CStore Decisions July 2022 by WTWH Media LLC

CStoreDecisions Solutions for Convenience Retailers

2022

ChainS to Watch

Parkland USA develops its On the Run brand as it prepares to reach 500 stores by 2025, while Wally’s wows with experience-based food stations, tech-forward solutions and oversized restrooms.

INSIDE Cold Vault Considerations How to Grow Your Deli Program Boosting Business With Bitcoin ATMs

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

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

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

EXECUTIVE EDITOR Erin Del Conte edelconte@wtwhmedia.com

CREATIVE DIRECTOR Erin Canetta ecanetta@wtwhmedia.com

DIGITAL MARKETING MANAGER Taylor Meade tmeade@wtwhmedia.com

ASSOCIATE EDITOR Emily Boes eboes@wtwhmedia.com

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DIRECTOR, AUDIENCE DEVELOPMENT Bruce Sprague bsprague@wtwhmedia.com

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REGIONAL SALES MANAGER Patrick McIntyre pmcintyre@wtwhmedia.com (216) 372-8112 REGIONAL SALES MANAGER Jake Bechtel jbechtel@wtwhmedia.com (216) 299-2281

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EVENTS EVENTS MANAGER Jen Osborne josborne@wtwhmedia.com EVENTS MARKETING SPECIALIST Olivia Zemanek ozemanek@wtwhmedia.com

VIDEO PRODUCTION VIDEOGRAPHER Bradley Voyten bvoyten@wtwhmedia.com VIDEOGRAPHER Garrett McCafferty gmccafferty@wtwhmedia.com VIDEOGRAPHER Kara Singleton ksingleton@wtwhmedia.com

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DIGITAL MARKETING SPECIALIST Olivia Boris oboris@wtwhmedia.com

EDITORIAL ADVISORY BOARD

WEBINAR COORDINATOR Halle Kirsh hkirsh@wtwhmedia.com

Robert Buhler, President and CEO Open Pantry Food Marts • Pleasant Prairie, Wis. Lisa Dell’Alba, President and CEO Square One Markets • Bethlehem, Pa.

WEBINAR COORDINATOR Kim Dorsey kdorsey@wtwhmedia.com

Raymond Huff, President HJB Convenience Corp. • Lakewood, Colo.

DIGITAL DESIGN MANAGER Samantha King sking@wtwhmedia.com

Bill Kent, President and CEO The Kent Cos. Inc. • Midland, Texas Patrick Lewis, Managing Partner Oasis Stop ‘N Go • Twin Falls, Idaho

MARKETING GRAPHIC DESIGNER Hannah Bragg hbragg@wtwhmedia.com

Reilly Robinson Musser, VP, Marketing & Merchandising Robinson Oil Corp. • Santa Clara, Calif.

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DEVELOPMENT MANAGER Dave Miyares dmiyares@wtwhmedia.com

NATIONAL ADVISORY GROUP (NAG) BOARD

SENIOR DIGITAL MEDIA MANAGER Pat Curran pcurran@wtwhmedia.com

Vernon Young (Board Chairman), President and CEO Young Oil Co. • Piedmont, Ala. Joy Almekies, Senior Director of Food Services Global Partners • Waltham, Mass.

DIGITAL PRODUCTION MANAGER Reggie Hall rhall@wtwhmedia.com

Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo.

DIGITAL PRODUCTION SPECIALIST Nicole Lender nlender@wtwhmedia.com

Greg Ehrlich, President Beck Suppliers Inc. • Fremont, Ohio

DIGITAL PRODUCTION SPECIALIST Nicole Johnson njohnson@wtwhmedia.com

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

VICE PRESIDENT, STRATEGIC INITIATIVES Jay Hopper jhopper@wtwhmedia.com

Kalen Frese (Board Chairman), Food Service Director Warrenton Oil Inc. • Warrenton, Mo.

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SUBSCRIPTION INQUIRIES To enter, change or cancel a subscription, please go to: http://d3data.net/csd/indexnew.htm or email requests to: bsprague@wtwhmedia.com Copyright 2022, WTWH Media, LLC CStore Decisions (ISSN 1054-7797) is published monthly by WTWH Media, LLC., 1111 Superior Ave., Suite 2600, Cleveland, OH 44114, for petroleum company and convenience store operators, owners, managers. Qualified U.S. subscribers receive CStore Decisions at no charge. For others, the cost is $80 a year in the U.S. and Possessions, $95 in Canada, and $150 in all other countries. Single copies are available at $9 each in the U.S. and Possessions, $10 each in Canada and $13 in all other countries. Periodicals postage paid at Cleveland, OH, and additional mailing offices. POSTMASTER: Send address changes to CStore Decisions, 1111 Superior Avenue, 26th Floor, Cleveland, OH 44114. GST #R126431964, Canadian Publication Sales Agreement No: #40026880. CSTORE DECISIONS does not endorse any products, programs or services of advertisers or editorial contributors. Copyright© 2022 by WTWH Media, LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, or by recording, or by any information storage or retrieval system, without written permission from the publisher. Circulation audited by Business Publications Audit of Circulation, Inc.

CSTORE DECISIONS •

July 2022

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

YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD

WTWH MEDIA, LLC 1111 Superior Ave., 26th Floor, Cleveland, OH 44114 Ph: (888) 543-2447

Derek Gaskins, Senior VP, Merchandising/Procurement Yesway • Des Moines, Iowa

Brent Mouton, President and CEO Hit-N-Run Food Stores • Lafayette, La.

ACCOUNTS RECEIVABLE SPECIALIST Jamila Milton jmilton@wtwhmedia.com

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

Jeff Carpenter, Director of Education and Training Cliff’s Local Market • Marcy, N.Y. Megan Chmura, Director of Center Store GetGo • Pittsburgh Ryan Faville, Director of Purchasing Stewart’s Shops Corp. • Saratoga Springs, N.Y. Caroline Filchak, Director, Wholesale Operations Clipper Petroleum • Flowery Branch, Ga. Cole Fountain, Director of Merchandise Gate Petroleum Co. • Jacksonville, Fla. Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas Daillard Paris, Director of Petroleum Supply and Trading Sheetz Inc. • Altoona, Pa.

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CONTENTS J u ly 2 0 2 2

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Number 7 •

Volume 33

CStoreDecisions

EDITOR’S MEMO

8 Young Leaders Will Determine Future Success FRONT END

10 Quick Bites: Customers Respond to Inflation 12 Industry News CATEGORY MANAGEMENT

34 Cold Vault Considerations 40 Peg Bag Candy, Gum and Non-Chocolate Sales Soar 44 Summer Snack Sales Heat Up FOODSERVICE

46 How to Grow Your Deli Program OPERATIONS

50 Succeeding With Forecourt Marketing TECHNOLOGY

COVER STORY

52 Boosting Business With Bitcoin ATMs 56 POS Needs Evolve for C-Store Retailers

16 2022 Chains to Watch

Parkland USA develops its On the Run brand as it prepares to reach 500 stores by 2025, while Wally’s wows with experience-based food stations, tech-forward solutions and oversized restrooms.

BACK END 60 Product Showcase 65 Ad Index 66 Industry Perspective: Competitor Update: What C-Stores Need to Know

CSTORE DECISIONS •

July 2022

cstoredecisions.com

N O I T A R D Y FAST H Y T I N U T R O P P O G I B S E T Y L O R T 3X ELEC

THE GAR OF RINK* U S E H T SD 1/4 G S P ORT LE A D I N

PEDIALYTE HALF LITER IS GROWING 21X FASTER THAN THE ELECTROLYTE CATEGORY AT U.S. CONVENIENCE STORES † ®

* Pedialyte Half Liter has 1380 mg sodium and 12 g sugars per liter; leading sports drink has ~460 mg sodium and ~58 g sugars per liter. † Nielsen Connect Total US Convenience L4W ending 07/03/21 -

Pedialyte sales +163% vs LY, Total Category sales +15% vs LY.

SALES CONTACT: LARRY JACKSON (larry.jackson@abbott.com)

Editor’s Memo

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

Young Leaders Will Determine Future Success In three short years, the convenience store industry has changed dramatically, and the changes will continue at a furious pace as the White House moves away from fossil fuels and pushes widespread acceptance of electric vehicles. The c-store industry has always had a couple of builtin hooks in its arsenal to attract customers. Chief among them was gasoline. If you drove a car, you needed a convenience store a couple times a week. Tobacco was another big hook as c-stores owned the tobacco sales segment. Over the last two decades, foodservice became a primary factor in driving business. Coffee, sandwiches, chicken, sushi, pizza — you name it and there’s a convenience store in your market that sells it, and that has been good for business. Electric vehicles, however, will change that for older stores without foodservice because EV owners will not require a trip to the pumps, therefore eliminating these shopping occasions. Plus, with third-party delivery becoming more widespread and the rise of Uber Eats, Grubhub, DoorDash and all the other delivery services you see zipping around town, there is so much more competition for food sales. Customers have instant access to an entire market’s worth of diverse menus right in the palm of their hand; anything they want, with a few taps on their phone, can arrive in under an hour. This growth is exciting. It can be extremely profitable, but it also requires adapting to a new generation of customers. This is why identifying and preparing nextgeneration leaders in your business is so important. When I am out in the field speaking with retailers, the first question I almost always get is, “How can I produce fantastic, solid, compassionate, next-generation leaders?” The National Advisory Group’s (NAG) Young Executives Organization is focused exclusively on this very issue. YEO’s mission is to help train young talent in the convenience store and petroleum industry through education and networking. We will continue that mission Sept. 7-9 at the YEO Conference at Nouria Energy in Worcester, Mass. The 2022 YEO Conference will feature educational sessions and workshops, a tour of the top convenience stores in the Boston market, Information Exchanges and 8

CSTORE DECISIONS •

July 2022

outstanding networking opportunities with the industry’s future leaders. Training next-generation leaders will determine whether or not you are ready to handle the future of retail. Carey Nieuwhof, a best-selling leadership author and host of the excellent Carey Nieuwhof Leadership Podcast, speaks to leaders around the world about leadership, change and personal growth. He emphasized the energy that young leaders bring to companies. “They bring enthusiasm and optimism to their work,” Nieuwhof said. “They understand next-generation trends. Younger leaders see things differently. They grew in a culture that I didn’t. Having their voice around the table gives me a much better sense of what resonates and what doesn’t. If you want to connect with the emerging generation, having the emerging generation around your table is irreplaceable.” This is a great takeaway for our industry. Who understands apps and how the younger generation orders food or gets around town more than the younger generation itself. Tapping into their world and leaning on them for insights will allow you to glean information you may never have realized. Young leaders, Nieuwhof said, “challenge assumptions because they are trying to ﬁgure out how the world works. They ask great questions and question the way things are done. They haven’t made peace with the status quo. As a result, some of the best insights and solutions will come from next-generation leaders because they see things differently.” Equally important is that young leaders are passionate about the mission. “They don’t want their job to just be a job,” Nieuwhof said. “They want to make a difference in the world, and they are passionate promoters of causes they believe in, which can be great for your organization.” To learn more about YEO and how you can help the leaders of tomorrow become passionate promoters of your vision, visit NAGConvenience.com. To register your young executives for the YEO Conference at Nouria, visit YEOConference.com.

k c o t s f o L n Joh

cstoredecisions.com

PLAYING FAVORITES — CAN REALLY —

PAY OFF

STOCK UP ON THE MOST POPULAR ZYN VARIETIES

quickBites CUSTOMERS RESPOND TO INFLATION As inflation causes prices to surge, customers are changing their habits to offset cost increases.

INFLATION CONCERNS GROW

70% of Americans see inflation as the biggest issue facing the U.S., followed by healthcare (55%) and violent crime (54%).

Republicans and republican-leaning independents see inflation as the top concern, with 84% listing it as the top problem.

57% of democrats and democrat-leaning independents see inflation as a big problem, after gun violence (70%), healthcare (65) and climate change (63%). More than two years into the COVID-19 pandemic, only 19% of Americans listed the pandemic as a very big problem for the country, compared to 58% in June 2020 in the early days of the outbreak. Source: Pew Research Center survey conducted April 25 - May 1 among 5,074 U.S. adults

GLOBAL: IN WHICH CATEGORIES HAVE CONSUMERS NOTICED A SURGE IN PRICES?

CUSTOMERS TIGHTEN PURSE STRINGS A recent survey by NPD Group found a slowdown in consumer spending trends. ▶ More than eight in 10 U.S. consumers plan to make changes to reduce product spending over the next three to six months. ▶ In Q1 of 2022, customers purchased 6% fewer items at retail compared to Q1 of 2021. ▶ In Q1, a 10% increase in the average selling price of products didn’t offset the decline in demand: the average spend per buyer down more than 2%. ▶ U.S. customers also exhibited a 5% drop in purchase frequency, which further contributed to the slowing of retail sales.

Source: YouGov, March 2022

Source: NPD Group, May 2022

SUMMER TRAVEL CONTINUES DESPITE GAS PRICE SURGE 58% of Americans intend to road trip this summer, up over last summer.

DINING OUT, FOOD DELIVERY ON CHOPPING BLOCK AMID INFLATION In which, if any, of the following categories have you reduced spending/ anticipate cutting spending due to general rising prices? (Select all that apply)

70% said their summer

travel plans have been affected by high gas prices specifically (up 24% over 2021).

38% reported high inflation was leading to difficulty planning summer trips.

Source: GasBuddy’s “Summer Travel Survey,” completed by 1,971 GasBuddy members between April 28 - May 2, 2022. Summer travel is deﬁned as the period between May 31 - Sept. 9, 2022 (Memorial Day through Labor Day).

CSTORE DECISIONS • July 2022

Source: CivicScience 2022 cstoredecisions.com

FRONT END Industry News

Wawa to Expand Footprint to Nashville

Wawa plans to expand its footprint to Nashville, Tenn., while simultaneously growing in current market areas and adjacent markets, including the Florida Panhandle, south Alabama and North Carolina. Wawa is set to open its first Nashville store in 2025, with the potential for up to 40 stores in the market in the future. “With a commitment to fulfilling lives in our community, we’re thrilled to continue our growth in new markets to provide quality fresh food, beverages and support to new friends and neighbors,” said John Poplawski, vice president of real estate for Wawa. “We are excited to expand beyond our current operating area and look forward to serving the community come 2025 and beyond.” Wawa stores are located in Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Florida and Washington, D.C. Wawa is set to open 54 new stores in 2022.

Pilot Remodels Four Travel Centers Pilot announced the remodeling of four travel centers in Georgia, Indiana, Kentucky and New Mexico as part of its $1 billion initiative New Horizons. After months of surveying guests, drivers and team members, every aspect of the store experience — including driver-focused amenities — is included in the upgrades. The overhauled sites are located in Valdosta, Ga.; Shelbyville, Ind.; Sulphur, Ky.; and Tucumcari, N.M.

Refuel Acquires Embark Energy Refuel Operating Co. has acquired Austin, Texas-based Embark Energy, a wholesale and retail fuel distribution and convenience store chain. Embark has 11 convenience stores situated in the greater Austin market operating under the Fast Break brand, along with four company-owned, dealeroperated locations. Embark is also a wholesale provider of motor fuels. Headquartered in Austin, Embark was founded in 1996 by Ismail Ali, Iqbal Ali and Mohammed Ali. “The Ali family has built a wonderful company in an incredible market over the past 26 years,” said Mark Jordan, CEO of Refuel. “We are extremely excited to expand our current footprint in the high-growth central Texas market and look forward to welcoming Embark’s employees to the Refuel family.” The transaction represents the 11th acquisition for Refuel since establishing the partnership with First Reserve in May 2019, bringing its total store count to 185 company-operated locations across Texas, Mississippi, Arkansas, South Carolina and North Carolina.

Kum & Go Modernizes Digital Platform

Kum & Go has partnered with composable commerce company Myplanet to help enhance the customer experience through new and modernized digital architecture. The multi-year agreement features Myplanet’s Composable.com Mobile Commerce Accelerator as part of the foundation of Kum & Go’s onestop shop for touchless fueling, fresh food, rewards and exclusive offers. “With Composable, we’ll be able to accelerate our speed to market, improve the quality of our customer experience and quickly integrate other best-inclass commerce technologies to bring the store to our customers — all without sacrificing the ability to build something uniquely Kum & Go,” said Ryan Lindsley, vice president of marketing and digital strategy at Kum & Go. With Myplanet’s mobile accelerator and modular solutions from Auth0, Contentful, P97 and Paytronix, Kum & Go will remain agile as it scales. 12

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July 2022

The updates include: Valdosta — Brand-new kitchen, grab-and-go hot deli, a remodeled Dunkin’ and four new selfcheckouts Shelbyville — Updated interior, four self-checkouts and a new hot deli and soup bar Sulphur — Completely remodeled restrooms, new kitchen and storage area and updated Cinnabon Tucumcari — Addition of a drivers’ lounge, expanded seating area, new public laundry and a new kitchen and soup bar The three-year New Horizons project marks the company’s most significant investment in store modernization to date. It will fully remodel more than 400 Pilot and Flying J travel centers and make upgrades at several more locations across the country.

cstoredecisions.com

Mentos Gum Paperboard_Ad_CStore_20220616.pdf

6/16/22

10:45 AM

September 7-9, 2022

For additional information, contact NAG Executive Director John Lofstock at jlofstock@wtwhmedia.com.

WEDNESDAY, SEPTEMBER. 7, 2022 8:00 AM – 4:00 PM:

Habitat for Humanity Operation Playhouse Team Building Project. Nouria Headquarters.

https://www.habitatmwgw.org/programs/operation-playhouse

THURSDAY, SEPTEMBER 8, 2022 8:15 AM:

9:00 AM:

9:15 AM – 9:30 AM:

9:30 AM – 10:45 AM:

10:45 - 11:15 AM: 11:15 AM – 12:00 PM:

12:00 PM – 1:00 PM: 1 PM – 2:15 PM:

Nouria Energy Headquarters Arrivals: 326 Clark St, Worcester, MA 01606. Light Breakfast Will Be Served Welcome and Introductions, John Lofstock, Executive Director, National Advisory Group (NAG) and Kalen Frese, Warrenton Oil, YEO Board Chairman Nouria Energy Overview and Outlook, Joe Hamza, Chief Operating Ofﬁcer, Nouria Energy YEO Workshop: Perfecting Your Retail Brand, Ernie Harker, President, Ernburn Brands Break General Session: Integrating Technology into Labor Management, Jeff Carpenter, Director of Education and Training, Cliff's Local Markets Lunch Onsite at Nouria YEO Workshop: Building Leadership, Management and Accountability Systems: Tom Bandy, Founder and CEO, BandyWorks

2:15 PM - 3:45 PM:

Break

2:45 PM – 4:15 PM:

YEO Information Exchanges

* Foodservice: As gas prices stay elevated and tobacco remains under fire, foodservice remains the industry's biggest in-store attraction. Discuss what you are doing and benchmark your results with others in the industry. Plus, glean new ideas on how to perfect your menu and overcome staffing issues by utilizing the proper foodservice equipment. * Technology: From payments systems to loyalty programs to back-office and cryptocurrency, technology is driving big changes in retail. This session will allow retailers to discuss what new technology is working for them and learn what others in the industry are doing in this emerging segment. * Operations/HR: The labor shortage shows no signs of abating and supply chain issues will persist for the next 12-18 months. In this session, learn what other retailers are doing to attract new employees and overcome staffing issues. Plus, discuss how you can avoid out-ofstocks and supply shortages for products on the shelves and the items needed to execute a successful foodservice program. 4:30 PM: 6:00 PM – 9:00 PM:

Wrap Up/Hotel Check In Dinner Off Site

FRIDAY, SEPTEMBER 9, 2022 7:45 AM:

Shuttles Depart Hotel

8:00 AM:

Breakfast at Nouria

8:30 AM – 9:30 AM:

YEO Workshop: General Session: Diversity, Equity and Inclusion in the C-Store Industry. Jayson Council, Principal, Adjaycent Consulting

9:30 AM:

Store Tours: A tour of top convenience stores in the Boston market including Nouria Energy, Alltown Fresh, Seasons

1:00 PM:

Return and Wrap Up

1:15 PM:

Depart

Chains to Watch

2022

CHAINS TO WATCH Parkland USA develops its On the Run brand as it prepares to reach 500 stores by 2025, while Wally’s wows with experience-based food stations, tech-forward solutions and oversized restrooms.

CSTORE DECISIONS •

July 2022

cstoredecisions.com

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7/19/21 6:25 PM

Chains to Watch / On the Run

BUILDING ON the RUN Parkland USA is developing the On the Run brand as it prepares to reach 500 stores by 2025. Erin Del Conte • Executive Editor

CSTORE DECISIONS •

July 2022

cstoredecisions.com

Fresh off a string of recent acquisitions, Parkland USA is set to quintuple its business over the next three years. A big part of that growth will center around its On the Run (OTR) brand, which Parkland is now rolling out across its entire U.S. network, after acquiring the exclusive U.S. licensing rights from Alimentation Couche-Tard in 2020. Parkland is currently building out the OTR brand offering, investing $350 million in its foodservice program, implementing selfcheckout and electric vehicle (EV) charging, expanding its Journie loyalty program and exploring frictionless checkout options, among other initiatives. Given its aggressive growth plans, tech-forward approach and roster of veteran c-store talent leading the charge, CStore Decisions is recognizing OTR as a Chain to Watch. GROWTH MINDSET

In 2021 alone, Parkland more than tripled its fleet of company-operated stores, growing from 60 to 215 sites. “We’ve acquired 20 companies in the past 36 months, including 10 last year, which was a pretty furious pace,” said Doug Haugh, president of

Parkland USA. “It’s been a very deliberate, focused strategy, in terms of where and what we’ve acquired.” Parkland is focused on expanding its footprint in four regional operation centers — the Southeast, Midwest, Rockies and Pacific Northwest. Initially, the company plans to build about 50-100 stores in each regional base. “Our theme, internally, has been to ‘5X the business’ by 2025,” Haugh said. That includes reaching 500 company-operated U.S. stores and expanding its dealer business from the roughly 425 dealers today to 2,500 over the next three years.

cstoredecisions.com

July 2022 • CSTORE DECISIONS

Chains to Watch / On the Run

From left: Parkland USA’s senior leadership team includes industry veterans Jay Erickson, chief operating officer; Doug Haugh, president; and Jeff Bush, vice president of business development.

“We’re actively working on moving through our entire system of redeveloping and rebranding all of our company-operated sites to the OTR brand,” said Jeff Bush, vice president of business development, Parkland USA. At present, the OTR brand design is already rolling out in Florida and North Dakota. The OTR brand will fit locations measuring at least 3,000 square feet up to large travel centers. Today, Parkland operates 25 travel centers and several are already being rebranded as OTR. “OTR is a premium brand with a good food offer, clean locations and lots of parking spots,” noted Jay Erickson, chief operating officer for Parkland, who is responsible for scaling and implementing the OTR brand. Some existing sites won’t be able to meet the requirements for parking or have foodservice ability. Erickson noted the company is evaluating using an alternate banner for these smaller stores. BECOMING ON THE RUN

When customers arrive at OTR, they’ll find a fresh and clean large-format store with a colorful brand design, best-in-class restrooms and technology integrated throughout the store experience. “It’s going to feel extremely open, extremely well set and well placed,” Bush said. “You’re going to really feel compelled to move towards our foodservice, to our beer cave, to our fountain.” Earlier this year, Parkland invested $322 million to purchase M&M Food Market, a premium, restaurant20

CSTORE DECISIONS •

July 2022

quality frozen food retailer in Canada, which it plans to leverage as it develops OTR’s proprietary foodservice platform. Given that Parkland has many regional operations throughout the U.S., the foodservice menu will include a regional flare. Parkland is developing the food program across four core groups: pizza; breakfast, including breakfast sandwiches; chicken; and burgers and fries. “We see a strong indication to move forward with a really strong breakfast offering, a really strong lunch offering,” Bush said. The next step will be evaluating which take-home programs might work best for dinner and integrating the M&M Food brand into that take-home foodservice offering. OTR aspires to create a unique food offer, but one customers want to eat every day. And it wants to be seen in the same light as a quick-service restaurant (QSR) as it competes with sub and sandwich shops, smoothie shops and QSR breakfast offerings rather than the c-store across the street. The food program is launching in two phases. Food 1.0 is already underway and will run through the end of 2022. It includes introducing the initial food offerings into all the sites under the existing Bites on the Run banner. Food 2.0 is a 2023 initiative that includes building a proprietary brand that stands alone. TECHNOLOGY FORWARD

Staying true to its plans to integrate technology throughout the stores, Parkland is introducing bean

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Chains to Watch / On the Run

On the Run stores integrate technology across the store experience, including bean-to-cup coffee dispseners and touchscreen fountain drink dispeners.

to-cup coffee dispensers and touchscreen foodservice ordering kiosks, while investing in digital fountain drink equipment with touchscreens. “We’re understanding how to be technology first in the coolers, fountain and coffee,” Bush said. “Everywhere a customer interacts with us, we want to make sure they’re getting the best optimal service, and we want to leverage technology to make that as efficient as possible.” That extends all the way to the point of sale (POS). Self-checkout is a big initiative for the brand, with every site being analyzed for self-checkout potential. “We just ordered our first 30 stores of self-checkout, where we’ll have at least two self-checkouts per location, so that will be a huge growth area for us,” Erickson said. “We’re getting it in as many stores as we can, as quick as we can get the hardware,” Haugh added. Parkland is in the process of exploring various frictionless checkout options including walk-in/walkout technology. It’s seeking a solution that not only integrates with all of its systems, but that is also seamless from both a customer and employee standpoint. “We do think a version of the ‘just walkout’ technology, whatever format that comes in, — we’re experimenting rapidly — is going to be a requirement for the future, just to be able to not queue up at all,” Haugh said. The chain is also evaluating delivery partners to allow guests to order ahead for delivery or pickup. “We’re really trying to make it as frictionless as 22

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July 2022

possible for our customers to do business with us,” Erickson said. Technology is a crucial consideration as Parkland looks to scale the OTR brand. “When I look at how we’re going to scale OTR, it’s first of all, being very simple in our architecture, but also making sure that we have very hardened systems, that we have a platform and a foundation that we can build from,” Erickson said. Because Parkland’s fleet of stores is made up of numerous small acquisitions, lots of different systems currently exist. Erickson noted the last nine months have involved what he calls ‘digesting the acquisitions.’ “The team has been focused on systems, process and technology,” Erickson said. “We’re standardizing on one technology system and then getting everybody onto that system.” For example, all acquired stores are now up and running on the same back-office software. By the end of 2022, one common POS system will roll out to all the stores, with other core foundational systems to quickly follow in early 2023. Once a common platform is up and running, Erickson expects day-one integrations to be possible due to that foundational work. “The quicker you can integrate, get them on your planograms, on your systems, then they become one of your stores overnight, and you can start realizing synergies faster,” Erickson said.

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At On the Run customers will find a fresh and clean large-format store with a colorful brand design and clear signage guiding customers to the various sections of the store.

The company is also turning its attention to expanding its Journie Rewards loyalty program, which has done well in Canada, and integrating delivery and order ahead into the loyalty app. Journie Rewards gives customers discounts based on the purchases they make in-store. It incorporates an ACH debit card that allows for discounts at the pump. Parkland is working to integrate new features into the loyalty program that allow customers to earn discounts and rewards on items and services other c-stores aren’t offering. “We want to run great, robust promos on top of that, as well as delivering a great artificial intelligence background algorithm behind it, ensuring customers are getting the discounts on the things they purchase,” Bush said, adding the app will deliver strong customization and personalization elements driven by customer purchase trends. “At the end of the day for us, if a customer’s got a process that has any friction in it, our goal is to remove all friction for customers everywhere they interact with us, whether it’s online, ordering food, choosing our app, getting fuel or buying food in our stores,” Bush said. In the forecourt, Parkland has an eye toward technology as well. The company is partnering with FreeWire Technologies to roll out EV charging and analyzing sites to determine where EV is the best fit for customers. Haugh expects over-the-road sites to be strategic locations for EV, attracting travelers in need of a place to charge their vehicle, as well as an ideal place to relax, eat and visit the restroom during the 20-30 minute charge. Parkland USA retail locations also partner with numerous gas brands including Exxon, Chevron, Valero and Shell. “We continue to strengthen those partnerships across the U.S.,” Bush said. Parkland also features the OTR fuel brand, which it is building out across the U.S. “That will be a big part of our portfolio as we continue to expand,” Bush added. At present, OTR features 16 sites in Florida with OTRbranded fuel. DEALER PROGRAM

Set to launch in Q1 of 2023, Parkland is actively developing its OTR dealer program, taking the investments

it’s making in its company-operated stores and providing those to its best dealers. For most dealers with a single store or a handful of stores, it can be challenging to compete with larger chains that have more access to programs like loyalty apps or a frictionless experience, Erickson pointed out. “Because our OTR dealer offer is going to be so aggressive and so technology focused, I think it really will give people an option to compete with the big majors,” he said. Not every site will qualify, in terms of square footage, quality, foodservice ability and required in-store offerings, but many will, Haugh noted. “We really want to extend that to a very healthy group of dealer partners that we can supply both fuel and other services and products, but also provide them the OTR brand for their stores,” he said. CHAIN TO WATCH

Bush credits the team behind OTR as one thing that makes it a Chain to Watch. “We have the best bench of talent across the U.S., bar none,” he said. “We have people from all scopes of retail, all scopes of foodservice, loyalty, development, marketing and merchandising with unbelievable background experience and a portfolio of success in their own right.” Parkland USA includes three division presidents — Haugh, Bush and Erickson — who have run large, successful convenience stores. Bush was previously the president at Savannah, Ga.-based Parker’s, while Haugh brings along retail and technology history to his role,

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July 2022 • CSTORE DECISIONS

Chains to Watch / On the Run

and Erickson brings with him 25 years of experience at Kroger. He has extensive experience scaling a major brand, having managed EG America’s integration of 1,700 stores following its acquisition of Kroger. Bush also credits the chain’s ability to leverage technology, integrate systems, tap global partners and take a forward-looking approach. “We’re not just moving along with changing demands, we’re trying to get ahead of those demands and ensure that what our customers are going to be looking for in the future … that we’re developing it,” Bush said. Haugh expects OTR will be known for its great locations, consistent execution and bright, clean convenient experience for customers. While anyone can build a quality demonstration store, consistently executing on the experience while scaling the brand is a key mission for OTR. Parkland’s culture also makes it special, Erickson said. “Our culture comes straight down from our CEO, Bob Espey, and it’s all about our employees and customers as the main focus. If you take care of those two, you’ll be successful.” As it prioritizes employees, OTR is developing a robust online training program across the network. “It’s a big focus for us to really take care of our employees through training that will allow our associates to first take care of our customers, but second be able to grow in their roles and be able to do whatever they want to do in the organization,” Erickson said. “I know a lot of people are struggling to find folks in this industry, but we are just awash in talent,” added Bush. “People are knocking on our doors every single day to come work at Parkland. And it just speaks to all the great things we’re doing and the great teams that we’re building here.” LOOKING AHEAD

By the end of 2022, Parkland expects to have 30 sites converted to the OTR brand, with another 70 sites to follow in 2023. “By the end of next year, our goal is to have 100 OTRs that have been converted,” Erickson said. While it’s an ambitious plan, Erickson would like to go even faster, but supply chain and subcontractor labor shortages have required a slower pace. As Parkland pushes forward toward its goal of ‘5Xing the business’ it’s looking to grow through both 24

CSTORE DECISIONS •

July 2022

Parkland’s culture focuses on taking care of employees and customers. It’s developing an extensive employee training program to help associates grow in their roles and have the opportunity to advance their careers within the company.

new-to-industry sites and acquisitions “whether that’s tuck-in opportunities, single sites, all the way up to tens or teens, all the way to large platform acquisitions,” Bush said. “We want rapidly growing markets where there are new customers to service, there’s a demographic tailwind, if you would, where there’s new customers every day, and new neighborhoods going up, new c-stores to be built,” Haugh said. Parkland also looks for markets where it’s difficult to supply fuel since Parkland, as a vertically integrated company has deep capabilities when it comes to supplying and distributing fuel. The company ships its own fuel using a fleet of nearly 700 trucks. “We want to leverage that to help grow the U.S. business, and the retail business specifically, that much faster,” Haugh said. Parkland also operates 60 car washes, many of which were picked up through acquisitions. On the docket this year is making decisions about whether to unify all car washes under one brand or continue to leverage the current brands. “We’re also really looking forward to showing people what we can do with the OTR brand. It’s a great brand,” Bush said. “We’re building out a great platform around it. And we’re really excited to show everybody what we can do with the offerings across all the different segments of retail.” CSD

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Chains to Watch / Wally’s

WALLY’S OFFERS INTERACTIVE GUEST EXPERIENCE The chain provides an open and welcoming atmosphere with its experience-based food stations, hospitable facilities and large selection of diverse Wally’s branded merchandise, as well as its 70-plus fuel stations.

Emily Boes • Associate Editor

Chains to Watch / Wally’s

“Home of the Great American Road Trip,” Wally’s — open 24 hours — offers an interactive guest experience at its two locations in Pontiac, Ill., and Fenton, Mo., from its food stations and barista program to its mobile app. And, Wally’s has big plans for expansion in its region and beyond. “We’re turning the traditional roadside travel stop on its head and making it a really fun, unique experience,” said Andy Strom, chief experience officer of Wally’s. “I like to say unexpected delight at every turn, you know, just paying attention to the details and really making every guest visit super special.” Wally’s caters to its customers through its experiencebased food stations — such as daily popcorn offerings and a barbecue sandwich house — accessible restrooms, highly curated retail products and 70-plus fuel pumps at each location. And, it’s taking a tech-forward approach as it builds the brand, from self-checkout to an online store. For all this and more, CStore Decisions recognizes Wally’s as a 2022 Chain to Watch.

A NEW VISION FOR THE MARKET

Wally’s opened its first store in Pontiac, roughly 100 miles from Chicago and 200 miles from St. Louis on Interstate 55 in October 2020. In March 2022, its Fenton location on Interstate 44, southwest of St. Louis, opened its doors. Chairman and Co-Founder Chad Wallis, who has been in the industry for 20 years, and CEO Michael Rubenstein of Wally’s, who has a real estate development background, along with the Wally’s team, established a vision for Wally’s focusing on the family and recreational traveler. “I’d say the entrepreneurship of this was the idea we have, and we believed in it. We created a plan and a vision and found the right spot of how to get the business off the ground. And we had people that believed and supported us and what we were doing,” said Rubenstein. The name Wally’s comes from the idea of having a 70s and 80s atmosphere at the store. The concept of being connected to the guests and full-service hospitality was appealing. “We want (guests) to feel appreciated and welcome to come in the store. And we think the name really embodies that,” said Rubenstein.

Wally’s has three interactive food stations: the Wally’s sandwich house, Wally’s café and its popcorn station. Wally’s also houses a canteen with a beef jerky bar and a bakery. 28

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July 2022

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Chains to Watch / Wally’s

Wally’s embraces authenticity and aspires to offer a different experience for the consumer that doesn’t exist in the market. “I like to say old-fashioned hospitality meets today’s technology and experience capabilities,” Strom said. A FOODSERVICE DESTINATION

Wally’s has three interactive food stations: the Wally’s sandwich house, Wally’s café and its popcorn station. One of the chain’s biggest successes is its two large popcorn poppers, according to Rubenstein. Four different flavors are offered daily, three of them being caramel, butter and cheddar. The fourth flavor is a specialty flavor, which in the past has included hot and spicy, pizza, Oreo and s’mores. One of the most popular flavor pairings so far has been a mixture of cheddar and caramel. The Wally’s team scoops the popcorn into bags. “Even our popcorn bags, we made ourselves. It’s really a nod back to the big, long carnival bags of popcorn that you get,” said Strom. “From the food side, that’s really been just a great road trip snack. And it’s something that our guests have really been responding to and has been selling really, really great,” Rubenstein added. In addition to the Wally’s popcorn station, the chain’s interactive guest experience extends to its barbecue

sandwich house. Its brisket sandwiches feature Wagyu beef, a high-end quality cut of meat, with homemade potato chips also available. Wally’s controls the brand from start to finish, as well as the product and consistency. The c-store sources “the finest ingredients to take that guest experience to the next level,” said Strom. “We’re just not skimping. It’s really about going the extra level. Even if it may, at the end of the day, affect margins a bit, our guest experience is our No. 1 priority,” he continued. Guests can choose from several beverage options, as well. Wally’s offers specialty coffee and sparkling teas, as well as drip coffee. The drip coffee, sourced from a local St. Louis roastery, is located on a large grab-andgo counter. At the Wally’s café, a barista uses bean-to-cup dispensers to prepare made-to-order coffee drinks. Kombucha on tap is also available, as well as nitro cold brew and freshly squeezed orange juice. The beverage selection also includes 60 flavors at the soda fountain with old-school labels. “We design them ourselves as nods to what you would have seen back in the day. So it’s those little teeny details that really bring it home,” said Strom. Behind the food-experience stations, Wally’s houses a canteen with a beef jerky bar and other hot food items, as well as a bakery. In the Fenton location, pizza is made on-site. At the beef jerky bar, guests can select pieces and different flavors that they purchase in bulk by the pound. Their selection is then wrapped in butcher paper for them to take on the go. Wally’s also has its own signature bag of jerky, which can be found around the store. The bakery offers goods such as cupcakes, doughnuts and cookies, but guests can also choose to find their dessert at the chain’s ice cream parlor, complete with freshly made waffle cones and shakes. Wally’s offers prepared grab-and-go foods, similar to those found in a grocery store. Customers can find gondolas of grab-and-go options, including dinner meals to go. “There’s just a lot of people on the road; there’s a lot of local commuters and other people who are in the store on a daily basis, so we have a pretty large variety,” Rubenstein said.

At the barbecue sandwich house, Wally’s brisket sandwiches feature Wagyu beef, a high-end quality cut of meat.

CSTORE DECISIONS •

July 2022

A RETRO DESIGN

Wally’s encompasses its “Home of the Great American Road Trip” tagline in everything from its store design to retail offerings, starting with

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displaying the line on its entry sign in bright colors. The design is meant to capture the feel of an 80s family road trip, with the building itself having mid-century vibes. Both Wally’s stores are new builds, and the middle of the store rises to a 42-foot vaulted ceiling with a lot of glass, creating a very open area, with the Pontiac layout measuring at 30,000 square feet and Fenton at 36,000 square feet. “It has more of a grocery store type of feel,” said Rubenstein. The wide walking lanes and expansive vault allow for a welcoming, open atmosphere. The retail side of both sites features 10,000 square feet of dedicated ﬂoor space. Within, a full-sized Winnebago has been chopped up with both sides of it merchandised. The area embraces a camping-heavy theme. A Wally’s-branded area features swag items such as hats, t-shirts, cups and more. Wally’s also offers children’s, women’s, men’s, pet and home sections.

The Wally’s café offers specialty coffee from bean-to-cup dispensers as well as drip coffee that is sourced from a local St. Louis roastery.

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Chains to Watch / Wally’s

“It’s a very eclectic mix of items. I think the biggest differentiator is it’s very highly curated,” said Rubenstein. Guests can purchase a variety of value items such as road trip games, including a road trip bingo game developed by Strom. Best-selling items include sticker packs the Wally’s team developed and koozies with around 30 designs that have fun sayings. On the opposite end of the price spectrum, customers can find high-end smokers and coolers. “There’s really something for everyone, and as part of our brand development, we’ve created a really large selection of our own merchandise that is resonating very well with our guests,” said Strom. MOVING TECHNOLOGY FORWARD

One aspect of Wally’s that differentiates the store from others is its oversized, clean family-friendly restrooms. “We know how important it is to really have that clean roadside stop when you’re traveling down the highway,” Strom said. The stalls are nearly the height of a standard door, allowing the occupants more privacy. Inside the women’s restroom is a family room with a miniature toilet for children and a changing station. The restrooms also have full-time restroom attendants, a decision that was tantamount to the Wally’s mission of presenting an easy, open and clean guest experience. The restrooms feature touchless sinks, soap dispensers and hand dryers.

The Wally’s popcorn station offers four different flavors, three of them being caramel, butter and cheddar. The fourth is a specialty flavor. 32

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July 2022

A full-sized Winnebago has been chopped up with both sides of it merchandised in the store’s retail area.

The c-store uses self-checkout at both sites. “All of it is the best-in-class touchless experience from self-checkout to really every aspect of the store,” said Rubenstein. In the future, Wally’s is considering adding tech features such as pay at the pump, a loyalty program, order ahead and delivery. The chain is currently developing an online store, which will allow guests to interact with the Wally’s brand. Wally’s is also updating its app, further developing certain elements within it. In terms of tech, Wally’s “definitely (has) some things happening right now that are going to be different than you see out there as the normal offering; things like bringing entertainment, value and games into what we’re developing,” said Strom. The Pontiac location, which sits on 12 acres, has 76 fuel pumps in the forecourt, whereas the Fenton location, sitting on eight acres, has 72. The gas is sold under the Wally’s name. In addition to its fuel pumps, Wally’s offers its guests access to four electric vehicle (EV) chargers at the Pontiac site and five EV chargers at the Fenton location. “In both of our locations, we’ve invested very heavily on the electrical infrastructure,” said Rubenstein. He believes in growth for the EV charging network at Wally’s by at least three- to four-times the amount as the need arises. The Wally’s team looks forward to growing around the country. “We expect to hopefully have some additional plans announced by the end of the summer,” said Rubenstein. “We’re really just trying to change what’s offered out there at the moment. I think by us just enjoying developing this experience for our guests (…) that naturally kind of shines through,” Strom said. CSD

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Category Management | Packaged Beverage

COLD VAULT CONSIDERATIONS Consistent sellers and an ever-changing variety of flavor choices make the cold vault a hot spot in convenience stores. Marilyn Odesser-Torpey • Associate Editor

Cold vault beverage sales at Nouria Energy’s retail stores are strong in both unit and dollar sales year to date, reported Kevin Platt, senior category manager for the chain’s 150 stores in Maine, New Hampshire, Massachusetts, Connecticut and Rhode Island. Anticipating fewer out-of-stocks than in 2021 and a signiﬁcant increase in consumers taking to the highway for road trips and staycations, he expects cold vault sales to continue to rise through the summer. Consumers looking for a quick pick-me-up are keeping the momentum in the energy drink category going. This segment leads all the beverage segments in both unit and dollar growth year to date, Platt said. 34

CSTORE DECISIONS •

July 2022

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Category Management | Packaged Beverage

Energy drinks, carbonated soft drinks and sparkling water are doing well at Plaid Pantry stores, as well as mystery, sour and branded candy flavors. In the Pacific Northwest, kombuchas and yurba mate teas are strong sellers.

“Constantly changing flavor profiles including candy flavors such as sour, Skittles and Starburst keep the energy category interesting,” Platt said. He noted that bottled water is the second largest dollar segment for Nouria, and the most profitable given the lower costs versus energy drinks. He pointed out that premium water continues to drive double-digit growth in the segment. In the refrigerated juice segment, brands in the premium segment have seen the fastest growth in dollar sales, Platt said. He attributed much of this dollar sales hike to price increases in the category this year. Single-serve carbonated soft drinks have seen a slight increase in unit sales and a moderate rise in dollar sales, he stated. Like juices, the stronger dollar sales in this segment reflect the retail price increases this year. Iced tea dollars and units sold are down at Nouria, primarily due to continued out-of-stock issues and price hikes, he said. “The combination of these two factors has resulted in consumers choosing to quench their thirst with water, particularly enhanced waters, instead,” Platt noted. 36

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July 2022

He pointed out that at his stores, the ready-to-drink (RTD) cold-brew coffee has not taken off as it has in other retail channels. In the cold vault, a variety of flavors and sugar-free offerings attract consumers. Platt pointed out that the current top cold vault flavor trends are candy flavors, berry, peach and apricot. Platt is watching the cannabidol (CBD) drink segment which, he said, “is starting to catch on in other parts of the country and headed our way.” “Because (CBD drinks) are still new to New England and are set at higher retail prices than other drinks, consumers here need to be educated on the benefits of CBD products in order for them to give them a try,” he explained. HEALTHY OPTIONS, NEW FLAVORS TEMPT CUSTOMERS

Energy drink sales have been “awesome” throughout the pandemic and continue to grow at an “amazing” pace at Plaid Pantry convenience stores, reported Mike Nelson, senior category manager for the 106-store chain in Washington and Oregon. “Brands that consumers perceive are healthier for

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Category Management | Packaged Beverage

you are the ones that have been experiencing good momentum,” he said. Flavor wise, Nelson sees consumers being tempted by the mystery or rainbow flavors some energy drinks are offering. Sour candy and branded candy flavors such as Starburst have also generated traction for the segment. Prior to last year, carbonated soft drinks had been on the decline at Plaid Pantry but, Nelson noted, they came back strong last year and continue to do well this year. Dollar increases outpaced unit movement, which Nelson chalks up to higher retail prices. “Limited-time, seasonal or periodic flavor offerings, especially in the energy drink and carbonated soft drink segments, help keep customers engaged with beverage brands,” he said. Sparkling water had a stellar sales year in 2021, but now it is bottled still water that leads the segment, he stated. In the RTD tea segment, 38

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July 2022

traditional iced tea has struggled for the past few years, but kombuchas and yurba mate teas are “incredibly strong” in the Pacific Northwest, he said. Although juice sales had been declining over the past several years, the segment had a growth spurt last year, but is starting to come back down, he said. He added that the stores struggled last year in the RTD iced coffee segment, mostly because of supply chain issues, but he’s hoping that this year those issues will be resolved, and sales will climb. CSD

fast facts: • E nergy drink sales show consistent momentum. • Candy-inspired flavors are on trend. • CBD products are on the horizon.

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Category Management | Candy

PEG BAGG CANDY, GUM AND NON-CHOCOLATE

SALES SOAR Gum and peg bag candy, especially sour and fruit-flavored varieties, are seeing strong sales growth at c-stores. Kevin McIntyre • Editorial Assistant

As summer arrives and more customers return to their pre-pandemic routines, candy sales at convenience stores are reaping the rewards.

Candy dollar sales in every subcategory are trending upward, from gum and mints to chocolate and confection. According to NielsenIQ Total Convenience data, confection, gum and mints sales growth is outpacing that of chocolate, with confection and gum each increasing by over 15% for the 52 weeks ending April 30, 2022. Still, chocolate remains the most popular segment in the category, with $2.95 billion in sales for the period. That is an increase of 7.6% compared to the previous year. In this same period, retailers have seen a 15.5% increase in confection sales, a 15.3% rise in gum sales and a 13.5% uptick in mint sales. 40

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July 2022

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Overall, dollar sales for the candy, gum and mint category as a whole are trending upward at a high rate, with a total positive change of 11.8% for c-store retailers across the U.S. Many of these trends, especially in the case of gum and mints, can be attributed to an increasing number of people around the country returning to their pre-pandemic lifestyles. Still, the trend in this category is staying consistent with fruit ﬂavors increasing and mint ﬂavors decreasing. PEG BAGS SEE GROWTH

“In our candy year to date, units are up 5%,” said Raul Buenrostro, director of retail marketing at Friendly Express. “Mints seem to continue on the decline year over year. Our biggest growth has come out of the peg (bag) candy and gum. The gum category could primarily be driven by the workforce going back to their offices.” Friendly Express, with 35 stores in Georgia, has seen an increase in candy sales despite supply chain issues and manufacturer fill rates suffering. “At the start of the year, most manufacturers had fill rates below 70% for the first three months of the year in key items,” said Buenrostro. “That affected the overall growth of the category.” To combat the supply chain issues, however, retailers like Friendly Express have increased and expanded upon peg bag candy sets, which is something that was not being pushed in the past, noted Buenrostro. Despite the setbacks that many retailers have seen in the past few hectic years, candy sales remain consistently in the positive, leaving retailers optimistic. “Based on our unit movement, it seems that despite going through this inflation period, the customer will continue to indulge in a candy bar or two,” said Buenrostro. cstoredecisions.com

July 2022 • CSTORE DECISIONS

Category Management | Candy

Non-Chocolate Sales See Rapid Growth Confection (15.5%), gum (15.3%) and mint (13.5%) sales growth outpaced that of chocolate (7.6%) for the 52 weeks ending April 30, 2022, per NielsenIQ. But chocolate still leads the category with $2.95 billion in sales for the period.

Category

Dollar Sales

1-Year % Change

Candy, Gum, Mints

$6.54 B

11.8%

Chocolate

$2.95 B

7.6%

Confection

$2.51 B

15.5%

Gum

$760 M

15.3%

Mints

$210 M

13.5%

fast facts: • Fruit flavors, sour flavors, movie-themed products and king-sized items are trending. • Some retailers have increased peg bag candy sets to offset supply issues.

Source: NielsenIQ Total U.S. Convenience data for the 52 weeks ending Apr. 30, 2022

HIGHER MARGINS

promotions and most shippers were cancelled for c-stores,” said Jodi Leibowitz, category manager at Rotten Robbie. “I anticipate moving through fewer units, but at higher margins.” Another subcategory that is trending upward is themed candy sets, especially movie-themed products. According to Leibowitz, as movies continue to come out in the coming months, category managers are sending branding items to stores to sell throughout the summer. In addition to themed candy packs, retailers can also take advantage of localized products that are curated to each store’s consumers. “A big move we made is adding a local independent Hispanic candy line,” said Leibowitz. “The margins are great, and it is a great seller and a way to localize the candy selections in our higher Hispanic locations.” C-store retailers that have thrived from innovative, new products in the category have been hopeful of new products to market in the future. During the past two years, supply chain and manufacturing problems throughout the industry have hindered production of many new products. Nevertheless, candy sales conChocolate remains the most popular segment in the category, with king-sized products outpacing tinue to rise in multiple categories, leaving retailers optimistic single-serve units in sales, both with chocolate and non-chocolate segments. for strong summer sales. CSD Other retailers are seeing increases in categories such as king-sized products, which are currently outpacing single-serve units in sales. Rotten Robbie, which operates 36 stores in northern California, has seen this trend, especially with nonchocolate peg bag candy and sour-flavored products. “Sales should be up in retail, but (we are) selling fewer units since vendors are not offering many

CSTORE DECISIONS •

July 2022

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Category Management | Snacks

SUMMER SNACK SALES HEAT UP Snack sales trend upward as retailers appeal to customers with promotions, healthy options and popular brands. Howard Riell • Contributing Editor

The great Nat King Cole might have been speaking directly to c-store operators back in 1963 when he sang, “Roll out those lazy, hazy, crazy days of summer. Those days of soda and pretzels and beer.” Indeed, summer is the time for snacking. But knowing which salty, sweet and healthy snacks to stock and how to best promote and merchandise them remains a key task for c-store retailers. Salty snacks have historically sold well during the summer months, as vacations and summertime activities call for convenient, grab-and-go foods. At the same time, product knowledge and education about

healthy eating have changed and contributed considerably to the growth of the category. Salty snack sales in the c-store channel totaled $6.3 billion, a gain of 14.4%, during the 52-week period ending May 15, 2022, according to IRI. Potato chips accounted for $1.9 billion in sales, up 13.7%. Tortilla/tostada chips racked up sales of more than $1.3 billion dollars, a 17.6% rise. SUMMER TRENDS

The Sweets & Snacks Expo in May found recent trends include more extreme ﬂavors, so look for snack items to turn up the heat. Watch for fresh twists on classic favorites and more options in terms of package sizes and product types to ﬁt every snack occasion. “Popular snacks for summer are any that tie into outdoor activities like

fast facts:

• Salty snack sales in the c-store channel totaled $6.3 billion, a gain of 14.4%, for the 52 weeks ending May 15, 2022, per IRI. • Trends to watch include extreme ﬂavors, twists on classic favorites and more options in terms of package sizes and product types. 44

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July 2022

baseball,” said Tim Young, category manager for candy, snacks and edible grocery for Bardstown, Ky.based Newcomb Oil Co. LLC, which operates more than 80 Five Star Food Marts in Kentucky, Indiana and Tennessee. “In seeds and nuts, popular brands are David’s and Bigs, and the ﬂavors range from original to ranch and dill pickle,” he said. Young added that he and his colleagues are also seeing the meat snack category continue to grow, as the supply of sticks has improved quite a bit over the course of the last year. “Great summer snack brands are Combos, Cheez-It, Bugles and Pringles, to name a few,” Young said. “We are still seeing growth from protein items like Quest Protein Chips and Protein Poppers. Jerky is strong, and we are working on more bundle offers or ties to fuel with loyalty.” Health does play a factor in customer purchase decisions, Young has found, though not as much as many might think. “People are still loyal to their traditional brands, but we continue to look for healthier options for them to try,” he said. cstoredecisions.com

ON THE GO

“All salty snacks such as chips, popcorn, puff snacks and more do well at AAFES stores during the summer months,” reported Dragana Ilic, buyer III for the Army & Air Force Exchange Service (AAFES), which operates 589 Express convenience stores and 122 main stores. “Nuts and trail mixes are also very popular as a healthy, on-thego snacking option.” Doritos are traditionally a best-seller, while Wonderful Pistachios and Power Up Trail Mix do well as healthy options, Ilic noted. “Hippeas are very popular as a healthy puff snack.” Many consumers lead on-the-go lifestyles that demand portable and ready-to-eat healthy foods. “They are more inclined to try new flavors and pay premium prices for premium ingredients,” Ilic noted. Flavor preferences vary by location, Ilic noted. For example, Hispanic flavors tend to do better at Express stores in the South. Customers are also paying more attention to labels, nutrition and healthy eating overall. As a result, better-for-you snacks have been trending at Express stores. Natural, organic, gluten-free or vegan snacks have all seen continued growth. As consumers have become more health-conscious, Express stores have stocked more better-for-you snacks with added protein and plant-based ingredients, Ilic said. Promotions are also driving purchases in the category. In June, AAFES featured a chips promotion for $1 off when shoppers purchased a roller grill item and single-serve bag of chips. The July and August promotion offers a free dispensed beverage with the purchase of a Doritos big bag. Snacks are traditionally merchandised in high-traffic areas, endcaps and floor displays. Two-fer offers continue to do well, Ilic reported. “Secondary and shipper displays have also provided a reliable lift in sales,” Illic said. CSD cstoredecisions.com

June 2022 • CTORE DECISIONS

Foodservice | Deli

How to Grow

YOUR DELI PROGRAM Proprietary delis can be the heart of successful foodservice programs if retailers take key considerations into account. Marilyn Odesser-Torpey • Associate Editor

C-stores are succeeding with deli programs with careful attention to customer demands in each market area as they work to attract customers away from the competition. In May, six out of the 11 full-service delis at Clifford Fuel Co.’s Cliff’s Local Market stores in New York broke their all-time sales records, reported Derek Thurston, the chain’s director of foodservice operations. Cliff’s made-to-order operation, which accounts for 40% of the company’s foodservice sales, is an assembly-line set-up where customers point out what ingredients they want on their sandwiches and assemblers behind the counter put them together. Sourdough, Italian herb and cheese and other breads are baked fresh on-site for subs and melts. The menu also includes tomato basil, white, honey wheat, spinach and jalapeño cheddar wraps. The deli is always the center of foodservice activity with staffers preparing foods for the graband-go cases when they are not building made-to-order sandwiches, Thurston noted. “We make a ton of grab-and-go products at the deli,” he elaborated. Thurston pointed out that retailers thinking about adding a deli to existing locations should be aware of the challenge of changing customers’ food purchasing and eating habits. He explained that probably the hardest habits to break are at breakfast. 46

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July 2022 • CSTORE DECISIONS

Foodservice | Deli

“You have to offer an outstanding product at a good price and provide a high level of service to get customers in and out quickly,” he said. He added that sampling is a good way to get products in customers’ hands and mouths. Sampling works particularly well when the product is a limitedtime offer (LTO), something fresh and new to garner attention. “We just did an LTO breakfast sandwich with sausage or bacon on a Belgian maple waffle,” he said. “Now we’re working on a premium chipotle-turkeybacon sandwich on ciabatta.” Cliff’s tests its new products in a handful of stores before it rolls them out. The company also emails monthly coupons to its customer base. Another way Cliff’s promotes its delis is through social media including Facebook, Twitter and Instagram. “Food pictures really tell the story,” Thurston said. Cliff’s Local Market has a total of 20 stores in New York state. Delis are set to be added to existing locations as they are remodeled. EVALUATE DELI OFFERINGS

In most of Englefield Inc.’s 120 Duchess convenience stores in Ohio and West Virginia, deli sales have grown close to 10% compared to pre-COVID sales, according to Nathan Arnold, director of marketing for Englefield Inc. He attributed this increase to Duchess’ commitment to innovation and constant analysis of the deli offerings. The delis offer freshly made cold subs, sandwiches and salads along with hot grab-and-go items including select subs, chicken tenders and hamburgers. Many of the stores feature cold wells that provide numerous toppings that customers can add to their sandwiches. Even though deli-made grab-and-go options are the most popular at the stores, many of the locations have open sight lines directly into the kitchens, so

fast facts:

• S ampling can whet customers’ appetites for deli products. • B efore deciding on a food menu, study each market for food preferences. • R etailers are saving on costs by using ingredients in multiple ways across the menu. 48

CSTORE DECISIONS •

July 2022

customers can see the team members making fresh food. Aromas from the ovens are also key to getting customers to equate the stores with high-quality food, Arnold noted. Arnold advised retailers who are planning to roll out a deli program to study each market carefully to determine which flavor profiles are preferred. “What works in one market may not work in every store,” he said. “We do extensive testing of products before we launch, with test markets and focus groups.” Retailers planning to sell hot foods from their delis should invest in a fryer (with hood if required) and walk-in freezer large enough to hold a week’s worth of inventory, advised M. David May, director of food services for Kwik Stop Convenience Stores. The company has a total of 27 stores in Nebraska and Colorado, 13 of which have proprietary delis. “People are generally not looking for healthier choices when they come to a convenience store deli, the flavor of fried foods is better than baked and they take half the time to prepare,” he explained. “Having a fryer also offers a wide range of product options from appetizers such as mozzarella sticks and mini tacos to dessert items such as fried cheesecake bites.” May also recommended making up a menu that uses the same basic ingredients in multiple ways. As an example, he mentioned chicken breasts, which can be offered mesquite-grilled on a bun, as a club sandwich and with provolone and mushrooms (the mushrooms come from the stores’ pizza program). CSD

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Operations | Forecourt Marketing

SUCCEEDING WITH

FORECOURT MARKETING Effective forecourt marketing creates a strong first impression and presents customers with a compelling call to action to visit the store. Howard Riell • Contributing Editor

Driving fuel customers from the gas pump into the convenience store remains one of the greatest marketing challenges for c-store retailers. That challenge is growing even more complex today given evolving technology such as video and mobile payments at the pump, changes to customer habits brought by the COVID-19 pandemic and now skyrocketing gas prices. Before retailers focus on forecourt marketing from a technology perspective, it’s important to ensure best practices are already in place. CREATING AN IMPRESSION

“The forecourt itself is a large part 50

CSTORE DECISIONS •

July 2022

of a c-store’s marketing efforts,” explained Steven Montgomery, president of b2b Solutions LLC in Lake Forest, Ill. “It is here the customer begins forming a perception of what they will find inside.” If the forecourt is in disarray with litter on the ground or dirty dispensers, that sends a message to customers about the type of experience they’ll find inside the store. “Other forms of marketing will have a difficult time persuading customers to go inside if the forecourt’s message is ‘this is not a place you want to shop,’” Montgomery said. With the higher price of gas causing increasingly frugal consumers to fill up less frequently, convenience store retailers have an opportunity to position themselves as a one-stop shop.

“Gas prices can be both a negative and a positive factor. It is a negative because it can impact trips and customers’ discretionary income, but a positive because with the right product mix, marketing and pricing strategy it can drive basket size as customers seek to consolidate trips,” Montgomery added. CALL TO ACTION

The first step in forecourt marketing is finding a call to action that drives gas customers to go inside the store, noted Anna Felz, marketing brand manager for Spicewood, Texas-based Texas Born (TXB), which operates 47 locations throughout Texas and Oklahoma. “How to do that successfully is the mystical question that everyone is try-

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fast facts: • The cleanliness of the forecourt informs customer perceptions about whether or not the c-store is a nice place to shop. • High gas prices give c-stores an opportunity to be a one-stop shop for customers cutting down on trips.

ing to figure out right now,” Felz said. Videos at the pump can help put this call to enter the store in front of customers, but results depend on the offer. Highlighting foodservice items can be one tactic. “If you have some delicious-looking food, and it’s easy and convenient, it will work,” Felz added. The ideal is for the consumer to eventually be able to push a button and order a sandwich or other food item and have it ready and waiting when they enter the store, she said. “That will get people to come inside, so I think it’s all about your offer,” Felz said. “If you have a boring video, or it’s unprofessional or it’s just ads that is not going to do anything. Again, it’s all about what you are offering on the inside and needing to present that on the outside.” The technology to allow customers to order food via the pump is not quite there yet. “We see people trying to get into that right now. It’s more challenging; it’s a goal, and there are people making strides in it,” Felz said. “We are working on it as well, where you can

at least order it from our app at the pump. But then people have to be using their phones at the pumps.” The challenge in implementing order-at-the-pump technology comes down to the specifics of integrating pumps with the kitchen and the point-of-sale system. “There is just a lot of IT integration among different players who have to play together to make that work,” she said. RETURN TO NORMAL

The COVID-19 pandemic threw a monkey wrench into c-store marketing schemes as customers initially sheltered in place in many locations. “Initially, when the pandemic first started, it was just that drive time was way down, trips were way down, and a lot of people didn’t want to come inside,” Felz recalled. “There were a lot of stores that shut down their inside areas due to safety protocols, and they didn’t have the labor, and so people were only getting fuel.” Thus, the pandemic took a sizeable chunk out of TXB’s food sales.

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“Breakfast and lunch sales were down because people were not taking the same trips to work, the office or school,” Felz said. “But later on, and even during the pandemic, people would come inside and were buying more because they were stocking up. They wanted to get plenty of water, plenty of toilet paper, milk, pizza, ice cream and stuff to take home. Beer and wine sales went up, too. So even though they weren’t taking as many trips, they were buying more when they did come inside.” Today, customer shopping behavior is returning to pre-pandemic levels, making it an ideal time to double down on forecourt marketing. “Now I think we are starting to come back to what I will call a normal world, a normal sales cycle,” Felz said. The arrival of summer is also influencing forecourt marketing efforts. “A lot of times for c-stores the sales can be weather-related. For us, sales have been good because the weather has been hot, and that brings people in to buy water and ice,” she said. Overall, Felz concluded, TXB’s management feels confident that sales are going to be higher — and forecourt marketing more effective — this year than last. “There are more people out this year than at this time last year,” she said. CSD July 2022

• CSTORE DECISIONS

Technology | ATM

BOOSTING BUSINESS WITH BITCOIN ATMS Bitcoin and other digital currency machines are emerging in the c-store space, while traditional cash management methods are elevated with advancing technology. Emily Boes • Associate Editor

With bitcoin and other cryptocurrency platforms on the rise, retailers are incorporating specialized ATM machines in their stores to stay ahead of the curve. “There’s been a large growth in the bitcoin terminal deployment in c-stores around the country,” said Bruce Renard, executive director at The National ATM Council. Both standalone bitcoin kiosks and terminals, as well as traditional ATMs with the ability to purchase cryptocurrency and take up less ﬂoorspace, are gaining traction, Renard said. “I think the marketplace is still learning about what’s the best way to make this new, cutting-edge type service available,” he continued. ARCO ampm is looking to start a national program with digital currency ATM machines. Ken Dharni, an ARCO ampm operator in Sacramento, Calif., and the surrounding area, who operates seven stores, has already begun rolling out machines through a partnership with National Bitcoin ATM. 52

CSTORE DECISIONS •

July 2022

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Technology | ATM

fast facts: “I have (National Bitcoin ATM) in five locations,” said Dharni. He also has one cryptocurrency machine with another company. Dharni was attracted to the idea of installing the new machines after National Bitcoin ATM and others reached out to him. Not only did he have the space available, but he was attracted to the commissions the companies offered him as an incentive for installing the bitcoin ATMs in his stores, and he likes that the ATMs help draw customers. Having installed the new machines one year ago at his locations, Dharni said he receives a $295 per month commission from National Bitcoin ATM for installing the bitcoin ATMs. At the bitcoin ATM, customers use cash to purchase $20 to $12,500 worth of bitcoin per day and send it to their digital wallet or create a new paper wallet, receiving a printout with the codes for accessing their transaction. So far, the bitcoin ATMs are bringing in a good amount of business. Dharni is finding that location can play a key role in the success of ATMs in general. “One site does really good. There’s no bank nearby. So, that one does almost three-, four-times as much as my other locations,” Dharni said. Pops Mart Fuels, which operates 24 c-stores in Columbia, S.C., has also decided to expand its ATM capabilities with Coin Cloud’s digital currency machines, allowing its customers to access bitcoin, ethereum and other digital currencies with cash. Lou Perrine’s Gas and Grocery, which operates two locations in Kenosha, Wis., on the other hand, opted out of installing bitcoin ATMs due to large consumer fees. “When these bitcoin ATMs charge large fees, it makes the concept of crypto or specifically bitcoin less likely to have mass adoption,” said Anthony Perrine, owner of Lou Perrine’s Gas and Grocery. “So long story short, I will put a bitcoin ATM in once they work through those kinks where some of the fees are massively lowered.” According to Renard, a brand-new innovation that would be interesting to see in stores is a bitcoin gift card

CSTORE DECISIONS •

July 2022

• Bitcoin and cryptocurrency ATMs are gaining traction at c-stores. • ATM technology continues to develop. Today’s ATMs can cash checks, make deposits and allow for bill pay. that one of The National ATM Council’s members created. “So just like you can purchase a Visa gift card for ‘X’ dollars, this enables you to purchase a gift card for ‘X’ amount in bitcoin,” he said. Renard believes bitcoin ATMs, or at least some form of the concept, is here to stay. The question for retailers to ask, he said, is the type of regulations that will surface from federal, state and local authorities. UPGRADES WITH TECH

“(ATMs) continue to contribute to the bottom line both directly in terms of profits from the ATMs, as well as in terms of putting cash in people’s hands to be able to spend on-site,” said Renard. “The ATMs in today’s marketplace continue to be a very important component of the c-store scene.” Traditional ATMs aren’t falling by the wayside with the rise of bitcoin. Lou Perrine’s Gas and Grocery’s ATMs are still highly used and profitable. According to Perrine, the machines pay two employee wages a year. ATMs are advancing technologically across the board. More ATMs today offer customers the ability to pay bills or cash checks. Some retailers are using cash discounting programs — offering a lower price when customers pay with cash vs. a handling fee for credit card payments to recoup card merchant fees — which encourages ATM use. GPM Investments, a wholly owned subsidiary of ARKO Corp., based in Richmond, Va., is currently looking into such advancements. “We are currently working with a few partners who have new models that offer a variety of services such as bill pay, direct deposit, no more armored car service required and of course the integration of bitcoin,” said Mike Bloom, executive vice president, marketing and merchandising for GPM Investments, which operates approximately 3,100 locations (1,415 company-operated stores and 1,675 dealer sites) in 33 states and Washington, D.C. Look for ATMs to play a larger role in cash management. Emerging methods of cash management include cash recyclers and smart safes. Depositing cash in the smart safe or cash recycler keeps money safe, while automatically crediting the retailer’s account at the bank, and cash recyclers can also dispense small bills for making change. “And if you put (the smart safe) with a cash recycler and ATM, you can have it where it’s facilitating the ability to place cash into the ATM, but have it all accounted for properly,” said Renard. CSD

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Technology | Point of Sale

POS Needs Evolve FOR C-STORE RETAILERS As more c-stores add foodservice, retailers see opportunities for point-of-sale integration. Erin Del Conte • Executive Editor

As evolution continues at convenience stores, new integration needs are cropping up at the point of sale (POS). “Some of the largest shifts in the last 18 months in cstores have been the continual expansion of EMV in the forecourt, additional payment options, including a significant increase in digital accounts for ordering online, and stored payments for reoccurring and subscriptions payments,” noted Perry Kramer, managing partner with retail consulting firm Retail Consulting Partner. What’s more, Kramer noted, many POS systems have migrated their architecture to a microservice-based technology, as retailers seek more integrations with their POS. C-stores today are looking to connect digital ordering, food ordering kiosks, loyalty, fuel dispensers and car washes as well as drive-through and self-checkout. INTEGRATING KITCHEN MANAGEMENT

Lubbock, Texas-based Curby’s Express Market opened its first location in February and has two more 56

CSTORE DECISIONS •

July 2022

stores set to open in the second half of the year. “The intention is to scale the chain as big as we can, with seven to eight (stores) in the Lubbock, Texas area as well as in other operating areas,” said Tony Sparks, head of customer wow at Curby’s Express Market. “We call Curby’s a ‘new breed of convenience,’ and we do consider it the next generation in convenience retailing.” As such, Curby’s is unique. It doesn’t offer fuel, but it provides an array of made-to-order food and beverages. The store also features a double-lane, fullservice drive-through, with order-takers walking down the line taking orders via tablet. Inside, customers can opt for self-checkout or traditional checkout. Curby’s chose not to use foodservice kiosks because it wanted to maintain the personal interaction between customers and employees. Customers receive a ticket with a barcode after they order food, which they can scan along with other items at the POS. But when it came to integrating all these different concepts through the POS, Curby’s struggled to find a system that checked all the boxes.

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Technology | Point of Sale

fast facts: • The rise of foodservice, drive-through and selfFor Curby’s the holy grail would be an enterprise checkout is adding complexity to c-store pointsystem with all the functionality of a true kitchen manof-sale (POS) integration needs. agement system (KMS) that could also integrate the • Small operators can have an especially chalhandheld tablets at the drive-through, while allowing lenging time managing POS integrations withthe self-checkout to ring up foodservice and still handle out the sizable in-house teams of large chains. traditional grocery and convenience promotional stacking. “You would think that maybe there’s a platform out there that has all this in one enterprise system, but what we found is that there isn’t one,” Sparks said. “Unless you want to spend hundreds of thousands of dollars in the best solutions out there,” noted Peter Rasmussen, development of your customized proprietary system for special consultant and advisor to the board of directors your chain, there is not an off-the-shelf network system,” for Neon Marketplace. Sparks said. In addition to foodservice and drive-through, Neon MarSparks found that great kitchen management systems ketplace is set to add self-checkout this summer. Currently, exist, and excellent grocery and convenience systems exits foodservice customers order on a touchscreen order kiist, but the restaurant side can’t manage large-scale proosk and receive a ticket, which they can take to the register motional stacking. Meanwhile, the top grocery systems to pay. Some chains would prefer to have customers pay manage robust promotional tracking, but can’t handle for food at the touchscreen order kiosk, but Rasmussen kitchen management as seamlessly as a true KMS. noted there are pros and cons to either option. “This is where everyone gets hung up. How do you al“If somebody had to pay at the (food ordering) kiosk, then low the customer to order food and beverage, and then you would have guaranteed payment, which is good, but let them use self-checkout without going through a lot of then, if they want to buy something else in the store, it might hoops?” he said. cause a customer to have to do two transactions,” he said. The Curby’s team spent months speaking with multiple Neon Marketplace is in the process of integrating POS suppliers and connecting with retailers running its new mobile app, which will be launching later this similar programs. year. “It integrates with the whole pricebook. I program Finally, Curby’s turned to NCR’s Radiant POS, which my PDI pricebook that lifts right out into the app, which allowed it to implement its desired integrations using just integrates into the POS system as well,” Rasmussen said. one system. “You’ll be able to literally order the entire store, and then “It does almost everything we want it to do,” he said. have it either be picked up or delivered via DoorDash, “If you want to alter an order on food and beverage, it’s and that’s with just holding one master pricebook.” really not made for that, but it gets us almost everything No matter what POS solution a company chooses, POS we need under one system.” integration can be more difficult for small operators. As Curby’s prepares to expand its footprint, it continues Big chains can hire employees that become experts to seek solutions to improve QSR integration, but it on the software and hardware, so if an issue arises, they may just have to wait for technology to catch up to can handle it in-house, while small retailers must depend retailer trends. on external resources to troubleshoot. For example, if Sparks spoke with another c-store chain that solved the credit goes down, getting the software provider, network challenge of managing kitchen, convenience and a driveprovider and hardware provider all coordinated in solving through as a small operator by using two systems. While the issue can be a challenge. it would be more steps and more expense, Curby’s has “Technology’s intimidating when you’re small and you considered switching to this method in the future to gain don’t have a CIO and a big in-house team,” he said. the benefits of a KMS. “For example, we would get Aloha As evolution continues, Rasmussen, like Sparks, sees an for our kitchen management, which is an NCR product, opportunity for growth with the nimbleness and flexibility then have a second screen right there and ring it up on of POS software. our POS separately,” he said. “Look at the restaurant industry using Toast or Square. These are solutions that are super cheap, super nimble. TROUBLESHOOTING AS A SMALL OPERATOR They integrate with third-party software, such as Uber Eats, Warwick, R.I.-based Neon Marketplace operates four DoorDash, Grubhub, without having to write a custom API locations and expects to have about 10 stores open by code,” he said. “I think it’s very fast evolving, and I hope the end of the year. that the solutions that also do gas really well can adapt “We chose NCR, and I believe that that is really one of some of the features that other POS systems have.” CSD 58

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CStoreDecisions .com Making Connections that Drive Business

CStoreDecisions.com is geared toward C-Store retailers, convenience store suppliers, and distributors looking to stay abreast of industry trends, new product oﬀerings and category management best practices. We use the latest media technology, delivering content the way you want it: print issues, digital issues, enewsletters, and videos. Use CStoreDecisions.com to help you strengthen your peer network with social engagement through Twitter, LinkedIn, Facebook, YouTube, Pinterest, and Google+. Browse, bookmark, share and interact with the most relevant industry content and people in the market.

PRODUCTShowcase

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Old Wisconsin’s new Hot & Spicy Sausage Sticks and Bites are naturally hardwood-smoked and packed with a bold ﬂavor blend of Serrano, Jalapeño and Red Peppers. The snacks are naturally slow smoked, a good source of protein and gluten free. Old Wisconsin uses authentic recipes, spice blends and genuine pit-style ovens. A 10-count jumbo bag of Hot & Spicy Sausage Sticks has a net weight of 14 ounces. A 12-count bag of Hot & Spicy Sausage Bites has a net weight of four ounces.

White Claw is introducing REFRSHR Lemonade new flavor additions. Rolling out nationwide, White Claw REFRSHR debuted with four distinct lemonade flavors — each crafted to deliver unique and different flavor profiles. The list of flavors includes limón with calamansi, blood orange with black raspberry, blackberry with red cherry and strawberry with kiwi. White Claw is crafted with a BrewPure process, which results in a clean-tasting alcohol base. With 5% ABV, 100 calories and one gram of carbs, this new collection is available in 12-can variety packs nationwide.

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PRODUCTShowcase

CBD Sleep Oil Drops Sky Wellness released its CBD Sleep Oil Drops 500mg + CBN + Melatonin, which is a collection of sleep assist CBD products and a perfect combination of CBD, CBN and melatonin. CBN — the cannabinoid for sleep — has been studied for anti-insomnia effects and may be one of the strongest cannabinoids in promoting healthy sleep habits. These oil drops are made from pure, high-quality cannabidiol oil from U.S.-grown and -manufactured hemp. The all-natural ﬂavor is subtle and soothing. The CBD Sleep Oil Drops are priced at $54.99.

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Bursting Sour Gummy Worms

Fillo’s has announced the launch of Walking Tamales, which is a shelf-stable, cleanlabel tamale. Walking Tamales are designed to be consumed on the move and straight from the package or after having been heated in the microwave for 25 seconds. Flavors for the tamales include Bean Salsa Verde, Bean Salsa Roja, Bean Salsa Habanero, Mexican Chocolate Almond, Peanut Butter Piloncillo and Strawberry Coconut. Walking Tamales are available either as a variety pack or in single ﬂavors.

Trolli is releasing Sour Bursting Crawlers, a new twist on the classic Sour Brite Crawlers. The crawlers come in Cherry-Pineapple, Blue Raspberry-Strawberry, StrawberryGrape and Mango-Fruit Punch. The candy is sold in three-ounce, 4.25-ounce and 6.3-ounce bags at mass, grocery, drug and convenience stores nationwide, as well as online through e-commerce partners.

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New POS System Dover Fueling Solutions (DFS) has announced the launch of Prizma, which is a point-of-sale (POS) system designed to specifically cater to a wide spectrum of fuel and convenience retailer needs. Prizma enables retailers to evolve their businesses with more payment options and flexibility, integrating alternative and traditional refueling types, providing an ecosystem of on-site payment, forecourt control solutions, connected cloud analytics and remote management solutions. Prizma is focused on delivering results to retailers in two primary areas: incremental profit through an optimized customer experience and reducing site management costs through easy on-site and remote management solutions.

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July 2022 • CSTORE DECISIONS

PRODUCTShowcase

Temperature-Maintaining Containers Inline Plastics announced the launch of Safe-T-Chef, an entirely new product family of polypropylene containers with patented tear-strip technology, designed to add layers of protection while maintaining the temperature of warm and hot foods. There are 12 options for the product, ranging in shape (rectangular, square and round) and capacity (from sizes of 12-35 ounces). Inline created an all-clear, 360-degree smooth wall container, which is safe for both microwave and dishwasher use. Consumers can also serve and eat the foods directly from the container without the need to transfer to another plate or dish.

Inline Plastics

www.inlineplastics.com

Post-Workout Snack Bar N!CK’S Smak Bars offer a healthy alternative for an after-workout snack. Smak Bars are nourishingly chilled with a cookie-dough-like texture, with 12-14 grams of protein, only four to six grams of net carbs, 170-180 calories and never any added sugars. Available in Choklad Peanöt Butter, Strawbär Cashew, Hazelnöt Choklad and Peanöt Cacao Nib, these keto-friendly snacks make for a nutritious anytime pick-me-up.

C-Store Workshops for Store Managers BandyWorks is launching cstore workshops for store managers. Store managers are the single most manageable factor in c-store results once the store investment is made. The workshop addresses employee retention, loss prevention, customer service, inventory levels, store cleanliness, cash control, management pipeline and recruitment. C-Store Growth Mindset workshops are based on a ﬁeld-proven, researchvalidated set of ﬁve accountability principles established directly from family c-store operations support. It utilizes a case-based, weekly cadence to provide managers with 25 minutes of actionable and realworld focus.

BandyWorks

www.bandyworks.com 62

N!CK’s

www.nicks.com

Tropical Fruit Juice Beverage The Coca-Cola Co. launched Minute Maid Aguas Frescas — a brand new beverage line offering a refreshing twist on juice with a unique, bold taste. The Latin Americaninspired juice beverage made from real fruit juices and natural ﬂavors is available in three ﬂavors: hibiscus, mango and strawberry. Aguas Frescas cans are non-carbonated so consumers can freely shake prior to drinking. Minute Maid Aguas Frescas is currently available nationwide in 16-ounce single-serve cans, with each can containing 45 calories and 11 grams of sugar per eightounce serving.

The Coca-Cola Co. www.coca-cola.com

CSTORE DECISIONS • July 2022

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PRODUCTShowcase

Sugar-Free Gummy Candy Lily’s brand is launching its new Lily’s Sweet Fruity Gummy Bear Friends and Lily’s Tart and Tasty Sour Gummy Worms nationwide, each with no sugar added. Naturally flavored, Lily’s Gummy Bears come in four flavors including raspberry, strawberry, orange and lemon. Lily’s Sour Gummy Worms contain lemon-raspberry and apple-peach flavors. Both sweet and sour treats have less than one gram of total sugar. Lily’s Gummies are available now in 1.8-ounce bags at retailers nationwide. Lily’s products are also gluten free, fair trade certified and made with nonGMO ingredients.

The Hershey Co.

www.thehersheycompany.com

One-At-A-Time Lid Dispenser CFS Brands released the new EZ-Fit hot lid dispenser, which offers customers a more sanitary way to retrieve lids without spreading germs by having them available within the counter and dispensed one-at-a-time. The unit can be mounted vertically or horizontally, making for easy in-counter installation. The dispenser contains four interchangeable rubber gaskets that ﬁt a wide variety of lid shapes and sizes. The unit also helps to reduce the number of wasted lids while increasing the cleanliness of the beverage stations.

CFS Brands

www.cfsbrands.com

All-Natural Protein Bars G2G protein bars are made with all-natural ingredients, no preservatives and plenty of protein. The bars come in eight different ﬂavors, ranging from peanut butter chocolate chip to almond oatmeal cookie. Each G2G bar contains 18 grams of protein and is also completely gluten free. Since they contain no preservatives or other artiﬁcial ingredients, the protein bars are always kept refrigerated. G2G bars are also very convenient and offer customers a chance to take a healthy snack with them on the go.

G2G

www.g2gbar.com

Sweet and Salty Pretzel Treats Flipz announced its new Flipz STUFF’D White Fudge Peanut Butter and Flipz Clusterz Pretzels & Caramel. Flipz STUFF’D White Fudge Peanut Butter is a salty and sweet bite-sized pretzel nugget ﬁlled with peanut butter and coated in fan-favorite Flipz White Fudge. It is available in 3.5-ounce and six-ounce resealable bags. Flipz Clusterz Pretzels & Caramel are clusters of salty, crunchy pretzels and gooey caramel coated in sweet milk chocolate. Flipz Clusterz are available in 1.5-ounce three-piece bars.

pladis Global

www.pladisglobal.com

cstoredecisions.com

July 2022 • CSTORE DECISIONS

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Classifieds/Ad Index

Abbott

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E-Alternative Solutions

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NRS Petro

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Essentia Water

Fiji Water

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GSK C-Store

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Kaivac

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Liggett Vector Brands

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Ruiz Foods

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Swisher International

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VLN

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cstoredecisions.com

July 2022 • CSTORE DECISIONS

IndustryPerspective

Competitor Update:

What C-Stores Need to Know With technological advancements, inflation and the lingering pandemic shaping customer trends, channel blurring and competition remain steeper than ever for convenience stores. Tim Ross • Ross Co.

A master of martial arts once told me that “the eye must see all sides.” So true of many things in life, and especially true for retailers today. The lines in our daily battle for sales and profits have become blurred, with merchants from multiple channels scrambling to invade our space. The competition from dollar stores, grocery stores, e-commerce, drugstores and quick-service restaurants (QSRs) continues. SO, WHAT DO I SEE?

Omnichannel interlopers are bridging brick-and-mortar stores and the digital space, which during COVID-19 has become such an important part of our daily lives. Work at home/stay at home became an ignition point for delivery, and this trend carries forward even as people are now venturing out. Speedy sameday delivery is available for just about anything, and it takes convenience to a new dimension. Technology is only getting better. Frictionless payment systems, notably self-checkout, just walkout and scanand-go systems, are gaining traction in the marketplace. Amazon has its proprietary system for Amazon Go and Amazon Fresh stores, while Grabango (scan and go) is among available alternatives that can be integrated into pointof-sale systems. Walkout technology can eliminate the hassle of an unpleasant experience or waiting in line at the 66

CSTORE DECISIONS • July 2022

checkout, while allowing retailers to trim or redeploy staff. QSRs are reaching for an increased share of stomach as well. Those focused on the morning daypart are working to improve lunch, and those who have made a living on lunch and dinner are now working hard on breakfast. Drive-through business has seen an enormous surge in popularity during COVID with no let-up in sight. High-volume QSRs are now seen featuring double drive-through lanes with attendants expediting orders, and Taco Bell has introduced a two-story, four-lane drive-through complete with a vertical lift system. SHIFTING COMPETITIVE LANDSCAPE

Here is a pop quiz: I just visited a retailer that sells candy, tobacco, beer, wine, groceries and has a drivethrough window. Was it a c-store? No — it is Walgreen’s. Inflation is upon us and, not surprisingly, has consumers upset and occasionally irritated to the point where it can influence pre-established buying decisions. Dollar stores are in a prime position to capitalize on this value-driven shopper. On another front, what you get for $1 in a “dollar” store is not the same as it was a short time ago. Foodservice remains a bright light in convenience retailing; however, the stakes are getting higher in terms of food quality. Of note are convenience stores utilizing chefs to create both

delicious and “better-for-you” choices as standard fare. Not to be overlooked are grocery stores, which are also entering the prepared foodservice segment. Wegman’s, for one, offers quality food made fresh on-site and has plenty of seating available. Technology has also proven to be a foodservice game changer. To name a few, downloadable and repeatable menu settings are available for ovens, quick-cook ovens speed the cooking process, bean-to-cup coffee solutions improve quality and reduce waste, and customer ordering kiosks speed the buying experience. Remember, c-store customers shop in multiple and competing formats, and each time they have a memorable experience in the QSR or grocery channel, they inadvertently raise the bar for c-stores. SO, WHAT DO YOU SEE?

Because two people can see the same scenario differently, I suggest you look at the marketplace from a new perspective. Take a new route to your store or work tomorrow and visit your competitors frequently. When in doubt, ask someone with an indifferent opinion and a cold set of eyes to take a look and provide feedback. Tom Ross managed store design and layout for both Mobil and ExxonMobil “On the Run” convenience stores. He is currently the principal of Ross Co., a consultancy for convenience, foodservice and fuels marketers.

cstoredecisions.com

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CStore Decisions July 2022

Articles inside

Cold Vault Considerations

How to Grow Your Deli Program