdles created by our lawmakers, with the proof to support it, may be able to deduct the entire cost of the convention, show or conference trip (subject to the usual 50% limit on meals and entertainment).

SPECIAL CIRCUMSTANCES However, the rules are tighter if the event is held outside North America or on a cruise ship.

Foreign Conventions: In order to deduct the expense of attending a trade show or convention held outside North America, the c-store business must show that the event is directly related to the active conduct of the operation, and it is as reasonable for the event to be held outside North America as it is to hold it within. cstoredecisions.com

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Cruise Ship Conventions: In order to deduct a cruise ship convention, meeting or other event, even more stringent rules exist. First, the cruise ship must be a U.S.-registered vessel. Next, the ship must make all of its ports of call in the U.S. or U.S. possessions. Finally, the tax law limits cruise ship convention deductions to only $2,000 per year.

» The 2017 Tax Cuts and Jobs Act temporarily suspended many deductions for event attendance previously claimed on personal tax returns, but such deductions still exist for businesses. » Tax rules permit deductions for total travel costs when the main purpose of the trip is attending a convention, trade show or conference. » Special tax rules apply for events held outside North America or on cruise ships.

REMEMBER RECEIPTS While receipts for expenses of $75 or less are not required, when attending a show, meeting or conference, a copy of all charges, political, social or other purposes as well as a copy of the convention unrelated to business, only a limitedschedule/agenda can help prove expense deduction may be available.

Owners and operators of it is relevant to the convenience store business. And while keeping convenience store businesses needing all receipts may not be required, it additional help with this confusing area of our tax rules might seek doesn’t hurt to do so.

As with the expenses of other professional advice.

Additional guidance from the IRS, business trips, the primary reason for attending must be business-related in “Publication 463: Travel, Entertainment, order to qualify for deductions. When Gift and Car Expenses” is available at: it comes to events for investment, irs.gov/formspubs. CSD July 2019 Convenience Store Decisions 49

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Technology

ATMs

The Shifting

Landscape of

ATM Ownership As banks and large networks go surcharge-free, new technology is set to help retailers compete.

Thomas Mulloy, Senior Editor

I

t may seem like American consumers brandish debit or credit cards like W ild West gunslingers. The truth is, for most purchases, cash still reigns.

Nearly half of all transactions under $25 are done with cash, according to 2016 preliminary figures from the Diary of Consumer Payment Choice. The U.S. has the highest number of ATMs per capita in the world.

Simply put, people trust cash.

That’s especially true of independent ATM users, who statistically have lower incomes, higher unemployment, lower home values and less college education. Most of those cash machines are in convenience stores, according to

Fast Facts: » While ATM surcharges help offset costs, some retailers opt for surcharge-free ATMs to attract customers looking to avoid extra fees. » ATMs are beginning to incorporate biometrics for user identification.

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Some c-store operators look to compete by dropping their ATM surcharge. The idea is to attract so-called “surcharge avoiders,” who’ll spend SURCHARGE-FREE ATM fees, like surcharges and bank more in the store more often. That fees, run the risk of alienating these added income would have to offset users and sending them to another the loss of surcharge revenue. business to get and spend their cash.

Banks often charge non-network IT’S ABOUT NETWORKING fees ranging from $2 to $3.50 — often Of the 17 or so large ATM networks without telling the consumer. When in U.S., the two largest non-bank netthe fee appears on the customer’s works are Cardtronics, with more statement, it’s listed as an “out-of-net- than 100,000 machines under the work” fee.

Allpoint Network brand, and Payment “Well, here’s the poor store owner Alliance International (PAI), operatand ATM guy — they have to buy ing more than 70,000 ATMs under the the machine, keep it working, keep MoneyPass brand. it loaded — it’s a costly thing,” said They boast surcharge-free networks, National ATM Council (NATMC) serving some of the largest retail President Bruce Renard. “The bank outlets in the nation. does a millisecond electronic transFor those retail outlets, the service action that costs nothing, and they’re is turnkey — the c-store performs no charging as much or more than maintenance. It simply collects a cut of the ATM guy, and their (fee) is not the network fee revenues. disclosed.”

North America’s largest c-store Advocates for independent ATM chain, 7-Eleven, which has more than owners say the practice is inten- 11,600 stores in North America, signed tionally misleading and implies the on with MoneyPass in May 2018, machine owner took the fee rather rolling out nearly 8,000 surchargethan the bank. Those same advocates free ATMs. point out that financial laws and regLate last year, Toronto-based ulations are increasingly favoring the Parkland Fuel Corp. renewed its bank-owned ATMs. agreement with Cardtronics Canada the “2018 Locational Study of ATMs in the U.S. by Ownership.”

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More Than Just Money Look for ATM service advances in the next two years to include an array of functions, some that have little to do with dispensing money. For example, ATMs may be able to: • Sell e-gift cards that can be loaded onto a cellphone or sent via email as a gift.

• Distribute product rebates and frequent shopper rewards either in cash or to a cellphone or other device.

• Offer no-contract cellphone top offs.

• Facilitate sportsbook betting in states that allow wagering outside of casinos.

• Allow transactions using cryptocurrency. For example, Bitcoin ATMs are gaining traction with thousands already deployed.

And gaming kiosks modeled on ATMs will be able to dispense cash prizes.

to maintain its 208 ATMs and add Louisiana, every location collects the another 280 cash machines, bring- same surcharge. The actual charge ing to 486 the total of ATMs across amount is reviewed regularly with the Parkland’s Corner store, FasGas and ATM network’s input.

Another option is a floating surPioneer stores in Canada.

The chains still receive revenue and charge, according to economist Calum the benefit of customers in their stores Robinson in a 2018 ATM Marketplace article, “How to Become a Surcharge with cash in hand.

But for smaller retail operations, Heavyweight.” Some independent installing an ATM requires an upfront ATM advocates are touting technolpurchase of a machine and opera- ogy that allows the amount of the fee tional costs. The surcharge offsets to fluctuate depending on time of day, local events taking place, number of those expenses.

For Brent Mouton, CEO of Hit-N- nearby ATMs and other factors.

Run Food Stores, the fee method is simple, and dropping the surcharge BIOMETRICS just doesn’t make sense.

Cardless technology is already in “I’ve talked to some people that use around the world and will see an have done it, and you didn’t gain increase in the U.S. in the near future. enough to offset what you made on The trend is seen as a more secure way the surcharge,” he said. Across Hit- for consumers and financial compaN-Run’s 11 convenience stores in nies to do business. cstoredecisions.com

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Instead of using a card, ATM user identification is moving toward biometrics — much like using fingerprint touch authorization to access a cellphone.

The most popular biometrics methods are a multiple-fingerprint scan, finger-vein scan, palm scan, iris scan and facial recognition. Biometrics can also be used as just one piece of multi-factor identification, perhaps using it along with a card, PIN or both.

Renard of NATMC said the four-finger method is the current favorite.

Plus, the scan is encrypted as a oneuse digital code, not an image — so it can’t be stolen and used again, as can the data from a magnetic stripe or a PIN. Biometric ATMs are already in wide use in Japan and gaining in numbers in Mexico, South America, Africa and the Middle East. CSD July 2019 Convenience Store Decisions 51

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Technology

Fuel Pump Security

Thieves Target Fuel Pump Card Readers

Jeremie Myhren has been managing IT in the convenience retail industry since 2000. He is the chief information officer for Road Ranger in Rockford, Ill.

Shimming is a new technique fraudsters are using to steal credit card information from chip cards at the fuel pump.

Jeremie Myhren, Road Ranger

S

earch for ‘pump skimmer’ using your favorite search engine’s news search feature, and you’ll see local media headlines nearly every day reporting on recently discovered fuel pump skimmers. A recent search showed reports from Dallas; Prescott, Ariz.; Houston; Cape Coral, Fla.; Denver; and Saginaw, Mich. all in a one-week period in early 2019.

In 2018 in Florida, the state Department of Agriculture reported skimming incidents were on track to be up nearly 30% year-over-year, a trend that, based on the number of media reports, appeared to be the case across the nation.

Why does the gas pump remain such an attractive target for crooks?

First and foremost, because they are usually unattended. Second, because pump card-reading equipment is generally older, easier to manipulate, and card reads are largely done via a magnetic stripe swipe.

How is the pump attacked?

Generally, an attacker will only place a skimmer on a single fueling position at a given site. These are typically less-visible fueling positions to the in-store staff. They will use tactics such as opening their vehicle door

to block station personnel and other customers from viewing their activity.

SHIMMING ARRIVES How are pump attacks evolving?

‘Shimming,’ is a new technique to steal card data from chip cards. While still relatively uncommon, shimming is now occurring and was discovered at various places in the U.S. in 2018.

Shimming involves capturing the exchange of information that occurs at Europay, Mastercard and Visa (EMV) capable payment terminals when reading an EMV-capable card’s chip.

While a chip card can’t practically be cloned to another chip card like a magnetic stripe card can, the data that is exchanged during a chip card payment shimming incident can be used to create a counterfeit magnetic stripe card that can then be used to perpetrate payment card fraud at outlets that do not yet support chip card payments.

As most payment channels complete their conversion to chip acceptance, incidentally the aging fuel dispenser payment terminal is becoming one of the more popular places to perpetrate this fraud.

Merchants who have upgraded to

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EMV fuel dispensers are vulnerable to EMV shimmers that capture payment card data, which is then used to perpetrate payment card fraud and fuel theft at merchants who have not upgraded to EMV fuel dispensers. This helps illustrate why simply converting to EMV doesn’t lessen the need to continue to protect and inspect fuel dispenser payment terminals.

DETERRING THREATS How can a gas station operator realistically prevent, deter and detect the placement of skimmers?

Basic security practices are a great first step, such as ensuring forecourts are well lit, surveillance cameras have clear line of sight to each fueling position, and cashier windows are unobstructed and have views of all fueling positions.

Taking it further, each payment position should be inspected daily at a minimum. More optimally, a payment position inspection each shift is becoming a best practice. This can serve purposes other than skimmer detection, such as checking window washer fluid, paper towels, island garbage and pump receipt paper. Serialized stickers should be placed on all

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DOES YOUR VIDEO MANAGEMENT SYSTEM PROVIDE DATA INSIGHTS? What is the average time spent at the pump?

Do customers notice promotional messages?

How many fuel customers visit the convenience store?

Which pumps are they coming from?

NOW IT CAN. Get answers to these questions and more with innovative video management solutions from ClickIt. Our solutions are designed to provide actionable business intelligence to maximize Pump Conversion.

PEOPLE COUNTING

Count pump traffic throughout the day to evaluate peak traffic times

HEAT MAPPING

Color coded traffic map with indicators of the “hot spots” of activity

VIRTUAL LINE UP

Anonymous ID that identifies an individual at the pump and tracks as they enter the store

Total Video Management Solutions Recording • Traffic Counting • Retail Video Analytics • Data Integration

www.clickitinc.com

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Technology

Fuel Pump Security

hinges and contact points that allow external access to the internal dispenser card-reading components, and these serial numbers should be verified.

More advanced systems, such as FlintLoc’s tamper alarm and detection system can take tamper detection to the next level, notifying store and corporate staff anytime a dispenser is accessed — and can even cut power to a dispenser automatically if tampering is detected.

Apps such as the Skimmer Scanner Android app allow merchants and customers to attempt to detect the presence of popular Bluetooth skimmers. Most Bluetooth skimmers look and act identical, and once those patterns are known, they are relatively easy to detect wirelessly.

How vulnerable are new and emerging payment technologies?

Most payment innovations today are well-protected against traditional account data compromises like skimming. Near Field Communication (NFC), tap-and-go, Apple Pay and similar use some form of tokenization to abstract sensitive payment account data into a one-time use value that cannot be practically reused or used elsewhere.

Some attacks have been discovDo you have a plan for respondered for technologies that attempt to bring tap-and-go to legacy mag- ing to skimmers and suspected netic stripe payment terminals, but skimmers?

You should have a plan in place to even those are difficult to pull off in the field and haven’t been seen wide- facilitate specific actions in the event of a suspected or confirmed skimmer. spread outside the lab.

Retailer apps with integrated pay- Your plan should work regardless ment functions continue to gain pen- of the day and time of day. Plans etration and acceptance in the c-store can include having site personnel industry. Most implementations are immediately take suspected terminals immune to any form of attack lever- out of service and call your preferred aging the actual dispenser payment on-call petroleum service contractor, terminal itself, as most leverage a who should notify law enforcement.

Skimming incidents are often covcloud-based communication channel that bypasses the dispenser payment ered by local media. In the unfortunate event where you are the victim of terminal entirely.

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a skimmer, you should be prepared to address media contacts and customer concerns centering around payment card security.

What other considerations should a retailer keep in mind on this topic?

• As you plan fueling hardware investments, be mindful of the October 2020 EMV liability shift at the pump. When upgrading dispensers, don’t miss the opportunity to also add NFC/contactless capabilities.

• Remember that PCI DSS requirement 9.9 requires a certain degree of regular payment terminal inspection and management.

cstoredecisions.com

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PRODUCTShowcase Cheese Crisp Flavors Adding Sour Cream & Onion and Cheddar to their repertoire, along with Family Sizes and Multipacks, ParmCrisps is bringing traditional chip and cracker flavors and formats to the 100% Cheese Crisp category. Consumers can find these firstof-their-kind flavors for a suggested retail price (SRP) of $2.99. ParmCrisps are the first-ever no sugar, no gluten, Keto-friendly, low-carb snack made from real, ovenbaked cheese. ParmCrisps offer carb-free snackability in popular and innovative flavors that consumers crave. In efforts to keep in stride with major snack food brands and flavor trends, ParmCrisps continues to disrupt the better-for-you (BFY) snack category with low-carb snacks that don’t skimp on flavor.

Company: ParmCrisps https://parmcrisps.com

Small, Leak-Resistant Containers Retailers and consumers alike are seeking smaller, single-serve food containers. As the industry leader in food packaging, Inline Plastics is responding in a big way with a new product line of mini-sized containers. Snackers are cute, compact and leak-resistant containers, perfectly sized for small servings. They make the most of snug merchandising spaces while offering consumers the trusted safety and security of the Safe-T-Fresh tamperresistant locking system. Snackers are 100% curbside recyclable and available in four popular sizes: two-ounce, fourounce, six-ounce and eight-ounce. They are made in the U.S. and compatible with the Inline Plastics automation solutions.

Company: Inline Plastics www.inlineplastics.com

Individually Wrapped Belgian Waffles Mountain Waffle Co. has launched its Pure Maple Syrup & Butter Liege Belgian waffles.

They come in multiple sizes and packaging types, including large (90-gram, 3.175-ounce) and medium (60-gram, 2.12-ounce) individually wrapped waffles for grab-and-go convenience, pre-baked bulk packs for foodservice, freezer packs for frozen food departments and private label. Pure Maple Syrup & Butter Liege Belgian waffles are made with allnatural ingredients (no artificial flavors, colors, preservatives, additives or ingredients of any kind), non-GMO flour, rBST-free milk and butter, whole Belgian pearl sugars, Belgian dark chocolate (in chocolate varieties) and pure maple syrup (in Pure Maple Syrup & Butter variety). Also, Liege Belgian waffles are made with dough rather than batter, so they are naturally much more dense and flavorful. While they can be topped with anything sweet or savory, like ice cream or chicken, they can also be eaten right out of the wrapper and taste great both on their own at ambient temperature or warmed up in 25 seconds or less in a toaster, oven or microwave.

Company: Mountain Waffle Co. www.mountainwaffle.com cstoredecisions.com

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All-Natural Fruit Snacks Building off the large-scale consumer acceptance and following of AriZona beverages, AriZona Beverage Co. introduces AriZona Fruit Snacks, which have fruit as the first ingredient and feature the brand’s popular flavors, including Watermelon, Mucho Mango and Fruit Punch. The new, all-natural AriZona Fruit Snacks are fat-free, gluten-free, made with real fruit, vitamin C and contain no artificial colors, flavors or preservatives.

AriZona Fruit Snacks are available in five-ounce bags.

Company: Arizona Beverage Co. (516) 812-0339

www.drinkarizona.com/ product/fruit-snacks

July 2019 Convenience Store Decisions 55

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PRODUCTShowcase Aromatic Leaf Cigars

Sweet and Salty Mix Flipz announced the launch of Flipz Mix, a deliciously fun assortment of sweet, salty and crunchy snacks combining Flipz milk chocolate-covered pretzels with popcorn, pretzels and candy-coated chocolate pieces. The Flipz Mix features the brand’s signature chocolate-covered pretzels while adding a spin with new ingredients.

Flipz snacks always provide the perfect combination of sweet, salty and crunchy, guaranteeing consumers a tasty, satisfying experience without having to sacrifice their taste buds. Perfect as a shareable treat with friends or the whole family, Flipz Milk Chocolate Mix is available in four-ounce ($2.49) and 6.5-ounce ($3.49) bags.

Company:

pladis Global

www.flipz.com

Swisher Sweets Leaf Cigars are the ultimate reward, delivering a bold, aromatic smoking experience. Made with all-natural tobacco and finished with a Connecticut broadleaf wrapper, Swisher Sweets Leaf Cigars promise quality, freshness and adult consumer satisfaction.

They are perfectly imperfect, embracing every natural flaw in pursuit of the best cigar. Swisher Sweets Leaf Cigars can set the right tone anytime, anyplace. Offered in bold blends of Original, Honey and Sweet Aromatic, Swisher Sweets Leaf Cigars can satisfy an adult consumer’s mood for complex, rich or something in between. Swisher Sweets Leaf Cigars are offered in three-count pouches, delivering everyday value in a trusted brand.

Company: Swisher International Inc.

(800) 874-9720

https://swisher.com/product/swisher-sweets-leaf/

Highly Caffeinated Tea Zest Tea, propelled by its new ready-todrink (RTD) line of high-caffeine, naturalenergy teas, announced plans to expand its retail presence in 2019 from the current 2,000+ stores nationwide to 4,000+ locations, with a focus on the Mid-Atlantic and Northeast U.S. Zest Tea’s RTD line consists of three naturally flavored blends, including Passionfruit Berry, Spiced Chai Infusion and Pomegranate Mint, all of which are lightly sweetened and have only 50-60 calories per can. The company has priced the product for mass-market consumption at $2.49 to $2.99 per can.

Company: Zest Tea www.zesttea.com

Restroom Occupancy Indicator Heads Up Lock Co. released a new model of alert light that lets outside viewers know when the restroom is in use in several different rooms. It has most of the features the existing models have but is now geared specifically for viewing in two or more locations. The eye-pleasing LEDs show availability. It saves time and embarrassment of having to stand in front of the restroom door and wait. No more guesswork or wasted time. Restrooms being used for illegal drug use decreases, and productivity goes up, along with customer satisfaction. This convenient device can be used for single-stall restrooms. The kit comes complete with everything a qualified handyman will need to install. The lock is ADA-certified and made in the U.S.

Company: Heads Up Lock Co. www.headsuplock.com 56 Convenience Store Decisions July 2019

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PRODUCTShowcase Super-Premium Cigarettes The consumer products division of U.S. Tobacco Cooperative Inc. (USTC), Premier Manufacturing, is introducing a new entry in the super-premium cigarette category with the launch of Manitou. Manitou is a super-premium cigarette that only contains water and tobacco. One-hundred percent of the tobacco is flue-cured tobacco grown in the southeastern U.S. from grower/owners of USTC. To make Manitou a uniquely premium product, only the finest whole-leaf, flue-cured tobacco, picked from the upper stalk position of the plant is used, which offers the best flavor experience. Manitou cigarettes contain no reconstituted sheet tobacco, stems or fillers — also, no additives and no artificial flavors.

Manitou blends only contain water and tobacco.

Available in six king-size varieties, Manitou offers a wide style selection to the adult consumer.

Company: U.S. Tobacco Cooperative Inc. www.usleaf.com

Jalapeño Portion Packs Tito’s one-ounce portion packages of sliced jalapeños are a sanitary and convenient alternative to bulk jalapeños and soufflé cups and provide portion and inventory control alongside a oneyear shelf life without refrigeration. Tito’s attractive, 48-count counter-top display is perfect for micro markets while bulk cases allow for an economical vending condiment to complement sandwiches, chips and other snack foods. Tito’s pickles and peppers are available direct from the manufacturer or through Vistar and other distributors nationwide.

Company: Tito’s www.texastitos.com

Waste & Windshield Station Add pizzazz and ultra convenience to your forecourt. Forte’s Convenience Plus Waste/ Windshield Station will make your sites more inviting, and your customers will notice and appreciate it. This efficient valet encompasses all the features to meet your customers’ needs for convenient and easy access to a trash can, paper towels and windshield fluid. The Convenience Plus has a covered top to protect from the elements and an ergonomic pull-out waste bin drawer with a 42-gallon capacity ideal for high-trafficked areas. It requires maintenance less often. Each windshield housing is equipped with an ample and deep washer bucket that stays filled longer and keeps the squeegee in place. The towel tray towel dispenser is suitable for C-fold towels. All components are detachable and fit inside the waste bin, allowing the complete unit to be shipped in one single carton for freight saving costs. The Convenience Plus’ full dimensions are four inches wide, 26 inches deep and 40 inches high, and installation is simple and effortless.

Company: Forte Products (816) 813-3337 • www.forteproducts.com cstoredecisions.com

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Oil and Wax Vaporizer Containing all of the great functional and power traits of the Phantom Concealer 2 in 1, with the Squeeze Box Phantom Signature Oil & Wax Vaporizer, you’re getting world-class performance vaping for your 510 thread pre-filled oil carts, powerful Stealth dab rips in the wax adapter, four power settings and preheat on tap. The metals used are a thicker, brushed aluminum, and the signature squeezeaction trigger is made of a thicker metal that’s deep-etched with HoneyStick’s hexagonal insignia, providing a rich, textured handle.

The body of the unit is outfitted with carbon fiber and leather trim. Plus, the 1,000 MAH highcapacity battery holds a charge, on average, three times longer than most concealers. This limitededition vape is a luxury accessory — and puts performance to the test.

Company: Honey Stick www.vapehoneystick.com July 2019 Convenience Store Decisions 57

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PRODUCTShowcase Frozen Beverage Machine The Curtis Chill-X Frozen Beverage Machine makes it easy for retailers to offer a large variety of popular and profitable frozen drinks to increase store traffic and drive frozen beverage sales.

Chill-X features a straight-thru air flow, which allows for zero side clearance installation. Operators can create an impressive and popular slushie center by placing multiple units side by side.

Sleek and versatile, the Chill-X looks great, works hard and slips easily into any counter space in spite of its large, three-gallon bowl capacity. For continuous profits, Chill-X also features an optional auto-refill system that saves operators significant time and labor and eliminates the need to prepare the mix and refill the machine manually. Digital temperature controls display temperature and machine status, including a standby mode that keeps product fresh overnight. A built-in defrost cycle eliminates downtime during the rush and saves energy when the dispenser isn’t needed. Easy to use and easy to clean, the Curtis Chill-X Frozen Beverage Machine helps operators get profitable specialty drinks down cold.

Company: Wilbur Curtis Company Inc.

Cafe-Style Coffee McCafé Frappés bring delicious cafe-style flavors that make every day feel good. Enjoy the quality taste of McCafé with rich and creamy Frappé in a bottle. McCafé Frappés are made with 100% Arabica coffee beans and blended with real milk, sugar, natural flavors and other ingredients. The new offering is a great way to enjoy a delicious Frappé whenever you need a pickme-up. McCafé Frappés new 40-ounce ready-todrink (RTD) bottles retail for $4.49 and can be found nationwide. McCafé Frappés are also available in three 13.7-ounce RTD offerings in flavors Caramel, Mocha and Vanilla.

Company: Coca-Cola Co. www.coca-colacompany.com

(800) 421-6150 • www.wilburcurtis.com

Cooling Mints Tic Tac X-Freeze sugar-free mints with cooling crystals are 50% larger than the original Tic Tac mint and deliver intense and long-lasting refreshment.

Strong Mint and Wintergreen flavors will be available in 65- and 30-piece packs. Tic Tac X-Freeze will be available nationwide in September 2019.

Company: Ferrero www.ferrerousa.com

Jalapeño Cheddar Snack COMBOS Stuffed Snacks are bite-size crackers, pretzels or tortillas that make for a great on-the-go, mess-free snack. New in 2019, COMBOS is nationally launching Jalapeño Cheddar, a consumer-favorite flavor with proven market success. The combination of cheesy goodness — plus a mix of spice inside a baked tortilla shell — is sure to excite consumers’ taste buds. COMBOS Brand is a trend-setter, with eight other bold flavor varieties, including: Honey Sriracha, Buffalo Blue Cheese Pretzel and 7 Layer Dip Tortilla.

Company: Mars www.mars.com

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July 2019 Convenience Store Decisions 61

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INDUSTRY

Perspective

Anticipating

Technology Disruption

Erin Del Conte is the executive editor at Convenience Store Decisions.

For more on this interview with Daniel Burrus, check out our recent podcast at cstoredecisions. com/2019/03/19/c-storetechnology-oracle-anticipating-disruption-tech-trendsahead-for-2019/

Beacon technology, chatbots, frictionless checkout and augmented reality are among the top technology trends set to impact c-store retailers.

Erin Del Conte, Executive Editor

E

arlier this year, I had the opportunity to speak with leading global futurist and best-selling author Daniel Burrus, who recently released his seventh book “The Anticipatory Organization: Turn Disruption and Change into Opportunity and Advantage.”

Burrus outlined the biggest technology trends set to disrupt the convenience store industry.

“You’ve got two choices: you’re either going to be the disruptor or the disrupted,” Burrus said. As technological advancements move increasingly fast, c-stores can’t wait on the sidelines if they expect to stay profitable, he warned.

The top technology trends c-stores should pay attention to in 2019 include beacon technology, chatbots, augmented reality and frictionless checkout.

CHATBOTS Chatbots are another growing trend. Burrus expects that over the next year, the most innovative c-stores will put chatbots in key areas of the store, so when customers have questions on a price or in-stocks, the chatbot can provide the answer. It can also be used at the gas pump to respond to questions.

In five years, Burrus expects to see more prevelant use of chatbots at retail. He predicted c-store chains will be developing their own chatbot versions rather than building them through Amazon. He also expects chatbots will be used on the backend to assist employees.

AUGMENTED REALITY Augmented reality apps already exist, and c-stores can capitalize on the trend now. Burrus uses an augmented reality app in the mountains that points out hiking trails, peak heights, restroom locations and so on.

“Imagine doing that in your store,” he said.

Augmented reality apps can help customers find items, prices or available discounts. In five years, expect to see augmented reality glasses. They won’t look like the Google glasses of yesteryear. They’ll look like regular glasses but will give customers information about their environments, Burrus said.

BEACON TECHNOLOGY Beacon technology is now here for c-stores to implement. It uses Bluetooth Low Energy (BLE) to send customers specials and messaging when they are in range of the c-store. Customers must have BLE enabled on their phones to receive deals. Beacon technology can also help devices talk to each other, so managers can be alerted, for example, when a freezer door is left ajar.

“Starwood Hotels, all of their hotel chains are using beacon technology to replace room keys with beacons,” FRICTIONLESS CHECKOUT Burrus pointed out.

Innovative c-stores are already experimenting with Employees can remind customers they can get special deals if they download the c-store’s app and have BLE frictionless checkout, which Burrus predicted will be enabled when they enter the store. The beauty of beacon ubiquitous in five years because it will lower labor costs technology, Burrus said, is it takes the burden off of the and free up employees for customer service tasks, while customer and automatically gives them information, as- increasing the speed of checkout.

“Start learning now,” Burrus recommended. “It’s not that sistance and discounts. Burrus recommended that c-store retailers start using beacon technology today, train em- complex. It’s not that difficult. And it’s not that expensive.”

As technology advancements continue to speed up, ployees and teach customers to download the app and be in the practice of enabling BLE on their phones to it’s important for c-stores to move beyond reacting.

“I want you to be anticipatory,” Burrus said. The key save money at the store.

Burrus predicted the use of beacon technology will be is to become a positive disruptor and pre-solve problems before they appear. widespread in the next five years.

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