CStore Decisions May 2022

CStoreDecisions Solutions for Convenience Retailers

The Kent Cos.

Sets Sights on New Market Growth Bill Kent, CEO of The Kent Cos., is targeting $1 billion in revenue as the company ventures into new operating areas, while elevating foodservice and testing self-checkout.

INSIDE Candy, Gum and Mints Rebound 36 Tobacco’s Ever-Evolving Legislative Landscape 46 Tech Innovation Awards 60 May 2022

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Leading Through Innovation

EDITORIAL

CREATIVE SERVICES

MARKETING

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

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

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

EXECUTIVE EDITOR Erin Del Conte edelconte@wtwhmedia.com

CREATIVE DIRECTOR Erin Canetta ecanetta@wtwhmedia.com

DIGITAL MARKETING MANAGER Taylor Meade tmeade@wtwhmedia.com

ASSOCIATE EDITOR Emily Boes eboes@wtwhmedia.com

ART DIRECTOR Matthew Claney mclaney@wtwhmedia.com

ASSOCIATE EDITOR Marilyn Odesser-Torpey

DIRECTOR, AUDIENCE DEVELOPMENT Bruce Sprague bsprague@wtwhmedia.com

CONTRIBUTING EDITORS Anne Baye Ericksen Howard Riell COLUMNISTS Richard Crone Tim Powell Hannah Williams

CUSTOMER SERVICE CUSTOMER SERVICE MANAGER Stephanie Hulett shulett@wtwhmedia.com

ADVERTISING

CUSTOMER SERVICE REPRESENTATIVE Jane Cooper jcooper@wtwhmedia.com

PUBLISHER John Petersen jpetersen@wtwhmedia.com

EVENTS

(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

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

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

FINANCE CONTROLLER Brian Korsberg bkorsberg@wtwhmedia.com

DIGITAL MARKETING SPECIALIST Olivia Boris oboris@wtwhmedia.com WEBINAR COORDINATOR Halle Kirsh hkirsh@wtwhmedia.com WEBINAR COORDINATOR Kim Dorsey kdorsey@wtwhmedia.com DIGITAL DESIGN MANAGER Samantha King sking@wtwhmedia.com MARKETING GRAPHIC DESIGNER Hannah Bragg hbragg@wtwhmedia.com

WEB DEVELOPMENT DEVELOPMENT MANAGER Dave Miyares dmiyares@wtwhmedia.com SENIOR DIGITAL MEDIA MANAGER Pat Curran pcurran@wtwhmedia.com DIGITAL PRODUCTION MANAGER Reggie Hall rhall@wtwhmedia.com DIGITAL PRODUCTION SPECIALIST Nicole Lender nlender@wtwhmedia.com DIGITAL PRODUCTION SPECIALIST Nicole Johnson njohnson@wtwhmedia.com VICE PRESIDENT, STRATEGIC INITIATIVES Jay Hopper jhopper@wtwhmedia.com

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

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

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

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

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

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

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

ACCOUNTS RECEIVABLE SPECIALIST Jamila Milton jmilton@wtwhmedia.com

YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD Kalen Frese (Board Chairman), Food Service Director Warrenton Oil Inc. • Warrenton, Mo.

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

Jeff Carpenter, Director of Education and Training Cliff’s Local Market • Marcy, N.Y. 2011 - 2020

SUBSCRIPTION INQUIRIES To enter, change or cancel a subscription, please go to: http://d3data.net/csd/indexnew.htm or email requests to: bsprague@wtwhmedia.com Copyright 2022, WTWH Media, LLC CStore Decisions (ISSN 1054-7797) is published monthly by WTWH Media, LLC., 1111 Superior Ave., Suite 2600, Cleveland, OH 44114, for petroleum company and convenience store operators, owners, managers. Qualified U.S. subscribers receive CStore Decisions at no charge. For others, the cost is $80 a year in the U.S. and Possessions, $95 in Canada, and $150 in all other countries. Single copies are available at $9 each in the U.S. and Possessions, $10 each in Canada and $13 in all other countries. Periodicals postage paid at Cleveland, OH, and additional mailing offices. POSTMASTER: Send address changes to CStore Decisions, 1111 Superior Avenue, 26th Floor, Cleveland, OH 44114. GST #R126431964, Canadian Publication Sales Agreement No: #40026880.

CSTORE DECISIONS does not endorse any products, programs or services of advertisers or editorial contributors. Copyright© 2022 by WTWH Media, LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, or by recording, or by any information storage or retrieval system, without written permission from the publisher. Circulation audited by Business Publications Audit of Circulation, Inc.

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

cstoredecisions.com

CONTENTS May 2022

•

Number 5 •

Volume 33

CStoreDecisions

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EDITOR’S MEMO

8 Why NAG Matters for You FRONT END

10 Quick Bites / Evolving Customer Behavior and Outlook 12 Samco Expands Family Business 22 Start Where You Are: 10 Things I learned About DEI as a White Person CATEGORY MANAGEMENT

26 Candy, Gum and Mints Rebound 42 Customers Reach for Snacks 46 Tobacco’s Ever-Evolving Legislative Landscape FOODSERVICE

50 Technology Is Raising the Bar for Food Programs 54 C-Stores Need to Carry the Pandemic’s Packaging Lessons Forward OPERATIONS

COVER STORY

58 Calculating Energy Savings TECHNOLOGY

24 The Kent Cos. Sets Sights

60 7-Eleven Expands Convenience Through Tech 64 Choice Market Takes on Tech

on New Market Growth

50

Bill Kent, CEO of The Kent Cos., is targeting $1 billion in revenue as the company ventures into new operating areas, while elevating foodservice and testing self-checkout.

BACK END 68 Product Showcase 73 Ad index 74 Industry Perspective: What’s Your Cryptocurrency Strategy?

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cstoredecisions.com

FOR-12002_Ford_Gum_Full_Page_Ad_FINAL_HR.pdf

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Ford Gum & Machine Company • Akron, NY 14001 • www.fordgum.com • T: (847) 955-0003 • E: sales@fordgum.com Trademarks Used Under License From BIG LEAGUE CHEW PROPERTIES, LLC © 2022 All Rights Reserved.

Smarties® is a Registered Trademark of the Smarties Candy Company, Union, NJ 07083

®, TM, © 2022 Jelly Belly Candy Company

WARHEADS® is a registered trademark of Impact Confections, Inc.

Editor’s Memo

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

Why NAG Matters for You Just when we thought things couldn’t get any more difficult than a global pandemic, the convenience store industry, like all retail channels, continues to face a host of issues including record gas prices, a severe labor shortage and ongoing supply chain issues. Any one of these issues can lead to some restless nights. All three at once is just downright cruel.

But despite all of the issues affecting convenience store owners, I was proud to still have a strong attendance at the National Advisory Group (NAG) annual conference in California. Driven by our outstanding retailer board, the NAG Conference featured cuttingedge educational sessions and small-group breakout sessions to tackle the many issues c-store operators are facing. Most retail leaders might say their schedule is demanding enough at the moment, and the thought of adding one more activity to their busy calendar is unbearable. So why should they try to cram time into their already-hectic schedules to participate in NAG? Because membership in an industry association offers numerous benefits and will keep business owners on top of important, ever-changing issues, trends and legislation within the industry that will help them grow sales and profits. Many professionals, however, believe the greatest benefit of being a member in an association is the networking and camaraderie that goes on among members.

Membership in NAG not only benefits employees of your company, but it also projects a positive image of your chain in the industry. Membership shows initiative and a commitment to staying ahead of current developments in the market. But to benefit from this, you must participate and be an active member by making an investment of time and effort in NAG activities, none of which is more exciting than the Young Executives Organization (YEO).

As the convenience store and petroleum industry continues to evolve, training the leaders of tomorrow is more important than ever. That’s the driving force behind YEO. NAG provides young executives a platform to demonstrate their leadership abilities and vision for the future, while gaining valuable feedback from seasoned 8

CSTORE DECISIONS •

May 2022

NAG members. At the conference in March, YEO members had a separate track that focused on emerging payment systems and how to become an effective leader. Here are four takeaways to help young executives enhance their networking efforts by being efficient, organized and focused.

• Build Relationships in Small Increments. Remember, older generations work off of relationships, not casual onetime meetings. Relationships built carefully over time — with mutual interests — can help define your career path.

• Be Specific in Asking for What You Want. Don’t waste the time of your networking contacts. Be clear about what you are hoping to gain from the meeting. Tell them exactly what you want to do and why you think they can help you.

• Face Time is Critical. We’re all too used to communicating by text and email. While that works in many situations, networking calls for much more personal methods.

Young leaders need to build relationships. This means personal connections. This takes more time and effort, but conferences like NAG are the perfect environment to interact with your peers in the industry.

• Use Your Expertise to Help Others. Today’s young executives are well ahead of the previous generations in technology. You can enhance your networking relationship by sharing something you learned about a new technology or simply sending them links to articles on topics you think are relevant to the business leader’s industry.

It is gratifying to hear stories about how our YEO members share what they are learning with new and existing industry connections. This is how companies improve and how we elevate operations across the entire industry.

This may be tough now, but NAG is a resource you should be using to become a more informed operator.

To learn more about the work NAG and YEO are doing, contact me at jlofstock@wtwhmedia.com or visit NAGConvenience.com.

k c o t s f o L n Joh

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quickBites EVOLVING CUSTOMER BEHAVIOR AND OUTLOOK The COVID-19 pandemic’s latest surge has waned, allowing customers to return to spring gatherings and a to-go lifestyle, but the pandemic continues to influence shopper trends.

Meanwhile, inflation is rising, impacting the overall economic outlook.

TOP NEEDS DRIVING EATING OCCASIONS

1. Fueling

2. Wellness

3. Connecting

A recent nationwide Y-Pulse survey polled customers ages 18-34 on takeout and delivery program preferences.

4. Gratifying

33% of all eating occasions are influenced by the need to fuel the body.

21% of all eating occasions are influenced by wellness.

Source: NPD Groups’s recent report “America’s Health Pulse: Closing the Gap Between Wants and Needs,” 2022.

INFLATION WON’T HALT SPRING HOLIDAY GATHERINGS Spring holiday gatherings are expected to make a comeback in 2022 after COVID-19 impacted gatherings over the last two years.

90% of respondents notice that the cost of food is higher

than last year 30% plan to prepare a special meal only for themselves or their family, down from 38% in 2021. More customers plan to host or attend a meal with extended family in 2022 compared to 2021.

26% expect to pay much more or some more for their spring holiday gatherings compared to 2021.

Source: “Spring Holiday Report 2022,” Information Resources Inc. (IRI)

ECONOMIC OUTLOOK

THE TO-GO LIFESTYLE

83% of respondents were willing to drive a distance

to pick up food from a restaurant they really liked.

72% would buy grocery items at a local restaurant.

70% have learned about new restaurants because of a unique takeout offering.

79% like to try new things on the restaurant’s menu when they order meals to go.

82% prefer to order directly from a restaurant rather than a delivery service.

Source: Y-Pulse, a division of Olson Communications

PRICE TRENDS IRI reported that price trends in the top 25 edible categories compared to one year ago range from increases of 26.3% for powdered milk to 13.8% for shelf-stable spaghetti/Italian sauce.

After hitting record lows, economic sentiment grew slightly over the two weeks ending April 13, 2022. The Hamilton Place Strategies (HPS)-CivicScience Economic Sentiment Index (ESI) increased 0.9 points to 36.7. The only economic indicator to decrease during the week ending April 13, 2022, was confidence in the housing market, which dipped 0.6 points to a record low of 22.4. Confidence in the U.S. economy grew 0.2 points to 34.9.

IRI predicted that weakening unit demand will lead retailers to increase promotion investments, and that growing price inflation and price sensitivity will result in consumers shopping more aggressively on deals.

Source: “Spring Holiday Report 2022,” Information Resources Inc. (IRI)

10

CSTORE DECISIONS • May 2022

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FRONT END Profile

Samco Expands Family Business

With a bold design and proprietary food offerings, Samco is growing its footprint through acquisitions and new builds.

Emily Boes • Associate Editor

Offering the market a fresh take on convenience stores, Bakersfield, Calif.-based Samco Food Store is building its brand with new locations and a bold look, giving the local community a destination, not just a convenient spot for a quick bite.

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CSTORE DECISIONS •

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Samco operates 10 company-owned locations in the Bakersfield area, with one new location currently under construction and two new sites planned for 2023.

Samco got its start in 1991 when Sam Jouda, CEO and co-founder of Samco, purchased Greenacres Market, a c-store complete with gas and liquor located at Rosedale Highway and Calloway Drive.

“I moved from overseas (Syria) to the U.S. in 1989. The rest of the immediate family came two years later. I worked for a friend in the business with the goal to learn and grow our own brand,” said Jouda.

The family worked together to run Greenacres Market, with Jouda overseeing the day-to-day business and his siblings working outside of school hours. Jouda’s father also visited the store daily.

With the arrival of more family members, the store count continued to grow. “We now have adjusted into a more corporate structure,” said Jouda.

Jouda works with his brother, Wisam, who serves as vice president, operations manager and co-founder of Samco.

“We love working with our family members, cousins and close friends on a daily basis with the goal of making Samco the best stores in Kern County,” said Jouda.

REBRANDING TO SAMCO

After learning the business with Greenacres Market, the family decided the Samco brand would allow them to expand their footprint.

“The name Samco came from the brothers’ names Hosam and Wisam,” said Jouda. “It means Sam’s company.”

The first Samco site was purchased in 2006 on California Ave. and began as a conventional store, with a liquor license later added. Its store operations modeled that of Greenacres Market. cstoredecisions.com

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Samco’s goal is to bring something different to the Bakersfield market with a fresh concept and new offerings — to give its customers more.

With the first Samco site up and running, the family looked to grow and acquired two more sites over the next three years.

“We continue to learn the business and grow together as a family each day,” said Jouda.

The original Greenacres Market site was relinquished in 2007, as the city took part of the land for road widening, and it was decided that the gas lease would not be renewed.

Samco has also built two new-to-industry locations. The first Samco location built from the ground up is located on Buena Vista Road. The

process of opening the new Buena Vista Road location during the pandemic proved difficult. It was affected by issues with labor and equipment and permit delays, but finally opened to the public January 2022.

“Our dedication to the process and perseverance helped us maintain the course, and (by) working with a great support group (such as Paragon Solutions and Blackburn Construction), we were able to get it done,” Jouda commented.

The chain’s second ground-up build is currently under construction at South Fairfax Road and East Brundage Lane and set to be completed in about six months. The process has also faced challenges in today’s difficult climate, with delays such as PG&E poles that had to be repositioned, equipment shortages and labor issues.

Samco’s new-to-industry sites will average 5,300 square feet.

Samco’s goal is to bring something different to the Bakersfield market with a fresh concept and new offerings — to give its customers more.

BOLD, VISIBLE, UNIQUE

Samco stores are designed with a modern feel and open concept in mind, featuring bold graphics and visible colors.

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Samco partnered with Paragon Solutions to design its stores with a modern feel and open concept in mind. The sites feature bold graphics and visible colors, particularly blue, yellow and red, along with lime green accents.

cstoredecisions.com

FRONT END Profile The beer cave is situated along one wall, which features a golden yellow color peppered with circle graphics. It currently stocks local breweries, including Kern River Brewery, Temblor Brewery and Lengthwise Brewery.

In addition to the beer cave, Samco stocks Cinnabon bean-to-cup coffee, with regular, decaf and dark roast options. It also boasts eight Icee products, six Slush products and a fresh-blend fruit smoothie machine. The fountain area includes 20 different flavors.

A significant portion of the store is designated to its Cinnabon and Carvel offerings, which comprise fresh baked goods and ice cream — with real dairy — selections, respectively. With a natural beige color scheme for the area, the spot maintains the look and feel of a café and bakery. It has signage to indicate where the line starts and digital menu boards.

“The Cinnabon and Carvel area gives you a bakery feel. The c-store area feels open and shoppable.

The coolers are stocked with many varieties of drinks, with the beer cave capping it off at the end,” explained Jouda.

A significant portion of the store is designated to its Cinnabon and Carvel offerings, which comprise fresh baked goods and ice cream — with real dairy — selections, respectively.

Samco decided to add Cinnabon and Carvel to its concept because it was looking to expand its fast-food footprint.

“We looked around and thought that the Cinnabon and Carvel brands were needed in the area,” Jouda said.

Samco contacted Cinnabon’s representative, Dan Pawlak, who looked at the new sites, saw the operations and helped the chain become a franchisee. “He was very helpful and provided support and information throughout the process,” Jouda added.

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FRONT END Profile

Samco features a bold and colorful theme from the golden yellow color peppered with circle graphics around the beer cave to Samco’s proprietary Yumi candy zone, which displays an array of candy against a rainbow backdrop.

Capitalizing on the bold and colorful theme of the store, Samco’s proprietary Yumi candy zone displays an array of candy against a rainbow backdrop. Here, customers, both adults and children, can fill a cup from the offerings in multiple bins and pay a set price for the cup.

At multiple sites, Samco is offering its proprietary Yumi chicken brand. Samco also offers Yumi Fresh, a proprietary concept that consists of fresh sandwiches and subs it distributes to every site from its five Yumi Kitchen concepts in-store.

Samco plans to expand its Yumi Kitchen concept with future sites, including Yumi Chicken, Yumi Fresh and the Yumi candy zone.

In addition to Samco’s in-store offerings, it has café seating next to the Cinnabon and Carvel area. There are also two dedicated children’s tables and high chair seating at a counter along the window area.

Samco is open to all, including pet owners. At a few of its current sites, it features dog parks.

Samco has café seating next to the Cinnabon and Carvel area, two dedicated children’s tables, high chair seating and a counter along the window area.

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In the forecourt, Samco has eight dispensers with 16 fueling positions and diesel availability.

In terms of technology, Samco sites are EMV compliant, and it has plans to install touch payments on its dispensers as they are released in the market.

It offers online ordering and delivery through DoorDash and Uber Eats.

FUTURE AND COMMUNITY CONNECTION

As it looks to the future, Samco has its eye on growth. After Samco opens its South Fairfax Road location, it will turn its sights to preparing two newly acquired stores — a Mobil station and a Shell station — that are a year or two away from being operational.

As they are smaller units, Samco is looking to see how well they do in the market.

No two stores look exactly the same, and after Samco finishes cleaning the new sites, it will reach out for design options for each site.

“We are always looking to purchase sites in (the) California area if it is a good fit,” said Jouda.

Samco also plans to continue its involvement with the community. In the past, it has donated to local youth baseball and flag football programs. It also sponsors teams and gives them snacks and drinks.

“The Ronald McDonald program is where we collect donations from customers who purchase a balloon,” said Jouda. “We also do the muscular dystrophy program where the customers can donate and buy a shamrock.”

In further efforts to connect with the community, Samco works with autistic adults through a local program. They can start an internship with the chain and, after a year, they can earn a position. Currently, Samco is working with two interns.

cstoredecisions.com

Front End | DEI Corner

START WHERE YOU ARE:

10 THINGS I LEARNED ABOUT DEI AS A WHITE PERSON

Learning about diversity, equity and inclusion (DEI) is a journey.

Consider these points as you navigate the process.

Hannah Williams • Almora Advisors

I recently attended a panel discussion on allyship: what it is (relationships based on trust, consistency and accountability) and how it shows up in the workplace. The hosts and panelists openly shared their experiences with racism and allyship — their vulnerability caused me to reflect on my own DEI journey.

I think the best definition of DEI is the table metaphor.

Diversity is the process of bringing multiple perspectives to the table to enhance learning. Inclusion is the process of fostering an environment where everyone at the table feels comfortable speaking up. Equity is an outcome where everyone at the table is speaking up, respected and has equal opportunity.

After a lot of reflection, I’ve written a list of what I wish I knew when I was 18, the year I began to understand the magnitude of racism in the U.S., and the start of my DEI journey. My hope is that by honestly sharing my experience, readers will feel encouraged to engage more with DEI. A few disclaimers: • I’m a white person, and my lessons are intended for a white audience. Specifically, white people who are skeptical about racism, are struggling with what it means to be white or feel overwhelmed by DEI. I’ve been in all three positions.

• Some people of color may find this list informative, and some may find it obvious. I recognize that many excellent authors of color like Dax-Devlon Ross and Kimberlé Crenshaw have written on this subject, and their lessons likely resonate more with people of color.

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• DEI includes many intersecting identities: race, ethnicity, gender identity, socioeconomic status, religion/ spirituality, sexual orientation, nationality and ability. All of them are important, but to keep my writing focused, I centered my lessons on race.

I’ve grouped my lessons into four categories: DEI, Race Relations, Being White and Allyship.

DEI

1. L ike accounting or biology, DEI is a field of study.

You should not get mad at yourself for being unable to read a balance sheet, if you have never studied accounting. DEI is the same. DEI is a vast field of study with its own language, research and history. If you have never studied DEI, don’t dismiss it — be curious instead of frustrated. “The Power Manual” by Cyndi Suarez provides a great introductory overview of DEI. 2. L earning about DEI means learning about yourself.

One part that surprised me about studying DEI was learning how my identity affects me and those around me. Sometimes, other people put me in a box (“She is too young to lead.”) and sometimes, I do the same (“Everyone here is wealthier than me; I don’t belong.”). After studying DEI, I’m able to identify when others are cutting me short, and when I’m doing the same. This knowledge is a gift, as I can now take action to mitigate both.

3. DEI is a journey. We will always be learning.

Even though I’ve learned a lot by taking DEI courses, the education was piecemeal. The first time I heard the terms “anti-racism” and “Black Wall Street” were in 2020. I was initially mad at myself for not knowing these

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Neatly and effectively display cooler and freezer items, including yogurt, dips, puddings, ice cream, single-serve For Storewide and Grocery Sales foods, and more. Our small Adjustable ® Merchandising Tray (AMT) fits a range of 4- to 6-ounce cups; the medium AMT It’s not just for coolers or beverages. organizes mid-range offerings; and the Use ZIP Track® in multiple categories large AMT gives ice cream lovers pause to showcase many different types to browse and choose a pint of their of product. This is the most versatile favorite flavor (hmmm ...why not get both system, of its kind available on the Cherry Vanilla and Rocky Road?). This market. Manufactured from durable, manual-feed tray ensures that products modern plastics, it provides extended remain faced and accessible. Time to merchandising life. ZIP Track® offers re-stock? Just lift out and refill. Add Clear

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Containers Well Contained Over 450 Profiles ®

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Depths rangecosmetics, from 13" to vitamins 24", and for items including vitamins for and items including cosmetics, vitamins crafts, party trayssupplements, feature integrated label supplies, holders. supplements, crafts, supplies, andand supplements, crafts, partyparty supplies, and more.

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HOOKS | lAbElING | SHElF & COOlER MERCHANDISING HOOKS | lAbElING | SHElF & COOlER 800-444-4665 | info@triononline.com HOOKS | lAbElING | SHElF & COOlER MERCHANDISING HOOKS.triononline.com/Art | lAbElING | SHElF & COOlER 800-444-4665 MERCHANDISING | info@triononline.com MERCHANDISING 800-444-4665 | info@triononline.com .triononline.com/Art ©2019 Trion Industries, Inc. 800-444-4665 | info@triononline.com .triononline.com/Art .triononline.com/Art

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Extend Your Revenue Super Hooks!

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ScanLock ScanLock Hook Hook Locks Locks Cooler Capable AMT ScanLock Hook Locks team for when Scanlock team for aa long long lunch lunch when Scanlock ScanLock Hook Locks Neatly and effectively display cooler Thief!

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Clear Scan Label Holders Cooler Capable AMT ®

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Available slatwall, crossbar, and corrugated.

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Label Holder System for C-channel, configurations. horizontally to accommodate all Call 800-444-4665 shelf |spaced TrionOnline.com edge, wire basket, and refrigerated manner of product sizes. areas storewide.

Literature Holder Literature Holder

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terms, but it’s important to remember the field of DEI (and its cousin, anti-racism) are vast. There is still a lot I don’t know, and that’s okay. I’m learning.

recommend Brené Brown’s podcast interview with Dr. Yaba Blay on identity to start.

RACE RELATIONS

8. Ask specific questions and offer support.

It can be exhausting for a person of color to explain to a white person why they should care about racism. People of color often field the question, “What should I do?” and sometimes they have to argue for their points to be heard.

I’ve found that authentic support (“These protests have been overwhelming. I hope you are okay.”) and specific questions (“That comment felt uncomfortable. Did you feel called out?”) are more valuable for both parties.

4. A person of color is not automatically an expert in DEI. This is the same logic as assuming a tall person is good at basketball. If a person has not had the opportunity to study DEI (or chooses not to), regardless of race, they will not be able to speak to the field and all its nuances. It’s better to start by educating yourself. I recommend reading “Uncomfortable Conversations with a Black Man” by Emmanuel Acho.

5. When a person of color speaks about a racist incident they experienced, they are reliving trauma.

I had no idea racial trauma existed until someone mentioned it to me, which speaks to the depth of white privilege. Research shows that people of color may experience shock, shame and even PTSD symptoms after a race-related event — feelings that can be resurfaced when a person recounts the incident. It’s a really big deal for someone to share a racist incident with you, so respond accordingly with empathy (“That must have been terrible for you to go through.”) and thanks (“Thank you for trusting me with your story.”).

BEING WHITE

6. A s a white person, I have several unearned advantages that should be universal.

I can turn on the television and see people who look like me. I can go to a hairdresser and find someone who can cut my hair. I can buy picture books and dolls featuring white people. Due to these small, everyday events, I spend my day knowing I belong. Yet these same events cause many people of color to feel alienated. Dr. Peggy McIntosh identifies more unearned advantages (and shares what to do with them) in her article “White Privilege: Unpacking the Invisible Knapsack.”

7. Some 75% of white people do not have any family or friends who are people of color.

Until recently, the findings from this 2016 study applied to me. This was also the period of my life when I was most skeptical about the existence of racism. This is not to suggest you should drop your white friends. I’m pointing out that the people we talk to the most often reinforce our beliefs. This is especially true if our friends and family — our circle of trust — look like us. So if you are a white person with a white social network who is skeptical about racism (like I was), then listen to people of color. I cstoredecisions.com

ALLYSHIP

9. When someone points out racism as it is happening, respond with thanks.

This has been one of the biggest lessons on my DEI journey. At several points in my life, I have been called out for being racist, and for a long time I responded with anger and disbelief. As a child, I was taught the U.S. was a post-racial society; this caused me to feel shame when I was called racist.

Ibram X. Kendi’s “How to be Antiracist” helped me to see how widespread racism is, that being called racist is a learning moment, and that I should not feel shame when learning. Instead, I should thank the person for taking the time to teach me about racism.

10. Don’t underestimate the power of showing up.

“Showing up” means demonstrating solidarity for a group of people who are marginalized. I’ve struggled with the idea of attending a racial injustice protest because I felt like I did not belong. That I could not and should not contribute. I pushed past this discomfort and went because how we spend our time is meaningful. I don’t always say the right thing, but if I listen and speak from a place of compassion, then I develop connections I did not think were possible.

DEI is not just for people of color, but for everyone.

Studying DEI has wonderful personal benefits (see point two above.)

Practicing DEI at work allows people to show up as their full selves, resulting in higher morale and performance. Yet white people often stop their DEI journey or deny its significance due to anger, guilt or shame. By honestly sharing my mistakes and lessons, I hope others feel like DEI is more accessible. I encourage my white readers to begin or continue their DEI journey through education and allyship. It’s never too late — start where you are.

Hannah Williams is the chief operating officer of Almora Advisors.

She can be reached at hannah@almoraadvisors.com.

May 2022 • CSTORE DECISIONS

23

The Kent Cos.

24

CSTORE DECISIONS •

February 2022

cstoredecisions.com

THE KENT COS. Sets Sights on New

Market Growth

Bill Kent, CEO of The Kent Cos., is targeting $1 billion in revenue as the company ventures into new operating areas, while elevating foodservice and testing self-checkout.

Erin Del Conte • Executive Editor

The Kent Cos., based in Midland, Texas, is aggressively growing through acquisitions and new-to-industry stores, venturing out from its home base in the Southwest to expand in Tennessee and the Carolinas. It’s also moving into new industries, including the urgent care business, as it targets $1 billion in revenue. cstoredecisions.com

February 2022 • CSTORE DECISIONS

25

The Kent Cos.

Today, The Kent Cos. operates 72 convenience stores, including 61 Kent Kwik stores in Texas, Oklahoma, New Mexico and Tennessee, and 11 Bountyland locations in South Carolina and North Carolina. The company also supplies fuel to more than 200 dealer sites, including in Louisiana, Texas and Alabama.

Kent Kwik stores primarily offer Chevron-branded fuel, while the Bountyland stores feature Exxonbranded gas.

RAPID EXPANSION

In a little over two years, the company has nearly doubled its footprint.

In late 2020, the company entered the Tennessee market with the purchase of Buy Fast stores in Fayetteville, Tenn. The acquisition included branded and unbranded dealer supply accounts, a commercial lubes and fuel distribution business, and a bulk plant and office. The move marked the first time the company expanded outside its Southwest roots. It also gave Kent a strategic foothold to support its plans for growth in central Tennessee.

“It’s been a journey,” said Bill Kent, CEO of The Kent Cos. “We’ve been bidding on acquisitions for six to seven years. We’ve seemed to always be second or third and found a lot of public companies, in our opinion, that were overpaying for companies. We just kept swinging, and we got an opportunity to buy into Tennessee.”

In March 2021, The Kent Cos. expanded in the Texas market, acquiring six stores from Connel Oil Co. dba Mr. C’s convenience stores in Mineral Wells and Weatherford, Texas, along with branded and unbranded dealer supply accounts and a bulk plant.

In October 2021, The Kent Cos. purchased 11 Bountyland convenience stores, 51 dealer locations and commercial accounts from Bountyland Petroleum and Bountyland Food Service, based in Seneca, S.C. The acquisition allowed Kent to grow into the South Carolina and North Carolina markets.

“We really made a connection with the owner of Bountyland, David Land, and I think he felt like we were similar to their philosophy, and we certainly thought he was to ours. We were impressed with the operation, the caliber of the people, the facilities and everything,” Kent said.

While Buy Fast and Mr. C’s locations are converting to the Kent Kwik name and image, Kent decided to leave the Bountyland name in place for the time being. “We feel like they have a good name in the 26

CSTORE DECISIONS •

May 2022

Bill Kent, CEO of The Kent Cos., purchased the company from his father in 1984. At the time, the chain had about 12 stores, three lube centers, 30 dealers and 75 employees. Today it boasts 72 stores, 200-plus dealer locations and 1,300 employee positions.

South Carolina market, and we want to try to leverage that,” he said.

Part of The Kent Cos. strategic vision is to reduce its dependence on west Texas and the Permian Basin because of the volatility of the oil and gas market in that region.

“Our headquarters and most of our stores are in the Permian Basin, which is the largest oil field in North America and one of the largest in the world, and with that comes some good things, but with it comes a lot of bad things,” Kent said. “One of those is that you have extreme ups and downs. Prices go up, and things are great, but you can’t find employees because the oil field and the service companies overpay people so egregiously that you can’t even compete.”

“Then the oil industry will collapse with price collapse,” he added. “Then you have people wanting jobs, but the pay rates are distorted, and if you’ve chased those salaries up there, you’re in trouble because the industry changes. So it’s a challenge. It’s a difficult market.”

Because of that volatility, Kent decided to evaluate additional areas of operation outside the Southwest. cstoredecisions.com

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Foodservice Report

Left to Right: Alex Garoutte, director of marketing; Meredith Bright, director of corporate communications and brand development; Bill Kent, CEO and chairman; Katie Roberts, brand development manager; Wesley Robinson, director of operations for Kent Car Wash, Mr. Payroll, Kent Tire, maintenance and safety; Kent Miller, chief financial officer; and Fred Silhanek, vice president of food service.

Kent was attracted to Tennessee, South Carolina and North Carolina as markets of operation because they are similar to Texas in terms of business policies, including low taxation and regulation.

“We look for areas where we think we can grow that share a similar political environment and regulatory environment to what we’re used to in Texas,” he said.

As The Kent Cos. continues to set its sights on future growth, it’s open to additional operating areas.

“We have no desire to be in the Northeast,” Kent said. “We have no desire to be on the West Coast.

Pretty much everything in between there is fair game.”

NTI STORES

While it keeps an eye on further acquisitions, The Kent Cos. is also growing via new-to-industry (NTI) locations. It opened two NTI stores in west Texas in 2021, including a truck stop in Odessa, Texas. It also opened one new truck stop in San Angelo, Texas, 28

CSTORE DECISIONS •

May 2022

in 2022 and it has two more sites currently under construction — a truck stop and a c-store, both in Midland, Texas.

“We’ve dramatically, over the last 15 to 20 years, changed the footprint of our stores,” Kent said. “Our new typical store is about 4,500 square feet. Our travel stops range from 7,000 square feet to 12,000 square feet. It depends on what kind of facility we’re building.”

The exterior of the convenience stores features two brick columns flanking the entrance and a brick façade above the entryway, above which a glass lightup sign features the name Kent Kwik.

Inside, the store features open ceilings, beige tile on the floor, wood elements on the cabinets and red tile along the walls.

“We tile most everything in the store for long-term maintenance. There’s a lot of white, a lot of wood treatments to kind of warm it up,” Kent said. “It’s pretty colorful inside.” cstoredecisions.com

The chain’s immediate focus is upgrading existing sites. It remodels stores each year to keep locations up to date. This year it plans to re-image 10-12 stores to the Kent Kwik brand.

Some of the locations are recently acquired sites, while others are legacy locations in need of facelifts. It also plans to raze and rebuild one of the Bountyland stores, a Tennessee store and a truck stop.

Meanwhile, Kent plans to continue building NTI sites, including in the Fort Worth area near the Connel acquisition, as well as in west Texas.

SECOND-GENERATION BUSINESS

Kent Kwik dates back to 1957, when Kent’s father, the late Buck Kent, founded the company, which began as Kent Oil and Kent Distributors in west Texas.

Bill Kent’s oldest brother ran the business for years, and then his middle brother joined the company and spearheaded the move into the Kwik Lube business. Kent joined in 1979, and his brothers moved on from the business shortly after.

cstoredecisions.com

The Kent Cos. at a glance

Founded: 1957 States of Operation: Texas, Oklahoma, New Mexico, Tennessee, North Carolina and South Carolina Store Count: 72 — 61 Kent Kwik stores and 11 Bountyland locations Management Team: • Todd Watkins, president and chief operating officer • Kent Miller, chief financial officer • Adam Sturdivant, vice president — strategic planning and development • Melissa Martinez, vice president of convenience store operations • Fred Silhanek, vice president of foodservice • Alex Garoutte, director of marketing • Meredith Bright, director of corporate communications and brand development • Jessica Barnhill, director of transportation • Kenneth Woods, director of operations of food service • Gabe Mora, director of convenience store operations of the western region • Wesley Reinhold, director of convenience store operations of the eastern region • Wesley Robinson, director of operations of Mr. Payroll, Kent Car Wash, Kent Tire, maintenance and safety • Clayton Gaeke, director of wholesale fuel • David Land II, director of marketing of the eastern region • Allison Rivas, executive assistant

May 2022 • CSTORE DECISIONS

29

The Kent Cos.

Kent Kwik new-to-industry stores feature open ceilings, beige tile on the floor, wood elements on the cabinets and red tile along the walls.

Kent bought the business from his father in 1984.

At the time, the company had 12 stores, three lube centers, 30 dealers and around 75 employees.

Time will tell if the third generation takes the reigns. Kent’s daughter Alli Brinker is involved with the business part-time, and his son Buck is 14.

“I don’t know how much family I’ll have in the business, but I’m structuring the company so that if they want to be active in the business, there’ll be opportunities. If they don’t want to be, they’re going to have to be good owners, good investors and good stewards of the business and make sure there’s a process to hire good quality leadership to run the company.

And I think we have that now.”

New-to-industry Kent Kwik stores measure about 4,500 square feet, while travel stops range from 7,000 square feet to 12,000 square feet.

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CSTORE DECISIONS •

May 2022

GROWING FOOD CONCEPTS

Foodservice is an important focus for The Kent Cos. It operates seven Huddle House franchises and three Baskin Robbins franchises. It features three Rustic Cafés, a proprietary concept, at its truck stops, and its first freestanding Rustic Café is currently under construction.

“The (Rustic Café) concept was born out of the truck stop business,” Kent said. “It’s really the kind of food you would expect, if you went into a truck stop; that would be just good old comfort food.”

The offering includes fried chicken, chicken-fried steak, steak fingers and burgers.

“If it’s fried, we’re selling it,” Kent said. “Our goal is to have the best chicken-fried steak we can of anybody in the market.”

Rustic Café also serves breakfast 24 hours a day, making it a popular spot for breakfast customers.

The Kent Cos. also runs its own centralized commissary that supplies its stores in west Texas. “It doesn’t cover everything in every market,” Kent explained.

“We’re trying to address that in each new market we’re moving into, which we haven’t done as of yet.”

Kent Kwik’s newer stores feature a proprietary concept called Kwik Eats. Customers order food via touchscreen kiosks, and the food is made to order in the store. The offering includes items such as chicken, burgers and fries.

New builds without a Kwik Eats feature open air coolers and food warmers with grab-and-go food supplied by the commissary.

The Kent Cos. has also been rolling out bean-tocup coffee dispensers to its entire fleet of stores over the past two years. The high-quality coffee and virtually zero waste that bean-to-cup offered sold Kent on the switch. cstoredecisions.com

The Kent Cos.

The Kent Cos. has also been rolling out bean-to-cup coffee dispensers to its entire fleet of stores over the past two years.

“The no waste would’ve been a non-starter, if the product wasn’t good, but in testing the product, everybody really liked the product better. We had more blends. We had more options for guests. We felt like it was a better option for our guests,” he said. “We think we’re making good coffee, and it’s really made a difference in our coffee sales too.”

Kent Kwik has operated drive-throughs since the 1980s. “There are a lot of people that think it’s a new concept for them, but we did our first one in 1988, and we’ve been doing them ever since,” Kent said.

“Now we don’t have them everywhere. We don’t think they necessarily work everywhere, but our drivethroughs do really well.”

Customers can purchase anything through the drive-through except lottery.

Foodservice customers can order ahead via phone and pick up the order in-store. The Huddle House and Baskin Robbins locations offer delivery, and while The Kent Cos. has yet to extend delivery service to its Kwik Eats program, it’s actively looking into delivery options for the convenience stores.

TESTING SELF-CHECKOUT

The Kent Cos. is in the early stages of testing selfcheckout kiosks at five locations.

“So far we’ve been very pleased with that, and it seems to be going pretty well,” Kent said.

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The Kent Cos.

Kent Kwik’s newer stores feature a proprietary concept called Kwik Eats. Customers order food via touchscreen kiosks, and the food is made to order in the store.

Kent expects the program will begin rolling out to its entire fleet of stores by the end of 2022.

Customers who wish to use mobile payment can use the Chevron- or Exxon-branded fuel apps in the forecourt. They can also pay for products in-store or at the pump using Apple Pay. While The Kent Cos. hasn’t moved into other forms of frictionless checkout yet, Kent experienced the technology up close in March, during store tours that were held as part of the National Advisory Group (NAG) Conference in La Jolla, Calif.

“Based off the NAG visit, we saw some frictionless retail that has got our attention and is making us think about what additional options we can bring to our stores,” he said.

BEYOND CONVENIENCE

Kent’s goal for the future is for The Kent Cos. to reach $1 billion in revenue.

“We may get there this year,” Kent said. “That’s been my personal goal to take a business I bought in 1984 that was very small and from my family, and if I could get to $1 billion in revenue, I would feel like I’ve made some progress.”

Today, the company has about 1,300 employee positions, quite a jump from the 75 employees when Kent acquired the business.

As it looks to grow, Kent plans to take the acquisitions as they come.

“We don’t have anybody beating the bushes saying, ‘We have to be here. We have to be there.’ We’re not doing that,” Kent said. “We’re letting the market come to us to tell us, ‘Hey, would you be interested in this group of stores here?’ And we can say yes or no. We have looked at a lot of acquisitions that we’ve not pulled the trigger on. We’re willing to look at just about anything, but it needs to fit with our culture and everything else.”

New stores and acquisitions will fly the Kent Kwik banner in most of its operating area. If it expands in the Carolinas, time will tell if the stores will be branded Bountyland or Kent Kwik.

34

CSTORE DECISIONS •

May 2022

The company is also growing beyond c-stores. In 2020, The Kent Cos. bought Prince Signs, signage company in Houston. It also operates 15 Mr. Payroll check cashing locations, two Kent Tire stores and nine Kent Car Washes.

Last year, The Kent Cos. entered the urgent care market when it acquired WesTex Urgent Care, which operates three urgent cares in the Texas market.

“We bought into the urgent care model with a doctor, who’s a friend of mine, named Terry Beck. We want to build a quality urgent care brand with him and the doctors,” Kent said. “We don’t have anything to do with the medical care, but we think we can help with the brand development, with the locations and with the consistency of it. That’ll be a separate part of what we do, but it’s another growth vehicle for us.”

Kent divested its Kwik Lube business to Valvoline Inc. in 2020 but kept the real estate. Today it operates one NTI Kent Lube Fast Oil Change Center in Midland that was an exception to the non-compete agreement.

Now that Kent Kwik is moving into new parts of the country, Kent hasn’t ruled out moving into the lube business again in new regions.

The Kent Cos. also operates Express Petro Transportation, hauling fuel with its trucking fleet that has grown to 24 trucks in the last five years. “That has grown tremendously,” he said. “Every one of these acquisitions we’ve made, we’ve bought the hauling assets that the companies have.”

The trucking fleet proved to be a game changer during COVID-19 given driver shortages among common carriers. “It made a world of difference to us because we stayed in product when others didn’t have product,” Kent said.

The Kent Cos. is also a shipper, shipping fuel from the Gulf Coast to west Texas.

“The company’s grown a lot and I’m very proud of that,” he said. “I’m very proud of my people, my management team and my staff. We want to create opportunities for people. We’re going to continue to grow. We’re going to do a lot of it organically. We’re going to keep building sites.” CSD cstoredecisions.com

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Category Management | Candy

Candy, Gum & Mints

REBOUND

Even with continued supply chain issues resulting in fewer manufacturer partner promotions, candy, gum and mint sales are increasing and retailers expect them to continue growing.

Marilyn Odesser-Torpey • Associate Editor

36

CSTORE DECISIONS • May 2022

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Category Management | Candy

Candy, gum and mints are experiencing upswings in sales at convenience stores after two years of pandemic challenges.

Candy, gum and mint sales at convenience stores rose 13.2% to close to $6.4 billion over the past year, according to NielsenIQ Total U.S. Convenience data for the latest 52 weeks ending Feb. 26, 2022. Chocolate sales have grown 8.3% to close to $3 billion, non-chocolate confections ticked up 18.3% to more than $2 billion, gum grew 14.4% to over $731 million and mints rose 15% to over $205 million.

Two years ago, to date, gum sales had decreased by 16.7% and mints 14.2%, making 2022 a rebound year for both categories, the Nielsen research showed.

At Rutter’s 79 convenience stores in Pennsylvania, Maryland and West Virginia, candy sales are “on fire through 2022,” reported Joseph Bortner, center store category manager for Rutter’s. “All sub-categories are experiencing growth on units and same-store sales.”

Rutter’s has seen double-digit growth in sales of both chocolate and non-chocolate candies.

Chocolate has slightly outpaced non-chocolate confections.

Bortner noted that the pandemic had impacted the gum and mint sub-categories particularly hard.

“A large portion of the demand comes from the consumers’ need for refreshment,” he noted.

“As social distancing and mask-wearing became the norm, the consumer need for refreshment declined.”

This year, he said, early signs point to a strong rebound in sales to levels beyond pre-pandemic.

“We’re optimistic that this trend will continue through the year,” he noted. “I think we’ll continue to see consumers shift to larger pack types as wallets get tighter due to inflation and consumers fight to find value in their purchases.”

PRICING & PROMOTIONS

Rutter’s is continuing to adjust pricing strategies as costs rise, Bortner noted. The company is also testing theories on building baskets through consumer value-added offerings.

“By balancing the two we anticipate a strong year in confection,” he said.

While traditional suppliers still provide product innovation, supply chain issues continue to be a challenge for all, and Bortner said he believes retailers will see some of them tighten their belts to focus on core brands and items.

In the meantime, Rutter’s will continue to assertively merchandise candy, gum and mints “just about everywhere in the stores,” from inline and perimeter displays to counter racks and coolers.

Chocolate sales have grown 8.3% to close to $3 billion, per NielsenIQ, and have slightly outpaced non-chocolate confections at Rutter’s.

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CSTORE DECISIONS •

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cstoredecisions.com

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Category Management | Candy

Rutter’s will continue to assertively merchandise candy, gum and mints “just about everywhere in the stores,” from inline and perimeter displays to counter racks and coolers.

Periodic promotions offer two-fers on gum and mints and mix-and-match pricing on all king-size and standard items.

The company is also testing promotional strategies such as bundling and volume pricing options to drive consumers to the stores instead of just relying on the usual impulse sales to grow confection baskets.

“Early signs point to positive results driving standard sales up more than double in our test stores,” Bortner said.

Even with recent price increases, chocolate candy dollar sales have grown by double digits over the last year at FastBreak Convenience Stores, said Tim Cote, senior buyer for the chain, which operates 33 stores in Oregon and California. The increase in unit volume is lower, somewhere in the low single digits.

fast facts: • Candy, gum and mint sales rose 13.2% to close to $6.4 billion for the 52 weeks ending Feb. 26, 2022, per NielsenIQ. • As prices rise, retailers are looking to promotions to help attract impulse buys.

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Without the support of manufacturer promotions during the COVID-19 pandemic, non-chocolate confection sales have achieved only a small increase in both dollars and units.

The biggest change Cote has seen is the decrease in customer trade-up from standard to king-size bars.

Both gum and mint sales have risen slightly over the past four months. Gum packaged in travel cups are the top sellers in that sub-category.

“I expect to see gum and mint sales continue to struggle because they are tightly related to tobacco sales,” Cote explained. “As tobacco sales continue (to) fall, gum and mints will be in lockstep.”

To encourage impulse purchases, FastBreak uses shippers to supplement inline and peg board candy displays. Aggressive promotions include two-fers and coupons on the shippers distributed in-store.

“We also hold little contests to reward staff members for promoting the products,” Cote added.

Despite widespread supply chain issues, Cote noted that in-stocks of turn goods are pretty good and are, in fact, improving quickly. But regarding line extensions and promotions, he expects those will come into play by Q3 of this year due to supply chain interruptions. CSD

cstoredecisions.com

Category Management | Snacks

CUSTOMERS

REACH for Snacks

Customers are snacking more, and c-stores are reaping the benefits in terms of growing sales.

Howard Riell • Contributing Editor

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H

s

The latest pandemic surge may have faded, but many of the habits Americans developed over the past two years remain, including how they snack.

Not only are customers snacking more, but they show an increased desire for larger packs of jerky and more individually packaged snack items.

Meat snacks fit well within the way consumers want to eat today, which includes a desire to eat with more purpose, and not necessarily by following a diet.

SALES CLIMB

Snacks across segments are showing double-digit growth as more traffic returns to c-stores postpandemic.

Dried meat snacks recorded $2.20 billion in sales, leaping by 19.6% for the 52 weeks ending March 20, 2022, according to total U.S. convenience store data from Chicago-based research firm IRI. Within the dried meat snack category, jerky dollar sales of $967 million were up 21.8% year over year, but were eclipsed by “all other” dried meat snacks at $1.20 billion, up 18% for the period.

Salty snack sales reached $6.26 billion, a gain of 15.1% for the same 52-week period. Within the salty snack category, potato chips led the way with sales of $1.90 billion, up 14.8%. Tortilla/tostada chips rang in at $1.34 billion, up 18.4%. Sales of bakery snacks were $960 million, an uptick of 17.1%.

Dried fruit snacks recorded sales of $138 million, a whopping 35.1% annual increase. Snack bars, granola bars and clusters recorded sales of $782 million, a 21.4% gain. cstoredecisions.com

Category Management | Snacks

Snack Sales Trend Upward

Snack dollar sales rose across segments at convenience stores for the 52 weeks ending March 20, 2022.

EMBRACING SNACKING

David Arens, division merchandise manager for the Army & Air Force Exchange Service (AAFES), which operates 589 Express convenience stores and 122 main stores, said salty snacks are the leading category, up 9% over last year for the chain.

“Since the beginning of the COVID-19 pandemic, stores have seen shoppers embrace snacking more,” Arens said. “As shoppers are staying home more or choosing to gather at homes, snacking overall has increased. Shoppers are also looking for the ready-to-eat convenience of snacks.”

Two-for offers continue to do well at c-stores across the nation as well as at Express stores. Secondary displays and shipper displays have provided a reliable lift in sales.

Tie-in and cross-promotional offers such as snack-andbeverage combo deals have performed well.

Dollar Sales Current

1-Year % Change

Bakery Snacks

$960 M

17.1%

Cookies

$924 M

15.8%

Dried Meat Snacks

$2.2 B

19.6%

All Other Dried Meat Snacks

$1.23 B

18.0%

Jerky

$967 M

21.8%

Dry Fruit Snacks

$138 M

35.1%

Other Snacks

$375 M

19.3%

Nutritional Snacks/Trail Mixes

$198 M

11.8%

SUPPLY & MERCHANDISING

Chocolate Covered Salted Snack

$168 M

30.2%

With supply chain issues continuing, handling out-ofstocks has become a crucial task. Express stores work closely with vendor partners to know when product will be available and identify those that may be out of stock for an extended period. Retailers are supplementing inventory levels by exploring alternative vendors and making one-time buys for new brands, which also increases assortment variety.

As supply chain issues and inventory strains continue to pose challenges, Arens said stores are staying flexible and creative to keep shelves stocked and continue providing shoppers with the products they want.

“The snack industry is forecasted to continue growing,” Arens noted. He expects to see better-for-you snack items such as gluten-free, low-sugar and organic snacks continue to drive categories.

Promotional offers and execution will continue to serve as the drivers of snack sales increases, Arens said.

“Ensuring clear, attractive and well-placed signage for promotions will help,” he said. “Creating promotional events to tie in categories such as chips and a roller grill item help increase the basket.”

The snack category will continue to see so-called ‘aspirational foods’ making waves within the industry.

With consumers striving to better themselves, more organic options will also become easier to access, as well as more options with nutritional callouts, like protein, collagen, low-sugar, low-fat and low-sodium.

Consumers today are better educated than they’ve ever been, and they expect the brands they support to align with their heightened expectations. CSD

Carob/Yogurt Covered Snack

$8.12 M

6.5%

Apple Chips

$450,085

22.6%

Salty Snacks

$6.26 B

15.1%

Potato Chips

$1.9 B

14.8%

Tortilla /Tostada Chips

$1.34 B

18.4%

Other Salted Snacks (No Nuts)

$902 M

10.2%

Cheese Snacks

$880 M

13.1%

Corn Snacks (No Tortilla Chips)

$469 M

20.6%

Pretzels

$295 M

23.9%

Ready-to-Eat Popcorn/Caramel Corn

$254 M

12.6%

Pork Rinds

$214 M

7.5%

Snack Bars/Granola Bars/Clusters

$782 M

21.4%

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Product

Source: IRI OmniMarket Total Store View, Total U.S. Convenience data for the 52 weeks ending March 20, 2022.

fast facts:

• Salty snack dollar sales grew 15.1%, while dried meat snack dollar sales ticked up 19.6% for the 52 weeks ending March 20, 2022.

• As supply chain issues continue retailers are staying flexible and creative to keep shelves stocked.

cstoredecisions.com

SWEETS & SNACKS EXPO

Category Management | Tobacco Legislation Watch

Tobacco’s

Ever-Evolving

Legislative Landscape The tobacco/nicotine category continues to face significant regulatory challenges.

Anne Baye Ericksen • Contributing Editor

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There have been several landmark decisions shaping the tobacco/nicotine category for convenience stores.

The 2007 Tobacco Control Act granted the Food and Drug Administration (FDA) market authority over tobacco products. In 2016, the agency deemed vape products as tobacco products.

And with the passage of the omnibus budget bill in mid-March, Congress amended the definition of tobacco products as “any product made or derived from tobacco, or containing nicotine from any source, that is intended for human consumption.” The language “containing nicotine from any source” now places synthetic nicotine products under the FDA’s authority.

“It was always a matter of when, and not if, the FDA would gain regulatory authority over synthetic nicotine. Without enforcement discretion or court injunctions, the effect on c-stores will be felt most in synthetic nicotine pouches and disposable vaping devices,” said Gregory Conley, president of the American Vaping Association.

What’s more, the timeline for manufacturers to apply for and gain authorization is limited. Manufacturers of synthetic nicotine products on store shelves as of April 14 have until May 14 to submit pre-market tobacco applications (PMTAs).

“NACS is advising any retailers who sell synthetic nicotine products to verify with the manufacturers of those products that they have submitted PMTAs by the May 14 deadline. If they have not submitted PMTAs, any retailers selling the products must remove them from shelves by May 14 or possibly face enforcement from the FDA,” cautioned Anna Ready Blom, director of government relations for the National Association of Convenience Stores (NACS).

Items with an accepted PMTA can remain on sale until July 13. Eligibility beyond that depends on the FDA’s final ruling.

Additionally, any product that had already been through the PMTA process, but denied market approval, cannot reapply. Nor can any tobacco-derived product that was modified to use synthetic nicotine after receiving a market denial order. cstoredecisions.com

May 2022 • CSTORE DECISIONS

47

Category Management | Tobacco Legislation Watch

two years of pandemic-related business interruptions, youth vaping on the decline and news of FDA actions, some are understanding that this issue can’t be properly addressed with new prohibitions,” • March 15: Congress amended the definition he said. of tobacco products as “any product made or In California, a statewide flavor ban was derived from tobacco, or containing nicotine postponed during a petition drive to turn it from any source, that is intended for human into a ballot issue, for which it qualified. This fall, voters will make the decision. consumption.”

Perhaps the most assertive local regulation • April 14: FDA authorization takes effect. is the birth date cutoff, instead of a May 14: Deadline for manufacturers of • minimum age, in Brookline, Mass. No one synthetic nicotine products on store shelves born later than Jan. 1, 2000, can buy any as of April 14 to submit pre-market tobacco tobacco/nicotine product within the city. applications (PMTAs). Items without accepted Local c-stores immediately filed a lawsuit claiming the ordinance unfairly penalizes PMTAs must be removed immediately. their businesses and denies some adults July 13: Items without FDA market approval • access to the lawful products. At this time, no must be removed from shelves. additional action has been taken.

On a more encouraging note, the FDA granted a few market approvals last year, including Vuse Solo and two of its tobacco-flavored MENTHOL MAKEOVER replacement pods. In December it granted a Meanwhile, the industry still awaits the FDA’s modified-risk market order for 22nd Century Group’s decision on a nationwide menthol ban.

VLN King and VLN Menthol King combustible “NACS strongly opposes a ban on menthol cigarettes, a first for the category. This year, it is cigarettes and flavored cigars because it will push expected to decide on the outstanding PMTAs. users to the illicit market, undermining the efforts “We are watching the news one day at a time and investments of responsible retailers in our while monitoring our inventory conditions to ensure industry,” said Ready Blom. “If the FDA moves we avoid any large on-hand situations,” said Ben forward with the rulemaking, NACS plans to file Brooks, category manager for Nouria Energy. The comments on behalf of the industry, and we are also Worcester, Mass.-based company operates 146 planning to organize a comment campaign where convenience stores across five states. “We are also retailers can file individual comment letters.” ensuring with our vendor partners that if a product However, not all stores will be impacted equally. needs to be removed from the shelf, we will have an Some retailers may experience minimum change. avenue to return the product.” CSD “The proposed menthol ban does not affect us as most of our locations are rural, and menthol cigarettes are a very small percentage of our overall cigarette sales,” said Sean Bumgarner, vice president at Scrivener Oil Co., which operates 12 • Congress amended the definition of tobacco Signal Food Stores in southwest Missouri. products as “any product made or derived from tobacco, or containing nicotine from any source, CITY LIMITS that is intended for human consumption.”

Conley said flavor bans remain a hot topic, with • The National Association of Convenience Stores state proposals in Illinois, Connecticut, Maine and plans a letter-writing campaign if the Food and Hawaii. However, he believes the movement for bans has slowed.

Drug Administration pursues a menthol ban.

“Thus far, we have been pleasantly surprised at • This fall, California voters will decide on a flavor ban. the reticence displayed by some state legislators to target tobacco and nicotine products. After

2022 Synthetic Nicotine Market Approval Timeline

fast facts:

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cstoredecisions.com

With around-the-clock quality and value, 24/7 is the brand that won’t stop.

Foodservice | Technology

TECHNOLOGY IS RAISING THE BAR

FOR FOOD PROGRAMS 50

CSTORE DECISIONS •

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cstoredecisions.com

During the COVID-19 pandemic many foodservice customers came to expect technology-fueled options such as order ahead, delivery and subscription programs.

For some retailers, these services may become reliable boosters for their foodservice sales.

Marilyn Odesser-Torpey • Associate Editor

Technology is playing a larger role in convenience store foodservice today with online and app-based menus, order-ahead capabilities and delivery continuing to accelerate.

Largely due to COVID-19, the entire limited-service segment is increasingly moving towards order-ahead technology, stated Mike Kostyo, trendologist with Datassential research firm. According to Datassential’s 2021 “C-Store Foodservice Keynote Report,” 41% of convenience store customers say they want the order-ahead option, and that number increases for younger customers.

Consumers are also increasingly relying on delivery to fulfill their foodservice orders.

“In Datassential’s 2021 ‘Annual Trends Report,’ 90% of consumers changed their delivery behavior because of COVID, and the vast majority increased their delivery usage,” he explained.

Before adding order-ahead and delivery options, retailers should make sure they have a sufficient digital infrastructure to take in and process the orders and a place to store the orders for pickup.

Currently, the Keynote Report found, only about 13% of convenience stores offer foodservice delivery.

A singular opportunity for c-stores is the option for consumers to combine foodservice and a wide range of retail products in a single delivery order, which most foodservice operators cannot match, Kostyo suggested. The caveat for retailers is that consumers almost universally agreed in Datassential’s 2020 “Food @ Home Keynote Report” that the food they receive should be of the same quality they would get in the foodservice operation itself.

S R

S

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May 2022 • CSTORE DECISIONS

51

Foodservice | Technology

In the “Food @ Home Keynote Report,” operators identified the cost of using third-party delivery services such as Grubhub as the biggest pain point, he said.

Another concern is that operators lose control over the final product once it is picked up by the third-party delivery driver.

A third technological advance that is making inroads in the quick-service sector and may have applications for c-stores is subscription programs, Kostyo continued. Most of these programs charge a monthly price for an unlimited or set number of food or beverage items.

The key opportunity with a subscription program is upselling additional items to the consumer.

“The consumer stops in for that cup of coffee each morning and adds a doughnut or breakfast sandwich to their order, or they see their gas is a little low and fill up at the pump,” he explained. “If you give the consumer a great brand experience, you can also turn that new habit into long-term brand loyalty.”

Kostyo noted that although subscription programs in foodservice are not yet common, Datassential’s “Five in Five Focus Report: Subscription Models 2021” found that “a whopping 60% of consumers” say they are interested in lunch or dinner subscription options.

INTRODUCING ORDER-AHEAD

For its new quick-service fresh Mexican restaurant concept Tic Tac Taco, which debuted eight months ago inside two of its Ohio stores with big plans for future expansion, Duchess convenience stores included mobile order-ahead and delivery via DoorDash options. To date, about 10-15% of orders each day come in through the order-ahead system, according to Nathan Arnold, marketing director for the chain, which

fast facts:

• Datassential found 90% of consumers changed their delivery behavior because of COVID-19, with most increasing their usage.

• Only 13% of c-stores offer foodservice delivery, per Datassential.

• C-stores have a unique opportunity to combine foodservice and a range of retail products in a single delivery or pickup order.

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CSTORE DECISIONS •

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At Duchess, to date, about 10-15% of orders for its Mexican restaurant concept come in through its Tic Tac Taco’s order-ahead system each day.

has 119 stores in Ohio and West Virginia.

Customers can order through the Duchess website or app. Arnold pointed out that the order-ahead and delivery options have helped the c-store tap into new markets.

“We see offices placing group orders for pickup and delivery,” he said. “Within the next couple of months, we plan to offer catering over our mobile app.”

To determine what packaging would assure that their foods would maintain their just-made integrity, Duchess management ordered delivery from numerous foodservice establishments — including their own.

Some tinkering with their existing packaging materials yielded the best fit for their needs.

Most of the mobile and delivery orders are for multiple items, Arnold noted. Instead of one entrée, they usually consist of two, three or four.

There’s no doubt delivery and order-ahead options will slow down somewhat as consumers get back to their normal routines again, but overall, they will be at much higher levels than we saw prior to the pandemic for the long-term, Kostyo said.

“When you look at how much younger consumers love options like delivery and order-ahead technology … it’s clear that these options are the future,” he concluded. CSD cstoredecisions.com

Foodservice | Packaging To Go

C-Stores Need to Carry the Pandemic’s Packaging Lessons Forward When it comes to packaging, c-stores should prioritize functionality, appearance and portability.

Tim Powell • Foodservice IP

The COVID-19 pandemic fueled a two-year spike in the already growing demand for portable, deliverable food. As local lockdowns occurred across the U.S. (and globally), national and multinational convenience store chains developed systems and approaches to provide safe, portable food to customers regardless of the pandemic’s status.

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CSTORE DECISIONS •

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Foodservice | Packaging To Go

A major component of this adjustment was packaging. Foodservice IP conducted in-depth research in December 2020 and January 2022 to identify key convenience store trends. Our research indicates that packaging is key to convenience store success and that the three main packaging components stores need to prioritize are functionality, appearance and portability.

FUNCTIONALITY

Functionality is a key component of successful packaging. Containers should keep cold foods cold, hot foods hot and messy foods more manageable. A critical trend Foodservice IP has identified is that hot beverage vehicles (e.g., disposable insulated cups and insulating sleeves) have experienced a significant decline in use during the pandemic.

While there could be a few causes for this, one could be the increasing popularity of reusable travel mugs for hot beverages. Some convenience stores have responded to this trend by selling branded travel mugs that provide customers discounts for use. This addresses both customer demands for sustainable, functional packaging, while also promoting customer loyalty.

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CSTORE DECISIONS •

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APPEARANCE

According to our data, packaging appearance was a key factor in how consumers selected products at convenience stores. The top three qualities they looked for when assessing the freshness and quality of food products were: • Expiration Dates (51% of consumers): Is it clear and visible?

• Food Visibility (45%): Can the consumer inspect the food in the packaging to ensure its freshness?

• Durability (20%): Has the packaging sufficiently protected the food or beverage so far? And will it continue to do so until the buyer has consumed the product?

Consumers use packaging appearance to determine the product’s quality, freshness, and ultimately, whether or not they will purchase the item.

PORTABILITY

As I noted at the beginning of this article, the pandemic caused a spike in demand for delivery and grab-and-go food, but that trend had been growing well before March 2020. While in-person dining is making a rebound, delivery is here to stay, including for convenience stores. 7-Eleven clearly recognized that when it created its delivery cstoredecisions.com

FOODSERVICE IP’S TAKEAWAY

Packaging is not exciting. It may be tempting, therefore, to overlook it and allocate resources elsewhere. If you have designed your packaging correctly, your customer may not even truly notice it. But if something goes wrong during delivery, and the customer

“

In a time where delivery is a key driver of growth, convenience store companies who overlook packaging do so at their peril.

“

subscription service, 7NOW Gold Pass.

Packaging, therefore, needs to prevent spills, maintain proper temperature and protect the food’s structure during the delivery process.

Keep in mind that the person transporting your products may not be the end consumer and may not protect your items the way an in-person shopper would. Packaging should not just be transportation-proof, it needs to be third-party delivery app-proof.

blames the packaging, they may not order your products in the future.

In a time where delivery is a key driver of growth, convenience store companies who overlook packaging do so at their peril.

Tim Powell is a principal at Foodservice IP, a management consultancy based in Chicago. He can be reached at tpowell@foodserviceip.com.

Operations | LED & Energy Efficiency

Calculating Energy Savings Switching to LED lighting and purchasing modern, Energy Star-certified equipment are among strategies to reduce energy costs at c-stores.

Howard Riell • Contributing Editor

More convenience store operators are prioritizing measures to lower energy costs. One of the first steps for many retailers is to evaluate the energy savings they could obtain by switching to LED lighting.

LEDs are much more energy efficient than incandescent or fluorescent bulbs. Efficiencies will vary between models, but on average only about 10% of the electricity going into an incandescent bulb is released in the form of light, while the remaining 90% produces heat. LED lights, by comparison, average about 40% efficiency in producing light, so retailers can use a lower wattage to produce the same amount of illumination.

High-quality LED lights also have a longer lifespan and can last for many years. Solid-state LED bulbs are also much more resistant to bumps and shocks, making them great in display cases where customers retrieving products may accidentally bump the light fixture in the case.

Another plus is that LED lighting is versatile and can be designed to mimic almost any kind of 58

CSTORE DECISIONS •

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light, including neon, incandescent, Edison bulbs and more. These make them excellent choices for exterior applications such as signage and illuminating parking lots.

ENERGY SAVINGS

How much money do LED lights save retailers?

“That depends on the local cost of electricity,” noted Kevin Banas, project manager for CiniLittle International Inc., the Germantown, Md.based global consultancy.

A 100-watt lightbulb running around the clock would use 876 kilowatt-hours.

“In Chicago, our average electrical cost is currently 15.3 cents per kilowatt-hour, meaning that bulb costs almost exactly $134 to run for the year. An equivalent LED bulb using just 16 watts would use 140 kilowatt-hours, costing a little over $21 to run for the year.”

A high-quality LED bulb from a reliable manufacturer should last a minimum of 15 times longer than an equivalent incandescent, Banas said. “In the case of a common household LED replacing a 100-watt bulb and using retail prices, over a 15-year period you would save $14.50 in replacement incandescent bulbs and $1,695 in electrical utilities.”

cstoredecisions.com

How does that translate to retailers?

Getting reliable numbers on which to base the decision to switch isn’t always easy, according to Sam Odeh, president of Power Buying Dealers (PBD USA) in Elmhurst, Ill., which operates 25 owned and franchised locations in Illinois, Georgia and Florida. “Yes, we are in favor of LED and yes, we (garner) savings from the conversion to them.

But frankly, it’s so hard to benchmark because we are constantly adding and remodeling sites with more demand on electricity usage.”

LED fixtures can save $37 per fixture per year, said Brian Lally, Exchange corporate energy manager for the Army & Airforce Exchange Service (AAFES), which operates 589 Express convenience stores and 122 main stores.

“With most Expresses having 80 to 100 fixtures, average yearly savings is approximately $3,000 to $3,700 per store,” he added.

Lighting selections depend on use and illumination requirements, Lally has found.

“High light levels are used for reading product labels and at the point of sale,” he said. “Lumens output is always a critical consideration specific to location and wattage.”

REFRIGERATION AND DISPLAYS

Lighting fixtures are far from the only places that smart retailers look to cut costs.

A major expense in c-stores is refrigeration systems for display cases and bottled beverages, Banas explained. Purchasing modern, Energy Star-certified equipment for free-standing cases will help keep operating expenses low, while walk-in coolers can be designed with thicker, higher R-value (measures an insulating material’s cstoredecisions.com

capacity to resist heat flow) walls and efficient refrigeration systems.

“Be sure to keep all heating and cooling equipment well maintained, as equipment in disrepair will show its age by losing energy efficiency,” Banas said.

New refrigeration and HVAC controls are excellent opportunities for convenience store energy savings, Lally said. “LED lighting strips can be added to refrigerator and freezer doors and reach-in coolers, as LEDs don’t put out as much heat as fluorescents. Vestibules can also reduce heating and cooling loads.”

C-stores can also save on lighting by installing dimmers and timeclock controls, and by turning lights off when not in use, Lally added. CSD

fast facts: • Keep heating and cooling equipment well maintained. Equipment in disrepair will lose efficiency.

• Switching to LEDs can help decrease energy costs. One retailer found the switch saved his stores $37 per fixture per year.

May 2022 • CSTORE DECISIONS

59

The Tech Innovation Awards

2022 Tech Innov

7-Eleven Expands

Convenience Through Tech 7-Eleven’s success with technology and innovation stems from the chain’s emphasis on convenience for customers, particularly with its accessible delivery.

Emily Boes • Associate Editor

Rampant technology innovation continues to inspire c-store chains to offer faster, more convenient and individualized options and platforms for their customers.

Early on, Irving, Texas-based 7-Eleven questioned how technology innovation could help it grow, and then wasted no time testing and implementing new innovations. Over time, the c-store behemoth has evolved to remain on the cutting edge of technological advancements in the convenience store industry.

CStore Decisions is recognizing 7-Eleven as part of our Tech Innovation Awards for its diligent focus on its delivery app, 7Next research and development projects, and its commitment to technological adoption.

“Our mission from a digital perspective is set up to deliver the vision and mission of the 60

CSTORE DECISIONS •

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company: revolutionize convenience to delight customers, stores and franchisees — enabling 7-Eleven’s vision to be customers’ first choice for convenience, anytime and anywhere,” said Raghu Mahadevan, senior vice president and chief digital officer of 7-Eleven, which operates, franchises and/or licenses more than 13,000 stores in the U.S. and Canada.

Along with programs for customers, the chain also developed technology initiatives for its store leaders, associates and franchisees, such as its 7MD device. The 7MD mobile, handheld point-of-sale device brings speed to ordering, inventory control and checking out customers.

cstoredecisions.com

ovation Awards

DELIVERY DRIVES SUCCESS

One of 7-Eleven’s biggest digital accomplishments is its 7NOW delivery app, which can provide access to 3,000-plus products. 7NOW was launched in 2018, and the service has expanded to reach throughout the U.S. Groceries, overthe-counter medicines, household goods and a range of food and beverage options, including pizza, Slurpee drinks, beer, wine and more are all available to customers 24/7.

“We believe we are in a unique position because of our proximity to the customer — more than 50% of the U.S. population lives within two miles of a 7-Eleven or Speedway store,” said Mahadevan.

Additionally, the delivery locations are flexible.

Customers can receive delivery wherever they find most convenient using 7NOW Pins, including cstoredecisions.com

May 2022 • CSTORE DECISIONS

61

The Tech Innovation Awards

One of 7-Eleven’s biggest digital accomplishments is its 7NOW delivery app, which can provide access to groceries, over-the-counter medicines, household goods and a range of food and beverage options.

PLANNING AHEAD

parks, beaches, sports fields, entertainment venues and other public places.

As it has with its 7-Eleven stores, the company plans to expand 7NOW delivery to Speedway stores across the U.S. 7-Eleven also launched the 7NOW Gold Pass, which offers customers the ability to have their delivery fee waived for a monthly cost of $5.95. With roughly three delivery orders per month, the service pays for itself.

“The introduction of the 7NOW Gold Pass is part of a company-wide commitment to bring value and delight to every customer experience, both in and out of the store,” Mahadevan remarked.

R&D LOOKS TO REDEFINE CONVENIENCE

7-Eleven’s research and development (R&D) center, 7NEXT, provides a space for the chain to discover new ways to “expand digital touchpoints with customers while chasing disruptive ideas that will define the customer experience and store of the future,” said Mahadevan.

It aims to solve customer problems and develop a quicker and more personalized shopping experience in and out of the store with new products and services. Its proprietary technology allows 7-Eleven to test programs before scaling them to customers.

One example of 7-Eleven’s R&D work is its cashierless store at the Store Support Center. An assortment of products, including hot and fresh food and beverages, are supported by the frictionless tech.

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May 2022

After living with the pandemic and customers’ shifted perceptions and priorities, 7-Eleven knew one of the best ways to cater to its customers was by accelerating “critical technology initiatives within the 7-Eleven app to ensure customers can shop at 7-Eleven the way they want to shop: safe and convenient while also being rewarded,” according to Mahadevan.

In 2022 and beyond, 7-Eleven plans to capitalize on its goal of increased ease and access by expanding the delivery from Laredo Taco Co. and Raise the Roost, its two major restaurant banners. The chain is also working to provide further assortment options in popular categories such as non-alcoholic beverages, snacks, and beer and seltzers.

“We want to continue to provide our customers with what they want,” Mahadevan said.

In another move to use technology innovation, 7-Eleven partnered with U.S. robotics company Nuro to launch the first commercial autonomous delivery service in California.

“We’ll have more exciting autonomous delivery announcements to come in the future — so stay tuned,” Mahadevan revealed.

Mahadevan believes that personalization will be important for loyalty and convenience in the c-store industry regarding the increasing popularity of digital/virtual services.

“For our customers, the top priority is to deliver a delightful personalized experience and cater to immediate adjacencies, by making an already-convenient experience even more convenient,” he said.

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The Tech Innovation Awards

Choice Market T Choice Market’s devotion to technology innovation drives its ongoing and future projects, with efficiency and ease for the customer being top priorities.

Emily Boes • Associate Editor

Choice Market may be a small chain, with three locations in Denver and three set to open in Colorado, but that hasn’t stopped it from letting technology guide its path since it was founded in 2017.

CStore Decisions is recognizing Denver-based Choice Market for its dedication to convenience through frictionless modernization and its omnichannel approach to convenience retailing.

OMNICHANNEL APPROACH

The Choice located at 939 Bannock St., in Denver’s Golden Triangle neighborhood, opened in 2021, featuring a frictionless experience for customers. The 5,000-square-foot space holds about 3,000 SKUs, and once customers grab their items, they are free to walk out of the store.

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Choice Market began from the idea of creating an omnichannel experience in a convenience store environment.

“But with one store obviously, we had to really start small and work with existing platforms through our point-of-sale, for instance, for things like self-checkout and online ordering,” said Mike Fogarty, founder and CEO of Choice Market.

Around 18 months ago, Choice invested in its custom omnichannel experience with a platform built solely for the business, which includes a new mobile app, web application, in-store kiosk and frictionless checkout platform. The new platform launched new procedures and training both for staff and customers.

cstoredecisions.com

t Takes on Tech “So all of these items, all these changes, were carefully designed with our customer in mind, in terms of providing them the most convenient experience possible,” he said.

FRICTIONLESS FOR THE FUTURE

Implemented in Choice’s latest location at 939 Bannock St., in Denver’s Golden Triangle neighborhood, the frictionless platform — Choice: NOW — includes a check-in kiosk at each entrance and exit where customers can scan QR codes.

The 5,000-square-foot space holds about 3,000 SKUs, and once customers grab their items, they are free to walk out of the store. A notification is then sent confirming that a receipt will be delivered, which usually then arrives within five minutes.

Additionally, the technology allows customers to order prepared food from the store’s full kitchen ahead of time through the mobile app or through one of the kiosks or traditional point-of-sale methods.

“So it’s a really cool and unique combination of both the online ordering and the personless checkout.

I think we’re one of the few in the world that have actually combined those two,” Fogarty elaborated.

Choice is looking to apply this platform to all stores after testing it in its initial location. cstoredecisions.com

May 2022 • CSTORE DECISIONS

65

The Tech Innovation Awards

Left: When customers enter the Choice Bannock location, they scan their mobile app upon entry, select their groceries and prepared meals, and then walk out without a traditional checkout, while the app takes care of the rest.

Below: Choice Market plans to implement Mini-Mart, a small-format, fully autonomous market, in a number of applications, including hospitals, airports, universities and lower-income neighborhoods.

Choice’s app allows for orderahead and delivery via electric vehicles of anything in the store. Its loyalty program lets customers earn points for purchases with the reward of free items and future discounts.

Customers can also filter their shopping by recipes, some of which have been created by influencers and local chefs.

“We just feel that frictionless checkout is the future and it’s convenient and fits this channel extremely well,” Fogarty said.

GROWTH ACROSS APPLICATIONS

Choice Market plans to implement Mini-Mart, a small-format, fully autonomous market, in a number of applications, including hospitals, airports, universities and lower-income neighborhoods.

“So Choice isn’t just one thing; it really will evolve with the neighborhoods it serves. In this case, there’s a lot of communities that don’t have access to fresh food,” said Fogarty. “…

So we see this as, if we can keep our overhead down and have these autonomous markets close to the point of consumption, we feel that the potentially good use case can provide these communities with much needed fruit, vegetables, perishable items, etc.”

Choice Mini-Marts will be around 200-400 square feet with 400-600 SKUs and include both refrigerated and dry products. Customers can authorize both app and traditional payment methods before entering the door. They then will shop, leave and be charged for their purchases.

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May 2022

UPCOMING PROJECTS

In addition to Choice’s current technological projects, the chain is looking into personalized AI product recommendation. Robot delivery and vending is also on its radar, such as at football games and tailgates.

Choice is in the early stages of implementing robotic kitchens and determining opportunities for 24/7 operating hours with prepared and customizable meals available even without kitchen staff.

Choice’s priorities in determining whether or not to pursue a new project lie in improving the customer experience, increasing the efficiency of the business and reducing the chain’s carbon footprint.

“If we can make the experience in-store very efficient and convenient and high-quality and within close proximity to where (customers) live, work or play, — that’s our strategy,” said Fogarty. CSD

cstoredecisions.com

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PRODUCTShowcase

Eastern Mediterranean Hummus Line Mann Packing Co. and Mezete partnered to bring a line of popular hummus products to American shoppers nationwide. The hummus variations are available in five signature flavors: Sundried Tomatoes, Zesty Mixed Herbs, Fire Roasted Red Pepper, Red Hot Chili and Classic Authentic Recipe. True to authentic and gourmet Eastern Mediterranean flavors, Mezete products contain natural ingredients with no preservatives. Mezete boasts natural products that are not only ready-to-eat but are long-lasting and do not require refrigeration.

Mann Packing Co. www.veggiesmadeeasy.com Kasih Food Production Co. www.kasihfood.com

NextGen Scan Data Apps New scan data tech requirements for tobacco retailers, including the underserved single-store operator, were created due to evolving tobacco rebate programs. Petrosoft introduced its next generation of Scan Data and Scan Data Loyalty powered by API-driven mobile-first apps to meet these requirements. It has also launched two new programs to make onboarding fast and easy for the small-sized tobacco retailer.

Petrosoft www.petrosoftinc.com

Strawberry Milkshake Cereal Flavor Kellogg’s announced it is releasing new Frosted Flakes flavors including Strawberry Milkshake. With ripe, juicy strawberry flavor coupled with rich, creamy notes, new Kellogg’s Frosted Flakes Strawberry Milkshake evokes the nostalgic taste of a strawberry milkshake and even turns the milk in the bowl a fun, vibrant pink. The new cereal flavor is available at retailers nationwide. A 13.5-ounce box has a suggested retail price (SRP) of $4.49, and a 24-ounce box has a SRP of $6.29.

CSTORE DECISIONS •

Ford Gum released WARHEADS Super Sour bubblegum, which starts with a powerful sour hit and then transforms to a sweet-tasting chewing experience. Each tube has five flavors — Sour Apple, Sour Lemon, Sour Orange, Sour Watermelon and Sour Blue Raspberry. It is available in five-ball and 10-ball tubes. WARHEADS Sour Watermelon Squeeze candy, one of the fastest-selling WARHEADS items in the market, is also available. It has a unique texture and is loaded with sour gel and pieces of dextrose. It is available in easy-to-merchandise, 12-count PDQ trays.

Ford Gum www.fordgum.com

Kellogg’s Co. www.kelloggs.com 68

WARHEADS Sour Candies

May 2022

cstoredecisions.com

PRODUCTShowcase

Low-Sodium Potato Chips MicroSalt just announced that its SaltMe! potato chips will now be available to foodservice operators. This milestone is a major move for MicroSalt on its mission to provide healthier, full-flavor potato chips that deliver 50% less sodium (per serving) to help people promote better cardiovascular health.

MicroSalt is committed to using advanced, patented technology to not only fight cardiovascular disease, but to promote healthier diets and snacking habits. SaltMe! potato chips are available in two flavors: Original and BBQ. Each bag contains a one-ounce serving (excellent for combo meals) and is packed 24 per case.

MicroSalt www.microsaltinc.com

Stackable, Portable Reese’s Pack The Hershey Co. released a new packaging size for Reese’s. New Reese’s Pantry Pack is a stackable, portable, organizable, compact package neatly stocked with 25 individually wrapped snack-size Reese’s Peanut Butter Cups. This convenient package is perfect for stashing, storing, freezing or refrigerating. With nearly perfect rectangular dimensions, the package is easy to store almost anywhere. Reese’s Pantry Pack is now available nationwide.

The Hershey Co. www.thehersheycompany.com

QSR Cheesesteak Franchise Cheesesteak franchise Charleys Philly Steaks is rapidly expanding throughout the U.S., with more than 630 locations open in the U.S. and around the world. It focuses on quality ingredients, including 100% USDA choice steak. It also implements a simple menu and provides incredible customer service. The chain has a chic, new restaurant design, the addition of wings to the menu, streamlined operations and exceptional training. The quickservice restaurant business specializes in hard-to-get and much-loved comfort food and can handle drive-through, third-party delivery and contactless curbside pickup. Retailers can learn more about franchising opportunities at https://charleysfranchise.com.

Charleys Cheesesteaks www.charleys.com cstoredecisions.com

OrangeFlavored Chelada Modelo recently diversified its portfolio with expanded offerings, including a new, vibrant flavor to its Chelada lineup. Rooted in traditional Mexican ingredients, Modelo Chelada Naranja Picosa is a fun and zesty blend of refreshing flavors including orange, lime, salt and a hint of spice.

Available nationwide, the beverage is 131 calories per 12 ounces. It is 3.3% ABV and sold in 24-ounce single-serve cans.

Modelo www.modelousa.com

May 2022 • CSTORE DECISIONS

69

PRODUCTShowcase

Pre-Made Seasoning Blend for Foodservice Operators McCormick For Chefs launched the new McCormick Culinary Guacamole & More Seasoning. This pre-made blend of McCormick herbs and spices makes it simple to prepare guacamole and can bring on-trend, fresh flavor to other breakfast, lunch and dinner menu items too. The pre-made blend enables operators to save on time and labor in the back of house. The seasoning adds a punch of flavor with onion, sea salt, red bell pepper, paprika, garlic and chives. It comes with six 21.5-ounce plastic shakers per case.

Energy Drink With Hemp Seed Oil and B Vitamins Rockstar Energy Drink created Rockstar Unplugged, which focuses more on enhancing good vibes with ingredients like hemp seed oil and B vitamins. These elements, combined with a fruit-forward energy boost, help maintain an easy-going attitude for any mood or occasion.

With 80 milligrams of caffeine, the new sugar-free, calorie-free beverage also contains spearmint and lemon balm. It is available in three flavors — Blueberry, Passionfruit and Raspberry Cucumber. Rockstar Unplugged features a new can design with colorful “groove shape” illustrations symbolizing aura, music and energy.

Rockstar Unplugged is available nationwide in 12-ounce slim cans starting at $1.99 per can.

PepsiCo www.pepsico.com 70

McCormick & Co. www.mccormickcorporation.com

Liquid Supplement With IV Rehydration Therapy Benefits BIOLYTE is offering the first liquid supplement that has the same benefits as IV rehydration therapy but in drinkable form. One bottle yields nearly six times the amount of electrolytes of leading sports drinks, with only one-third of the sugar. It is packed with vitamins C, B12, B5, B6 and B3, alongside ginger root and milk thistle. These ingredients effectively hydrate, boost energy, rid the liver of toxins, ease stomach illness and reduce muscle cramps.

BIOLYTE www.drinkbiolyte.com

Retail Audio Experience Provider Vibenomics is the nation’s premier retail audio experience provider, serving retail customers across grocery and convenience. Vibenomics curates licensed, custom playlists across retailer networks, professional voice announcements and revenue-enhancing advertising sold to the brands that line retailers’ shelves. With Vibenomics, retailers have the power to earn revenue between songs.

Vibenomics www.vibenomics.com

CSTORE DECISIONS • May 2022

cstoredecisions.com

PRODUCTShowcase

Ready-to-Drink CocktailInspired Malt Beverages Seagram’s Escapes unveiled its new cocktail-inspired line: Seagram’s Escapes Cocktails. Leading with four popular flavors, Seagram’s Escapes Cocktails offers a flavored malt beverage that delivers an authentic cocktail taste while offering 5% ABV and 100 calories. Seagram’s Escapes Cocktails comes in four modern cocktail flavors: Pineapple Mule, Strawberry Margarita, Grapefruit Paloma and Lemon Collins. Seagram’s carefully crafted the four modern ready-to-drink cocktail flavors with only two grams of sugar and three grams of carbs. Variety packs of Seagram’s Escapes Cocktails are now available in 12-packs of 12-ounce slim cans.

The Seagram Beverage Co. www.seagramsescapes.com

CBD Gummies for Immunity

Organic kombucha and tea leader Brew Dr. Kombucha announced a special limited release of its Flower Power flavor, available now through summer 2022. The return of Flower Power is part of Brew Dr.’s Founder’s Series where the brewing team revisits recipes of favorite limited-edition kombucha flavors from over the years. Flower Power is a rerelease of Brew Dr.’s 2018 limited flavor, Power Flower. It’s a dynamic blend of hibiscus, orange, lemon thyme and green tea.

Sky Wellness released its CBD Immunity Gummies 125mg + CBG + Elderberry. Each Immunity softgel includes 25 milligrams of pure, THC-free, broad spectrum hemp extract. The product contains no GMOs, pesticides or gluten.

The Immunity softgels combine CBD and CBG with several other naturally occurring cannabinoids, terpenes and nutrients from the hemp plant. In addition to those benefits, the formula is enhanced with natural elderberry and vitamin C to offer full immunity support. The gummies have a suggested retail price of $11.99.

Brew Dr. www.brewdrkombucha.com

Sky Wellness www.skywellness.com

Kombucha Flower Power Redux

Turkey Hill Dipped Duos Turkey Hill introduced its all-new Dipped Duos, which features two premium ice cream flavors swirled together in one bar and covered in a rich milk chocolate coating. Dipped Duos ice cream bars are available in four flavors, including Vanilla Bean & Chocolate, Caramel & Chocolate, Strawberry & Vanilla Bean and Peanut Butter & Chocolate.

The new premium ice cream bars will join Turkey Hill’s existing novelty portfolio, including Ice Cream Cookie Sandwiches, Fruit & Cream Bars and Layered Sundaes. Dipped Duos are now available in freezer aisles at select retailers, starting at a suggested retail price of $3.79.

Turkey Hill Dairy www.turkeyhill.com cstoredecisions.com

May 2022 • CSTORE DECISIONS

71

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Classifieds/Ad Index 5-Hour Energy

3

ADD Systems

18

866-960-1700 | 5hourEnergy.com/trade 800.922.0972 / www.addsys.com

Altria Group Distribution Company www.TobaccoIssues.com

2

Charleys Franchise

28

E-Alternative Solutions

17

Ford Gum

847.955.0003 / sales@fordgum.com / www.fordgum.com

Invenco

invenco.com/s/greengrass

GSK C-Store

Scott.F.Breisinger@gsk.com

7 35 5, 33

Hersheys

37

Home Market Foods, Inc.

55

Kretek International Inc.

13

Krispy Krunchy Chicken

31

Loomis U.S.

67

Mars Wrigley MIT45

41

www.HersheysSolutions.com 800.367.8325 / info@HMFfoodservice.com / HMFfoodservice.com KretekSales@Kretek.com

800.290.6097 / www.krispykrunchy.com 713.435.6700 / sales@us.loomis.com / www.loomis.us

886.MIT.4555 / Sales@MIT45.com

72

NRS Petro

32

Old Wisconsin

45

Perfetti van Melle

21

Prairie City Bakery

14

Ruiz Food Products, Inc.

19

866.481.4604 / www.nynab.com 888.260.0112 / www.nrspetro.com 800.621.0868 / www.OldWisconsin.com 800.283.5988

800.43.STEAK / www.charleysfranchise.com www.EalternativeSolutions.com/Leap

North American Bancard

www.pcbakery.com

www.newcustomers@ruizfoods.com

Swedish Match

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

9 27 63

Swisher International

75, 76

800.874.9720 / www.swisher.com

Texas Pete

11

www.TexasPeteFoodservice.com

TransAct Tecnologies

53

boha@transact-tech.com / www.transact-tech.com/cd

Trion Industries, Inc.

800.444.4665 / info@triononline.com / TrionOnline.com

Between 22-23, 39

Twang

800.950.8095 / info@twang.com / www.twang.com 15

VLN

57 Cover

TryVLN.com

Xcalibur International, Ltd.

49

Clean and safe

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

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cstoredecisions.com

May 2022 • CSTORE DECISIONS

73

IndustryPerspective

What’s Your Cryptocurrency Strategy?

Savvy c-stores are already considering how they might become involved with cryptocurrency, from adding cryptocurrency ATMs and kiosks to issuing their own branded currency when the infrastructure becomes available.

Richard Crone • Crone Consulting LLC

The market capitalization of all cryptocurrencies is estimated to be over $2 trillion. This prepaid reserve has attracted the attention of retailers to help investors with a path to instant liquidity for the highly volatile alternative asset by accepting cryptocurrency directly for purchases. The growth is prompting c-store operators to question how they can tap into this green field opportunity to increase sales and new revenue.

Cryptocurrency and stablecoin platforms make money by charging fees to buy, sell and hold a highly speculative fractional investment.

For example, Block, formerly Square, now generates 70% of its revenue from cryptocurrency services through Spiral, formerly Square Crypto.

Knowing this, c-stores not only have the potential to add net-new revenue from cryptocurrencies and stablecoins, but also eliminate interchange by displacing other higher cost tenders such as credit and debit cards.

The ultimate utility for any funded account or “assets under management” is payment services, and all new payment types start with merchant acceptance.

BRANDED CRYPTOCURRENCY

The most lucrative way for c-stores 74

CSTORE DECISIONS •

May 2022

to play would be by issuing their own branded cryptocurrency or stablecoin pegged to the unused, prepaid balances in a private-label gift card account. It would be no different than a prepaid private-label gift card, yet with the upside and, more importantly, volatile downside of fluctuating value.

Unused prepaid balances of fiat, stablecoins and cryptocurrency — only accessible through the c-store’s app — unlike card-based payments offer merchants a real-time payment, good funds model with the added benefit of non-repudiation, no regulation E nor chargeback risks, and little or no interchange.

To effectively do this the c-store needs a five-star-rated mobile app with a compelling value proposition for repeat use by consumers for managing cryptocurrency and stablecoins as a plus-one add-on feature.

The end game is not just the inherent loyalty of any private-label prepaid program (as the consumer can only spend their c-store prepaid funds at that store), but the opportunity to increase Monetizable Daily Active Users (MDAU) within the c-store’s own branded mobile app.

But all new payment types start with merchant acceptance and to

make this work the c-store will need to get its private-label prepaid card program manager to support cryptocurrency and stablecoins, including providing a physical pointof-sale (POS) interface for making payments at the pump for fuel sales and inside the convenience store through a five-star-rated mobile app.

At this point, the infrastructure providers to c-stores lack the basic market connections, platform integrations and business acumen required to add cryptocurrency and stablecoins at the POS. ATMS & KIOSKS

The other way for c-stores to play is by offering cryptocurrency services with the ATMs or coin-conversion kiosks already hosted within the convenience store.

Finally, if your current suppliers don’t support it, c-stores can add yet another single-purpose crypto-only ATM or coin-conversion kiosk from any of the myriad of companies now offering such services.

Richard Crone is the CEO of Crone Consulting LLC, an independent advisory specializing in mobile strategy, autonomous check-in/checkout and personalized payments. Follow him on Linkedin.com/in/ richardcrone/

cstoredecisions.com

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