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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.
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Robert Buhler, President and CEO
Open Pantry Food Marts • Pleasant Prairie, Wis.
Lisa Dell’Alba, President and CEO Square One Markets • Bethlehem, Pa.
Raymond Huff, President HJB Convenience Corp. • Lakewood, Colo.
Bill Kent, President and CEO
The Kent Cos. Inc. • Midland, Texas
Patrick Lewis, Managing Partner Oasis Stop ‘N Go • Twin Falls, Idaho
Reilly Robinson Musser, VP, Marketing & Merchandising Robinson Oil Corp. • Santa Clara, Calif.
Bill Weigel, CEO Weigel’s Inc. • Knoxville, Tenn.
Vernon Young (Board Chairman), President and CEO Young Oil Co. • Piedmont, Ala.
Joy Almekies, Senior Director of Food Services Global Partners • Waltham, Mass.
Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo.
Greg Ehrlich, President Beck Suppliers Inc. • Fremont, Ohio
Doug Galli, Vice President/General Manager
Reid Stores Inc./Crosby’s • Brockport, N.Y.
Derek Gaskins, Senior VP, Merchandising/Procurement
Yesway • Des Moines, Iowa
Joe Hamza, Chief Operating Officer Nouria Energy Corp. • Worcester, Mass.
Brent Mouton, President and CEO Hit-N-Run Food Stores • Lafayette, La.
Kalen Frese (Board Chairman), Food Service Director Warrenton Oil Inc. • Warrenton, Mo.
Jeff Carpenter, Director of Education and Training Cliff’s Local Market • Marcy, N.Y.
Megan Chmura, Director of Center Store GetGo • Pittsburgh
Ryan Faville, Director of Purchasing Stewart’s Shops Corp. • Saratoga Springs, N.Y.
Caroline Filchak, Director, Wholesale Operations Clipper Petroleum • Flowery Branch, Ga.
Cole Fountain, Director of Merchandise Gate Petroleum Co. • Jacksonville, Fla.
Alex Garoutte, Director of Marketing
The Kent Cos. Inc. • Midland, Texas
Daillard Paris, Director of Petroleum Supply and Trading Sheetz Inc. • Altoona, Pa.
For any questions about this issue or suggestions for future issues, please contact me at jlofstock@wtwhmedia.com.
In her insightful and perceptive book “Radical Candor,” Kim Scott provides a step-by-step approach to building winning relationships and being an inspiring leader without losing your humanity or discarding the values that have shaped your life.
Great bosses across all facets of business have strong relationships with their employees, and Scott explains three principles for building better relationships with your team: Make the mission personal, get the job done and understand why the mission matters. When you relate to people on a personal level, share a core set of values and believe in what you do, great things will happen.
As we head to the NACS Show, something Scott wrote stood out to me. There is a chicken-and-egg interaction between our relationships and our responsibilities. “You can’t fulfill your responsibilities without good relationships, but the way in which you fulfill your responsibilities is integral to those relationships.”
This may sound obvious and intuitive in theory, but from a practical standpoint this is much harder to execute. The NACS Show is an excellent opportunity to work on your industry relationships, especially since you may be seeing partners in person for the first time since the start of the pandemic. Scott said in these situations a rudimentary approach to building relationships is a good first step. For example, earn the trust of your industry peers by connecting on a personal level. This can be something as simple as sharing a personal story or asking a heartfelt question. This creates a unique experience that emphasizes your personal values. Sharing your values and demonstrating that you practice what you preach is a highly effective way to earn the trust of your peers in the industry and the team you work with every day.
Bring that positive, can-do leadership to work each day and watch your team, and those whom you influence, soar.
When an organization and its leaders can create the right mindset within the leadership ranks, it helps drive collective organizational success by establishing a culture of accountability, while motivating your teams to deliver an outstanding guest experience, improved profitability and overall superior results.
At the end of the day, leadership is a privilege. How we think about it and how we show up each day allows us to not only impact the success of the company we work for, but impact the lives of the team members who work with us side-by-side.
New products, innovative ideas and tracking the latest trends are the lifeblood of convenience retailers. The NACS Show is an excellent opportunity to learn about the next opportunity in your stores.
C-store customers will always be attracted to your core offering of great food and outstanding service, but it’s the cool new stuff that can help you stand out. Today’s customers are always on the move looking for the next best idea, from the newest phone apps to electric charging stations, or maybe they are simply influenced by your brand refresh and new digital signs. Stores that continue to evolve with healthier foods, LED menu boards and digital screens that greet customers by name and offer targeted promotions make customers feel welcome.
In the battle to be the first to market with new products, retailers face fierce competition from other industry operators and cross-channel marketers. Despite the battle for that share of wallet, chains have come to depend on their distributors and wholesalers for the information they need to make smart business choices.
What is important for convenience store owners to note is that your wholesaler and supplier partners can’t make the decisions for you. No one knows your customers better than you. So as we look to the future, remember that the one edge this industry always maintains is convenience, and it’s a damn good one. As you walk the floor at NACS, think about your future and your customers, and what new ideas you can deliver to them to stand apart from the herd. Your customers will reward you with their loyal business.
Invenco’s secure, open and agile pay-at-pump systems and retail software services position each business for ongoing, independently-defined success.
Come see what the hype is about. visit invenco.com/s/greengrass for more details.
secure payment processing and
solutions
Young executives gathered at Nouria for educational sessions and networking with peers.
A CStore Decisions Staff Report
The eighth annual Young Executives Organization Conference (YEO) took place at Nouria in Worcester, Mass., last month, drawing young executives and next-gener ation leaders for three days of networking, educational sessions, team-building proj ects and convenience store tours.
John Lofstock, executive director of the National Ad visory Group (NAG), welcomed attendees to the event.
“I am very proud of the growth and response we are getting for YEO,” Lofstock said. “As the convenience store and petroleum industry continues to evolve, train ing the leaders of tomorrow is more important than ever before. To help young executives have a group that is solely focused on exchanging personal experiences with peers in their age group, the National Advisory Group (NAG) is proud to be investing in the future of YEO.”
“I’d like to thank Nouria for hosting this event,” added YEO Board Chairman Kalen Frese, director of merchan dising and foodservice, Warrenton Oil. Co. “I’ve been coming (to YEO) since 2018. It’s by far my favorite associ ate group.”
Frese advised new attendees to take advantage of the networking opportunities and get to know the other attendees.
Joe Hamza, chief operating officer for Nouria, gave an overview and long-term outlook for the Worcester chain.
“We’re extremely honored to have you here today,” Hamza told attendees. “I want to thank John Petersen, John Lofstock and the NAG team for putting on this oneof-a-kind event in the industry.”
Hamza said he enjoyed seeing the industry’s nextgeneration leaders all in one place.
“Today’s leaders are driven by more than just the bot tom line,” he said. “They are driven by a heightened sense of purpose, by equity, justice and community.”
In a session titled, “Perfecting Your Retail Brand,” Ernie Harker, president, Ernburn Brands, shared key takeaways on taking convenience store branding to the next level.
“I help organizations find their brand as fast as possible,” said Harker. “Not a brand that is just different. … Today brands need to elevate above differentiation to engagement.”
Harker shared examples of how branding can go wrong, and the four steps needed for brand development.
In a session titled, “Integrating Technology into Labor Management,” Jeff Carpenter, director of education and training for Cliff’s Local Market, dis cussed how technology can aid retailers in today’s challenging labor market.
Carpenter shared a number of technological initiatives Cliff’s Local Market implemented over the past year in multiple areas of the store, ranging from store inspection to networking security to the application and onboarding process. Carpenter out lined lessons learned and how the various changes benefited the chain.
In a workshop titled, “Building Leadership, Man agement and Accountability Systems,” Tom Bandy, founder and CEO, BandyWorks, shared insights on company culture and defining and implementing accountability.
Attendees broke into groups to discuss account ability strengths at their stores and the biggest needs when it comes to store manager development.
In the afternoon, attendees selected a breakout session to attend. Topics included foodservice, technology and labor management.
Ernie Harker, president, Ernburn Brands, shared key takeaways on taking convenience store branding to the next level. Jeff Carpenter, director of education and training, Cliff’s Local Market, discussed how technology can aid retailers in today’s challenging labor market. Tom Bandy, founder and CEO, BandyWorks, shared insights on company culture and defining and implementing accountability during a workshop on the first day of the conference.
Attendees enjoyed lunch on-site at Nouria. The day concluded with a dinner at The Mercantile restaurant in Worcester, Mass.
On the second day of the conference, Jayson Council, principal, Adjaycent Consulting, led a workshop that discussed how c-stores can recruit, train and retain a new generation of employees, many of whom are entering the workforce for the first time.
The interactive session allowed attendees to think about what influences their retail culture, as well as realize how they represent intergenera tional connectivity as young leaders, looking to
Jayson Council, principal, Adjaycent Consulting, led a workshop that discussed the importance of recruiting and understanding new employees in the c-store space on day two of the conference.
the present and the future, while working with those who paved the way.
Council discussed the importance of healthy dialogue and transparent leadership, among other ideas. The session emphasized that what attracted employees to your business 10 years ago, may not be what attracts employees today. Creating a helpful and engaging environment where employees feel valued can aid recruiting.
The conference concluded with tours of local c-stores, including Nouria, Alltown Fresh, Cum berland Farms and Seasons Corner Market.
On the second day of the YEO Conference, attendees visited local convenience stores, including Alltown Fresh, where they had the chance to explore, sample food and ask questions about the retail business.
YEO Conference attendees enjoyed an outdoor lunch at Nouria.
Left: Cumberland Farms opened its doors to YEO Conference attendees.
Below: Attendees toured Seasons Corner Market as the last stop before heading home.
The visits allowed the young executives to take note of what the different c-stores offer and how they appeal to their respective markets. Retailers shared their foodservice programs, growth plans and more with their visitors, giving the attendees even further chances to make connections.
Attendees had the option to arrive at the confer ence a day early to participate in a Habitat for Hu manity Operation Playhouse team building project, creating playhouses for the families of veterans. The group spent the day building two playhouses and
donating them personally to the families. The event was captured on the local news.
The YEO Conference is sponsored by Apter Industries, Hunt Brothers Pizza, Reynolds, Cardlyt ics, McLane, Paragon Solutions, Quantum Services, Republic Brands and Upside.
Nouria Energy, the host for the 2022 YEO Confer ence, will be honored on Oct. 2 at Encore at the Wynn Las Vegas as CStore Decisions’ 2022 Chain of the Year.
To learn more about YEO, visit YEOConference.com.
YEO Conference attendees had the opportunity to build playhouses for families of veterans through Habitat for Humanity Operation Playhouse.
Dual Lane
Made from U.S. steel and
Multiple-Depths range from 13" to 24".
Adjustable-Widths adapt from 1 3/4" to 17 1/2".
Tool-free installation.
Bar and shelf capable.
Auto feed any product.
Double-Wide TrayRadius or Square Tray Sidewalls
Locking, Molded Pusher
n Asymmetrical lanes sell different-width products.
n Each lane adjusts to fit products as small as 13/4" wide.
impulse buying with cross-sells and adjacencies.
n Unique design features a separate paddle to push each item forward individually in its own lane.
WonderBar® Trays
n Face more packages, accommodate a wider range of shapes and sizes, restock easily, and manage dated produce better.
temperature & extend shelf life.
n Durable cooler-capable steel construction ensures long life.
n Trays lift out for rear restocking & proper rotation.
n Versatile spring tension is gentle on delicate produce.
Expandable Wire Tray for refrigerated retail
n Quick drop-on, one-piece installation.
n Accommodates any style or size package adjusting from 3 3/8" to 17 1/2" lane width.
n Various built-in mounting capabilities available based on shelf component.
n Molded pusher paddle available, both locking and non-locking styles with wire- or metal-sided trays.
n Auto feed any product.
n Clear or Imprinted Front Product Stops.
n Vends oversize items like pizza.
Right Angle Label Holder Hook
n A simple, inexpensive design.
n Use with Quick Back® to maximize product density, provide easy mounting and relocation of stocked hooks in tight places, under shelves or in fully loaded displays, and speed re-merchandising and display changeover.
Economical All Wire Hook n Safer, rounded Ball-End Tips are available on all hooks at no extra charge and no minimum order.
n Use the Peg Hook Overlay to quickly convert All Wire Hooks to Scan Hooks.
n Standard and Gravity-Feed options keep items forwarded and automatically faced.
n Tool-free installation on most common gondola and cooler uprights.
n Stocked in 4 lengths compatible with all standard shelf sizes allowing mixed use in display.
Flip-front Label Holder swings up for easy access and product removal.
Anti-theft security hooks
n Prevent the removal of any stock or display 1 or 2 items unlocked to prevent sweeping.
n Camel-back profile prevents sweeping while providing direct access for customers.
n Flip Scan® Label Holder swings up and out of the way.
n Use of plain-paper labels can save up to 65% on labels and up to 75% on labor.
n Molded-in openings improve refrigeration air circulation.
n Top-tier sidewall available for support and containment of tall or multi-tier products.
n Adjustable width trays, designed for yogurts, ice cream, and other difficult to organize products.
n Trays lift out with easy-grip handles to allow quick restocking or cleaning.
n Easy-to-use design flexes open at a touch for fast, drop-in, plain-paper labeling, then automatically springs shut to secure the label in place.
n Unsurpassed range of sizes, styles & lengths.
n Labels shielded from dirt, spills, moisture & wear so they last longer, read easier & scan more accurately.
n Long lasting PVC construction retains “memory” and shape, resists yellowing, darkening & aging.
Choice of magnetic, adhesive or clip-on mounting systems.
Fast Break Bait & Tackle offers its customers a full fishing experience on Florida’s Lake Okeechobee, along with the familiarity of a traditional convenience store.
Emily Boes • Associate Editor
In a distinctive twist on the typical convenience store, Fast Break Bait & Tackle houses a fisherman’s paradise, ideally situated in Okeechobee, Fla., on the north end of Lake Okeechobee, which has a vast surface area (730 square miles) and enormous habitat diversity. It is Florida’s largest freshwater lake and the second-largest natural freshwater lake contained entirely within the contiguous 48 states.
Known as the Bass Fishing Capital of the world, the lake draws boaters as well as professional and recreational anglers, and Fast Break reels in the many outdoorsmen with both its convenience items and fishing gear.
“Fast Break is an outdoorsman’s one-stop shop. The concept offers lake-goers and day-to-day customers a convenience that our competitors do not — fuel, groceries, fishing licenses, ice, live bait, tackle and more — all in one location,” said Rebecca Marsocci, vice president of Fast Break.
Franklin Daniel Marsocci Sr. was the manager of Okeechobee’s first Winn Dixie store, which opened in 1973. His son, Franklin Daniel Marsocci Jr. (Danny), began working for Winn Dixie at 16 years old and became a troubleshooter by 20, traveling to and revitalizing poor-performing stores around the lake. In 1992, Danny and his wife, Linda Marsocci, purchased their first convenience store, Bill’s Mini Mart.
The following year in 1993, Frank, Danny and Linda purchased a foreclosed property containing a Fast Tracks convenience store and gas station.
The trio changed the store name to Fast Break, a tribute to the original name and the fact that they only had 30 days to correct the problem of the tank registration not having been renewed when they bought the store.
Chase and Rebecca Marsocci, president and vice president of Fast Break, respectively, grew the store together to 6,000 square feet of retail space.
The existing store was established with a 1,200-square-foot layout.
With a prime location next to the lake, the store began to attract fishermen, especially once a few pegs of tackle were added to the store.
“The vision for the store’s future became clear. Grow the tackle offerings and become a one-stop shop,” said Rebecca Marsocci.
After running both stores for 16 years, Danny and Linda let their sons, the current president of Fast Break, Daniel Marsocci (Chase), and Blake Marsocci, buy into the business in 2010. They expanded it to 2,800 square feet.
Lifelong residents of Okeechobee, Chase and his wife, Rebecca Marsocci, became sole owners of Fast Break in 2016. Fast Break grew to boast 6,000 square feet of retail space.
The convenience store is open 16 hours a day, seven days a week to capture customers going to and com ing from the lake.
Fast Break has grown as a supporter of Lake Okeechobee’s health and vitality, as well as outdoor recreation and youth in the outdoors.
The Marsoccis’ goal was to create a welcoming and comfortable atmosphere that coincides with Okeechobee’s history.
“The 1993 movie, ‘Grumpy Old Men,’ comes to mind. (Characters) John Gustafson and Max Goldman always visited the beloved Chuck’s Bait Shop, where they would purchase their supplies and swap fish stories with the attendant,” said Rebecca Marsocci.
This was the type of inspiration used to help curate the vibe of the store, and locals and visitors both tend to stay and visit for a while.
Fast Break uses natural wood accents and tarnished
corrugated metal. It displays taxidermy such as fish, ducks, deer and alligators, as well as images and artifacts relative to Okeechobee and Florida.
Upbeat music is played throughout the site and an HVAC aroma system wafts a light fragrance of citrus and key notes of Florida throughout the space.
“Given that Okeechobee is highly seasonal for tourism, we strive to give our customers an experience that is representative of Okeechobee’s heritage — an experience that is unique, pleasurable and memorable,” said Rebecca Marsocci.
Fast Break’s logo shows the outline of Lake Okeechobee with a Large Mouth Bass jumping from the center, primarily in red, white and blue colors.
“We are proud Americans chasing the American dream, and we wanted to make sure our brand is reflective of that,” Rebecca Marsocci elaborated.
The store’s large hand-built Costa (sunglasses) display tends to stand out to customers. It’s built with four solid wood posts, meant to capture the look of barnwood, which support a pitched rustic metal roof. Two large LED Costa displays are situated underneath the hut. Industrial rods attached to each post display clothing, and the entire setup resembles a small vintage bait shop, reminiscent of one featured on “Grumpy Old Men.”
Additionally, Fast Break has grown its gifts and women’s offerings with Backlash, a branded lifestyle section created by women, for women. A sub-brand of Fast Break, Backlash was designed to be more appealing to the store’s female clientele. Gifts, apparel, bags, hats, jewelry, home goods, etc. can be found in this department.
Fast Break operates six gas pumps and is Marathon branded. It carries Aviation fuel for the air boaters as well as Unleaded, Diesel and Rec 90.
Fast Break’s hand-built Costa (sunglasses) display draws customers. It resembles a small vintage bait shop, reminiscent of one featured on “Grumpy Old Men.”
Fast Break offers a full hot foodservice lineup, which includes pizza, burgers, chicken sandwiches and more.
Additionally, the store has a three-pot pour-over coffee maker. Its Keurig K4000 system, which is a single-serve coffee maker, is great for the latenight coffee drinkers.
In terms of technology, Fast Break runs the Verifone Ruby 2 Commander system with updated touchscreen registers. It has a larger back-office software system with expanded capabilities and the Square POS system, which is an alternative method for accepting payments.
“Since Marathon processes all credit card transactions, they have dollar limits on purchases made at one location. We are a dealer for marine electronics and other high-dollar tackle items that require another credit card processer for those purchases,” explained Rebecca Marsocci.
Skupos is used for grocery and tobacco loyalty discounts, in addition to the in-house loyalty punch card for live minnow purchases. For every 1.5 pounds of minnows, customers get a quarter pound for free.
In addition to standard convenience store items, Fast Break carries full lines of tackle products, both top-shelf and value items. According to Rebecca Marsocci, customers say the store is “like a mini Bass Pro Shop.”
In terms of tackle, visitors can expect to find rods, reels, terminal tackle, lures, soft plastics and more. The store also offers large lines of marine electronics and accessories as well as alligator hunting and frog gigging gear.
Fast Break boasts its large women’s and kid’s selection, localized gifts and souvenirs.
“An important thing to know about our fishing and tackle business is that we are proudly self-made. We have the local, small-business atmosphere, but with the same high-quality merchandise that is commonly thought to only be found in chain retail stores — and at competitive pricing,” said Rebecca Marsocci.
Another reason Fast Break’s fishing business does well is due to Chase’s status as a lifetime fish erman, both competitively and recreationally, and his knowledge of Lake Okeechobee’s unique eco system. He stocks gear that’s appropriate for Lake
Above: Fast Break attracts both veteran and competitive anglers due to Lake Okeechobee’s many tournaments, as well as novices.
Right: Customers can choose the type of fish they’d like to catch, as well as their preferred type of bait.
Okeechobee’s shallow water, heavy vegetation and water that is dark in color, such as stouter rods, shallow baits and lures that are darker in color.
Fast Break attracts veteran and competitive an glers, as Lake Okeechobee hosts 500-plus tourna ments annually and is a common stop for several national competitive fishing organizations. How ever, the store also benefits from Florida’s many other tourist attractions and can be found hosting novices, as well.
“The goal is to not only make sales, but to equip our customers with the knowledge and tools to make their fishing experience an exciting one, and one that they must do again,” said Rebecca Marsocci.
Fast Break doesn’t only sell the gear; it gets involved in the sport.
It has a group of USCG-licensed boat captains that take fishing charters and offer four-, six- or eight-hour trips. Customers choose the type of fish they’d like to catch, such as bass fish or pan fish (blue gill, shell cracker or crappie) and their preferred type of bait: artificial or live.
When clients arrive at the store, staff members use the state kiosk to purchase their Florida fishing licenses.
The store has 16-20 individuals on its team, comprised of men and women of all ages with diverse backgrounds, experiences and ethnicities.
Customers and team members identify with one another, Rebecca Marsocci said.
Fast Break also offers saltwater fishing charters near Fort Pierce, Fla.; Alligator Hunts; Duck Hunts; and Wild Hog Hunts.
Fast Break is involved with many fishing competi tions and hosts a fishing tournament once a year, typically outside of tourism season to drive foot traffic during slower months.
This strategy also serves as a promotional state ment for Lake Okeechobee, as it shows fishing is prominent year-round.
In the future, Fast Break plans to expand its level of convenience, particularly by incorporating VeriFone-compatible handheld POS systems to al low drive-through or drive-up services.
It hopes to further develop its loyalty programs and increase public recognition through social media and on-premises signage, especially during fishing tournaments.
Fast Break attains new customers and develops loyalty with current customers by understanding its consumers, tailoring its interactions toward them and extending an unmatched level of appreciation for their business.
As inflation mounts and recession fears set in, customers find ways to cut corners and strategize spending ahead of the holiday shopping season.
> 48% of consumers reported feeling uncomfortable with their finances in August 2022, the highest since October 2021.
> Shoppers in the 55-74 age bracket have the highest concerns about inflation.
> Inflation is more moderate for away-from-home food (7.6% vs. a year ago*) vs. in-home food (13.1% vs. a year ago*).
> Still, the typical away-from-home eating occasion costs 3.4 times more than in-home food sourced from retail.
> The nearly $1.5 trillion at- and away-from-home food market is forecast to grow around 8% in 2022, with athome food (8.7% sales growth vs. a year ago) outpacing away-from-home (6% vs. a year ago).
Source: IRI and NPD Group’s inaugural joint research, which merges IRI’s retail point-ofsale data with NPD’s continuous following of at- and away-from-home eating behaviors *U.S. Bureau of Labor Statistics, Consumer Price Index, July 2022
> 38% of customers surveyed are shopping less frequently to cope, while 43% are purchasing fewer items and 50% have switched to a lower-priced brand.
> Consumers have noticed shrinking pack sizes in chips (51%), cereal (37%), candy bars (29%) and toilet paper (26%).
Source: 84.51°, a Cincinnati-based data powerhouse that helps Kroger and its partners create customer-centric shopper journeys. Based on real-time insights surveys from August 2022
> Consumers’ holiday shopping concerns include out-of-stocks (83%), too expensive (74%) and lack of selection (61%).
> More than 32% of customers are starting holiday shopping now:
• to take advantage of discounts and promotions (30%)
• to ensure they get available items given supply chain concerns (38%)
• to spread out their purchases due to high prices related to inflation (55%)
Source: Fiserv, “Q3 2022 Gift Card Gauge”
> Three out of four customers believe the U.S is already in a recession or will be soon.
> Nearly 84% of consumers say inflation has affected their overall spending, a 9% increase from three months ago.
> 90% of consumers have noticed higher product prices in their day-to-day spending.
> Consumers are cutting back by buying items on sale, purchasing less expensive brands and choosing generic brands.
Source: Jungle Scout’s “Q3 2022 Consumer Trends Report,” an anonymous survey between Aug. 5 and Aug. 8, 2022, among 1,025 U.S. consumers about their buying preferences and behaviors. Respondents represented 48 U.S. states, all genders and ages 18 to 75-plus, as well as various employment types and income levels.
Source: Samba TV and global research firm HarrisX, “2022 Holiday Report,” which surveyed more than 2,500 U.S. adults
> The average adult plans to spend $1,041 this holiday season.
> 74% plan to spend the same or more on holiday shopping this year as they did last year.
> 83% of millennials plan to spend the same or more money this year on holiday shopping.
> 47% said they might purchase fewer gifts due to inflation and rising costs.
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1 Alternative Proteins Market Update, Technomic, 2022.
2 Impact of Plant-based Protein Purchase in Foodservice, Technomic, 2022.
3 Nielsen Shopper Explorer, Total Outlets L52 WE 3/26/22.
As retailers wait for decisions on PMTAs and the proposed menthol cigarette and flavored cigar ban, NATO outlines FDA timelines.
Thomas Briant • NATO
Convenience store retailers could be waiting until mid-2023 for decisions on remaining premarket tobacco applications and potentially up to a year for the Food and Drug Adminis tration (FDA) to review all comments related to the proposed menthol cigarette and flavored cigar ban and to decide whether to draft any changes to the guidance.
Federal law and FDA regulations require that to bacco products introduced into the market after Feb. 15, 2007, must have a PMTA submitted for review by the FDA.
In order to receive marketing authorization from the agency to allow a product to continue to be sold, the law requires that the FDA must determine that a tobacco product is “appropriate for the protection of the public health.”
The products that require PMTAs include cigars, pipe tobacco, electronic cigarettes, hookah tobacco and modern oral products. There were two deadlines for filing PMTAs with the agency. For products made or derived from tobacco itself, the FDA deadline was Sept. 9, 2020. Under a law passed earlier this year, for products with nicotine made or derived from a source other than tobacco itself, for example synthetic nico tine, the PMTAs were due by May 14, 2022.
The agency received PMTA applications by Sept. 9, 2020, for more than 8 million products that have nicotine derived from the tobacco leaf itself, the vast majority of which were electronic nicotine or vapor products. Specifically, the agency received PMTAs for more than 8.01 million e-cigarette and vapor products, 2,310 cigar products, 1,356 hookah tobacco products, 579 pipe tobacco products, 76 roll-your-own products and 61 smokeless tobacco products.
However, through its PMTA review process, and as of July 31, 2022, the FDA has refused to allow or denied marketing authorization to some 7.75 million e-cigarette and nicotine vapor products, which means the products need to be removed from the market. This leaves approximately 267,000 e-cigarette and nicotine vapor products under pending PMTA applica tions. The agency has stated in a report that it expects to finalize the review of these remaining PMTA applica tions, which include applications for JUUL, Vuse, NJOY, Logic, Blu, Smok and Puff Bar, by June 30, 2023.
Besides these PMTA refusal and denials, the FDA has issued orders authorizing the sale of only 23 elec tronic cigarette devices and nicotine e-liquids sold by R.J. Reynolds Vapor Co., NJOY and Logic. However, of the 23 products authorized, the only flavor allowed is tobacco-flavored nicotine e-liquids. To date, the FDA has not authorized any flavor other than tobacco flavor for electronic cigarette and nicotine liquid products.
The FDA received PMTAs for almost 1 million synthetic nicotine products, the vast majority being vapor products. As of Sept. 6, 2022, the FDA has refused to accept PMTAs for more than 800,000 products containing synthetic nicotine. At the same time, the agency has accepted PMTAs covering 350 products for agency review and is still processing more PMTAs for products with synthetic nicotine.
The new law passed by Congress provides that a product with synthetic nicotine can remain on the market if the FDA issued a Marketing Granted Order (MGO) by July 13, 2022. If an MGO was not issued by July 13, then the product is illegal to market. At this point in time, the FDA has not issued any MGOs for products that contain synthetic nicotine.
The FDA issued an announcement in early August, which states that manufacturers, distributors and retailers may be subject to FDA enforcement if prod ucts continue to be sold without first receiving an MGO. Generally, FDA enforcement actions are first targeted at manufacturers and a warning letter is is sued to the company informing them that their prod ucts are illegal to market. If the company continues to sell its products, then the FDA can pursue further actions including assessing fines, seizing product and seeking an injunction in the courts.
On April 28, 2022, the FDA published two new proposed regulations. These regulations are known as product standards. A product standard is the power that Congress gave to the FDA to reduce or eliminate an ingredient in a tobacco product or a constituent in tobacco smoke. This is a very signifi cant power because it can result in products being removed from the market.
One of the proposed regulations would prohibit menthol as a flavor in cigarettes, in roll-your-own cigarette tobacco and in heated tobacco products. The second regulation would also prohibit any fla vors in cigars.
Federal law requires that an agency request com ments from the public about proposed regulations.
The FDA received more than 175,000 comments on the menthol cigarette ban and almost 72,000 on the flavored cigar ban by the Aug. 2, 2022 submis sion deadline.
In response to this significant number of com ments, the FDA issued an announcement that it “will
need ample time to comprehensively review and analyze all of the comments.” In addition, a Gallup poll conducted in August of 2022 found less than a majority of Americans, only 42%, both Democrats and Republicans, are in support of banning menthol cigarettes.
Since the FDA announced it will need “ample” time to read all of the comments, it could take nine to 12 months or possibly longer for the agency to read through the comments on the menthol ban and flavored cigar ban. Then, the FDA will decide wheth er to draft any changes to the proposed regulations and, if it does so, that may take up to three months.
After any changes are made, the FDA will need to send the final proposed regulations to the White House Office of Management and Budget (OMB) for its final review and decision on whether the FDA can proceed with implementing the regulations. During this time, the OMB will meet with members of the public for their input on the final regulations. This process may take up to two months or longer.
Also, in the proposed regulations, the FDA asked for public feedback on making the effective date of the regulations two years after the final regulations are published instead of the usual one-year time peri od before the regulation takes effect. Some manufac turers recommended in their comments that the FDA consider making the regulations effective six years after the final regulations are published. Then, there is also the possibility that lawsuits could be brought against the FDA regarding the proposed regulations, which may further delay an effective date.
So, by adding up the estimated time periods for the FDA to read comments, make changes and obtain OMB final approval, it could take almost one-and-a-half years before the final regulations would be published. Then, when publishing the final regulations, the FDA will need to determine if the regulations will actually go into effect in one year or two years. When adding up all of these time periods, the estimated time when the menthol cigarette ban and flavored cigar ban may go into effect is approxi mately two-and-a-half years to possibly three-and-ahalf years from now.
Thomas Briant is the executive director for the National As sociation of Tobacco Outlets (NATO). NATO’s mission is to enhance the business interests of retailers that sell tobacco products, support the legislative and regulatory interests of members, and encourage the expansion of the retail tobacco segment in a responsible manner.
Practicing inclusion and learning about food justice can help set the stage for combating food deserts.
Ionie Banner • Emory University
Convenience stores are well acquainted with the issue of food deserts that plague many communities across the U.S. To iden tify solutions for people in urban markets, it’s necessary to examine the issue through an equity and inclusion lens.
Many factors contribute to food insecurity, such as a lack of affordable housing and low wages, but a closer look at the distribution and quality of grocery and convenience stores across neighborhoods reveals yet another impact of institutional racism.
Low-income minorities have more limited access to healthy and affordable grocery stores in comparison to wealthier, predomi nantly white neighborhoods. This unequal distribution led to 23.5 million people living in food deserts, defined by the U.S. Depart ment of Agriculture (USDA) as an area with limited access to “healthful foods that are at least one mile away.”
A consequence of racial residential segregation is that low-income and minor ity neighborhoods lack adequate access to
larger grocery stores with quality products. In cities like Chicago, where redlining was prac ticed, strategic disinvestment in and exclu sion of communities of color created neigh borhoods with increased poverty, little to no grocery stores and poor transportation, forcing communities to rely on convenience stores and fast-food restaurants.
Low-income urban areas have a higher density of fast-food restaurants and conve nience stores compared to higher income areas. Consequently, these lower-income communities suffer from hunger, poor diets, obesity and other related illnesses, as the stock available isn’t sufficient to ensure resi dents are properly nourished.
Unfortunately, the solution isn’t as simple as bringing more grocery and convenience stores into neighborhoods. The presence of these stores doesn’t equate to access.
The products sold are not guaranteed to be affordable to residents or of reasonable quality, causing residents to spend more money as they must either purchase less due to high prices or more often due to low quality.
The new stores can also set the stage for gentrification. The new stores, often a result of partnerships between local governments and supermarket leaders, seek to take advantage of the “rent gap” — the difference between current rent and potential profits — in the area.
New stores, like Whole Foods, are used to marketing in previously excluded neighborhoods as a good investment and in hopes of attracting wealthier residents.
Convenience stores that once served as safe havens for residents fail to compete with new competition and are bought out and replaced with coffee shops. Despite the addition of grocery stores and shops, residents will still find themselves in a desert, eventually leading to their displacement from the community.
Organizations have tried to use communityowned grocery stores — which are more robust convenience stores — to mitigate the impact of food deserts, but these establishments still
struggle to stock fresh foods and compete with gentrification.
To effectively reduce food deserts and food insecurity, systematic change is needed to improve things such as wages and access to affordable housing.
Larger plans to invest in communities need to be coupled with protections for current residents, ensuring that new developments will align with the needs and capacity of the neighborhood.
As individuals or organizations, donating to food banks is only a short-term solution to this larger issue.
Effective ways to act are to learn about food justice, shop at local community-owned stores, and engage with hunger relief organizations like National Black Food & Justice Alliance, Black Earth Farms, WhyHunger and Food Empowerment Project.
Ionie Banner is a post graduate student practitioner at Emory University. She can be reached at ioniebanner@ outlook.com.
Fresh off a rebranding, Terrible’s taps technology as it eyes expansion.
Erin Del Conte • Executive Editor2022 has been a big year for Terrible’s. The Las Vegas-based chain began the year with a major rebranding initiative, changing its chain name from Terrible Herbst to Terrible’s, complete with a new logo and fresh signage for the convenience stores.
Now, Terrible’s is taking on technol ogy, rolling out its new Terrible’s+ loyalty program, piloting self-checkout and expanding into delivery. At the same time, Terrible’s is looking to take its “deliberately different” programs to customers in new market areas as it plots an aggressive growth strategy in Las Vegas and beyond.
Today, Terrible’s operates 176 stores across Nevada, California, Arizona and Utah, with around 80% of the stores located in southern Nevada.
say, ‘I’m going to the Terrible’s on the corner.’ They never really said ‘Terrible Herbst,’” said Bryan Breeden, vice president of advertising and marketing for Terrible’s. “Really being cognizant of our community and the fact that they call us Terrible’s, we decided to take a step back and reevaluate our overall branding from an organizational stand point and go from Terrible Herbst over to Terrible’s.”
The decision to rebrand was inspired by the chain’s core customers.
“The customers out there, they
decisions.com October 2022 • CSTORE DECISIONS 39 Terrible’s made the decision to rebrand in 2021 and began the process in Q1 of 2022. The rebrand included updates to the store facades, fresh signage inside and out, new uniforms
that feature the Terrible’s logo, and a revamped marketing look and feel that incorporates the red, white and blue color scheme of the Terrible’s logo. Today, all legacy stores have been officially converted to the Terrible’s banner name.
Terrible’s can trace its roots to 1938, when Founder Ed Herbst opened his first Herbst Oil gas station in Chicago. Over the years, Ed Herbst continued to expand the business, branching out West and eventually moving into the Las Vegas market.
“Ed Herbst is very competitive, and he would run extremely aggressive retails versus his competition as well as doing different types of promotions like free pony rides when you would get fuel,” said Breeden. “Once he overheard one of his competitors in the state of Wyoming mention, ‘Oh, that Mr. Herbst is terrible, how he comes into new markets and tries to run aggressive retails and undercuts his competition.’ When he caught wind of that, he never really did much with it. But his son, Jerry Herbst always left that in the back of his mind.”
When Jerry Herbst took over the company in 1959 in Las Vegas, he paid homage to his father by incorporating the chain under the name Terrible Herbst Inc. The first c-store under the Terrible Herbst banner was built that same year in Las Vegas.
Headquarters: Las Vegas
Founded: In 1938, Founder Ed Herbst opened his first Herbst Oil gas station in Chicago. In 1959 in Las Vegas, his son, Jerry Herbst, incorporated the chain under the name Terrible Herbst Inc.
Store Count & Location: 176 stores across Nevada, California, Arizona and Utah
Car Washes: 73 Terrible’s car washes — both tunnel washes and touch-free washes
Loyalty Program: The Terrible’s+ loyalty program launched in July inside the Terrible’s Social House App. Customers can gain points on purchases and redeem them for C-Store Cash, which they can spend on any item in the store, except for lottery.
Burst
† Pedialyte Half Liter has 1380 mg sodium and 12 g sugars per liter; leading sports drink has ~460 mg sodium and ~58 g sugars per liter.
Terrible’s design features a rectangular footprint with an industrial, modern look, lots of windows and high open ceilings with exposed air ducts painted bright red.
In the years that followed, the company grew mostly via new-to-industry builds.
“The Herbst family has always wanted to put their own spin on things, including their own architecture and footprint, and has believed in that process over these last 60-plus years here in southern Nevada,” Breeden said.
About 15% of the locations came from acquisitions. Most recently, Terrible’s acquired Get N Go, an eightstore chain, in May and Pit Stop, a seven-store chain, in January — both in the Las Vegas market.
Jerry Herbst passed away in late 2018, and today, his son Tim Herbst helms the company as president. Tim’s brothers, Troy Herbst and Ed Herbst, are both active in the company as board members.
“Some of their children today (the fourth generation) are even starting to get their feet wet in the business,” Breeden noted.
Terrible’s stores range in size.
“We have everything from our nostalgic pumper stores that have been open since the 1960s — we have two of them that are literally just a kiosk and fuel pumps; all the way up to the world’s largest Chevron
that is in Jean, Nev., which is 50,000 square feet with 96 fuel pumps; and everything in between,” Breeden explained.
It operates a total of eight travel stores on highway corridors leading into and out of Las Vegas that measure 12,000 square feet and up.
Terrible’s latest store prototype design began rolling out five years ago and averages 4,500 square feet. The design features a rectangular footprint with an industrial, modern look and feel that includes concrete flooring, lots of windows and high open ceilings with exposed air ducts painted bright red. The color scheme includes red, white and blue, with red as the dominant color. The walls around the grab-and-go and fountain areas feature red tile.
Each store includes a wall wrap that represents the community in which it is located. The Las Vegas stores, for example, include a nostalgic, black-andwhite Vegas-themed wall wrap.
Given that Las Vegas is known for its lavish casinos and as the gambling capital of the U.S., Terrible’s Nevada-based stores appeal to tourists and local guests alike with gaming sections.
“We call them Ms. Terrible’s Slot Corners,” Breeden said.
At Terrible’s Nevada-based locations, guests can try their luck on the slot machines in a section known as Ms. Terrible’s Slot Corners.
The slot corner consists of a carved-out nook with various gaming machines inside. “It’s a staple that you would see in all of our stores here in southern Nevada,” he noted.
Terrible’s stores are also known for flying an American flag out front, a tradition that Jerry Herbst established back in the 1950s.
“We fly a flag everywhere that we’re allowed to,” Breeden said. “I think we have about 150 of our 170-plus stores currently that fly an American flag outside.”
Some of them are flown atop poles that are up to 100 feet tall.
“That’s something that a lot of people recognize our stores from,” he said. “They see the American flag and immediately know that there’s a Terrible’s on that corner.”
Most Terrible’s locations are branded Chevron, which ties in well with the chain’s red, white and blue logo.
Terrible’s forecourts are clean, modern and feature big, bright lots.
“We have bright lighting and very nice landscaping that includes palm trees. It’s very different landscaping and a different look and feel than what you would normally see at convenience stores throughout Las Vegas,” Breeden said.
Customers can access electric vehicle charging at a number of Terrible’s locations, including at its travel stores in Jean, Nev., and Indian Springs, Nev., and throughout the Las Vegas valley.
“The (Nevada) Governor’s Office of Energy wanted to build an electric highway that stems across from northern to southern Nevada,” he said.
Terrible’s has been a part of the electric highway initiative from the beginning.
“We are expanding upon our EV charging, and we are placing that in a lot of the newer locations that we’re building today,” he said.
Terrible’s stores are known for flying an American flag out front at nearly all locations, a tradition that dates back to the 1950s.
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Terrible’s Jean, Nev.based travel center is the world’s largest Chevronbranded station, measuring 50,000 square feet with 96 fuel pumps.
Following the acquisitions of Get N Go and Pit Stop earlier this year, Terrible’s is in the middle of remodeling the 15 sites to fit the Terrible’s brand. The chain is also embarking on a full remodel of some of its older locations to keep them fresh and up-to-date design-wise.
Terrible’s recently finished construction on two ground-up builds. One, located in north Las Vegas, is set to open this October. The other is a travel store, about an hour north of Las Vegas in Moapa Valley, that opened at the end of September.
Terrible’s offers typical c-store fare, including roller grills and prepackaged grab-and-go sandwiches. It also provides fresh doughnuts every day through a partnership with Krispy Kreme.
Currently, the chain is testing bean-to-cup coffee equipment at about 20 locations to gauge the community response. “It’s working very well right now,” Breeden said. “I think our expectation is to really move forward fully with that in the near future and trying to get that at all locations.”
Terrible’s offers delivery, which it calls ‘Terribles2U,’ through third-party delivery platform Grubhub.
“We are currently slated with expansion plans for that to extend really across all of the other delivery platforms in the start of 2023, including Uber Eats, DoorDash and Instacart,” Breeden said.
It’s also exploring order-ahead and pickup opportunities for the future. “We’re not there yet, but we do have plans to launch that for sure,” he said.
While the chain sees big opportunity with delivery, foodservice isn’t a major focus for the chain, given the realities of the Las Vegas market.
“Every intersection has four fast food restaurants and four bars that are all offering $4.99 steak and eggs,” he explained.
Technology, however, is a big priority. Terrible’s offers its Terrible’s Social House app, which has more than 130,000 members. Within the app, Terrible’s kicked off its new loyalty program, Terrible’s+, on July 1.
“It’s currently in-store specific and will continue to expand on the levels of loyalty you can earn,” Breeden said. “What I mean by that is it’s going to eventually be out at the gas pumps. It’s going to be out at our car washes and then some of our other on-premise entities that we own as well. The goal is to really expand it to a nice 360 (degree) loyalty program that touches all of our entities within the organization.”
The loyalty program allows guests to earn points in a touchless way. Customers simply scan their phone at the register during the transaction to gain points for purchases.
“You can redeem those points for C-Store Cash,
Terrible’s operates more than 70 car washes, which include both touch-free washes and tunnel washes.
and that C-Store Cash can then be redeemed for anything within the store (except for lottery),” Breeden said.
Terrible’s opted to reward customers with C-Store Cash because it didn’t want to restrict or dictate how they redeem their loyalty points, and offering C-Store Cash gives shoppers total control over redemption selections.
“Expanding our loyalty is a very large priority for us,” Breeden added. “The expansion of our app and the expansion of the Terrible’s+ loyalty program are key for us to continue to give back to our loyal customers.”
Technology continues to be at the forefront of Terrible’s plans moving forward.
“We understand the world is moving in a more digitized fashion,” he added. “And our goal is to try to stay ahead of that and make sure we’re offering the best products that we can. Whether it be Terrible’s+, or the app, or Terribles2U with the whitelabeling third-party delivery portions. Those are really big priorities for us right now.”
Like many c-store chains today, Terrible’s is also testing self-checkout.
“We currently have it in five different locations, and we’re obviously watching that very closely for potential future expansion,” Breeden said.
“What differentiates Terrible’s is it’s still a familyowned and -operated chain with deep roots in southern Nevada and a passion for giving back to the communities where it serves,” Breeden said.
Its commitment to what it calls, “deliberately different programming” also sets Terrible’s apart from the competition.
“We never want to forget our roots,” Breeden said.
“A part of who we are and a part of where we’ve been, even back to 1938 Chicago, is offering deliberately different programs that you really don’t see anywhere, not just in Las Vegas, but across the country.”
Terrible’s may have differentiated itself with pony rides in the 1940s, but today, it’s offering a wide range of special services to its customer base from basic conveniences to fun promotions.
Many of its travel centers feature pet relief areas to accommodate guests traveling with their four-legged companions. Inside, stores provide fresh beef jerky that customers can bag themselves and big walk-in beer caves. In 2022, the chain added Amazon lockers at 50 locations to make it more convenient for customers to receive their Amazon deliveries.
It also operates more than 70 Terrible’s car washes, most of which are co-located with a convenience store. The car washes are a 50/50 split between touch-free washes and tunnel washes.
Through Terrible’s #TerribleArt program it utilizes different in-store partnerships and a local artist to create eye-catching murals on the walls of some stores.
The company runs a variety of programs to support
the local community. It offers a Game Day Giveaway promotion, where it gives away a $1,000 shopping spree to one lucky contestant when a local sports part ner plays a game. Customers scan their Terrible’s Social House app at the store to gain entries into the sweep stakes. It’s ‘Shop, Spin & Win’ promotion gives away up to 40,000 free products a month. To play, customers must make a $9 qualifying purchase in-store and then spin the wheel on the app for potential prizes.
The chain’s ‘Pump and Pour’ program gives away a free product for any gas purchase. Customers that spend any amount on fuel activate the Pump and Pour screen at the pump, which allows them to select an offer — such as a free product, a buy-one-get-one deal or a dollar-off coupon — and bring it inside to redeem it. Through Pump and Pour, Terrible’s awards customers about 100,000 free products each month.
“We really feel that the community sees these types of programs that we do and appreciates them,” he said. “Being deliberately different is definitely what we try to be every day.”
As Terrible’s looks to be deliberately different, it includes a program called #TerribleArt, where it utilizes different in-store partnerships to create murals with a local artist named Krie (@without_a_ruler) throughout the year on the walls outside of some of the stores.
Southern Nevada remains a fast-growing community, where Terrible’s is looking to expand, especially on the highways into and out of the region, which the chain sees as untapped potential that will allow it to better serve the commuters driving to and from Las Vegas.
“Our mission is to provide high-quality retail products, entertainment, hospitality and a deliber ately different experience to every customer at a fair price,” Breeden said.
Terrible’s is set to bring that mission to new market areas as well, as it plans to aggressively build and acquire stores over the next five years.
“We are looking at opportunities where we can potentially expand our brand and bring Terrible’s to other areas and other communities,” Breeden said. “We are obviously always looking at other markets that we can step into and continue to build a brand presence in other areas. … If there is a need for convenience stores and gas stations, our eyes are open to looking at that need and potential growth in the future.” CSD
Steeling against the impact of regulations and inflation, c-stores adjust the tobacco category to capitalize on new consumer trends.
Anne Baye Ericksen • Contributing Editor
In the face of ongoing tobacco regulations and mounting inflation, c-stores are reevaluating their backbar and shining the spotlight on other tobacco products (OTP) to cater to changing consumer preferences.
In May, the U.S. Food & Drug Administration (FDA) issued a marketing denial order (MDO) on JUUL products; however, the court gave the brand new breath when it placed a stay on the MDO, prompt ing the regulatory agency to review the company’s data one more time. Once again, convenience stores are waiting for the next chapter in the JUUL saga and what it might spell out for the OTP segment.
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Meanwhile, modern nicotine products have been pushed under the regulatory spotlight. In spring, Congress passed legislation authorizing the FDA to regulate synthetic nicotine in the same manner it oversees cigarettes and other tobacco products. By the July deadline for Premarket Tobacco Applications (PMTAs), the agency con firmed receiving approximately 1 million submis sions from more than 300 companies. As of this printing, the FDA has yet to release marketing decisions on these applications.
Despite the prolonged regulatory uncertainty, the modern nicotine subcategory remains the top performer in the overall tobacco/nicotine category. According to NielsenIQ data for all retail channels including c-stores, reported by Goldman Sachs, the smokeless tobacco products segment,
includes oral nicotine, posted gains in both dollar sales and volume for each of the last four months.
“This segment continues to provide great wins for us to enhance the total OTP category and help offset the natural declines in cigarettes. Year to date, we are up 34% in dollars and up 90% in units,” said Jon Manuyag, director of marketing for Beaverton, Ore.-based Plaid Pantry, which runs more than 100 stores in the Pacific Northwest.
Indeed, cigarettes experienced losses for each of the past four months. Plus, global analytics firm Gallup recently reported that more Americans
currently smoke cannabis (16%) than combustible cigarettes (11%). Even the e-cigarettes/vape segment has had an up-and-down summer — price increases bumped up dollar sales, while volumes fell off on a national level. These opposing circumstances along with high inflation pushed category managers to adjust nicotine planograms to maximize customer interest in OTPs and non-premium tobacco brands.
“The current economic environment is one in which customers will continue to see increased pressure in terms of purchasing power,” said
premium quality cigarettes, pipe tobacco, cigarette tubes, and roll-your-own tobacco products are all made from the finest U.S. tobacco.
Adam Long, senior category manager for Rutter’s c-stores. The Rutter’s Cos., headquartered in York, Pa., owns and operates 82 retail sites. “We pay particular attention to how the gaps between the price segments evolve and what those gaps likely mean in terms of customer shifts in the category, then respond accordingly with our brand offerings.”
• More Americans currently smoke cannabis (16%) than combustible cigarettes (11%), according to Gallup.
• The FDA received approximately 1 million PMTAs for synthetic nicotine products.
• Oral nicotine is up in dollar sales and volume for each of the last four months, according to NielsenIQ.
“With the recessionary environment today, we are seeing a trend where customers are wanting to see better value and potentially cheaper cigarettes,” said Manuyag. “But like anything, there is give and take on both the decision and the impact to customers. We will continue to review this to see if a switch in program is needed in the future.”
“We do not carry fourth-tier cigarettes at this point, but customers are asking for a cheaper option at our locations. Our cheaper cigarettes, such as Pall Mall and Lucky Strikes, are up more than our premium brands,” noted Sean Bumgarner, vice president for Scrivener Oil Co., which runs 12 Signal Food Stores in southwest Missouri.
Regulations and the economy aren’t the only influential factors. Perhaps more impactful is the growing phenomenon of dual or triple use across tobacco/nicotine product families.
“New emerging categories are teaching us a great deal. There is significant dual and multicategory usage, with evidence of customers using different products on different occasions. A cigarette smoker may, for example, use a premium product when out socially, a discount cigarette when smoking alone, and a vapor or nicotine pouch product when out and about in public spaces where it’s difficult for them to en joy traditional combustibles,” Long explained. Whereas each segment of the tobacco catego ry traditionally had its loyal and separate custom er base, evolving demographic splits produce add-on sales opportunities. Such market shifts push tobacco/nicotine category managers to not only stay abreast of regulations and economic conditions, but also adopt more flexibility. Ad justing the backbar to reflect changing consumer interest will deliver a better return on investment for this key in-store category. CSD
WARNING:
Smoking
As candy sales continue to rebound, retailers are coping with out-ofstocks and finding creative ways to merchandise the category.
Carol Brzozowski • Contributing Editor
With fewer people wearing masks in response to the COVID-19 pandemic, convenience stores are experiencing an uptick in candy, gum and mint sales and are strategizing to maximize sales in the back half of 2022.
But c-store retailers expressed cautious optimism given ongoing market trends.
“Everybody’s experiencing the same thing: sup ply chain issues, labor issues — people spending less money,” said Eric Patterson, merchandising manager for Beacon & Bridge Market, who, after speaking with colleagues throughout the U.S., found others’ experiences are mirroring his own.
At the 25-store Michigan-based chain, num bers in the candy, gum and mint category have been skewed over the past couple of years due to shifting trends since the pandemic began. “When we still had the mask mandates in effect, gum and mint (sales) were way down,” Patterson said. “I think that was largely (because) people
didn’t like to chew gum or smell that minty breath behind the mask.”
Remote work has also had an impact on candy sales at the c-stores.
“A good chunk of the gum and mint business comes with our morning traffic — people looking to cover up the morning breath, the coffee breath,” said Patterson. “Because they’re working remotely, then naturally that business goes down.”
Now that more customers are returning to prepandemic norms, Beacon & Bridge is starting to see healthy numbers coming out of the gum and mint segments again.
“We were actually up for the first time in two years in gum and mints, according to a couple of the suppliers,” he said.
NielsenIQ confirmed the trend across the cstore industry. Candy, gum and mint dollar sales at convenience stores hit $6.71 billion for the 52 weeks ending July 30, 2022, up 11.4%. While all segments were up, gum saw the largest growth in dollar sales, up 16.1% for the period.
At Rutter’s, candy across all subcategory groups has been thriving in 2022 with a most notable resurgence in gum and mints, noted Joseph Bortner, center store category manager, Rutter’s Cos., which operates 82 locations in Pennsylvania, Maryland and West Virginia.
“Through the first half of 2022, (gum and mints) have nearly doubled,” said Bortner. “I’d attribute a portion of that to consumers fully returning to pre-Covid norms in our trading area, such as re turn to office work, little to zero mask wearing and movement to and from activities.”
Candy on its own is struggling a little bit, mainly due to ongoing supply chain issues, Patterson explained.
“We’re having some big-time issues with some take-home candy,” Patterson said. “A lot of the major manufacturers with king-sized and stan dard bars have taken an approach where they’re cutting their assortment a little bit to focus more of their manufacturing power on some of the better sellers.”
Those cuts have included a few SKUs of popular candy brands.
“They’re focusing a lot of their energy on the top 10 in their brand portfolio,” he explained. “That causes some situations at store level when you’re talking about out-of-stocks and having to pivot a little bit with merchandising standards. We’ve gone to a lot of double facing for that candy size (i.e. king-sized and standard bars) because we just can’t get the product.”
Candy, gum and mint dollar sales at convenience stores hit $6.71 billion for the 52 weeks ending July 30, 2022, up 11.4%.
Beacon & Bridge also is relying heavily on multiple promotions and new items.
“The one thing the supply chain issue has done for us is it frees up space in our in-line candy sec tion when those new innovations come out, so that we can roll it right into our in-line, and I can carry them as everyday items,” said Patterson.
He added that doing that had been challeng ing in the past because that space was already allocated.
“Our strategy continues to be just to focus our energy on what the customer wants,” he added. “The customer wants value out of the candy seg ment, and then for us to bring in new innovation when we see it.”
• Candy sales are up across subcategories, and retailers are seeing the rebound at store level.
At the end of the day, the heart of candy sales remains impulse buys, noted Bortner.
“Through great innovation from our suppliers and disruptive merchandising through queues, endcaps and displays, we’re able to maximize that impulse throughout the store,” he said. “We’ve had success introducing new points of disruption in 2022 that only help drive units and dollars through the store.”
With the holiday season approaching, a secondary supplier is providing a lot of specialty candy for Beacon & Bridge.
“There’s more premium candy as opposed to traditional candy bars, such as bags of premium salted caramels,” said Pat terson. “It’s something the customer really likes to see during the holidays. They use them as gift-giving options.”
In the past, “candy has always been one of those areas where we gener ally set it and forget it,” he noted.
• As supply issues and out-of-stocks continue to disrupt candy sales, suppliers are focusing on core sellers in their brand portfolios.
“You can’t do that anymore. The customer expects more out of convenience stores.” CSD
Candy, Gum and Mints
Consumer acceptance of CBD remains strong, but to grow in-store sales, c-stores need to highlight the category.
Don Burke • MSA
In-store cannabidiol (CBD) sales have been trending downward as more shoppers buy online, but c-stores have an opportunity to grow the category by elevating their CBD selections, especially as customers return to pre-pandemic CBD preferences.
During the pandemic, cannabis growth was strong due to many consumers finding themselves at home and not restricted in their use of the product. This freedom of usage, as well as the pressures and stress of the pandemic, likely encouraged more consumers to become users of cannabis.
In studies researched by Management Science Associates (MSA), it has been
observed that a greater acceptance of cannabis leads to a greater acceptance of other cannabinoids, such as CBD.
Unfortunately, due to less in-store visits during the pandemic, many consumers turned to purchasing items such as CBD online and, as of yet, it does not appear that consumer CBD purchase habits have returned to prepandemic in-store levels, despite the potential for greater demand.
As shown in the graph of CBD dollar shipments to retail below (“CBD Dollar YOY Trends”), at the start of the COVID-19 pandemic in March 2020, consumers increased their in-store purchases of CBD for wellness and stress relief. However, as the pandemic continued throughout 2020, and consumers became more wary of shopping in-store, volumes dropped throughout the rest of the year.
In 2021, in-store purchases of CBD remained below the 2020 levels as more CBD purchases continued online. CBD shipments to retail did not increase until late in 2021, when a few major retailers added several new lines of CBD.
This encouraging shipment volume increase at the end of 2021, which continued into early 2022, was viewed as a possible sign that consumers may be returning to in-store purchases of CBD. Unfortunately, this does not appear to be the case.
As seen in the graph, CBD dollar shipments
continue to fall below 2021 levels in the most recent months, signaling consumers may need more time to change their purchase patterns to in-store purchases, or will need more encouragement from convenience retailers to revert to their prepandemic purchase habits.
This is likely discouraging news for CBD retailers, but there are positive indications that among certain product forms consumer acceptance levels are strong, despite the overall CBD category decline.
As shown in the graph on p. 72 (“Top CBD Product Forms”) that compares dollar category share levels by product form for the last three years, vape and topicals are exhibiting strong consumer interest.
The CBD vape category is interesting as it was significantly impacted following the illegal tetrahydrocannabinol (THC) vaping crisis that occurred at the end of 2019. This crisis caused sales of CBD
vape to drop to almost nothing in 2020, but as consumer awareness grew that it was illegal products that caused the crisis, and as more time passed, CBD vape volumes improved considerably in 2021.
Most notably, the CBD vape product form is one of the few that is continuing to show increased consumer acceptance in 2022, and it is the top-selling item in the CBD category today.
CBD topical products also have an interesting story. This product form benefited from the illegal THC vaping crisis of 2019. This crisis not only caused the CBD consumer to severely limit their purchases of CBD vape, but also produced a negative impact on the purchase of all CBD items that are consumed internally. This consumer caution encouraged the CBD purchaser to buy topicals, which were viewed as less risky as the product is only applied externally.
While this consumer caution abated in 2021 and the CBD consumer began to purchase more products consumed internally, the topical product form is again showing strength in 2022 and is second in dollar share of the CBD category.
Interestingly, it appears the CBD category in the convenience channel is undergoing a rebirth following the pandemic.
When CBD items were introduced in the convenience store channel, vape items initially gained the most consumer acceptance and were one of the strongest selling product forms, followed by topicals.
As is happening today, where vape is once again the leading CBD product form, we seem to be repeating the initial development phase of this category.
For retailers to regain in-store purchases of CBD in the convenience store channel, they will likely need to apply the same attention to product placement, signage and promotion that initially built their CBD business prior to the pandemic.
Don Burke is the senior vice president of Management Science Associates (MSA), a data management and analytics firm. Burke has 20-plus years of CPG experience working across the cannabis, tobacco, grocery, confectionary and beverage categories. He can be reached at DBurke@msa.com.
to Retail data through
Employee training is a crucial invest ment for convenience store retailers today, and it’s even more important when it comes to the foodservice coun ter where missteps can result in public health and safety issues that can hurt the business.
For those c-stores just embarking on a foodservice program, before developing a training program, re tailers must become clear on the various aspects they plan to build into the program.
“Will you offer sit-down service? Drive-through? Delivery within the trade area? Made-to-order? Curb side pickup? Simply grab-and-go?” asked John Mat thews, president and CEO of retail consulting firm Gray Cat Enterprises Inc. “The type of foodservice will influence your foodservice operations, and there fore training, as well as the products, equipment and c-store floor plan.”
An effective training program for foodservice workers covers a wide breadth of information, including safety protocols, standard operating procedures and the nuances of the brand’s culture, noted Alison Harrison, senior regional trainer for La Plata, Md.-based The Wills Group, which operates 56 Dash In convenience stores.
“Those are three lofty topics, but by no means are those three examples the only concepts that operators should cover while training,” Harrison said. “The c-store operator should be prepared to introduce their team to every facet of the business and explain to associates how their role impacts overall operations.”
Training is not a one-size-fits-all concept and should be tailored to fit the needs of the business,” Harrison said. “New-associate training should be hands-on, allowing associates to learn from mistakes early on without adversely affecting the customer experience.”
Training tools have grown in number and sophis tication, but nothing takes the place of one-on-one
The most successful foodservice retailers take employee training seriously, from hands-on experience and certifications to technology-based tools.Howard Riell • Contributing Editor
instruction and having employees roll up their sleeves and start working, agreed James Fry, foodservice director for Dandy Mini Marts Inc. in Sayre, Pa. Dandy operates 66 convenience stores across Pennsylvania and New York and has an extensive foodservice pro gram at 63 of the sites.
“Be a hands-on trainer,” Fry advised. “Don’t just hand them a sheet of paper and tell them to follow the list. People retain better if first they are shown and then reinforced by letting them do it themselves.”
A multi-faceted approach to training that also inte grates technology can ensure employees are strongly prepared for the tasks ahead.
“Training should be done with a combination of corporate training, store management and/or in-store personnel,” said Ken Morris, managing partner of Cambridge Retail Advisors in Boston, Mass.
Resources are a challenge in today’s labor environ ment, he acknowledged. Implementing tools such as operational execution platforms for task manage ment and operational training can help retailers keep employees on track.
“Operators must avoid ‘pencil-whipping’ of task lists or relying on handwritten temperature logs,” Morris advised. Such logs don’t inspire employee accountability, he warned.
Where possible, Morris advised that associates shouldn’t be responsible for cashiering and food prep at the same time. That kind of multitasking can cause food quality to suffer, he said.
That said, cross-training convenience store em ployees to be able to manage foodservice is ideal, especially given the labor shortages many retailers are dealing with today.
Foodservice training must incorporate food safety best practices, Morris stressed.
This includes teaching employees how to cook items to the proper temperature; how to maintain
• When training foodservice employees, in struction should include safety protocols and standard operating procedures, while also integrating the brand’s culture.
• Hands-on training can help employees better retain information.
temperature logs; the steps of cleaning and sanitizing the prep areas; the ins and outs of temperature moni toring of refrigeration and freezer units; and policies and procedures surrounding expiration date codes.
Third-party training certifications can help c-stores ensure employees are up-to-date on key food safety protocols.
“All foodservice workers should have ServSafe train ing,” said Steven Montgomery, president of b2b Solu tions LLC in Lake Forest, Ill. “The food-handler training is a very basic, generic type of food-safety training that all foodservice employees should receive.”
ServeSafe manager’s certification is designed for the manager or any person in charge. It verifies that the employee has sufficient food-safety knowledge to protect the population from any foodborne illnesses. The certification is needed for food handlers, man agers of stores with food operations and operations supervisors who need to know what to look for when they visit the stores.
Specifying regular times for training is important.
“Schedule the training on the posted schedule,” suggested Dallas Wells, vice president of foodservice for High’s, which operates 60 c-stores in the Mid-Atlan tic region. “Plan for it. Training time must be sched uled to review educational materials, computer-based modules, operating procedures, checklists and guides. Follow with demonstration and practice on station.”
Dash In conducts most employee training during off-peak hours, while fully trained associates handle the food operations, Harrison pointed out.
C-stores often err by training without explaining the reasons behind procedures.
“When explaining standard operating procedures to associates, c-store operators tend to explain the what and how without examining the why,” Harrison said. “Clearly defining the reasons behind standards allows associates to understand the brand’s philoso phy, building their confidence and ability to problem solve within the brand’s guidelines.” CSD
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and potentially outdated pre-printed
beginning
learn about how our
help your C-Store with temp taking, refrigeration equipment monitoring, task management, even inventory management and food production.
A new generation of plant-based meat-mimicking products has made headlines and attracted the attention of consumers and inves tors in the past years.
The COVID-19 pandemic has provided them with a phenomenal experimentation opportunity, leading to a 47% jump in retail sales in 2020, per Chicago-based market research firm IRI. Sales have stagnated since as consumers — aware of nutritional flaws, long lists of ingredients and the substantial price premium — have been reluctant to keep plant-based “meat” products as a con stant in their shopping carts.
Meanwhile, many quick-service restaurants (QSR) and fast-casual chains have also boarded
the plant-based train, with different levels of success. Big chains such as Burger King, Carl’s Jr./Hardee’s, White Castle and Shake Shack have managed to keep plant-based options for years, followed by newcomers KFC, Taco Bell and Chipotle. Other players, like Pizza Hut, Starbucks and Tim Hortons, have continuously tested products in different markets as limitedtime offerings.
McDonald’s is the most remarkable absence in this list: the world’s biggest QSR chain recently concluded a test of the McPlant in partnership with Beyond Meat without making it a regular product in the U.S. (It is already a core menu item in some European markets).
Between hits and flops, these experiences provide c-stores valuable lessons on the opportu nities and challenges of adding plant-based items to the fresh food counter.
Quick-service restaurants have been quick to add plant-based options, but can c-stores find success with similar menu items?
Motivating Factors: QSR players believed that adding plant-based offerings to menus would drive back to stores more demanding consumers concerned about their health and welfare.
These consumers, who tend to be young and more affluent, are precisely those that have migrated to other types of restaurants like fast-casual chains such as Shake Shack and Chipotle, which have gained share from QSRs by investing in nicer stores, made-to-order items and quality ingredients.
It was also believed that the move to plant-based offerings would attract larger and more diverse par ties to the premises, and therefore allow QSRs to sell more of their entire portfolio. Imagine a group of four friends in a car heading to a drive-through, one being vegetarian. They need to find common ground on where to go and will likely choose a place that caters to all diet preferences.
The client: QSR customers may not be the best candidates for meat alternatives as they pursue indulgence and taste in their meals and are more price sensitive — much like c-store customers. On that, we believe plant-based has a better fit with fast-casual restaurants than with QSRs.
Operational Considerations: Both QSRs and fast-casual chains were designed to provide taste and comfort in a fast and affordable way. New items are evaluated according to their compat ibility with the overall portfolio and established back-of-the-house processes. Adding plant-based products adds complexity (many clients don’t want them cooked on the same grill as meat products, for instance). And complexity is not a
desired attribute for a category designed to be fast and affordable.
Marketing: When it comes to marketing, pro moting the plant-based items on the menu is also a complex task. By keeping both meat and plantbased options, players must avoid attacking their core meat products and focus on the consumers that don’t yet visit their stores to prevent cannibal ization with the existing portfolio.
Despite many challenges and some flops, no big chain has publicly announced they would jump off the plant-based train for good.
Counting on valuable data from previous tests, many players are adjusting their offerings accord ing to the location and demographics aiming for long-term gains. We believe all foodservice actors will need to keep at least one plant-based option on menus to expand audiences and look good on their sustainability reports.
On the latter, leading chains have joined the Science Based Targets initiative, and although meat consumption hasn’t been listed as a core issue yet, it is expected to be increasingly seen as a relevant source of Scope 3 emissions.
The single fact of keeping plant-based items on the menu brings reputational gains in terms of in clusion and Environmental, Social and Governance (ESG) compliance. And that’s perhaps the most worthwhile lesson for c-stores to keep top of mind.
Based in New York, JP Frossard works with the global RaboResearch Consumer Foods team, focusing on bakery and plant-based products.
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Retailers often reevaluate packaging when cutting costs, but in today’s environment quality packaging can make or break a foodservice sale.
This percentage must grow, however, to keep foodservice humming, considering takeout and delivery have taken a serious chunk of dine-in share since the COVID-19 pandemic arrived.
Operators are dealing with historically high costs and struggle (even in the best of times) to keep up with labor, food, real estate, franchisee and government-related costs. Food packag ing, more than ever, must be a key ingredient in the product development process.
With a recession potentially in the works
based on mixed economic data, the foodser vice industry must always be two steps ahead of a downturn. Foodservice is one of the leading indicators of a recession. Economists will often cite the decline in away-from-home traffic and sales as the precursor to a recession. The latest figures in August 2022 also showed a drop in consumer confidence, which tends to impact future away-from-home expenditures.
Before moving into operator cost-cutting measures, however, it’s important to caveat the discussion with the fact that today, quality packaging is an important attribute to both con sumers and operators. In fact, product quality and availability of the “right” packaging surpass price in terms of selection criteria. Other factors are shown in the table on p. 84.
Today, nearly half of operators consider how a new food item will be packaged as part of the development process.Tim Powell • Foodservice IP
Attribute (in order of importance)
Product Quality
• This is the most important packaging attribute.
• It encompasses function, appearance and durability, though we do ask about those separately.
Product Availability
• This has increased in importance during the supply-chain shortage. Operators have had to juggle between menu applications to ensure they have the proper packaging in place.
Functionality
• Trying to balance price and quality (and supply shortages) has been tricky right now.
• This fits into the quality realm — lids must fit cups, clam shells must close — the solution must do what it's been sold to do.
• This encompasses everything from compostable and recyclable packaging to reducing the waste associated with “too much” packaging, as consumers say.
• However, the complaint from operators has been that they sacrifice function and durability for eco-friendly material.
Source: Foodservice IP Operator Interviews
Foodservice operators, fresh off the heels of a COVID-19 recession, are well aware of the dangers. Therefore “freebies” like packaging, napkins, water cups, etc. are also the areas where operators look to cut some costs. Some of the major cost-cutting responses are using less expensive material (foam vs. paper), switching to private label or using other distributor sources.
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Using Less Expensive Material
• Seems to be the most common response for cups, cutlery and napkins.
• Shortages exist, so it’s challenging for operators right now to have the buyer’s edge.
Switched to Private Label
• We wrote earlier this year about the huge leap in distributor and private-label brands. Non-food distributors have made serious inroads during COVID-19.
Reduced Packaging Waste
• This was experienced most in cutlery. Georgia Pacific and Swedish paper company SCA have come out with singledispensed cutlery in the past.
Distributor Shopping
Source: Foodservice IP Operator Interviews
• Looking to wholesalers, paper distributors and others that can meet pricing demands and availability outside of major broadliners has been a strategy.
Turning the focus to the convenience store segment specifically and its patrons, it is clear that portability is paramount. Some 57% of shoppers consume prepared foods immediately after purchase. There are certain menu items that are simply purchased less (or not at all) if the packaging doesn’t hold up to enroute requirements.
“Turning the focus to the convenience store segment specifically and its patrons, it is clear that portability is paramount.“
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As the table to the right shows, there are a few menu items that require better “vessels” for travel, including Mexican fare, pizza and fried items (breaded chicken and fries). Wraps and burritos have historically been one of the most challenging items to package for on-the-go eating.
However, retailers that invest heavily in quality packaging are more likely to see a better return on customer satisfaction and be rewarded with higher margins.
Tim Powell is a principal with Foodservice IP, a Chicago-based management consultancy solely focused on the food industry and geared toward food processors. Visit FoodserviceIP.com. FoodserviceIP is launching a takeout packaging study in December 2022.
Q: For the convenience store prepared food/grab-and-go meal items below please indicate which items travel well in their current packaging.
Cold Fountain Beverages 74% 26%
Bakery Items (mu ns, doughnuts, pastries, etc.) 72% 28%
Cold Sandwiches 67% 33%
Hot Co ee 64% 36%
Iced/Frozen Co ee 59% 41%
Roller Grill Items (e.g. hot dogs, corn dogs, taquitos) 55% 45%
Wraps 53% 47%
Breaded Chicken Items 53% 47%
Hot Sandwiches 51% 49%
French Fries 51% 49%
Pizza 46% 54%
Mexican (tacos, burritos other than breakfast burritos) 38% 62%
Source: 2022 C-Store Consumer Report Findings, Foodservice IP
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As convenience store retailers look to acquire sites, they’re evaluating foodservice space and workforce culture and stability as they consider deals.
Seldom does a week go by without some one asking me why the convenience and gas mergers and acquisitions (M&A) environment is still so dynamic when everything else is in utter chaos.
We seem to be floating along in an insulated bubble of reality. Whether its divestitures of c-stores or dealer or commercial fuels and lubes businesses, a stable of well-heeled buyers are ready, willing and able to compete for these deals. Despite all of the current and future economic and regulatory headwinds, this petro lovefest seems destined to continue into 2023. As such, following are some personal
Mark Radosevich • PetroActive
Mark Radosevich • PetroActive
observations as well as some thoughts and recommendations by various store operators and fuel marketers related to both M&A and current business operations. Hopefully, you will find value in some of these tips as you navigate your respective businesses in an ever-challenging environment.
Oil companies get back into retail. In an apparent effort to ensure future brand relevance, various oil companies are getting back into store operations after divesting their sites only 15 years ago. This trend will increase buyer diversity and help maintain heightened deal valuation levels.
There is a dichotomy between the embrace of electric vehicles (EV) and the strength of the M&A environment. Why are so many chain operators now embracing EV charging, while still intent on acquiring traditional retail petroleum store packages? The answer suggests that EV is really about garnering brownie points and government handouts, versus a conviction that petroleum is in significant decline and that EV is the future of automotive transportation.
Mergers will yield store buying opportunities. The Federal Trade Commission (FTC) scrutiny will yield unexpected buying opportunities as blocks of sites will have to be divested from larger multistore deals. This will present some unexpected buying opportunities for smaller operators that have been on the M&A sidelines over the past few years.
Prepare for the arrival of unexpected big com petitors. Many parts of the country have seen their competitive landscape irreparably altered by the unexpected arrival of large format chain operators or Texas-based retail monstrosities. This expansion will continue, making it impera tive that local marketers be prepared to deci sively respond if the need arises. This includes pragmatic store viability assessments, followed by the development of divestiture response plans. The old standby option of flipping a vul nerable site to a dealer may only forestall a site’s ultimate demise, making alternate-use property considerations an integral part of the plan.
Top considerations by a Tennessee-based chain operator stressed the necessity for foodservice, followed by facility size for its acquisitions. All of its sites have foodservice that features all three dayparts. Any targeted store package needs to have meaningful foodservices or be of a size and configu ration for it to be added.
A north Florida marketer described the challenges of finding and retaining qualified store and quick-service restaurant (QSR) personnel. His situation is so acute that his Huddle House restaurant is still open only half the normal hours of operation, and labor expense has gone through the roof. He highlighted that even his dishwashers are earning $14 per hour, when he can find them. His key tip is that despite this labor situation, don’t take short cuts in doing background screening, including pre-employment drug testing. His experience shows that cutting hiring corners places a company in an elevated risk for future workers compensation
lawsuits or other expensive avoidable problems.
A Texas-based chain operator listed a stable workforce as being one of its top considerations in guiding the chain’s interest in a deal. Criteria include full employ ment, limited operational disruptions due to staffing issues and a posi tive work environment. Facility and operational defects can be readily addressed post-closing, but staffing and labor problems are much harder to overcome.
Another marketer offered an operational tip that wasn’t even on his radar a couple of weeks before we spoke. It seems that the previous week, a semi pulled in front of one of his loaded transports causing a fiery accident and the incineration of the trucks and his driver. Having forward-facing cameras on the unit allowed the authorities to witness the accident in real time, thus expediting their investigation and exonerating his company of any fault. This saved his company years of time-consuming litigation and expense. He was emphatic to stress that despite the upfront cost, it is a big mistake for marketers in the fuel transportation business not to deploy forwardfacing cameras in all their units.
Hopefully, some of these tips will prove helpful as you navigate your respective businesses through the troubled economic and political waters through the end of the year and into next.
Given all the legislative, regulatory and green challenges that are stacked against our industry, I want to reiterate the importance of being an active member in your state petroleum marketer and convenience store association.
Together, as a unified voice, we can help blunt some of these assaults and better protect our com mon business interests.
Mark Radosevich is a strong industry advocate, recognized petroleum veteran and president of PetroActive Services (Petroactive.net). He can be reached at (423) 442-1327 or mark@petroactive.net.
GetGo’s 16 WetGo Pro sites offer dual lanes, free towels, free vacuums and other extras.
The chain is in the process of opening its first standalone WetGo location in the coming months.
“From a business perspective, car washes can generate a lot of revenue with high profit margins,” Romba explained. “There are generally two types of car washes, and we have both across our footprint.”
In-bay car washes are touchless and usually operate autonomously. Tunnel car washes use a conveyor to pull the vehicle through a friction wash.
“Both types certainly have their place at convenience stores,” according to Romba. “Tunnel washes have a higher revenue potential, as you can feed vehicles through at a faster pace than at an in-bay wash, which can only wash one vehicle at a time.”
Giant Eagle has found that gift cards for washes and multiple wash packages make popular stocking stuffers. Mother’s Day and Father’s Day also tend to be a great time to promote car wash gift cards.
How much revenue a c-store’s car wash can generate can vary greatly, according to Steven Montgomery, president of b2b Solutions LLC in Lake Forest, Ill., a consulting firm whose areas of specialty include convenience retailing, retail operations and supplier and distributor networks.
Considerations that impact revenue include:
• Location
• Type of car wash
• Hours of operation
• Pricing, including member or subscription pricing
• Number and type of competitors and their pricing
• Weather Montgomery cited research reported in the National Association of Convenience Stores’ (NACS) ”2021 State of the Industry Report” in noting that car washes added to an existing site generated $10,389 per month of income.
“We typically see c-store P&Ls (profit and loss state ments) with car wash gross margin in the 70-80% range,” Montgomery said. “However, the (percentage) can defi nitely vary outside that range based on some of the same factors that impact revenue, such the location’s pricing strategy and competitive set.”
Convenience stores used to offer a car wash discount when customers bought gas, noted Montgomery. “That practice has all but disappeared. Today, the most common promotions are a discount on the fuel price for the purchase of a car wash. Where allowed, this permits the retailer to post two prices — with and without a car wash.”
The technology involved in car washes continues to expand and evolve.
“Credit card readers are common. For those offering a subscription program, car wash license-plate recognition helps control the passing of a membership card to friends and family,” Montgomery said. “Others have installed vehicle-damage cameras to prevent false damage claims.”
WetGo regularly evaluates the new opportunities available to car washes through technology.
“There are now new intuitive tunnel wash systems that can automatically detect vehicle features like roof racks and trailer hitches to ensure the equipment doesn’t touch them,” Romba said.
Like Montgomery, he pointed to new state-of-theart vehicle identification technology that can recognize license plates for guests who have subscriptions.
“This is an exciting industry,” Romba said. “And it’s continually evolving to make the experience easier, more efficient and more fun.” CSD
• Car wash revenue can vary based on a multitude of factors from location to pricing to weather.
• The gas price surge didn’t deter washes. Some 57% of customers surveyed in August reported washing their car the same amount or more frequently than before gas prices spiked, per the International Carwash Association.
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As the U.S. Hispanic population continues its rapid growth, c-stores need to consider how they are ca tering to this important and expanding demographic.
Pew Research Center found that the Hispanic population in the U.S. hit 62.1 million in 2020, up 23% com pared to the previous decade, and far outpacing the country’s 7% overall population increase during the same time period. By 2025, Hispanics are expected to account for 12% of all U.S. buying power, according to data from Insider Intelligence.
CStore Decisions spoke with Sylvia Klinger, founder of nutrition and culinary consulting company Hispanic Food Communications, to learn more about how retailers can attract and retain Hispanic shoppers.
CStore Decisions (CSD): What are the top three things convenience stores can do to better appeal to their Hispanic customers and why? Sylvia Klinger (SK): Hispanics
continue to be a significant grow ing population in the U.S. And you should know that Hispanic customers are seeking your attention. They too are looking for convenience stores that cater to their needs. Here are the top things you can do today to attract more Hispanic shoppers.
• Assess their needs — continually ask what they are looking for, and if you don’t carry their favorites, find them.
• Treat them with respect — go overboard with customer service.
• Respect and embrace cultural traditions — embrace their cel ebrations (Quinceañeras, bap tisms, Christmas, Easter, Day of the Dead and Mexican indepen dence are just a few of them.).
CSD: How do you see the needs of baby boomers and Gen X differing from those of millennials and Gen Z within the Hispanic shopper demo graphic?
SK: One of the biggest differences may be language. The older (baby boomers and Gen X) generations tend to master the Spanish language
Sylvia Klinger, founder Hispanic Food Communicationsbetter, while the younger (millennials and Gen Z) generations may speak the language but may have difficul ties writing in Spanish. Nevertheless, they feel connected with their Span ish language, therefore ads/posters should be displayed in Spanish or a combination of both English and Spanish.
Every generation seeks different food combinations. The older gen erations tend to look for traditional authentic dishes, while the younger generations are more accepting of combining traditional Hispanic foods with traditional American foods.
Getting to know your Hispanic customers and their preferences is key in attracting this demographic.
Know that all want to be treated with respect regardless of age, culture, skin color, sexual orientation, etc. It is easy to display biases, but do not be deceived by looks. Get to know them personally, and always greet them by their name or nickname.
CSD: When it comes to fresh prepared food, how can retailers best appeal to Hispanic customers?
SK: Once you find out what fresh or prepared foods they love, either pair with a local vendor that can provide some of their favorites or ask your preferred vendor to provide you with their preferred foods. Then make sure you market them and remind them you have their favorite fresh prepared foods available.
Here are the top 10 dishes and their country of origin:
• Quesadillas — Mexico
• Baleadas — Honduras
• Pupusas — El Salvador
• Arroz con Leche — multicountries use this dish
• Empanadas (beef, corn are most popular) — Argentina
• Arepas — Colombia
• Ceviche — Peru
• Tortilla Española — Spain
• Tacos — Mexico
• Sopes — Mexico
CSD: Hispanic shoppers come from different backgrounds depending on if their ancestors are from Mexico, Spain, the Dominican Republic, Puerto Rico, etc. How can retailers ensure they’re offering the right products for the demographic they serve?
SK: The majority of Hispanics in the U.S. come from Mexico, but we can’t neglect the others. I recommend that you find out where exactly your c-store
customers come from and make sure you provide the products and foods they are seeking. But know that Hispanics in general consume more rice, tomatoes, citrus fruits, whole milk, beef, eggs and legumes.
Recognizing national flavor differences can help you get a head start, especially between Mexican cuisine and Hispanic Caribbean cuisine, which are the largest groups in the U.S. Here is an example of the flavor differences between these two cuisines.
Mexican favorite ingredients: tomato sauce, chiles, pibil sauce, cinnamon, cumin, cilantro, thyme, marjoram, epazote and black/red beans. Beverages: horchata, Jamaica (agua fresca), Jarritos (sodas).
Caribbean favorite flavors: okra, black-eyed peas, greens, garlic, coconut milk, condensed milk, adobo seasonings and black/red beans. Beverages: malta (a dark non-alcoholic grain-based) and Coco Rico (soda).
CSD: What is the best way to market to Hispanic customers?
SK: Interact with your Hispanic customers. Get to know them personally and their families. Make an effort to greet them and talk with them so you may gain their trust and become part of their “family,” and their everyday routine.
CSD: What else do you want retailers to know about Hispanic shoppers?
SK: Know that Hispanics will stay loyal to your services, if you provide the products/foods they love along with top customer service. CSD
Selling electrons is not something that can directly produce profitabil ity to replace fuel margins, at least in today’s environment, and that is no secret to convenience retailers.
Barriers to entry into the electric vehicle (EV) charging market include not just the cost of infra structure but also demand charges from utility pro viders, where commercial customers are invoiced not just for the electricity they use, but also for the highest consumption used over a short period of time. This policy was initially made to influence manufacturing to balance the electric grid but is clearly outdated given the demand of electricity that EV chargers require.
We can’t, however, ignore where the future is headed.
U.S. battery plant investments include $2.5 billion by Toyota Motor Corp. and $4.4 billion by
Hyundai Motor Group and LG Energy Solution. Ford Motor Co. has committed $50 billion in EV investments through 2026, and Tesla Inc. has an nounced that later this year it will begin produc tion of supercharger equipment that will enable non-Tesla EV drivers in North America to use Tesla Superchargers.
At the federal level, we have seen good progress recently with bi-partisan support urging the federal energy regulatory commission to support the private sector with challenges including utility demand charges. In addition, the Inflation Reduction Act includes a tax credit for consumers of up to $7,500 for new electric vehicles and for the first time ever, a credit for used electric vehicles of up to $4,000. A credit is also included for 15-30% for qualified commercial vehicles purchased. While there are many controversial qualification requirements in the consumer and commercial credit, we will take it as progress none the less.
Peter Rasmussen • Convenience and Energy Advisors Savvy c-stores are tapping funding opportunities for EV charging and identifying basket building occasions around customer dwell times.
At the state level, California has announced a ban on the sale of new gas-powered vehicles by 2035 — with many states expected to follow — with a phased approach of EV/hybrid requirements leading to 2035. California also announced it will fine automobile manufacturers $20,000 per new vehicle sold, for non-compliance. This regulation mirrors Shanghai’s license plate fees of $14,230-plus for gas vehicles, which are free to EV consumers, clearly encouraging adoption.
Our industry is also seeing more competition from outside our sector than ever before. Starbucks earlier this spring announced an EV-charging network partnered with Volvo and ChargePoint Inc. that covers a 1,350-mile route from Denver to Seattle. Beyond this, it is not uncommon to see EV chargers in places where gas pumps traditionally have not existed such as grocery stores, shopping malls, movie theatres, drug stores and even IKEA, which announced a 25-location network in partnership with Electrify America, an electric vehicle direct-current (DC) fast-charging-station network.
For convenience retailers who want to futureproof their business but are hesitant given fiscal commitment, the good news is that funding is surging right now.
A good place to start is by reviewing the National Electric Vehicle Infrastructure (NEVI) plan for the states within which you operate. These state-specific plans capture the $1 billion each year for the next five years allocated to charging infrastructure by the federal government.
While every state plan has different criteria, in general, they include information on qualifications and how to apply to have 80% of EV installation and hardware costs reimbursed to you. Beyond this, an ample volume of incentives exist that can contribute to the remaining 20% of investment from sources that include states, utility companies and Volkswagen’s settlement funding.
Setting the stage, however, for a successful grant is competitive and time consuming. Some programs are first come, first served, while others include a project narrative. Without getting into the weeds, these project narratives are not about the company story you want to tell. Instead, it’s about
shaping the story in terms of what the funding agency needs to hear for their scoring criteria.
Profitability from providing EV charging should be looked at beyond the margin you can earn per kilowatt-hour. With an average dwell time of 23 minutes, you have an incredible opportunity to build the basket from there with some consider ation including:
• Quality foodservice and beverage programs can be lucrative opportunities, from large and ad vanced offers to crave-worthy simple items that can be achieved with minimal cross-utilized labor.
• Packaged goods assortment catering to differences in how consumers experience changes with longer dwell time and behavior changes for trip consolidation.
• Digital marketing at the EV charger for instore offers or outsourced advertising revenue. ChargePoint, as an example, recently partnered with GSTV to develop a digital-media network.
• Fringe benefits that matter to shoppers such as clean restrooms, free Wi-Fi and a comfortable area for consumers to sit down and enjoy products purchased from your convenience store while their vehicle charges.
While environmental policy still has a long road of critical change needed for widespread EV adop tion, the shift is, without any doubt, coming fast. Total share of fuel gallons will not only decline year over year with continued EV adoption, but further so from efficiency advancements and requirements of internal combustion engines compounded with higher fuel prices.
Convenience stores are the centers of our com munities and offer the amenities that drivers have come to expect. Our desirable locations can alleviate consumer range anxiety, which will lead to advancing EV adoption. While the changes are complex, our industry has the ability to lead in EV transformation and adapt our model from ‘convenience and gas’ to ‘convenience, food and energy.’
Peter Rasmussen is a strong industry advocate, recog nized convenience and energy veteran, and CEO and founder of Convenience and Energy Advisors (Conve nienceandenergyadvisors.com). He can be reached at peter@convenienceandenergyadvisors.com.
CStore Decisions is recognizing CAL’s Convenience and Road Ranger for their newly updated and brand-new loyalty programs, respectively.
Emily Boes • Associate Editor
CAL’s Convenience revamped its My Rewards program, offering its members a system with faster rewards.
CAL’s Convenience’s My Rewards program underwent a complete overhaul a few months ago, transitioning into a points bank and rewards system.
The chain is headquartered in Frisco, Texas, and operates over 209 locations with the majority in Texas, Oklahoma and New Mexico, and a couple located in New York and Pennsylvania. CAL’s Convenience also features a Laredo Taco Co. food concept.
My Rewards’ new phase as a completely digital points-bank program allows customers to earn 12 Stars for every $1 they spend in-store.
“We recently, a couple months ago, went from … a member pricing program to a completely different program doing a points bank with rewards and all that fun stuff,” said Mike Donerkiel, loyalty brand manager of CAL’s Convenience.
Member pricing offers and more are also included in the My Rewards program. Age-restricted items are excluded from Stars earning.
CAL’s, searching for an all-in-one solution, partnered with Paytronix to run its loyalty program, utilizing the platform’s data insights team for help with its strategy and analytics, as well.
Customers who would like to take advantage of My Rewards can use the website or app to register. From that point on, they can then scan the app or type in their phone number at the point-of-sale to receive the Stars they’ve earned for their purchase or apply member pricing. Customers can then redeem those Stars for free products such as fountain drinks, coffee, roller grill items, sodas and more.
My Rewards members are also able to stay aware of new promotions.
Upon registering, CAL’s provides users with items such as free products, a certain number of Stars and a fuel discount.
For example, a customer might exchange 750 Stars for two roller grill items. Or, customers can earn Stars for a Laredo Taco Co. purchase. Special member pricing also applies to the foodservice concept.
Additionally, customers can redeem Stars for in-store and fuel discounts.
“For 750 Stars, you can get $4 off your in-store purchase. Or if you have 300 Stars you want to spend, that’ll give you five cents off per gallon (of gas), and then you can stack those — it’s limitless,” said Donerkiel. “As long as you have the Stars, we don’t restrict you from adding as many as you want and redeeming as many as you want in a transaction.”
Member pricing includes buy-oneget-ones, dollars off, Star multipliers and other discounts.
“What we wanted to do, and we feel that we have done, is that not only do you earn the Stars/points faster, but that also gets you to reach those rewards even quicker,” said Donerkiel. “So you don’t have to make a lot of visits (spending) hundreds of dollars. You’re rewarded very, very soon. So that was what set us apart and made us special.”
CAL’s prides itself on creating an enjoyable customer experience with personal and relevant communications based on the information it draws from the program.
“I think (loyalty programs) create a connection and an experience. And it’s really a sharing of information. Because not only are they willing to give us their information, but we’re using that information to give back to them so that they really want to participate,” Donerkiel said.
CAL’s believes in shared interactions, and with the customized and personal experience that My Rewards provides, there is a tighter connection between the retailer and the customer.
In terms of the future of loyalty and rewards programs, Donerkiel sees technology playing a large role, specifically with personalization and automation.
“I think also, with most retailers now having a loyalty program and the competition being so elevated, that technology could help … retailers curate a personable program per customer,” Donerkiel said.
For instance, if a customer preferred a points-bank program or a purchase-club option, they could visit a retailer and choose the loyalty route they wanted, he elaborated.
CAL’s Convenience reinvests in its customers directly, rewarding its loyalty members quickly and staying on top of purchasing trends.
Nationwide, 1 in 3 retailers who sell alcohol use Fintech.
Alcohol Management SimplifiedRanger Rewards is a tier-based loyalty program and provides its members with perks based on their driving habits.
Having launched just a year ago, Road Ranger’s Ranger Rewards program was born out of a desire to give back to the chain’s loyal customers and create an innovative communication channel. It is a result of hours of engineering, testing and design work, and it still offers new updates and features.
Road Ranger partnered with Paytronix and Rovertown to run the loyalty program.
Headquartered in Schaumburg, Ill., a north west suburb located roughly 30 minutes outside Chicago, Road Ranger operates 44 locations in seven states. Over the course of the next few years, however, it plans to expand to several new states with well over 60 locations.
Ranger Rewards functions both as a digital plat form and a physical card program. Customers who choose to sign up for Ranger Rewards can down
load the app, which offers more exclusive price discounts and monthly sweepstakes and allows customers to track their progress in the chain’s loyalty clubs.
The chain has mirrored the rewards most impor tant to the customer and frequently redeemed to the physical card program.
“Loyalty programs help brands to build mean ingful relationships with customers. It’s not always about getting the new customer in the door, it’s also about rewarding those who choose to come back to see you over and over. Being able to build a tailored program that rewards new and existing customers alike is something we’re very proud of,” said Ryan Arnold, vice president of marketing at Road Ranger.
Ranger Rewards is tier-based, allowing custom ers to choose Pro-Driver (those who earn a living driving a truck or transporting goods) or Auto
Driver (the casual driver) when they register depending on the group they most associate with. From there, their rewards options are filtered to match the greatest degree of personal benefits.
For example, as an Auto Driver, customers are offered an everyday discount. For every gallon fueled, loyalty customers have access to an eight-cent discount per gallon — before any additional fuel discount promotions. They continue to earn rewards by making in-store purchases and joining clubs to receive free items.
For Pro-Drivers, every time they fuel 50 gallons, they earn a free $12 shower credit. For 75-plus gallons, they earn the shower credit and a free 32-ounce drink. They can earn a different rewards status each month, as their gallon consumption fluctuates. They can also earn points on in-store purchases and participate in special loyalty clubs.
All registered members have access to special clubs, including the Drink Club, the Pizza Club and the Taco Club, where for every six paid items, the seventh is free.
One of the latest features rolled out over the last year is the “Member Pricing,” which allows for additional discounts based on specific purchases. Discounts can be found on many product offerings, such as drinks, snacks, tobacco and more.
An example of a member discount for an instore purchase is the chain’s pizza deal. The cur rent price is $7 for two slices, yet when a member scans their barcode at checkout, the price drops to $6 for two slices.
Users can also age verify to receive deeper dis counts on tobacco and alcohol purchases.
The perks offer these customers an incentive to register for the app and experience a welcoming sense of being a part of a differentiated group who receives special pricing as a thank you for returned loyalty. This in turn helps Road Ranger gather data to better understand when, what and why its customers buy.
“Having the ability to create an ‘exclusivity aspect’ of the loyalty and rewards structure has probably been the most unique aspect in build ing out our rewards platform. Ensuring customers feel as though they are a part of a community and providing a feeling of belonging is huge when it comes to influencing a customer’s purchasing
decisions and building that brand loyalty,” said KJ McCann, digital & loyalty marketing manager at Road Ranger.
Ranger Rewards allows the chain to build a relationship with its customers by catering to their specific wants and needs. Additionally, the loyalty program allows Road Ranger to compete with its competitors on a level that’s not solely price based. It gives members a chance to work toward an end goal.
“Apps like ours go beyond increasing revenue,” said Arnold and McCann. “Our goal over that last year was to really give our brand a voice and showcase who Road Ranger is at the core. Our platform has allowed us to share great updates about our partnership with St. Jude, our NASCAR sponsorship and many other of our local community philanthropy projects in local communities.”
Road Ranger is currently working on future up dates, such as wallet features, a receipt/purchase history feature for the Pro-Driver, a route planner and more. CSD
Wood
Wine
Brad Perkins • Contributing Editor
Last year, pandemic-influenced shopping habits resulted in $1 trillion in e-commerce sales, according to the National Retail Federation. Many of those sales came from the purchase and use of prepaid gift cards.
This year, as inflation and high gas prices affect people’s shopping habits in every industry, the prepaid card is top-of-mind again. Whether digital or physical, the prepaid card is both driving traffic into convenience stores and giving people gifting options that also help their friends and family financially.
“In an inflationary environment, you can give someone a gift card, and it has value and it helps people,” said Peter Rasmussen, CEO and founder of Convenience and Energy Advisors
As prepaid card popularity soars, c-stores have an opportunity to attract and retain customers with a diverse range of gift card options.
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and a longtime industry executive. “The past few years there has been incredible growth in prepaid card use. Diversification into digital gift cards has made a difference. Physical ones still have the lead with about 60% of market share, but digital gifting is there, even though it’s a little different to check your email on Christmas morning.”
ResearchandMarkets.com’s “United States Prepaid Cards Business and Investment Opportunities” report predicts that the prepaid card market will grow from its current value of $542 billion in 2022 to $826 billion in 2026.
So why do prepaid cards make sense for convenience stores?
Not only can they help recipients with fuel and food costs, but they also speak to the digital lifestyle so many consumers want. Whether they’re thirdparty cards from retailers like Amazon, Starbucks or restaurant chains or branded cards that can be used for fuel, food or items from inside the store, prepaid cards offer convenience, more safety than cash and, at times, connection to loyalty programs.
“We’ll continue to see an uptick in the number of customers activating prepaid, co-branded private-
“The past few years there has been incredible growth in prepaid card use. Diversification into digital gift cards has made a difference. Physical ones still have the lead with about 60% of market share, but digital gifting is there, even though it’s a little different to check your email on Christmas morning.
— Peter Rasmussen, CEO and founder of Convenience and Energy Advisors
Technology | Prepaid “
Prepaid cards help recipients with fuel and food costs, as well as speak to the digital lifestyle so many consumers want.
label credit cards, like the Transact Prepaid Mastercard by 7-Eleven,” said Perry Kramer, managing partner at Retail Consulting Partners. “There is a fairly balanced mix between customers who migrate to a card with a known name like Amazon and customers who are driven by watching their rewards accumulate and then be returned to them in discounts.”
Combining savings, convenience and gifting could be the future of prepaid cards. Last year, Pilot Flying J launched its e-gift card program. It gives customers the ability to send and receive virtual gift cards by email or through the myRewards Plus app.
“Our e-gift card program has been incredibly popular across all categories, including fuel, food and gifts,” said Ginny Holmes, senior manager of digital products at Pilot Co. Headquartered in Knoxville, Tenn., Pilot Co.’s Pilot and Flying J
• Customers are looking for ease of use and convenience when it comes to using prepaid cards.
• With inflation high, expect to see more customers gifting prepaid cards to help recipients with necessities such as gas and food.
• Providing a choice of e-gift cards or physical gift cards can help make your c-store a destination for prepaid cards.
travel center network includes over 750 locations in 44 states and six Canadian provinces.
“As we continue to nurture our gas audience, we’ve seen an uptick in e-gift cards used for mobile fueling,” Holmes added.
That uptick has also reflected the increase in online shopping.
“We’ve seen a completely new stream of e-commerce activity through this digital offering,” Holmes said. “Holiday shoppers loved this quick, easy option. Our guests love this more personalized experience that provides even more options for their next gift or journey on the road.”
As prepaid cards connect to more mobile payments, bank cards and apps, the combination of convenience, savings and sharing will mean prepaid cards will continue to be popular items.
“We’re going to continue to see growth in prepaid cards,” Rasmussen said. “In the holiday season, people are still going to buy gifts for one another, but they’re going to think differently about it, so they might get (recipients) gas cards or things that can help them.”
From discounts to the convenience of mobile payments, customers are looking for ease of use and convenience in using prepaid cards, while retailers are looking to reduce costs and drive traffic into stores.
And while the drive for digital is coming, the rack of gift cards inside the store will be both vital for sales and important for finding and keeping customers.
“Offering choice to your loyal customers is a strong retention process,” Kramer said. CSD
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A strong digital strategy requires data analytics, personalized brand interactions, optimization and organizational alignment, among other key components.
Digital, however, is much more than an app; a comprehensive strategy includes data, customer relationship management (CRM), social media, optimization and more. In this column, we’ll focus on five key parts of a digital strategy.
As more convenience retailers embrace tech nologies such as loyalty apps, mobile ordering and self-service kiosks, it’s critical to establish a clear digital strategy from the outset. The goal of such a strategy is to leverage data and technology to better understand your customers, making their experience across every brand interaction and touchpoint more convenient, personalized and enjoyable — and, in the process, drive measurable business outcomes.
Analytics help brands determine how users behave and interact with a brand. If your brand website has limited functionality (no user login, ordering functionality, etc.), site user data from platforms like Google Analytics may be limited. However, customer data can come from a variety of sources such as primary and secondary research.
When beginning to gather customer data, a key question convenience retailers can begin with is: What motivates customers to choose this brand over another?
Some customers want fuel discounts. Others want convenience in the form of ancillary services, such as ready-to-eat meals, delivery or car washes. Still others might appreciate a high level of inperson customer service when they stop in for their morning coffee.
Everyone has different motivations and desired outcomes; the goal of a comprehensive digital
Kevin Rice • BounteousOver the past few years, a number of c-store operators introduced mobile apps with the goal of fulfilling an imperative to “go digital.”
strategy is to cater to these unique desires and expectations at each and every touchpoint. Understanding your customer base via first-party data and analytics is the first step in doing that.
Once you have data, it can be analyzed and trends within it can be used to better understand consumer behavior and eliminate friction points. This, in turn, drives personalized brand interactions that feel like they were created specifically for each customer, at just the right time.
An effective CRM strategy considers each phase of the customer lifecycle. It requires strategic, delib erate messaging to target users at a unique moment in time, considering channel, frequency or content.
The small marketing team at Blaze Pizza used its CRM platform to gather a wealth of insights about the brand’s clientele.
“We did a series of surveys, which resulted in a much higher engagement rate than we anticipated,” said Vince Szwajkowski, chief marketing officer, Blaze Pizza. “In some cases, we were able to re-engage with lapsed guests. We also received information that we can’t get from transactional data, such as which features should be developed in our app, what they love about the brand, and what is challenging about engaging with the brand.”
This gave Blaze an initial data set to build on. As a result of the survey, the brand put together a successful ”Win Back” campaign for lapsed guests.
Customers want to be communicated with in a personalized way. Digital assets such as apps, websites, self-service kiosks and media displays in the fuel area are all examples of ways in which to do that. The marketing technology, or “martech” stack — which can include the customer data, loyalty, offer management, marketing automation, online ordering, gift card and other platforms — comprise the underlying architecture that powers a brand’s consumer-facing technology.
Consumer insights, gathered from the data and analytics mentioned above, can help drive
the digital strategy and create a roadmap for new technologies, which will be added over time.
Digital transformation is not a matter of immediately instituting the best ideas, but rather trying new methods and initiatives to determine what works best for your brand. Breakthrough ideas come not only from knowing what is working, but from knowing what isn’t.
Some brands will gladly invest in new features and technologies, but struggle to invest in user testing. A/B testing, however, is a critical part of an effective digital strategy. Often, a simple solution can dramatically improve the user experience, but you won’t know that until it’s tested.
Remember: digital transformation is a long-term, iterative process. Even the most successful brands — such as Starbucks, which began its digital journey more than 15 years ago — constantly strive to optimize customer interactions with the brand.
Establishing early-phase collaboration between the IT and marketing departments, along with consideration for operations and accounting, is essential to implementing a holistic digital strategy.
When the IT department understands the ultimate goals of the marketing team, and vice versa, they can work in tandem to evolve the tech stack based on a clear strategy and roadmap, ultimately improving the customer experience and driving measurable business outcomes. They can also be forward-thinking in planning software integrations, rollouts of new products and services, and tracking and measuring progress.
While an app alone may not be a digital strategy, it can be an integral part of your brand’s overarching plan. By creating a roadmap and planning across teams and departments, your c-store’s digital presence will grow and contribute to your bottom line.
Kevin Rice is the executive vice president at Bounteous, a digital growth partner for the restaurant and c-store industries that helps brands like Wawa, Dash In and Domino’s drive incremental revenue through digital experiences.
Wiley Wallaby has announced the introduction of new limited-edition Candy Corn Drops. A new take on the classic Halloween flavor, the candy will be available for purchase in select stores across the U.S. Made with soft and chewy licorice on the inside and a sweet candy shell on the outside, each drop is vegan, kosher, lower in sugar and only uses sustainable palm oils while being only 90 calories per serving.
Wiley Wallaby www.wileywallaby.com
Kellogg’s released its Rice Krispies Shocking Orange Colored Cereal, a seasonal new twist on a classic cereal for Halloween and fall festivities. Rice Krispies Shocking Orange Colored Cereal is colorful and creepy right out of the box. Shocking Orange features the same original taste and crisped rice cereal crunch that families know with the added fun of a festive fall color, so it’s easy to swap into any breakfast bowls or treat-making traditions. Kellogg’s Rice Krispies Shocking Orange Colored Cereal has a suggested retail price of $4.49 for a 7.5-ounce box and $5.49 for a 12-ounce box.
Kellogg Co. www.KelloggCompany.com
Mars has expanded on its line of M&M’S products with the addition of the M&M’S Mad Scientist Mix. Perfect for any Halloween candy dish, the mix brings together three fanfavorite flavors in one convenient bag, including Milk Chocolate, Peanut Butter and Peanut. M&M’S Mad Scientist Mix is available in eight-ounce bags. Mars is also launching more Halloween themed treats as the holiday approaches.
Mars www.mars.com
Keebler and Mario Kart have partnered to create Mario Kart Fudge Stripes Rocky Road Cookies. The new limited-edition cookie is an exciting take on Keebler’s iconic Fudge Stripes cookies with a chocolate- and almond-flavored shortbread, topped with a marshmallow-flavored fudge drizzle. The cookies also mimic the famed Super Star and Lightning power-up shapes from Mario Kart. Mario Kart Fudge Stripes Rocky Road Cookies are available for a suggested retail price of $3.19 to $4.57 per 9.7-ounce pack.
Keebler Co. www.keebler.com
For the first time, Goldfish partnered with Dunkin’ to bring fans a new flavor with limited-edition Goldfish Dunkin’
Pumpkin Spice Grahams. The limitedtime flavor is available for a suggested retail price of $3.39 per 6.6-ounce bag. With notes of pumpkin, dough nut glaze and warm spices — includ ing cinnamon, cloves and nutmeg — Goldfish Dunkin’ Pumpkin Spice Grahams give fans another excit ing way to celebrate the season. These limited-edition grahams are the latest in an exciting line of Goldfish limited-time product offerings that has included Frank’s RedHot Crackers, OLD BAY Seasoned crackers and Jalapeño Popper.
Pepperidge Farm www.pepperidgefarm.com
Dunkin’ www.DunkinDonuts.com
Rich Products has introduced Our Specialty Treat Shop Parfaits to its offerings. The Parfaits — layering cake, icing and rich filling — are available in Strawberry and Chocolate flavors. The Strawberry variety features vanilla cake, vanilla icing and naturally flavored strawberry filling in a 5.5-ounce dessert cup. The Chocolate flavor layers chocolate cake, vanilla icing and rich chocolate ic ing in a four-ounce cup. The individually packaged treats arrive frozen, eight per case, with a 365-day shelf life and a refrigerated shelf life of 10 days.
Rich Products www.richusa.com
Twelve5 has announced the re-release of limited-edition favorites like the Pumpkin Spice Hard Latte, Peppermint Mocha Hard Latte and the Winter Wonderland Hard Latte Variety Pack. Twelve5’s Rebel Pumpkin Spice Hard Latte is on shelves now and will be available in stores throughout October, whereas the Pep permint Mocha Hard Lattes and Winter Wonderland Hard Latte Variety Packs will be on shelves starting in November and lasting through the holiday season. The 5% ABV bever ages are available in over 45 states.
Twelve5 Beverage Co. www.rebelhardcoffee.com
RXBAR released its Pumpkin Spice protein bar. The bar contains 12 grams of protein and is made with cinnamon, pumpkin, cloves and a few other simple ingredients — egg whites for protein, dates to bind and nuts for texture. The launch of this pumpkin spice protein bar comes following the introduction of RXBAR’s new Chocolate Cinnamon Brownie protein bar that was released earlier.
RXBAR www.rxbar.com
Coca-Cola added Costa Coffee to its beverage portfolio and is now offering Costa Smart Café. This is a revolutionary piece of autonomous equipment that provides barista-quality coffee at the touch of a button — essentially an unmanned coffee shop in a box. It’s perfect for convenience retail, grocery, lodging and leisure outlets. The hot and cold drinks are always crafted using fresh beans, which are ground inside the machine, and fresh milk, which is frothed by the machine. It is designed to dispense over 100 drinks before any human assistance is needed.
The Coca-Cola Co. www.coca-colacompany.com
Ferrara announced one of its new Halloween mixes: Ghost Goodies Mix. This spooky mix features a lineup of Ferrara favorites. Varieties include Nerds; Nerds Gummy Clusters; Trolli Sour Brite Crawlers Pouches; Laffy Taffy in Banana, Apple, Cherry and Strawberry flavors; and SweeTARTS Original. The mix is available nationwide. Ghost Goodies Mix comes in a 90-count Laydown Bag at a suggested retail price (SRP) of $12.99 and a 135-count Standup Bag at an SRP of $17.99.
Ferrara www.ferrarausa.com
Hostess Brands is offering three fall-flavored treats this upcoming autumn season. Hostess fans once again will be able to enjoy their favorite snacks in fall-inspired selections of the brand’s classic treats. The returning snacks for autumn include Hostess Pumpkin Spice Flavored Twinkies, Hostess Iced Pumpkin Flavored CupCakes and Hostess Caramel Crunch Donettes. Each of the seasonal snacks is available in a multi-pack at a suggested retail price of $3.99. Hostess Iced Pumpkin Flavored CupCakes and Hostess Caramel Crunch Donettes are also available in single-serve packages at a suggested retail price of $2.30.
Hostess Brands www.hostessbrands.com
Hard Rock International announced the launch of Hard Rock 10% ABV Grab ’n’ Go Cocktails, joining spirit-based Classic Hard Rock Cocktails and Hard Rock Hard Seltzers. Hard Rock Grab ’n’ Go Cocktails are for those seeking great taste on the run: the 19.2-ounce cans are filled to the rim with Hard Rock-inspired flavors, including the classic Hurricane and the ever-popular Long Island Iced Tea. Each 10% ABV, single-serve, gluten-free, 19.2-ounce can bears a suggested retail price of $2.99. The Hard Rock 10% ABV Grab ’n’ Go Cocktails are available for order now.
Hard Rock International www.hardrock.com
Erie Brush is now offering the “Poodle Brush” and “Wheel Wonder.” These brush filaments vary in size between three to seven inches in a wave-like pattern. The contoured brush designs reach higher and get in much deeper on larger vehicle wheels, rims and tires for a more complete cleaning. These uniquely shaped, automated wheel brushes can be used on the smallest cars to the largest vehicles without adjustment and are gentle on all types of wheel surfaces. These highquality brushes are manufactured with superior filaments, more fill density and a very solid core, so are very resistant to damage from vehicle impacts.
Erie Brush www.eriebrush.com
Stacy’s Pita Chips released a new limited-edition Girl Scout Cookie-inspired flavor, Stacy’s Girl Scout Thin Mints Flavored Pita Thins, and pledged a donation of $50,000 to Girl Scouts to support the next generation of female entrepreneurs. From the Girl Scouts to grocery shelves, Stacy’s brought the popular Thin Mints flavor to stores nationwide. Shoppers can join Stacy’s in supporting the next generation of women entrepreneurs by scanning the on-pack QR code to learn more about the partnership.
PepsiCo www.pepsico.com
Girl Scouts www.girlscouts.org
Daiya released one of its most popular limitedtime offerings — Daiya Pumpkin Spice Cheezecake. This plant-based decadence is made with a sweet artisan crust and creamy pumpkin filling that is dairy, soy and gluten free. The seasonal treat gives the taste of a pumpkin pie and cheesecake rolled into one. It is available at select convenience stores, and customers can check with their local store to find it.
Daiya Foods www.daiyafoods.com
Angry Orchard has announced the launch of the new Angry Orchard Hardcore Dark Cherry Apple Imperial Hard Cider. The new innovation marks the brand’s first nationally available 8% ABV cider. Made with traditional bittersweet cider apples and blended with dark cherry juice from concentrate, Hardcore Dark Cherry Apple is a balance of crisp apple and tart cherry sweetness. In honor of its 8% ABV, Hardcore Dark Cherry Apple is available in six-pack, 12-ounce cans. It is also a featured flavor in the Angry Orchard Fall Haul Variety Packs dropped this fall.
Boston Beer Co. www.bostonbeer.com
Innovator in functional energy shots and pills Vitamin Energy announced the launch of Vitamin Energy Focus+ and Vitamin Energy Workout+. These are now available in an all-new flavor, Berry. The shots have zero sugar, contain vitamins and energize up to seven-plus hours. The launch follows the purchase of the company’s new manufacturing plant located in Wilmington, Del. This facility will help optimize production of Vitamin Energy’s various selection of energy shots and pill supplements, while continuing to also provide fast shipping times.
Vitamin Energy www.vitaminenergy.com
Symphony Series architectural lighting fixtures from SloanLED deliver performance and versatility in timeless form factors that blend seamlessly into exterior spaces and share a cohesive family appearance. Built and designed in the company’s Ventura, Calif., facility, Symphony Series is backed by SloanLED’s 10-year product and twoyear total replacement Performance+ Turnkey Service warranties. With 65 years in the industry, SloanLED offers the best LEDs and support, superior technical assistance and unparalleled customer assistance, which is why companies that mean business choose SloanLED.
SloanLED www.SloanLED.com
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Display Technologies announced its Ice-Glide, a gravity-fed, angled coldvault shelf to drive sales. The Display Technologies Ice-Glide maximizes beverage brand exposure while frontfacing the product to ensure optimal appearance. Easy-to-use, customizable lane-width dividers snap into place to provide flexibility in meeting ever-changing planograms and packaging retail needs. The new Ice-Glide is launching in early 2023. Display Technologies is a Marmon Foodservice Technologies brand where the uptime is its priority.
Marmon Foodservice Technologies www.display-technologies.com
Dos Equis launched the new Dos Equis Margarita Classic Lime, which is a ready-to-drink, spirits-based product that blends Blanco Tequila and high-quality ingredients. Each 12-ounce cocktail-in-a-can contains 10% ABV and is made with tequila, real lime juice and natural flavors. The beverage is available now in four-packs with 12-ounce cans in select markets in the U.S., such as New Mexico, New Jersey, Colorado, Massachusetts, Louisiana, Illinois, Las Vegas, Georgia, Southern California and Arizona.
Heineken USA www.heinekenusa.com
FULFIL Chocolate Peanut Butter Vitamin and Protein Bars are sweet and salty snacks that are made to fuel adventure. This bar’s smooth center is fl avored with real peanut butter, covered in a double layer of chocolate and topped off with peanut butter chips. It has 15 grams of protein, one gram of sugar, two grams of net carbs and is an excellent source of eight different vitamins. They are available in 1.41-ounce bars and come in four-packs.
The Hershey Co. www.thehersheycompany.com
Warren Rogers’ fuelWRAp is a precise and efficient fuel management system. fuelWRAp uses realtime data and leverages the flexibility and smart analytics of the cloud to help travel center and convenience store operators continuously track every drop of precious fuel inventory — as it makes its way to the site, enters the tank, flows through each fuel line and reaches the meter — even at the most complex, high-throughput sites. The fuelWRAp streamlined user dashboard brings KPI metrics, interactive charts and graphs and historical data right to desktops, tablets or phones.
Warren Rogers
www.warrenrogers.com
Truly Hard Seltzer announced the rollout of a sweeping product optimization of its entire portfolio, adding real fruit juice to its flavors. Optimized over a year-long research and development process to increase sessionability for a cleaner, more refreshing taste profile, Truly Original Mix Packs including Citrus, Berry and Tropical made with real fruit juice are rolling out now. Truly’s new Original Mix Packs have a hint of flavor, an all-new look and new Watermelon Breeze and Strawberry Lime flavors. Truly’s bold, flavorful packs like Lemonade, Margarita, Punch and Tea have always included real fruit juice but have been improved.
Truly Hard Seltzer
www.trulyhardseltzer.com
Morinaga America has announced the launch of its new Hi-Chew Reduced Sugar, which comes in the fan-favorite Mango and Strawberry flavors. Offering customers the same taste and texture, the new candy comes with 30% less sugar. The chewlets feature a double layer of fruit flavor that is made with dietary fiber and other unique formulations to reduce sugar content. The candy, containing no colors from synthetic sources, is also made with concentrated fruit juices and puree, natural and artificial flavors. Hi-Chew Reduced Sugar is offered in a twoounce bag for a suggested retail price of $3.29.
Morinaga America www.morinaga-america.com
360 Fuel 101 833-360-3835 / www.360fuel.net
5-Hour Energy 43 866.960.1700 / www.5hourEnergy.com/trade
Abbott 41 https://pedialyte.com
American Business Brokers 23 800.805.9575 / Terry@TerryMonroe.com
Barefoot Cellars 71 https://www.barefootwine.com
Black Buffalo 51 www.wholesale@blackbuffalo.com
Calico Brands 56 800.544.4837 / www.calicobrands.com
Cheyenne International, LLC 53 888.254.6975 / contactus@cheyenneintl.com / www.cheyenneintl.com
The Coca-Cola Company 25 800.241.COKE / www.coca-colacompany.com
Core-Mark International 93 www.core-mark.com
E-Alternative Solutions 6-7 www.EalternativeSolutions.com/Forth
Edge Petrol 119 917.689.6444 / hello@edgepetrol.com / www. edgepetrol.com
Essentia Water 9 877.293.2239 / sales@essentiawater.com / essentiawater.com
Fintech 107 813.452.3599 / www.fintech.com
Fiorucci Foods 17 www.fioruccifoods.com
Ford Gum 67 847.955.0003 / sales@fordgum.com / www.fordgum.com
f'real 37 800.483.3218
Haleon 5, 73 Chapstick: L.Hankins@haleon.com / Nicorette: Scott.F.Breisinger@haleon.com
The Hershey Company 61 www.thehersheycompany.com
Hoshizaki 27 www.hoshizakiamerica.com
Hussmann 89 800.592.2060 / www.Hussmann.com
Invenco 11 www.invenco.com/s/greengrass
John Middleton Co. 3 877.968.5323
Johnsonville C-Store 85 https://cstore.johnsonville.com
Kellogg's / MorningStar Farms 29 www.kelloggsawayfromhome.com
Kaivac 97 800.287.1136 / www.kaivac.com
Kretek 59 KretekSales@Kretek.com / www.CubanRoundsCigars.com
Krispy Krunchy Chicken 131 800.290.6097 / www.krispykrunchy.com
Liggett Vector Brands 33 877.415.4100
LK Packaging 83 800.809.8393 / www.LKpkg.com
Loomis U.S. 117 713-435-6700 / sales@us.loomis.com / www.loomis.us
Marmon Foodservice Technologies 87 https://marmonfoodservice.com
Mars Wrigley 65 www.mars.com
MIT45 15 886.MIT.4555 / Sales@MIT45.com / www.MIT45.com
Modern Store Equipment 45 877.532.8433 / info@modernstoreonline.com / modernstoreonline.com/cstore
Myle Vape 31 sales@mylevape.com
North American Bancard 128 866.481.4604 / www.nynab.com
NRS Petro 36 888.260.0112 / www.nrspetro.com
Perfetti van Melle 63 www.perfettivanmelle.com
Philip Morris USA 2 insightsc3m.com
Prairie City Bakery 84 www.pcbakery.com
Premier Manufacturing, Inc. 57 www.gopremier.com
Rudolph Foods 79 www.rudolphfoods.com
Sloan LED 103 www.slnld.co/csd1
Smokey Mountain 115 www.smokeymountainsales.com
Southern Champion 49 www.UptownCocktails.com
Swedish Match 800.367.3677 www.zyn.com 13 www.whiteowlcigar.com 35, 111 www.gamecigars.com 55
Swisher International 132 800.874.9720 / www.swisher.com
TransAct Technology 77 877.748.4222 / www.transact-tech.com
Trion Industries, Inc. 19 800.444.4665 / info@triononline.com / TrionOnline.com
Twang 88 800.950.8095 / info@twang.com / www.twang.com
Uncle Ervins 81 315.708.4616 / gerhard@juniorjerky.com
VLN Cover TryVLN.com
Welbilt / MerryChef 113 888.417.5462 / www.merrychef.com
Xcalibur International 47 https://xcaliberinternational.com
Zippo 21 www.zippo.com
The c-store chain’s new shortened workweek has resulted in happy, refreshed employees, improved turnover and more hiring power.
Melanie Disney • Weigel’sIn today’s tight labor market, finding new strategies to boost hiring and retention is key. At Weigel’s, based in Powell, Tenn., we’re changing our store employees’ work schedules to help combat the labor environment we’ve witnessed over these past three years.
We’re giving full-time, hourly employees the option of choosing a four-day workweek — in stead of the usual five-day workweek — as well as offering employees a fixed weekly schedule.
This seemed like the perfect time to make this option available to our employees. With the number of job openings still higher than the number of workers available to fill roles, our human resources department knew we had to make a change or continue to fight an uphill battle. We realized that by offering flexibility in our scheduling options, we’d attract talent from markets previously left untapped.
We started the program in January 2022 in our test district. We saw turnover reduced by 45% within the test district. Given the success in the test market, we rolled the program out companywide in August 2022. The new pro gram has not only resulted in a reduction in turnover, but also fewer call outs and happier employees. Store leaders have also noted a bump in overall store morale too.
“I think (the four-day workweek) is a great idea to get everyone on board,” noted Weigel’s Store Leader Daniel Jones. “It has helped with a lot of staffing issues and has given us an
advantage over other companies out there in recruiting and hiring talent.”
The extra day off gives employees the ability to plan their time in a way that makes sense for them. The change has been met with very posi tive feedback from Weigel’s employees. Some said that they enjoy having the extra day off because it allows them to run errands that they otherwise didn’t have time for, such as personal appointments and trips to the bank, or just time to unwind, relax and get ready for their next shift. Others said they love the extra time they are getting to spend with their family.
“My employees absolutely love it,” added Weigel’s Store Leader Ariel Hunley. “I think it is very beneficial when it comes to keeping employees. Who wouldn’t want to be able to get their hours in four days and have three to recoup and take care of family?”
“Our employees are happy to come back to work after having three consecutive days off,” added Weigel’s Store Leader Liz Gatrell. “They are refreshed and ready to take on whatever the shift has in store for them with a positive attitude.”
Weigel’s is a family-owned and -operated east Tennessee business with 72 convenience stores, a dairy and a bakery. The bright, spacious stores represent state-of-the-art convenience retailing and pride themselves on premium customer service and locally sourced products.
Melanie Disney is the director of human resources for Weigel’s. Disney has been instrumental in transforming the culture and talent at Weigel’s.
