CStore Decisions November 2019 by WTWH Media LLC

CStoreDecisions Solutions for Convenience Retailers

Weigel’s Celebrated as CStore Decisions’ 2019 Chain of the Year

The family-owned Tennessee convenience store chain is the 30th winner of this prestigious award for convenience retailing.

INSIDE Cigars’ Slow Burn

Sandwiches Raise the Stakes

Focus on the Forecourt

86 November 2019

•

CStoreDecisions.com

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CONTENTS november 2019

•

Number 11

•

Volume 30

CStoreDecisions

EDITOR’S MEMO

8 Honoring a Special Company

FRONT END

10 Front End Profile: Git‘N Go Modernizes, Focuses on Fresh 16 CSD’s Quick Bites 18 Industry News 20 Front End News: Yesway Acquiring More Than 300 Allsup’s Stores 22 Convenience Store Solutions: The Many Values of Store Visits 24 Front End Column: Adapting to HR Challenges 28 Chain of the Year Pictorial CATEGORY MANAGEMENT

52 Tasty Options Percolate as RTD Grows 56 Hard Seltzer Shakes Up Adult Beverage Scene 60 Cigars’ Slow Burn 64 Meat Snacks Flex Market Muscle FOODSERVICE

70 Sandwiches Raise the Stakes 74 Building on Pizza, Roller Grill 80 Fall Brings Brisk Hot Beverage Sales TECHNOLOGY

84 Understanding the Value in Autonomous Checkout 86 Focus on the Forecourt 92 Touchpoints: The New Point of Sale OPERATIONS

96 Refreshing the Restrooms 102 Succession Planning: A Road Map for the Future

CSTORE DECISIONS •

November 2019

COVER STORY 40 Weigel’s Celebrated as

CStore Decisions’ 2019 Chain of the Year

The family-owned Tennessee convenience store chain is the 30th winner of this prestigious award for convenience retailing.

BACK END 106 Product Showcase 113 Ad Index 114 Averting the Digital Dilemma cstoredecisions.com

the CSD Group www.cstoredecisions.com

CStoreDecisions CStoreDecisions .com

Convenience Store Decisions

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Jim Callahan, Director of Marketing (Retired) Geo. H. Green Oil Inc. • Fairburn, Ga. Bill Kent, President and CEO The Kent Cos. Inc. • Midland, Texas Greg Lorance, Dispensed Category Manager Cumberland Farms • Framingham, Mass. Billy Milam, President RaceTrac Petroleum Inc. • Atlanta Patrick J. Lewis, Managing Partner Oasis Stop ‘N Go • Twin Falls, Idaho Scott Zaremba, President and CEO Zarco USA • Lawrence, Kansas

NATIONAL ADVISORY GROUP (NAG) BOARD Doug Galli, Board Chairman Reid Stores Inc./Crosby’s • Brockport, N.Y. Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo. Greg Ehrlich, Chief Operating Ofﬁcer Beck Suppliers Inc. • Fremont, Ohio

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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.

Kalen Frese, Food Service Director Warrenton Oil Inc. • Warrenton, Mo. Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas Sharif Jamal, Corporate Training Manager Chestnut Petroleum Inc. • New Paltz, N.Y. Lindsay Lyden, Vice President, Development True North Energy • Brecksville, Ohio Stacey Davis, Manager of Marketing Clifford Fuel Co. Inc. • Marcy, N.Y.

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

CSTORE DECISIONS •

November 2019

cstoredecisions.com

Editor’s Memo

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

Honoring a Special Company The industry has changed dramatically over the past 55 years. But through it all, family businesses are the foundation on which the industry’s growth and innovation have been built. There were hundreds, maybe thousands, of budding family-owned c-store and dairy businesses throughout the 1950s and 1960s, each serving their local communities and nurturing close relationships with the customers they served. It was a different time in a different world marked by an innocence that has long since retired. But the goal — to grow the business through hard work and great service — and the work ethic behind it remain the same.

“

Customer service is the core mission at Weigel’s, and its customers are among the most loyal in the industry because they feel like part of the Weigel’s family. Throughout decades of mergers and acquisitions, great retailers have come and gone. Some stuck around to make it a career, others popped in for a cup of coffee to make a quick buck. Then there is Bill Weigel, the rare breed who was there in the beginning and continues to show up for work every day. He is as excited talking about Weigel’s future today as he was in 1958. In this respect, Bill is literally in a class by himself. Weigel joined the family business in the late 1950s. After building drive-through milk depots in the 1950s, he attended the third annual NACS Convention in Washington, D.C., in 1964, and discovered a new industry of convenience was beginning. He returned to Knoxville, Tenn., and immediately extended the operating hours of Weigel’s stores from 7 a.m. to 11 p.m. He also expanded the product assortment to include a dairy case, ice cream, a grocery department, and began merchandising candy right at the checkout counter, an idea so new that no one was sure it would work. Last month, at the 58th annual NACS Convention, CStore Decisions honored Bill, Ken McMullen — his

CSTORE DECISIONS •

November 2019

partner in crime for the past 40 years — and the entire Weigel’s team as the 2019 Convenience Store Chain of the Year. It is an honor long overdue for a great man and a great team. During our due diligence phase in selecting this year’s honoree, the one thing that stood out both in talking with the folks from Weigel’s and others in the industry is the family atmosphere the company has created internally that quite literally permeates out to the customers it serves. Customer service is the core mission at Weigel’s, and its customers are among the most loyal in the industry because they feel like part of the Weigel’s family. This close relationship has been nurtured from year to year for several generations, and it’s what makes Weigel’s a truly special chain. One of the reasons Weigel’s continues to execute at such a high level is this consistency of ownership. Now, in 2019, with more than 1,000 employees, Weigel’s is sticking close to its roots. Bill’s son, Kurt, is now working for the business and extending family leadership to the ﬁfth generation. Over the past 30 years, CSD has consistently honored convenience retailing excellence, starting with Wawa, the ﬁrst Chain of the Year winner in 1990. I am proud to note that while others may focus on chain size and store count, CSD focuses simply on honoring retail excellence. Weigel’s is proof that you do not need hundreds of stores to be a trailblazer. Outstanding leadership, great stores, a distinguished brand and a commitment to treating your people with class and dignity deserve recognition, and CSD is proud to shine a light on these family companies that meet these high standards — and that will never change. Please join me in congratulating the Weigel’s team for a job well done.

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FRONT END Profile

Git‘N Go Modernizes,

Focuses on Fresh

Git‘N Go digitized its menu to best offer fresh, quality foodservice at the speed c-store customers expect. Isabelle Gustafson • Associate Editor

Following an extensive remodel of its c-stores, Clinton, Tenn.-based Git’N Go Market has worked to perfect its processes, including digitizing its menu to speed up the food-ordering process without sacrificing quality or freshness. Founded in 1974 by Joe Hollingsworth, Git’N Go knew it was time for a complete revamp of its c-stores in 2016. “We separated the foodservice area from the rest of the stores — higherend floors, higher-end lighting above you, hard-surface countertops — to communicate to the consumer that we’re serious about food and clean,” said Git’N Go CEO William Baine. “Everything else has been foodservice, foodservice, foodservice.” 10

CSTORE DECISIONS •

November 2019

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FRONT END Profile

Git‘N Go was founded in 1974 by Joe Hollingsworth. Today, the four-store chain is updating locations to feature a modern design and new technology.

Baine said the update has been a hit with customers and brought a positive return on investment. The momentum toward modernization has only grown since the design update.

FRESH FOODSERVICE Git‘N Go offers a variety of foodservice, including biscuits, sandwiches, wraps, burgers, nachos, salads and chicken (to name a few), but since its inception, the company has been known primarily for its hot dogs. Baine said the hot dogs are popular because they’re made to order, they’re reasonably priced and they taste good. For some customers, there’s an added element: nostalgia. “We’ve been doing it for so long that, literally, people grew up eating them,” he said. “They move away, and they come back, and 12

CSTORE DECISIONS •

when they come back, they come back to eat them. … We try not to tinker too much with the hot dogs; we keep them the same.” Most of Git’N Go’s foodservice, however, has changed significantly in the past few years. Among its efforts to improve foodservice, Git‘N Go switched from frozen hamburgers to fresh meat, frozen egg patties to fresh eggs, frozen sub rolls from New York to fresh bread baked twice daily and fresh biscuits baked every hour. With four locations in Clinton, Tenn., Git‘N Go’s small size serves as an advantage. “If you have 300 stores, to have to manage fresh (food) is hard. But if you’re not that large, you can really create distance from your competitors with it,” said Baine. Although Git‘N Go competes with both fast-casual restaurants

November 2019

and other convenience stores, foodservice sales have more than doubled in the six years he’s been with the company. To differentiate, Git‘N Go is focusing on quality over quantity, really honing in on freshness and, whenever possible, incorporating local ingredients. For example, Baine found a farmer in Sweetwater, Tenn., to supply the cheese for Git‘N Go’s burgers. “It’s an artisan-level cheese that normally I could not afford in a c-store environment, but I cut out the middleman and talked to the farmer myself, and all of a sudden, I’m selling artisanal cheese in the store and putting that on my hamburger,” said Baine. Fresh, made-to-order food may taste better and keep customers coming back. The challenge, Baine said, is that made-to-order food is slower.

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“The consumer is more timecrunched than I thought,” he said. “They do appreciate good food, and they come back in again and again for good food, but a c-store is all about ‘in and out.’ … We really needed to move labor from taking orders to making food.” TECHNOLOGY: RISKS AND REWARDS

In order to streamline the ordering process and continue increasing sales without adding labor, Git‘N Go partnered with The Pinnacle Corp. to digitize its menu using the company’s Afﬁniti Cloud shopper engagement platform. The result is a Git‘N Gobranded, integrated platform that includes a mobile app and kiosk ordering system. The initiative began with a soft launch in February, ﬁrst to corpo-

CSTORE DECISIONS •

rate employees, then in-store employees, then employees’ friends. The ofﬁcial rollout began in July. Baine said mobile orders have increased steadily and, three months after its launch, account for 6% of total sales. The goal, he said, is to increase a percent every month and reach 20-50% of total sales. Despite some lofty goals,

November 2019

Baine said he didn’t take the decision to digitize lightly. “When we put in the kiosk, it went against our culture,” he said. “Our culture is to communicate with the customer. ‘Hey, Bob, you want your usual today?’ The kiosk puts a barrier to communication that we have to monitor.” To combat this barrier, the company decided to use doublesided kiosks. One side of the kiosk faces the customer, and the other faces the employee. “We’re not in a technologically advanced area; it’s still a smaller town. We’ll have older people who really don’t like computers. … There’s a button right at the side of the kiosk that tells a teammate, ‘Hey, someone wants to be talked to.’ And they manually take the order.” Ultimately, digitizing was a risk Baine was willing to take — and one he expects to pay off. “Convenience is changing,” he said. “It is very convenient to be able to tell a company, ‘I want this, and I want it now.’ That’s why Amazon is making so much money. … Even though we’re only a four-store chain, we’re trying to stay current and relevant.” cstoredecisions.com

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quickBites DIGITAL AND MOBILE RESHAPE RETAIL

PRIMARY PAYMENT METHOD CUSTOMERS USED ON FUEL

TOP 5 TECH TRENDS shaping retail this year

More than 650 IT leaders took part in MuleSoft’s annual survey on the state of IT. How do you stack up? Trend #1

Source: “GasBuddy’s Fuel Payments study,” August 2019

Digital Transformation 94% of retailers are currently undertaking or planning to undertake digital transformation initiatives in the next year. Trend #2

Modernizing Legacy Systems The No. 1 initiative retailers are tackling this year is modernizing legacy systems. Trend #3

Customer Experience Focus

HOW LIKELY ARE U.S. CONSUMERS TO ALLOW A RETAILER TO DIGITALLY IDENTIFY THEM IN-STORE FOR SPECIAL PROMOTION OFFERS?

Extremely likely

12% 21%

Never

24%

Not at all likely

Very likely

38%

Somewhat likely

Percent of respondents, June 2019; ages 15-74; numbers may not add up to 100% due to rounding.

The majority (76%) of retailers say improving customer experience is a top goal. Trend #4

Source: RIS News, “2019 Shopper Megatrends Study: The Power of Making Retail Personal,” Aug 7, 2019

MOBILE ECOMMERCE 2018

Top Tech Spending The top technology investments retailers report this year are IoT, big data/analytics and security. Trend #5

IT Budgets on the Rise The average retailer’s IT budget will increase by 72% this year — further evidence digital transformation is a majority priority for the retail industry. Source: Muesoft, “Connectivity benchmark report 2019.”

Source: OuterboxDesign.com, “Mobile eCommerce Stats in 2018 and the Future Online Shopping Trends of mCommerce,” updated April 2019

CSTORE DECISIONS •

November 2019

cstoredecisions.com

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FRONT END Industry News Wawa Opens 200th Florida Store

Sheetz Invests $16.8 Million in Employee Wages Sheetz is investing $16.8 million in store employee wages as part of Sheetz’s goal to offer competitive wages, enabling it to attract and retain top talent. Nearly all Sheetz employees will experience an increase in wages or have already experienced an increase within the last year. The investment comes on the heels of a $15 million investment in employee wages in 2016, which coincided with an effort to shift more store employees from part-time to fulltime work. “As a family-owned and operated business, we know our employees are our most valuable asset,” said Sheetz President Travis Sheetz. “We are deeply committed to investing in our employees and creating a great working environment where they feel valued and have the resources they need to succeed. Our goal is to provide competitive wages and full-time hours to as many employees as possible as well as providing quarterly bonuses as a way for employees to share in our success.”

Love’s Travel Stops & Country Stores opened new travel stops in Edon, Ohio, and St. Clair, Mich., marking 500 locations for the company. In honor of the grand openings, Love’s hosted a ribbon cutting ceremony at each location. Love’s is also donating $2,000 to the Four County Career Center in Edon, Ohio, and $2,000 to the St. Clair County Regional Educational Service Agency in St. Clair, Mich. CSTORE DECISIONS •

Juul Suspends Sale of Non-Tobacco, Non-Menthol-Based Flavors

Juul Labs’ new CEO, K.C. Crosthwaite, announced the suspension of the sale of all nontobacco, non-menthol-based flavors in the U.S., in-store and online, pending Food and Drug Administration (FDA) review. As the company evaluates what products to submit for PMTA (premarket tobacco product application), which are due May 2020, it will continue to develop scientific evidence to support the use of flavored products, coupled with strict measures to combat underage use. “We must reset the vapor category by earning the trust of society and working cooperatively with regulators, policymakers and stakeholders to combat underage use while providing an alternative to adult smokers,” said Crosthwaite.

Rutter’s, GetGo Add Plant-Based Menu Items

Love’s Opens 500th Location

Wawa recently opened its 200th Florida store, located in Naples, Fla. The milestone comes a little more than seven years after Altoona, Pa.-based Wawa launched into the Florida market, ahead of initial projections and schedules. To mark the occasion, every store in the state of Florida featured “The Wawa Florida Sunrise,” a specialty drink with a combination of lemonade, orange juice and strawberry. Up to $25,000 of the proceeds will be donated to Feeding Florida Foodbanks in Wawa’s operating area. In addition, Wawa and The Wawa Foundation will donate $75,000 through three grants: $25,000 to Children’s Miracle Network Hospital afﬁliates in Wawa’s market areas in Florida, $25,000 to USO Chapters in Florida and $25,000 to Feeding Florida Food Banks.

Novmeber 2019

C-stores are adding plant-based burgers and other offerings to their menus. Pittsburgh-based GetGo Cafe and Market announced that Impossible Foods’ plant-based Impossible Burger is now available at six Pittsburgh-area GetGo locations. And York-Pa.-based Rutter’s became the ﬁrst convenience store to offer products from JUST and Dr. Praeger’s, with the launch of their plant-based egg patties and burgers at all locations. “With the ﬂexitarian consumer growing at a rapid rate, Rutter’s believes it’s the perfect time to release a plant-based portfolio,” said Rutter’s Director of Food Service Ryan Krebs. cstoredecisions.com

FRONT END News

Yesway Acquiring More Than

300 Allsup’s Stores

Purchase marks large leap for Des Moines, Iowa-based Yesway toward meeting goal of 500 c-stores over the next several years. Thomas Mulloy • Senior Editor

Yesway has entered into a definitive agreement to purchase Allsup’s Convenience Stores. Allsup’s stores — along with Allsup’s Petroleum Inc. and High Five Capital LP — are headquartered in Clovis, N.M. The company was founded in 1956 and now comprises 304 stores in New Mexico, West Texas and Oklahoma. Des Moines, Iowa-based Yesway operates more than 150 convenience stores in Iowa, Texas, New Mexico, Oklahoma, Kansas, Missouri, Nebraska, South Dakota and Wyoming. Yesway plans to assemble a portfolio comprising more than 500 convenience stores in selected regions of the U.S. over the next several years. The Allsup’s acquisition lifts Yesway to approximately 422 sites. Yesway Chairman and CEO Thomas Trkla called Allsup’s founders, Lonnie and Barbara Allsup, true pioneers, innovators and visionaries of convenience store retailing. “They were the first to offer customers hot, cooked foods, self-serve gasoline sales and 24hour service,” he said. Trkla explained that what most attracted Yesway to Allsup’s 20

CSTORE DECISIONS • November 2019

were the great synergies existing between the two chains. Yesway is focused on building out its foodservice program, and Allsup’s has already built an outstanding reputation as a destination foodservice chain. Yesway is a leader in technology platforms, as well as loyalty and fleet programs — things Allsup’s has yet to implement. “Not only do we inherit (a foodservice program) in the stores we buy from Allsup’s,” Trkla told CStore Decisions, “but also one of the things we’re going to be looking at is putting that foodservice platform back into our Yesway stores.”

ALIGNED VALUES & VISION Mark Allsup, president of Allsup’s Convenience Stores, said his employees are excited Yesway has been selected to take the reins as custodian of the Allsup brand and legacy. “We chose Yesway as a partner because their values are truly aligned with ours,” said Mark Allsup. “They share our commitment to support the local communities we serve, our unwavering pledge to our customers to provide them with a terrific shopping experience, and our dedication to the success and well-being of our employees.”

Personnel-wise, Trkla said he doesn’t anticipate a lot of changes at the corporate level. Mark Allsup will continue to serve as president of the newly merged company, according to Trkla, bringing many of his senior operations and fuel people along with him. “We’ve hired an integration firm to assist us in looking at (merging) two very large companies,” said Trkla. “There are close to 4,500 combined employees. So there’s obviously a lot of integration work to do.” Store rebranding, if any, will be limited, Trkla said. “Allsup’s stores will stay Allsup’s stores, period,” he said. “Where there are conflicts in some states, we’ve hired some experts to look at these branding questions.” Allsup’s is renowned for its foodservice, particularly its burrito platform, which Trkla estimated sells in the neighborhood of 22 million burritos every year. Burritos aside, it’s obvious in talking to Trkla that he admires the Allsups and their work to build such a large operation and yet preserve its simplicity. “My hat’s off to Lonnie and to Barbara and the organization that they created — and what Mark has done, as well, the last couple years,” Trkla said.

cstoredecisions.com

WELL DONE. WELL-EARNED. CONGRATULATIONS! to Weigelâ&#x20AC;&#x2122;s for being named CSD's Chain of the Year

Convenience Store Solutions

THE MANY VALUES

OF STORE VISITS

The difference between success and failure can be as simple as visiting each store and having a relationship with employees. Jim Callahan • Contributing Editor

The c-store industry is, and will continue to be, a people business. As such, you cannot overlook the many values gained by making frequent visits to your No. 1 and No. 2 assets — your employees and your c-stores. It’s here where the magic happens, and it’s here where your success as a company is determined. Through the many years I’ve been associated with c-stores and truck stops, the visits that stand out most are the planned visits from our Big Oil partners. We would spend hours getting the stores in near-pristine shape, only to have our partners not show up. I’m going to estimate about half of their “planned” visits never took place, and this was often a blow to employee morale. Store employees, both management and staff, would be dressed in their best uniforms and prepared for an inspection that never came. In fairness, many of the missed visits were not intentional; however, the damage was done. Feelings were hurt, and each subsequent planned visit was taken less seriously. Great companies like Sheetz and Wawa invest a lot of capital in store visits and do a great job of developing a relationship with local stores. There is nothing that makes employees feel more valued than when an 22

CSTORE DECISIONS •

executive from headquarters stops by to offer a word of encouragement and knows each employee by name, especially when that executive’s last name is Sheetz. Regardless of your last name, every corporate leader needs to make an effort to visit stores and learn their employees by name. When done successfully, greeting employees and visiting customers is critically important. These visits are equally important for examining the overall condition of the store and evaluating each store’s performance. Visiting stores on a regular schedule will give you a good understanding of your assets and helps you make more informed decisions about how to invest capital. It gives you a bigpicture look at what you’re doing well and where you need to improve. PREPARING FOR SUCCESS

C-store employees, much like in athletics, are a team. And when the team is working together, great things will happen. Knowledge, determination and skill are also required to play the game, but it’s to no avail if you can’t traverse those final yards necessary to deliver those points on the scoreboard. Are you delivering for your customers?

November 2019

Are you playing the game the way your business plan was drawn up? Review your scheme and your team. Assess your Red Zone (profit) proficiency and determine your weaknesses, whether they reside in management, in your employees, inventory control processes, marketing, curb appeal, foodservice, etc. Once they’re identified, address them one by one because, unlike in football and other sports, a losing c-store team does not get to return for many seasons. Money earned is a winning feeling. Lost sales spurred by poor service or bad merchandising is a lowly feeling. This elusive success might be tied to the coaching staff that observed a very small crack in its opponent’s defense and waited for the right moment to capitalize. Maybe it’s simply the team captain that gives the impassioned speech in the huddle to rally his teammates, driving them to increase their output. No matter; just make sure someone steps up. Jim Callahan has more than 40 years of experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CStoreDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan1160@gmail.com.

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FRONT END | Workforce Management Column

ADAPTING TO

HR CHALLENGES As millennials and Gen Z overtake the workforce, savvy c-stores are rolling out electronic scheduling, employee referral programs and more. Kurt Weigel • Weigel’s Inc.

Weigel’s takes employee recruiting and retention seriously and is rewarded with top-notch employees who work hard to carry out our chain’s mission to deliver guests an unparalleled experience that consistently exceeds expectations. Based in Powell, Tenn., with 68 locations in the east Tennessee region, Weigel’s — CStore Decisions’ 2019 Convenience Store Chain of the Year — employs 1,000 team members. As the director of recruiting at Weigel’s, I know firsthand that we need the best talent available to provide great customer service and, being a local company, that it is important to serve and represent our community well. As an employer, that means being willing to adapt with the times to better accommodate the needs of a changing workforce. EMBRACING CHANGE

In 2012, we started using Paylocity, a provider of cloud-based payroll and human capital management software solutions. In addition to using Paylocity for payroll, we also use it for training, continuing education, scheduling and employee recognition. Schedules can now also be placed onto the Paylocity online platform and shared with employees electronically. The program allows managers to copy forward the schedules. This saves time and gets scheduling information to employees sooner, which allows them to better plan their lives. This feature is still a pilot program for us and only certain locations are testing it. We are encouraging managers to start posting 24

CSTORE DECISIONS •

November 2019

schedules at least one to two weeks in advance to give cashiers and foodservice employees advanced notice. Some old-school managers are not up to speed on technology and don’t see the benefits of this change, but we are teaching them as we go. We stress the importance of using technology, especially when it comes to retaining millennials and Gen Z, who expect to receive information electronically. We explain how these changes help with employee retention and benefit our managers by helping them reduce turnover. We also continue to look into text message options that allow employees to trade shifts, if needed, to reduce call outs. One of the most successful retention programs we’ve implemented is allowing entry-level employees the opportunity to move up to shift lead and/or assistant manager after 60 days with the company. Because they are being promoted from inside the company, they already know our culture well, and we have a greater chance of them staying with us — compared to an outside hire — because they are aware of our standards. If they are a shift leader, they can advance to an assistant manager through the same process. On the recruiting front, we are trying more open interviews in the stores, meaning walk-in interviews can happen any time on a given day. We’ve also raised the rates on our employee referral program and are working on an employee loyalty discount program. Adapting to changes and implementing new retention and recruiting programs, ideas and technology can help set c-stores ahead of the competition. CSD

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CHAIN OF THE YEAR

CStore Decisions Honors Weigel’s

as 2019 Chain of the Year Bill Weigel accepted the award on behalf of the company, crediting the more than 1,000 Weigel’s employees for their hard work and commitment to exceptional customer service. Isabelle Gustafson • Associate Editor

The convenience store industry came together at the Fox Theatre in Atlanta to honor Weigel’s as CStore Decisions’ 2019 Convenience Store Chain of the Year. Bill Weigel, Weigel’s chairman, accepted the award on behalf of the company. For decades, the company has been a respected member of the communities it serves, has built a strong foodservice program and has maintained a pristine reputation as a leading employer. Weigel’s, which succeeds Kwik Trip as Chain of the Year, is the 30th winner of this prestigious award, considered the gold standard in convenience retailing. The Chain of the Year award is 28

CSTORE DECISIONS •

November 2019

also the oldest award for convenience retailing in the industry. In keeping with tradition, Steve Loehr, vice president of operations support for Kwik Trip, CStore Decisions’ 2018 Chain of the Year, handed off the award to Weigel’s chairman Bill Weigel. “To receive such a coveted award is a tremendous honor made possible by the hard work of over 1,000 Weigel’s team members. They’re committed to providing the shopping experience our customers desire. I like to call them our heroes,” Weigel said. “This is the highest honor we have ever received. On behalf of Weigel’s and our team members, thank you to CSD and our vendor partners for making this possible.” cstoredecisions.com

CHAIN OF THE YEAR

This year’s CStore Decisions Chain of the Year dinner was held Oct. 2, at the beautiful Fox Theatre in Atlanta. (Right) Weigel’s Chairman Bill Weigel accepts the award from Steve Loehr, of 2018 Chain of the Year winner Kwik Trip, and John Lofstock, CStore Decisions editor-in-chief.

CStore Decisions Editor-in-Chief John Lofstock spoke about Weigel’s history, which began in 1931 with William Weigel Sr. as a dairy business with four cows, selling raw milk for nine cents a gallon. Today, Weigel’s operates 68 stores, all within a close radius of corporate headquarters in Powell, Tenn. It operates a bakery, in addition to the dairy and is now a ﬁfth-generation

family business. The company aims to reach 100 convenience stores by the end of 2024. “While we’re here tonight to honor Weigel’s, this is very much a night to celebrate the tireless work being done by the entire industry to keep America rolling every day,” Lofstock said. “Family businesses make this industry what it is today. As long as outstanding companies like Weigel’s continue to thrive, the convenience industry will continue to soar to new heights.” When looking at Weigel’s, the ﬁrst thing that comes to mind is its commitment to always doing things the right way. “Weigel’s is one company you can always count on to exceed expectations,” Lofstock said. “The industry has changed dramatically over the past six decades, but one constant you can set your watch by is the Weigel’s team doing things the right way.”

Weigel credited the more than 1,000 Weigel’s team members and their commitment to providing a high-quality shopping experience for customers, elevating Weigel’s above the competition. 30

CSTORE DECISIONS •

November 2019

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CHAIN OF THE YEAR

Tom McIntyre, of CStore Decisions; Bill Weigel, of Weigel’s; Steve Loehr, of Kwik Trip and Brent Cotten, of Hershey. Bill Weigel, of Weigel’s; and Michael Reed, of Foster Farms.

Ken McMullen, CEO of Weigel’s, is joined by daughters Mendy Sharp (left) and Carrie McMullen Robertson.

Thank you to the sponsors of the Chain of the Year dinner.

CSTORE DECISIONS •

November 2019

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WAY TO GO! Congratulates Weigel’s® on being selected Chain of the Year

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CHAIN OF THE YEAR

Jerald Ignash, of Ignash Petroleumn; Brian Donoghue, of Weigel’s; and Melissa Mell, of Ignash Petroleum.

Mike DelAguaro, of H.T. Hackney; and Doug Yawberry, president of Weigel’s.

Melanie Disney, Kelly Bowling, Sharon York, Doug Yawberry and Rob Winchester, of Weigel’s.

Ann Weigel and James McMillan, of Weigel’s.

Jason Demetre and Brent Gillispie, of Swedish Match.

CSTORE DECISIONS •

November 2019

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CHAIN OF THE YEAR

Farris Tindell, of Cherokee Distributing; Julie Edwards, of Miller Coors; Jeff Knight and George Sampson, of Cherokee Distributing.

Lee Ashburn, Maria Ashburn and Ken McMullen, of Weigel’s.

John Petersen, of CStore Decisions; Kurt Weigel, of Weigel’s; and John Lofstock, of CStore Decisions. 36

CSTORE DECISIONS •

November 2019

Jeremy Altman, of EJ Gallo; and Antonio Bivens, of Monster Energy.

John Wright, of Coca-Cola; Bill Weigel, of Weigel’s; and Katherine Boidy, of Coca-Cola.

Matt Merker, Megan Sweeney and Allen Preslar, of Incomm.

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Chain of the Year

Weigel’s Celebrated as CStore Decisions’

2019 Chain of the Year The family-owned Tennessee convenience store chain is the 30th winner of this prestigious award for convenience retailing. John Lofstock • Editor-in-Chief

Outstanding leadership, great stores and unsurpassed customer service are the hallmarks of the convenience store industry’s exceptional chains. Weigel’s checks each of these boxes and so much more. For decades, the company has been a respected member of the communities it serves, has built a strong foodservice program and has maintained a pristine reputation as a leading employer in the markets it serves. Following these guiding principles, CStore Decisions (CSD) is proud to celebrate Weigel’s as the 2019 CStore Decisions Chain of the Year. Weigel’s, which succeeds Kwik Trip as Chain of the Year, is the 30th winner of this prestigious award, considered the gold standard in convenience retailing. “It is such an honor to be selected CSD‘s Convenience Store Chain of the Year from all the great chains operating across this country,” said Bill Weigel, chairman of Weigel’s Inc., a family-owned company that has become synonymous with the Knoxville, Tenn., market. “It’s a tribute to the qualities and legacy this company was founded on 88 years ago, and to the great management and team members we have in our stores today.”

LEADING THE WAY

Geographically, the 68-store chain has never strayed far from its Powell, Tenn., roots. Yet, its evolution from small-town player to industry leader has impacted the way the industry does business, especially as a local employer and in the areas of foodservice and technology. Family-owned convenience stores are the backbone of the convenience store industry, and Weigel’s is a shining example of the very best this industry has to offer. “My experiences in the convenience store industry have been wonderful. I really wouldn’t trade them for anything,” Weigel said. “What makes this industry so great is that we are constantly changing, constantly evolving. The last five years have really progressed at warp speed compared to the first 50 years I was in business.”

Chain of the Year

1847

In 1847, Carl Augusta Weigel immigrated to the U.S. from Germany, settling in Morgan County, Tenn.

Weigel’s was founded as a dairy company in 1931. It wouldn’t be until 1964 that the company moved into the c-store business. Weigel and CEO Ken McMullen share a mutual optimism about the company’s future, both extremely proud of the new programs it is developing. The chain is in growth mode. It is aggressively building new stores, expanding its loyalty program, which currently has

1931

1918

In 1918, William and Arthur purchased a 600-acre vegetable farm in Powell Station, now known as Powell.

more than 400,000 active members, and beefing up its foodservice menu to ensure the Weigel’s brand will endear itself to a new generation of c-store customers. “Our goal, and what we believe internally, is that, to be efficient, we need to grow to 100 stores. Our original goal five years ago was to get to 75 stores by the end of 2020. We came close and should be at 72 by the end of next year,” Weigel said. “But now, our focus is to get to 100 by growing by six stores per year, all staying within 100 miles of our headquarters.”

1934

In 1931, William Weigel Sr., at age 20, converted the vegetable farm to a four-cow dairy, selling raw milk for nine cents per gallon. The 10-gallon cans were delivered daily to Avondale Dairy. In 1934, one of the first rotary bottling machines was created, and in 1935, Weigel’s began bottling milk. The first deliveries, two cases of pints, were delivered while on his way to school at UT Agriculture, strapped to the back of his car. 42

CSTORE DECISIONS •

November 2019

While this is a big step for Weigel’s, it falls in line with its strategy to have 100% organic growth. “We have never acquired a store,” Weigel said. “We don’t buy stores. Our strategy has always been to build units from the ground up, which ensures we will have a strong, consistent brand that customers can trust.” Furthermore, Weigel believes 100 stores is a threshold that will serve the company well in the future. “Twenty years ago, a 50-store chain could compete in the marketplace. Now, I think you need to be in that 100-store range to be successful,” Weigel said. “That allows you to distribute from a central commissary if you want, reduce delivery costs and yield solid margins. There is so much competition for customers, so it’s very important to create efficiencies to control costs.” Just as it believes in organic growth, Weigel’s also believes in vertical integration. It operates a construction subsidiary that builds and maintains its stores. The construction team consists of two crews, each of which builds two stores per year. For the first time in its history, the chain will bid out the construction of two stores annually to meet its goal of six new stores per year.

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CONGRAT UL AT ES

Chain of the Year

In 1938, management of the operation was passed completely to Lynn Weigel and William Weigel Jr., both men having graduated from the University of Tennessee’s School of Dairy Science. Lynn was in charge of the office and dairy operations, and William was in charge of farm operations and marketing.

1938 EXPANDING PROGRAMS

While unit growth is top of mind, equally important to Weigel’s is a focus on evolving the brand to meet customers’ needs. “We don’t measure success in the number of stores we have or the number of stores we open,” McMullen said. “We measure success by how well we operate in the market and how satisfied our customers are. That is the most important thing in our business.” In five short years, the Weigel’s foodservice program has flourished. The offering is centered around freshly prepared pizzas, chicken and breakfast sandwiches, all of which can be customized and ordered on demand at self-serve kiosks.

“We started out in foodservice in 2014 when we built our first Weigel’s Kitchen store. Now we have 18 of the Kitchen stores and plans to remodel 45 additional sites to the Kitchen concept,” McMullen said. “We are excited by how quickly the foodservice has taken off. This year alone, we were voted best pizza, coffee, bakery and convenience store brand in customer voting by Knoxville News.” Over the past year, the chain has been accumulating awards at an impressive rate. Its bakery, Red Barn Foods, was voted the Employer of the Year by Goodwill Industries in Knoxville for its dedication and hard

work in the Goodwill employment training and rehabilitation program. Additionally, Weigel’s was awarded the cleanest restrooms in Tennessee by GasBuddy and graded as the fifthcleanest restrooms in the nation. COMMUNITY FOCUS

Just as taking care of customers and employees is a core tenet at Weigel’s, giving back to the community is also a cherished hallmark of the brand. For the past two decades, the Weigel Family Christmas program has supported families in need during the holiday season. Since 1998, Weigel’s has taken more than 4,000 underprivileged children Christmas shopping, chaperoned by employees and volunteers and funded by the chain and its many trade partners. Weigel’s has also been a supporter of Wags for Warriors, a local nonprofit organization whose mission is to

1958 1958 Dec. 9, 1958 — The Weigel brothers pioneered the drive-though dairy store in east Tennessee. This store marked several firsts: the first Weigel’s Farm Store, the first gallon milk jugs in the market and the start of the Jug o’ Milk brand. A gallon of milk was 77 cents with a one-time 25-cent deposit. 44

CSTORE DECISIONS •

November 2019

Also in 1958, the first walk-in store, located off of Western Ave., launched Weigel’s into the one-stop c-store chain it is today. The store is still in operation but has been remodeled twice.

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Chain of the Year

enhance the physical and psychological quality of life for veterans with service-related disabilities through the training and placement of service dogs. Weigel’s has raised more than $40,000 for the program. According to McMullen, Weigel’s encourages and rewards its employees for making a difference in people’s lives. The company’s golden rules include getting to know customers on a first-name basis and handling any and all complaints with interest and urgency. The industry has changed dramatically over the past six decades, but the one constant you can set your watch by is the Weigel’s team doing things the right way. PROUD HISTORY

While Weigel’s is celebrating its growth today, it has a deep, proud history in the local Tennessee community, and has shown for nearly 90 years it can adapt and overcome adversity. The company began as a dairy and operated as such for more than 25 years under the direction of brothers William (Bill) Weigel Jr. (Bill’s dad) and Lynn Weigel. In the 1950s and 1960s, the country had become a nation on wheels, and the cost of delivering milk to homes was becoming increasingly high. The result was the rise of milk sales in grocery stores and the decline of home-delivered milk. “This signaled the beginning of the end for many small dairies that did not

1967 In early 1967, Weigel’s introduced the iconic ICEE brand of frozen beverages to the Knoxville area. Weigel’s was the only place east of the Mississippi where you could buy ICEE products until it sold to another company in 2010.

foresee and react to the changes. At the time, there were 13 dairies serving the Knoxville area,” Weigel said. By 1958, the Weigel brothers knew major changes were required. During a visit to Miami Beach, Fla., Lynn became fascinated with Farm Stores Inc. — a new conceptual design, started by Land O’ Sun Dairy in South Florida. This company packaged milk in returnable glass gallon jugs and sold it through its own individual drive-through farm stores. Customers, on the first visit, bought the jug and the milk. Thereafter, they paid only for the milk and traded the empty jug for a new, full one. Buying milk this way, they saved both home delivery and container costs and were rewarded with a much lower price. Lynn took notes and measurements at one of Land O’ Sun’s stores and replicated the model in Knoxville, complete with a drive-through. This became the first Weigel’s Jug O’ Milk farm store. This was the beginning of the Weigel’s Farm Store era.

1984

CSTORE DECISIONS •

Weigel’s entered into foodservice with deli stores in 1984. A total of seven were launched, though only three are still operating today.

November 2019

This radical change would force Weigel’s to divest all of its home delivery retail routes and other types of distribution. However, in the end, it would save the company by paving the way for new growth. Within 35 years, of the original 13 dairies that had processed and sold milk in the Knoxville area, Weigel’s was the only one left in operation. In December 1958, the first Weigel’s dairy store opened in Knoxville. What had been created was, in effect, a milk depot, and Weigel’s Jug o’Milk became the spirited logo. Besides milk products, it stocked bread and other essentials. A gallon of milk sold for 77 cents plus a deposit of 25 cents on the first trip. The farm store soon sold thousands of gallons of milk a week. Still, the times were tough. In 1961, the company sustained its worst annual operating loss — nearly $34,000. Unfortunately for Weigel’s, just as Weigel joined the company and was in the process of initiating changes to improve profitability, he was called away for overseas service during the Berlin Crisis. He served in the Air National Guard until 1962. As a result, no new stores were added in that time, and Weigel’s lost approximately 50% of its business. Slowly, store sales began to increase, and year-end operating losses declined. Five new drivethrough stores were built, and a pattern emerged. Weigel’s located stores in areas populated by middleincome families with children. These

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2019 CSD Chain of the Year

Success is earned not given. Congratulations on being named CSD’s Chain of the Year.

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Chain of the Year

2000

In 1999, a new store concept was designed with a fresh corporate brand identity and the now universal red circle W. And in 2000, Weigel’s built the new 4,100-square-foot concept store at Topside Road in Louisville, Tenn. The next 36 new store builds followed this prototype of 16 fueling positions and the red circle W logo.

locations best served the big milkconsumption market. The drive-through stores soon added soft drinks, eggs, bacon and miscellaneous grocery items to the product lineup, but in the end, the stores could only accommodate a limited amount of trafﬁc and were dependent on milk for about 80% of the total sales. EXPANDING THE MODEL

Until now, the company had been guided almost solely by Bill Weigel Jr. and Lynn Weigel. In 1962, after young Bill completed his military service, he rejoined the company. The means were now at hand to expand into the walk-in c-store business. In June 1964, Weigel, on the recommendation of family friend Bill Sandwick, whose friendship with Weigel spanned more than 45 years, opened the ﬁrst walk-in convenience store in Knoxville. “Bill Sandwick was my mentor. Although he was only 10 years older, I respected him like a father ﬁgure,” Weigel said. “He was wise in ethics, wise in word, wise in never overstating, and was one who never cut corners. He had special skills communicating with and handling people.” Sandwick worked with Weigel’s until his death in 2005 at age 79. 48

CSTORE DECISIONS •

After the ﬁrst walk-in store was built, Weigel attended a National Association of Convenience Stores (NACS) convention in Washington, D.C. in 1964 and discovered a new industry was beginning. He returned to Knoxville and immediately extended the hours of Weigel’s stores from 7 a.m. to 11 p.m. He also expanded the product assortment to include a dairy case, an ice cream case, a grocery department, candy and miscellaneous items at the checkout. From the beginning of the c-store era at Weigel’s, the key personnel were a store manager and an assistant manager. “Store hours were long in the beginning, and the work was hard,” Weigel said. “But we have always taken care of our people. There were no fringe beneﬁts, but we respected people and looked at them as our partners.” FUELING NEW SALES

For Weigel’s, the 1970s brought great changes and success, including the introduction of self-service gasoline pumps. That led to a huge increase in sales and proﬁts that rivaled the store’s inside operations. Between 1970 and 1975, seven new stores were added, which increased growth and proﬁt.

November 2019

The addition of gasoline pumps helped take Weigel’s to the next level. A trip to another NACS convention helped cement its investment. “At a NACS meeting, I learned about the gasoline business from John Roscoe, who was selling gas at his California c-stores. Soon after, a gas company salesman from Houston called me and made a proposal. He said, ‘I’ll put two gas pumps in your store’s front parking lot and pay for all the expenses and equipment. I’ll also give you half of the profit, which I guarantee will pay your utility bill.’ I replied, ‘You must be crazy. That’s where we park, so I am not interested.’” After giving the idea some thought, Weigel agreed on one condition. “I told him, if I don’t like the fuel business for any reason, he had to agree to remove those pumps, fill in the holes and repave my parking lot,” he said. “The gentleman left without much further discussion, and I thought we would never hear from him again.” A few weeks later, the salesman returned with a contract. “He addressed all of my concerns,” Weigel said. “They put in the pumps, which ended up being a real stroke of luck for Weigel’s. This is another example of the right people coming together at the right time.” In 1974, Weigel’s father, Bill Weigel Jr., died at age 63. The management of the company now fell solely on the shoulders of Lynn Weigel and Bill Weigel. Reflecting on his father, Weigel said, “I realize some people have to struggle when working with overbearing fathers in business. I was fortunate to have a dad like mine. He let me have free rein in our farm store business, allowing me to learn from my mistakes at a young age.” As a sign of respect, all Weigel’s stores remained closed on July 5, 1974. USHERING IN A NEW ERA

As the sun set on the 1970s, Weigel’s had now opened 30 stores in cstoredecisions.com

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Chain of the Year

2019

Weigel’s built its first Weigel’s Kitchen store in 2014, and today it offers 18 Kitchen stores with plans to remodel 45 additional sites to the Kitchen concept. (Right) Weigel’s is still a dairy at heart and offers its milk products inside its c-stores.

east Tennessee. To continue the expansion of the c-stores, Weigel knew he needed additional management help. After a search for a qualified operations manager, McMullen was recruited away from Lawson Milk Co. in Michigan in 1981. After 38 years, the pair still work closely every day. In 2001, McMullen would become Weigel’s first person, other than a family member, to be named president and chief operating officer of Weigel’s Stores. Now a middle-market company, the 1980s became one of Weigel’s greatest eras in terms of growth in sales, profits and organizational skills. In addition to remodeling some stores, a total of 14 new stores were added. In 1985, Weigel’s opened the only “downtown” Knoxville store in its history. With the opening of this store, the Weigel’s deli and hot foodservice program was introduced. Weigel’s new store expansion slowed in the ‘90s. Still, it added six new stores and completely remodeled four as store sales reached new highs. LAUNCHING FOODSERVICE

In the early 1990s, a branded foodservice program was introduced with 50

CSTORE DECISIONS •

the opening of a Blimpie food court at a Weigel’s in Knoxville. The profound shift in the consumer food buying pattern was not lost on Weigel’s. “If 50% of food dollars were being spent on eating out or takeout, we were going to have a food offering in our stores,” Weigel said. In 1996, the Weigel’s team realized it didn’t have a store design for the present, let alone the future. So Weigel enlisted a friend, whom he met through the National Advisory Group (NAG), to work for Weigel’s. Together, their assignment was to put together a new corporate identity. The goal was to completely modernize and revise Weigel’s c-stores’ image. From concept to building the first store featuring the new corporate identity took 12 months. “We built this store, and it quickly became a resounding success. It gave us an eight-pump facility that was dominant for this market, totally dominant. It took off like a rocket,” Weigel said. “It completely overpowered the competition, and we knew we had exactly what we wanted. Our sales at this store promptly increased. After we built four or five more stores of this type, our sales really improved.”

November 2019

The new design provided the momentum for Weigel’s rapid expansion for the following decades. Weigel’s completed its 50th c-store in late 2008. This major milestone fulfilled a personal goal of Bill Weigel that he made public in 1978 when the company had only 28 stores. “Some industry observers expressed doubt about the future of a 50-store chain, serving a one-city marketplace,” he said. “But having 50 stores in the Knoxville area optimized buying power, distribution costs and overhead, which helped us gain a competitive edge over national chains.” Now, in 2019, Weigel’s pushes toward 100 stores while staying close to its family roots. Weigel’s son, Kurt, practices the friendly leadership that has been the Bill Weigel trademark. Along with McMullen, Company President Doug Yawberry and the host of talent it has assembled, Weigel’s leadership has never been stronger as it focuses on new retail growth. “Our management team, store team members and partnerships with our trade partners are the reason we succeed each and every day, and it’s because of them that we are able to receive awards like Chain of the Year,” McMullen said. “This memorable tribute would not have been possible without them.” CSD

cstoredecisions.com

Category Management | Packaged Beverages

Tasty Options

Percolate as RTD Grows Energy drinks, coffee and innovation drive increasing sales for packaged beverages. Thomas Mulloy • Senior Editor

CSTORE DECISIONS •

November 2019

As time-starved customers reach for pick-me-up beverages, ready-to-drink (RTD) cold coffee and energy drinks are standing out from the cold vault. New flavors, forms and methods are pushing the boundaries of packaged beverages, especially when it comes to cold coffee. Meanwhile, energy drink flavors are evolving to appeal to Gen Z consumers. When it comes to beverages, Jared Scheeler, CEO of the The Hub, a four-store convenience chain in Dickinson, N.D., said the main trend he sees is an uptick in innovation, with most beverage companies pushing the envelope today in terms of flavor offerings. Scheeler said it’s refreshing to see non-traditional fruit flavors integrated into the enhanced and sparkling water categories — flavors like watermelon, papaya, blood orange and green apple. But flavor creativity is appearing across the beverage board, including in the energy drinks segment as it adapts to appeal to a new generation of customers. “I don’t think that a cotton candy-flavored beverage would have worked 10 years ago; however, it’s one of our top flavors in functional cstoredecisions.com

Category Management | Packaged Beverages

energy,” Scheeler said. “Certainly, the orange vanilla varieties have performed well, starting with the Orange Vanilla Coke and carrying over to our functional energy lines.” BEVS WITH POWER

The energy beverage segment continues to enjoy considerable growth, Scheeler noted. “That energy category has seen steady growth for years, and to maintain that growth, there had to be some innovation,” said Scheeler. “With brands like Reign, Bang and Rockstar XDurance, we saw that innovation, and it gave a nice boost to our energy doors.” Wells Fargo Securities/Nielsen reported that the energy category improved slightly and remains strong, with dollar sales up 10.7% for the past 12 weeks and 11.8% for the past 52 weeks ending Oct. 5. Carbonated soft drink sales rose 2.5% and 3.3% for the same periods. JAZZY JAVA

For RTD coffee, flavor is definitely a factor, but brewing method is also key in updating the simple old ‘cup of joe.’ Gary Hemphill, managing director of research with the Beverage 54

CSTORE DECISIONS •

Marketing Corp., told CSD that NITRO VS. NITRO RTD coffee has “caught fire” Still, the RTD coffee surge isn’t the last several years, seeing brewing everywhere. Nelson said that substantial growth from a he’s seeing it begin to ebb somewhat relatively small customer in his region. base. “It’s surprising to me how flat our What’s driving growth? RTD coffee has been,” said Nelson. “I Innovation. really thought the ‘coffee craze’ was “New flavor concepts going to be here for quite some time. are most definitely a viable But it’s not looking that way now.” means of innovation,” Its competition? Dispensed cofsaid Hemphill. “The most fees. “Nitro coffees are really popular successful recent innovations right now,” Nelson said. Dispensed have been more process-drivnitro closely replicates the flavor and en. Cold-brew and nitro coffees, texture sought by those coffee shop for example, have helped to spur drinkers to whom Scheeler referred. category growth.” Can nitro cans match dispensed? Those form-over-flavor observaDespite that contest between tions are echoed by Mike Nelson, coffee forms, it may be a good idea senior category manager for Plaid for retailers to keep an eye on what Pantry, with 110 stores in the states of the biggest players in the category Oregon and Washington. “Oatmilk are doing. coffees are clearly the next big thing,” “The partnership between Pepsi said Nelson. “Nitro cans are also very and Starbucks has long led the RTD hot right now.” coffee category,” said Hemphill, “but According to Beverage Marketing other companies are gaining share. Corp. numbers provided by Hemphill, Coke has gotten more aggressive, RTD coffee retail sales dollars have and more localized coffee purveyors doubled over the past five years, rishave started to make their mark.” ing from $2.10 billion in 2013 to $4.25 Finding the balance between billion in 2018. Sales are projected to staid, reliable brands and innovative top $4.65 billion this year. upstarts will be key in maximizing not Scheeler’s experience supports those just RTD coffee sales, but packaged numbers. Both canned and bottled beverages across all segments. CSD coffee in his stores have shown steady growth over the past five years. The challenge for manufacturers now is to duplicate the flavor of coffee shop beverages, he noted. “The average coffee • Flavor innovation continues to consumer has developed a drive packaged beverage sales more sophisticated palate over the past decade,” growth. said Scheeler. “While the strongly flavored and • Ready-to-drink coffee revenue sugary beverages have a doubled from 2013-2018, from place, there’s an opportu$2.10 billion to $4.25 billion. nity to satisfy that coffee shop drinker by develop• Oatmilk coffees and canned ing beverages more suited nitro could be the next big thing. to their tastes.”

November 2019

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Hard Seltzer

Shakes Up Adult Beverage Scene More customers are opting for hard seltzer as their alcoholic beverage of choice, but local and craft beers continue to trend. Howard Riell • Associate Editor

C-store shoppers’ tastes in beer and adult beverages continue to evolve, with a more diverse group of consumers looking for healthier and craft brands, as well as hard seltzers. Corrie Burdick, category manager for Alltown Fresh, which just opened its most recent location in Waterbury, Conn., said the chain has seen an inﬂux of guests seeking healthier options, including those lower in both calories and ABV (alcohol by volume). “We’ve also seen more and more consumers leaning into the hard seltzer trend, as well as session beer options,” Burdick said. Out of 302 company-operated locations, Global Partners operates two All-

town Fresh sites and has plans to open a total of ﬁve Alltown Fresh locations by the end of the year. By achieving an even balance of traditional offerings, local options and rotating new products that satisfy its wide range of shoppers, Alltown Fresh’s beer category sales are strong. Based on each market’s location, Alltown Fresh supplies a mix of options, such as locally sourced varieties, domestic beers, imports, malt beverages, ciders and more.

November 2019 • CSTORE DECISIONS

Category Management | Adult Beverages

Seltzer Sales Skyrocket Brands

Retail $ Sales Last 52wks ($MM)

1-Year % Change

Hard Seltzer Category

$957 M

203.2%

Mark Anthony Brands, White Claw Hard Seltzer

$526 M

272.8%

Boston Beer, Truly Hard Seltzer

$274 M

183.5%

Anheuser-Busch Inc., Bon & Viv Spiked Seltzer

$70 M

67.7%

Diageo/Guinness, Smirnoff

$48 M

102.7%

MillerCoors, Henry’s

$23 M

140.8%

Source: Data for the 52 weeks ending Sept. 7, 2019 via Nielsen XAOC including C-Store; as reported by Wells Fargo Securities LLC

HARD SELTZER SOARS

“While domestic premiums will always be a large portion of the business,” Burdick said, “we are seeing huge growth in seltzers. White Claw is currently leading the trend, with its Variety 12 Pack remaining consistently in our top ﬁve.” Wells Fargo Securities citing Nielsen data reported dollar sales for Mark Anthony Brands’ White Claw hard seltzer continues to grow despite nationwide shortages caused by a surge in consumer demand. Dollar sales for the hard seltzer segment overall were up 203.2%. In addition, as consumer trends shift toward smaller batch and more local products, options like New World IPA from Mayﬂower Brewing in Plymouth, Mass., and Wormtown Be Hoppy from Wormtown Brewery in Worcester, Mass., are also performing well at Alltown Fresh, Burdick said. Meghann Eaton, category manager for Duxbury, Mass.-based Verc Enterprises, is seeing similar trends. “The beer trends are hard seltzers and crafts,” she said. “The biggest growth is White Claw.” Promoting the hard-seltzer 12-packs has worked best, she added. The beer business is up 7% year to date at Verc Enterprises, which operates 31 c-stores in New Hamp58

CSTORE DECISIONS •

shire and Massachusetts. “In the craft world, you have to keep rotating your selection, but the hazy new England IPAs are big,” Eaton said. “The hard seltzers have become a staple, the go-to package. We have tried a few varieties, but White Claw seems to be the brand customers go back to.” Consistently rotating the selection to keep it fresh can make up for a lack of space and smaller selection. “There are not many buy-down deals on craft beers,” Eaton said, “so it allows you to be competitive on retail with your neighbors.” Burdick said Alltown Fresh consumers are seeking healthier options in every c-store category across the board, and that the beer category is no different. “We’ve also noticed that guests are looking for unique, fun options that ﬁt their mood or occasion on

November 2019

any given day and are stocking a versatile selection that satisﬁes all of their needs,” Burdick said. STAY RELEVANT

“Like the rest of the channel, we have seen major spikes in ‘near beer,’” said Eric Patterson, merchandising manager for Beacon & Bridge Market, a 25-store, family-owned chain based in Flint, Mich. “Spiked seltzer sales are strong in our stores, and customers are looking for the most popular brands and ﬂavors.” Michigan, he said, is a very “craftcentric state. We are actually seeing some of our more popular regional breweries dip their toes in the seltzer world as a reaction to this trend.” In years past, the chain saw a lot of beer dollar sales growth, he added. “But spiked seltzers have taken that spot and appeal to a much broader customer base.” Patterson’s advice? “Stay relevant. There are two types of beer customers: homebodies and explorers. Homebodies don’t venture too far away from brands or styles that they are used to. Explorers have no problem trying the latest trending items, but will also purchase what they are used to.” They key, he said, is to appeal to both types of customers by “paying attention to trends and locking onto new items as quickly as you can.” CSD

fast facts:

• C-stores need to adapt beer sets to evolving consumer trends. • Hard seltzers are growing in popularity. • Americans’ desire for healthier products extends to beer. cstoredecisions.com

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Category Management | Cigars

Cigarsâ&#x20AC;&#x2122; Slow Burn

Cigars face a changing regulatory landscape with 21-plus age restrictions, menthol and flavor bans, and FDA regulatory processes for items newly deemed tobacco products in 2016. Anne Baye Ericksen â&#x20AC;˘ Contributing Editor

In many ways, Massachusetts is a microcosm of tobacco regulations popping up in communities across the country. Prior to the statewide enactment of 21 as the legal minimum purchasing age for tobacco products earlier this year, various cities adopted the age while others remained at 18. Way before Massachusetts Governor Charlie Baker called for a fourmonth statewide ban on sales of e-cigarettes and vaping devices, a number of cities passed flavored tobacco bans, including on flavored cigars and cigarillos. As of Sept. 13, Massachusetts towns had included menthol, wintergreen and mint in bans.

CSTORE DECISIONS â&#x20AC;˘

November 2019

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“

I think customers like the introduction of the two- and three-packs because they are able to maintain product freshness. — Lisa Dell’Alba, president and CEO for Square One Markets Inc.

“More recently, they have set their sights on menthol, mint and wintergreen with some cities/towns enacting the expanded restriction. However, an active association-led opposition along with local retailer lawsuits have slowed the acceleration of additional towns adopting these ordinances, but it is a struggle every week,” said Jon Shaer, executive director for the New England Convenience Store & Energy Marketers Association (NECSEMA). “We’ve had menthol products in the market for the last 60 years, so I don’t see why banning menthol now will make a difference. I don’t see the light at the end of the tunnel if they don’t want us to sell menthol, wintergreen and mint,” added Tarek Yatim, CEO for Yatco Energy and a NECSEMA board member. In addition to fuel distribution services, the Northborough, Mass.-based company operates more than a dozen Yatco Food Markets, several of which are located in communities with ﬂavor bans. “We (continue to sell) both cigars and cigarillos, but sales have decreased since the bans,” said Yatim. A growing number of c-stores across the country face some form of tobacco regulations affecting cigars. In addition to ﬂavor bans, more states changed the minimum purchase age. According to Wells Fargo Securities LLC, more than half of the U.S. population currently lives within a 21-minimum district compared with less than 20% before 2019. The Food and Drug Administration (FDA) also keeps pushing ahead on regulatory processes for items newly deemed tobacco products in 2016, including cigars. SALES WAVER

Meanwhile, cigar sales have been struggling to regain their footing recently. Wells Fargo Securities reported dollar sales in all channels fell more than 4% for the four weeks ending Sept. 7, despite Middleton’s and Nat

cstoredecisions.com

November 2019 • CSTORE DECISIONS

Category Management | Cigars

Is the Price Right? With a few exceptions, cigar prices remain on the cutting block. Below is the year-over-year percent change for the average equivalent price, ending Sept. 7, 2019. Brand

4 weeks 12 weeks 52 weeks

Middleton’s Nat Sherman

-0.2%

-1.1%

-0.5%

7.6%

6.2%

7.1%

Swisher

-3.8%

-2.9%

-1.9%

Garcia y Vega

-5.6%

-3.8%

-0.3%

White Owl

-0.9%

-1.0%

-0.8%

Backwoods

3.2%

3.3%

6.2%

Dutch Masters

-1.7%

-1.2%

-2.0%

Cheyenne International LLC

-3.1%

-2.7%

-2.2%

PT Djarum

2.4%

0.5%

1.9%

Private Labels

-44%

-48.5%

-25.9

Source: Nielsen XACO, including c-store and Wells Fargo Securities, Sept. 17, 2019

Sherman earning 2.3% and 4.7%, respectively. Middleton’s was the only brand to post growth in unit sales for the same period. Private-label cigar unit sales, however, just keep ticking upward. Data shows jumps of 74% for the same four-week period, as well as more than 108% for 12 weeks and 60% for 52 weeks ending Sept. 7. Dollar sales for private-label cigars,

though, haven’t shown comparable increases because prices continue to fall. In fact, other than Nat Sherman and Backwoods, prices have been cut for most brands. Still, some c-stores have experienced positive performance with the cigar category. “I think customers like the introduction of the two- and three-packs

fast facts:

• More than half of the U.S. population currently lives within a 21-minimum district. • Thirteen Massachusetts towns have bans on menthol, wintergreen and mint tobacco products. • Unit sales of private-label cigars jumped 74% for the four weeks ending Sept. 7. 62

CSTORE DECISIONS •

November 2019

because they are able to maintain product freshness” said Lisa Dell’Alba, president and CEO for Square One Markets Inc., which runs eight stores throughout Pennsylvania. “We only carried five-packs for a period of time, but since introducing the lower pack size, we have seen an influx in business due to the lower price points that come along with the packaging,” added Danny Rodriguez, Square One Markets’ operations manager. He also credited pumped up packaging designs for greater interest. “Promoting low-end price points on the packaging has made them attractive to consumers,” said Rodriguez. As 2019 segues into 2020, c-store owners and managers are surely bracing for more proposed local and state tobacco restrictions while the wait for the FDA to finally determine which cigar and cigarillo SKUs will gain approval for future sales continues to linger. CSD cstoredecisions.com

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Category Management | Meat Snacks

Meat Snacks

FLEX

Market Muscle

As manufacturers look to expand an already strong meat snack market, c-store retailers must balance valuable display space to appeal to both traditional consumers and good-for-you snackers. Thomas Mulloy • Senior Editor

At Clark’s Pump-N-Shop the meat snack category has been performing so well that Mark McCarty, director of category management, doubled most meat snack sections this year from four feet to eight feet in the chain’s 67 stores in Kentucky, Ohio, West Virginia and Florida.

CSTORE DECISIONS •

November 2019

cstoredecisions.com

While classic jerky meat snacks sales rose nearly 4% the past year, other meat snack products jumped 10%, according to IRI. This may be due to the demand for smaller sizes, new forms like meat bars, and healthy sources of protein and energy.

Numbers from market research ﬁrm IRI concur that meat snacks sales are booming. For the 52 weeks ending Oct. 6, U.S. dried meat snacks sales are up 6.8% overall. Interestingly, though, jerky sales only rose 3.8%. The category’s remaining products jumped an impressive 10%. Translation: Consumers are looking for — and are willing to purchase — a variety of meat snacks. “We stock jerky, meat sticks, etc.,” McCarty said. “But I’m just now ordering in some of the meat bars to try them.” Bars are the next big thing: handheld, smaller portions and big on protein. On the manufacturing side, the trend is for meat snack makers pushing to expand the market through new products that appeal to millennials, non-meat-eaters, athletes, moms and their kids. And they may be on to something. There’s a conﬂuence of demographics at play that will likely lift

“

the category’s growth. According to the “Healthy Snacks Market Size, Share, Industry Growth Report, 2019-2025” by Grand View Research, a demand for high vitamins and proteins with low calories; increasing need for on-the-go snacks; and hectic consumer lifestyles will drive growth in healthy

I know there’s been a lot of spicier and savory ﬂavors, but there’s an opportunity to innovate in a way that’s maybe not exactly savory, but also gives the consumer a sense that they are treating or rewarding themselves. The convergence of those two motivations are going to become even bigger over the next few years.

“

— Darren Seifer, executive director and food trends expert, The NPD Group

CSTORE DECISIONS •

November 2019

snack consumption at a compound annual growth rate (CAGR) of 5.2% through 2025. Last year, the global healthy snack market reached $23.05 billion. Meat snacks accounted for 27% of that revenue, the Grand View Research report said. EXPANDING THE MARKET

“Based on where our stores are located, I feel that our core customer is still male,” McCarty said. “But I am looking to add a couple of new items, and test them, that should appeal to the female consumer.” The NPD Group’s Executive Director and Food Trends Expert Darren Seifer agreed that the segment skews male but said meat snacks offer something for that female consumer as well. “So, yes, it is a little bit more male,” said Seifer, “but women are cstoredecisions.com

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Category Management | Meat Snacks

Meat snack manufacturers are seeking to expand the market through flavor, form and portion innovation in hopes of attracting new demographic groups like athletes, women, and parents who demand smaller portions and healthier products for their kids.

seeking the properties that exist within these (products), so perhaps that’s an opportunity.” For the health-related reasons above, athletic women are prime candidates for the protein and energy that meat snacks offer. They’re also more apt to gravitate toward snacking indulgence. And that could really drive market growth. “I know there’s been a lot of spicier and savory flavors,” said Seifer, “but there’s an opportunity to innovate in a way that’s maybe

not exactly savory, but also gives the consumer a sense that they are treating or rewarding themselves. The convergence of those two motivations are going to become even bigger over the next few years.” Don’t forget the moms looking for the healthy side of what their children eat. Busy moms (and often dads) want to grab items and quickly drop them into kids’ lunches or backpacks. To fit that bill, there’s been an upswing in small, individually wrapped, lunchbox-friendly

fast facts: • N on-jerky meat snack sales rose 10% the past year, according to IRI. • M eat snacks accounted for 27% of the $23.05 billion global healthy snack market, according to a report by Grand View Research.

CSTORE DECISIONS •

November 2019

meat and sausage sticks, as well as flat cheese-and-meat combinations. While seeing cheese sticks and meat sticks wrapped together is nothing new, packaging them in smaller portions and different forms appeals to the family demographic. AVOID A BUM STEER

Like so many other c-stores, Clark’s Pump-N-Shop is careful not to jump on bandwagons. When it comes to new forms and flavors, McCarty prefers to look before he leaps. Clark’s tests new meat snack items to see how they perform. The chain has tried some unusual flavors in the past, McCarty said, but they didn’t perform as hoped. Still, he’s open to trying again. “We’re testing a regional brand out of Louisville that has some different taste profiles,” he said, “but it’s too early into the test to make a determination on whether or not to roll out companywide.” Retailers will still need to walk a line between tried-and-true meat snack movers and innovative items that lure new consumers into the fold. Find the right balance, and you’ll keep them biting. CSD

cstoredecisions.com

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Foodservice | S a n d w i c h e s

Sandwiches Raise the Stakes Fresh ingredients, innovative flavors are must-haves for increasingly competitive sandwich market. Thomas Mulloy • Senior Editor

Hero. Hoagie. Submarine. Club. Grinder. Bomber. No matter how you slice it, it’s still a sandwich — and it had better be good. The NACS/Coca-Cola Retailing Research Council study “Embracing Modern Convenience” reported that consumers now have higher expectations when it comes to ingredients, freshness, health and overall quality of their meals. That includes sandwiches. The key to a creative sandwich is the sauce component, said Ryan Krebs, director of food service for the 76-store Rutter’s chain based in York, Pa. “So, by changing the sauce, you change the experience,” he said, “and I think people have gotten really savvy in different sauce profiles that they are beginning to use.” Rutter’s has a proprietary sauce it calls “R” sauce. “It’s a smoky-baconstyle aioli or mayonnaise,” Krebs said. “So, we try and play in that aioli world a little bit, which plays well into sandwiches, wraps, burgers and all those.” Rutter’s also features a Chesapeake aioli, as well as Asian flavor profiles such as sweet and sour, teriyaki and sweet chili sauce. Cliff’s Local Market Director of Foodservice Operations Derek Thurston said that while his chain’s 20 central New York stores offer the expected 70

CSTORE DECISIONS •

November 2019

cstoredecisions.com

fast facts: • Fresh, quality ingredients are a must for a successful sandwich program. • Creative sauces lift staples to new ﬂavor heights. • Co-branding with a trusted name adds to a c-store’s credibility.

Foodservice | S a n d w i c h e s

“

sandwich staples, his people also like to shake things up. “We’ll bring in LTOs (limited time offers). Over the summer I did a pork rib patty, which did pretty well for us. Did very well in some of my more rural market stores,” he said. When it comes to specialty items, Cliff’s features a harvest chicken wrap or chipotle chicken crunch wrap, which includes unique ingredients like dried cranberries, sweet Vidalia onion dressing or Fritos. Meanwhile, for Rutter’s, specialty items extends to jumping into the plant-based food market. Rutter’s recently introduced a plant-based burger from Dr. Praeger’s Purely Sensible Foods of Elmwood Park, N.J. “It hits all the key categories for that true ﬂexitarian,” Krebs said. He chose Dr. Praeger’s for what he called its cleaner label, and because it’s lower in cholesterol, saturated fat and sodium. Rutter’s

We do a secret shop every single month to make sure that service is going well, the sandwiches are being made right,” Thurston said. “And we’ll have people take pictures of the sandwiches to make sure that they’re making them in the correct sequence with the correct formulas from store to store. — Derek Thurston, director of foodservice operations, Cliff’s Local Market

also introduced to its breakfast lineup a plant-based ‘egg’ option, from JUST Egg. MAKE IT FRESH

According to “Embracing Modern Convenience,” one-ﬁfth of those who shop c-stores fewer than once a month say it’s because they link them with lower quality and/or less healthy foods and beverages. Krebs said there are two ways to convey quality. The ﬁrst is the most direct — consumers simply tasting the quality. As an example, he pointed to Rutters’ proprietary pork belly that he called “outstanding.” The other way, he said, is through cobranding. “And so, people are trusting certain brands more,” said Krebs. “And I think you’re starting to see that leveraged in

Rutter’s recently added the Dr. Praeger’s Purely Sensible Foods plantbased burger to its menu, as well as a plant-based egg selection. 72

CSTORE DECISIONS •

November 2019

different areas, whether it’s through the sauces of Ken’s or Sweet Baby Ray’s.” The demand for high-quality ingredients extends even to the grab-and-go shelf. “As long as it’s high-quality ingredients, if you’re watching yourself by tracking it, making sure that it’s a good product — you’ll sell that stuff,” said Thurston. “Obviously, you’re going to have waste, but waste is part of any good foodservice program. You can’t be afraid of waste. If you’re afraid of waste, you might as well not do the program.” CHECK YOURSELF

Cliff’s Local Market goes a step further to assure quality, regularly monitoring its own performance. Thurston said customers should expect to get a good, consistent sandwich regardless of in which Cliff’s location customers make a purchase. “We do a secret shop every single month to make sure that service is going well, the sandwiches are being made right,” Thurston said. “And we’ll have people take pictures of the sandwiches to make sure that they’re making them in the correct sequence with the correct formulas from store to store.” CSD cstoredecisions.com

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Foodservice | Pizza & Roller Grill

Building on Pizza, Roller Grill

Limited-time offers and innovations keep c-store menus fresh, while quality and consistency, of old favorites and new, bring customers back for more.

Isabelle Gustafson • Associate Editor

As c-stores continue to grow their foodservice offerings, many are adding excitement to tried-andtrue roller grill and pizza programs through limitedtime offers (LTOs) and customization, while driving trial and repeat visits through sampling. To demonstrate the quality of its products and ingredients, La Crosse-Wis.-based Kwik Trip runs a sampling program at its more than 600 c-stores throughout Wisconsin, Minnesota and Iowa. “We hire people just to be food product demonstrators, and their sole responsibility is to sample food to our customers,” said Paul Servais, 74

CSTORE DECISIONS •

November 2019

retail food service director for Kwik Trip. Despite industry efforts, customers may still be wary of “gas station food.” Allowing them to try before they buy builds trust and, for Kwik Trip, has led to increased sales. “It’s really helped our stores sell more food,” said Servais. “... if you want to convince people that your food is good, and it’s of quality and value, you’ve got to put it in their mouth.” ENABLING CUSTOMIZATION

At the roller grill, above all, customers want an easy-to-eat option for dashboard dining. Still, roller grill, like all categories, is changing.

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Foodservice | Pizza & Roller Grill

Kwik Trip offers a wide variety of condiments and toppings to enable customization in the roller grill category. Top sellers for the chain include roller bites and egg rolls.

CSTORE DECISIONS •

Tiffany Dumas, operations and human resources manager for Jordan Holdings, said the c-store retailer is able to offer the quality, value and customization that customers want thanks to its Hunt Brothers Pizza program. “For the same cost as a frozen pizza, a family can have a freshmade pizza customized with fresh ingredients to their speciﬁcations,” said Dumas. Among the toppings and specialty pizzas available, she said pepperoni, without question, is the best-seller.

“A close second is ‘Lotsa Meat,’” she said. “We have many customers associated with the logging industry, and they prefer this hearty option.” LIMITED-TIME OFFERS

Unsurprisingly, pepperoni is the favorite at Kwik Trip, too. But the chain offers plenty of other varieties through its proprietary program, including Chicken Carbonara, Breakfast, 4-Meat, Chicken Alfredo and the Mac and Cheese Pizza, which started as an LTO.

“

November 2019

We’re always playing with different sauces. … Our goal is, let people buy their hot dog or their hamburger or cheeseburger, and then we have a massive condiment bar so they can go and ﬁnish it (with toppings) however they want. — Paul Servais, retail food service director, Kwik Trip

“

“The most popular roller grill items today are not hot dogs, as you would expect,” said Servais. He said roller bites and egg rolls are some of Kwik Trip’s top sellers. “We’ll run those on promotion once in a while, like a buck for egg rolls, and we’ll sell over half a million in two weeks,” he said. Kwik Trip also offers a wide variety of condiments and toppings to enable customization in the category. “Our goal is, let people buy their hot dog or their hamburger or cheeseburger, and then we have a massive condiment bar, so they can go and ﬁnish it (with toppings) however they want,” Servais said. One of the biggest trends, especially among young consumers, is spiciness, so Kwik Trip keeps several hot sauces available to add to any roller grill item. “You’ve got to have ﬂavor on your condiment bar,” said Servais. “We’re always playing with different sauces.” Jordan Holdings LLC, which operates a branded Jordan Mini Mart in Chatom, Ala., and an unbranded Jordan Fillin’ Station, in Wagarville, Ala., also sees how important customization is to customers.

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“

We ﬁnd our customers enjoy the special, limited-time-offer pizzas when they are available; but generally, they come back to the classics in the long run.

“

— Tiffany Dumas, operations/human resources manager, Jordan Holdings LLC

Hunt Brothers Pizza enables Jordan Mini Mart to offer the quality, value and customization that customers want, said Jordan Holdings’ Tiffany Dumas.

“For the last few years, we’ve had a really robust LTO program, so we’re constantly rolling new pizzas in and out,” said Servais. Other LTOs on the calendar include Buffalo Chicken, Meaty Italian and Four Cheese Margherita. Next fall, Kwik Trip plans to offer an Oktoberfest pizza. “We’re always playing, always having fun with pizza,” said Servais. “Right now, we have a pizza in our stores called a Tailgater, and it’s a football pizza. It’s got sausage, pepperoni and cheese curds on it. ... It’s been an annual favorite in the fall. All summer, customers call in, asking, ‘When’s the Tailgater coming back?’” When it comes to LTOs, the company’s central commissary, which makes the pizzas for all Kwik Trip stores, serves as a big advantage. “Once we throw it together, we know that over the course of two days, we can run 60,000 pizzas. So that’s how many we make,” he said, adding that 60,000 pizzas takes about four to six weeks to sell. “When they’re gone, they’re gone, and we move on to the next one.” But if a pizza is really popular, 78

CSTORE DECISIONS •

Kwik Trip will bring it back again for a limited time or add it as a permanent menu item. Despite its LTOs and innovative styles, Servais maintains that, for the most part, Kwik Trip sticks to the basics. On both the East Coast and West Coast, Servais knows customers often seek out trendier toppings and ingredients. “I know there’s a lot of talk of gluten-free crusts. People are

November 2019

starting to put mozzarella balls on pizza. … But out here in the Midwest, it’s still just comfort foods — what people are used to.” The same holds true at Jordan Mini Mart. “We ﬁnd our customers enjoy the special, limited-time-offer pizzas when they are available,” said Dumas. “But generally, they come back to the classics in the long run.” CSD

fast facts:

• Sampling demonstrates foodservice quality to apprehensive customers. • Even when old favorites reign supreme, limited-time offers and innovations attract new customers and keep menus fresh. • At the roller grill and beyond, customers want customization via different sauces and toppings.

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Foodservice | H o t D i s p e n s e d

Fall Brings Brisk

Hot Beverage Sales As fall temperatures continue to dip, retailers are ready as customers warm up to hot dispensed beverages beyond breakfast and look to satisfy their increased cravings for go-with snacks. Marilyn Odesser-Torpey • Associate Editor

With pumpkin spice still a must-have in bean or creamer form for any fall coffee program, convenience stores are also looking at other hot beverages and ancillary items to build seasonal sales. At the 35 Cubby’s convenience stores in Iowa, Nebraska and South Dakota, for example, more ﬂavors of powdered cappuccino, mochas and lattes are added to the selection. And while customers enjoy hot chocolate all year, they particularly like combining half coffee and half hot chocolate in the chillier months to make their own fancy creation. Depending on the size and volume of the stores, Cubby’s offers between two and ﬁve varieties of its own branded coffee. Instead of adding limited-time offers (LTOs) to its lineup of brews, which Wilson said often results in a lot of waste, the stores provide syrups for customization. BEAN-TO-CUP

This year, Cubby’s is focusing on the basics when it comes to coffee, recently installing bean-to-cup equipment in three of its stores, said De Lone Wilson, president of Cubby’s. In one store, the new equipment has become so popular it has already replaced traditional brewers. November 2019 • CSTORE DECISIONS

Foodservice | H o t D i s p e n s e d

Cenex Zip Trip sees a 15% lift in hot dispensed beverage sales in the colder seasons. The chain offers up to ﬁve core coffee varieties depending on space and store sales.

“

Customers are looking for an increased boost of caffeine in their hot beverages, whether coffee or cappuccino. — Jon Fleck, merchandising manager for Cenex Zip Trip

“Customers love it because they always get a nice, fresh cup of coffee whenever they come in, even at times of day when our coffee volume sales are not as high,” he explained. “For us, it eliminates waste and the labor of preparing and maintaining the freshness of the coffee.” It takes about 40 seconds to brew bean-to-cup. At its higher volume convenience stores, Cubby’s has multiple machines to control wait time. Wilson noted that the preparation price per cup is almost identical to the stores’ former brewing systems, so the cost to the customer is still the same.

At Cenex Zip Trip stores, energy giant CHS’s corporate convenience store brand with 36 locations in Montana, South Dakota, North Dakota, Minnesota and Wyoming, increased bakery product sales go hand in hand with the fall rise in hot dispensed beverage consumption, said Jon Fleck, merchandising manager for Cenex Zip Trip. “We make sure to have plenty of doughnuts, mufﬁns, pastries and other products the customers want with their coffee, and we display them right next to the hot beverages,” he said. “We want people who may not come to us for hot beverages during the warmer

AUTUMN BOOST

Cubby’s generally experiences about a 30% increase in hot dispensed beverage sales in the fall and winter. Wilson has already seen an extra increase in coffee sales in the stores that have the bean-to-cup program. He is planning to roll the program out to the other Cubby’s stores. 82

CSTORE DECISIONS •

November 2019

seasons to see everything we have to offer.” Fleck pointed out that, during the colder seasons, Zip Trip generally sees a lift of about 15% in hot dispensed sales. Although 90% of the stores’ coffee sales come from the house Breakfast Blend and high-caffeine Hi-Rev, they offer up to five core varieties depending on the size of the coffee space and the amount of it they sell. The additional brews may include French Roast, decaf and Highlander Grogg, a Scottish blend with fragrant accents of caramel, vanilla and brandy. “We used to have six coffees and an LTO, but we were throwing too much of it away,” he said. “To keep up with seasonal flavors, we offer pumpkin spice creamer in the fall and peppermint creamer for the Christmas season.” At the five-head hot chocolate/ cappuccino station, toffee, white chocolate caramel and French vanilla hot beverages are available. By far the best seller at the station is the Hi-Rev Mocha. “Customers are looking for an increased boost of caffeine in their hot beverages, whether coffee or cappuccino,” Fleck said. CSD

fast facts:

• Limited-time-only creamers and syrups can be economical substitutes for additional coffee varieties. • Keep complementary snack items close to the coffee bar to build baskets. cstoredecisions.com

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Technology Column | Autonomous Checkout

UNDERSTANDING the Value in AUTONOMOUS

CHECKOUT Moving to a check-in instead of checkout model lets c-stores gather data and personalize the shopping experience for customers. Erin Del Conte • Executive Editor

Convenience store retailers continue to grapple with how best to respond to the disruption of frictionless checkout. I recently spoke with Crone Consulting’s CEO Richard Crone and Managing Partner Heidi Liebenguth for a podcast on autonomous checkout. Crone pointed out that Amazon Go is working at a 99.99% confidence level. “If something does fail, from our estimations, somebody is reviewing the video on the backend to see what actually happened and resolving the issue pretty quickly,” he said. For retailers to compete, they’d need a similar confidence level. “The only way that the artificial intelligence engines can get to that is by interpreting massive amounts of data,” Crone explained. “If you donate (your) SKU level data, dwell time and checkout data to (autonomous checkout) startups, you’re 84

CSTORE DECISIONS •

November 2019

going to help build a unicorn value in someone else’s business while you’re giving up the very essence, the most prized asset of your merchandising concept,” he said. “And that’s your SKU-level customer data while they’re in the store.” CUSTOMER IDENTIFICATION

Liebenguth pointed out that the real value of the machine vision and machine learning used in autonomous checkout isn’t the autonomous checkout itself, but gaining the data behind who the customer is through the check-in process. “Check-in allows the retailer to personalize the customer journey through the store, not waiting until checkout … but being able to know who they are, communicate with them while they’re in the store and personalize that experience for them,” she said. It’s important to recognize that Amazon Go is working from a clean slate and not

cstoredecisions.com

retrofitting frictionless checkout into an existing retail environment. “They have simplified this (product) mix and created a new merchandising concept. That concept is premium, prepared foods and groceries,” Crone said. “The reason is that this first generation of technology around autonomous checkout can’t read at a high ROC (receiver operating characteristic) curve, or confidence level.” Amazon has essentially eliminated many of the exceptions found in traditional retail that would pose challenges — from lottery to cigarette sales. Another approach some retailers are taking is scan and go, but some retailers are seeing shoplifting with this approach. “Another thing retailers are testing is order ahead, and this — if it’s done right — could be a replacement for self-checkout altogether,” Liebenguth said.

Order ahead can occur in a designated pickup area within the store, allowing c-stores to test machine vision technology in a limited space with a limited SKU selection, ensuring the machine vision isn’t challenged in capturing exactly what is picked up. DATA CAPTURE

The advantage and value of autonomous checkout is in making the customer experience more valuable and increasing visits and basket size. “Check-in is the area the retailer really wants to focus on because that is where you can get the most bang for your buck as far as getting a higher value out of this whole installation,” Liebenguth said.

Retrofitting a store could be years away, but all retailers today can take steps to connect with customers and make them contactable by introducing their own five-star-rated app and ensuring the data obtained through registration is harvested and used by the c-store. “Every convenience store retailer needs to exercise their data rights and have a strategy,” Crone said. “Because if you don’t have a strategy, you’re building someone else’s business from that data. …” Launching their own app gives c-stores the ability to compete, to connect with customers and to build a known, enrolled base of customers through a customer relationship model. CSD

Listen to the full podcast here:

cstoredecisions.com/2019/09/04/c-store-technology-oracle-podcastautonomous-checkout/

cstoredecisions.com November 2019 • CSTORE DECISIONS

Technology | Forecourt

Focus on the

Forecourt The right technology makes c-stores bright, inviting and more convenient to shop. Pat Pape • Contributing Editor

CSTORE DECISIONS •

November 2019

For several years, Rutter’s convenience stores communicated with fuel customers using speakers at the pumps that broadcast audio messages urging drivers to come inside after their ﬁll up and check out the store’s offerings. But times are changing, and so is Rutter’s. This summer, the chain began upgrading that advertising effort by installing full-color NCR optic monitors at the fuel pumps, which will permit Rutter’s 76 locations to promote products with both audio and video. The update was 95% ﬁnished at press time and should be completed early next year. Fuel pumps at all-new stores will feature the optic monitors as well. cstoredecisions.com

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Technology | Forecourt

In addition, Rutter’s will add contactless payment technology at the pumps, with rollout complete by the end of January, according to Chris Hartman, director of fuels, forecourt and advertising for the York, Pa.-based chain. “You’ll be able to pay with your mobile phone, using technology such as Apple Pay or Samsung Pay,” said Hartman. “You just wave your phone, and it processes your payment with no physical card required.” NCR provides Rutter’s with its point-of-sale (POS) system and will make the technology updates to the pumps. MORE CHANGES COMING

In Lawrence, Kan., Scott Zaremba, president of Zarco USA, sells Phillips 66-branded fuel at one of his two c-stores. To pay quickly and conveniently, customers simply download the My Phillips 66 app.

“When they pull up, they don’t have to put a card in the pump,” said Zaremba. “They select the number of the pump they want to use, and the app sends them an encrypted four-digit code. They punch in the code and start fueling.” The system is secure because personal credit card data never goes into the pump, he said, which is good news for consumers. According to a recent online survey of 1,270 adults by YouGov and ACI Worldwide, a provider of banking solutions, 62% of U.S. adults are concerned about the security of their financial data when paying at fuel pumps and c-stores. “It’s a walletless payment system,” Zaremba said. “You don’t have to have your wallet with you to buy food inside, or fuel or a car wash at the pump; it’s all done without ever swiping a credit card. My Phillips 66 mobile app is one of the coolest technical advances

I’ve seen. It’s one of the reasons I decided to brand Phillips 66.” SIGN OF THE TIMES

Rutter’s management was won over by LED lighting a decade ago when the company updated its forecourts and canopies. In addition to the clean, bright look LED provides, “there are savings in utilities, as well as maintenance costs, because the bulbs last much longer,” said Hartman. Along with color monitors and contactless payment, Rutter’s has added large electronic message boards with LED lights to the outside of new and remodeled stores, allowing them to communicate with passing drivers and pedestrians on the street. “These are huge message centers or electronic billboards on our property,” Hartman said. “We can show photos and let people know what we have, and we can update the message whenever we want.” Whether the signs are promoting

This summer, York, Pa.-based Rutter’s began upgrading its advertising effort by installing full-color NCR optic monitors at the fuel pumps, which will permit all Rutter’s locations to promote products with both audio and video. 88

CSTORE DECISIONS •

November 2019

cstoredecisions.com

Technology | Forecourt

In May, Chevron announced it would add more than a dozen EVgo fast chargers, all ranging from 50 kW to 100 kW capacity, to five Chevron stations in California.

fresh food or advertising specials, colorful graphics and animation support the missive. “The message board says that we have beer, so now customers can come inside and see our beer caves, which we’re proud of,” Hartman said. “I know people notice the signs.” While the electric signs and new pump technology were big investments in the stores’ exteriors, “we feel it helps us let customers know about our diverse offerings,” he said.

than 300 locations across 11 western states; and Spinx, which operates more than 80 c-stores in South Carolina, are among c-store chains that have installed electric vehicle (EV) charging stations at some locations. In May, Chevron announced it would provide more than a dozen RECHARGING STATIONS EVgo fast chargers — ranging from OnCue, with 75 locations in Okla- 50 kW to 100 kW capacity — at five homa; QuickChek, with 153 stores Chevron stations in California. in New Jersey and New York; Salt As of May 2019, there were more Lake City-based Maverik, with more than 68,800 Level 2 (adds 10-20 miles of range per charging hour) and DC (direct current) fast charging units (adds 60-80 miles of range per 20 minutes of charging) throughout the U.S., according to the U.S. Department of Energy. More than one-third of EV charging units • From fuel-pump monitors to are in California. mobile payment, forecourt Currently, the number of public U.S. charging stations technology gives c-stores an is a “chicken and egg” situedge in a competitive market. ation. Without an adequate number of accessible char• The appeal of bright and elecgers, consumers hesitate to tronic signage can convey a invest in EVs. But if more safe, friendly store, while alertpeople don’t buy EVs, businesses won’t install ing customers to deals inside. chargers. A fast and dependable

fast facts:

CSTORE DECISIONS •

November 2019

recharging network that allows for quick recharging is mandatory for the expansion of the nation’s e-vehicle market, according to the Fuels Institute, a nonprofit dedicated to the issues surrounding vehicles and the fuels markets. Even in California, where plans call for 26,000-plus new charging stations by 2025, the state may come up more than 41,500 chargers short based on current expectations, reports the International Council on Clean Transportation, a nonprofit scientific research organization. FIRST IMPRESSIONS

The c-store forecourt is the first impression customers get of any store. A clean, bright, inviting forecourt tells customers they’ve come to a safe, friendly place. Forecourt technology helps convey that message. Rutters’ forecourt updates indicate what the chain is working toward, including efforts to “promote what we have inside and be in the forefront of the technical race in the industry,” Hartman said. “Our goal is to always be No. 1 in what we try to do. If we’re not ahead, we’re in the process of getting there.” CSD

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Technology Column | POS

TOUCHPOINTS:

THE NEW

POINT OF SALE

The NACS Show looks ahead to new point-of-sale solutions as technology evolves. Ed Collupy • W. Capra Consulting

New touchpoints are challenging traditional point-of-sale (POS) systems used in the convenience/petro retail industry, as customer-experience-driven technologies, global solution providers and industry leaders look to move their companies forward. For example, as more convenience store retailers wade into foodservice, they’re being challenged to improve the speed of service, an important part of customer expectations. In-store foodservice kiosks, in essence POS devices, are being deployed to let customers customize their orders, upsell to drive profits and speed up the checkout experience. The traditional and leading POS providers to the industry have their own kiosks and back-ofhouse kitchen systems, but many retailers are looking for alternatives. There are both new solutions and movements underway to address this concern. At the National Association of Convenience Stores (NACS) 92

CSTORE DECISIONS •

November 2019

Show, held last month in Atlanta, there was no shortage of solutions on hand to help c-store retailers prepare for the future. Of note, one solution provider looking to emerge in the U.S. market demonstrated a large-screen solution integrated to the back-office and payment provider — not the POS. Self-checkout was a big part of the conversation around POS. More c-stores are considering these solutions as they look to ease labor concerns and provide their customers with checkout options. The leading POS providers all have self-checkout hardware and software solutions while cashierless checkout experiences are being trialed and implemented throughout the industry.

POS SHIFT

The buzz at NACS from the educational sessions to the show floor is that retailers are thinking and talking about a POS shift. Nick Peters, IT director at Holmes Oil Co., with 26 Cruizers Convenience Marketplace locations throughout central North Carolina, spoke of its recent implementation of the SKIP scan-and-go mobile app, describing this touchpoint as “sticky,” referring to customer reuse once they’ve tried it. “Traditionally, the cash register has been the most important part of the store tech stack. It should be the least important,” Ed Dzadovsky, Circle K’s vice president of North America IT, told NACS Show attendees. “We need to be focused on data and a transaction engine that enables customers … wherever they are.” To his point, POS touchpoints

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Technology Column | POS

Holmes Oil Co., with 26 Cruizers Convenience Marketplace locations throughout central North Carolina, implementated the SKIP scan-and-go mobile app earlier this year at all locations and found the touchpoint to be “sticky,” meaning customers reuse it once they’ve tried it.

provide lots of data, and retailers are finding value in consolidating data from multiple touchpoints in one place. The traditional back-office solutions they use are often being supplemented by new-to-industry data management and analytics solution providers. Difficulty in extracting historical data from back-office systems and software as a service (SaaS) opportunities to help smaller independent operators manage cigarette rebates are some of the drivers leading to implementation of these new and extended back-office solutions. During the Digital Transformation session at NACS, a group of retailers leading the charge with Conexxus for more data access and easier integration capabilities through an Application Programming Interface (API) outlined some of their unmet needs. Daniel Gaddy, IT director at Spicewood, Texas-based Kwik Chek and Jim Wenner, vice president IT at Altoona, Pa.-based Sheetz, both spoke of solutions that they currently have deployed that need Price Book data from their back-office systems, and how a more common and seamless methodology to extract and import between these touchpoints would significantly speed up implementation efforts. 94

CSTORE DECISIONS •

Git’N Go Market, based in Clinton, Tenn., recognizing that its mobile app needed more relevance, teamed up for a test with its POS provider, using available APIs, a digital coupon service provider and The Coupon Bureau to provide its customers with offers and enhanced customers’ mobile devices as a touchpoint in the checkout process. There are clear indicators of global and start-up POS-system providers preparing to make an entry into the U.S. convenience market. Some readily admit the challenges that full-featured fuel capabilities present to them, but see an opportunity to provide a POS alternative. One global provider at the NACS Show demonstrated a POS system unlike others available today that looks and works just like an app — swipe motions and function icons leading to action ‘buttons.’ Several vendors with solutions already implemented in other parts

November 2019

of the Americas, in U.S. supermarkets and in independent non-fuel c-stores (one with 600+ stores implemented), were at this year’s NACS Show ready to demonstrate capabilities and discuss their plans to advance their solutions. As additional POS touchpoints continue to be developed, ease and speed of implementation will be critical to retailer adoption as they look to solution providers approaching the market with open architected systems in the store or the cloud, in a customer’s hand or at their desk, virtualized or as a service. Ed Collupy, executive consultant at W. Capra Consulting Group, can be reached at ecollupy@wcapra.com. Visit www.capraplus. com for more retail technology and business insights. Collupy has IT leadership and business team experience providing strategic, operational and project leadership to retailers, emerging businesses and technology companies.

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Operations | Restrooms

Refreshing the

Restrooms From ambiance and design to cleanliness and touchfree fixtures, retailers are boosting their restrooms’ appeal to woo customers away from the competition. Erin Del Conte • Executive Editor

The state of a convenience store’s restroom — from overall cleanliness to design and ambiance — impacts customer perception of the entire store and affects the site’s bottom line. In the U.S., one in two customers opt to spend more at a store with clean and well-maintained restrooms, according to the 10th Annual Healthy Hand Washing Survey by Bradley Corp. What’s more, respondents who said they would “deﬁnitely” or “probably” spend more money grew by seven points to 52% in 2019 compared to 45% in 2018. The survey further found 64% of consumers make a conscious decision to choose a business based on its restrooms’ good condition, while 96

CSTORE DECISIONS •

November 2019

55% are unlikely to return to a business after a bad restroom experience. When setting out to construct a Big Horn Travel Center off Interstate 20 and Markum Ranch Road in Fort Worth, Texas, Lisa Hodgkins, owner/operator of Big Horn Travel Center, knew the restrooms needed to be top-notch to attract travelers. Hodgkins has operated c-stores for 25 years, and in addition to Big Horn Travel Center, she operates two c-store locations: Greyhound Paca-Sac in Strawn, Texas, and Circle H2 in Lipan, Texas. The company partnered with design ﬁrm Paragon Solutions in designing the travel center. Construction began at the end of 2016, and the site opened in April 2018. cstoredecisions.com

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Operations | Restrooms

(Right) TA Express Coffee Cup Travel Plazas’ newly designed restrooms are doorless with touchfree flush valves and water faucets, and are tiled from floor to ceiling. (Below) Toilets in both restrooms are enclosed in stalls with solid core doors for maximum privacy.

“I wanted something almost like I would enjoy having in my home,” said Hodgkins, of the restroom design. The Big Horn Travel Center carries a Western style and ‘Big Horn’ theme throughout the store and into the restrooms. Antler chandelier light fixtures hang above the checkout counter, while taxidermied animals — from moose heads to a lion — decorate the walls. “At the entrance of the restrooms, there’s no door to the bathroom itself — it’s just a wall. On the entrance to the women’s (restroom), we have a big silhouette of a doe. You can see it from the hallway as you enter,” Hodgkins said. The men’s restroom likewise features the silhouette of a large buck. “It’s a real neat accent,” she said, adding the silhouette cutouts are made of textured stainless steel. “We get lots of compliments on that.”

CSTORE DECISIONS •

November 2019

INVITING & CLEAN

Once inside, the restrooms are “very inviting, very appealing to the eye” with granite countertops and “pretty tile,” Hodgkins said. “The wall behind the sink is completely mirrored. We have wood doors. I wanted everything to be classy and upbeat. We have amber lighting, which is kind of neat. It’s just a whole lot like you would design one for your home, only bigger.” The women’s restroom features eight stalls and the sink area measures about 15 feet across with two sinks, plus two hand dryers and paper towel dispensers. The color scheme features warm and neutral colors. Hodgkins remains diligent about restroom cleanliness. Because grout lines can stain and cause a grimy appearance, she made sure the grout lines were as small as possible. All fixtures are touchfree, including the selfflushing toilets, sinks, hand dryers and paper towel dispensers. (Touchfree) is “more convenient,” Hodgkins said. “It actually saves water, and so economically it was better as well. And it was also more convenient for my customers.” When considering store restrooms at one of her sites, Hodgkins thinks about her preferences when she travels. “I’m big on clean. My employees know if they work for me, they’re going to clean.” It’s no easy feat in a busy truck stop, with six

cstoredecisions.com

Operations | Restrooms

Big Horn Travel Center carries a Western style and ‘Big Horn’ theme throughout the store and into the restrooms. On the entrance to the women’s restroom, the silhouette of a doe greets customers. The men’s restroom features the silhouette of a large buck.

diesel bays and a constant influx of truckers. To keep employees on top of the cleaning schedule, reminders pop up on the registers. The travel center also has a full-time maintenance staff. The travel center is open 24 hours. “The staff that comes in at night deep cleans the restrooms. And then I also have a company that comes in once a month and washes them down top to bottom,” she said. TOUCHFREE DESIGN

TA Express Coffee Cup Travel Plaza recently embarked on a redesign of its Vermillion, S.D., location at I-29 & SD Hwy 50. It partnered with Paragon Solutions for the redesign, which includes a pocket park (mini-park), a dog run, foodservice including Cinnabon, Caribou Coffee, Pizza Hut, Subway and a Grab-N-Go deli; self-serve checkout, four electric fireplaces and

fast facts: • Some 64% of consumers make a conscious decision to choose a business based on their restrooms’ good condition, according to the 10th Annual Healthy Hand Washing Survey. • T ouchfree restroom fixtures are convenient for customers, help convey cleanliness and can help save water. 100

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Mezzanine seating, as well as an upscale restroom design. “Prior to the redesign, the restrooms were more conventional with swinging doors with manual flush valves on all fixtures,” said Tom Heinz, president, Heinz Inc. and TA Express Coffee Cup Travel Plazas, which operates four locations. “The new designed restrooms are doorless with touchfree flush valves and water faucets, and tiled from floor to ceiling.” Toilets in both restrooms are enclosed in stalls with solid core doors for maximum privacy, he added. “Lavatory sinks are Bradley Advocate Lavatory Systems (and have) soap dispensers, water faucets and hand dryers all contained, which look and work great.” “Let’s face it, mother nature is a huge driver for travel stops,” Heinz said. “Restrooms are one of the highest traffic areas in the store, so it’s critical customers are able to flow in and out with minimal bottleneck. The location is wowing throughout, so the restrooms further enforce that perception.” TA Express Coffee Cup has recently updated its restrooms at its other three locations, as well, to include the doorless entries and touchless fixtures throughout. CSD

cstoredecisions.com

Congratulations!

2019 Chain of the Year

Professional Supply is a multi-level janitorial supply company, distributing a widespread assortment of chemicals, tools, and machinery. From restrooms to gas islands, we provide the products necessary to maintain a convenience store. Specializing in convenience store supply, our company works jointly with c-store warehouses to stock quality, cost-effective, and convenient products that reflect time/cost efficiency when used by c-store associates. Many major industry chains have trusted Professional Supply to maintain their stores. We offer both direct-ship and wholesale distribution options to our partners, nationwide.

(800) 236-8675 cleaningstuff.com Sheboygan, WI 53083

Operations | S u c c e s s i o n P l a n n i n g

Road map for the future

Taxes are one of many considerations when creating an effective succession plan. Mark Battersby • Contributing Editor

Sooner or later, everyone thinks about retirement. For those who own a closely-held or family convenience store or business, retirement is more than just a matter of deciding not to go to work anymore. In addition to ensuring there will be enough money to retire, convenience store owners must decide what will happen to the business when they are no longer in control. At its most basic, a succession plan is a documented road map to be followed in the event of the owner, partner or shareholder’s death, disability or 102

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retirement. An effectively developed succession plan can involve selling the business to provide a retirement nest egg, or continuation of the convenience store business, with gradual changes in management and/or control, to ensure a source of retirement income or any combination thereof. Although important, taxes should not be the primary factor in succession planning. In fact, the dreaded estate tax applies only after the estate’s value and gifts exceed an inflation adjusted $11.4 million per individual, with a $21.8 million exemption.

cstoredecisions.com

THE WESTIN

CHARLOTTE September 13-16 THE MOST AWAITED C-STORE EVENT OF THE YEAR!

2020 CSD_Ad_Template.indd 60 1 NAG20_STDad_9-19_Vs1.indd

9/11/19 9/9/19 9:42 3:24AM PM

Operations | S u c c e s s i o n P l a n n i n g

fast facts: CONSIDERING TAXES

Of course, there are always tax issues to consider. Take those family limited partnerships (FLPs), for example. Using a controversial FLP allows gifting shares of the convenience store operation to family members while generating lower tax bills for both the business and the owner. First, a partnership with both general and limited partnership interests is created. Then, the business is transferred to this partnership. A general partnership interest is retained for the owner, allowing a continuation of control over the day-to-day operation of the business. Over time, the limited partnership interest is gifted to family members. Another strategy, the Employee Stock Ownership Plan (ESOP), allows the owner of an incorporated c-store business to sell his or her stock to the ESOP and defer the capital gains tax. Ownership can be transferred to the operation’s employees over time, with an income tax deduction for the business’s contributions to the plan. An ESOP provides a market for the shares of owners who leave the business, a strategy for rewarding and motivating employees, as well as benefitting from available borrowing incentives and acquiring new assets using pretax dollars. PLAN DEVELOPMENT

To keep the income rolling in without having to show up for work every day, succession planning might involve the outright sale of the owner’s interest in the c-store business. When the business interest is sold, the seller receives cash (or assets that can be converted to cash) that can be used to maintain the seller’s lifestyle or pay his or her estate taxes. Developing a succession plan is a multi-phase process outlining in detail the who, what, when, why and how changes in ownership and management of the c-store business are to be executed. Obviously, business owners seeking a smooth and equitable transition of their interests should seek competent, experienced advisers to assist them in this matter. No matter 104

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• Developing a succession plan is a multi-phase process outlining in detail the who, what, when, why and how changes in ownership and management are to be executed. • To be complete and effective, a succession plan must be continually revisited, reviewed and updated to reflect changes in the value of the convenience store operation, market conditions and more.

how talented and earnest those professional advisers are, their limited specialties should never dictate the choices for the business or the owner, shareholder or partner’s family. A lawyer can make compelling arguments for many strategies. A CPA can be very convincing when suggesting strategies for controlling income taxes. And it is a similar story with financial planners and insurance professionals. Finally, succession planning isn’t something that can done once and forgotten. To be complete and effective, a succession plan must be continually revisited, reviewed and updated to reflect changes in the value of the convenience store operation, market conditions and the owner, shareholder or partner’s health, as well as the abilities and passion of the people it will be passed on to. CSD

cstoredecisions.com

2020 May 4-6

NASHVILLE TENNESSEE

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10/25/19 12:59 PM

PRODUCTShowcase

Savory Snack Packs Chiquita Bites — savory snack packs featuring fresh fruit, cheese and nuts — contain at least seven grams of protein and come in single-serve trays. Great for busy parents on the go who don’t want to sacrifice nutrition and flavor. The five varieties include: apple wedges, cheddar cheese and red grapes; apple wedges, Monterey Jack, cranberries and cashews; apple wedges, Monterey Jack, cranberries and raisins; apple wedges, cheddar cheese and multigrain crackers; and apple wedges, cheddar cheese and pretzels.

Fresh Express

www.freshexpress.com

Smokehouse Sausage Sticks

Vegan Cookie Dough C-stores now can offer fresh cookies from Rich’s — that are a vegan alternative to traditional cookies. Choose from four flavors: chocolate chip, ranger, peanut butter and oatmeal raisin. While being vegan — no dairy or eggs — these cookies are also made from simple ingredients. The 1.5-ounce dough pucks arrive frozen, 210 per case, with a baked shelf life of seven days. Each case includes vegan stickers for merchandising. The suggested retail price (SRP) is 79 cents each or two for $1.

Rich Products Co.

Founded in 1932, Bridgford is a fourth-generation family company that makes high-quality meat snacks and dry sausage. The Sweet Baby Ray’s line of beef jerky is one of the top-selling jerky brands in the U.S., and the company has recently launched All Natural Smokehouse Sausage Sticks. The products are made with 100% American beef and pork in Chicago. Bridgford manufactures these items itself and does not utilize co-packers. The company offers creative merchandising solutions as well as customized programs.

Bridgford Foods Corp. (312) 520-8311 rmueller@bridgford.com

www.bridgfordfoods.com

www.richsconvenience.com

All-Natural Gummy Candies Sugarpova launched its all-natural gummy candies in four new fruit flavors. These sweet and sour treats debuted in Sugarpova’s signature kiss shape with colorful new packaging to match. All Sugarpova confections are made with all-natural ingredients, such as organic cane sugar, fruit, vegetable and other plant extracts like sunflower oil and spirulina. Founded by tennis champion Maria Sharapova, Sugarpova is a premium confection line that celebrates hard work. All Sugarpova confections are affordably priced and made from premium, natural, non-GMO ingredients. The suggested retail price (SRP) is $4.99 per five-ounce bag.

Sugarpova Inc.

www.sugarpova.com 106

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PRODUCTShowcase

Back-of-House Operating Platform BOHA! by TransAct offers a one-stop solution for restaurants and foodservice companies to address their current back-of-house operating requirements while providing a future-ready platform capable of addressing back-of-house operations as they continue to evolve. BOHA! is a complete solution for companies who want to automate their back-of-house operations. It brings inventory management, temperature monitoring of food and equipment, food safety labeling, food recalls, checklists and procedures, equipment servicing and delivery management together in one solution, from one vendor.

TransAct

www.transact-tech.com

Biodegradable Straws WinCup is launching a new line of straws and stirrers made from Danimer Scientiﬁc’s Nodax polyhydroxyalkanoate (PHA). Nodax PHA is derived from canola oil and is a marine-biodegradable, soil-biodegradable and homecompostable material. As the demand for off-premise disposable products surges, so does the desire for more environmentally friendly to-go ware that meets consumer performance expectations. The PHA resin used to manufacture the phade straws and stirrers will be certiﬁed by TUV/Vincotte for biodegradability in marine and soil environments, as well as home- and industrial-compostable environments.

Branded Order Suite

WinCup Inc.

www.wincup.com

Sour Raisin Snacks Sun-Maid Growers of California is entering the fruit snacks category by expanding its product lineup to include Sour Raisin Snacks. These naturally sweet and wonderfully sour fruit snacks are simply made of non-GMO whole fruit. They are also gluten free and contain no added sugar or artiﬁcial ingredients. Sour Raisin Snacks come in four ﬂavors, including Strawberry and Watermelon and new Mixed Berry and Grape.

Sun-Maid Growers of California

www.sunmaid.com

cstoredecisions.com

With the Affiniti Cloud QSR Suite, customers will engage deeper with your brand as they construct their favorite food creations from your branded mobile app and kiosk. Menu items, prices, images and more can all be modified for multiple sites from a centralized dashboard. The interface is completely customizable, and the designs can be tailored to fit your brand. That means deep branding customization with logos and color scheme. And with mobile payments capabilities within your branded mobile app, you can have your customers’ favorite orders ready when they arrive for pickup, curbside or delivery.

The Pinnacle Corp.

www.pinncorp.com/home/contact-us

November 2019 • CSTORE DECISIONS

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PRODUCTShowcase

Holiday-Themed Lighters Calico Brands Inc. introduces three new Holiday series to its Scripto UItima Designer pocket lighter line: Holiday, Holiday Humor and Holiday Dogs. These lighters are available in a 50-count display-a-tray and two-pack open stock. The lighters have a suggested retail price (SRP) of $1.69 per lighter in a display-a-tray and $3.49 per two-pack. The Scripto Ultima has up to 3,000 lights on full-size lighters, high fuel capacity, a premium sparkwheel design, visible fuel supply, an adjustable ﬂame and is made with polycarbonate material. All Scripto lighters feature a patented child-resistant mechanism, yet are easy for adults to operate.

Calico Brands Inc.

(800) 544-4837 • marketing@calicobrands.com • www.calicobrands.com

Antibiotic-Free Chicken Brakebush has a significant portfolio of chicken raised with no antibiotics ever (NAE) to help foodservice operators meet consumer demand. The NAE options include fully cooked, sliced and diced chicken breast items and ready-to-cook Individual Quick Freezing (IQF) breast fillets, tenders and chunks — which provide excellent flexibility for numerous menu applications. Brakebush started in 1925 and still thrives on the solid, innovative spirit of its founders. Brakebush offers a wide variety of further processed and raw IQF chicken products to foodservice establishments nationally.

Brakebush

(800) 933-2121 • www.brakebush.com

Baked Chickpea Puffs Biena Snacks released three mouthwatering ﬂavors of their Baked Chickpea Puffs: Aged White Cheddar, Vegan Ranch and Blazin’ Hot. Made from a simple, nutritious list of ingredients including chickpeas and lentils, Biena Chickpea Puffs are loaded with seven grams of plant protein and contain no rice or corn. The brand is also launching a 90-calorie single-serve, which is keto-friendly with six grams of net carbs. The three ﬂavors (SRP $3.99, 3.2-ounce; $1.79, 0.6-ounce) use real fruits and vegetables for color and wholesome ingredients, making it easier to tackle nutritional goals, even during snack time.

CBD Essential Oil Roller Global Widget’s Nature Script premium CBD topical line has introduced CBD Essential Oil Rollers. This product is formulated with 125 milligrams of CBD and luxurious botanicals to create an invigorating aromatherapy experience. CBD Essential Oil Rollers come in sleek, convenient packaging to appeal to the c-store consumer. Each 10-milliliter bottle features a rollerball for easy application. CBD Essential Oil Rollers are available in a bright, citrusy focus blend and a calming sleep blend to appeal to a variety of consumer preferences. Add to your Nature’s Script topicals display with new CBD Essential Oil Rollers today.

CB Distributors

(888) 824-3256 sales@cbprices.com

www.cbprices.com

Biena Snacks

www.bienasnacks.com 108

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PRODUCTShowcase

Refreshed Packaging

Frittata Sandwich With all-day breakfast on the rise, health-conscious consumers want a breakfast they can eat on the go and feel good about. New Jimmy Dean Frittata Sandwiches from Tyson Foodservice offer a healthy, delicious, better-for-you option operators can incorporate into their offerings. Each Jimmy Dean Frittata Sandwich is low in carbs and high in protein to power consumers all day long. Jimmy Dean Frittata Sandwiches are available in three different tasty ﬂavors, including Florentine Frittata with Turkey Sausage and Cheese; Florentine Frittata with Chicken and Cheese; and Farmer Frittata with Sausage and Cheese.

After 101 years, Oberto Specialty Meats has determined that the best way forward is to go back to the beginning. The company launched a massive initiative that involves re-introducing classic hits from their early days, improving their staple products, creating new jerky products and refreshing all their packaging to highlight their focus on quality, ﬂavor and heritage. Oberto is also introducing new packaging that highlights the company’s commitment to quality and ﬂavor and pays homage to its 101-year heritage.

Oberto Speciality Meats

www.oberto.com

Tyson Foodservice

www.tysonfoodservice.com

No-Shell Pistachio Flavors Wonderful Pistachios introduced two new flavors to its Wonderful Pistachios No Shells offerings: Chili Roasted and Honey Roasted. These flavors allow the brand to reach two contrasting categories of snacking fans — those seeking heat and those who enjoy a sweet escape. Both new flavors are made with nonGMO ingredients and are available in 5.5-ounce bags for $6.99 and 2.25-ounce bags for $3.29.

The Wonderful Co. www.wonderful.com

Lentil Snack Holiday Flavors Harvest Snaps is bringing back, by popular demand, two limitededition holiday flavors: Salted Caramel Red Lentil Snack Crisps and Cinnamon Brown Sugar Red Lentil Snack Crisps. These crunchy, veggie-first snack crisps feature non-GMO red lentils as the first ingredient and are only 130 calories per serving. They also pack six grams of plant-based protein and three grams of fiber in every serving, are certified gluten free, and completely free of artificial flavors, colors, cholesterol and the common allergens soy, nuts, wheat and eggs. Sold in festive three-ounce bags, all of Harvest Snaps’ packages are part of the TerraCycle recycling program to help reduce waste and give back to charity.

Calbee North America

www.calbeena.com cstoredecisions.com

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PRODUCTShowcase

Flavorful Pizza Toppings Rosina Food Products has launched its all-new Signature Pizza Toppings line, now available for foodservice operators looking to add versatile, authentic ﬂavor to their menus. Rosina’s new pizza toppings are made with only the ﬁnest ingredients to create a made-from-scratch taste. The Rosina Signature Pizza Toppings line has eight different options, including Small Chunky Sweet Italian Sausage, Traditional Beef Mini Meatballs and Spicy Sliced Italian Sausage, that are frozen fresh for ease and convenience, and to achieve optimal moisture levels in oven temperatures up to 1,000 degrees Fahrenheit.

Rosina Food Products

www.rosina.com

Canned Cocktail Flavors Geloso Beverage Group’s Clubtails brand has launched two new malt-based Cocktail in a Can flavors: Lemonade Margarita, a tequila, lime and lemonade-flavored cocktail; and Peach Margarita, a tequila, lime and tart peach-flavored cocktail. The product appeals to consumers who enjoy traditional cocktail flavors that offer a spirit-like finish in the convenience of a can. The addition of Lemonade Margarita and Peach Margarita to the Clubtails brand enhances the ever-popular Margarita line that customers love.

Ready-to-Drink Iced Tea Fortify, Red Diamond Coffee & Tea’s newest ready-to-drink iced tea is now available in a single-serve format. Blends include lemon, ginger and mint green tea; hibiscus and cranberry green tea; and mango and peach black tea. Starting with the same process as all Red Diamond ready-to-drink tea, Fortify begins with premium, hand-picked tea leaves to ensure a pure taste. The newest offering goes a step further by cold brewing the tea for a smooth taste and enhancing it with essential elements and vitamins. Fortify is available in 16-ounce, shelf stable, readyto-drink bottles.

Red Diamond Coffee & Tea (205) 577-4000

www.reddiamondbevservice.com/ red-diamond-fortify

Geloso Beverage Group

www.gelosobeveragegroup.com

CBD Product Line E-Alternative Solutions (EAS), an independent, family-owned innovator of consumer-centric brands and sister company to Swisher International, debuted Forth Cannabidiol (CBD). Forth CBD products are driven by consumer research and contain U.S.-grown, full-spectrum CBD, which means the product contains many cannabinoids beyond CBD, along with other elements of the hemp plant to facilitate a better experience for the user. The franchise offerings were developed together with and for adult c-store consumers with impulse-buy packaging sizes as well as a variety of formats that they’re already shopping for in a convenience store environment — from disposable vapor options to tinctures, topicals and more.

E-Alternative Solutions

www.ealternativesolutions.com 110

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Classifieds/Ad Index Acqua Panna

ADD Systems

www.acquapanna.com 800.922.0972 www.go.addsys.com/build

Apter Industries

800.441.7146 www.apterindustries.com

BIC

Bob’s Red Mill

www.BICLighter.com www.BobsRedMill.com

Cardtronics

112

833.200.5250 www.cardtronics.com/CSDecisions 888.824.3256 www.HempBombs.com

Coca-Cola

5, 7

800.241.COKE / www.ccrrc.org

Control Scan

www.controlscan.com 19

E & J Gallo

www.gallo.com

Krispy Krunchy

Excel Dryer

Keurig Dr. Pepper

877.373.0069 www.EAlternativesolutions.com

877.421.4139 www.exceldryer.com

Altria Group Distribution Company

CB Distributors

E-Alternative Solutions 38-39

43 19 35

Fifth Third Bank

www.53.com/CorporateBank

FIJI Water

888.426.3454 / www.figiwater.com

5-Hour Energy

26-27

866.960.1700 www.5hourenergy.com/trade

Gulfcoast

727.449.2296 / www.gulfcoast.com

Hershey

www.HersheySolutions.com

Home Market Foods

800.367.8325 www.HomeMarketFoods.com

79 73

Hunt Brothers Pizza

800.453.3675 www.huntbrotherspizza.com/CSD

Kellogg’s

www.kelloggs.com

www.keurigdrpepper.com

Last Call Beverage

Liggett Vector Brands

Loomis

115

Mars Wrigley

MasonWays

113

www.lastcallbeverage.com 877.415.4100

www.loomis.us/SafePoint www.mars.com

800.837.2881 www.masonways.com

Monster Energy

www.monsterenergy.com

Nestle Professional

Hoshizaki America www.hoshizaki.com

800.290.6097 www.krispykrunchy.com

800.288.8682 www.CMFeelTheLove.com

9,11

Pinnacle

Professional Supply

101

817.795.5555 www.pinncorp.com/solutions/ affiniti-cloud-pos 800.236.8675 www.cleaningstuff.com

R.J. Reynolds

21, 67

www.engagetradepartners.com

Swedish Match

800.367.3677 www.zyn.com www.swedishmatch.com www.gamecigars.com

15 45 63

Swisher

116

TPE20 International

Transact Technologies

800.874.9720 / www.swisher.com www.tobaccoplusexpo.com 877.748.4222 www.go.transact-tech.com/ boho-solutions

North American Bancard

111

Tyson

PepsiCo

Werner Gourmet Meat Snacks

866.481.4604 / www.nynab.com www.pepsico.com

Philip Morris

www.tysonfoodservice.com

800.459.6420 www.wernerjerky.com

Statement of Ownership, Management and Circulation of CStore Decisions Publication Title: CStore Decisions Publication Number: 1054-7797 Date of filing: October 2, 2019 Frequency of issue: Monthly Number of Issues Published Annually: 12 Annual Subscription Price: $80 per year Complete Mailing Address of Known Office of Publication: WTWH Media, LLC, 1111 Superior Ave. Suite 2600 Cleveland, Ohio 44114 Contact Person: Scott McCafferty Telephone: (888) 543-2447 Complete Mailing Address of Headquartersor General Business Office of Publisher: WTWH Media, LLC, 1111 Superior Ave. Suite 2600 Cleveland, Ohio 44114 Publisher: John Petersen, WTWH Media, LLC, 1111 Superior Ave. Suite 2600 Cleveland, Ohio 44114 Editor: John Lofstock, WTWH Media, LLC, 1111 Superior Ave. Suite 2600 Cleveland, Ohio 44114 Executive Editor: Erin Del Conte, WTWH Media, LLC, 1111 Superior Ave. Suite 2600 Cleveland, Ohio 44114 Owner: WTWH Media, LLC, 1111 Superior Ave. Suite 2600 Cleveland, Ohio 44114 Scott McCafferty, 1111 Superior Ave. Suite 2600 Cleveland, Ohio 44114 Mike Emich, 1111 Superior Ave. Suite 2600 Cleveland, Ohio 44114 Marshall Matheson, 1111 Superior Ave. Suite 2600 Cleveland, Ohio 44114 Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages, or Other Securities: None Tax Status: Not applicable Publication Title: CStore Decisions Issue Date for Circulation Data: September, 2019 Net press run: Average, 43,963;

last issue, 43,707 Outside County Paid/Requested Mail Subscriptions: Average, 37,442; last issue, 39,681 Total Paid and/or Requested Distribution: Average, 37,442, last issue, 39,681 Nonrequested distribution by mail outside county: Average, 5,394; last issue 2,895 Nonrequested distribution outside the mail: Average 740, last issue, 763 Total Nonrequested Distribution: Average 6,134, last issue, 3,658 Total Distribution: Average, 43,576; last issue, 43,339 Copies not Distributed: Average, 387; last issue, 368 Total: Average, 43,963; last issue, 43,707 Percent Paid and/or Requested Circulation: Average, 85.9%; last issue, 91.6% ELECTRONIC COPY CIRCULATION Requested and Paid Electronic Copies: None Total Requested and Paid Print Copies (15c) + Requested/Paid Electronic copies (16a) 37,442; last issue 39,681 Total Requested Copy distribution (15f) + Requested/Paid Electronic copies (16a) 43,576; last issue 43,339 Percent Paid and/or Requested Circulation (Both print & electronic copies) (16b divided By 16c x100) 85.9%; last issue 91.6% I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fi nes and imprisonment) and/or civil sanctions (including civil penalties). Pat Curran, Digital Media Manager

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IndustryPerspective

Averting the Digital Dilemma Savvy c-store operators are organizing Internet of Things (IoT) data and putting results into action to continuously improve the customers’ store experience. Thomas Mulloy • Senior Editor

Most c-store operators are by now already familiar with the Internet of Things (IoT). Small sensors and tiny tech machines talk to each other and to us via our cell phone apps, alerting managers and associates that a cooler’s temperature is too high, a fountain drink flavor is low or any number of situations within a store that need attention. All of these small instruments are collecting data — massive amounts of it. So, what is a c-store supposed to do with all of this information? I recently spoke about that with Ed Collupy, c-store industry veteran and an executive consultant with consulting firm W. Capra, who noted that, while organizing IoT data is key, it can prove a difficult undertaking. “With all these devices, you can’t expect an operator to go to a dozen different apps or a dozen different websites to figure out what each device is telling them,” Collupy said. “You really need a single view at a place where all the data would feed into, and then report — on the one view — all of your Internet of Things’ devices and what they’re trying to tell you.” Collupy said several c-store companies are working on ways to better corral all of the IoT data streaming in from a multitude of devices. Whichever way it’s organized, operators must also have a plan to act on the information they’re collecting. Collupy pointed to how, when a fuel pump is low on receipt paper, the pump sends out an alert to refill the paper, but the alert is often ignored. Stores get busy, workers get busy. Now, imagine dozens of alerts like that sent out to store staff while they’ve got their hands full with customers. The lack of a plan undermines the very reason the store invested in the technology in the first place. NETWORK SECURITY

Let’s not forget; improved technology doesn’t come without risks. All of the information traveling wirelessly from device to device could also represent an opening into a retailer’s data system. The Ponemon Institute’s “The Third Annual Study on Third Party IoT Risk: Companies Don’t Know What They Don’t Know” found IoT-related data breaches from unsecured devices has 114

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November 2019

risen from 15% to 26% since 2017. Those numbers may, at least partly, be self-inflicted. The same study found that less than onethird of respondents said that no one person or department is tasked with managing and/ or correcting IoT risks; only 9% said they inform and educate staff and third parties about IoT risks. The lesson is c-stores shouldn’t skimp on security, and should be sure to perform due diligence into how to securely incorporate any IoT devices into their network. OWN YOUR DATA

Retailers I’ve spoken to have said they overwhelmingly believe they should retain ownership of their company’s data. Collupy agreed. “Any time you’re working with data of any type — whether it’s IoT data, scan data, transaction data or loyalty data — ensuring that you, as the retailer, own that data is critically important,” he said. What you can learn from that information is valuable. If your IoT vendor controls that data, then that vendor can capitalize on it, using it for its own purposes — such as selling it to a third party — or in a way you don’t want it to be used, like selling it to competitors. While it seems that, when it comes IoT, it’s all about the data, it’s really about customers — the lifeblood of the business. The key is using that data to help best serve your customers so they continue to return.

cstoredecisions.com

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