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®
Solutions for Convenience Retailers
Choice Market’s
Omnichannnel Approach The tech-forward company is crafting a uniform experience across platforms while leading with prepared foods and investing in cutting-edge technology, including its own delivery service and vision-based autonomous checkout.
INSIDE Guide to Food Safety During COVID-19
36
Customers Bulk Up On Candy
40
The Tech Awards
52 May 2020
•
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CONTENTS May 2020
•
Number 5
•
Volume 31
CStoreDecisions ®
EDITOR’S MEMO
8 Coming Through for Customers and Employees
FRONT END
10 Front End Profile: Tiger Fuel Energizes the Market Concept 16 Quick Bites: Portrait of The Pandemic
FOODSERVICE
30 C-Stores Seek Functional Packaging, Consider Sustainability 36 Guide to Food Safety During COVID-19
CATEGORY MANAGEMENT
40 Customers Bulk Up on Candy 46 Snacking Soars As C-Stores Vie for Sales
TECHNOLOGY
18
COVER STORY 18 Choice Market’s
52 The Tech Awards 58 Considering Innovation Centers
Omnichannel Approach
The tech-forward company is crafting a uniform experience across platforms while leading with prepared foods and investing in cutting-edge technology, including its own delivery service and vision-based autonomous checkout.
OPERATIONS
60 Automating the Bottom Line
40
BACK END 66 Product Showcase 73 Ad Index 74 Industry Perspective: Implementing AI & Robotics at C-Stores SPECIAL ANNOUNCEMENT:
Due to COVID-19, the Young Executives Organization (YEO) Conference — formerly scheduled for May — will run in conjunction with the 2020 National Advisory Group (NAG) Conference set for Sept. 13-16, in Charlotte, N.C. 4
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May 2020
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the CSD Group www.cstoredecisions.com
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Convenience Store Decisions • EDITORIAL
CREATIVE SERVICES
VICE PRESIDENT, EDITOR-IN-CHIEF John Lofstock jlofstock@wtwhmedia.com
VICE PRESIDENT, CREATIVE SERVICES Mark Rook mrook@wtwhmedia.com
EXECUTIVE EDITOR Erin Del Conte edelconte@wtwhmedia.com
CREATIVE DIRECTOR Erin Canetta ecanetta@wtwhmedia.com
SENIOR EDITOR Thomas Mulloy tmulloy@wtwhmedia.com
ART DIRECTOR Matthew Claney mclaney@wtwhmedia.com
ASSOCIATE EDITOR Isabelle Gustafson igustafson@wtwhmedia.com ASSOCIATE EDITOR Marilyn Odesser-Torpey COLUMNIST David Hochman
DIRECTOR, AUDIENCE DEVELOPMENT Bruce Sprague bsprague@wtwhmedia.com
CUSTOMER SERVICE
ADVERTISING
CUSTOMER SERVICE MANAGER Stephanie Hulett shulett@wtwhmedia.com
VICE PRESIDENT, GROUP PUBLISHER Tom McIntyre tmcintyre@wtwhmedia.com
CUSTOMER SERVICE REPRESENTATIVE Jane Cooper jcooper@wtwhmedia.com
(216) 533-9186
PUBLISHER John Petersen jpetersen@wtwhmedia.com
(216) 346-8790
VICE PRESIDENT, SALES Tony Bolla tbolla@wtwhmedia.com
(773) 859-1107
REGIONAL SALES MANAGER Ashley Burk aburk@wtwhmedia.com
(737) 615-8452
REGIONAL SALES MANAGER Patrick McIntyre pmcintyre@wtwhmedia.com (216) 372-8112 REGIONAL SALES MANAGER Jake Bechtel jbechtel@wtwhmedia.com (216) 299-2281
DIGITAL MEDIA/ WEB DEVELOPMENT VICE PRESIDENT, DIGITAL MARKETING Virginia Goulding vgoulding@wtwhmedia.com DEVELOPMENT MANAGER Dave Miyares dmiyares@wtwhmedia.com SR. DIGITAL MEDIA MANAGER Pat Curran pcurran@wtwhmedia.com EVENT MARKETING SPECIALIST Olivia Zemanek ozemanek@wtwhmedia.com DIGITAL PRODUCTION MANAGER Reggie Hall rhall@wtwhmedia.com DIGITAL PRODUCTION SPECIALIST Nicole Lender nlender@wtwhmedia.com
EVENTS EVENTS MANAGER Jen Osborne josborne@wtwhmedia.com
SOFTWARE ENGINEER DJ Bozentka dbozentka@wtwhmedia.com
VIDEO SERVICES
WEBINAR COORDINATOR Halle Kirsh hkirsh@wtwhmedia.com
VIDEOGRAPHER Derek Little dlittle@wtwhmedia.com
Raymond Huff, President HJB Convenience Corp. • Lakewood, Colo. Bill Kent, President and CEO The Kent Cos. Inc. • Midland, Texas Patrick Lewis, Managing Partner Oasis Stop ‘N Go • Twin Falls, Idaho
Bill Weigel, CEO Weigel’s Inc. • Knoxville, Tenn.
NATIONAL ADVISORY GROUP (NAG) BOARD
Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo. Greg Ehrlich, President Beck Suppliers Inc. • Fremont, Ohio Derek Gaskins, Senior VP, Merchandising/Procurement Yesway • Des Moines, Iowa
FINANCE
Joe Hamza, Chief Operating Officer Nouria Energy Corp. • Worcester, Mass.
CONTROLLER Brian Korsberg bkorsberg@wtwhmedia.com
Brent Mouton, President and CEO Hit-N-Run Food Stores • Lafayette, La.
ACCOUNTS RECEIVABLE SPECIALIST Jamila Milton jmilton@wtwhmedia.com
Peter Tamburro, General Manager Clifford Fuel Co. • Marcy, N.Y. Vernon Young, President and CEO Young Oil Co. • Piedmont, Ala.
YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD
2011 - 2019
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
Jeremie Myhren, Board Chairman Road Ranger • Rockford, Ill. Garet Bishop, Chief Financial Officer BFS Cos. • Morgantown, W.Va. Ryan Faville, Director of Purchasing Stewart’s Shops Corp. • Saratoga Springs, N.Y. Caroline Filchak, Director, Wholesale Ops Clipper Petroleum • Flowery Branch, Ga. Kalen Frese, Food Service Director Warrenton Oil Inc. • Warrenton, Mo.
Copyright 2020, 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© 2020 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 •
Lisa Dell Alba, President and CEO Square One Markets • Bethlehem, Pa.
Doug Galli, Board Chairman Reid Stores Inc./Crosby’s • Brockport, N.Y.
WTWH MEDIA, LLC 1111 Superior Ave., 26th Floor, Cleveland, OH 44114 • Ph: (888) 543-2447
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EDITORIAL ADVISORY BOARD
Reilly Robinson Musser, VP, Marketing & Merchandising Robinson Oil Corp. • Santa Clara, Calif.
WEBINAR COORDINATOR Kim Dorsey kdorsey@wtwhmedia.com
EDITORIAL AND NAG 1420 Queen Anne Rd., Suite 4, Teaneck, NJ 07666 • Ph: (201) 321-5642
CStore Decisions is a three-time winner of the Neal Award, the American Business Press’s highest recognition of editorial excellence.
Robert Buhler, President and CEO Open Pantry Food Marts • Pleasant Prairie, Wis.
DIGITAL PRODUCTION/ MARKETING DESIGNER Samantha King sking@wtwhmedia.com
VIDEOGRAPHER Bradley Voyten bvoyten@wtwhmedia.com
Leading Through Innovation
May 2020
Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas Sharif Jamal, Corporate Brand Manager Chestnut Petroleum Inc. • New Paltz, N.Y. Stacey Davis, Manager of Marketing Clifford Fuel Co. Inc. • Marcy, N.Y.
cstoredecisions.com
Editor’s Memo
For any questions about this issue or suggestions for future issues, please contact me at jlofstock@wtwhmedia.com.
Coming Through for Customers and Employees This is a challenging time for all of us as our nation continues to grapple with the current events. I remain amazed at the collective selfless response of those serving on the front lines — from healthcare workers and first responders, to convenience store team members working around the clock to serve customers and keep stores well-stocked. Everyone has a part to play in successfully contributing during the COVID-19 pandemic, and the convenience store industry is once again showing its mettle as we battle this crisis. Every day, convenience store operators are stepping up to support the community, and the hard work hasn’t gone unnoticed. But there is still more work to be done, especially when it comes to supporting those team members on the front line. As the pandemic churns on, your employees may be getting somewhat settled into their strange new routines. But don’t be fooled: Even as they get acclimated to the chaos, or working in masks, their anxiety hasn’t gone away. If anything, it’s just gone underground. Leadership expert Deb Boelkes said its crises like this that cultivate great leaders. “Your team needs all the support you can muster right now,” said Boelkes, author of “How to Create a Best Place to Work Culture.” “Everyone is doing their best to adapt to the situation and keep business moving, but we still have a long way to go before things return to normal. If you lead with all the generosity and sincerity, you will empower everyone to show up each day ready to be their best.” She offered several tips to support employees and alleviate stress. These include: Be especially considerate and forgiving of those with family issues. Some people may find it difficult to work from home even under normal circumstances. But now, with most schools and daycare centers being closed, working from home can be especially challenging for those who must now also perform duties they usually pay others to perform. Be mindful that some workers may struggle with weaving their business responsibilities around additional responsibilities of homeschooling and childcare. 8
CSTORE DECISIONS •
May 2020
Allow for more flexible scheduling. For example, allow team members to take comp time at their preferred times. Rather than mandate work schedules, allow team members to work out their own work schedules with each other, if possible. “Likewise, if possible, give team members the option to work non-traditional shifts, perhaps three or four days per week, or a different number of days or hours per shift to best coordinate with their home responsibilities,” Boelkes said. Do what it takes to make team members feel appreciated. People will do anything for leaders who praise their efforts and are appreciative, especially in times of struggle. Be especially forthcoming with good news and praises for jobs well done. “Job satisfaction surveys prove again and again that simply appreciating someone’s work can be more important than any other factor in employee engagement,” Boelkes said. “The recipients of your appreciation will most likely be inspired to put forth an even greater effort to ensure they will be thanked again. That’s why the military gives ribbons and awards to soldiers. It keeps their hearts and minds in the battle, especially when the going gets tough.” Right now, none of us knows how long this crisis will last. These are the times that define us all, and I want you to know how honored I am to watch you execute at such a high level under enormous pressure as you adjust to these extraordinary circumstances. I remain proud of our industry and our people on the front lines as we continue to look out for one another along this incomprehensible journey. Please continue to take care of yourself and your loved ones.
k c o t s f o L n Joh cstoredecisions.com
For trade purposes only. ©2019 Swedish Match North America LLC
CONTACT YOUR SWEDISH MATCH REPRESENTATIVE OR CALL 800-367-3677 FOR ADDITIONAL DETAILS
FRONT END Profile
Tiger Fuel Energizes
The Market Concept From a revamped c-store concept to a new loyalty program and mobile ordering, Tiger Fuel is charging ahead despite COVID-19 challenges. Erin Del Conte • Executive Editor
Tiger Fuel is roaring into 2020, invigorating its ‘The Market’ convenience concept with a full refresh from logo and store design to uniforms. Meanwhile, the Charlottesville, Va.-based company is pouncing on new technology, upgrading its websites, introducing mobile and online ordering, and launching a new rewards program, all while upping employee wages, reducing turnover and adapting to COVID-19. A FAMILY BUSINESS A second-generation family business, Tiger Fuel began in August 1982 when Founder David Sutton acquired an Exxon-branded petroleum distributor. In 1991, he purchased a gas station and opened the first The Market location, known as Bellair Market. From the beginning, Bellair Market was ahead of its time, featuring a signature sandwich menu and gourmet to-go foods. Store Managers Pat Pitts and Hillary Horn drew on their catering backgrounds to “reimagine the taste of convenience to be fresh, local and inviting,” said Sarah Whitney, director of marketing for Tiger Fuel. “Pat founded our sandwich menu, which features local premium cheeses and Boar’s Head meats. All of our sandwiches are named after local towns or historical landmarks in this area, or people in history.” Today, Tiger Fuel operates nine The Market stores ranging from 900 square feet to 2,800 square feet. Four contain delis similar 10
CSTORE DECISIONS •
May 2020
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The Market’s sandwich menu features local premium cheeses and Boar’s Head meats. The sandwiches are named after local towns, historical landmarks in the area or people in history.
to Bellair Market — now called ‘The Market at Bellair’ — and two of the deli stores also include local fried chicken programs. Tiger Fuel also operates 10 All American Car Washes, which it recently rebranded Tiger Wash — five of which are located on The Market properties. David Sutton’s son Gordon Sutton, now the company’s president, took the helm of Tiger Fuel in 2018. Taylor Sutton, Gordon Sutton’s brother, acts as chief operating officer. Tiger Fuel’s most recent store, The Market at Ruckersville, opened in November 2018. It features the largest footprint to date at 2,800 square feet, and the first Tiger Wash to debut a 90-foot tunnel.
BRAND RECHARGE With its original The Market logo dating back to 1991, the brand enlivened its look in early 2020 with a modern logo that aspires to create a stronger connection between Tiger Fuel, The Market and Tiger Wash. “The majority of our customers did not understand that Tiger Fuel owned and operated The Market,” Whitney said. “We felt we had a lot to gain by developing that association.” cstoredecisions.com
Tiger Fuel is also revitalizing its The Market store design. The Market at Preston, which originally opened in 2018, is set to pilot the revamped design complete with a new in-store wall wrap and an updated menu board for sandwiches, plus fresh signage at the register, checkout, coffee area and car wash. A new crisp, cream backdrop with red lettering and illustrations that provide “a local, warm feel” are set to replace a dated photographic wall mount. COVID-19 has temporarily delayed the installation, but Tiger Fuel plans to push ahead as soon as possible. New coffee cups and fountain drink flavors are also on the docket.
As part of the refresh, the chain partnered with Lands’ End to introduce new frontline employee uniforms that include red, white and black moisture-wicking polos, aprons with a custom-embroidered logo, and trucker hat and visor options. Managers will don buttoneddown oxford shirts. Tiger Fuel is intentionally creating a visual distinction between frontline employees and managers through the uniform design. “We wanted our team members to feel good about the uniform that they put on every day. That’s why our market associates can select the color of their polo shirt, and our
Tiger Fuel operates nine The Market stores ranging from 900 square feet to 2,800 square feet. The chain is set to pilot a revamped design that includes new in-store wall wrap and signage. May 2020
•
CSTORE DECISIONS
11
FRONT END Profile
Introducing Four The Market convenience stores contain delis similar to the one at the original Bellair Market — now called ‘The Market at Bellair’ — and two of the deli stores also include local fried chicken programs.
The Ultimate Indulgent Dessert
managers can choose from a variety of high-end shirts and blouses. It’s another way we can help inspire a long-term career and advancement at our stores,” Whitney said. The Market focused on technology as a core component of its new concept. It partnered with Paytronix to launch a new Market Rewards app in February that will allow it to better use data to target messages to customers. In early March, it rolled out online and mobile ordering. Its The Market and Tiger Fuel websites received redesigns, and at press time the Tiger Wash website update was nearing completion.
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CORONAVIRUS RESPONSE As COVID-19 disrupted business around the U.S. and customers began to social distance, the timing of the new technology proved serendipitous. “To have online ordering available to us during the virus has been a gift, and something we’re very fortunate to have in place because a lot of customers obviously don’t want to go in the store, and we’ve been able to direct them online and offer in-store and curbside pickup,” Whitney said. In response to COVID-19, Tiger Fuel gave all employees masks and gloves, installed plexiglass shields at the registers, and added floor decals to remind customers to social distance. The chain also hired a cleaning company to do daily deep cleanings at the stores. Tiger Fuel prides itself on its commitment to philanthropy and grassroots community efforts. In the age of coronavirus, among other initiatives, the chain donated $2,000 to a fund for local restaurants, and launched Loaves for Love, a program where it sells French bread rolls for $1 to benefit the Albermarle City Meal Programs, which provides meals to children in need.
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FRONT END Profile “We’re also offering free coffee, free fountain drinks and buy-one-get-one-free sandwiches for all first responders and healthcare workers,” Whitney said.
PICKLE PEOPLE Sutton creates twice-weekly videos to update the team on the chain’s coronavirus response and to recognize team members, whom it calls ‘Pickle People.’ The moniker was inspired by restaurant owner turned motivational speaker, Bob Farrell. “Basically, there was a guest asking for extra pickles and Bob said, ‘Well just give him the pickle. We don’t need to charge 25 cents.’ We’re encouraging our team to continue to give customers ‘the pickle’ and be smiling, fresh faces for a lot of people right now,” Whitney said. In November, Tiger Fuel invested more than $300,000 in employee wages, giving 170 employees an average 11% raise as part of the chain’s goal to offer competitive wages and attract and DECISONS_Trident_HP_HiRes.pdf retain the best WB25945_INR TRADE_05.2020_CS
employees in central Virginia. By March, the chain had reduced turnover by 50%. “I think it says a lot about our company and our people that our average tenure is between eight and 10 years. For a cstore chain, that’s really unheard of,” Whitney said. The secret is valuing employees. “When employees feel like they’re valued, they offer really valuable service to others,” she said. “That’s one reason why we chose to increase wages.” While growth plans remain on the horizon, Whitney noted, “right now, in the midst of the coronavirus, our main goal and focus is the safety of our customers, our employees and our 1community.” 4/7/20 7:20 AM
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quickBites PORTRAIT OF THE PANDEMIC
BUY THE BEST OR BUST
WHEN WILL THIS END?
58% of surveyed people in both U.S. and Canada think COVID-19 will last for at least 4-6 months Source: Nielsen global survey “Understanding the Impact of COVID-19 on Consumer Behavior,” March 2020
% PAY HIGHER
% GO WITHOUT
Dairy (milk, cheese, eggs)
81%
19%
Meats/protein
80%
20%
HANDHELD HELP: SHOPPERS GOING DIGITAL DUE TO PANDEMIC
Fresh produce
77%
23%
72.1% Share of consumers who used mobile devices to help shop in stores in 2020
Non-alcoholic beverages
46%
54%
53.3% Portion of all consumers who used mobile devices to help complete
ITEM
49.6% Share of consumers who used mobile devices to help shop in stores in 2019
most recent purchases
Ready to eat/heat & eat
40%
60%
34.9% Year-over-year increase in share of consumers reporting online
Prepared deli or bakery
30%
70%
24.7% Year-over-year increase in portion of shopping for and buying food
Source: Datassential, “Covid-19 Report 13: Money Matters,” April 16, 2020
retail purchases
via digital channels
Source: PMNTS.com, “2020 Remote Payments Study,” April 2020
VIRTUALLY EMPTY SHELVES 12% of U.S. and 21% of Canadian essential product SKUs were out of stock online on April 16, 2020. Source: Euromonitor, “Coronavirus: Price and Availability Tracker,” April 17, 2020
DO YOU FEEL WARM?
In the wake of COVID-19, how comfortable would you be submitting to a temperature check at your place of work? AGE RANGE
VERY
SOMEWHAT
NOT COMFORTABLE AT ALL
25-34
75%
14%
11%
35-54
77%
14%
9%
55+
84%
10%
7%
Source: Civic Science survey, April 2020 (Some lines add up to more than 100% due to rounding.)
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CSTORE DECISIONS •
May 2020
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CSTORE DECISIONS DECISIONS •• February May 20202020 CSTORE
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Choice Market’s
Omnichannnel Approach The tech-forward company is crafting a uniform experience across platforms while leading with prepared foods and investing in cutting-edge technology, including its own delivery service and vision-based autonomous checkout. Erin Del Conte • Executive Editor
Choice Market isn’t letting a pandemic impede its plans for 2020. If anything, COVID-19 has increased consumer demand for seamless delivery of convenience products, fresh prepared foods and autonomous, contactless checkout — the chain’s top initiatives. With two locations in Denver, and two more set to debut this year, Choice Market is making a name for itself by leading with an upscale fresh menu and cutting-edge technological advancements. When its third c-store opens this June, Choice will launch its secondgeneration design and omnichannel platform that updates its mobile app and e-commerce website to allow customers to order not only prepared foods, but the c-store chain’s entire SKU selection of convenience products for delivery. cstoredecisions.com
May 2020 • CSTORE DECISIONS
19
Choice Market
With the opening of its third site, Choice is adding delivery to its white-label mobile app, adding a new in-app loyalty program and presenting a unfied interface from website to app to kiosk.
The third location will feature electric vehicle (EV) charging, a bike share, a new interior layout and a revamp of Choice’s preparedfood ordering kiosks. “One of the big things we’re working on is a full digital transformation for our app, e-commerce webChoice’s kiosk matches its app. site and in-store kiosk,” said Mike Fogarty, owner and founder of Choice Market. All are set to offer a uniform experience for customers, so shoppers receive the same experience regardless of how they shop. But Choice has an even bigger transformation up its sleeve for the opening of its fourth c-store, scheduled for the second half of 2020. It has joined forces with a strategic tech partner to pilot “full-vision self-checkout” at its fourth store, which it also plans to extend to future sites. The fully-autonomous checkout experience will be driven by artificial intelligence (AI) vision-based technology that tracks products as customers select them.
“Today’s digitally enabled customers are ordering at-home delivery more, but they’re also living and working in urban areas, so walkability and proximity are key considerations,” Fogarty said. Fogarty’s ideas about what a c-store could be were influenced by his childhood experiences growing up outside of Philadelphia, home of Wawa, which is headquarted nearby in Wawa, Pa. “They were one of the first true innovators within the c-store space with full deli and kiosk ordering, open 24 hours and a step above your traditional c-store,” Fogarty said. Fogarty was further inspired by Europe’s small-format grocery stores, specifically in Barcelona, where he lived for eight months after college. “I found myself going to them almost every day and getting three or four things at a time. I really enjoy that style of shopping and felt that there was gap here in the U.S. market,” he said. Ten years later, Fogarty saw his opportunity to innovate in the c-store market. At the time, he was working for a large consumer packaged goods company
A HYBRID MODEL
Denver-based Choice Market opened its first location in downtown Denver in October 2017 and launched its second store in 2019. The omnichannel convenience store features the operating hours, transaction times and store size of a traditional convenience store but a product selection more traditionally found at a natural grocery or fast-casual restaurant. An omnichannel approach is “quintessential to the brand,” Fogarty said. True to the Choice name, it gives customers options — whether that’s orderahead, delivery or kiosk ordering. 20
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May 2020
Choice Market features 30-40 SKUs of organic produce and raw proteins. Choice’s model uses the same products and produce it sells in stores in its foodservice offering, which reduces waste.
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McLANE’S TECHNOLOGY WILL POWER YOU FORWARD McLane understands the competitive advantage technology can provide, and we’ve made substantial investments in building technology solutions to address the specific needs of c-stores. Our hardware and software solutions help our customers improve order accuracy, reduce labor costs, optimize inventory and increase margins, just to name a few advantages. From the corporate office to the back office, McLane offers the technology solutions that help retailers buy better, sell smarter and profit more.
To learn more about McLane’s innovative technology solutions for c-stores, visit mclaneco.com/technology
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Prepared food represents 50% of Choice’s sales. The convenience store is a hybrid model that positions itself at the intersection of fast-casual restaurants, small-format natural grocery and convenience.
in the better-for-you organic space. The brand was struggling to find footing in the c-store channel with organic, natural products, and Fogarty knew he could fill the niche. Enter Choice Market, which Fogarty describes as a “hybrid model between fast-casual restaurants, smallformat natural grocery and a convenience store.” FOOD FOCUS
One key differentiator for Choice is its focus on prepared food, which represents 50% of its sales. “We’re as much a restaurant as we are a market,” Fogarty said. “We have a full scratch kitchen (where everything is produced from raw ingredients), and we’re cooking with products like organic produce and greens that are grown in an aeroponic farm about a quarter mile away,” Fogarty said. “All of our proteins are antibiotic free, hormone free. All of our breads are baked daily by local bakeries.”
Choice reduces waste by cooking with products it’s also selling in the c-store. Carrying produce has traditionally been a challenge for c-stores, he pointed out. “They can’t really get through a full case of (produce) before it spoils, whereas our model allows us to really utilize that product on both sides of the house.” The Choice menu includes breakfast items such as açaí bowls, organic oatmeal and its Colorado Quinoa bowl, which features a sunny-side-up egg, wilted chard and red chimichurri. Lunch and dinner options include sandwiches, salad bowls and smoothies. The bowls consist of a base such as quinoa or lentils, plus a protein, organic vegetable and a sauce for around $12 to $14. Choice Market’s core customer is the urban millennial. They may or may not have a car. Some may have families, but smaller families compared to the boomer generation. “People are having fewer kids,” he said. “They’re driving less. They’re making more frequent stops at the store. They’re increasingly choosing prepared foods over cooking at home just because the convenience factor is there.” He sees Choice as filling the needs of this urban millennial shopper — a niche overlooked by most cstores and even grocery stores today. To best serve its core customer, Choice recently partnered with Erik Oberholtzer, founder of California
Lunch and dinner options include sandwiches, salad bowls and smoothies. The bowls consist of a base such as quinoa or lentils, plus a protein, organic vegetable and a sauce for around $12 to $14. 22
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Listen to CStore Decisions’ podcast with Mike Fogarty, CEO of Choice Market, at cstoredecisions.com/2020/03/20/ podcast-choice-market-leads-with-innovation.
restaurant chain Tender Greens, to overhaul its menu, reducing the number of offerings and increasing the overall quality of its items. “We have a very clear food philosophy and food promise in terms of what we will and will not cook with, and just really honed in on that for our menu to be more efficient in the kitchen,” Fogarty noted. Choice is also committed to a hyper-local supply chain, which extends to its coffee business. It works with Denver-based Method Roasters. Choice’s commitment to quality extends to beverages. It offers 40 different SKUs of bottled kombucha, and has kombucha and nitro coffee on tap. It also features private-label cold-pressed juices and a range of sparkling waters, including CBD sparking water, which has been a strong seller. DESIGNING FOR TOMORROW
Choice Market’s first two locations feature a minimalist yet urban and modern design that is atypical of a traditional c-store. “It pulls a little bit from that kind of European, almost Scandinavian, style, with light woods, dark metals and concrete floors,” Fogarty said. The result is an industrial, urban and clean vibe. With its third and fourth locations, the chain is working
with a retail design firm to solidify an updated design that will be implemented across all future stores. “You’ll see a slight change in some of the future locations, but it’ll still be reminiscent of our initial location,” he said. Choice is also testing different sized formats. Its first location measured 2,500 square feet in an urban area, while its fourth site is planned for a high-density, residential neighborhood and set to feature a larger footprint. Fogarty anticipates that as the chain grows, its stores will measure between 2,500 and 4,000 square feet. “You lose the convenience factor as you get bigger,” he noted. The c-stores feature restaurant-style seating, a section with made-from-scratch, grab-and-go foods, a soup station, an empanada station and an entire CBD section. They also feature 30-40 SKUs of organic produce and raw proteins, such as antibiotic-free chicken breasts. “We’re kind of crossing over multiple models and definitely have some sections that you wouldn’t find at
While Choice Market’s seating area is closed during COVID-19, the cstores normally feature restaurant-style seating. As it launches electric vehicle charging, it’s designing a space where customers want to hang out and enjoy made-from-scratch, grab-and-go foods or Wi-Fi. 24
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Choice Market
Choice is committed to a hyper-local supply chain and providing healthy, natural and organic items.
a regular c-store,” Fogarty said. As the chain rolls out EV charging with the launch of its third site, it’s considering how that will change the customer’s shopping needs. “In the future, it’s going to take 20-30 minutes to fully charge a car. So you have to offer an experience,” Fogarty said. “You have to offer a product selection and design that people want to hang out in, either grabbing a meal or some groceries, or hanging out on Wi-Fi.” With the opening of its third site, Choice will also be introducing its own fleet of electric vehicles that will be charged on-site. Choice employees will use the vehicles to deliver food and groceries to customers,
as Choice adds delivery to its white-label mobile app and commits to handling the last mile in-house. As it continues its goal of offering one unified experience managed by Choice, it will also include real-time GPS updates for customers. While Choice already offers online ordering for pickup as well as delivery using third-party vendors, it currently uses “all different systems, and it’s very disparate,” Fogarty said. While Choice will continue to use some third-party delivery services, Fogarty pointed out that such services were built primarily for restaurants. “We’re carrying 3,000-4,000 SKUs, so it’s not necessarily the best fit,” he said. Choice is also rolling out a new in-app loyalty
COVID-19 Response Choice Market has been quick to respond to ensure the safety of customers and employees during COVID-19, while continuing to adapt to best meet the needs of its shoppers. In March, as COVID-19 caused the closure of all on-premise dining in Denver, Choice closed its seating areas, reduced store hours and began offering contactless curbside pickup via online ordering as well as contactless delivery through its third-party vendors. It also offered discounts on delivery to help offset the cost for customers. Choice also updated sanitation efforts, cleaning all high-contact surfaces every 15 minutes, mandating that all staff members wear gloves and reducing to 10 the number of customers permitted to enter the store at one time. It also updated its selection with essential sup26
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plies like paper products, dairy and dry goods, among others. Choice is offering a 20% discount to any employee in the service industry as well as first responders and medical personnel. The company also committed to offering paid leave to employees impacted by the virus. In early April, Choice announced it was giving back to its community by supporting Colorado Restaurant Response, which helps keep restaurant workers employed by preparing and distributing meals to unemployed service workers and food insecure families. “We know these are difficult times for everyone, which is why we are committed to making sure our Denver community has what they need to ride this out at home,” said Mike Fogarty, founder and CEO of Choice Market.
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Choice Market
Denver-based Choice Market operates two c-stores and is set to open its third location in June and a fourth location later this year that will feature autonomous checkout using vision-based technology.
program. The points-based program awards one point for every dollar spent. Customers can use the points to purchase rewards — such as $5 off for every $100 spent. Loyalty customers will receive free delivery through the app for the first month of membership and free coffee on their birthday. “We see an opportunity to really reduce our fees, to improve customer loyalty and retention, to increase the data that we have, and ultimately provide a better experience and control that experience a little bit more,” Fogarty said. “And most importantly, offer the entire store for delivery, including alcohol.” “We will be the first retailer to offer high-quality groceries, prepared food, home and health and alcohol all in one convenient transaction (for delivery), which we think is really going to be a game changer,” he added.
Choice’s vision for the future includes a range of micro markets, vending machines and fully autonomous stores. 28
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“At the end of the day, we’re not in the business of just investing in technology just to pump up valuations or to be like a novelty type thing,” Fogarty said. “It has to have a real use case and solve a real problem.” That’s been a big consideration in deciding to introduce frictionless checkout to its fourth site when it opens in the back half of 2020. A lot of Choice products don’t have a UPC or bar codes, including the chain’s bagels, produce, empanadas and coffee. For Choice, allowing customers to check in once, and then have the cameras and systems handle the rest, will make the experience more convenient for customers and help alleviate the UPC challenge for Choice, as well. As Choice continues to plan for the future, it is viewing the c-store landscape “holistically,” which includes considering how mobility is going to change over the next five to 10 years. Its ultimate vision for the future includes a range of micro markets, vending machines and fully autonomous stores. “The most important thing in people’s lives is their time,” Fogarty said. “If we can continue to reduce that friction, reduce that stress, we will; and so certainly frictionless is on our roadmap.” Fogarty sees Choice continuing to offer a “physical retail anchor” that supports last-mile distribution for delivery and pickup, and meeting customers where they’re at, whether that’s online, in-app or in a micromarket setting. “I think the brand new platform is going to be truly revolutionary, at least for our customers, allowing them to have one single experience, whether it be on the app or on the website or on our kiosks and tied to one single loyalty program,” Fogarty said. “We’re excited to continue to grow and offer our customers new, convenient ways to access fresh, awesome food.” CSD
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Foodservice | Packaging
C-STORES SEEK
FUNCTIONAL PACKAGING, CONSIDER SUSTAINABILITY
As customers look to curbside pickup and delivery amid COVID-19, retailers are taking a closer look at their packaging, keeping safety and practicality at top of mind while working toward sustainable options. Isabelle Gustafson • Associate Editor
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Foodservice | Packaging
C-stores are looking to make foodservice packaging more sustainable, yet still affordable, functional and safe, as customers opt for curbside pickup and delivery during the coronavirus pandemic. While many things have taken a backseat to the current pandemic, environmental sustainability is important to young consumers. And 44% of U.S. millennials say one of the best ways for a brand or company to show that it represents their personal values is by following environmentally friendly practices, according to market intelligence agency Mintel’s “2020 Global Packaging Trends” report. Although Spicewood, Texas-based Kwik Chek’s customers have not been especially vocal about sustainable packaging, CEO Kevin Smartt said it’s a priority for the company, and it’s only a matter of time before it’s the norm. “I think it’s coming,” he said, “so we’re trying to stay a little bit ahead of the curve on that if we can.” He said Kwik Chek has been researching environmentally friendly packaging, experimenting with different products to find the best option for both the business and its customers. “We’re trying to figure out what items in our packaging we can convert, what makes sense economically to us and what means the most to the consumer,” said Smartt. “I think it’s a frustrating consumer experience if you get something that is sustainable, but it’s not a
good package or a good product. That has been our challenge — a quality product that’s economical and that we can afford to implement into the system.” Des Moines, Iowa-based Kum & Go recently introduced environmentally friendly and compostable packaging, including salad bowls, lids and cutlery made with renewable resources, as well as Biodegradable Products Institute (BPI) certified straws and birch wood stir sticks. The move stems from the chain’s “Four Pillars of Social Responsibility,” outlined in its “Corporate Social Responsibility” report, which includes implementing sustainable practices to reduce the company’s impact on the environment. “Kum & Go has a history of committing to improving the communities we serve,” said Kum & Go Director of Communications Ariel Rubin. “Our leadership and food teams pushed for this change to continue that mission.” Overall, Kum & Go’s priority when sourcing this new packaging was improving the customer experience — including appearance, performance and function on the go, the latter of which is especially important amid COVID-19.
During the COVID-19 pandemic especially, health and safety are top of mind. But Kwik Chek CEO Kevin Smartt said the chain is also working to stay ahead of the curve by researching environmentally friendly packaging, weighing cost and quality to determine the best option. 32
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Foodservice | Packaging
fast facts: • 44% of millennials said brands can show they share their personal values by being environmentally friendly. • There’s no evidence COVID-19 transmission is tied to food, per the CDC, but secure packaging can communicate safety to customers.
ADAPTING TO A NEW NORMAL
As part of a broader effort to give customers more options during the COVID-19 pandemic, Kum & Go introduced curbside pickup in the greater Des Moines area, which will eventually roll out to all of its 400 stores across 11 states. Kwik Chek also offers curbside pickup and, for the past year, delivery through DoorDash and other regional services. Since the COVID-19 pandemic began, the company added delivery service to additional areas, which Smartt said has helped increase food sales as fuel demand and overall inside sales slow. While he recognizes the cost barrier for retailers, Smartt believes it will prove necessary for c-stores to
Kum & Go recently introduced environmentally friendly and compostable packaging, including salad bowls, lids, cutlery and more. 34
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compete with quick-service restaurants (QSRs), especially in the evening daypart. “I think you’re going to have to find a way to offer that service,” he said. “Historically, convenience stores have not done as well in the evening daypart as our competitors in the QSR world. So we’re going to have to find a way to do that and to negotiate as favorable of terms as possible.” Kwik Chek has also seen an increase in familystyle takeout orders since the pandemic began and recently debuted Family Kwik Packs, available in the cold grab-and-go section, and Family Meal Deals — all under $20 for a family of four. Among the offers are a Pizza Meal Deal, which is $19.99 for two 14-inch two-topping pizzas and a large salad, and a Taco Family Deal for breakfast, which includes six original tacos for $8.99 or 12 for $13.99, or for lunch — six original tacos and two 16-ounce sides for $13.99 or 12 original tacos for $19.99. From pizza to chicken to tacos and more, during COVID-19, Kwik Chek’s biggest considerations with packaging are functionality and safety, said Smartt. While there is “no evidence to support transmission of COVID-19 associated with food,” according to the Centers for Disease Control and Prevention (CDC), secure packaging is one way to communicate safety to wary customers. “Whatever we’re offering to our customers, the product is completely wrapped or sealed,” said Smartt. “We are trying to keep health and safety at the front of our minds to make sure we’re offering products in packages that we feel keeps the food clean and safe.” CSD
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Foodservice Column | Food Safety
Guide to Food Safety During COVID-19 Dr. Nancy Caldarola addresses food safety and other c-store considerations during the COVID-19 pandemic. Isabelle Gustafson • Associate Editor
CStore Decisions recently spoke with Dr. Nancy Caldarola, president of The Food Training Group, to learn more about what c-stores can do to keep employees and customers safe during the COVID-19 pandemic. First and foremost, Caldarola advised retailers to follow guidelines of the United States Department of Agriculture (USDA) and the Board of Health. And as new ideas and regulations surrounding COVID-19 emerge daily, pay close attention to the latest updates for your area. While the food safety rules in place today are solid in terms of preventing the spread of COVID-19, the problem, Caldarola said, is that not everyone follows them. “If we’re doing food safely in the store, we don’t have to worry about food,” she said. “But there are a lot of things to think about because (COVID-19) is so different, it’s not like anything we’ve seen before. The business of doing business as usual, we can’t do.” Fortunately, there are some things we can do: HAND-WASHING
Hand-washing has always been a vital step in food safety. Cited as one of the most effective 36
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ways to stop the spread of COVID-19, its importance can’t be overstated, and employees must be trained on proper hand-washing techniques and protocols. “We want to make sure everybody is well aware that, if you handle food, you have to wash your hands before you touch the food and after,” said Caldarola. In states or stores where gloves are required when handling food, hand-washing is imperative before putting gloves on and after removing them. Recent USDA research conducted in test kitchens found that participants did not even attempt to wash their hands 70-75% of the time when it was required. When they did, many participants did not scrub their hands with soap and water for at least 20 seconds. Other errors included not wetting their hands with water before applying soap and not drying their hands with a clean or one-use towel.
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Foodservice Column | Food Safety
During the COVID-19 pandemic, the Centers for Disease Control and Prevention (CDC) also advises washing hands after touching an item or surface in a public place that may be frequently touched by other people, as well as before touching one’s eyes, nose or mouth. FOOD OFFER
During COVID-19, Caldarola suggested taking a close look at which products you’re offering. For example, fruits with edible peels, like apples, might pose a risk. Self-serve foodservice has also been a point of consideration, with c-stores in different areas halting roller grill and self-serve coffee in accordance with local regulations or out of caution. “A food offer has got to be looked at a little closer than we have in the past,” said Caldarola. “(When it comes to self-service food), you can’t control what’s happening over the counter. Not everybody’s going to be as careful, and we know that.” But customers can still have their foodservice favorites if employees serve them instead. Caldarola also recommended using floor stickers six feet apart to encourage social distancing and allowing only a certain number of people in the store at any given time.
Dr. Nancy Caldarola, president of The Food Training Group 38
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“That’s one of the biggest things people are really nervous about,” she said. “You may have to have an extra person that’s controlling the door, so you don’t let too many people in.” CLEANING CONSIDERATIONS
Stores must also be cleaned and sanitized more frequently, Caldarola said. “They should be constantly doing any kind of sanitation that they can,” she said. “Everything has got to be clean. Everything. All the time.” To ensure employees are not infected by COVID-19, Caldarola suggested taking employees’ temperatures at the start of each shift. If an employee tests positive, the entire store must be cleaned thoroughly after they leave, and employees who have come in contact with them should self-quarantine for the recommended 14 days. In a c-store environment, “a typical employee isn’t in one area; they walk around the whole store. So that’s going to take a lot of work,” she said. Caldarola added that providing paid sick leave is another way to discourage infected employees from coming to work and spreading the virus, or any kind of illness.
PROTECTIVE EQUIPMENT
Personal protective equipment may also be effective in limiting the spread of the virus, such as gloves, face masks and shields at the register. On April 3, the CDC adjusted its recommendations to include that Americans wear non-medical cloth face coverings when in public to prevent the spread of the virus by asymptomatic carriers. On April 8, New Jersey began requiring all employees and customers at essential businesses to wear face coverings. Workers are also required to wear gloves if they’re interacting with customers. Other cities and counties have enacted similar mandates. Check the laws or guidance set by your governor and other local officials. Required or not, an additional benefit of face masks and other protective gear is that they communicate to customers that you’re doing everything possible to keep them safe, said Caldarola. And even if you follow all protcols to a T, even if you do everything right, customers won’t know unless you tell them. “You have to post the signage,” said Caldarola. “Signage is very important. Make it a point to have signage in place that is talking about what is being done.” CSD
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Category Management | Candy
CUSTOMERS
Bulk Up on Candy
Good times or bad, consumers show they can’t resist a little treat, big bags and king-size bars. Thomas Mulloy • Senior Editor
Americans enjoy chocolate and non-chocolate candy two to three times per week, averaging just 40 calories per day, according to the National Confectioners Association’s report “Sweet Insights: State of Treating 2020.” Confectionery remains a strong and powerful category across all retail channels, with sales above $37 billion annually. 40
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Category Management | Candy
“
I am just trying to find different merchandising ways for candy, and how we can engage more incremental sales of candy on my sales floor. Because right now candy is obviously the No. 1 impulse commodity in the store.
And when the consumer sweet tooth calls, it orders up the large portion. That goes double, as many customers are self-quarantining in their homes during the pandemic. The trend for bigger, share-size bags is stronger than ever — with packaging labels touting progressively larger portions running from “share” to “family” to “party” size bags. Retailers are responding to the changing needs. BIGGER IS BETTER
“With candy, one thing I’m testing out right now is larger take-home packages in c-store — the large Mars and Hershey’s take-home bags,” said Jon Manuyag, director of marketing for Portland, Ore.-based Plaid Pantry’s 108 stores. “I’m going to be adding, actually, several SKUs into this next year.”
“
– Jon Manuyag, director of marketing, Plaid Pantry
Ray Johnson, operations manager with Speedee Mart, a 23-store chain operating in Nevada’s Las Vegas Valley, acknowledged that the big bags get noticed. “You have all these stand-up packages that look like billboards that really show the product off,” he said, noting that retailers need to be conscious of space considerations and figure where the larger bags will fit within a store’s planogram. Manuyag agreed, citing strategic placement in stores and focusing on good merchandising. He understands well the challenge of space constraints within the c-store. Before joining Plaid Pantry back in December 2019, he spent 20 years in merchandising with the Fred Meyer division of Kroger, where display space is plentiful. “I come from a world where I have 20-, 30-, 40-foot runs of candy, and here it’s just 12-16 feet, and the assortment just needs to work that much harder,” he said. March IRI AllScan data bears that out. Early in the month, convenience store candy sales trends matched those of big-box grocery, club and dollar stores in small increases over last year. But as the COVID-19 pandemic continued, shoppers stocking up on staples gave larger stores an advantage. Still, despite the pandemic, candy consumers are buying. For the four weeks ending
Candy trends show that consumers are treating themselves with larger bags, despite the COVID-19 pandemic, and possibly as a reward for home-bound sheltering. 42
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Category Management | Candy
March 22, chocolate (-0.2%) and non-chocolate (-0.7%) candy sales were flat, with very slight dips, according to the IRI data. Speedee Mart’s Johnson has a simple theory on why. “I think people are treating themselves,” Johnson offered, noting that chocolate is one of his top two best-selling food items right now. Which is not really a surprise — chocolate is the longtime candy king. Customers are also treating themselves by sizing up when it comes to candy bar purchases. “King-size by far,” said Johnson, when asked about customers’ candy size preferences. He noted while Speedee Mart has consistently focused on moving the king-size over the regular, the bigger bar is performing unusually well. “We’re not doing anything that we didn’t always do,” Johnson said. “Two-for promos and stuff. So, the things we do, we’ve always done, but you can tell that people have switched to the larger size.” GUM & MINTS
Gum sales are in tune with other candy — the bigger the better. Retailers reported that the bottle packages move well. And Johnson said his customers are buying even bigger. “What’s doing even better is the big package,” he said, “like the 35-count and the 50-count that still looks like a bag of gum, but it’s really big, and it does better than the bottle one for me.”
fast facts: • When it comes to candy or gum, consumers are choosing bigger packaging. • Americans enjoy candy two to three times per week. • Consumers see candy as a reward.
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Plaid Pantry’s customers are doing the same, and Manuyag is happy to stock it. “Like the tub of gum and the large-count size gums, which I’m actually bringing in a lot more assortment coming into this update,” he said of his ordering plans. “So we’re adding a lot more largepackage gum bases into the assortment because we notice that our customers are buying a lot more of that stuff.” Sales are pretty steady as far as mints go. Manuyag said the strategy for mints is the same for other candy — get the customer to notice the product. “I am just trying to find different merchandising ways for candy, and how we can engage more incremental sales of candy on my sales floor,” he said. “Because right now candy is obviously the No. 1 impulse commodity in the store.” Manuyag’s philosophy: For customers to buy it, they need to see it. And Manuyag has a fairly simple formula to achieve that. “So, deeper promos,” he said. “Looking at more added value, value promotions of merchandising in stores, that value price point to help our customers to interact with candy.” CSD
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Category Management | Snacks
Snacking Soars as C-Stores Vie for Sales
Whether it’s salty, sweet or meat, customers won’t pass up a snack treat, but c-stores face increased competition from other channels as consumers decrease trips amid the pandemic. Thomas Mulloy • Senior Editor
Snack sales at c-stores aren’t immune to fluctuations as COVID-19 forces customers to stay home. While some c-store retailers reported a surge in sales as shoppers raced to stock up ahead of self-quarantine measures, the numbers show the majority of those sales increases were captured by other channels — like supermarkets — where customers did bulk shopping. Still, c-store retailers, coming off a strong 2019 for snacks, are confident the foot traffic dip caused by the virus will be temporary and are positioning themselves to reap the benefits of the rebound. 46
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Category Management | Snacks
March Salty Snacks Sales at C-Stores vs. Multi-Outlet
graph snacks shows the sales weekly sales percent change at c-stores marchThis salty at C-Stores vs. Multi-outlet and multi-outlet (MULO) compared to one year ago.
This graph shows the weekly sales percent change at c-stores and multi-outlet numbers MULO saw gains imply as shoppers (MULO)The compared to imply one year ago. Thesales numbers MULO saw sales gains stocked up ahead of stay-at-home mandates. as shoppers stocked up ahead of stay-at-home mandates.
Source: IRI, “Consumers Provide Pessimistic View of Coming Months,” April 9, 2020
Source: IRI, “Consumers Provide Pessimistic View of Coming Months,” April 9, 2020.
In the four weeks ending March 22, 2020, research firm IRI’s convenience all-scan data found dollar sales for dried meat snacks dipped 2.3%, overall salty snacks fell 4% and snack bars/granola bars declined 12.2% at c-stores. But robust 2019 sales leading into the pandemic prove customers are snacking more across the salty, sweet and meat snack segments. That trend remains evident across IRI’s multi-outlet (MULO) data that spans food/grocery, drug, mass merchandisers, Walmart, club, dollar and Military DECA (commissaries). For example, the weeks of March 15 and March 22 each saw 60% boosts in salty snack sales over last year’s numbers, according to IRI all-scan MULO data. In other words, the demand for snacks remains as high as ever, and opportunity exists for c-stores to recapture those sales. C-store retailers are continuing to roll out new snack options and expand their category sets to best appeal to customers as a top destination for snack sales amid the pandemic. SALTY TRENDS
When it comes to what salty snacks shoppers are buying at c-stores, many are sticking close to the traditional snack king: the potato chip. “We’ve always sold a lot of chips,” said Dyson Williams, director of merchandising for Dandy Mini Marts’ 65 stores in New York and Pennsylvania. 48
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Maybe that’s because snack lovers know Dandy will have what they like. Williams said that Dandy goes out of its way to make sure that, when that consumer is looking for a favorite chip, his stores have it. “We actually deal with seven different chip companies,” Williams said. “We’re probably one of the only cstores in the industry that deals with that many different chip companies because we believe in a variety, and we want to have everybody’s brand of chips if we can.” That’s a smart move. According to IRI, U.S. c-store all scan data for the 52 weeks ending Dec. 29, 2019, potato chips showed solid dollar sales growth at 4%, contributing to a $5.88 billion salty snack category that rose a tasty 6% in 2019. The rise, though, was a team effort. Cheese snack dollar sales rose 12.2%; tortilla chips were up 9.9%; pretzels rose 5.5%; and non-tortilla corn snacks were up 3.7%. MEATY METRICS
Meanwhile, meat snacks continue to hold strong appeal for customers. IRI’s data showed that jerky simmered through 2019 at a 2% growth rate. The category as a whole, though, rose more than double that at 4.7%, driven by consumers’ willingness to try some less traditional meat snack products. Those non-jerky snacks registered a nearly 7% dollar spend increase last year. The segment has performed so reliably that Dandy Mini Marts is in the process of expanding its meat snacks display. Williams explained that, without the new display space, Dandy’s typical set has a three-foot end
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Category Management | Snacks
fast facts:
cap with beef sticks up top and other jerky bags below. The added display will improve that significantly. “And then we have an additional four-foot section of the big bags of jerky,” he said. “We can have anywhere between the snack-size bag that you get for a couple of bucks to the huge ones that we sell for almost $20.” Williams said that the c-store chain began the project nearly three years ago and has implemented the added space in nearly 75% of the stores. That large bag he mentioned is gaining in popularity, perhaps because buying bigger can mean saving more. “You’re getting significantly more product; it’s not even close,” said Hit-n-Run Food Stores President Brent Mouton, with 11 stores in Louisiana. He said that one reason is the ability to seal the larger bag and graze for longer periods throughout the day. “We’re selling a 10-ounce bag of beef jerky, you know what I mean?” he said, referring to the bag’s hefty haul. “(They) crack it open, pull a few pieces out and reseal it — and they’re good to go.” Williams said once consumers get past the price point on the larger meat snacks bag, they realize they’re getting more for their money. “You’re going to spend 20 bucks on jerky; that’s a big spend,” he said. “It’s a better value, so the people that are purchasing a lot of jerky say, ‘I should buy the big one.’” SWEET SNACK SENSATIONS
Sweet snacks are holding their own, too. Snack and granola bars remained fairly flat for the year, down 2.1% for 2019, according the IRI data. But in his stores, Mouton has seen a progressive, long-term upward trend in sales of healthy alternative snacks and similar, energy-type bars. “Over the last probably three or four years, we’ve doubled the size of that category,” he said. “You’ve got
“
We actually deal with seven different chip companies. We’re probably one of the only convenience stores in the industry that deals with that many different chip companies because we believe in a variety, and we want to have everybody’s brand of chips if we can.
50
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• In March, multi-outlet channels saw snack sales skyrocket as c-store snack sales dipped. • Bigger bags are appealing to meat snackers.
new stuff coming out just about every month. Most of the growth has been with the protein bars, and we love it because it’s typically a high basket ring, and there’s very good margins. That’s a category that we make 40-45% in.” Mouton said he has also noticed the continued effort by manufacturers across the snacking spectrum to shake things up a bit. “They’re rolling out new products,” said Mouton. “They’re cranking up the marketing and changing the packaging.” He’s mostly noticed a number of efforts at co-branding to synergize with or piggyback on the success of another product’s strong reputation. While it’s important to have enough snack variety across consumer demographics, Williams said that, for Dandy, the blue-collar worker is snacking’s bread and butter. Early morning construction workers and all-day truck drivers like their chips and soda. “That’s a lot of our customer base, so we focus on the stuff that they want to buy,” said Williams. CSD
“
– Dyson Williams, director of merchandising, Dandy Mini Marts
• Salty snack sales climbed 6%, and meat snacks sales rose 4.7% at c-stores in 2019, according to IRI.
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Technology | Tech Innovator Awards
HOW TECHNOLOGY IS DRIVING
JACKSONS AND YESWAY
Retail technology plays an important role in attracting shoppers and communicating a chain’s overall brand message. CStore Decisions is recognizing two c-store chains raising the bar on their technology investments. John Lofstock • Editor-in-Chief
When it comes to retail technology, there are many things convenience store operators have to master, from the back office to accounting systems to loyalty programs, and so many other systems in between. This is why having in-house technology experts is a fundamental difference between top-quartile chains and the rest of the pack. CStore Decisions is proud to recognize two technology trailblazers with our first ever Technology Innovator Awards. The 2020 award winners are Patrick Abernathy, director of information technology (IT) for Jacksons Food Stores Inc., and Doug New, chief technology officer for Yesway. 52
CSTORE DECISIONS •
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Technology | Tech Innovator Awards
Left, Jacksons Let’s Go Rewards allows customers to get coupons, discounts and star rewards on purchases. Above, Patrick Abernathy, director of information technology (IT) for Jacksons Food Stores, is ensuring stores operate to standards throughout the integration with the ExtraMile brand.
In an industry where many chains have made significant investments in information systems manpower, Abernathy and New and have distinguished themselves as leaders. “We are a small industry when you consider vast amount of innovation going on across all retail channels, but we are a very complex industry,” Abernathy said. “So it may take us a little longer to invest in things like self-checkout, apps and mobile ordering, but when we do, we tend to be very successful.” Jacksons is a rapidly growing company. The Boise, Idaho-based chain purchased a 50% interest in the ExtraMile brand from Chevron in February 2018. Jacksons currently operates more than 260 stores in Idaho, Nevada, Utah, Arizona, Oregon and Washington. The company is converting its Chevron-branded locations into ExtraMile stores. Its Shell stores, as with the Chevron stores, will continue to operate under the Jacksons umbrella. As the chain evolves, it’s Abernathy’s job to ensure stores are operating efficiently and communicating effectively, regardless of the brand. To that end, he is a champion of developing standards so that all of the various software and hardware components used across the industry can be seamlessly integrated. For example, he currently serves on committees for Connexus, PDI, Verifone and KickBack Points to make sure retailers’ needs are heard and understood. “This is such a great time for the convenience store industry with an opportunity to learn more about our customers through collecting data,” 54
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Abernathy said. “As we learn more about their needs and how they shop, we will be able to provide them endless opportunities. And if we have learned anything from recent experiences, it’s to always be ready for the unexpected.” NEW EXPERIENCES
Like Jacksons, Yesway is a rapidly growing chain, most recently with its acquisition of Allsup’s, which was completed in late 2019. The deal included 304 stores and boosted Yesway’s portfolio to nearly 500 stores across the Midwest, South Central and Southwest regions of the U.S.
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Technology | Tech Innovator Awards
Yesway partnered with Paytronix to build the new Yesway Rewards Program in June 2017, which rewards customers with a unique currency called “Smiles” for each dollar spent. Doug New (pictured below), chief technology officer, is now leading the integration of the recently acquired Allsup’s chain, implementing standard technology solutions in a way that is consistent with Yesway’s platform.
The difficult job of integrating all these new stores falls on New, who has been with the company for about four years. Prior to joining Yesway, New spent time at Tedeschi Food Shops in Massachusetts. “We are currently taking a decidedly different approach to integrating Allsup’s,” New said. “Allsup’s developed a complex but effective technology solution for its stores and back office over the years, which we believe has contributed greatly to its success. Because of this, we purposefully took several months to analyze and understand Allsup’s existing technology infrastructure. We wanted to be certain we knew it well enough to ensure we could plan and implement our standard technological solution for these stores, one that is consistent with Yesway’s platform and one that also provides a flexible and scalable platform for our internal business partners to best serve our customers, support our frontline store personnel and provide a consistent set of metrics, reporting and analytics tools across the chain.” The integration effort should be completed by the end of the year. While New called acquiring customer data 56
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“the holy grail” for merchants who want to build and grow a loyal customer base, he said the biggest challenge for the industry is keeping up with the rapid pace of technological change. “From an industry perspective, convenience retailers are playing a continual game of ‘catch up’ with consumers, who have come to expect convenience in all of their interactions with retailers and service providers,” New said. Yesway belives this is changing. “We are seeing increasing encroachment and disruption in our industry from delivery services and from online and big-box retailers, drug stores and dollar stores that are designing small-concept stores to compete directly with our stores,” New said. “Many of these competitors are leveraging artificial intelligence, robotics, big data and other technologies to drive their decision-making and service offerings. As an industry, and as individual retailers, we need to understand how to leverage these technologies to further enhance our standing with our customers and stay relevant.” CSD
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Technology Column | Innovation Labs
CONSIDERING AN
INNOVATION CENTER
In the age of disruption, creating a hub for testing new innovations can help c-store retailers adapt more quickly to a world in flux. David Hochman • Contributing Editor
Top quartile c-store retailers have adapted their offering and execution to meet changing customer needs, but the threat of disruption grows louder still. While most retailers have been grappling with how to transform themselves amid digital disruption for some time, the COVID-19 pandemic introduced new and unexpected challenges. Still, many c-store chains are responding with solutions that will enable them to maintain and even increase market share — from rolling out curbside pickup to offering delivery. Some chains were better positioned to respond in a nimble way because they had innovation hubs where they had been testing solutions. INNOVATOR’S DILEMMA
As Harvard Business School professor Clayton Christensen famously argued in his 1997 book, “The Innovator’s Dilemma,” even companies that reach a state of consistently near-perfect execution could easily wind up left in the dust, and not by the store across the street, but by an emerging force or trend that pulls in the competitor(s) from outside the industry and renders even the strongest players obsolete, seemingly overnight. The “innovator’s dilemma” is described as “doing the right thing is the wrong thing.” By focusing on the ‘here and now’ with regards to what customers want — and what they’re great at delivering — without constant innovation and, when necessary, reinvention, they risk being disrupted out of business. But rolling out innovations across an entire retail chain can be risky. 58
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“Having a live environment to test the idea, its rollout and the customer reaction first can be invaluable to increasing the speed and lowering the risk of introducing innovations to the retail environment,” said Garrett Law, co-founder of consulting firm Attention Span Media. INNOVATION LABS
Sheetz, on Oct. 1, 2019, opened its technology and innovation hub in Pittsburgh. The center is home to Sheetz’s growing innovation team and technology development specialists and serves as a meeting place for collaboration. Sheetz also devotes space for a tech incubator at the Sheetz Operations Support Center in Claysburg. Specific activities include developing, testing and implementing products and services that “will one day appear on Sheetz shelves across its stores,” according to the company.
As COVID-19 escalated, Sheetz was quick to adapt. It rolled out its ‘SHcan & Go!’ feature in its mobile app for self-checkout and announced a partnership with delivery company Grubhub. 7‑Eleven, also known for its innovations, in March 2019 introduced its “lab store,” in Dallas, which it described as “an experiential testing ground, where customers can try and buy the retailer’s latest innovations in a revolutionary new store format.” And, in Media, Pa., Wawa operates the Wawa Innovation Center, where it runs menu experiments and tests new technologies that impact the company’s processes. Other retailers use test kitchens or test stores, too. But a word of caution before embarking on your own: Because innovation groups are often physically independent from the rest of the chain, “it’s crucial to make sure they are able to articulate what they learn and properly socialize it throughout the company, or else the risk is that whatever they learn will be lost in bureaucracy or misapplied,” advised Law. David Hochman is the owner of DJH Marketing Communications Inc. He can be reached at djhochman@djhmarcom.com.
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Operations | F a c i l i t y A u t o m a t i o n
Automating
a Better
Bottom Line 60
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Tech solutions can maximize equipment investments, ease operations and improve customer experience. Thomas Mulloy • Senior Editor
Energy efficiency. Equipment monitoring. Inventory and price optimization. Facility automation. Touchless pay points. The list of technology solutions available to the modern c-store can seem endless. But with careful planning and vendor assistance, convenience stores can corral that data sent by multiple touchpoints into one simple place accessible at a smartphone holder’s fingertips. “You can always tap into the automated systems,” said Dan Soltis, vice president of real estate with CIMA Developers, the property division of The PRIDE Stores, which operates 16 locations in the Chicagoland area. With the tap of a screen, The PRIDE Stores can view and assess the systems that control the lighting, security cameras, refrigeration, fuel pumps, HVAC and even the carbonated beverage machine. While this accessibility greatly improves operating efficiency, knowing where to begin is a challenge in and of itself. Soltis advised first assessing the feasibility of each project, figuring the return on investment (ROI) and identifying the easiest or most efficient areas to start automating. “I think the lighting’s probably the easiest way to make an impact,” Soltis said. “The LED technology is still the best technology out there.” Soltis noted that the lighting industry is now innovating with form and function in its designs. That came in handy when zoning for one of The PRIDE Stores sites required what’s called dark sky compliance. cstoredecisions.com
May 2020 •
CSTORE DECISIONS
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Operations | F a c i l i t y A u t o m a t i o n
“We had to design the site to make sure it controlled “We had to design the site to make sure it controlled the overspill — the uplight, the backlight, the glare — all of that,” Soltis said. Soltis added the vendors he’s dealt with have been extremely helpful in crunching the numbers. “I know in the lighting industry, in the solar industry and in some of the automated systems that run the entire cstore, they do have worksheets that do help you identify your initial investment and then your returns,” he said.
fast facts: • Tech vendors can help figure the ROI on new projects. • Don’t overlook tech-averse customers. • Maximize vendor/municipal rebates and tax benefits.
FOCUS ON THE CUSTOMER
Still, all of the tech solutions won’t benefit an operation unless it prioritizes its customers. As much as millennials and Gen-Xers love high tech, not all consumers are as savvy. “Some customers never want to order digitally,” said Art Sebastian, vice president of digital experience for Casey’s General Stores. “They want to continue to do telephone orders, just like they do at Domino’s or Pizza Hut or wherever.” Casey’s, famous for its pizza, operates 2,200 stores in 16 Midwestern states, which also makes it the nation’s fifth largest pizza chain. It introduced an automated telephone ordering system to complement its digital online and app-based ordering tools. There’s a clear upside for the store, he noted. Handwritten phone orders would invariably result in mistakes, with busy workers forgetting to add another topping or overlooking to charge for that extra topping. Now, the system recognizes caller phone numbers and presents an order history that is easily repeated or modified. It’s also faster. “So, every phone call, that’s three minutes of labor I’m wasting on the phone,” said Sebastian. “This is now automating it, moving it significantly faster. So we’re saving time, and that time I can turn back to making better quality pizzas.” That adds up to less expense and more revenue. LIFTING THE BOTTOM LINE
Smaller chains are usually running “lean and mean,” Soltis pointed out. “So any way to use innovation to help folks work more efficiently is always going to be a benefit to the bottom line, so that’s always going to be a big focus.” Tech can help squeeze the most out of your investments in large equipment that performs many essential tasks throughout a store. The PRIDE Stores, Soltis noted, used to have a cumbersome repair process based on paper lists submitted by managers via fax machine. 62
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Now, he said, the company’s new digital app-based system has cleaned that up and streamlined repairs. “All of the store managers now have that app on their phone,” he said. “They can download their lists, download their photos, and all that gets automated into one location.” Soltis has plenty of examples of tech innovations that bring efficiency to the entire store, inside and outside, but one of the most significant applies to the canopy. It involves adding solar panels to the top of the canopy that then link to the electrical grid system, and allows the retailer to gain credits back from the municipality for energy generated. “We’re looking into that,” Soltis said, but he added that once again, the final decision will take into account the feasibility, the cost and what makes sense from an ROI perspective. Also in the forecourt, more efficient fuel pumps speed fueling turnover, as do touchless smartphone pay applications. Large digital screens can host display and video ads that bring in revenue. Store renovations also bring tax benefits. Whether financing or leasing, stores may be able to deduct the full value of improvements. Under Section 179 of the IRS tax code, businesses can deduct from gross income the full purchase price of qualifying equipment and software. That tax benefit could free up seed financing to get the ball rolling and ease the initial cash outlay. Stacking that with other benefits like rebates is part of a smart strategy. Digital updates add real world revenue. CSD
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SUNDAY, SEPTEMBER 13 1:00 PM – 7:30 PM Registration 1:00 PM – 4:00 PM NAG Hospitality Suite 4:00 PM – 5:00 PM NAG/YEO Board Meeting 6:00 PM – 7:00 PM NAG Networking Reception 7:00 PM – 10:00 PM NAG Opening Night Dinner 9:00 PM – 12:00 AM NAG Hospitality Suite MONDAY, SEPTEMBER 14 7:00 AM – 1:30 PM Registration/Info Desk Open 7:00 AM – 8:00 AM Breakfast 8:00 AM – 8:15 AM Welcome/Conference Overview, NAG Executive Director John Lofstock and NAG Board Chairman Doug Galli, Reid Stores Inc./Crosby's
8:15 AM – 9:15 AM GENERAL SESSION: BURNING ISSUE #1 Leadership for a New Generation: How Family Businesses Prepare for the Future: Growth and profits are the primary goal for retail chains of all sizes. But the convenience store industry rose to prominence on the backs of the family-owned businesses. Many of these chains have been successfully passed on from one generation to the next, but it takes a lot of planning, training and persistence. In this session, learn how family-owned business are grooming leaders, tracking trends and preparing for the future of convenience retailing. 9:15 AM – 9:45 AM
BREAK/VISIT SPONSOR TABLES
9:45 AM – 10:30 AM GENERAL SESSION: BURNING ISSUE #2 Employee Recruiting and Retention Strategies: No matter the industry, staffing turnover is a naturally occurring part of the business world. However, excessive employee turnover can affect the efficiency of a company. The costs of recruiting and retraining new employees can have a severely negative impact on your overall bottom line. Learn how leading retailers are finding great employees and going the extra mile to keep them.
10:30 AM – 11:00 AM 11:00 AM – 12:15 PM 12:15 PM – 1:15 PM 1:00 PM – 5:00 PM 1:30 PM – 5:30 PM 6:30 PM – 9:00 PM 7:00 PM – 8:30 PM 9:00 PM – 12:00 AM
Break/Visit Sponsor Tables Information Exchanges Part 1 Lunch Golf Outing – Shotgun Start NAG Retail Store Tours: The Best of Charlotte Dinner on Your Own YEO Networking Reception NAG Hospitality Suite
TUESDAY, SEPTEMBER 15 7:00 AM – 4:00 PM Registration/Info Desk Open 7:00 AM – 8:00 AM Breakfast 8:00 AM – 9:00 AM GENERAL SESSION: BURNING ISSUE #3 Data Privacy Requirements: What Convenience Stores Need to Know: States across the country are introducing privacy laws, which are focused on consumers’ data protection rights. These laws give customers the right to opt out of having their personal information stored by businesses. Retail companies must also be transparent with the kinds of data they collect from customers including things like address, email, driver's license number, telephone number and much more. These will impact how convenience store companies collect and store data. This session will help retailers navigate the changing laws. 9:00 AM – 9:30 AM
Break/Visit Sponsor Tables
9:30 AM – 10:15 AM GENERAL SESSION: BURNING ISSUE #4 Micro Stores and Non-Traditional Locations: Is This Strategy Right for Your Brand? Micro marts offer a limited SKU mix compared to traditional convenience store, but they come with several distinct advantages. They’re usually cashier-less locations that allow for autonomous check-in/checkout using a credit card and they can fit into as little as 300 square feet. More convenience store retailers are considering adding micro marts to their store portfolio in specific areas. In this session you will hear from convenience store chains that are already investing in this smaller retail concept. 10:15 AM – 10:45 AM Break/Visit Sponsor Tables 10:45 AM – 12:00 PM Information Exchanges Part 2 1) Fuels 2) Technology/Loyalty Programs 3) Finance and Real Estate 4) Foodservice 5) Human Resources 6) Leadership for Young Executives
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THE WESTIN — Charlotte, NC
September 13-16, 2020 10:45 AM – 12:00 PM YEO BREAKOUT SESSION 1: What is Blockchain and How Will it Affect You? Blockchain is a continuously expanding list of digital information called ‘blocks’ that are linked and stored in a public database (the chain), and secured using cryptography that can be accessed using the internet. It has huge implications for loyalty programs, customer data management and more. This session will detail how blockchain works and what retailers need to know.
12:00 PM – 1:00 PM
Lunch
1:15 PM – 2:30 PM GENERAL SESSION: BURNING ISSUE #5 Foodservice: Executing a Safer Foodservice Program: The COVID-19 pandemic changed the way convenience retailers sell food items and will have a lasting effect on foodservice employee training. The big question is what did retailers learn during this crisis about selling safer food and what steps are experts recommending in the event of another pandemic. 2:30 PM – 3:00 PM
Break/Visit Sponsor Tables
3:00 PM – 4:00 PM YEO BREAKOUT SESSION 2: Effective Leadership: The Best Ways to Manage People: Today’s convenience store chains face a unique challenge. Despite recognizing the value of improving their leadership pipelines and making investments in leadership development, nearly 30% of them still describe their candidate pool as “weak” or “very weak.” The session will examine the characteristics of great leadership and what young professionals can do to get ahead in their careers.
SPEAKER: David Caruso, Director, Stewart's Shops
5:30 PM – 6:30 PM 6:30 PM – 9:00 PM
NAG Networking Reception Dinner & Awards Ceremony Honoring Mary Banmiller 9:00 PM – 12:00 AM NAG Hospitality Suite WEDNESDAY, SEPTEMBER 16 7:30 AM – 12:00 PM Registration/Info Desk Open 8:00 AM – 9:00 AM Breakfast 9:00 AM – 10:15 AM GENERAL SESSION: BURNING ISSUE #6 Emerging Trends in Foodservice: Foodservice gains have led many c-store operators to boost their store footprints with open kitchens, ordering kiosks and dining space. Now many chains are getting into delivery and mobile ordering. C-store foodservice programs seem to have unlimited possibilities but only those who understand what customers are looking for will be successful. Our expert panel will outline what retailers can expect over the next three years. 10:30 AM – 11:00 AM Break/Visit Sponsor Tables 10:30 AM – 11:30 AM IDEAS BOOT CAMP Best practices and a conference wrap up with John Lofstock, Executive Director, NAG, and Brian Unrue, Vice President of Operations, Clark's Pump N Shop.
11:45 AM 12:00 PM
Conference Wrap Up and Takeaways Departures
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www.brakebush.com
Keto-Friendly Dessert Cups Duncan Hines, of Conagra Brands, has unveiled a collection of sweet treats designed specifically for those seeking keto-friendly snacks. Duncan Hines Keto Friendly Cups come in three flavors: Walnut Fudge Brownie, Birthday Cake and Double Chocolate Cake. With five grams net carbs and zero grams of added sugar, the new dessert treats are especially attractive to those following the keto diet. Beyond the new keto-friendly collection, traditional varieties of Duncan Hines single-serve cake cups are also available in a wide range of indulgent flavors.
Mini Display Warmers Hatco Corp.’s Mini Display Warmers feature hot air that circulates throughout the entire cabinet, keeping foods such as cookies, pastries, wrapped or boxed sandwiches and other products that don’t require humidity at safe-serving temperatures. The MDW models have a small footprint, so little counter space is used to merchandise your products.
Hatco Corp.
www.hatcocorp.com
Conagra Brands
www.conagrabrands.com 66
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Delight your customers with the #1 BSG brand *. Today, we bake. ®
Little Debbie is the sales leader – with 4.5 million snacks sold every day. 92% of customers know us and love us. Our family bakery takes pride in our fresh taste and variety that keeps your cash register ringing around the clock. To learn more, call 1-800-315-6208 or visit LittleDebbieCStore.com. Little Debbie products are sold DSD by wholesale distributors. *Nielsen ScanTrack®, Convenience Store Channel of Trade, 52 weeks ending 7/13/19
PRODUCTShowcase
Ginger Soda Sprite Ginger is a new refreshing addition to the brand’s portfolio that brings together the classic lemon lime taste of Sprite with a hit of ginger flavor in every sip. Sprite Ginger and Sprite Ginger Zero Sugar are available in 20-ounce and two-liter PET bottles and 12-ounce can 12-packs. With the consumption of ginger-flavored sparkling soft drinks (SSD) steadily rising over the past few years, Sprite Ginger and Sprite Ginger Zero Sugar offer a fresh take on one of the most in-demand flavor trends among consumers.
The Coca-Cola Co.
Wintergreen CBD Dip
www.coca-colacompany.com
CBDip is a holistic alternative to the traditional tobacco chew products. It is nonGMO and 100% tobacco- and nicotine-free. Each CBDip tin contains loose, long cut dip and is packed with 200 milligrams of fast-acting full spectrum CBD, containing all the natural compounds found in hemp for a wider range of benefits than CBD alone. Users will enjoy the same effects as traditional dip minus the nicotine and tobacco. And no pouches means the user decides how much to pinch and dip.
Flora CBD
bryan@floracbd.co
www.gotflora.com
Single-Serve Packs Cocomels announced new Single Serve Packs for Sea Salt Coconut Milk Caramels and Sea Salt Chocolate Covered Bites. Cocomels are mindfully crafted without dairy, using simple, organic and non-GMO ingredients for an indescribably delicious, better-for-you indulgence. The new, single serve packs are sold by the case and are designed to sit in an eight unit, easily merchandisable tray. They are priced to sell at $1.99 per 1.3-ounce bag.
JJ’s Sweets
www.jjssweets.com
Greaseless Fryer Quik n’ Crispy Greaseless Fryers are patented hot air ovens that use a combination of hot air, radiant heat and an elevated perforated basket to fry, grill or bake foods without the need of vented hoods. French fries, chicken tenders, corn dogs and more are cooked crispy on the outside, moist and juicy on the inside, with 20-40% less fat than deep fat fried foods. They can also be used to bake pizzas and hot sandwiches, and it takes less than five minutes to grill pre-cooked meats such as hamburgers, chicken breasts or hot dogs.
QNC Inc.
www.q-n-c.com 68
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cstoredecisions.com
PRODUCTShowcase
Cheddar Cheese Crisps Whisps Snacks announced its next two flavors: Whisps Tangy Ranch Cheese Crisps and Whisps Nacho Cheese Crisps. With artisanal cheesemakers in charge, these new, snackable cheese crisps feature 100% cheddar cheese exclusively made for Whisps and perfect blends of savory spices to elevate these iconic flavors. Like all Whisps, these new snacks have 10+ grams of protein and only three grams of carbs per serving. Whisps are also an excellent source of calcium, gluten free, keto and vegetarian friendly.
Whisps Snacks
Chocolate Dipped Cashews SkinnyDipped is launching its first line of chocolate dipped cashews, available in two varieties, Dark Chocolate Cocoa and Dark Chocolate Salted Caramel. Like all SkinnyDipped products, the line of chocolate covered cashews are made with non-GMO ingredients, are gluten free and made with ethically sourced chocolate and no artificial colors or flavors. All SkinnyDipped products, including Dark Chocolate Cocoa Cashews and Dark Chocolate Salted Caramel Cashews, are sold in 3.5-ounce pouches for a suggested retail price (SRP) of $4.99. Select flavors also available in single-serve bags for $1.99.
www.whisps.com
Baked Pineapple Chips Remaining true to its philosophy of “less is more,” bare’s new Simply Pineapple Chips are made with one simple ingredient. While the brand debuted Pineapple Chips & Coconut Chips Medleys last year, this is bare’s first-ever standalone baked Pineapple Chip, hitting shelves nationwide this summer. A convenient, resealable bag also makes it easy to eat real anywhere. Like the rest of bare’s expansive portfolio of baked crunchy snacks, new Simply Pineapple Chips are Non-GMO Project Verified and contain no artificial flavors, colors or preservatives. Bare Simply Pineapple Chips will retail for $4.99 per 1.6-ounce bag.
Bare Snacks
www.baresnacks.com
Dual-Flavor Candy
SkinnyDipped
HI-CHEW expands its innovative portfolio of vibrant flavors twofold with the launch of new HI-CHEW Fruit Combos Mix, featuring Tropical Smoothie and Piña Colada. Each ‘chewlet’ offers two layers of tastes that create one amazing fruit-forward experience. HI-CHEW is now available in 16 flavor offerings in the U.S., lending to the candy’s increasing popularity among a growing audience. The HI-CHEW Fruit Combos Mix is offered in a three-ounce peg bag for a suggested retail price (SRP) of $2.59.
www.skinnydipped.com
Morinaga America Inc.
www.morinaga-america.com cstoredecisions.com
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PRODUCTShowcase
Mixed Berry Ropes Bites SweeTARTS is launching two new confections: SweeTARTS Twisted Rainbow Punch Ropes and SweeTARTS Twisted Mixed Berry Ropes Bites. Both new products offer consumers a multi-faceted candy experience full of vibrant colors and mouth-watering flavors that are rolling out nationwide this spring in four sizes: threeounce small peg, SRP $1.99; 3.5-ounce share pack, SRP $1.99; five-ounce medium peg, SRP $2.49; nine-ounce LDB, SRP $3.49. SweeTARTS Twisted Mixed Berry Ropes Bites combine three new tangy berry flavors, including cherry, strawberry and raspberry, twisted together and filled with a matching, delicately tart center.
Ferrara
Environmentally Friendly Food Packaging Inline Plastics announced the integration of rDPET across its full product line, making Inline the first food packaging manufacturer in the U.S. to develop high-performing, food-grade packaging material infused with postconsumer content born from recycling at the molecular level, known as chemical recycling. By using rDPET coupled with the energy-efficient proprietary manufacturing ‘direct to sheet’ process, Inline Plastics realizes the following environmental benefits in comparison to traditional PET: diverts nearly 1 billion water bottles from the world’s oceans and landfills annually, uses over 50% less energy during material production and reduces the carbon footprint by 112,000 acres of forest or emissions equal to 233 million miles driven per year.
Inline Plastics
www.inlineplastics.com 70
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www.ferrarausa.com
Sparkling Water Flavors National Beverage Corp. announces its two new naturally essenced flavors of LaCroix. LimonCello and Pastèque (French for watermelon) will hit store shelves nationwide this spring. These innovative new varieties join the LaCroix family of 27 refreshingly innocent flavors. Fans will be instantly transported to the Italian Riviera with the refreshing finesse of LimonCello. Pastèque captures lusciousness of a sweet watermelon and is one of the most highly anticipated flavors to date.
National Beverage Corp.
www.nationalbeverage.com
No-Touch Restroom Germ survival rates on surfaces vary widely; however, even a few hours can promote the spread of pathogens among local populations. Preventing these kinds of outbreaks was at the root of HOSPECO’s development of the complete no-touch restroom. Included in this revolutionary no-touch personal care assortment are Evogen EV3 No-Touch Menstrual Care Dual Vendor (EVNT3), Evogen EV4 Mini No-Touch Menstrual Care Dual Vendor (EVNT4), Evogen No-Touch Combination Receptacle (EVNT-CWR), and Evogen NoTouch Toilet Seat Cover Dispenser (EVNT1-W). The addition of these new state-of-theart, hands-free products closes the circle in reducing the spread of germs and illnesses, and creates a more upscale atmosphere that enhances customers’ overall comfort.
HOSPECO
www.hospeco.com May 2020
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Classifieds/Ad Index 5-hour Energy
25
Inline Plastics
31
Perfetti Van Melle
43
ADD Systems
53
ITG Brands
75
Prairie City Bakery, Inc.
12
CB Distributors
5, 7
JUUL
49
Ruiz Food Products, Inc.
35
Crown Imports
13
Krispy Krunchy
37
Solari Hemp
17
DayMark Safety Systems
57
Little Debbie
67
Swedish Match
Del Monte
33
Loomis Armored US, LLC
55
E-Alternative Solutions
59
Mars Wrigley
45
MasonWays Indestructible Plastics
73
www.5HErewards.com 800.922.0972 / www.go.addsys.com/build 888.824.3256 / www.global-widget.com
www.handfamilycompanies.com/crown-imports 800.847.0101 / www.daymark.com 800.950.3683 / www.freshdelmonte.com
877.373.0069 / www.Ealternativesolutions.com
www.inlineplastics.com/reborn www.itgbrands.com www.juul.com 800.290.6097 / www.krispykrunchy.com 800.315.6208 / www.LittleDebbieCStore.com www.loomis.us/SafePoint www.mars.com
Gulfcoast
3
Hershey
41
McLane Company, Inc.
21
Home Market Foods, Inc.
15
Mondelēz International Group
14
Hoshizaki
47
North American Bancard
72
727.449.2296 / www.gulfcoast.com www.HersheySolutions.com 800.367.8325 / www.HMFfoodservice.com www.hoshizakiamerica.com
Due to COVID-19, the Young Executives Organization (YEO) Conference — previously scheduled for May — will run in conjunction with the 2020 NAG Conference.
800.837.2881 / www.masonways.com www.mclaneco.com/technology www.mondelezgrowthprogram.com 866.481.4604 / www.nynab.com
800.283.5988
www.pcbakery.com
www.ruizfoodservice.com
888.384.7333 / www.solarihemp.com 800.367.3677 www.zyn.com www.gamecigars.com www.whiteowlcigar.com www.gamecigars.com
9 23 51 63
Swisher International
29, 76
800.874.9720 / www.swisher.com
Texas Pete
27
Trion Industries, Inc
39
TexasPeteFoodService.com/FlavorsForTheRoad 800.444.4665 / www.TrionOnline.com
U.S. Smokeless Tobacco Company
2
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CHARLOTTE September 13-16 THE MOST AWAITED C-STORE EVENT OF THE YEAR!
2020 www.masonways.com 800-837-2881 cstoredecisions.com
May 2020 • CSTORE DECISIONS
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IndustryPerspective
Implementing AI
& Robotics at C-Stores Robotics and artificial intelligence open new doors for retailers, from inventory solutions to preventing slip and fall concerns. Erin Del Conte • Executive Editor Today, robots are taking foodservice orders, managing inventory and even cleaning up spills. CStore Decisions sat down with Frank White, consultant and founder of White Knight Marketing, to discuss how convenience stores are entering the world of artificial intelligence (AI) and robotics. While the c-store industry isn’t moving as quickly into AI and robotics as other channels, such as fastfood restaurants, college campuses and drug store chains, the industry continues making inroads. White pointed to f’real milkshake machines as the first robot in cstores. “Even though it was a simpler robot, meaning you press the buttons and you tell it what to do, it basically makes your shake for you, and it cleans itself, and it tells you when it needs maintenance,” White said. ROBOTS AT WORK
In November 2019, 7-Eleven began piloting greenbox cannabidiol (CBD) dispensing robots at stores in Colorado. “It’s almost like a vending machine, but it’s using AI, and ID and
Listen to the full podcast at: https://cstoredecisions.com/ 2020/04/08/podcast-how-c-storesare-approaching-robotics-ai 74
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May 2020
facial recognition to really serve the customer,” White said. Not only does the CBD dispenser allow the customer to be served easily via a user-friendly touchscreen, but it also allows the retailer to feel comfortable that they’re following regulations, and ensuring an agerestricted sale, White pointed out. “That robot doesn’t have to make a judgment call. The robot looks at the ID. It looks at the face. It matches it up. And this way there’s really no gray area there,” White said. The robot also offers a cutting-edge, novelty experience for customers. Ahold Delhaize has introduced a robot — called Marty — that cleans up messes. About 500 Marty robots entered the company’s Stop and Shop and Giant Food Stores starting in January of 2019. “If somebody spills, (the robot) will go to the spot, announce it and help clean it up,” White said. “That’s just one other way that robots are working side by side with regular associates and real people.” Inventory robots, such as those seen at alcoholic beverage retailer BevMo! and Walmart, scan shelves and identify when product is out of stock. Inventory robots can help c-stores improve on replenishment and procurement, offer data to help retailers forecast more accurately and avoid out-of-stocks, and free up associates
to spend more time building customer relationships, all of which can help a retailer’s bottom line. On the foodservice front, taking kiosk ordering a step further, a ‘Pizza ATM’ can take a pizza order, heat the product and dispense it to the customer. “After you paid for it … the pizza comes out just like cash would come out of an ATM,” White said. Chatbots can respond to routine customer service questions. A kiosk in the store can help teach customers about loyalty programs and even guide them through sign-up. White noted customers are more comfortable with chatbot interactions today because of the increased use of digital marketing and virtual kiosks. BEST PRACTICES
The key for retailers is to consider how they want to integrate AI. “We actually have to take a step back and say, ‘Strategically, where do I want to go with robots, with AI, with replenishment and data analytics, and then do I have the right infrastructure — or, to use a different term, ecosystem — in my store and retail and IT environment that allows me to integrate all of these pieces?’” White advised. “Because if it doesn’t integrate, and it doesn’t work together, all we’ll have is a bunch of different modules that don’t work as well as they could.”
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