Prepaid Card Sales Climb

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.

INCREASING PROFITABILITY

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 statements) with car wash gross margin in the 70-80% range,” Montgomery said. “However, the (percentage) can definitely 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.”

TECHNOLOGY DRIVEN

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

fast facts:

• 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.

REACHING HISPANIC SHOPPERS

Getting to know your Hispanic customers and their preferences is key in attracting this demographic.

Erin Del Conte • Executive Editor

As the U.S. Hispanic pop-

ulation continues its rapid growth, c-stores need to consider how they are catering 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% compared 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 growing 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 celebrations (Quinceañeras, baptisms, Christmas, Easter, Day of the Dead and Mexican independence 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 demographic? 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 Communications

better, while the younger (millennials and Gen Z) generations may speak the language but may have difficulties writing in Spanish. Nevertheless, they feel connected with their Spanish 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 generations tend to look for traditional authentic dishes, while the younger generations are more accepting of combining traditional Hispanic foods with traditional American foods.

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 fi nd 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 fi nd 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 fl avor 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 fl avor 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 fl avors: 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

BECOMING AN ELECTRIC VEHICLE DESTINATION

Savvy c-stores are tapping funding opportunities for EV charging and identifying basket building occasions around customer dwell times.

Peter Rasmussen • Convenience and Energy Advisors

Selling electrons is not something that can directly produce profitability 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 infrastructure but also demand charges from utility providers, 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 announced that later this year it will begin production 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.