RaceTrac enters a new era under thirdgeneration CEO Natalie Morhous as it expands in the Southeast and Midwest.
CEO Natalie Morhous took the helm of RaceTrac in January, carrying forward the legacy built by her father and grandfather.
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PREVENT UNDERAGE SALES
OF TOBACCO PRODUCTS
Ensure that retail remains the most trusted place to responsibly sell tobacco products.
Did you know the average number of FDA compliance checks per month are approaching pre-COVID-19 levels?
In 2023, as of 9/30/23, the FDA conducted 9,381 compliance checks per month, which was an uptick from previous years.*
*Source: FDA CTP Violation Rate analysis was completed using publicly available raw data posted online at fda.gov.
Calculations of Total Compliance Checks and Violation Rates were computed by AGDC based on Decision Data published. Inspections data FFY 2019 - 2023
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the CSD Group
www.cstoredecisions.com
CStoreDecisions CStoreDecisions com CStoreDecisions
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.
Robin Hunt, Sales Hunt Brothers Pizza • Nashville, Tenn.
Kyle May, Director External Relations Reynolds Marketing Services Co. • Winston-Salem, N.C.
Steve Yawn, Director of Sales McLane Company Inc. • Temple, Texas
YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD
Kalen Frese (Board Chairman), Director of Merchandising 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.
Cole Fountain, Director of Merchandise Gate Petroleum Co. • Jacksonville, Fla.
Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas
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CStoreDecisions
Editor’s Memo
For any questions about this issue or suggestions for future issues, please contact me at edelconte@wtwhmedia.com.
Adapting to New Consumer Demands
The convenience store environment is evolving rapidly as consumer preferences shift toward fresh, on-the-go options and digital convenience. For convenience store retailers, staying ahead of these trends is essential to ensure you’re not only meeting customer expectations but also driving growth in an increasingly competitive market.
RaceTrac, highlighted in this month’s cover story, is a prime example of a chain that knows firsthand the importance of shapeshifting throughout the years in order to thrive across nearly a century in business. The chain is celebrating its 90th anniversary in 2024.
“It’s so unbelievable to think about what my grandfather might have dreamed of when he started RaceTrac in 1934,” said RaceTrac CEO and third-generation leader Natalie Morhous. She noted RaceTrac’s growth has likely surpassed anything her grandfather might have imagined.
Likewise, today’s c-store leaders likely can’t envision what their business will look like 90 years from now. However, by fostering a commitment to innovation and embracing a growth mindset, you can set the foundation for a lasting legacy.
KEEPING PACE WITH INNOVATION
As the industry convenes in Las Vegas Oct. 7-10 at the NACS Show, retailers will have the opportunity to learn about the latest products and trends shaping the c-store landscape.
One key category to keep an eye on as you walk the show floor is foodservice, which is becoming increasingly important to c-stores as they look to compete with quickservice restaurants (QSRs) for share of stomach. C-stores doubling down on foodservice need to walk a fine line between providing high-quality offerings that can go head-to-head with the likes of QSR fare while maintaining value for inflation-strapped customers.
In this issue’s foodservice section, we’ll guide you through how to boost coffee sales, key sandwich trends and how to implement healthy food options with minimal effort.
As you look to adapt to shifting trends, remember that it’s not just about what’s on the shelves and at the food counter that matters, but also how stores engage their customer base.
More c-stores are offering loyalty programs, for example, which have evolved from basic rewards systems to sophisticated, data-driven tools complete with mobile apps that offer personalization and targeted promotions.
In this month’s article “Top C-Store Loyalty Innovators,” CStore Decisions and c-store advisory firm NexChapter showcase two c-store chains standing out for recent upgrades to their loyalty offerings.
Meanwhile, an increasing number of chains, especially those with highway locations, are positioning themselves as leaders in electric vehicle (EV) charging. This month’s article “Capitalizing on EV Charging at C-Stores” shared that the number of EVs in the U.S. is estimated to hit 27 million by 2030 and 92 million by 2040, per PwC (PricewaterhouseCoopers), a global professional services firm.
CStore Decisions’ Chain of the Year Pilot Company is leading the charge by installing EV infrastructure from coast to coast across hundreds of its travel center locations. Pilot’s also modernizing its locations for the future. If you’re a retailer attending the NACS Show, be sure to celebrate Pilot with us on the evening of Oct. 8 at The Strat. For details and to RSVP (retailers only): Cstoredecisions.com/2024-chain-of-the-year.
Lastly, but certainly not least, in today’s merger and acquisition environment, growth is crucial to being able to stay competitive in an increasingly consolidated marketplace. This month’s article “Financing the Future” shares advice and key considerations when looking to expand your footprint.
There are many avenues through which to evolve and elevate your c-store business to keep pace with today’s fast-changing landscape. What’s certain is convenience store operators who innovate today will be better positioned to tackle tomorrow’s challenges.
Erin Del Conte
Preparing for 2024 Elections
Fall elections could impact the future of the tobacco category.
David Spross • NATO
There is a frequently used saying in politics: “elections matter!” This is certainly applicable to the tobacco and regulatory space, where who controls the White House, Congress and even who runs things on the state level have substantial impacts on policies.
On the federal level, the fate of two proposed rules, one to ban menthol in cigarettes and the other banning flavored cigars, hang in the balance after the current White House administration delayed finalization of these rules until after the election as “the rules have garnered historic attention and the public comment period has yielded an immense amount of feedback, including from various elements of the civil rights and criminal justice movement. It’s clear that there are still more conversations to have, and that will take significantly more time,” according to a Department of Health & Human Services statement on April 26.
As a result, post-election, one of three scenarios are likely to occur:
1.) VP Kamala Harris wins the election, and the rules are finalized shortly after November.
2.) VP Harris loses, and the rules are finalized prior to the new administration taking office.
3.) Former President Donald Trump wins, and his administration holds the rules and prevents finalization.
Regardless of when the rule is finalized, there will be an effective date of at least one year from publication, and this timing is likely to be extended due to expected Court challenges.
Whatever course of action is taken on the menthol cigarette and flavored cigar ban, the finalization of these rules will impact the timing of proposing a rule regarding a maximum cap on nicotine in cigarettes and possibly other combustible tobacco products.
The FDA has stated publicly that it won’t move forward on low-nicotine until sometime after the final menthol cigarette and flavored cigar regulations are released. As a reminder, this proposal is much earlier in the rule-
making process compared to the menthol/flavored cigar ban as there are a number of steps the agency needs to take before these regulations take effect, thus resulting in many years before any low-nicotine rule is effective.
Party control of Congress will also have an impact on tobacco and nicotine legislation. In 2021, when President Joe Biden just took office and the Democrats controlled both the U.S. Senate and House, substantial increases in tobacco taxes were proposed as part of an economic package. After engagement from industry stakeholders, the tobacco tax hikes were removed from the package. Currently, the U.S. Senate is led by Democrats by a 51-49 margin, and the U.S. House is controlled by Republicans. My prediction is that the Senate flips to Republican control due to the number of seats Democrats are defending and the House changes to Democrat-led due to the narrow margin of current Republican control.
On the state level, there are 11 gubernatorial races throughout the country. In Vermont, Governor Phil Scott is running for re-election. Earlier this year, Governor Scott vetoed a bill that would have banned flavors in all tobacco products. Additionally, new governors will be elected in eight states as the incumbent is either not running again or is term limited.
Equally as important is party control of the state legislatures. Over 5,700 state legislative seats in 44 states are up for grabs this year. As we have seen in recent years, these legislative bodies have considered many tobacco-related bills, including increasing state excise taxes, banning flavors in tobacco products and restricting tobacco licenses.
As election day draws closer, I encourage all to be involved in the process and, most importantly, go vote! NATO will be engaged educating policymakers, regulators and candidates on these important tobacco and nicotine regulatory issues.
David Spross is the executive director of the National Association of Tobacco Outlets (NATO), a national retail trade association that represents more than 66,000 stores throughout the country.
RaceTrac Celebrates
90th Anniversary Milestone
RaceTrac enters a new era under third-generation CEO Natalie Morhous as it expands in the Southeast and Midwest.
Erin Del Conte • Editor-in-Chief
As RaceTrac celebrates 90 years in business , the third generation of the founding family is now steering the company and building on the chain’s long-standing legacy. With an eye on innovation, RaceTrac is focused on growth, expanding its footprint in the Southeast while moving into new states across the Midwest — with new stores in operation in Indiana, and Ohio next on its agenda — marking an exciting new chapter in its history.
This past January, Natalie Morhous, who also serves as board chairman, assumed the mantle of CEO from Max McBrayer who helmed the company since 2019.
“It is an honor to step into this role to guide the company that my grandfather started so many years ago,” Morhous said, adding that she is motivated to build on her father’s and grandfather’s legacies as she leads RaceTrac.
“What a special time for my family, for RaceTrac and for me to be able to become CEO alongside this incredible milestone. It’s so unbelievable to think about what my grandfather might have dreamed of when he started RaceTrac in 1934,” she said.
While Morhous doesn’t know what he envisioned his legacy might become, she does know RaceTrac’s growth has likely surpassed anything he might have imagined.
Headquartered in Atlanta, RaceTrac now stands as the 18th-largest privately held company in the U.S., according to Forbes, and employs more than 10,000 team members. It serves 9 million customers weekly across more than 800 retail locations, which include 584 company-owned and -operated RaceTrac stores in 10 states and 235 franchisee-operated RaceWay sites throughout 13 states. RaceTrac also operates three affiliated companies: Metroplex Energy, a wholesale fuel company that secures bulk fuel to supply rack sales and delivery of gasoline, diesel and biofuel products by pipeline, rail, truck, barge and vessel; its fuel transportation company, Energy Dispatch; as well as its recent acquisition, Gulf Oil.
EARLY DAYS
In 1934, Morhous’ grandfather, Carl Bolch Sr., opened a gas station known as Carl Bolch Trackside Stations in Missouri and began building a company that would one day become RaceTrac.
His son, Carl Bolch Jr., succeeded him as CEO in 1967 and pioneered the self-service gasoline business in the South. The company moved its headquarters to Atlanta in 1976, and in 1979, established the RaceTrac brand for company-operated stores and the RaceWay name for its franchise locations. Under Bolch Jr.’s leadership, RaceTrac grew to become Georgia’s second-largest privately held company. He also grew the RaceTrac and RaceWay brands from 100 stores in two states to the more than 800 locations it spans today.
Morhous, who is Bolch Jr.’s daughter, joined RaceTrac in 2012 after a career in consulting. Over the past 12 years, she has led various departments within RaceTrac from strategy and development to managing the fuel transportation business, gaining insights and experience into all aspects of the family business. For the past five years, Morhous served as president of the company before taking the helm as CEO in January.
“My father led the organization for most of my lifetime and had such a tremendous impact,” Morhous said. “My dad has many qualities I attempt to emulate these days: a fundamental drive for continuous improvement; an innate curiosity about the world and how he could make his sliver of it just a little bit better; a quiet style that applied work ethic and intellect in a way that encouraged others to give it their all each day.”
Morhous added that she’s excited to take on the role of CEO because she loves managing the family business and she also loves the people, including family members, that she gets to work with each day. That includes her sister, Melanie Bolch Isbill, RaceTrac’s chief brand officer and member of the board of directors; her brother, Jordan Bolch; and her mother, Susan Bolch, who both sit on the board of directors. Earlier this year, her father, Bolch, Jr., was named chairman emeritus after more than five decades with the c-store chain.
Morhous noted that RaceTrac has been a growing organization throughout her lifetime. In the past 12 years alone, RaceTrac has experienced a 40% growth in store
Natalie Morhous, who served as president of the company for the past five years, took the helm as CEO in January.
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RaceTrac features high-flow diesel canopies for professional drivers. When RaceTrac considers where to expand, it is evaluating locations to ensure it can continue to grow in that area as well as where it can best position its diesel offering on U.S. highways and interstates.
count. As CEO, Morhous is committed to continuing RaceTrac’s expansion.
“The recent evolution of our growth strategy has been particularly exciting. Recent innovations in store formats, new products and, of course, new markets are all coming to fruition. For these reasons, I expect the company will look quite different within the next few years,” Morhous said.
While RaceTrac has operated in key metropolitan markets in the Southeast for a long time, it’s now actively growing its footprint in the Southeast while simultaneously expanding into the Midwest. RaceTrac re-entered the Alabama market and entered Kentucky in 2021, and in December 2023 it moved into Indiana. RaceTrac sees each of these markets as growing areas that are ripe for expansion. Now, the chain has its sights set on the Ohio market, where it is set to open its first store by the end of 2024, adding an 11th state to RaceTrac’s footprint. RaceTrac is also set to celebrate its 600th store opening in spring 2025.
At the same time, RaceTrac is evolving its identity when it comes to the type of stores it’s constructing as it creates a diesel network for professional drivers.
As a high-volume retailer, when RaceTrac evaluates where it should expand, it is evaluating locations to ensure it can continue to grow in that area as well as where it can best position its diesel offering on U.S. highways and interstates.
“RaceTrac is prime to expand our footprint in both of those ways,” Morhous said. “Hopefully that will be one of the big legacies that today’s leadership team has on the organization.”
As it grows, RaceTrac continues to eye acquisitions that can help elevate its offering. Most recently, in December 2023, RaceTrac acquired Gulf Oil LLC, which included Gulf’s iconic brand in the U.S. and Puerto Rico, Gulfbranded distributor and license agreements for about 1,100 branded sites, and exclusive rights to market fuel at 11 Massachusetts Turnpike service plaza locations.
“It’s been just a tremendous acquisition for our company and the largest in our history,” Morhous said. “We are super proud of the Gulf brand, and we have wonderful plans to grow that brand (both within its current footprint and beyond).”
Additionally, the chain is growing through new-toindustry expansion.
“We’re building more stores this year, and we already have stores under construction that will be opening next year,” Morhous said. In 2024, RaceTrac expects to have opened 28 new RaceTrac and RaceWay stores by the end of the year, with 40 more on the docket for 2025.
PREMIUM STORE EXPERIENCE
As it grows, RaceTrac remains committed to regularly upgrading its legacy store locations. RaceTrac first launched its remodel program for existing sites in 2013, and that initiative remains an ongoing program for the chain as it continues to bring its latest offers to even its oldest locations.
“We keep those facilities refreshed because we pride ourselves in being a premium convenience store offering, and we want to make sure that guests really feel that premium experience with not just our people and our offers, but our facilities as well,” Morhous said.
RaceTrac’s current prototype design is called the EFC, standing for Enhanced Fuel, Food, Frictionless Concept.
“Our strategy is very focused on food offers, on creating a frictionless shopping experience and on consistently enhancing how guests can refuel at our stores, so that the ‘F’ really aligns with the fuel goals, the food goals and the frictionless goals,” Morhous said.
The new c-store prototype measures 6,000 square feet and is specifically designed to help achieve more efficient operations within the stores. Most feature a second high-flow diesel canopy and presentation for professional drivers.
RaceTrac has also developed a travel center prototype, which is new for the chain. Those stores span 8,000 square feet. The c-store chain currently operates 26 travel centers.
Both versions of the prototype place the foodservice counter in the center of the store, so it’s the first thing guests see when they walk in the door.
RaceTrac’s overarching goal with the EFC prototype is to provide a premium shopping experience to guests.
“Part of that is the welcoming environment and the feeling of safety in our stores. So we are very intentional with the design of each store location, inside and outside — to make sure that our colors are vibrant and that our lighting creates a bright space at all hours of the day,” Morhous said.
Although RaceTrac’s color palette has evolved over the years, its core remains rooted in the iconic blue and red
customers recognize.
In the forecourt, RaceTrac is embracing a diverse range of fuels to keep customers on the move, from diesel and traditional gasoline to cutting-edge electric vehicle (EV) charging. RaceTrac currently has EV chargers at seven locations and plans to continue to roll out EV chargers strategically where it makes sense for the organization.
Morhous noted that RaceTrac doesn’t see itself as a “gas-first organization” today.
“We see ourselves as a convenience destination offering guests whatever they need in the moment,” Morhous said. “And EV charging is one of those things. So as demand for EV charging grows, we absolutely expect to continue to expand EV charging to meet that guest on the go, just as we always have.”
GRAB-AND-GO FOOD
RaceTrac shifted its foodservice strategy away from made-to-order in 2018, but it remains committed to its food strategy of satisfying and delighting guests with value and quality offerings. Today, RaceTrac is focused on a grab-and-go offering that provides guests with a frictionless and high-quality experience.
“All our hot foods are made in-house, so they are fresh and ready when our guests are craving them,” Morhous said. “We have moved away from made-to-order in an effort to really meet our guests where they want to be met and allow them to put as much or as little of the various toppings on their food as they want to.”
RaceTrac’s new c-store prototype measures 6,000 square feet and is specifically designed to help achieve more efficient operations within the stores as well as a premium shopping experience for guests.
Foodservice is a big part of RaceTrac’s focus. Guests can enjoy hot graband-go-foods, including a pizza program and a roller grill offering with a toppings bar, among other options.
RaceTrac’s proprietary pizza program is the cornerstone of its hot grab-and-go food program. The program features year-round pizza staples such as pepperoni and sausage but also includes the regular addition of limitedtime pizza offerings to keep the menu fresh and drive guest engagement
RaceTrac also serves up made-in-store fried chicken, breakfast sandwiches, burgers, empanadas and potato wedges. Further, the c-store has a strong roller grill program with a full toppings bar, which allows customers to customize the offering to their preferences.
All of RaceTrac’s stores feature bean-to-cup coffee to ensure customers receive the freshest cup of coffee possible. Plus, an array of flavors and creamers allows guests to customize the coffee to their preferences.
Guests can also enjoy RaceTrac’s Swirl World self-service frozen yogurt bar.
All stores feature a bean-to-cup coffee program.
“It’s an incredibly fresh coffee offer,” Morhous said. “Alongside that, we not only have many varieties of beans, but we have lots of different flavors of creamers and toppings … where guests can really customize it and make it their way.”
RaceTrac offers order ahead through its RaceTrac Rewards app, and it partners with DoorDash for delivery.
TECH WATCH
RaceTrac introduced an upgrade to its popular RaceTrac Rewards app in May, which includes a redesign that improves functionality and makes the app easier to navigate.
Through the RaceTrac Rewards program, guests can earn points on every purchase they make whether inside the store or at the gas pump. Then, through the app, they can redeem those points for free items listed in the Rewards catalog. Rewards customers also enjoy discounts, special coupons and promotions. (Learn more on page 76.)
“As a part of being a member of our rewards program and having our app, as long as you type in your phone number or scan your app (at the checkout), any couponing/deal automatically is deducted at the point of purchase so that we make sure that guests never miss a deal,” Morhous said. “We’re excited about that frictionless experience as well, and our marketing team has plans to continue to evolve the Rewards experience.”
Today, RaceTrac features self-checkout kiosks in about half (288) of its RaceTrac locations and has plans to roll out self-checkout at all new-build locations.
“We love it because guests love it,” she said. “Over the last couple of years, we have made strides in self-checkout. We plan to continue to roll out more self-checkout
(Right) RaceTrac features self-checkout kiosks in about half of its RaceTrac locations and plans to roll out self-checkout at all new-build locations. (Below) RaceTrac introduced an upgrade to its popular RaceTrac Rewards app in May, which includes a redesign that improves functionality and makes the app easier to navigate.
First and foremost, as RaceTrac looks ahead, it plans to continue to prioritize that value while continuing to build stores with a range of offerings that provide a one-stop shopping experience for guests on the go.
“We expect you to be able to get everything from your fuel to the beverage of your choosing to great food — 24/7, 365 days a year — all at RaceTrac,” Morhous explained.
kiosks to even more stores in the future in our continued efforts to satisfy the on-the-go guest seeking a frictionless c-store experience.”
RaceTrac is also focused on a data-first mindset.
“In addition to making our customers’ experiences simpler and more enjoyable, we aim to harness the power of data to make better business decisions to help us unlock greater value for our customers and boost competitiveness,” Morhous said.
FUTURE OUTLOOK
Looking ahead, RaceTrac is committed to developing initiatives that drive continued growth to meet the evolving demands of its customer base.
“When we say we pride ourselves on making people’s lives simpler and more enjoyable, that’s really how we define who we are as an organization,” Morhous said.
RaceTrac also takes community involvement seriously and proudly supports many community partnerships, including Georgia’s Camp Sunshine, the Boys and Girls Club of America and The Michael J. Fox Foundation for Parkinson’s Research. It is also a proud sponsor of Major League Baseball’s Atlanta Braves, the National Football League’s Atlanta Falcons and Major League Soccer’s Atlanta United.
Morhous credited RaceTrac’s success over the past 90 years to the dedication of its team members across RaceTrac and all its affiliated companies. “They’re the ones that really make the experience special,” she said.
“None of RaceTrac’s numerous successes would be possible without the leadership that came before me and the incredible team I have in place today,” Morhous said. “We’re going to continue to grow and evolve and, as my father always said, let the marketplace be our teacher, so that we can meet guests where they are with what it is they want and need every day.” CSD
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Why Social Sourcing is a Top Concern for Retailers
Empower employees to identify and deny adult buys for minors.
Social sourcing is a significant concern as underage youth find new ways to access age-restricted products. While traditional retail compliance has improved, non-commercial methods—like asking someone of age to buy products for minors—complicate efforts to prevent youth access.
We Card, a national nonprofit focused on responsible retailing, addresses this challenge through expanded resources and training aimed at educating both employees and customers. CSD spoke with Doug Anderson, the president of We Card to shed light on social sourcing and how their latest campaign is helping retailers stay proactive.
What is social sourcing, and why is it a big challenge for retailers?
Social sourcing involves someone legally of age purchasing products on behalf of a minor. According to the CDC’s Youth Risk Behavior Survey, more high schoolers now obtain electronic vapor products through social methods, like borrowing or asking someone else to buy for them, rather than buying directly from a store. Although these transactions may fall outside direct legal scrutiny, retailers must act responsibly by denying sales when they suspect social sourcing.
How does We Card’s training help employees prevent social sourcing?
We Card’s training emphasizes scenarios that retailers might encounter, such as noticing money exchanged between an underage individual and an adult outside the store or near the counter. Another red flag is when an underage customer, after being denied a sale, asks an adult companion to make the purchase. We Card’s program covers these situations and encourages employees to deny sales when they suspect a transaction is on behalf of a minor. Beyond training, in-store communication tools inform customers that buying for minors is against store policy and potentially illegal.
What resources does We Card offer to combat social sourcing?
We Card’s campaign includes free kits that educate both employees and customers. These kits feature consumerfacing signage, point-of-sale materials, and digital content for stores with video displays. Two campaign versions are available: one featuring the message “Be a Real Influencer”
and another emphasizing “No Bumming, No Borrowing, and No Buying for Them” if they’re under 21. These resources help reinforce store policies.
How does We Card ensure small stores have access to these resources?
We Card’s campaign materials are designed with accessibility in mind, especially for single-store operators who may not have the extensive resources of larger chains. The nonprofit provides essential tools such as training exercises, signage, and tip sheets, enabling even the smallest businesses to effectively implement best practices in age verification and prevent social sourcing.
Why is ongoing training crucial in addressing social sourcing?
The retail environment is constantly evolving, with new products, laws, and challenges. High employee turnover makes continuous training essential. We Card’s annual training program keeps staff updated on the latest regulations and scenarios, ensuring retailers remain compliant and proactive. This ongoing support helps retailers adapt to changes in the industry and maintain best practices.
What impact does We Card hope to see from its social sourcing campaign?
Social sourcing isn’t new, but with the rise of vaping products, addressing it effectively has become more urgent. We Card’s goal is to equip retailers with tools and knowledge to reduce social sourcing, raise awareness among adult customers, and ultimately decrease incidents of minors accessing restricted products.
- By Drew Filipski
Taxes, Bans and a Task Force
C-stores remain agile as the tobacco/nicotine category continues to face challenges from local, state and federal authorities.
Anne Baye Ericksen • Contributing Editor
The cost for convenience stores to offer customers a balanced backbar of tobacco and nicotine products keeps creeping up. Just take a look at this overview of taxes as of March 2024 per the Centers for Disease Control and Prevention:
• Cigarettes — Excise taxes range from 17 cents per pack (Missouri) to $5.35 per pack (New York).
• Cigars — All but two states (Florida and Pennsylvania) and the District of Columbia tax sales of cigars.
• E-cigarettes — Approximately two-thirds of states tax retail sales of e-cigarettes and basically the same number require retailers to obtain a license to sell the products.
What’s more, as of July 1, the excise tax on tobacco sales in Colorado went up 30 cents on cigarette packs and 6% more for other tobacco products (OTPs), vapor or nicotine pouches. Maryland convenience stores and tobacco customers experienced a $1.25 tax hike this summer, bringing the price up to $5 for packs containing 20 cigarettes. Taxes for OTPs in the state, minus pipe tobacco and cigars, jumped to 60% of wholesale. Mississippi enacted a $1.25 excise tax on each heated tobacco item.
Of course, flavor bans also remain a hotbutton topic for c-stores. This spring, Utah’s governor signed a law that prohibits flavored ecigarette products except tobacco and menthol, which took effect on July 1.
“The city of Columbus, Ohio, enacted a citywide flavor ban in January of this year,” commented Nathan Arnold, director of marketing for Englefield Inc. He added that more than 20 of the 117 Duchess convenience stores that the company owns and operates are located within the city, and they have been hit with dramatic decreases in tobacco and nicotine sales volumes this year. The remaining Duchess stores are located in Ohio, as well, along with West Virginia.
“There has been a lot of attention on the flavor ban in Columbus, which has prompted other cities to suggest that similar legislation may be considered in the future,” he explained. “While we hope that this does not come to fruition, it does make us analyze this category for not only current sales trends but anticipation of any future changes.”
BEYOND MENTHOL
For the past few years, the Food & Drug Administration (FDA) has been making a lot of noise about banning menthol products. In
spring, the Biden administration announced it was postponing a decision, which was positive news for c-stores. This summer, the FDA issued more welcomed news: marketing authorizations were granted for Vuse Alto devices and its Golden Tobacco and Rich Tobacco flavor pods as well as for NJOY ACE pod Menthol, NJOY Daily Menthol and NJOY Daily Extra Menthol.
The sale of unauthorized products is still an issue, however.
In June, the FDA and the Justice Department announced a new task force, including the U.S. Marshals Service, U.S. Postal Inspection Service, the Federal Trade Commission and other governmental agencies, to “identify and target illegal sales and distribution of e-cigarettes,” according to a statement by the agency. The statement added that the FDA previously sent more than 1,100 warning letters to distributors, manufacturers, importers and retailers regarding sales of unauthorized tobacco products.
“It is interesting that the task force does not include Customs and Border Protection (CBP) or its parent, Department of Homeland Security. In my view, the biggest law enforcement gap — and opportunity — lies in the bailiwick of CBP stopping illegal imports of products that FDA has placed on its red lists,” said Agustin Rodriguez, partner at Troutman Pepper.
“The multiagency task force is a hopeful sign, but it is too early to tell what impact it might have. What convenience retailers need is clarity from the FDA on which products can be on the market and which ones can’t,” said Anna Ready Blom, director of Government Relations for the National Association of Convenience Stores (NACS).
To that end, several states have mandated directories. Starting this month in Iowa, vape manufacturers must certify their products either received FDA marketing authorization or have submitted a premarket tobacco application with the agency.
Utah passed a similar law with the addition of a ban of vape products not in its directory as of Jan. 1, 2025. Also starting in 2025, Florida will require a directory of certified nicotine product manufacturers and certified nicotine products. The state of Kentucky will compile a list of retailers selling authorized vapor products as well as start a noncompliance database of stores that violate the rule.
Finally, on a separate note, the lawsuit challenging the legality of the FDA graphic warning rule for cigarette packaging remains with the District Court, which issued a stay and is awaiting further action from the plaintiffs. CSD
FAST FACTS:
• States are facing various tax increases for many tobacco products.
• The Food and Drug Administration’s graphic warning mandate was stayed by the court.
• States are creating directories to track authorized nicotine products.
Innovating With Candy, Gum and Mints
As candy, gum and mint trends evolve, innovative flavors appear and prices continue to rise, c-store retailers are doubling down on what stays in the candy aisle and what goes to keep confection sales climbing.
Zhane Isom • Associate Editor
As the holiday season rapidly approaches, Halloween is just around the corner, bringing increased attention to the candy, gum and mint segment. With that attention comes new products, trends, purchasing behaviors, snacking habits and sales increases.
Based on Mars’ “Tricks, Treats, and Trends Report,” the candy varieties purchased most often include chocolate (88%), peanut butter/peanut (45%), gummies (43%), fruity (37%), sour (32%) and Halloween specific (44%).
“The state of the confectionery is strong. Confectionery sales hit $48 billion in 2023 and are projected to reach $61 billion by 2028,” said Carly Schildhaus, public affairs manager for the National Confectioners Association. “More than 98% of American consumers purchased chocolate, candy, gum and mints in 2023, and seasonal celebrations — Valentine’s Day, Easter, Halloween and the winter holidays — account for 64% of total chocolate and candy sales.”
Candy, Gum and Mint Sales Succeed
Non-chocolate candy dollar sales grew 5.1%, while gum dollar sales increased 9.3% and breath freshener dollar sales increased 3.4% for the 52 weeks ending July 14.
Source: Circana Total U.S. Convenience data for the 52 weeks ending July 14, 2024
Even though most consumers enjoy treating themselves to new and exciting candy now and then, it’s the younger generations that are most looking for the new candy trends.
“Millennials and Gen Z are most likely to browse the aisle for something new and purchase their candy online, so it comes as no surprise that multisensory experiences and social media stars are also trending in chocolate and candy,” said Schildhaus. “Classic and nostalgic favorites are being reimagined with fun and unique textures and flavor combinations. As more consumers turn to social media to share their favorite candy innovations, confectionery companies are also joining in on the fun.”
CONSUMERS’ CONFECTIONERY DEMANDS
For the 52 weeks ending July 14, inflation appeared to have put a damper on chocolate and non-chocolate candy unit sales. Chocolate candy unit sales dropped 6.2%, likely impacted by the 6.7% increase in price per unit. Meanwhile, non-chocolate candy units saw a 9.9% rise in price per unit, which likely contributed to the 4.4% dip in unit sales, according to Circana.
Mike Jones, director of marketing for S&S Petroleum Inc., operator of 90 locations in four states, has seen a significant decline in unit sales for candy at his convenience stores.
“When we look at the category on a unit growth basis, we see a much different picture. Units are expected to be down 7-9% year over year,” he said. “This will also have an adverse impact on penny profit as margins are the same on fewer units, and promotions are driving overall margins down slightly.”
Despite candy unit sales declining, the category’s dollar sales continue to increase.
Chocolate candy reached $3.61 billion in dollar sales, keeping the segment steady (up 0.1%) for the 52 weeks ending July 14, per Circana. Non-chocolate candy earned $3.37 billion in dollar sales, a 5.1% increase for that same period.
“I’d expect growth in dollars to continue while units remain relatively flat,” said Joseph Bortner, senior category manager for Rutter’s, operator of over 80 locations in Pennsylvania, Maryland and West Virginia. “Looking ahead, the innovation cycle is launching earlier than years past, which should drive some incremental Q4 growth.”
At the Army & Air Force Exchange Service (AAFES), which has over 580 Express c-stores, shoppers are looking for value through trade-up packaging and deeper discounts when purchasing in bulk, noted Faye Shaw, buyer for Express stores. “Value is an important driver and is anticipated to remain key for Exchange shoppers,” she said.
“In candy, share size is king. The retail spread between standard and share size is shrinking,” added Jones. “There is still growth in the larger packages, too. This is due to a shift from immediate consumption to a more ‘eat some now, save the rest for later’ mindset.”
Besides purchasing in bulk, a number of consumers are still looking for the newest and most innovative candy on the market.
“Consumers are demanding new experiences. This is primarily driven through innovation and limited-time offers, which many confectionery brands have continued to implement over the past year,” said Bortner.
Jones mentioned that taste profiles related to heat and sour also seem to be a significant factor in consumers’ candy choices.
Innovation remains critical to the chocolate category at AAFES c-stores.
“The Exchange has seen tremendous success with Hershey’s Reese’s Caramel Cup and Olympics Medal chocolate bar,” said Shaw. “Non-chocolate is the leading category in 2024 with Ferrara’s Nerds Gummy Clusters as the top driver.”
GUM & MINT INNOVATION
Gum and mint dollar sales have been on the rise in c-stores. For the 52 weeks ending July 14, gum brought in $1.20 billion in sales, a 9.3% increase, according to Circana. Breath fresheners brought in $306 million, a 3.4% increase in dollar sales for that same time frame.
Jones mentioned that most of S&S Petroleum’s sales growth for gum and mints comes from larger packs.
When it comes to gum and mint trends, flavor and functionality significantly influence what kind of gum and mints consumers purchase.
“The Exchange is adding more berry and sour flavors for the second half of 2024,” said Shaw. “Gum products with electrolytes, vitamins and oral-health ingredients are also popular and add functionality for shoppers.”
Retailers are getting creative when adding new products to their candy sections to keep up with the latest innovative items from candy, gum and mint brands and consumers’ demands.
“These categories are always under a microscope and up for review,” said Bortner. “We are continuing to monitor promotional effectiveness, set efficiency and react to the markets’ demand against our programming.”
DRIVING SALES WITH PROMOTIONS
This past year, Rutter’s implemented a new promotion that put the spotlight on confection. “It helped deliver
massive growth on brands that participated and is something we eagerly look forward to building upon in 2025,” said Bortner.
At S&S Petroleum, the convenience store chain is promoting a three-for-one standard-sized and two-for-one share-sized deal.
“However, with share size making up 75% of the sales, it shows where the customer demand really is,” said Jones. “As a result, we are dedicating more space to share size and much less to standard.”
The Exchange is executing aggressive promotions using buy-more-save-more techniques, noted Shaw.
All things considered, retailers must stay on top of the candy, gum and mint trends while offering these products at prices consumers can afford. Keeping these tactics in mind will allow retailers to see even more growth in confection going into the new year. CSD
FAST FACTS:
• Despite declining unit sales, chocolate and non-chocolate dollar sales continue to thrive.
• Chocolate candy reached $3.61 billion in sales, up 0.1%. Non-chocolate candy earned $3.37 billion, a 5.1% increase for the 52 weeks ending July 14, per Circana.
• Consumers are demanding larger pack sizes, new offerings from candy, and new flavors and functionality from gum and mints.
Multiplying the Meat Snack Market
Flavor innovation, an eye on health trends and an array of more affordable meat snack products are paramount for meat snack success.
Emily Boes • Senior Editor
Often associated with convenience stores — after all, 41.8% of meat snack sales occur at c-stores, based on NielsenIQ (NIQ) data — meat snacks have evolved and grown over the years. The category has expanded to include innovative flavors, diverse textures and shapes, and even healthier varieties.
Currently, convenience store operators are following meat snack trends at large to keep the category fresh while adding value for inflation-weary customers.
SALES TRENDS AND PROMOTIONS
Meat snacks reached $4.47 billion in sales across multiple channels including convenience for the past year, according to NIQ. Although relatively steady at a 0.7% dip, this is a slightly quicker regression from the previous year, which only saw a 0.3% dent.
Notably, this is a big difference from the 52 weeks ending Aug. 20, 2022, and Aug. 21, 2021, which saw dollar sales increases by 8.6% and 19%, respectively.
Craveable treats
Meat Snacks See Unit Sales Dips
Meat snack sales declined for the 52 weeks ending Aug. 17 for multiple channels including convenience, while the average price per unit increased 3.5%. Overall grocery dollar sales saw a 1.8% uptick, while unit sales dipped 1.7%.
Source: NIQ scan data for the latest 52 weeks ending Aug. 17, 2024
Unit sales, which amounted to 972 million for the year as of Aug. 17, have been on a downturn since the pandemicera highs of 2021. This year, however, meat snack unit sales dropped at a slower 4% rate than 2023’s 9.2% fall.
This correlates with the average price per unit increasing by only 3.5% for the 52 weeks ending in August compared to the 9.8% jump witnessed in August 2023.
Hopefully, this price increase slowdown will continue, although inflation is still influencing customer purchases and meat snacks’ share of wallet.
“Inflation is absolutely playing a part, as well as just overall spending habits,” said Brenda Elsworth, chief operating officer of Pete’s Convenient Stores, which has 53 stores in Missouri, Oklahoma and Kansas.
Units sold in 2024 at Pete’s are flat (up 1%), but customers are downsizing to more affordable, smaller meat snack products.
Matt Hamory, partner & managing director in the retail group at AlixPartners, noticed the same effect of trading down from more expensive varieties.
At Nouria, which operates 175 c-stores in six states, “inflation has shown a breaking point on bags of jerky. Going over $10 for a bag less than four ounces hurts sales,” said Meghann Eaton, category manager at Nouria.
To help boost meat snack sales, Nouria is running twofer deals with sticks and its private-label jerky.
Pete’s has also been running a two-fer promotion with meat sticks, and it has another promotion for meat snacks ready in Q4.
INNOVATION AND THE HEALTH EFFECT
Like with many categories, innovation is spurring interest in the meat snack segment.
“Sticks are growing faster than jerky,” said Eaton. “(However), in sticks and jerky innovative flavors are showing higher growth while the originals have high volume but are flat.”
Nouria uses Coremark to source its meat snacks, but Eaton works with both local and national brands.
“I recently expanded my stick holding power and grew the whole category planogram to six feet,” she added.
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Meat Sales Decline Slows
Meat snack dollar sales remained relatively flat for the last two years, decreasing more in unit sales. 2023 changed the trajectory of meat snack sales, with unit sales decreasing at a quicker rate from 2022 to 2023 and dollar sales moving from an 8.6% increase in 2022 to a 0.3% dip in 2023.
Source: NIQ Total U.S. xAOC + Convenience scan data for five current scan periods
Pete’s, too, sources its meat snacks from its wholesale company to stock an end cap along with a four-foot section in line above its ambient products.
“This four-foot section and the end cap combination is really helping us maintain and grow in this category,” said Elsworth.
She also revealed meat snacks are pairing well with cheese, according to the chain’s sales.
Many of the options customers are gravitating toward are flavors other than the more typical teriyaki and barbecue, such as spicy options, noted AlixPartners’ Hamory. “Chiles are a big theme.”
Additionally, retailers are seeing more format possibilities, including meat “chips,” as well as more sizes.
The number of retailers offering meat snacks is expanding, too. “Grocery stores are getting much more into this category — whereas it used to be mostly cstores,” continued Hamory.
As c-stores look to stay the designated retailer for meat snacks, however, one of the questions that needs asking is how much the latest health trends should play into their planograms.
Eaton mentioned she has seen products boasting natural or fewer ingredients.
Pete’s tried offering plant-based options, but these didn’t fare well with its market base. “I’m not saying it doesn’t do well in other communities,” Elsworth elaborated, “but in our communities, it was not something our customers preferred.”
On the other hand, Hamory explained that the keto and paleo diets are having a significant impact on meat snack varieties.
For instance, there are more low-carb options for customers looking to avoid sugars found in some traditional flavors. There are also “more varieties of ‘lessprocessed’ snacks like jerkies or air-dried chips, rather than sausages,” he said.
Alternative meats such as chicken and turkey — as well as some fish varieties like salmon jerky — are making an appearance on the meat snack scene.
Hamory is also anticipating the possible effects that GLP-1 and other weight-loss drugs might have on the snacking category. Theories include a reduction in carboriented snacks such as chips and a shift to protein- and fat-based snacks like nuts and meats.
“Whether that overall buoys the meat snack category or just reduces their decline, relatively speaking, remains to be seen,” he said. CSD
FAST FACTS:
• Meat snacks reached $4.47 billion in sales across multiple channels including convenience for the past year, according to NielsenIQ.
• C-store chains are running promotions and offering smaller options to appeal to costconscious consumers.
• Manufacturers are including innovative flavors, new formats and healthier choices in their offerings.
Consumers Prioritize Health, Value in HBA
C-store operators looking to increase health and beauty aid sales need to include items with affordable price points and clean ingredients to meet evolving customer demands.
Howard Riell • Contributing Editor
Convenience store executives working to make tough decisions on what to include in their limited health and beauty aid (HBA) aisles to best drive sales are wise to consider that while American consumers like to look good, feeling good is their top priority.
The numbers make it clear. Health products in the convenience store channel notched sales of $2.7 billion, a gain of 9.1%, for the 52-week period ending July 14, according to Circana. At the same time, beauty items garnered $161.6 million in sales, up a more modest 2.1%.
When it comes to shopping c-stores’ HBA aisles, consumers are speaking with their wallets.
HEALTH TRENDS
Kye Corn, division merchandise manager for the Army & Air Force Exchange Service (AAFES), which operates 233 locations in 45 states, said he is seeing positive trends in clean dermatological products, men’s beauty, and grooming and professional/salon hair care.
“Strong trends are also seen in multicultural hair care products, Korean beauty and skincare, and retinol-based products/serums,” Corn said.
The demand for natural and organic ingredients will continue
to grow as shoppers seek healthier and safer product options, Corn suggested. “Influencer content on platforms such as Instagram will continue to be a driver of beauty trends and brand engagement.”
Leading brands include Olay, Aveeno, CeraVe, Cetaphil, L’Oreal, Shea Moisture, Duke Cannon, Neutrogena and Mielle. “Regular package sizes are the core of the business,” Corn said, “but small sizes and travel/trial sizes are essential for shoppers on lower budgets or looking to try a product for less.”
Other health concerns are also coming to the fore. “Sexual wellness is a massive trend, but more so a category I believe will permanently impact this space,” suggested Nicole Leinbach Hoffman, founder and president of Chicago-based consultancy Retail Minded.
She recommended c-stores stock a wide range of sexual wellness items — from period care to condoms. Indeed, sanitary napkins and tampons have seen an 8% unit sales uptick for the 52 weeks ending July 14, per Circana.
COMPETITION AND TARGETED MARKETING
The competitive forces from adjacent channels remain power-
ful in HBA and should help inform a c-store’s strategy. Chicago-based market research firm Mintel’s report, “US 2023 American Lifestyles: Consumer Recovery & Reset,” showed that a significant portion of health and beauty care sales (80%) occur outside the supermarket channel, with mass merchandisers, drug stores and beauty specialty stores commanding the majority of sales.
“The beauty and personal care market alone is projected to continue growing, albeit at a slower pace, with inflation-adjusted growth expected to be around 1% from 2023 to 2028,” said Mintel spokesperson Alexander Kruczko.
Demographic profiles of HBA customers are expected to have heightened importance next year and beyond.
“In addition to improving personal finances, 60% of consumers are focused on improving their physical health,” Mintel pointed out in the report. “This personal goal is particularly common among baby boomers and Gen-Xers, which is understandable as physical health concerns tend to increase with age.”
At the same time, while improving their physical health is also a top goal for many millennial and Gen Z adults, improving their mental health is just as common of a goal.
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Category Management | Health and Beauty Aids
Customers Prioritize Health Needs
Necessities such as vitamins, sanitary napkins and baby wipes have increased in sales, whereas other items including skin care products and cosmetics are seeing falling sales. However, fragrances are seeing upward momentum, along with hair appliances and cosmetic storage items.
Source: Circana Total U.S. Convenience data for the 52 weeks ending July 14, 2024
Younger adults are highly aware of and concerned about their mental wellbeing and levels of stress.
“There are opportunities for brands to support struggling GenZers by providing ways of managing the stressful areas of their life through relaxation products and stress-reducing product benefits,” Mintel relayed.
GENERIC AND LOCAL ITEMS
“We are seeing new packaging in other retail competitors like mass merchandisers, drug stores and dol-
lar stores,” said Sam Odeh, president of Power Energy Corp., based in Elmhurst, Ill., “which frankly we are getting directly from small distributors in each market and is better than the convenience traditional wholesalers.”
His company has 1,359 sites in nine states, 96 of which are corporately owned under the Power Mart, Power Market and Powmaro’s banners.
“The HBA category is all localized,” Odeh added, “and it is especially the new-era small pharmacies doing a great job by introducing ‘no brand
name’ and non-traditional items. The name brand is losing popularity, and generics driven by price are the cause.”
The response by convenience store operators, he suggested, should be to establish dedicated aisles or a wall section to these newgeneration HBA products.
“Don’t mix them with traditional planograms and in-line displays or end caps,” he said. Odeh likened it to the juxtaposition of local pegged candy and snacks to the major brands. “That is a good illustration of how convenience stores can do more.” CSD
Demand Deepens for Delivery
C-store retailers looking to offer delivery must consider a variety of factors prior to launch, such as potential partners, competition, age-restriction laws and more.
Emily Boes • Senior Editor
Convenience stores are no longer competing only with each other. With expanding foodservice programs, they now vie for customers against quick-service restaurants (QSRs). Meanwhile, technology is also evolving, and some consumers are demanding the convenience of self-checkout, curbside pickup and online ordering.
Delivery, too, is becoming a key growth driver as c-stores look to compete with the QSRs and full-service restaurants, as well as grocery stores, that offer delivery.
FIRST PARTY VS. THIRD PARTY
One of the first decisions a c-store retailer needs to make when launching a delivery service is whether to
implement a first-party delivery program or partner with a third party.
“Dipping our toe into the water, we wanted to leverage existing platforms that consumers already knew and trusted, such as DoorDash, Uber Eats and Grubhub. So we started with third party,” said Rob Falciani, director of marketing at ExtraMile Convenience Stores.
Quality Dairy partnered with Vroom Delivery for its delivery services. In addition to food and other merchandise, the chain offers tobacco and alcohol for delivery.
ExtraMile offers delivery at 700 of its 1,090 stores, which span 11 states, a service that began in early 2021 in part due to the COVID-19 pandemic.
“I think (the pandemic) caused folks to really look at the way to serve their community, and for ExtraMile, that was definitely a catalyst,” he continued.
Par Mar Oil, with 234 stores in six states, also offers third-party delivery services. Through the Lula platform, Par Mar has access to DoorDash, Uber Eats and Grubhub.
Originally, Par Mar tested delivery in 19 stores, and the service performed so well that the chain’s delivery offering has grown to include 80 stores.
“… We only have to deal with (Lula), and that way we get all three (delivery companies) and we did not have to set up all three contracts. It really works well for us,” said Terri Caldwell, director of retail operations at Par Mar.
Lula provided a large amount of data regarding the locations that do
well with each of the three delivery options and where delivery would be most beneficial.
“It’s just us and the Lula reps, and they’re stationed everywhere, and they were excellent at coaching and teaching and putting in the tablets. …” Caldwell said.
In addition to the benefits of thirdparty partners, many c-store chains recognize the advantages to offering proprietary delivery services.
Rutter’s, for instance, with 85 stores in three states, offers delivery — and pickup — directly through its app for a seamless ordering experience. It partnered with Uber, however, for last-mile delivery to ensure speed and reliability.
“At Rutter’s, we decided to take a balanced approach to delivery services. We wanted the best of both worlds: the control and brand experience of a proprietary system and the efficiency and reach of a third-party service,” said Philip Santini, senior director of advertising &
food service at Rutter’s.
The combination allows for convenience while also maintaining customers’ high standards, he continued.
Quality Dairy also took a somewhat hybrid approach to delivery, where their own employees act as drivers, but they use a third-party service.
“The shoppers in the c-store industry don’t typically have exorbitant amounts of expendable income, and we felt that it wasn’t right to offer delivery at a significantly higher cost, essentially pricing out our own customers,” said Michael Wensel, fresh food category manager, Quality Dairy.
Therefore, it partnered with Vroom Delivery specifically because the company only required a minimal price inflation on Quality Dairy’s products.
Quality Dairy operates 26 sites in Michigan, one of which is considered the hub for delivery and reaches many of the areas that the chain covers.
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Bar Trays as Shelf Trays
Metal-sidewall Bar Trays include front and rear anti-skid pads already installed, can be used directly on shelves and can be swapped from bar to shelf as needed.
Vac Pack Meat Tray
Trion’s innovative solution keeps round, oval, loaf and square sliced meats and bologna faced and prevents popout of nested packages.
Oversize / Double-Wide Tray
Two pushers keep large products of any shape forward & optimally faced. Trays can merchandise products from 10 1/ 2" to 17 1/ 2" wide.
Quick Re-Planogramming
Instant lift-out trays speed planogram changes and re-merchandising. Reset up to 48 facings in as little as 15 minutes. Easily create new cross-sells.
Integrated Sign Holder
Horizontal & Vertical Sign holder systems allow easy categorization & promotion of products. Features an alignment bridge insuring consistent presentation across long displays.
Tray Label Holders
Tray Label Holders are available to support drop-in, slide-in, and promo clip bib tag labels. All Holders snap directly to the front of all tray styles and sizes.
Spring Tensions
Six spring tensions and up to three mount positions in Standard Trays allow multiple combinations to fine tune push strength to any package style or product weight.
Product Stops
A range of standard product stops address your every need with special solutions and adaptors for more demanding package sizes and shapes.
Extruded Pusher Paddles
Enhanced functionality with numerous standard pusher paddle sizes up to 6 3/4" tall, dual paddle configurations possible for Oversize and Dual Lane Trays. Imprinted paddles available.
Molded Pusher Paddles
Variety of sizes for all product heights. Features a built-in 2 1/2" x 11/2"recessed label holder. Dual paddle configurations possible for Oversize and Dual. Handles heavier product. Cooler & Freezer capable.
Locking & Non-Locking Pushers
Fits standard size tray with pusher paddle height of 5". Optional locking pusher paddles will not lock without being engaged by user. Cooler & Freezer capable.
Lift-Out Rear Loading
Minimize shrink, radically cut stocking labor, and guarantee freshness and customer satisfaction with easy lift-out trays. Load new stock at the back of the tray to insure proper product rotation.
Sidewall Extenders
Sidewall Extenders quickly snap-on to standard metal sidewalls to create taller lanes, better contain tall or oversize packages, and corral stacked items.
Trays
n Depth: 13" to 24"
n Adjustable width: 1¾" to 17½"
Springs
n Multiple spring/mount locations and dual-spring capability fine-tune push strength
Tray Features
Radius or square
Bar and shelf capable
n Open wire available for shelf placement
n Swap from Shelf to Bar
n Auto feed any product
n Molded pusher paddle available, both locking and non-locking styles
Sign Holders
n Integrated signing capability
n Bridge for seamless long display
Label Holders
n Integrated slide-in, drop-in and promo-clip label holders
Hooks
n Saddle-mount, anti-theft, pusher, plug-in and custom styles
Components
More Ways to Boost Productivity
Each component in Trion’s WonderBar ® Tray and Bar Merchandising System is designed for performance, durability, compatibility and ease of installation. Made from U.S. steel and heavy-duty wire frames, this versatile array of components will be faithfully pushing your products for many productive years to come.
Product Stops
n Integrate anywhere vertically within tray displays gravity feed pouch hooks
Bars
n Lengths: 30," 3' or 4' and custom
n Saddle-mount or plug-in
n Retrofits major systems
n Tool-free installation, threaded mounts available
n Vertical 1" adjustability
n Range of heights and widths
n Specialized designs for round, square and oval tubs; all size bags and pillow packs; gusseted bags; boxes; bottles; clam shells; blister packs; and tall, narrow, small and/or oversize packaging.
n Display & Scan Hooks
n Shelf Works® Shelf Management
n Clear Scan® Label Holder Systems
n Bar & Tray Merchandisers
n Cooler/Freezer Merchandising Systems
n Anti-Theft Fixtures
Trion Industries, Inc.
297 Laird Street, Wilkes-Barre, PA 18702-6997
Phone 570-824-1000 l Fax 570-823-4080
Toll-Free In U.S.A. 800-444-4665 info@triononline.com l www.TrionOnline.com
Tray Features
n Radius or square metal sidewalls
n Bar and shelf capable
n Open wire sidewalls available for shelf placement
n Swap readily from Shelf to Bar as needed
n Auto feed any product
n Molded pusher paddle available, both locking and non-locking styles
Knowing the best items to offer for delivery is key to operating a successful delivery program.
Since many of the chain’s Vroom drivers are Quality Dairy employees, Quality Dairy has a bit more control over its service.
WHAT’S ON OFFER?
Knowing the right products to offer via delivery is also imperative to operating a successful program.
ExtraMile is diligent about the items it offers for delivery, putting forward more fast-casual products. Many of the top sellers in-store are the same as for delivery, such as taquitos and hot dogs.
When Par Mar first offered delivery, it primarily wanted to test its convenience store items. Popular purchases include Gatorade, Red Bull and Reese’s candy. Sundays are popular for milk and bread deliveries.
“If college is in full swing, sometimes Fridays and weekends are bigger (than other days for delivery). … They’ve learned to use it for different reasons,” said Caldwell. For example, some don’t have a car while others prefer not to leave their home or are shut-ins.
Homebound individuals comprise
a large portion of Quality Dairy’s delivery customer base, as well, noted John Cristensen, director of operations for Quality Dairy.
Par Mar, now out of its test field, is adding its Hunt Brothers Pizza program to its delivery services.
Aside from food and general c-store merchandise, c-store chains must consider the opportunity present with including age-restricted items on their delivery programs.
Quality Dairy was one of the first c-stores in Michigan to offer delivery for alcohol and tobacco, including these products at the inception of its
delivery program before COVID-19.
“The state of Michigan requires the delivery service to have employees that are trained on that, and the delivery service has to have their own license approval. So Vroom acquired that regular rollout, (and a few other providers have a license in Michigan now, too),” said Cristensen.
Either tobacco or alcohol is included in almost every delivery sale at Quality Dairy.
For chains with operations in more than one state, it’s important to pay attention to the legality of delivering age-restricted items per state.
“It just depends on the county or the state; like in Ohio, they will let us do the beer and the wine. Different locations do not. It just depends on the state and their regulations, because we have to adhere to all of them,” said Caldwell.
Rutter’s is currently considering offering tobacco and alcohol.
“Our goal is to provide the full range of products our customers expect, all with the convenience of delivery,” said Santini.
ExtraMile began launching delivery at 700 of its stores in part due to the pandemic, starting by partnering with a third party.
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FAST FACTS:
• C-store retailers need to decide whether first-party or third-party is right for them when launching a delivery service, in addition to considering agerestricted items, various technologies and menu offerings.
• Training and diligent communication with both employees and customers is important.
INCORPORATING TECHNOLOGY
Another aspect to consider when launching delivery is how technology will be involved in operations.
For instance, c-store retailers must decide how to handle inventory management.
“At Rutter’s, we leverage advanced technology to manage inventory for delivery orders efficiently. Our inventory management system is integrated with our ordering platform, ensuring real-time updates on product availability. This helps prevent out-of-stock situations and ensures that customers can only order items that are currently available,” said Santini.
For Par Mar, delivery orders coming through the tablet still must go through its register system just as an order from a customer instore would. These orders then go through Par Mar’s PDI back-office system, which tracks inventory.
Par Mar also has a Lula back-office system, which shows the most popular items in each area.
At Quality Dairy, with Vroom incorporated into its own existing in-
ventory management system, once delivery orders are sold, inventory is automatically adjusted.
ExtraMile stores control their inventory through a tablet. “If they know they don’t have Snickers on hand, they can go ahead and 86 that item for a period of time, whether it’s two weeks, an hour. It allows them flexibility,” said Falciani.
Additionally, Falciani noted version two of ExtraMile’s delivery platform may include providing the ability for customers to gain rewards points on delivery purchases, likely at the same time customers can go directly to ExtraMile Rewards or the chain’s website for delivery purchases.
OVERALL OUTLOOK
“I would definitely start with more items,” Caldwell advised. “We started with fewer items. But when we started reviewing other competition and other areas, you definitely want to have as many items (as possible). … Variety is always the key.”
C-stores should also keep training in mind, she noted. Communication
with employees and customers is crucial to success.
“You have to make sure everybody’s on board with the process, looking at the tablet, testing it to make sure it is turned up,” she said. Looking ahead, Wensel believes delivery capabilities will be added to more Quality Dairy stores, including potential new builds, depending on the location.
And down the line, he thinks delivery companies will be working in tandem with packaging companies to better bypass the barrier packaging can be to safe delivery.
“That’s going to make delivery blow up even more, because once that barrier is gone, now you’re able to get hot food that feels like it just came out of the oven, and it sat in the car for 20 minutes,” he said.
“Over the next decade, delivery services will be pivotal in transforming convenience stores into true foodservice destinations,” Santini added. “Technology will enable more personalized and efficient delivery experiences, blurring the line between c-stores and QSRs.” CSD
ExtraMile offers more fast-casual products for delivery, with top sellers including taquitos and hot dogs.
SETS UP FAST PAYS OFF FASTER
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5 Tips for ImprovingC-Store Coffee Sales
With a variety of coffee options becoming a must-have in c-stores, retailers are sprucing up their coffee bars to captivate consumers and keep sales growing.
Zhane Isom • Associate Editor
Aside from fueling up at the pump in the morning, consumers are also looking for a c-store that can provide them with a plethora of wellmade, high-quality coffee options. Coffee is a significant part of most c-store beverage offerings, especially in the morning, as more consumers seek that boost of energy to get their day started.
Eighty-four percent of American coffee drinkers have their brews with breakfast, while 35% have coffee in the mid-morning, 17% with lunch, 22% in the afternoon, 7% during dinner and 10% in the evening, according to the National Coffee Association’s (NCA’s) “Spring 2024 National Coffee Data Trends” report.
To keep coffee customers engaged, satisfied and returning for more, and to ensure dollar sales keep ticking upward, convenience store retailers are continuing to make changes to their coffee areas. Here are five tips from convenience store operators and experts that have helped them to see growth in coffee sales.
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when a coffee to go becomes an experience that stays.
Research indicates that 75% of consumers have tried self-service beverages like coffee and intend to do so again, while 64% believe that convenience store coffee matches the quality of café coffee. People rely on convenience stores for coffee and specialty drinks, making a great self-service coffee program crucial as channels blur and consumers expect high-quality coffee wherever they go. Does your coffee program meet consumer expectations?
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Kwik Trip installed bean-to-cup coffee at all of its stores and still offers drip coffee for customers who are in a hurry. The chain also offers limitedtime-offer cappuccino flavors.
1.) IMPLEMENTING/IMPROVING BEAN-TO-CUP OFFERINGS
Bean-to-cup coffee continues to be one of the top choices consumers seek out when purchasing coffee at a c-store. Over the years, retailers have been making sure they have updated equipment and have begun to use high-quality coffee beans to ensure great-tasting coffee with each cup purchased.
“We installed bean-to-cup in all of our stores in 2023 and 2024,” said Paul Servais, vice president of food service at Kwik Trip, operator of 850plus stores across six states. “The goal of this is to provide our guests with a fresh cup of coffee every time they visit.”
Servais also mentioned that Kwik Trip will be adding Highlander Grogg coffee to its bean-to-cup offerings at all c-stores this fall.
At Cliff’s Local Market, operator of 21 c-stores in New York, Derek Thurston, director of food service operations, is adding more coffee flavors to Cliff’s bean-to-cup section.
“We work with a local roaster (Utica Coffee), and through this partnership, we offer a new limited-timeoffer (LTO) coffee flavor every two
months,” he said. “We (finished) our Neapolitan Dreams, our featured flavor in July and August.”
The c-store chain transitioned to Utica Coffee’s The Great Pumpkin in September and October, followed by the LTO Mint Chip in November and December.
2.) PROVIDING DIFFERENT COFFEE FLAVORS/SWEETENERS
The holiday season is near, so more consumers are seeking seasonal coffee flavors and creamers to help get them into the holiday spirit. The different flavors also allow consumers to make their coffee in a way that fits their cravings and lifestyle.
“Our Coffee Trends Report found that 52% of coffee drinkers in the U.S. like to add sweeteners or syrup, and 63% add milk, a creamer or a milk alternative,” said William Murray, president and CEO of the NCA. “It’s important for convenience store retailers to make coffees customizable to suit individual tastes.”
LTO cappuccino flavors at Kwik Trip continue to do well, according to Servais. “Blueberry Lavender in the summer, Pumpkin Spice in the fall, Peppermint around Christmas and Crème Brûlée in the winter,” he said.
Cliff’s Local Markets is always on top of ensuring its flavor enhancers are fresh and exciting. The c-store chain offers flavored creamers along with flavor shots in multiple varieties.
In the spring, Cliff’s offers an Eggo Waffle with Maple Syrup creamer that coincides with New York State’s maple-producing season. In the fall, Cliff’s provides Pumpkin Spice creamer. It offers Frosted Sugar Cookie creamer during the holidays.
“We encourage our customers to use our flavor enhancers to create coffeehouse-style drinks at a much more affordable price point,” said Thurston. “This fall, our stores have
point-of-purchase displays to show how customers can make a pumpkin latte using our various creamers and flavor shots.”
“The wonderful thing about coffee is that there’s something for everyone — it’s popular across all age groups, venues and regions — that’s why it remains America’s favorite beverage,” said Murray. “The key thing retailers need to offer is a wide variety of coffee types for customers.”
3.) OFFERING DEALS, COUPONS AND PROMOTIONS
Inflation is not only affecting snacks, candy and food; it has also made its way into the coffee segment. To keep sales rising, retailers have seen a massive impact in offering coupons and deals for coffee.
Cliff’s, for instance, provides its customers with monthly coupons for coffee. With the coupons, customers can get coffee at a discount or a free coffee.
“We want customers to come in and get high-quality, great-tasting coffee at a discounted price and build habitual behavior and repeat visits by encouraging customers to stop in and get a deal,” Thurston explained.
Along with the coupons, Cliff’s offers combo deals that usually include a medium-sized coffee and a breakfast sandwich.
and a medium coffee for $4.99,” Thurston continued. “We promote these deals with point-of-purchase displays at the coffee bar and graband-go sandwich area.”
Promotions, too, play a massive role in how Cliff’s keeps its coffee sales climbing. The c-store does collaborative social media posts with Utica Coffee and advertises on radio, local magazines and billboards, along with donating coffee to local charities, schools and events.
“Many times, we will set up and engage with our customers while offering them free coffee,” said Thurston. “We recently donated over 500 cups of coffee to Utica Heart Walk and Run. We love to connect with the local communities in which our stores operate.”
4.) FOCUSING ON COLD-BREW AND NITRO COFFEE
Nitro and regular cold-brew coffee are making their way into c-store coffee bars due to high demand.
Based on NCA’s “Spring 2024 National Coffee Data Trends” report consumers enjoy cold-brew coffee for a variety of reasons, including that cold brew can make a wide variety of beverages (48%), drinking cold brew is a cool/trending thing to do (48%) and because cold brew is easy to make at home (41%).
5.) EMPHASIZING FRESHNESS AND CONVENIENCE
Last but not least, c-store retailers prioritize the freshness of their coffee and make sure consumers get it in a timely manner.
“Because consumers have many choices for their out-of-home coffee, one of the most important things that drives a coffee program is the freshness of the coffee itself,” said Murray. “Consumers have become more sophisticated in their coffee tastes in recent years; more are drinking specialty coffee than ever before, and ensuring that your customers are getting a fresh cup of coffee is absolutely crucial.”
“We currently offer a croissant breakfast sandwich with a medium coffee for $4.59, and we offer a breakfast combo with our waffle breakfast sandwiches
“Beverages like cold brew have also seen a phenomenal rise in popularity lately, having been virtually unheard of 15 years ago, which illustrates the importance of keeping up with the latest trends and ensuring they are readily available for your customers,” said Murray, “It’s an exciting time for the coffee industry, and it’s evolving and innovating more rapidly than ever before while adding $343 billion to the economy annually.”
Kwik Trip plans to add more flavors in its stores in 2025 to keep up with the cold-brew coffee trend.
Kwik Trip still offers drip coffee in shuttles 24 hours a day for those customers who are in a hurry and don’t have the time to wait for beanto-cup coffee.
Cliff’s ensures that its coffee is always hot and fresh by recording and tracking hold times and discarding coffee as needed.
“By utilizing our Food Service Daily Experience Checklist, we ensure our coffee bars are ready to go for the morning customer rush by ensuring everything is fully stocked and there is ample space available for our customers to create their own coffee concoctions,” said Thurston. CSD
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HOW C-STORES CAN MEET THE DEMAND FOR HEALTHIER MENUS
Offering high-quality, fresh and healthier food options can satisfy diverse customer preferences and build brand loyalty. Simple changes can make the shift easier for operators.
Bruce Reinstein • Kinetic12 Consulting
As customer preferences continue to evolve, highquality, healthy foodservice options are becoming essential additions to convenience store menus.
Contrary to some stereotypes, healthy food does not have to taste bad. However, adding healthier menu items “because you have to” is the ticket to poorquality products, and it tells the customer you don’t truly care about what they want. Instead, savvy c-stores succeed by identifying small changes they can make to nudge some of their menu options in a healthier direction. Keep in mind that for customers seeking healthier options, quality tends to be more important than quantity. Providing fresh food items, whenever possible, increases a c-store’s opportunity to promote healthier fare. Offering fresh fruits and vegetables as well as salads with healthier dressing options is a great place to start. If you are providing indulgent options, you can also include healthier alternatives to favorite items. Most consumers land somewhere in the middle of the health-conscious spectrum. If four people stop at a convenience store for a meal, in many cases, their diets will vary. Being able to satisfy everyone will lead to greater loyalty to your brand.
Here are six elements to consider when introducing high-quality and healthier options in c-store foodservice.
1. Customers define “healthier” differently. Defining “healthier” is quite personal to each consumer. When adding healthier options to a menu or grab-and-go case, it is essential to not judge what healthier looks like based on your personal definition. Consumers may look at healthier based on a medical condition they have, which could require lower sodium, low sugar, low fat and more. For another shopper healthier may be strictly about total calories or general nutritional numbers. It also may be simply about a “better for you” mindset, which includes natural or organic ingredients or products with functional benefits. The key is to provide options that appeal to the masses who are looking for healthier alternatives.
2. Healthier doesn’t need to be complicated. Keep it simple. There is a tendency to overthink the concept of healthier food, but it can be quite simple. It starts with fresh fruits and vegetables. Next, look at the coffee bar and remember that not everyone wants cream and sugar in their coffee. Provide other dairy and dairy-free options and sweeteners.
Now consider small changes that are easy to integrate into your foodservice operation without any heavy lift-
ing. This could be sugar-free syrup for French toast sticks or low-fat and fat-free dressing for salads.
We know there are many consumers who want indulgent products, but it is crucial to offer products for those seeking the opposite. Keeping it simple will drive new revenue and, more importantly, keep customers coming back. When in doubt about what to do when it comes to healthier, be practical and don’t overthink the task.
3. It’s important to do what you do well, while providing healthier alternatives to standard offerings. Operators know what they do well when it comes to foodservice. Their customers come back for those items on a regular basis. It clearly shows in the sale of products and customer feedback. Many of those products may not be the healthiest of products, but your customers may be looking for a healthier version. This does not mean that you have to reinvent your signature products, but rather, with a few small tweaks, you can have an alternative option that appeals to health-conscious shoppers. This does not necessarily mean the item will be healthy, but it can appeal to those seeking a healthier option. For example, wheat or multigrain rolls, pizza crust or tortillas are healthier than those made with white flour. Breakfast sandwiches can be reinvented using turkey bacon. Offering burritos in a bowl or a burger in a lettuce wrap may not be as good as the original, but they can satisfy the consumer who wants a healthier version of what you do well.
4. Customization matters. Let the customer build their version of healthy. The easiest way to satisfy a customer’s desire for being healthier is to let them make the decision on how they want to build their meal or snack. This can be done with minimal work on the operator’s side. Breakfast sandwiches are a great example of where a customer can build their meal with egg whites, a multigrain English muffin, turkey bacon, spinach and more, instead of traditional ingredients. A sandwich can start with various bread or wrap options and be built with meats, cheeses or just vegetables. The opportunities are endless. Small changes, such as switching from mayonnaise to
mustard, can have a great bearing on the overall health of the finished product. Offering items in bowls instead of wraps is also an easy way for a consumer to eat healthier with minimal changes for the operator.
5. Supplier partners are a key resource when it comes to sourcing healthier ingredients and products. An operator’s supplier partners are constantly developing new items that can have an impact on creating healthier alternatives in a foodservice operation. Not only do they have the products, but also the culinary innovation team to support operators with how to use these products. There are some incredibly innovative flavorful ingredients available that, for example, could be incorporated into yogurt (as opposed to mayonnaise) and spread on a sandwich. That same ingredient could be added to other base ingredients and used on a salad or pizza. The bottom line is that healthier food needs to taste good, and it can without a lot of effort. Take advantage of the knowledge your suppliers provide.
6. Engaging with customers can give you insights into what they most want when it comes to healthy food. There is no better way to understand the types of healthier options an operator needs to make available than to engage with current and potential customers. It is also crucial to see what other foodservice operators in the c-store space are doing to satisfy consumer requirements in this area. Avoid throwing darts at the wall and hoping something sticks. Consumers know what they want, and they have a tremendous desire to work with you to get it right. When you engage the consumer, it drives greater loyalty. Healthier options are only going to become more important in the growth of convenience store foodservice, so take the time to integrate them into your menu as you grow your foodservice presence.
Bruce Reinstein is a partner with Kinetic12 Consulting, a Chicago-based foodservice and general management consulting firm. The firm works with leading foodservice operators, suppliers and organizations on customized strategic initiatives, as well as guiding multiple collaborative forums and best-practice projects. Learn more at Kinetic12.com or contact him at Bruce@Kinetic12.com.
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CONVENIENCE STORES’ SANDWICH POTENTIAL
C-stores can gain insights from the broader food industry on how to elevate their sandwich programs to best compete in today’s environment where innovation, freshness and quality reign.
Tim Powell • Foodservice IP
Convenience stores have made significant strides in their foodservice offerings, moving beyond the stereotypical day-old roller dogs and heated coffee to become serious contenders in the grab-and-go meal sector.
The evolution of c-store foodservice reflects broader trends across the food industry, driven by consumer demand for quick, convenient and innovative meal options. As we look toward the future, it is crucial for c-stores to learn from other foodservice segments, adapting and innovating to meet ever-changing consumer expectations.
Foodservice IP recently completed a comprehensive study on sandwiches in overall foodservice, and what follows are some of the findings and implications for c-store operators.
CONSUMER DEMAND AND INDUSTRY TRENDS
The demand for quick and convenient meals is on the rise, with consumers increasingly gravitating toward grab-and-go and freshly prepared handheld options. This trend is evident across various food industry channels — from fast food to supermarket delis — and c-stores are no exception. The ongoing “chicken sandwich war” among major fast food chains highlights the competitive nature of this market segment. Driven by inflation and a consumer preference for new takes on classic offerings, fast food chains are battling to win over customers with innovative chicken sandwich offerings.
Plant-based options continue to grow in popularity, as consumers seek healthier or more environmentally conscious choices. Additionally, the push to speed up service has led to innovations such as Subway’s shift toward new signature sandwiches, which are quicker to prepare than build-your-own options.
CATERING TO CHANGING PREFERENCES
Beyond quick service, there is a renewed focus on workplace catering. Chains like Wawa are expanding their reach by offering popular items such as Sizzli sandwiches and hoagies through platforms like ezCater. McAlister’s Deli is also revamping its breakfast program, introducing sandwich boxes and customizable bar concepts like build-your-own avocado toast, reflecting a trend toward more personalized and premium offerings.
Ingredient innovation is another key area of focus. Chains like Papa John’s and Panera are introducing new sandwich formats and bread options to capture consumer interest. The rise of premium-focused growth chains like Ike’s Love & Sandwiches, which offer unexpected flavor combinations, demonstrates the potential for c-stores to attract a broader audience by experimenting with bold, on-trend ingredients.
KEY FINDINGS FROM FOODSERVICE IP’S RESEARCH
Recent research by Foodservice IP sheds light on the significant market for sandwiches, estimated at $196
billion in consumer purchases. Burgers and hot sandwiches, including chicken sandwiches, account for nearly half of this total. The category is expected to grow at a nominal rate of 3.5% through 2027, with overall foodservice growth expected to keep pace.
Consumers prioritize several factors when choosing a sandwich, with price-based value and cravings being top considerations. Fast service is also crucial, with 67% of consumers citing it as an important influence in their decision making. Menu boards are highly influential, often more so than special offers or discounts, in swaying consumers to try new sandwiches.
consumers looking for something different. This approach has already proven successful in the burger segment, where alternative proteins like vegetarian options and bold ethnic flavors have gained traction.
C-stores, along with restaurants and supermarket delis, attract strong patronage for sandwiches, benefiting from the convenience they offer. However, while consumers associate several factors with sandwich quality, they aren’t broadly willing to pay more for these qualities. Key factors that can command higher prices include meat quality, fresh preparation upon order and freshness of ingredients.
Combo meals remain a vital aspect of the foodservice value equation. Only 19% of consumers typically purchase just a sandwich; most prefer a sandwich, side and beverage combo. Operators face ongoing challenges, particularly rising costs and labor shortages, which are more pronounced in non-restaurant segments like c-stores. Despite these challenges, a majority of operators raised sandwich prices in 2023 and expect further increases in 2024.
IMPLICATIONS FOR C-STORE OPERATORS
To remain competitive, c-store operators must focus on ingredient quality and variety while addressing operational challenges such as labor shortages and cost pressures. The trend toward bolder flavor profiles and alternative proteins offers a clear path forward. For example, introducing breakfast sandwiches with unique protein options or bold flavors can cater to health-conscious
Operators in non-commercial segments often lack the space and staff resources of larger chains. To compete, many are turning to micromarkets or grab-and-go counters in satellite locations. In these settings, frozen and fresh manufacturer products offer potential, allowing operators to maintain variety without the associated waste and labor costs.
Manufacturers can add value by creating frozen prepared sandwich programs that complement operators’ existing offerings. Such programs can help operators manage shrinkage and provide a wider variety of options to consumers, including allergenor gluten-free offerings and bold, ethnic flavors.
While consumers rate price, quality and taste as top priorities, there is a growing interest in healthconscious options. The concept of “healthy eating” has evolved, with consumers increasingly seeking out natural, organic and nutrient-dense foods. Cstores can capitalize on this trend by highlighting the health benefits of their offerings, such as highprotein options or clean ingredient lists.
In conclusion, c-stores have a significant opportunity to grow their foodservice offerings by learning from other segments of the food industry. By focusing on quality, variety and innovation, c-stores can meet the evolving needs of consumers and continue to expand their share of the foodservice market.
Tim Powell is a principal with Foodservice IP, a researchbased consulting firm based in Chicago. For more information contact Tim Powell (tpowell@foodserviceip.com) or visit Foodserviceip.com.
Financing the Future
As c-store chains look to participate in the active merger and acquisition landscape, they must have a secure financial plan and growth strategy.
Emily Boes • Senior Editor
It comes as no surprise to convenience store retailers anymore to see news regarding an acquisition in the industry. Mergers and acquisitions (M&A) are on the rise, and each time, retailers must consider if and how they affect their own business, as well as where they see their chain years down the line.
C-store operators in it for the long haul need a sound financial strategy to accomplish their goals, be they new builds, upgrades or acquiring existing locations.
EVALUATING ROI
There’s no point to initializing an upgrade, acquisition or new build, however, without first evaluating the return on investment (ROI) — a factor largely influenced by location.
“Evaluating a remodel can be a crap shoot unless you know you already have a successfully profitable store with an A location; then it is obvious that increasing the size of the store, and the products and offerings, will generate additional cash flow,” said Terry Monroe, president
and founder of American Business Brokers & Advisors.
In these situations, he continued, it’s clear that the retailer should move forward with the building expansion or updating the store.
“The trickier part comes when you have a good store, and you are wanting to create a great store. In those situations, you should look at your location first. Was it an A location in the beginning and now it has declined to a B location? If that is the case, all the expansion and
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remodeling won’t make a difference because the location has diminished in its quality,” Monroe said.
Of course, evaluating the location aligns with evaluating market conditions and brand identity.
Global Partners LP, with 1,700 stores — over 370 of which are company owned — in nine states, is no stranger to financing growth. The company’s umbrella encompasses a number of banners, including Alltown Fresh, Honey Farms, XtraMart and more.
“When considering new investments or upgrades, we carefully analyze financial data and market conditions to make sure they fit with our growth plans,” said Reid Lamberty, senior communications advisor, Global Partners.
Global Partners has financed many acquisitions and upgrades in order to develop its brands and improve its operations.
One of its most recent endeavors, in fact, occurred last year when Global Partners acquired 64 Houston-area stores in a joint venture with Exxon and rebranded them under its Honey Farms banner.
However, strategies are allowed to change with time, fresh data and new perspectives.
“For example, we’re focusing on a few key brands, with Alltown Fresh being our main one, as it approaches its fifth anniversary. We’ve recently realigned our strategy to better support this brand and improve overall effectiveness,” said Lamberty.
A prominent factor to take into account when considering financing new builds is the rising cost of labor and supplies.
With this, Monroe noted, the store has to generate more income to account for the store’s increased breakeven dollar amount.
“… With interest being higher now than it was several years ago, you are taking a bigger risk building a new store, which is why it is generally a better deal to acquire an operating convenience store and remodel and improve it rather than build a new store,” he continued.
Recently, Global Partners has realigned its strategy to better support Alltown Fresh and improve overall effectiveness.
SECURING FINANCING
Global Partners plans to expand into new markets, optimize locations and enhance its brand portfolio through strategic acquisitions and operational improvements.
Typically, c-stores finance these growth efforts through a mix of loans, investments and partnerships, noted Lamberty.
Small and medium-sized chains, though, are likely to use regional and local banks for financing purposes.
“I have owners with 50-plus stores, and this is the only kind of financing they use,” said Monroe. “Generally, if an owner/operator has been in business for a considerable amount of time they will have a relationship with a local bank and will use them.”
Still, some retailers may have to occasionally leave their area to see a regional lender or larger bank.
Smaller operators face unique challenges when securing financing.
For example, a small local retailer looking to acquire a 10-store chain, even if they have a relationship with
the bank, is restricted on how much money they can borrow from said local or community bank.
They may have to acquire only two or three stores at a time.
And for c-store retailers in general, most bankers, according to Monroe, don’t understand the convenience store business.
“I have owners of 25-plus stores get a call from their banker saying they cannot believe how far down their sales are over the previous year even though they were highly profitable, because the banker was looking at gross sales and did not understand the reason the sales were down was because the price of gasoline went down. The store was just as profitable as last year and maybe more profitable, but the price of gasoline had dropped,” he continued.
He advised c-store retailers to secure a banker familiar with the industry who understands the fuel business and stay with them in the long term. CSD
FAST FACTS:
• C-stores must consider location, market dynamics and financial data to establish the return on investment before proceeding with a new build, acquisition or upgrade.
• Acquiring another store is typically more financially stable than building a new store.
• Smaller c-store chains are likely to use a local bank to finance growth, although they should establish a relationship with a banker knowledgeable about the fuel business.
Last year, in one of its most recent endeavors, Global Partners acquired 64 Houston-area stores in a joint venture with Exxon and rebranded them under its Honey Farms banner.
Top C-Store Loyalty Innovators
CStore Decisions, in collaboration with NexChapter, honors two standout c-store chains for innovative loyalty program updates, reflecting the industry’s growing emphasis on technology and personalization.
Erin Del Conte • Editor-in-Chief
In today’s competitive environment having an effective loyalty program is essential for convenience stores. As technology continues to advance, more chains are upgrading their rewards program, enhancing their mobile app capabilities, integrating data and paving the way for more personalization for shoppers.
Each year, CStore Decisions looks at loyalty program launches, relaunches, upgrades and enhancements in the c-store industry over the past year and recognizes two chains standing out for their loyalty offerings.
To determine this year’s loyalty award winners, CStore Decisions partnered with NexChapter, a c-store advisory firm that helps retailers drive business growth by tapping into digital capabilities.
WINNER: RACETRAC
RaceTrac launched an upgrade to its popular RaceTrac Rewards app in May, which includes a completely redesigned app with a modern look and improved functionality. The loyalty experience for customers is both frictionless and personalized. For all this and more, CStore Decisions and NexChapter are recognizing RaceTrac as a 2024 Loyalty Program Awards winner.
“The RaceTrac team invested their time and talent into building a program that is based on feedback from their guests and team members,” pointed out Mike Templeton, VP of digital strategy for NexChapter. “When you’re in the customer service business, making the customer voice the priority is critically important.”
He noted that as customers scroll and swipe through the app, they’ll see every screen has been built around the RaceTrac brand.
“It’s in the language they use and the visuals they present. The app is a natural extension of what RaceTrac is to guests in real life,” Templeton said. “The special attention paid to app navigation — from initial onboarding to highlighting priority features — shows that the team has been attentive to the details as well. Every guest can easily find their (way) as they’re tapping through the app.”
The new app enables faster signup and points redemption and makes it easier for customers to understand the offers available to them from auto-applied coupons to personalized promotions, noted Lanna O’Connor, director, loyalty & digital marketing, RaceTrac Inc., which operates over 800 RaceTrac and RaceWay locations in 13 states.
“We’ve also enabled contextual experiences based on who you are and how you engage with RaceTrac. Your experience will vary whether you’re an auto driver, professional driver or electric vehicle (EV) charger,” O’Connor explained. “We’ve also added identity verification powered by ID.me that will allow us to easily extend special offers to community groups like teachers, nurses, first responders and active military or veterans.”
Professional drivers who are loyalty members, for example, will be able to take advantage of a soonto-be-released Route Planner, while
EV drivers will be able to scan and pay for EV charging at RaceTrac locations that feature EV.
TIER-BASED APPROACH
The core of the RaceTrac Rewards program remains the same.
“Our TracFanatics will continue to earn points for free stuff and fuel discounts when they shop and fuel
at RaceTrac,” O’Connor said. Customers earn four points for every dollar they spend on qualifying products and one point for every gallon of fuel purchased.
Plus, the more members engage with the program, they begin to unlock new tiers. For example, once they reach 500 tier points, they can get a free dispensed beverage monthly, and when they hit 3,500 tier points, they can receive a free dispensed beverage daily.
“For RaceTrac, this tiered approach boosts engagement as members strive to reach the top tier while providing a compelling benefit to members and program ‘badge of honor’ that they’re excited to reach and maintain,” O’Connor said.
Templeton concurred that the tiered-benefit system helps the program stand out.
“This motivates guests to keep collecting points so that they earn incremental value for consolidating their purchases,” he said.
Another feature of note is the paid VIP membership, where guests can pay $2.49 per month for guaranteed fuel savings on each gallon of gas they purchase, Templeton pointed out. “Consumers can quickly do the math to see the savings outweigh the costs, plus RaceTrac wins by gaining a larger share of their members’ fuel trips,” he said. “Lastly, I like how RaceTrac has incorporated zero-party data insights right within their app. Members can identify things like their favorite food or merchandise categories, enabling RaceTrac to serve up a more personalized experience to guests over time.”
TIME FOR A REFRESH
RaceTrac first designed its core loyalty program in-house and rolled it out in 2016. In February 2021, it migrated to Punchh, keeping its existing program to avoid
disruptions to the guest experience. PAR Technology acquired Punchh in April 2021. Par Punchh represents the integration of Punchh’s loyalty platform with Par’s broader technology solutions.
O’Connor noted that there are challenges with migrating an existing loyalty program to a new platform, including custom development requirements.
“Maintaining a consistent guest experience was a key driver during that migration,” O’Connor explained. “Punchh is our current loyalty backend that maintains the program infrastructure. Our app is a fully custom build (program) that leverages Punchh’s loyalty platform but also includes custom functionality and integrations built in-house.”
The partnership gave RaceTrac more visibility into its member base and user behavior.
“(It) empowered our business teams to be nimbler with loyalty marketing via email, push and SMS (short message service), which had posed challenges with our previous homegrown loyalty solution,” O’Connor added.
RaceTrac felt an app refresh in 2024 was key for continuing to best serve its customers, as a lot had evolved over the past several years. For one, RaceTrac’s rewards program had experienced substantial growth. In February, Par Punchh noted that RaceTrac’s loyalty program saw a 46% year-over-year increase in loyalty transactions and a 76% yearover-year rise in loyalty revenue in 2023. What’s more, the chain had expanded into new markets and store types, which had changed its user base and what they needed from RaceTrac’s rewards program and its app.
“From commuters and road-trippers to professional drivers and EVenthusiasts, we’ve enabled the new RaceTrac app to cater to the unique needs of each and position us to
be nimble so we can address new features and requirements as needs change,” O’Connor said.
APP FEATURES
The upgraded app was rebuilt from the ground up to include a new look, faster speeds — including quicker loading times — and new features, which help enable speedy transactions and a streamlined instore experience. The improved navigation aims to make the user experience frictionless. As customers earn points, they are automatically tracked in the app; customers can now easily identify the available reward points on the home screen that they can redeem for free items and discounts on fuel.
The upgraded app includes a new “Scan & Pay” feature that replaces the former “Checkout” button, which allows for quick loyalty recognition and the use of contactless payment via RaceTrac gift cards. The app also includes a redesigned FAQ (frequently asked questions) tab as well as a new chat feature and enhanced purchase history. The app’s redesigned store location finder lets users “favorite” their most visited stores for easy access and special offers. Plus, they have the option to place a mobile order for pickup.
To incentivize customers to use the app and rewards program, RaceTrac offers a wide range of auto-applied coupons that are available to its loyalty members each month.
“Loyalty promotion approaches vary across the industry, with many retailers taking different points of view,” Templeton said. “Rather than presenting single-use coupon barcodes or offers that require loyalty activation, RaceTrac has gone completely frictionless by enabling every loyalty coupon to be applied automatically for members. This dedication to speed and convenience is sure to be a hit with their guests.”
RaceTrac also provides personal-
ized offers and promotions, such as its summer “Thank You Days” campaign.
“Summer Thank You Days is a summer-long surprise and delight campaign offering free drinks, snacks and treats throughout the summer that’s enabled via the promo code ‘SUNNYDAYS’ in the app,” O’Connor said.
RaceTrac has been acquiring 30% more new members per month since the new app launched, and daily active app users have increased 54%, O’Connor said.
As RaceTrac continues to serve its diverse customer base through its upgraded RaceTrac Rewards app, it’s zeroing in on data management to best meet evolving customer needs.
“We have a lot of data at our fingertips,” O’Connor stated. “Based on the objective, we’re able to get very granular in how we segment and communicate to our guests. Visit patterns, spend, user type, transactional behaviors and more play into all of our targeted marketing decisions.”
WINNER: JACKSONS FOOD STORES
Jacksons Food Stores recently partnered with Bounteous x Accolite and PAR Punchh to revamp its Let’s Go Rewards Program, introducing a new customer experience platform that includes a next-generation mobile app and web integrations. Its new digital-first approach to loyalty is providing a seamless and personalized experience for customers. For all this and more CStore Decisions and NexChapter are recognizing Jacksons as a 2024 Loyalty Program Awards winner.
The new platform’s wide-scale rollout launched on April 24 at the chain’s over 300 company-operated Jacksons Food Stores and ExtraMile by Jacksons convenience stores in Idaho, Nevada, Oregon, Washington, Arizona, California and Utah.
While the primary changes to the program included the transition to a new platform and new partners — PAR Punchh is powering the loyalty program, while Bounteous x Accolite manages the web app and third-party service integrations
Jacksons took a new digital-first approach to loyalty, transitioning from a card-based program. Customers can engage with the new loyalty program via the web app, mobile app or entering a phone number at the pin pad.
— the most significant shift the program saw is the transition from a card-based loyalty program to a digital-first approach, noted Kristin Sword, loyalty and e-commerce manager for Jacksons.
By transitioning to a digital-first platform, Jacksons now has greater control and flexibility and can better meet its customers’ ever-changing needs, while the collaboration with its partners is helping the chain create a seamless and more personalized experience across all digital touch points.
Jacksons is also meeting custom-
ers where they are by launching a hybrid app that allows their shoppers to engage with the program in the way that works best for them, whether that’s via the web app, downloading the mobile app or entering a phone number at the pin pad. Jacksons has found this level of flexibility to be crucial in today’s digital environment, where convenience and personalization are among the top customer demands.
“Jacksons tackled its entire digital experience with this latest refresh of Let’s Go Rewards,” said Templeton. “The app is certainly the primary
focus, but the Jacksons website is still a full-featured option for those who may be hesitant to download another app. This ensures the Jacksons team doesn’t miss any opportunity to connect with their customers. Many brands may forgo their website to go all-in on an app; this shows how powerfully the two can work in tandem.”
A PERSONALIZED EXPERIENCE
“The primary motivation behind refreshing our loyalty program was to better align with the evolving expectations of our customers and the digital landscape,” explained Todd Michael, SVP, merchandising & marketing, Jacksons. “We recognized that a traditional card-based
loyalty program was limiting our ability to engage with our customers in a personalized and dynamic way. As consumer behaviors and preferences shift more toward digital and mobile interactions, we knew it was essential to modernize our approach to stay relevant and competitive.”
Jacksons also saw the growing importance of data-driven marketing and recognized the need for a platform that would give it the visibility and dexterity needed to create more personalized user experiences. To that end, Jacksons now benefits from an enhanced segmentation tool that allows it to tailor offers to specific customer groups.
“This targeted strategy ensures that our customers receive offers
that truly resonate with their shopping habits and preferences, leading to higher engagement and satisfaction,” Michael said.
“With the new digital-first platform, we can now build and deploy offers in real time, automate personalized offer distribution and gain deeper insights into how customers are interacting with our program,” Michael added.
This ability to create and send offers in real time has been a “game changer,” Sword said, allowing Jacksons to react swiftly to market trends, customer preferences or unforeseen events.
“We no longer have to rely on a one-size-fits-all approach. Instead, we have better visibility into how
LEVEL UP YOUR LOYALTY PROGRAM
Mike Templeton, VP of digital strategy at NexChapter, shared the following advice for those considering launching a loyalty program or revamping an existing offering.
1.) Clarify your program’s unique value proposition. Ensure that customers will have a clear understanding of what you are offering and why you’re different. Consumer loyalty program memberships continue to grow year over year. Brands must fight to become a primary program for their customers.
2.) Align loyalty goals to business drivers. Connecting what loyalty program managers want to the impact it will drive for the business is essential to the success of your loyalty initiative. Stakeholders can rally when they see how program activities tie to positive financial results.
3.) Map desired capabilities to platform providers. Selecting a loyalty provider is not a game of having the most to offer or the longest list of benefits. First identify what capabilities are necessary to achieve the experience and results you want. Then seek out partners who can deliver against those outcomes.
offers are performing, which allows us to create targeted user journeys and leverage segmentation,” Sword said. “This level of personalization has been key in driving customer engagement and satisfaction.”
“The Jacksons experience is loaded with exciting things for customers to explore — with everyday offers and featured promotions to integrated sweepstakes opportunities from partners,” Templeton pointed out.
This gives customers a reason to return and check out what might be new, which is an essential component to operating an engaging loyalty experience, he noted.
“Jacksons has done a great job prioritizing focus areas in their app, even with an immense amount of content to explore,” Templeton added. “The points meter on the opening screen helps direct attention to what a customer has collected so far, plus a filterable rewards
catalog provides the opportunity to home in on exactly what reward a member might be craving.”
SHOOTING FOR THE STARS
Jacksons’ Let’s Go Rewards is a points-based program, where purchases earn “stars.”
“Every time a customer makes a purchase, they’re collecting stars, which can be redeemed for rewards. It’s like a little sprinkle of stardust with every visit,” Sword said.
Customers earn 10 stars for every $1 purchase they make and can redeem them for rewards from a catalog of freebies that include new healthy items.
While the star system is the foundation of the program, Sword noted that Jacksons is building on this core framework to create a loyalty experience that’s “truly rewarding in every sense.”
“The beauty of the stars model is that it’s intuitive — customers
immediately understand how their spending translates into rewards. It’s easy to track progress, which keeps the excitement going and drives repeat visits. Plus, the system fits perfectly with our digital-first approach. Whether through our mobile app, web app or by simply entering a phone number at the pin pad, customers can easily manage their stars, see what rewards they’re close to unlocking and receive personalized offers,” Sword said.
And with a more personalized approach to rewards, Jacksons can now offer rewards like double stars on favorite products, exclusive discounts on frequently purchased items or special promotions tied to broader campaigns, such as holiday events or customer anniversaries, Sword explained.
Data and analytics also play a crucial role. The chain now has better insight into customer behaviors, giving it the ability to continuously refine its offerings to ensure it is delivering the rewards that matter most to shoppers.
“Overall, these technological improvements have empowered us to create a more engaging and responsive loyalty program,” Michael said. “We are only just scratching the surface, and we’re excited to continue building out additional features and benefits to enhance the experience for our guests.”
What’s more, throughout the app experience, Jacksons nudges customers down a particular path using highlights and previews, while also making space for exploration and discovery of the brand’s many offerings, Templeton noted.
“Just like in a physical store environment, getting the prioritization and presentation of messages correct is key,” Templeton said. “Jacksons has done that and more, balancing promotions, messaging and loyalty education all in one integrated experience.” CSD
Capitalizing on EV Charging at C-Stores
The electric vehicle charging segment is rapidly evolving in the c-store industry, and retailers are taking notice and implementing or updating their charging stations while keeping tabs on trends and the legislative landscape.
Electric vehicle (EV) charging continues to gain traction across the retail industry, especially as more consumers transition from gas-powered to electric cars.
The number of EVs in the U.S. is estimated to hit 27 million by 2030 and 92 million by 2040, according to a recent analysis by PwC (PricewaterhouseCoopers), a global professional services firm that provides consulting and other services. PwC also found that the number of EV charger points in the U.S. is poised to grow from about 4 million today to an estimated 35 million in 2030.
In August, as part of its $7.5 billion program authorized by the 2022 Inflation Reduction Act, the federal government allocated $521 million in grants to accelerate the expansion of EV infrastructure and support the growing adoption of EVs nationwide.
According to the Energy Department and Federal Highway Administration, $321 million of the funds will be allocated for 41 community projects that expand EV charging infrastructure, while $200 million will fund 10 corridor fastcharging projects.
Zhane Isom • Associate Editor
Milwaukee will receive $15 million to install EV chargers at 53 sites, and Atlanta will receive $11.8 million to install a DC Fast Charging Hub at the city’s airport with 50 DC fast chargers, providing charging for rental cars, ride-share drivers and airport shuttles, as reported by Reuters.
Most c-store retailers have considered the demand for EV chargers and have already begun implementing them at their stores or are researching to determine if EV chargers are a good fit for their locations.
CREATING AN EV CHARGING STRATEGY
Before c-store retailers can add EV chargers to their forecourt, they must understand what the legislative landscape looks like and make sure chargers are something their customers are looking for.
When the Biden administration announced its goal for federal vehicle acquisitions to be 100% zero emission by 2035, California took the zero-emission agenda further by demanding that all new cars and light trucks sold in the state be zero emission by 2035.
Other states, including Washington and Oregon, have also adopted a version of California’s goal to transition new cars from gas to electric by 2035.
“However, the zero-emission vehicle decision in California has led many of the Section 177 states to consider or begin the process of opting out of the California program,” said John Eichberger, executive director of the Transportation Energy Institute. “It remains to be seen what happens with these other states who may wish to follow California’s lead in reducing emissions but may not be comfortable going so far as to mandate a vehicle technology.”
Retailers must consider where their stores are located, among other factors that may play a role in the success of EV chargers at their locations.
“An EV charging strategy should include assessing what kind of sites you have or want to have. That means understanding what the site use case is, the target customer and the corresponding amenities,” said Eichberger. “Is the retail location next to an exit ramp on a busy travel corridor? If so, the driver may be
traveling relatively longer distances and need a full charge from a more depleted battery. This means a longer charge and longer dwell time — amenities that match up with this are prepared foods, snacks, beverages and bathrooms.”
INNOVATING WITH EV
CStore Decisions’ 2024 Chain of the Year, Pilot Company, with a travel center network that spans 900 locations across 44 states and five Canadian provinces, is building an EV charging network across the country from coast to coast, leveraging its nationwide footprint. It is in the process of installing 350-kilowatt EV fast chargers at up to 500 locations in partnership with General Motors.
“Consumer interest in EVs is still growing, and we’re here to match that demand,” said Brandon Trama, head of vehicle electrification and infrastructure at Pilot. “We’re on our way to building a reliable nationwide EV network that gives these drivers access to the same amenities they’ve become accustomed to over the years.”
Pilot is building an electric vehicle (EV) charging network across the country from coast to coast. It is in the process of installing 350-kilowatt EV fast chargers at up to 500 locations in partnership with General Motors.
Pilot has been among the first to enter the EV space in the travel center industry, and it’s committed to building a “first-of-its-kind, highway-based connected network with full amenities.”
“We were the first to open a NEVI (National Electric Vehicle Infrastructure Formula) -funded site to the public. From there, we’ve worked with the utilities and other stakeholders to work quickly, navigate new territory and help build essential charging infrastructure across our nationwide network,” Trama said.
As Pilot continues to build out its EV infrastructure, it gathers feedback from team members and guests and incorporates those insights to ensure it is offering a bestin-class experience.
“Since charging an EV takes a little longer, we are always looking at ways to enhance the in-store experience for our guests who may be spending a little more time at our locations,” Trama added. “All these things, and many others, are just part of what we do at Pilot as we
aim to be the leading energy and experience provider people rely on to fuel their journeys.”
GetGo, with 270 c-stores across five states, is another chain succeeding with EV. GetGo has strategically integrated EV charging stations at multiple locations to cater to the growing number of EV users.
Joel Hirschboeck, vice president of fuels at GetGo, stated that EV charging at the stores is performing exceptionally well. He has seen a notable increase in the usage of store charging stations, reflecting the growing number of EVs on the road and customers’ preference for GetGo’s convenient locations.
“The increase in usage is a positive indicator that more customers are choosing our stores not just for quick purchases but as a reliable destination for charging their vehicles,” he said. “This uptick has been consistent, showing that our decision to invest in EV infrastructure is paying off.”
As GetGo continues to make great strides with EV charging, the retailer is looking into how it can
take this fueling option up a notch. Hirschboeck hopes to eventually integrate EV charging into GetGo’s operations, much like its traditional fuel services.
“Our goal is to make EV charging as convenient and accessible as fueling up with gas or diesel. This includes optimizing the layout of our stations to ensure that charging spots are easy to access and located near other essential services,” said Hirschboeck. “We are also continuing to explore partnerships with leading EV charging providers to offer reliable, high-speed charging options.”
At press time, Alimentation Couche-Tard was set to acquire GetGo in a deal expected to close in 2025. Its Circle K convenience stores have been actively expanding their EV network as well.
EV TRENDS
When it comes to adoption trends, there has been an increase in the number of charging sessions and the number of chargers in the
GetGo has strategically integrated electric vehicle (EV) charging stations at multiple locations, and they are performing exceptionally well. GetGo’s goal is to make EV charging as convenient and accessible as fueling up with gas or diesel.
“In regard to the power level of charging stations being deployed, we have seen a flatlining of chargers under the 50-kilowatt power level,” said Eichberger. “However, we have seen a steady month-over-month increase in 50-99 kilowatt, 100-299 kilowatt and 300-plus kilowatt. One hundred to 299 kilowatt is the largest power level grouping with more than 4,299 chargers at last count.”
Additionally, there has been a reduction in average charging times, which is partially due to the increased presence of higher-range and modern EVs.
“These newer models are capable of drawing higher power, which allows them to charge more quickly,” said Hirschboeck. “This trend is contributing to the shorter charging sessions we’ve seen, enhancing the overall efficiency and throughput at our charging stations.”
The EV train is not slowing down any time soon, so there is plenty of opportunity, especially for retailers in the c-store industry who are not offering EV charging, to take some time, do research and implement EV charging, if it’s right for them.
“According to our recent survey, cstores have the amenities that drivers want, and c-stores, by their very name, have the most convenient locations,” said Eichberger. “After analyzing charging sessions across the U.S., c-stores have the highest utilization rates of the major business verticals we track.”
Trama advised retailers interested in EV charging to invest in great partners and people.
“You’ll need partners who can solve puzzles and work shoulder to shoulder daily to make ambitious plans a reality,” he said.
Hirschboeck suggested that retailers should start small with one or two charging ports, work their way up, and perhaps partner with established providers to test their market and gather insight into the local demand for this service.
“This is a constantly evolving landscape, and we have plenty of evidence that tells us EVs are here to stay,” he said. “While we can’t predict the rate of adoption or how quickly EV users will start to integrate visits to convenience stores as a regular part of their day, we can look for new ways to uniquely connect to this group of consumers.” CSD
FAST FACTS:
• The number of electric vehicles (EVs) in the U.S. is estimated to hit 27 million by 2030 and 92 million by 2040, according to PwC.
• The number of EV charger points in the U.S. is poised to grow from about 4 million today to an estimated 35 million in 2030, per PwC.
• There has been an increase in the number of charging sessions and the number of chargers in the convenience/ fuel retailer business.
• There has also been a reduction in average charging times, which is partially due to the increased presence of higher-range and modern EVs.
Pilot Company is modernizing locations through a $1 billion New Horizons initiative, leaning into foodservice evolution, innovating with new technology and creating an employee-centric culture. The chain is also committed to building an electric vehicle charging network from coast to coast.
Founded in 1958, Pilot is the largest operator of travel centers in North America. A wholly owned subsidiary of Berkshire Hathaway, Pilot’s travel center network includes nearly 900 locations across 44 states and five Canadian provinces.
CStore Decisions’ Chain of the Year Award annually honors a convenience store, travel center or petroleum chain that has established itself as a superior retailer and innovator.
CONGRATULATIONS TO THE CSTORE DECISIONS CHAIN OF THE YEAR!
THANK YOU TO OUR 2024 SPONSORS!
PRODUCT Showcase
LTO Chips
Pringles has unveiled its new Mexican Street Corn-flavored chips. These ingeniously shaped Pringles Mexican Street Corn potato crisps are extremely light, crispy and never greasy. Each crisp is bursting with roasted spices, citrus zest and a kick of cayenne pepper. With the convenient can, it’s easy to turn up the flavor and fun among family and friends.
Lighters With New Look
Calico has introduced its new Scripto Hybrid Jet Flame with a new look and colors. It’s now available in five new colors — white, blue, red, violet and gray — and comes in refreshed, eye-catching packaging designed to boost consumer sales. The Scripto Hybrid Jet Flame lighters are available in a 50-count display-a-tray, one-pack and two-pack open stock. The lighters have a suggested retail price of $2.79 per lighter in a display-a-tray, $2.99 per one-pack and $5.68 per two-pack.
Calico Brands www.calicobrands.com
Kellanova www.kellanova.com
Sustainable Packaging Solution
Placon has released EcoStar 50S, a sustainable packaging material made from post-consumer recycled (PCR) plastic that meets current packaging requirements in all 50 U.S. states. Going forward, Placon’s stock food and retail polyethylene terephthalate products will be made with EcoStar 50S, giving Placon’s customers environmentally sustainable packaging that meets state PCR requirements at no additional cost. As regulations change, Placon will adjust the PCR content in EcoStar 50S to meet new requirements, thus helping customers navigate through an ever-evolving regulatory landscape that can be difficult to track and understand.
Placon www.placon.com
Over-the-Counter
Contraceptive Pill
Cadence OTC has rolled out its Morning After Pill to convenience stores across the country. The Morning After Pill, along with other products in the pipeline, is fulfilling its mission to increase access to safe, effective and affordable over-the-counter contraceptives. When taken as directed, the Morning After Pill helps prevent pregnancy before it starts.
Cadence OTC www.cadenceotc.com
Pumpkin Spice Chocolate Chip Cookies
Otis Spunkmeyer has introduced its latest seasonal treat: the Pumpkin Spice Chocolate Chip Cookie. This delectable fusion of warm pumpkin spice and rich chocolate chips embraces the essence of autumn in every bite. Giving operators more variety for their cookie-loving customers, the Otis Spunkmeyer Pumpkin Spice Chocolate Chip Cookie is the brand’s third frozen cookie dough flavor innovation in 2024. This new treat is ideal for c-stores looking to attract customers with a limitedtime seasonal offering.
Aspire Bakeries www.aspirebakeries.com
Halloween-Themed Reese’s Cup
Limited-Edition Energy Shot
5-hour Energy is changing the game with the new Transfusion 5-hour Energy Shot. This limited-edition energy shot is nonalcoholic and has a grape-ginger-lime flavor that harnesses the best parts of the beverage cart classic. The new Transfusion 5-hour Energy Shot is currently available while supplies last.
5-hour Energy www.5hourenergy.com
Howl in delight this Halloween with Reese’s Werewolf Tracks. Featuring a tasty combination of vanillaflavored creme, milk chocolate and peanut butter, consumers can sink their fangs into snack, standard and king sizes.
The Hershey Co. www.thehersheycompany.com
Venison Meat Sticks
Wenzel’s Farm is now offering Venison Snack Sticks in three varieties: Original, Teriyaki and Jalapeño Cheddar. All the Wenzel’s Farm Venison Snack Sticks are gluten free and made with grass-fed venison, making them a great high-protein snack for the individual who needs a grab-and-go snack. The Venison Snack Sticks are available at convenience stores nationwide in a single-serve 1.5-ounce package for a suggested retail price of $2.49.
Credit card swipe fees are a major player in a c-store’s operating costs, and retailers are taking action and lobbying for solutions to mitigate the high fees.
Retailers have looked to reduce credit card swipe fees and find solutions to their high costs for years.
Recently, CStore Decisions reached out to Peter Rasmussen, CEO and founder of Convenience & Energy Advisors, for his take on the credit card swipe fee landscape.
CStore Decisions (CSD): What current legislation should retailers be aware of regarding swipe fees?
Peter Rasmussen (PR):
• Durbin Amendment: This 2010 amendment to the Dodd-Frank Act capped interchange fees for debit card transactions at 21 cents plus 0.05% of the transaction amount and mandated that fees should be ... proportional to the transaction cost.
• Ongoing Debates and Proposals: Various bills and regulatory discussions continue to address swipe fees, including proposals to cap fees for credit card transactions or improve transparency around fee structures.
• Recent Developments: Some states and jurisdictions are introducing or considering legislation to further regulate ... swipe fees, with varying scope and effectiveness.
CSD: How does this affect c-stores, particularly smaller retailers?
PR: Convenience stores often face higher swipe fees relative to their sales volume compared to larger retailers, significantly impacting their margins. Smaller transactions,
common in c-stores, can lead to proportionally higher fees. Fixed swipe fees per transaction can disproportionately affect smaller retailers. Then the reverse happens in cases where retail fuel is around $4 vs. around $3 and the margin is lateral. Card fee increases while gross profit may not.
CSD: How can chains alleviate the swipe fee impact on customers?
PR: Some c-stores may add a small surcharge for credit card payments, though this practice can be frowned upon. Encouraging cash payments by offering discounts or incentives can help reduce reliance on credit card transactions and mitigate swipe fee impact. However, this opens the door to more cash management issues, and we live in a world that is steering digital. I don’t know about you, but I don’t use ... my wallet as my phone is my source of commerce. Unbranded c-stores can negotiate better terms with payment processors. C-store operators with branded locations should factor in the credit card surcharge in their overall decision of which brand to choose or if they should go unbranded. Unbranded retailers with good terms negotiate a small base fee per transaction with the processor, with pass through rates on the interchange.
CSD: How can c-stores further their goals regarding swipe fees?
PR: C-stores can join or support industry groups advocating for fairer swipe fee regulations. Leveraging newer payment technologies or systems with lower fees, such as ACH (automated clearing house) transfers or direct bank payments, can help manage costs. However, ACH is a shrinking market.
CSD: How do you see credit card swipe fees in a few years?
PR: Further regulatory changes aimed at reducing swipe fees could occur, especially given ongoing scrutiny and consumer advocacy. Advances in payment technology could alter the landscape of transaction fees, potentially reducing costs.
Increased competition among payment processors could lead to more favorable terms for retailers. This is a bigger challenge here — not all payment processors are certified to process petroleum transactions.
CSD: Are there swipe fee misconceptions to be aware of?
PR:
• Fee Structures Are Uniform: Swipe fees vary widely based on card type, processor and transaction volume. ...
• Swipe Fees Are Fixed: Fees often include both a percentage and a fixed per-transaction fee.
• Retailers Have No Recourse: Retailers can negotiate terms and seek better deals or alternative payment methods.
