Solutions for Convenience Retailers Small c-store retailers battle inflation, supply issues and shifting trends. PersevereOperatorsindependent CStoreDecisions®Decision INSIDE Brewing New Ways to Grow Co ee Sales 34 Smokeless Satisfies Consumers 44 LEDs, Energy E ciency Take Precedence 76 September 2022 • CStoreDecisions.com
September CStoreDecision
September 2022 • CStoreDecisions.com Decisions®
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Brent Mouton, President and CEO Hit-N-Run Food Stores • Lafayette, La. YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD Kalen Frese (Board Chairman), Food Service Director Warrenton Oil Inc. • Warrenton, Mo. Jeff Carpenter, Director of Education and Training Cliff’s Local Market • Marcy, N.Y. Megan Chmura, Director of Center Store GetGo • Pittsburgh Ryan Faville, Director of Purchasing Stewart’s Shops Corp. • Saratoga Springs, N.Y. Caroline Filchak, Director, Wholesale Operations Clipper Petroleum • Flowery Branch, Ga. Cole Fountain, Director of Merchandise Gate Petroleum Co. • Jacksonville, Fla. Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas Daillard Paris, Director of Petroleum Supply and Trading Sheetz Inc. • Altoona, Pa. CStore Decisions is a three-time winner of the Neal Award, the American Business Press’ highest recognition of editorial excellence. WTWH MEDIA, LLC 1111 Superior Ave., 26th Floor, Cleveland, OH 44114 Ph: (888) 543-2447 EDITORIAL AND NAG 1420 Queen Anne Road, Suite 4, Teaneck, NJ 07666 Ph: (201) 321-5642 2011 - 2020 SUBSCRIPTION INQUIRIES To enter, change or cancel a subscription, please go to: http://d3data.net/csd/indexnew.htm or email requests to: bsprague@wtwhmedia.com Copyright 2022, WTWH Media, LLC EDITORIAL VICE PRESIDENT, EDITOR-IN-CHIEF John Lofstock jlofstock@wtwhmedia.co EXECUTIVE EDITOR Erin Del Conte edelconte@wtwhmedia.com ASSOCIATE EDITOR Emily Boes eboes@wtwhmedia.com ASSOCIATE EDITOR Marilyn Odesser-Torpey EDITORIAL ASSISTANT/INTERN Kevin McIntyre CONTRIBUTING EDITORS Anne Baye Ericksen Carol Brzozowski Brad HowardPerkinsRiell COLUMNISTS Ernie Harker Tim DavidSteveKevinPowellRiceSandmanSimendinger SALES TEAM PUBLISHER John Petersen jpetersen@wtwhmedia.com (216) 346-8790 VICE PRESIDENT, SALES Tony Bolla tbolla@wtwhmedia.com (773) 859-1107 REGIONAL SALES MANAGER Ashley Burk aburk@wtwhmedia.com (737) 615-8452 REGIONAL SALES MANAGER Patrick McIntyre (216)pmcintyre@wtwhmedia.com372-8112 REGIONAL SALES MANAGER Jake Bechtel (216)jbechtel@wtwhmedia.com299-2281 CUSTOMER SERVICE CUSTOMER SERVICE MANAGER Stephanie Hulett shulett@wtwhmedia.com CUSTOMER SERVICE REPRESENTATIVE Jane Cooper jcooper@wtwhmedia.com LEADERSHIP TEAM MANAGING DIRECTOR Scott McCafferty smccafferty@wtwhmedia.com CO/FOUNDER, VP SALES Mike Emich memich@wtwhmedia.com EVP Marshall Matheson mmatheson@wtwhmedia.com CREATIVE SERVICES VICE PRESIDENT, CREATIVE SERVICES Mark Rook mrook@wtwhmedia.com CREATIVE DIRECTOR Erin Canetta ecanetta@wtwhmedia.com ART DIRECTOR Matthew Claney mclaney@wtwhmedia.com DIRECTOR, AUDIENCE DEVELOPMENT Bruce Sprague bsprague@wtwhmedia.com EVENTS EVENTS MANAGER Jen Osborne josborne@wtwhmedia.com EVENTS MARKETING SPECIALIST Olivia Zemanek ozemanek@wtwhmedia.com VIDEO PRODUCTION VIDEOGRAPHER Bradley Voyten bvoyten@wtwhmedia.com VIDEOGRAPHER Garrett McCafferty gmccafferty@wtwhmedia.com VIDEOGRAPHER Kara Singleton ksingleton@wtwhmedia.com DIGITAL MARKETING VICE PRESIDENT, DIGITAL MARKETING Virginia Goulding vgoulding@wtwhmedia.com DIGITAL MARKETING MANAGER Taylor Meade tmeade@wtwhmedia.com DIGITAL MARKETING SPECIALIST Olivia Boris oboris@wtwhmedia.com WEBINAR COORDINATOR Halle Kirsh hkirsh@wtwhmedia.com WEBINAR COORDINATOR Kim Dorsey kdorsey@wtwhmedia.com DIGITAL DESIGN MANAGER Samantha King sking@wtwhmedia.com MARKETING GRAPHIC DESIGNER Hannah Bragg hbragg@wtwhmedia.com WEB DEVELOPMENT DEVELOPMENT MANAGER Dave Miyares dmiyares@wtwhmedia.com SENIOR DIGITAL MEDIA MANAGER Pat Curran pcurran@wtwhmedia.com DIGITAL PRODUCTION MANAGER Reggie Hall rhall@wtwhmedia.com DIGITAL PRODUCTION SPECIALIST Nicole Lender nlender@wtwhmedia.com DIGITAL PRODUCTION SPECIALIST Nicole Johnson njohnson@wtwhmedia.com VICE PRESIDENT, STRATEGIC INITIATIVES Jay Hopper jhopper@wtwhmedia.com 4 CSTORE DECISIONS September 2022 cstoredecisions.com the CSD Group Leading Through Innovation www.cstoredecisions.com asbpe GOLD NATIONAL AWARD 2022 CStoreDecisions 32nd Chain of the Year Award CStoreDecisions .comCStoreDecisions asbpe GOLD REGIONAL AWARD 2022
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CStore Decisions (ISSN 1054-7797) is published monthly by WTWH Media, LLC., 1111 Superior Ave., Suite 2600, Cleveland, OH 44114, for petroleum company and convenience store operators, owners, managers. Qualified U.S. subscribers receive CStore Decisions at no charge. For others, the cost is $80 a year in the U.S. and Possessions, $95 in Canada, and $150 in all other countries. Single copies are available at $9 each in the U.S. and Possessions, $10 each in Canada and $13 in all other countries. Periodicals postage paid at Cleveland, OH, and additional mailing offices. POSTMASTER: Send address changes to CStore Decisions, 1111 Superior Avenue, 26th Floor, Cleveland, OH 44114. GST #R126431964, Canadian Publication Sales Agreement No: #40026880. CSTORE DECISIONS does not endorse any products, programs or services of advertisers or editorial contributors. Copyright© 2022 by WTWH Media, LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, or by recording, or by any information storage or retrieval system, without written permission from the publisher. Circulation audited by Business Publications Audit of Circulation, Inc. EDITORIAL ADVISORY BOARD Robert Buhler, President and CEO Open Pantry Food Marts • Pleasant Prairie, Wis. Lisa Dell’Alba, President and CEO Square One Markets • Bethlehem, Pa. Raymond Huff, President HJB Convenience Corp. • Lakewood, Colo. Bill Kent, President and CEO The Kent Cos. Inc. • Midland, Texas Patrick Lewis, Managing Partner Oasis Stop ‘N Go • Twin Falls, Idaho Reilly Robinson Musser, VP, Marketing & Merchandising Robinson Oil Corp. • Santa Clara, Calif. Bill Weigel, CEO Weigel’s Inc. • Knoxville, Tenn. NATIONAL ADVISORY GROUP (NAG) BOARD Vernon Young (Board Chairman), President and CEO Young Oil Co. • Piedmont, Ala. Joy Almekies, Senior Director of Food Services Global Partners • Waltham, Mass.
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8 CSTORE DECISIONS • September 2022 cstore decisions.com CONTENTS EDITOR’S MEMO 10 Developing and Training Leaders at Your Company FRONT END 12 Corner Store Cements Its Place in the Seminole, Texas Area 20 Quick Bites/ Tracking Customer Purchasing Trends 22 Champlain Farms Mourns the Passing of General Manager Paul Trinanes 34FOODSERVICE Brewing New Ways to Grow Co ee Sales 38 Turn Up the Heat on Your Food Brand CATEGORY MANAGEMENT 44 Smokeless Satisfies Consumers 50 In Adult Beverages Curiosity and Convenience Rule 54 Crunching the Numbers on Salty and Healthy Snacks 60 Driving Dispensed Beverage Sales 66 Ban Away: What FDA’s Menthol Ban Will Mean for C-Stores 70 Opportunity in Nicotine-Free Smoking Alternatives 74TECHNOLOGY What’s Your Loss Prevention Strategy? 76 LEDs, Energy E ciency Take Precedence 82 Three Ways a Growth Partner Can Advance Digital Engagement Initiatives COVER STORY 24 Independent Operators Persevere Small c-store retailers battle inflation, supply issues and shifting trends. BACK END 85 Product Showcase 89 Ad Index 90 C-Stores Must Evolve With the Changing Consumer September 2022 • Number 9 • Volume 33 CStoreDecisions® 74
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As if this wasn’t difficult enough, an additional challenge facing young executives is developing their skills as leaders and managers. The National Advisory Group’s (NAG) Young Executives Organization (YEO) understands these challenges and is focused on helping c-store chains develop the leaders of tomorrow. YEO’s mission is to help train young talent in the convenience store industry through education and networking. We will continue that mission this month at the YEO Conference at Nouria Energy in Worcester, Mass.
Training is having a major impact on customer service practices across retail. Not training is hugely expensive — far more expensive than training. In your company, you should look for all the opportunities where proper training can dramatically increase profits, reduce waste and provide an outsized return on investment for every training dollar you spend. If you start to look critically at your workforce, it’s nearly guaranteed that you will find more opportunities than
A CEO and chief operating officer were having a brief conversation after their monthly strategy meeting where the main focus was on employee training. The CEO said, “What if we spend all this money training our staff and they leave us?” And the chief operating officer replied, “What if we don’t train them and they stay?”
Editor’s Memo
A simple, yet blunt analysis. If you spend a lot of money on people and they leave, that’s not an optimal outcome. But if you don’t train your employees and they stay, it costs you a lot more. Training next-generation leaders will determine whether or not you are ready to handle the future of retail. Preparing your leaders of tomorrow is especially prescient when you consider the long-term plight of decision makers in the ever-changing convenience store industry. New technology, the rise of electric vehicles altering the nation’s fuel infrastructure, an increased demand for foodservice, supply shortages and staffing issues are just a handful of the game-changing issues facing convenience stores.
Here are three things you should keep in mind to cultivate great leadership and outstanding company culture: Clearly communicate expectations. If employees don’t clearly understand that leadership qualities are expected within the company, they’ll never feel empowered to step up and show the initiative your company needs to grow. Make it clear that this empowerment mentality is the rule, not the exception, in your organization. Actively train. Back expectations and empowerment with training, which takes raw talent and molds it, turning leadership potential into leadership skills. Through active training, leadership-minded team members will learn important traits required for leadership, such as authenticity — never asking a co-worker to do something you wouldn’t do. Be honest. Encouragement and training should produce results, and if they don’t, you have to communicate that to your team members. Difficult conversations should never come as a surprise. Your next generation of leaders — and really, everyone in the company — should know where they stand relative to the expectations set. Having that direct, honest communication is a major part of building a culture of accountability, which is essential for mentoring leaders.
For any questions about this issue or suggestions for future issues, please contact me at jlofstock@wtwhmedia.com.
As chains look to develop a leadership pipeline, there are many important factors to consider: what your needs are; where you want the company to be in 10 years; how you want to go about recruiting, retaining and training future leaders — all of which are important questions.
John Lofstock
The 2022 YEO Conference will feature educational sessions and workshops, a tour of the top convenience stores in the Boston market, Information Exchanges and outstanding networking opportunities with the industry’s future leaders. This conference comes at a crucial time for retailers.
Developing and Training Leaders at Your Company
you expect, and the payoff can be dramatic. In simple terms, if a trained leader becomes 100% productive and an untrained leader is only 60% productive, you are losing $40,000 in value on every $100,000 of business youYEOconduct.isextremely focused on bringing young talent together from across the country and giving them a platform to discuss the successes and struggles facing next-generation leaders, which increases their value and net worth to your business.
10 CSTORE DECISIONS • September 2022 cstore decisions.com
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Corner Store began in 2017 as a little mom-and-pop shop. But, over the years, it has expanded across the community. Today, the chain operates two c-stores and one travel center in the Seminole area.
“When they bought it, it was just a store and a grill; it didn’t have the fuel islands. They added fuel islands the following year, in 2018, so that’s when it became a con venience/grocery store and grill,” said Becka Friessen, marketing director of Corner Store. Shortly after purchasing the first location, Owners Bobby and Yolanda Teichroeb decided to build two new stores to expand their footprint in the community
12 CSTORE DECISIONS • September 2022 cstore decisions.com
In an area where business is still done with a handshake, c-store chain Corner Store brings customer service to a new level while offering a well-known, propri etary foodservice program to Seminole, Texas. With a brand-new loyalty program, customers can find deals and discounts on Corner Store products with a physical rewards card. Proving that business can still be done the old-fashioned way, the chain offers customers personal service across its three Seminole locations.
Corner Store Cements Its Place in the Seminole, Texas Area
FRONT END Profile
Kevin McIntyre • Editorial Assistant
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When it comes to the design of the stores, each site has a standard appearance.
PROPRIETARY FOODSERVICE
Foodservice is one aspect of Corner Store that is driving sales and giving the chain an advantage in the competitive market.Friessen noted that in the month of June, the Corner Store travel center location alone sold over 2,000 breakfast burritos and 996 hamburgers.
“The second location was built from the ground up, and we opened in 2020,” continued Friessen. “And then our third location — which is our biggest one yet — that’s our 24-hour travel center, and that one we opened earlier this year in March.”
14 CSTORE DECISIONS • September 2022
decisions.com FRONT END Profile
The chain is now partnered with Valero as its fuel distributor at all three locations.
At its travel stop location, Corner Store offers guests a spacious outdoor dining area. cstore where they were already established.
DESIGN DECISIONS
“The color scheme is very neutral. Our first two lo cations had a very similar look. The travel center has a more modern and industrial look from the outside,” explained Friessen. Each location also features a signature art piece containing a dusky brown image of an oil pump with cattle in the background. The piece is a way for the chain to pay homage to the history of Texas and the influence the oil industry has had on the area.
Friessen noted that this gives store regulars the chance to connect with employees and experience the hands-on customer service that Corner Store strives for.
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To make transactions at the register as easy as possible, customers can link their rewards card to a phone number so that they do not need to have their card on them when making purchases.
Each store features a proprietary foodservice program, without having to partner with any chains or foodOndistributors.topofhaving a well-known, popular menu, the travel center location features an open, outdoor dining area for customers to enjoy a variety of Corner Store products.
©2022 Prairie
Corner Store employees work tirelessly to keep shelves stocked and up to date with all the products customers may be looking for. City Bakery,
“We are locally known for our amazing hamburgers and breakfast burritos,” she said. “And so, we are super busy as far as food services go and definitely very popular (for the) items on our menu.”
LOYALTY MATTERS
In July of this year, the chain launched its loyalty program that offers customers deals and offerings for in-store purchases. Keeping with the brand’s theme of business the old-fashioned way, customers can take advantage of the loyalty program with the use of a physical rewards card.
“We’re scoping a couple of locations also in the Texas area. We don’t have anything for sure yet, but there’s a couple of different locations we’re looking at. But nothing set in stone or anything that we can count on just yet,” Friessen noted.
LOOKING FORWARD
When asked about the company’s goals for the future, Friessen mentioned that there are always im provements that can be made on existing initiatives.
“(Our goals are to) make everything we are already doing even better. Like I said, we pride ourselves on the services we offer, and we’re always open to the idea of making a good thing better and greater,” said Friessen.
As of now, Corner Store does not have concrete plans for expansion, but the chain is always looking to build upon its footprint in Texas.
18 CSTORE DECISIONS • September 2022 cstore decisions.com
FRONT END Profile
“That is our mission statement; in the area, we are the cleanest, most organized store, and we also have the most well-kept and stocked store, and the friendliest staff. We really pride ourselves on that,” said Friessen.
Above: The chain prides itself on the cleanliness of its bathrooms, offering customers a reliable place to stop while traveling.
In the extremely competitive world of c-stores, being a small, independent chain can come with its challeng es. Friessen noted that one of these challenges is their relationship with suppliers.
“When our customers come in, they prefer to have that one-on-one conversation with our cashiers,” said Friessen. “They make deals with handshakes. (There are) still very personal relationships.”
Left: As a smaller chain, Corner Store sometimes faces sup ply challenges, although its size allows for more personal relationships with customers.
OPERATING AS AN INDEPENDENT CHAIN
“It seems we’re more at the bottom of the supplier list. When it comes to inventory and stuff, we have a little bit of a harder time getting our hands on inven tory and keeping our shelves stocked,” she said. However, with these challenges come certain ad vantages for the smaller chains. While operating three stores, Corner Store employees are still able to main tain relationships with customers and engage actively in the Seminole community. Something that the brand prides itself on is its relationships with customers and its friendly, welcoming customer service. Friessen noted that on top of the exceptional customer service, each store stays wellstocked and extremely clean.
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Source: CivicScience 2022 RISING FOOD
5.
food restaurant
After
1.
2.
3.
quickBites TRACKING CUSTOMER PURCHASING TRENDS 20 CSTORE DECISIONS • September 2022 decisions.com From the snack aisle to the checkout, customer preferences continue to evolve.
SNACK APPEAL
Source: NPD Group, July 2022 CivicScience found that nearly nine out of 10 fast food customers said they have noticed price increases on menus, and 56% have recently stopped themselves from purchasing menu due to the rise in prices. CivicScience 2022 PRICES last month, have stopped yourself from eating at a fast due to its menu prices being higher than usual?
DETER PURCHASES SELF-CHECKOUT CONSIDERATIONS In the
If both a self-checkout kiosk and a cashier are available at a store which one do you prefer to checkout with? HARD SELTZER FAVORITES Flavor Profile Preference If they had to select one flavor profile, customers would choose: • 42% flavor combinations such as sweet and spicy, or tangy and salty • 21% familiar, regional flavors • 21% texture • 15% international flavors More than half of 18-34-year-old consumers consider a brand’s ethics and sustainability practices when purchasing snacks. What Purchasing?Influences • 35% innovative flavors • 28% recommendations • 21% brand recognition • 9% packaging • 7% sustainability efforts 40% of customers are most excited to find a snack with a flavor they love, but have never had in a snack product before. consumers consider a SelfCheckout NoCashierpreference31% 55% 14% cstoredecisions.com Source: Frito-Lay, U.S. Trend Index poll conducted between May 26-27, 2022 among a national sample of 2,200 adults and an additional 200 adults ages 18-34 Source: IRI OmniMarket, Total U.S. Multi Outlet + Convenience + Liquor, for the 52 weeks ending June 26, 2022
U.S. consumers cut back on their restaurant visits in the second quarter of 2022, with physical and online restaurant traffic dipping versus a year ago and 6% below the pre-pandemic level in Q2 of 2019, according to The NPD Group. four years of intense growth, hard seltzer sales are leveling off in 2022 as the category matures, but flavor innovation continues to entice customers. The top ready-to-drink hard seltzer varieties are: Variety Pack, $3.9 billion Iced Tea, $422 million Black Cherry, $399 million $282 million Margarita, $254 million Tra c Declines By Daypart in Q2 2022 vs Q2 2021: Dinner Daypart: (34% share of tra c) -2% Lunch visits: (30% share) -3% Morning meal daypart, including breakfast and A.M. snack: (20% share) flat P.M. snack: (16% share) -6% DAYPART TRAFFIC DECLINES
4. Lemonade,
2%
Mary Elizabeth T. Barwick Reynolds American Inc. RAIS Vice President, Strategic Engagement
*Reynolds American Inc. and its operating companies (collectively referred to here as “Reynolds”)
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The concept of harm reduction is a science-based, public health strategy intended to lower the health risks associated with high-risk behaviors; seat belts in cars are a classic example. Tobacco Harm Reduction provides adult smokers uninterested in quitting altogether with accurate information and access to potentially less harmful alternatives to cigarettes such as vapor, tobacco heating, oral nicotine and smokeless, and encourages adult smokers to consider switching.
There are scientifically proven differences in the health risks of various tobacco products. Cigarettes are by far the most risky, and comparatively, products like e-cigarettes, nicotine pouches and snus carry less risk. The primary reason is that these other products do not involve combustion.
THR is an important public health movement that not only benefits adults who smoke but also creates broader societal benefits across the United States. You can learn more about THR and our commitment to a Better Tomorrow® at www.reynoldsharmreduction.com
Reynolds is committed to reducing the health impact of our business, and Tobacco Harm Reduction, or THR, is an important component of that commitment.
- U.S. Food and Drug Administration, 2022 THR is Important for Public Health & Retailers Our vision is to build A Better Tomorrow® by reducing the health impact of our business through offering a greater choice of enjoyable products for our adult consumers. These innovative products will continue to be available in retail outlets across the country.
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“Though more research on both individual and population health effects is needed, many studies suggest e-cigarettes and noncombustible tobacco products may be less harmful than combustible cigarettes.”
This is intended to facilitate public policy discussion. Reynolds does not make health or cessation claims regarding its brands. Reynolds is not responsible for the content of referenced sources and the views expressed may not represent the views of Reynolds. No tobacco product is safe, all tobacco products containing nicotine are addictive. Youth should never use tobacco. Smokers who are concerned about their health should quit. © RAIS (2022) Based on Abrams et al., Fig. 2 (2018)
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But adult consumer adoption and use is dependent on broader access to accurate information about THR and these alternative nicotine products. In spite of the science, some U.S. policymakers continue to propose and enact prohibitionist policies in the form of regressive taxes and outright bans on these products at the local, state and federal level. Collectively, we must work to promote pro-THR policies and give adult consumers accurate information and prevent unreasonable bans and taxes that limit consumer choice and the acceptability of these alternatives. We want to empower adult nicotine consumers to understand the potential benefits of tobacco harm reduction, and you can help us do that.
CHAMPLAIN FARMS MOURNS THE PASSING
In addition to his extensive corporate family, Paul leaves behind his wife Victoria, his high school sweetheart whom he married when they were both 18 years old; as well their daughter Amy; and his two granddaughters, Isabelle and Amelia, whom he adored. He was an ardent Patriots and Red Sox fan and never missed an opportunity to let you know it. At the end of the day, it’s not about the money. It’s about the relationships, the friendships. And Paul had those by the hundreds. We believe God has a plan, and we are grateful that it included Paul being with us for those 27 years. He left us so unexpectedly that we never had the chance to say goodbye. We will miss you greatly, Paul, and we will never forget you. Thank you for the decades of loyal service and deep commitment. God Bless You. OF MANAGER PAUL TRINANES
David Simendinger • Champlain Farms
He knew every side of this business from the bottom up and possessed a deep insight for the market forces and social influences that drive it. He nurtured long-term relationships with suppliers and was a stabilizing voice of reason in an un predictable, high-turnover industry.
FRONT END Column
In addition to those skills, Paul was a people person. He knew how to bring out the best in our em ployees, how to meet their needs and help refocus their energy in a positive direction. He didn’t get angry, ever. He was a steady voice of reason in a chaotic world and always saw the human side of every dilemma.Paultruly enjoyed interviews and selecting the best candidates for store managers. He had an innate instinct for the qualities that make a great manager and didn’t hesitate to select candidates that might have been overlooked by others due to their young age or lack of experi ence. He was rarely wrong on those selections. His own experience as a store manager gave him insight and understanding to the unique chal lenges of that critical position. It was Paul that selected so many quality people that contributed to the suc cess of Champlain Farms.
Champlain Farms, based in South Burlington, Vt., is mourning the passing of our general manager, Paul Tri nanes, who served our c-store chain faithfully for 27 years. After serving as a cook and food service manager in the Coast Guard, Paul began his career in the retail in dustry, working for Honey Farms and Cumberland Farms prior to joining the Champlain Farms team in 1995. Over the course of his employ ment with us, he worked as a store manager, auditor, loss prevention of ficer, district manager, state supervi sor and director of operations. From the beginning, it was clear that he knew how to take charge of people and problems. With a kind heart, calm personality and gifted speech, he could turn around any difficult situation.Hisvast knowledge of food service, and his congenial nature allowed him to foster connections throughout the industry. He was hard to keep up with at NACS conven tions and seemed to know everyone there. He enjoyed meeting with ven dors, engaging in the negotiation process and securing great deals for products he knew our customers would want.
GENERAL
C-store veteran Trinanes is remembered for his kind heart, vast knowledge, outgoing personality and steady leadership.
22 CSTORE DECISIONS • September 2022 cstore decisions.com
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Independent Operators Persevere Small c-store retailers battle inflation, supply issues and shifting trends. Erin Del Conte • Executive Editor Cover Story l Independent Operators
Anthony Duran owns and operates two stores in New Jersey: Anthony’s Supermarket, a 4,000-squarefoot grocery store featuring produce, a meat department, a deli counter, frozen food, groceries and hot food; and International Super Mini Market, a 1,200-square-foot traditional convenience store.
cstoredecisions.com August 2022 DECISIONS
Duran got his start in convenience stores when he was just 13 years old helping his uncle, who owned Los Kenton Supermarket in Perth Amboy, N.J. “I started with him working weekends, and I learned a lot from him,” Duran said. “In (2009) he helped me buy a grocery store, and I started from there. From there I got a loan, and then two years after that I bought Anthony’s Supermarket in Kearny, N.J. Then I sold the first store, and I stayed with Anthony’s Supermarket.”In2020,Duran was ready to grow again and acquired International Super Mini Market in Belleville, N.J. The stores don’t offer fuel, but they do provide foodservice options for customers. International Super Mini Market features a deli program with fresh-prepared cold sandwiches made to order.
Small independent convenience store retailers are not only grappling with the same inflation, supply chain issues and labor shortages as the rest of the industry, but they’re also having to compete against larger chains with fewer resources. Still, small family chains are the backbone of this industry and many independent c-stores are succeeding today despite these obstacles.
“Because we’re smaller, we don’t buy every week. We buy every two weeks, and sometimes every three weeks,” he noted. “Some items — the best items that we need — they don’t offer to us because we don’t buy as much as the big chains.”
With today’s inflation added to that reality the challenge grows for small operators. “Right now, they’re exaggerating prices per case. We have seen even $10 more per case or $15 more,” he said.
Negotiating with vendors can also be more challenging for small, independent c-store operators.
“I buy a large quantity for the other store, and so I get it cheaper. Then I bring some to that store,” he said. “We have everything there, so it’s really easy.”
Duran partners with National Retail Solutions (NRS), a point-of-sale (POS) system provider, and through the partnership is able to offer incentives to guests at both locations. “They put out a special every week,” he said. For example, past specials have included two-for deals on items like candy or sports drinks.
Despite being a small operator, Duran is staying on the cusp of recent trends including order ahead and delivery. Customers can call to order ahead, so their sandwich is ready when they arrive. He also offers grocery and sandwich delivery through Grubhub.
“Customers say, ‘I want a sandwich,’ and employees ask how they want it. We make anything,” Duran said.
In the midst of the ongoing baby formula shortage, one of Duran’s suppliers has formula available. “But they won’t sell it to me; because I don’t buy every week is what they told me,” he said. He’s also struggled to source other specialty items. Sourcing products never used to be an issue as a small operator. Then the COVID-19 pandemic created supply chain issues. Now, with suppliers dealing with product scarcity in some areas, small retailers have a harder time sourcing some items.
Duran sources the sandwich ingredients directly from his Anthony’s Supermarket location, which eliminates the need for additional partnerships to obtain products.
“They’re giving them to the people that buy much more often,” he said.
As a small business owner, Duran said his biggest challenge right now is sourcing products.
Duran’s top recommendation for other independents is to launch a food program.
“It’s hard because it’s not the same. When you buy a whole truck of one item, you get it cheaper. When you buy one case, it’s way too much,” Duran said. What’s more, large chains can buy for 10 or more stores at a time, resulting in less expense and allowing them to sell products at a better price point or obtain a stronger margin, a luxury that eludes small operators.
“Small business owners that don’t sell food should Owner Anthony Duran (right) poses with his father Tony Duran. Duran sources meat and other ingredients from his Anthony’s Supermarket location to create sandwiches in his International Super Mini Market site.
Anthony’s Supermarket has been offering hot readyto-eat food for two years. The addition of hot food provided another in-demand service for the store’s customer base. Among the chain’s large grocery selection are sections of international foods including Ecuadorian, Peruvian and Portuguese options.
26 CSTORE DECISIONS • September 2022 cstore decisions.com
“As a small guy, you’re operating another store while trying to get this all done, so you can’t even compare apples to oranges,” Perrine said. “Yes, we all have the same issues, but it’s way different when you’ve got a business to run, a brand to maintain and employees to manage on top of trying to build. It massively makes it much harder for the little guy.”
Challenges affecting the timeline included labor shortages, contractors out with COVID, and delays on key items including HVAC equipment, coolers, compressors and a panel for the side of the building.
LOU PERRINE’S GAS AND GROCERY
Two of Duran’s uncles also operate convenience stores in New Jersey. Having multiple relatives involved in the convenience store business is helpful because they can offer support.
“It was one thing after another,” he said. “And then because I have an Einstein Bros. Bagels in here that I own the license for, we were delayed on getting the toasters and ovens that we needed. We actually had to use rental ones just to get open because we didn’t get our official ones until May,” he said.
try to put in an area to sell hot food. I think that would help the business a lot,” he said. “If they have the space — even a small space, it doesn’t have to be something big — to cook or fry and make sandwiches (it) would have a lot of benefits. It would help a lot.”
Duran’s father, Tony Duran, and his brother Jeffrey Duran, also work at Anthony’s Supermarket. “My father is in charge. He’s always on the register. He’s always making people laugh,” Duran said. “My brother is a manager, so he’s also in charge there.”
28 CSTORE DECISIONS • September 2022 cstore decisions.com Cover Story l Independent Operators
Duran warned it can take time and patience to build a small business that is profitable in today’s market.
After Perrine acquired his second location, he set plans for a raze and rebuild, but sourcing materials to build a store in the middle of the ongoing pandemic and supply chain disruption was “a nightmare,” Perrine said.
Anthony Perrine, owner of Lou Perrine’s Gas and Grocery, which operates two locations in Kenosha, Wis., said that even being an established third-generation business doesn’t give a small independent c-store chain much of a leg up in today’s inflationary environment.Perrine’sgrandfather, Lou Perrine Sr., started Lou Perrine’s Gas and Grocery in 1954. Perrine’s father, Lou Perrine Jr., entered the business in high school, taking the helm in 1985. Perrine took over the business from his father in 2010 and opened his second store this past spring. Both locations offer gas.
While even large chains have reported difficulties with equipment and material delays when opening stores, it’s an even bigger headache for a small operator without the same infrastructure and staff to offset the issues, he pointed out.
“It’s pretty standard,” he said. “There are times where items or deals are getting reserved just for the big boys, and we’re just left holding the bag.”
He credits the long relationships he’s had with his Anthony Duran, owner of Anthony’s Supermarket and International Super Mini Market, advises other small retailers to launch a food program to grow their business.
“If we have any questions, we call each other,” he said. “If we have any concerns, we call each other. We’re like a team.”
“At first, when we started, it was really hard because we had a lot of debt. The store wasn’t selling much, the supermarket. … But now we are doing much better,” Duran explained. “It takes time. It takes time for a business to develop.”
Perrine has seen out-of-stocks in his area on items including various drinks, beers and foodservice items.
“We were supposed to open in October and didn’t get open until April 6,” Perrine said.
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One of the biggest issues with supply right now is that distributors are dealing with labor shortages that are impacting their ability to make product deliveries, he said. In those situations, smaller chains can end up on the backburner as distributors prioritize larger businesses.
If he has extra staff in place to handle the delivery and the order is five hours late, he’s stuck paying for labor he doesn’t need and out the extra cost, he said.
Perrine has been able to recoup some of the losses from vendors through coupons and free goods to make up for some of the problems he’s experienced.
Perrine has crossed-trained employees, so he can justify pay increases. Currently about 75% of his staff is trained to handle foodservice and work both on the c-store side and the Einstein’s counter.
While some of the supply issues started during the height of COVID, Perrine noted, “it’s massively worse than what it was. For us it was much easier during COVID than it is now.”
“We’ve had the Einstein’s employees at my one location handle not just Einstein’s, but all of our food. They’re foodservice trained, so they specialize in this. ... At my other location, it’s just the gas station employees, but we designated specific ones that get foodservice (training), so that they know to take care of it the proper way.”
“If they don’t have a brand, they’re not going to make it out of this,” he said.
Before the pandemic hit, operating as a small business was a lot simpler, Perrine noted. “You didn’t have to jump through these hoops. You could negotiate. You could do certain things.”
His advice to other small independent c-stores is to operate very lean and build a powerful brand to withstand the current economic landscape.
But as far as being a third-generation business giving him an edge overall, Perrine said he doesn’t think it helps much unless you have the kind of scale that allows for better pricing and prioritization from suppliers.
“Inflation isn’t going anywhere as long as people are working at a gas station making $18 an hour,” he said.
Delays on orders are also common in today’s environment. “You’re seeing a lot of that, a lot of delayed orders where it was supposed to come on Wednesday, but it comes on Thursday. … As a little guy, we staff everything accordingly to be efficient.”
“Nobody’s really talking about the fact that the Lou Perrine’s Gas and Grocery is a third-generation business, which recently opened its second store. Owner Anthony Perrine advises other small c-store businesses to operate lean and build a brand identity to help navigate today’s market.
When it comes to breaking into foodservice as a small chain, Perrine said he thinks it depends on location and staffing capabilities as to whether it makes sense. Lou Perrine’s features a separate kitchen and food area. It also offers a roller grill, Tyson’s chicken breast sandwiches, chicken tenders and hot pizza puffs as well as mini pizzas from a local pizza company.
“Unless you’re a real small operator and manning the register yourself, you’ve got to get the most you can out of everybody,” he said.
Perrine has found third-party wholesalers to partner with to work around the issue.
30 CSTORE DECISIONS • September 2022 cstore decisions.com vendors in helping him get the products he needs. “But that’s because we’ve been around so long,” he said.
Looking ahead, Perrine sees more obstacles on the horizon that could make life harder for small businesses. He’s concerned that potential gas shortages in Europe this winter could further drive up gas prices here in the U.S. and lead to food shortages or massive spikes in food costs.
Perrine predicts that supply chain issues will be fixed in a year or two and that gas prices will eventually level out, but he thinks inflation is here to stay.
32 CSTORE DECISIONS • September 2022 cstore decisions.com
“They can buy a pack of hot tortillas by themselves. They come wrapped. They’re hot and ready to eat,” he said.
El Super features fruit and vegetable stands out front where customers can buy fresh produce. Owner Nepthli Aldo Herrera has found that sourcing products in today’s environment is becoming increasingly challenging for a small business.
breadbasket of Europe is on fire right now,” he said, referring to the war in Ukraine. “If you saw what just shutting off a little gas to Russia did, imagine what that does to food.”
Cover Story l Independent Operators
In 2020, about six months after the COVID-19 pandemic began, he opened El Super, selling his house to support his dream of creating the business.
“My stores are in neighborhoods where these people are literally going to go back home at the end of the night to plug in their car,” he said. “Charging stations will never replace gas pumps. Nobody goes to a gas station to charge unless you’ve got a five-minute charger, and we’re not there yet technology-wise.
On top of that, competition from local stores is fierce. He also finds that the city is quick to target small businesses with fines without offering advice or information so they can correct the issue.
“The purpose of this is to have things that other stores don’t have,” he explained.
CSD
His advice to others opening a c-store is to first gain experience and learn the industry, including where to buy products. “If you don’t know where to buy, you hurt your budget and then you don’t last long, you know?” he said. Despite the challenges he’s faced, Herrera is hopeful for the future. “Everybody’s dream is to have a nicer, bigger store, serve the customers much better and serve them what they need … The point is to grow and give people jobs,” he said.
El Super measures 2,300 square feet. In front of the store customers are greeted by fruit and vegetable stands with an array of fresh produce. Inside, in addition to traditional c-store fare, the store offers a variety of meats, cheeses, spices and candy from Mexico, as well as products from Latin America, Guatemala and El Salvador.
“We have to work harder for a smaller profit to compete with the big markets,” he said.
Herrera has also found that sourcing products in today’s environment is becoming increasingly challenging. As prices have risen due to inflation, it’s difficult to find good rates on key items. Some companies that sell to supermarkets won’t sell to him because his business is small. Others charge him 30-40% more than they charge the supermarkets, leading to smaller profit margins, all of which can make it more challenging for independent stores to get ahead.
EL SUPER Nepthli Aldo Herrera, owner of El Super in Brooklyn, a borough of New York City, grew up in Mexico where he learned the c-store business from his parents who owned small shops. When he moved to the U.S., he worked long hours and saved in order to follow in his parents’ footsteps and open his own business.
El Super also offers fresh homemade salsas and guacamole, as well as fresh hot tortillas for customers on the go.
Everybody’s going to plug these in at home, like their iPhone. So what are you doing to prepare?”
The shift toward electric vehicles (EVs) and away from gasoline is yet another headwind he’s watching with trepidation. Not only is he concerned about the price of conversion to EV chargers, but he also doesn’t expect EV chargers to bring in the same kind of traffic as gas pumps unless a store is located off a highway.
While suppliers have long given better discounts to supermarkets because they buy more, Herrera has seen the pandemic exacerbate the issue.
He noted some big companies don’t hire immigrants, so as a first-generation American himself, being able to provide jobs as well as quality goods to that community is a valuable service that he can be proud of.
At the same time, employee wages are also growing, requiring more financial resources for labor.
“They don’t want to sell to us because (of) the supply issues. They don’t want to sell to the small stores. They only sell to the bigger stores. Basically, small businesses cannot compete with these big businesses because (of) the price,” he said.
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“Seasonal trends help, but I think they are get ting a little ho-hum,” said Tony Sparks, head of customer wow for Curby’s Express Market. The Lubbock, Texas-based convenience store startup opened its first site earlier this year and has plans to debut two more in the coming months.
Anne Baye Ericksen Editor TO SALES Brewing
• Contributing
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Foodservice | Coffee
From bean-to-cup to made-to-order, c-stores appeal to individual tastes to capture more coffee customers.
Brewing NEW WAYS
GROW COFFEE
To be fair, customers’ fascination with fall flavors hopefully will continue, but some c-store owners and category managers seek to inject new energy into hot coffee sales year-round be cause it’s a massive customer demographic.
According to the 2022 National Coffee Data Trends (NCDT) annual report from the National Coffee Association, Americans drink 656 million cups of coffee every day. What’s more, coffee products generated more than $79.5 million for U.S. convenience stores for the 52 weeks ending July 10, per IRI. On the whole, coffee gained dollar and unit sales of 6.4% and 5.5%, respectively. Single cups grew by 8.1% in dollar sales and 3% in unit sales. To reinvigorate the hot side, Champlain Farms tested a bean-to-cup program last year, installing one machine in each of its 40 stores in Vermont and New Hampshire. Dave Simendinger, president of Wesco Inc., the chain’s parent company, located cstore
September heralds the return of pumpkin latte fanaticism. Of course, any motivation that compels people to pop into your store is a welcome event. But can the hot coffee category rely so heavily on seasonal trends when cold brew and nitro keep turning up the heat?
34 CSTORE DECISIONS • September 2022
NCDT reported a record number of people between the ages 25 and 39 are regular coffee connoisseurs.
Wholesale coffee prices are subjected to various factors: supply chain kinks, environmental effects on crop production and political fallout. Sanctions on Russia, a major coffee-consuming country, are starting to drive down global wholesale prices. Domestically, however, inflation has forced stores to reconsider pricing strategies.
Source: IRI OmniMarket Total Store View, Total U.S. Convenience, Latest 52 weeks ending July 10, 2022, received July 26, 2022 Filtering Figures Despite price increases, unit sales are up for most co ee products. Product Type $ Sales % Change vs. Year Ago Unit Sales % Change vs. Year Ago Price per Unit % vs.ChangeYearAgo Ground Co ee 2.8% 4.3% -1.4% Single-Cup Co ee 8.1% 3.0% 5.0% Instant Co ee 23.6% 16.8% 5.8% Whole Bean Co ee 15.9% 41.5% -18.1% Ground Deca einated Co ee -6.6% -14.3% 9.0% Co ee Additive/Flavoring 16.7% 19.2% -2.1% Instant Deca einated Co ee 20.5% 4.2% 15.6% in South Burlington, Vt., said the results were an impressive 10–20% increase for the category.
“But the real success was the drop in waste. We had stores wasting upwards of $10,000 a year from making coffee and tossing it after a few hours. It also contains a cappuccino (option), so we were able to eliminate that equipment from our coffee bars. This created more space and cut the electric bill. Also, when you open a store there is no need to make coffee. With a bean-to-cup machine, you are ready to serve your first customer,” he explained. “This year, we will be adding a second machine and possibly a third in select stores.” Curby’s opted to enter the made-to-order arena with hot coffee, cold brew and specialty drinks like its top-selling blended Café Chiller. It also offers 15 SKUs of made-to-order energy drinks. Although this marketplace is crowded with the likes of Starbucks, 151 Coffee and Dutch Bros., Sparks believes now is the time to adapt the model to the convenience store“Anythingenvironment.DutchBros. can do, we can do, too. We only hire people with experience in that type of format. We want coffee art people,” he said. To capture consumers who prefer traditional brews, Curby’s will add several roasts in standard self-serve airpots by the end of this month.
CREATING CRAVINGS
“There’s no question this hurts business,” said Simendinger. “Our customers make it clear to our associates they are saddened by the higher costs with all of our products, and I simply encourage my associates to try to keep it positive.”
Foodservice | Coffee
-18.1%-1.4%5.0%5.8%9.0%-2.1%15.6%
Neither Sparks nor Simendinger revealed specific plans for this year’s event, but both businesses offer multi-purchase promotions every day, such as buy 10 get one free. At Curby’s, made-to-order meal packages include a cup of coffee. It also has concentrated promotions through social media platforms, including TikTok and Instagram, to help reach millennials and Gen. Z, pivotal populations.
Indeed, Sparks hopes the affection for caffeine, hot and cold, will keep individuals of all ages popping in despite lingering concerns over inflation.
“In some respects, (coffee) is an inexpensive luxury. People talk themselves into having this luxury and will cut back on something else,” he said. CSD
36 CSTORE DECISIONS • September 2022 cstore decisions.com
Economic conditions plus a highly competitive marketplace only emphasize the importance of marketing for the category. Sept. 29 is National Coffee Day, and last year, convenience stores promoted a variety of deals, such as $1 cups, free coffee to loyalty members, digital coupons and coffee proceeds donated to charity.
So, if your foodservice department is looking for ways to take your program to the next level, what’s a good strategy?
Simple shifts can boost your chain’s foodservice appeal.
Progressive c-stores are increasingly more food-focused to increase revenue and attract customers. Over the past decade, several cstore brands have done an amazing job with their freshly prepared food program, which has brought about a widescale change in customer attitudes toward c-store food offerings. Cus tomers are more inclined than ever to consider buying food from a c-store. This means the table is set for your success.
DEVELOP A SIGNATURE PRODUCT
There’s a little Mexican restaurant in Salt Lake City called The Red Iguana where its molé — a sauce made of dried and fresh chiles, nuts, spices, herbs, fruits and vegetables, originally used in Mexican cuisine — is world famous. It’s served with Spanish rice, refried beans and flour or gluten-free corn tortillas. They were even featured on American Restaurateur Guy Fiere’s TV show “Diners, Drive-Ins and Dives.” Molé is what The Red Iguana is known for, and it draws customers to capacity every day. What are you known for? Give customers a reason to choose your locations by offering a signature item that they can’t find anywhere else. Your c-store sells the same beer, tobacco, candy bars, soda pop and chips as the convenience store across the street. Even your sausage, egg and cheese breakfast sandwich es and pre-fried chicken strips are similar. So, how do you stand out?
Foodservice | Food Branding Column
I’d like to share three ideas to elevate your foodservice game that I recently shared at an industry conference last June in Savannah, Ga. As you consider these ideas, I encourage you to start small and stay focused. As author Mark Levy says, “You don’t have to be the best. You just have to be different.”
TURN UP THE HEAT ON YOUR FOOD BRAND
Ernie Harker • Ernburn Brands
38 CSTORE DECISIONS • September 2022 cstore decisions.com
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Foodservice | Food Branding Column
You may want to start by select ing a popular regional food item and explore ways to make it your own. This could be accomplished with a unique recipe, flavor profile or an unusual proportion. Then create a distinct name for it that’s in line with your brand. If fried chicken sandwiches are popular in your area and your brand strategy includes being a little edgy, don’t take an off-theshelf chicken recipe and call it “Fried Chicken Sandwich.” Bor ing! This doesn’t help you stand out — strengthen your brand or give customers a reason to visit your store. In fact, it might give your customers an excuse to keep driving to Chick-fil-A where they specialize in that signature product. If your supplier can accommodate you, create a signature flavor profile that the majority of your tar get customers will crave like a dash of cayenne pep per or a touch of sweet honey and give it a great name like the “What the Cluck!” chicken sandwich. For example, Ankeny, Iowa-based Casey’s, with more than 2,000 stores in 16 states, offers a Taco Pizza that’s extremely popular and highly unique. If your provider can’t create the magic for you, try making huge portions your thing. Salt Lake City-based Maverik, with nearly 400 locations in 12 states, offers the gigantic M.O.A.B. — Mother of All Burritos, which includes huge servings of ham, bacon, sausage, eggs and hash browns. York, Pa.-based Rutter’s, which operates 78 stores in Pennsylvania, West Virginia and Maryland, offers the massive Route 30 burger, which includes two grilled cheese sandwiches for the bun stacked with one, two or three burgers.
CREATE SIGNATURE SIDES
Starsky has Hutch and Batman has Robin. Side kicks can pull customers to your side of the street. There aren’t any Church’s Chicken locations in my area, so the first time I visited one of their restau rants was on a recent vacation in Puerto Rico, where there’s a location within sight at all times. After butchering my own chickens for family dinners as a boy growing up in Idaho, I now prefer boneless and skinless chicken where somebody else does all the hard (uncomfortable) work. So, it makes sense that I’d order the crispy chicken tenders. However, due to a supply shortage, the restaurant was all out. The whole island was out of chicken tenders?! So I ordered one of their signature sides, Honey Butter Biscuits.
I make biscuits from scratch at least once a week because they’re fast and freakin’ awesome, but Church’s Chicken Honey Butter Biscuits were next level. I completely forgot about any cravings for chicken because I was chin deep in fresh baked biscuits. I think I ate six of them.
40 CSTORE DECISIONS • September 2022 cstore decisions.com
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People are considering c-store food offerings more than ever before, so give them a reason to chooseFocusyours.onasensational signature item and a savory side and remember to give it a name that will reinforce your brand. Don’t forget to design some packaging that will get attention. Remember, even a barn looks better painted.
THE WRAP
CONSIDER THE PACKAGING
I haven’t had another chance to try their chicken, but then next time I see a Church’s Chicken, I’m pulling in for biscuits and to try their chicken tenders.Ishare that story to spotlight side dishes. What can you offer that’s so amazing, different and delicious that nobody else is offering? Not every side dish on your menu needs to be top drawer, but focus on one that will get some acclaim. Then come up with a clever name for it that reinforces your company brand.
There’s a reason diamond rings aren’t sold in paper sacks. Packaging is a precursor to value. It helps customers anticipate an upcoming experience and it advertises to everyone in view.
decisions.com
Ernie Harker is a brand therapist at Ernburn Brands, and the former executive director of marketing for convenience store giant Maverik. Learn more at https://ernburn.com/. cstore
Unprinted and unbranded napkins, cups and packaging are usually less expensive than their custom-printed cousins, but keep in mind that their ability to draw attention to your establishment outlives the food they contain.
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When you understand that food containers are the least expensive advertising you can provide, you’ll join the ranks of world-class brands like Coca-Cola, Apple and Maverik, where even empty packages spread their gospel.
42 CSTORE DECISIONS • September 2022
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Smokeless tobacco continues to be a steady favorite among convenience store customers, with retailers stocking popular items and offering promotions when available. Smokeless tobacco dollar sales at convenience stores increased by 5.1% to reach $7 million for the latest four weeks ending July 10, 2022, according to Chicagobased market research firm IRI. Smokeless Satisfies Consumers Emily Boes • Associate Editor The smokeless tobacco segment enjoys steady growth even as current regulations shake the general tobacco category. Category Management | Smokeless Tobacco 44 CSTORE DECISIONS • September 2022 cstore decisions.com
“Moist and vape continue to be important to the tobacco category. We have given more space to both products to allow our customers to have choice and ensure we have product available,” said Brenda Elsworth, chief operating officer of Pete’s Convenient Stores. Pete’s devotes two to four feet of space to the segment within the tobacco set, depending on the store. Copenhagen brings in the strongest sales in the segment for the chain.AtThe PRIDE Stores snus products are exclusively featured in a separate refrigerator on the tobacco back bar. It also displays some Camel snus products within the tobacco pouch section, said Chris Peckat, director of purchasing at The PRIDE Stores, which has 15 locations in the Chicago area and one site in Indiana.
Smokeless Finds
Dollar Sales Dollar Share of Category Unit Sales Product Current 1-Year Change% Current Change1-Year Current 1-Year Change% Smokeless Tobacco $8.81 B 3.3% 100.00 0.00 1.42 B -0.2% Chewing Tobacco/Snuff $7.15 B -2.1% 81.15 -4.46 1.07 B -8.8% Spitless Tobacco $1.66 B 35.3% 18.85 4.46 345 M 41.0% 46 CSTORE DECISIONS • September 2022 cstore decisions.com
Chewing tobacco/snuff decreased marginally in dollar sales by 1% to $5.5 million, while spitless tobacco increased in dollar sales by 35.9% to $1.5 million for the four-week period. Smokeless tobacco jumped only 3.3% in dollar sales to hit $8.8 billion for the latest 52 weeks ending July 10, 2022. Chewing tobacco/snuff decreased by 2.1% in dollar sales for the 52-week time period, and spitless tobacco shot up by 35.3%, per IRI.
The smokeless tobacco category grew by 3.3% in dollar sales for the latest 52 weeks ending July 10, 2022. Within the category, chewing tobacco/snuff suffered a slight decrease by 2.1%, while spitless tobacco increased in dollar sales by 35.3%.
“We think this category is important to our sales mix and customer choice. We address this
Source: IRI, a Chicago-based market research firm, data for total U.S. convenience stores for the latest 52 weeks ending July 10, 2022 Growth
Category Management | Smokeless Tobacco
SMOKELESS GROWS IN C-STORES
For Pete’s Convenient Stores, which operates 50 stores in Missouri, Kansas and Oklahoma, moist represents 59.31% of the total “all other tobacco” category and 18.22% of the total tobacco category.
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“The popularity of ZYN along with the program offered by Swedish Match really helped us grow the category,” Fleck stated.
fast facts:
• Smokeless tobacco sales grew 5.1% to $7 million for the four weeks ending July 10, 2022, per IRI.
Category Management | Smokeless Tobacco 48 CSTORE DECISIONS • September 2022 cstore decisions.com
On the regulation front, in October 2019, the FDA authorized the marketing of eight Swedish Match USA Inc. snus smokeless tobacco products sold under the “General” brand name through the modified risk tobacco product (MRTP) pathway.
category with the intent of having zero outof-stocks and offering promotions as often as possible,” added Elsworth.
• Spitless tobacco dollar sales saw the biggest bump, increasing 35.9% to $1.5 million for the four weeks ending July 10, 2022, per IRI.
As FDA regulation impacts cigars and cigarettes, as well as e-cigarette and electronic nicotine delivery system products, retailers can be satisfied that smokeless tobacco is not currently under new FDA scrutiny.
For Cenex Zip Trip, which operates 40 stores with the recent addition of a truck stop outside of Sioux Falls, S.D., ZYN is performing well, espe cially since the chain added ZYN zones into most stores. Its overall unit sales are within 10% of total Copenhagen numbers. Cenex Zip Trip ideally tries to merchandise all smokeless products together, yet smaller spaces do not always allow the c-store to do so.
“Most of the items in the smoke-free, spit-free nicotine categories are doing well, while the traditional smokeless segments … are struggling, with the exception of Skoal,” said Jon Fleck, merchandise manager, Cenex Zip Trip. Fleck noted that with the high cost of fuel and downturn in gallons purchased, the chain struggled over the past seven months to reach its 2021 sales at many sites. Despite this, the smokeless category had an almost 8% increase in sales.
UNDER THE RADAR OF REGULATION
Additionally, in April 2022, the FDA released a report detailing its attempt to warn male youths aged 12-17 in rural areas of the effects of using smokeless tobacco. The campaign was launched in April 2016 and concluded in 2020. CSD
In October 2021, four new oral tobacco products manufactured by U.S. Smokeless Tobacco Co. LLC under the brand name of Verve were authorized for marketing.
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According to NielsenIQ’s July 2022 report, “A Mid-Year Look at RTDs,” the segment is up across the board, with spirits-based RTDs leading the way with a 55% increase in sales compared to last year.
50 CSTORE DECISIONS • September 2022 cstore decisions.com
The pandemic made people rethink a number of things, including their desire to try new products. In the convenience store industry, this became apparent among alcoholic beverage purchases, where consumers were interested in trying new flavors, segments and types of beverages. But with gas and other prices going up, is another change on the horizon for the category?
One of those items is RTD beverages, especially spirits-based RTDs.
Brad Perkins • Contributing Editor Ready-to-drink cocktails are driving excitement in the alcoholic beverage segment.
Over the past year, the ready-to-drink (RTD) segment and spirits have led the way in the alcoholic beverage category, with Nielsen data showing that spirits sales were up 7.8% from June 2021 to June 2022, while beer sales dropped 4% and wine sales dipped 2%.
Category Management | Alcoholic Beverages
SPIRITS-BASED RTDS SURGE
“In the world of spirits, we’re seeing tremendous growth and increased demand for high-priced bourbon and tequila,” said Eric Patterson, merchandising manager for Beacon & Bridge Market, which operates more than 30 c-stores in Michigan. “It seems like the pandemic drove customers to experiment, and they decided they really like things they might not have tried otherwise.”
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Total RTD sales were up 1.3% over 2021, with hard seltzers covering 43% of those sales and spirits-based RTDs accounting for 10.5%.
Category Management | Alcoholic Beverages
•
Spirits Lead Dollar Sales Growth at C-Stores
“I think a lot of retailers are taking a hard look at their overall store assortment and abandoning the one-stop-shop mentality,” he said. “The adult bever age category and others like it have grown larger than ever, and they are really what’s driving traffic into stores.”
Beer sales dipped 4.2% while dollar sales of total spirits grew 7.8% at convenience stores for the 52 weeks end ing June 18, 2022, per NielsenIQ. W/E June 18, 2022
Latest 52 Weeks -
Category $ Change 1-Year % Change Beer/FMB/Cider $22.8 B -3.3% Beer $19.0 B -4.2% FMB/Cider $3.80 B 1.6% Total Wine $1.50 B -2.6% Total Spirits $3.10 B 7.8% 52 CSTORE DECISIONS • September 2022 cstore decisions.com
Source: NielsenIQ Total U.S. Convenience Data for the 52 weeks ending June 18, 2022
fast
“I think we’re going to see more customers going back to premium and below premium beer brands and shopping the above premium and craft a little less often,” Patterson said. “I think the seltzer cus tomer is always going to be the seltzer customer but, with time, I think some of the higher-priced ancillary brands will give way to the White Claws and Trulys of the world simply because they are able to maintain a more affordable retail.”
Patterson noted that as cost concerns grow, some customers may focus more on lower price points. However, the growth of RTDs, the popularity of selt zers and the desire to try new items is not going away anytime soon, especially as travel continues to pick up.
“New cocktail entrances are positively impacting spirits-based RTDs,” the report said, noting that the category is “significant and growing cross-category drinkers.”TheRTD category overall has seen $4.8 billion in offpremise sales in 2022 alone, driven by a 4.8% increase in sales in convenience stores. It’s a trend that’s not only great for consumers, but for stores in areas with more restrictive liquor sales laws.
“The ready-to-drink segment is exploding, similar to what we saw seltzers do a few years ago,” Patterson said. “The biggest difference, I think, is going to be the staying power of some pretty big names from the liquor side of our business. Brands like Jack Daniel’s, Jim Beam, Svedka and Crown Royal have entered the game in 2022, and those are the brands that custom ers recognize and naturally gravitate to.”
And that could be key as inflation, high gas prices and other hits to customers’ wallets lead them to revisit their choices when visiting the liquor aisle or beer cave.
CSD facts: • Spirits-based ready-to-drink beverages saw a 55% increase in sales compared to last year, according to NielsenIQ. Customers are seeking variety from trendy flavors to new types of alcoholic beverage offerings.
“Up until now we only had nine stores that could legally sell high-proof spirits,” Patterson said. But because spirits-based packaged drinks at 5% ABV or below are leading the sales, according to Nielsen, it opened new markets. And that’s led RTDs to follow the model seltzers began when they were first introduced.
While beer remains king, even that category isn’t immune to fluctuations in demand and price points.
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When Americans are craving something crunchy, nothing satisfies like a bag of chips, pretzels or other salty snacks. Even the more health-conscious consumers are finding better-for-you versions of their favorite munchies to suit their tastebuds and lifestyles.
Over the past year, total salty snack dollar sales have risen 13% from $7.4 billion to $8.3 billion, according to a NielsenIQ Total U.S. Conve nience report for the latest 52 weeks ending July 2, 2022. Pop corn and tortilla chips are leading the pack, both increasing 18.4% with pretzels coming in next at 17.8%.
Crunching the Numbers on Salty and Healthy Snacks Marilyn Odesser-Torpey • Associate Editor Salty snack sales are soaring as customers reach for new taste sensations and better-for-you options. Category Management | Salty Snacks 54 CSTORE DECISIONS • September 2022 cstore decisions.com
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“We are finding and stocking more products that fit both criteria and customers are respond ing,” Eaton said.
proprietary brand of potato chips also sell extremely well. “They’re a high-quality prod uct that we sell at a price of two for $2, less than the other brands,” she said. With their better-for-you ingredients and bold flavors, Havsies Popcorn varieties, a higher-end line, is pushing all the right buttons with Nouria customers. The OG, with its combination of spice and sweet caramelization, and the Elote Mexican street corn variety are flavors that move exceptionally well. Customers like to engage with products that have a story behind them. Eaton pointed to the example of Dot’s Pretzels, a family-owned business started by a woman in her home kitchen. Eaton promotes the snacks on aisle sig nage, social media, the company’s website and Nouria’s app. She foresees launching more betterfor-you salty snacks to display on end caps.
Among the most popular selections are Wonderful shelled pistachios, Takis tortilla chips —“they’re on fire for us, tripling in gross and dollar sales,” Eaton noted — and popcorn. A new concept that is catching on is the baked 100% cheese nugget snack from Moon Cheese, sheNouria’ssaid.
At Nouria Energy’s 150 convenience stores in Maine, New Hampshire, Massachusetts and Rhode Island, gross and dollar sales of tradi tional salty and better-for-you snacks have at least tripled, resulting in double-digit growth over the past year following a category reset and the introduction of new items, reported Meghann Eaton, category manager for salty snacks, beer, wine and liquor for Nouria. She pointed out that an increasing number of customers are gravitating toward products that combine saltiness with bold flavors for snacks they can enjoy even on keto, low-carb and lowsugar diets.
Category Management | Salty Snacks NielsenIQ, Total U.S. C-Store data for the 52 weeks ending July 2, 2022 Snack Sales Trend Upward Salty snack dollar sales increased 13.1% at convenience stores for the 52 weeks ending July 2, 2022, per NielsenIQ. Vegeta ble-based salty snacks saw a 20.9% jump as customers look for better-for-you snacking options. Description $ Sales 1-Year % Change Salty Snacks $8.38 B 13.1% Bagel Chips $340,336 45.2% Cheese Snacks $806 M 15.6% Corn Chips $503 M 12.7% Meat Snacks $2.01 B 10.1% Multigrain Snacks $93.1 M 7.2% Popcorn $329 M 18.4% Potato Chips $2.05 B 13.0% Snack Mixes $499 M 9.1% Tortilla Chips $1.31 B 18.4% Vegetable-Based Salty Snacks $47.6 M 20.9% 56 CSTORE DECISIONS • September 2022 cstore decisions.com
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Green Zebra aggressively promotes salty and better-for-you snacks, frequently partnering with vendors to offer price breaks.
She also uses case stacks — 10 cases stacked off the aisle to draw attention to the products. End caps also bring the snacks into the custom ers’ line of vision. CSD fast facts: • Better-for-you snacks have gone main stream.
• Bold flavors prevail, but customers are seeking more complex tastes rather than just hot.
Snack
CHANGING CUSTOMER PALATES
“They’re looking for more complex flavor sensa tions like Korean barbecue instead of just some thing that’s just mouth-burning,” she added.
Tracking Salty
Vegan and organic versions of familiar snacks such as cheese puffs, potato chips in a can and tortilla chips (made with rice) are trending at Green Zebra’s three locations in Portland, Ore., said Lisa Sedlar, the company’s CEO. That’s not surprising, she explained, because Green Zebra is known for its natural products and customers expect to find them here. Among traditional salty snacks, kettle chips have the most enthusiastic following.
cheese snack sales between May 1, 2022 and July 31, 2022 compared to the same period last year, according to data from National Retail Solutions. Category $ Chg% $ Shr Categoryof Chg UnitChg% Units per StoreWeekperChg % of OnlyPurchasedTimesWithinCategory Top Purchase#1 Top Purchase#2 Top Purchase#3 Potato Chips 32.0% 23.6 0.2 19.8% 7.9 14.2% Soft Drinks Fruit Drinks Tortilla Chips Tortilla Chips 45.7% 24.4 2.4 27.2% 8.9 15.3% Soft Drinks Fruit Drinks Potato Chips Cheese Snacks 37.0% 13.1 0.6 21.4% 4.4 12.8% Soft Drinks Potato Chips Tortilla Chips Meat Snacks 5.6% 8.5 -2.1 3.7% 0.4 13.9% Soft Drinks Potato Chips Confection Corn Chips 26.3% 9.5 -0.4 12.2% 1.7 15.0% Soft Drinks Tortilla Chips Fruit Drinks Snack Mixes 22.7% 3.5 -0.2 9.7% 0.6 14.4% Soft Drinks Fruit Drinks Tortilla Chips Popcorn 30.8% 3.6 0.0 18.0% 1.3 12.6% Soft Drinks Potato Chips Fruit Drinks Pork Rinds 19.5% 3.2 -0.3 6.9% 0.4 18.6% Beer Soft Drinks Fruit Drinks Vegetable-BasedSaltySnacks 27.0% 3.4 -0.1 12.7% 1.1 22.4% Soft Drinks Fruit Drinks Tortilla Chips All Other Salty Snacks 29.6% 7.2 -0.1 15.7% Total Salty Snacks 31.1% 17.8% 26.6 58 CSTORE DECISIONS • September 2022 cstore decisions.com
“During Labor Day month we have a line drive on all our kettle chips, featuring a 20% off deal in that aisle,” Sedlar said.
“Customers particularly like the unique limitedtime offer flavors such as dill pickle, Korean bar becue and pepperoncini,” Sedlar said. “They love to try the new taste sensations, and we know that because flavored chips outsell the regular chips.”
Unlike a couple of years ago when burning hot was all the rage, customers’ palates have become more refined, she explained.
Category Management | Salty Snacks
Source: National Retail Solutions (NRS) scan data of 12,790 stores selling non-alcoholic beverages. All change measures are same-store sales (8,001 stores) May 1, 2022 to July 31, 2022 vs. May 1, 2021 to July 31, 2021 Snack Sales sales were up across the board, with the biggest increases in tortilla chip and
Carol Brzozowski • Contributing Editor
In fact, c-store operators are currently faring much better than retailers overall, noted Mike Kostyo, associate director and trendologist at market research firm Datassential.
C-store operators are reporting in creases in overall sales, with cold and frozen dispensed beverage demand among the factors influencing the surge as thirsty customers flock to stores. From trendy flavors to new equipment and promotions, retailers are upping their dispensed beverage game.
Category Management | Dispensed Beverages
DRIVING SALES
BEVERAGEDISPENSED
60 CSTORE DECISIONS • September 2022 cstore decisions.com
“Nearly half — or 47% — of c-store operators say their business has recovered to prepandemic levels, while a whopping 40% say their business is back in growth mode and exceeding pre-pandemic levels according to our July ‘Foodservice Pro Check-In Report,’” Kostyo noted, adding 80% of c-store operators were optimistic traffic would increase in the near future. C-store retailers confirm the trend. With 124 stores in five states, Huck’s Market sales are “up nicely on a same-store basis,” said Dave Grimes, vice president, foodservice for Huck’s Market. He sees customer traffic coming back as well as revived interest in the dispensed segment.
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Fountain is aggressively featured on Huck’s Market’s loyalty app, noted Grimes, adding the loyalty price on a 30-ounce drink is 79 cents every day. The company offers a free fountain beverage corresponding to various “holidays” such as National Friend ship“WeDay.ran a ‘buy one, get one free’ to give the second one to a friend,” said Grimes. “We try to find clever ways to connect promotional activity to the vari ous national holidays out there.”
Adam Kaverman, assistant category manager, Beck Suppliers, said sales within the dispensed beverage category have been growing back to prepandemic levels at FriendShip Stores as well.
Sales also are up at The PRIDE Stores, with 15 sites in the Chicagoland area and one in Indiana, noted Nicolette Jaeger, director of merchandising and loyalty for The PRIDE Stores.
Category Management | Dispensed Beverages
FriendShip partnered with Freezing Point at the beginning of the year and in March introduced Frazil to FriendShip customers, installing more than 40 Frazil drink machines to replace existing frozen beverage equipment, with plans to expand to 52 machines throughout 21 locations.
“The fresh fruit flavors and refreshing offerings from Frazil are driving a large double-digit growth in frozen drink sales year over year,” said Kaver man. “Continued promotions bundling FriendShip Kitchen’s fresh, hand-breaded, FriendShip Famous Chicken tenders with a fountain beverage of choice continue to show strong customer demand and provide growth year over year.”
“Some is migration back to dispensed beverage from the cold vault as the price gap widens and people are less sensitive to COVID-19 as they may have felt packaged beverage was the safe alterna tive in the COVID environment,” Grimes noted.
“Customerssaid.continue to look for new and healthier options as they shop, while also reaching for old favorites,” he added.
Huck’s Market also pairs fountain drinks with food items, offering loyaltyonly deals such as ‘buy a hot dog, get a free fountain beverage,’ said Grimes.
Dispensed beverage sales are rising to or have exceeded pre-pandemic sales, with retailers maintaining high hopes that traffic will continue to increase.
“We are also experimenting with Fresh Blends and have expanded fro zen carbonated beverage offerings at new and remodeled stores,” he added. “We added a couple of different Moun tain Dew varieties to fountain.”
Innovations, new flavors and promotions drive growth for the category.
62 CSTORE DECISIONS • September 2022 cstore decisions.com
“Changing consumer habits have shifted daypart consumption, while frozen beverages continue to see new innovations and flavors to drive growth within the category,” he added. Refreshed and new flavor and drink options con tinue to boost sales at FriendShip’s 29 Ohio stores, Kaverman
“We strive for creating an offer that separates us from our competition and exceeds our customers’ expecta tions,” Jaeger said. “We have imple mented draught stations at multiple locations, which dispense nitro, cold brew, iced tea and hand-crafted sodas.”
FOUNTAIN TRENDS
•
• Cold and frozen dispensed beverages are help ing drive traffic back to c-stores post-pandemic.
Category Management | Dispensed Beverages
• Twenty-one percent reported increasing slushies or frozen drink sales, with 68% saying they stayed the same.
Fifteen percent reported increasing fountain iced tea sales, and 67% indicated they stayed the “C-Storessame. were always going to fare better as con sumers started getting back to their normal routines,” Kostyo said. “It helps that c-stores have done such a good job modernizing their foodservice programs, with consumers giving the segment higher marks every year. While there are certainly some issues that the segment is dealing with — from labor shortages to high gas prices — it may also benefit from con sumers looking for more fill-in trips in the future as they cut back on supermarket and restaurant visita tionOpportunitiesfrequency.” also exist for c-store retailers to better appeal to dispensed beverage customers.
At Huck’s Market, banana and Tiger’s blood have done well, said Grimes.
Twenty-one percent reported increasing fountain juice and lemonade sales, with 64% saying they stayed the same.
CSD fast facts:
64 CSTORE DECISIONS • September 2022 cstore decisions.com
“We often see this type of offering in relation to fountain beverages where a small, medium and large are all the same price,” he said. “With prices rising, that type of deal resonates with c-store consumers. There has been a lot of innovation in the beverage category in recent years. C-stores have to stay on top of it.”
•
According to the “C-Store Foodservice Keynote Report,” 63% of consumers are interested in pricing multiple sizes of an option at the same price, yet only 24% of c-store operators offer the option, Kostyo pointed out.
According to Datassential’s “C-Store Foodservice Keynote Report,” as of last year, about a third of cstore operators said fountain soda sales were increas ing, while 53% said sales stayed the same.
Current frozen drink flavor trends for FriendShip include time-tested favorites such as cherry and blue raspberry with customers seeking fresh new flavors such as peach and root beer float, noted Kaverman. Kostyo pointed out exclusive flavors, functional beverages, globally inspired options such as aguas frescas, iced coffee, seasonal offerings and custom ization are all key to keeping a dispensed beverage program on trend and exciting to consumers.
As for beverage flavor trends and preferences, Jaeger noted The PRIDE Stores’ most popular handcrafted soda flavors are watermelon and pineapple.
• As prices increase due to inflation, charging the same flat rate for a fountain drink regardless of cup size can resonate with customers.
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Category Management | Menthol Column
Ban Away: WHAT FDA’S MENTHOL BAN WILL MEAN FOR C-STORES
66 CSTORE DECISIONS • September 2022 cstore decisions.com
manufacturers are urging retailers to write their congressman, the National Association of Convenience Stores (NACS) has requested a 60-day extension on the Food and Drug Ad ministration (FDA) comment period, and some folks are hitting the Doomsday button if they are servicing a highly mentholated market. All good reasons to worry as most would agree. But what if I told you to relax, to not worry and that all the sales you have today will still be there after the ban with potentially even better margins than before?
Steve Sandman • Contributing Editor
The tobacco category has weathered similar “transitions,” as I call them, in the past. These previous transitions serve as a good reminder of the industry’s resilience and counterbalance the doom and gloom being hyped by certain seg ments of the industry and the media.
In my almost 40 years in the nicotine industry, we have seen many product categories rise to significance in the c-store world, and many that have become irrelevant to the daily business. Almost 25 years ago, the Master Settlement Agreement (MSA) that imposed the framework around cigarette liability was touted as the end of the cigarette business as we know it, but does anyone in the retail trade even have enough knowledge of it today where they could explain the MSA and what impact it has had on their business? What about FDA regulation of tobac co? Has anyone seen a net loss in their sales and profits because of it? Loose cigarette tobacco was taxed beyond what the average consumer could afford, but pipe tobacco took its place within six months. Little cigars were taxed federally like cigarettes, The looming menthol ban has been hang ing over our heads for many years now, but as it becomes closer to a reality, many retail ers have shared their anxiety over what the future of the cigarette category will look like.
The worries over the ban certainly impact some retailers more than others, and there’s a direct correlation to the amount of menthol sales a retailer enjoys and how concerned they are with theSomeban.
While the Food and Drug Administration has signaled plans to eliminate sales of menthol cigarettes and characterizing flavors in cigars, retailers don’t need to press the Doomsday button just yet.
The tobacco category has survived such transitions before.
Almost every smoker will take a cigarette that’s a different style than their own if they run out of their preference and don’t have an option to go somewhere else, and we all know people that will do that. Why is menthol any different? It’s not. Flavored cigars will most likely go by the wayside too. The biggest question is whether “sweet” is a flavor or not, but that becomes a share of market issue with one company being the big sweet winner or loser, depending on the outcome. Flavored cigars were a boon to the cigar business and still command a large share of the market today. But did you know the biggest boon to the cigar business was individually bar coding single sticks, which allowed chains to capture and promote the single-cigar market?
As 2022 unfolds, the industry is looking at a ban of menthol cigarettes and flavored cigars as the two most notable skies that are falling. Menthol is a product characteristic of a cigarette, no different than a king-sized or 100-millimeter smoke, or a thin cigarette compared to a wide cigarette. Plenty of people prefer menthol cigarettes; however, eliminating menthol will not eliminate the desire for a smoker to purchase an alternative cigarette.
The elimination of flavored cigars and menthol cigarettes will bring about a significant reduction of items a store will need to carry. This will not result in lost sales overall for the category. Retailers should see increased turns as fewer dead items sit on the shelf. They will no longer be faced with the flavor of the month that some manufacturers use to support their own company sales objectives.
Consumers will easily change products as virtually every flavored cigar is available in a regular or sweet style. Many retailers have complained over the years to me about the proliferation of hundreds of flavored SKUs in the category, with many of them collecting dust and manufacturers not honoring the return of slow sellers. Is the sky falling or is this a benefit to managing your nicotine assortment?
A MARKET SHIFT
Also, expect a shift in cigarette market share due to the elimination of menthol, and while that becomes an intra-industry battle for market share as those switches take place, it may also mean the elimination of everyday low price (EDLP) programs as leverage abates. This can translate into more lowpriced assortment for cigarettes, which most often bring higher margins and penny profits as more competition is created for sales in your stores.
The history of the category is truly one of resilience, and there’s many more examples of it than I have recounted here. Most of the noise asking you to “fight and write” are from manufacturers that feel like they’re vulnerable based on their own portfolio to unfavorable shifts in their market share, or industry pundits enlisted to support the industry under the guise of objectivity.
So, if you haven’t been in this category for a long time, reach out to someone you know that has, and I’m certain they will tell you to not worry. The category won’t be going away. In fact, it may get stronger with fewer products to criticize, but that produce a higher turn rate and more profits.
Steve Sandman has worked in the tobacco industry for nearly 40 years, most recently as president of Republic Tobacco. His extensive experience includes product management. He can be reached at (812) 569-1388.
and yet heavier filtered cigars are still being sold for 99 cents in some markets. With all the taxes imposed and price increases, I just saw a pack of cigarettes for $3.24 this past week in Indiana. And who can forget the ban of e-liquids and the manufacturer elimination of flavored Juul products?
Category Management | Menthol Column 68 CSTORE DECISIONS • September 2022 cstore decisions.com
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The FDA announced plans in June to implement a maximum nicotine level to reduce the addictiveness of cigarettes and certain other combusted tobacco products.Thequestion for convenience store retailers becomes: is there a way to offer a true alternative to tobacco cigarettes and one that is not nicotinebased that would appeal to customers looking to reduce their nicotine intake?
As the Food and Drug Administration (FDA) continues its regulation of the tobacco category, manufacturers are developing products that are less harmful, fly under the government’s regulatory eye and may even help cus tomers quit traditional cigarettes.
OPPORTUNITY NICOTINE-FREEINSMOKINGALTERNATIVES
Howard Riell • Contributing Editor
70 CSTORE DECISIONS • September 2022 cstore decisions.com
Category Management | Smoking Alternatives
As tobacco regulations continue, some retailers are integrating alternative smoking products with low or no nicotine into their tobacco sets.
One way, according to Ray Johnson, the owner and operator of 22 Speedee Mart convenience
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72 CSTORE DECISIONS • September 2022 cstore decisions.com
“You keep reading that the FDA wants to make menthol illegal, and they want to reduce the nicotine levels in cigarettes,” said Johnson. “We have this war on tobacco, and at the same time the states are say ing, ‘Oh, we like marijuana now.’ But the war on to bacco is not going away; it just keeps right on going.”
“The future of any novel smoking product is based on several factors: how they market their products and whether there is a major uptick in youth use of these products,” said Stroud. “While the FDA has authority to regulate nicotine tobacco products and was recently granted authority to regulate non-to bacco derived nicotine, the FDA has limited author ity in addressing any possible youth use of non-FDAregulated smoking products.”
“You can’t put the genie back in the bottle and tell people ‘You can’t smoke,’” Johnson continued. “The people who want to smoke are going to smoke, so you find them something that’s government ap proved. My goal always is, what can I legally do, and make a profit and make the customer happy?”
Convenience stores will continue to meet the regulatory challenges on behalf of their customers.
Zero nicotine, zero tobacco cigarettes offer an alternative for customers who enjoy smoking but want a reduced-risk option or a product that might help them quit traditional cigarettes.
Johnson has also expressed interest in 22nd Century Group’s VLN brand, which contains at least 95% less nicotine as compared to conventional ciga rettes sold in the U.S., but he’ll need to wait for the product to arrive in his market. Currently, VLN has been rolled out in a small number of test markets. VLN uses genetically modified tobacco plants that produce less nicotine, and it is the first combustible cigarette authorized by the FDA.
“The government keeps throwing challenges at us,” Johnson concluded. “‘How are you going to stay in business when we keep giving you these new rules?’ Now they want to change the warning signs. It’s end less stuff, and you’ve got to figure out what you can do to maintain this category and make the govern ment happy.”
stores in Las Vegas and Henderson, Nev., is with a nicotine-free cigarette called TAAT. TAAT is mar keted as offering smokers “tobacco flavor, scent and ritual with zero nicotine and zero tobacco.”
CSD fast facts:
But FDA regulations aren’t likely to change cus tomer demand for smoking, he said.
“A non-nicotine alternative to cigarettes is a unique solution for public health to move adults away from tobacco and nicotine products completely,” noted Lindsey Stroud, director, consumer center for the Tax payers Protection Alliance in Washington, D.C.
PREPARING FOR TOMORROW
Category Management | Smoking Alternatives
For Johnson, incorporating nicotine-free smoking products like TAAT into his tobacco set can only offer opportunity and position him for the future of the category.“Tome, the trend is going to go this way, and I try to always jump out early on stuff,” he said. “It’s a low risk for me to try new products like this, but then I like people to know that anything new, you will see here first.”
• As the Food and Drug Administration puts nico tine levels in its crosshairs, retailers are adding smoking alternatives.
•
“It doesn’t have any nicotine (or tobacco) in it, but it smells and tastes like tobacco,” Johnson ex plained. “If you are trying to reduce your nicotine intake, you are still getting the smoke, and it tastes like you are getting a cigarette, but you are not get ting the nicotine. I think it’s going to be a product that will be in higher and higher demand.”
Speedee Mart carries three TAAT SKUs. The chain also stocks a pair of SKUs of Kong Hemp Cigarettes.
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Some 54% of small business owners saw an uptick in shoplifting in 2021, according to the U.S. Chamber of Commerce. What’s more, ORC cost stores an average of more than $700,000 per $1 billion in sales in 2020, a rise of more than 50% in the last five years.
• Contributing Editor
Howard Riell
SIRENS AND STROBES
As prices rise, cases of cigarettes have become an increasingly attractive target for thieves.
“Right now, due to tax increases on tobacco, cigarette break-ins have become more frequent,” said David Moewes, asset protection manager for Boulder, Colo.-based Smoker Friendly, which operates 180 stores in eight states, including 15 Tobacco Depots in Florida. “It’s not just one or two cartons like it used to be. Now they break in and take cases of cigarettes.”
From video equipment and artificial intelligence to tried-and-true best practices, retailers are using a range of solutions to combat theft.
As inflation looms, organized retail crime (ORC) is on the rise, causing the U.S. Chamber of Commerce to call it a “national crisis” and ask Congress to take action. It’s not only large retailers being impacted.
In other words, it’s never been more important for retailers to improve their security tactics.
Technology is helping retailers step up their loss prevention strategy, according to Chris McGoey, principal of McGoey Security Consulting in Los Angeles.“Video surveillance equipment is better and cheaper,” McGoey said. “Inventory control is easier with scannable SKU numbers on most items. Technology can help a lot by analyzing point-of-sale (POS) and video software algorithms. Proper POS programming will detect employees who do not ring sales within expected ranges by shift and day of the week.”
Technology | Loss Prevention WHAT’S YOUR PREVENTIONLOSSSTRATEGY? 74 CSTORE DECISIONS September 2022 cstore decisions.com
Retail theft remains a key concern for retailers.
“Years ago our biggest theft item was fuel, but we went all pre-pay years ago,” said Anthony Perrine, the owner of Lou Perrine’s Gas and Grocery. “Periodically, someone will scarf down a hot dog or something when no one is looking. We have had just about everything you can think of stolen by someone, but the main items are anything small that can fit in a pocket.”
“This has been a great deterrent for several locations we operate in,” Moewes said. “When all else fails, we have gone to a roll-down steel door. These systems can cover the entire glass and doors to the store. Very expensive, however it works very well.” Moewes’s advice to colleagues is to always keep cash secured in the safe rather than left out, keep the cash in the registers to a bare minimum and don’t leave safes open all day long.
• Retailers employ a number of tactics to reduce theft, from training and surveillance to best practices in cash handling and inventory •management.Asthecostof loss prevention technology such as video equipment comes down, more retailers are able to take advantage of these solutions.
CSD cstore decisions.com September 2022 • CSTORE DECISIONS 75
Recently, Perrine has been speaking with artificial intelligence (AI) companies about creating a frictionless store, which would go a long way toward preventing theft. More than just self-checkout, frictionless retail offers a seamless ecosystem of shopping experience that incorporates checkout and payment options, real-time customer service and consumers’ delivery preferences.
“The only way you can get into the store would be by having the app; the technology automatically recognizes you and charges you accordingly,” Perrine explained. “The cameras tie in at the check-in or checkout point with everything you have purchased. You can have cashiers, and you still need employees for stocking shelves and handling age-restricted items, but it’s almost like trick or treating, where you walk in, take what you want and walk out.”
fast facts:
What Smoker Friendly has done is add sirens to stores’ alarm systems, as well as strobe lights. Indeed, several manufacturers have begun making cameras with sirens and strobes built in. Once they detect motion the lights and siren sound off.
Stopping theft begins with ensuring associates have proper training on how to prevent, detect and report it, noted Steve Boyd, loss prevention vice president for the Army & Air Force Exchange Service (AAFES), which operates 589 Express convenience stores and 122 main Exchange“Expressesstores.also review inventory adjustments for indications of loss of product, and highly pilferable items are displayed within sight of cashiers,” he added. Many Express stores have CCTV recording for security and theft-detection purposes. High-value items may also have electronic article surveillance (EAS) tags. Analysts study cash register reports and POS data to ensure cash register compliance and identify any anomalies.
At Lou Perrine’s Gas and Grocery in Kenosha, Wis., which opened its second store in April, grab-and-go products such as candy bars and foodservice items are the primary targets for thieves.
FRICTIONLESS BENEFITS
“Technology like AI checkout or cashier-less stores can reduce theft in c-stores,”confirmed Ken Morris, managing partner in Cambridge, Mass.-based consulting firm Cambridge Retail Advisors. “All products are accounted for and recognizable. Users are also identified upon entry and exit of stores.”
TRAINING & INVENTORY CHECKS
“Take the deposit to the bank immediately. Place the deposit back in a purse or other bag so that no one is aware what’s inside,” he said. Put your orders up and on the racks and shelves as soon as possible. “That way no one can select a case and run out of the store with it,” he added.
The largest benefit (to LED) is energy savings,” said Tara Hughes, senior energy & sustainability analyst, RaceTrac. “After transition ing stores to LED lighting, we were able to reduce lighting energy consumption by approximately 13,000 megawatt-hours. This saved our business approximately $1 million in spend on electric ity over the course of the transition to LED.”
LEDs, Energy Efficiency
Emily Boes • Associate Editor
C-stores switch to LED lighting and find methods to transition to energy-efficient operations.
Businesses are increasingly turning to more ad vanced modes of operation. C-stores are using LED lighting and energy-efficient technology to update their locations and realizing financial and mainte nance benefits with the switch.
LEDs, Energy Efficiency Take Precedence Technology | LED and Energy Efficiency 76 CSTORE DECISIONS September 2022 cstore decisions.com
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RaceTrac does not have to replace bulbs as fre quently with LED lighting, which reduces its spend on labor to maintain the stores and costs of energy uses LED lighting in its travel cen ters, offices and other locations. Pilot and its Flying J travel center network operate more than 750 loca tions in 44 states and six Canadian provinces.
“In addition to the energy savings, LED improves the appearance of our stores and parking lots,” said Martin. “We pride ourselves on providing
78 CSTORE DECISIONS • September 2022 cstore decisions.com
At Pilot Co., maintenance costs have been saved by switching to LED, as lightbulbs, lamps and bal lasts inside the fixtures do not have to be replaced regularly. According to Martin, energy savings is the main benefit to using LEDs.
“It is also very important to us to have well-lit stores and bright external lighting. Some of our stores are in dense urban environments, and we want our customers to feel safe at night with an in viting store front and forecourt that is well lit,” said Gilligan. “Aesthetically, LED is much nicer than the older fluorescents. They stay a consistent color and do not turn yellow over time as they burn out.”
“Technology is always changing. We are always looking for ways to be more energy efficient and create an environmentally sustainable business that reflects our goals and our customers’ desires,” said Mike Gilligan, vice president of Gilligan’s Retail.
“We have been able to achieve many of our goals with LED and utility management, and we continue to keep an eye on the new technology coming out that can increase our energy efficiency.”
consumption.PilotCo.also
LED ADVANTAGES
Gilligan’s Retail, which operates 10 sites in Ari zona and two in Montana, is another c-store chain that heavily invested in LED lighting, both in the interior and the forecourt.
“As of January 2022, Pilot has completed lighting upgrades in nearly 475 stores and saved more than 335 million kilowatt-hours of energy by switching to high-efficiency LED lighting. That is the equivalent of 8.99 million incandescent lamps switching to LED,” said Bryan Martin, senior manager, energy and utilities at Pilot Co.
Gilligan’s decided to switch to LEDs to increase energy efficiency and decrease maintenance costs, the latter being the main contributor to financial benefits.
Atlanta-based RaceTrac, which operates 567 stores in eight states currently uses LED lighting at all sites, both in the exterior and interior. RaceTrac began the transition to LED lighting as far back as 2013. The chain completed the shift in 2016 and plans to maintain LED lighting specifications at each location, which will ensure all stores continue to employ LED lighting.
with the new online SimplifiandFueldashboardManagementComplianceedUnlimitedaccesstodashboardNoundergroundequipmentchangesATGAlarm,flowrate&downdispenserdetectionAutomatedcompliancereportsAvailableanalystsupport 76 Hammarlund Way, Ste. 200 · Middletown, RI 02842 · 800-972-7472 · 401-846-4747 · Fax: 401-847-8170 · info@warrenrogers.com · warrenrogers.com Gain e ciency across all departments: COMPLIANCE MAINTENANCE SUPPLY ACCOUNTING
CSD fast facts:
• LED lighting is helping retailers decrease their electricity bill.
• Upgrading equipment can help stores decrease maintenance costs. and Energy Efficiency
80 CSTORE DECISIONS • September 2022 cstore decisions.com
ENERGY EFFICIENCY
“This keeps our stores safe while also being energy efficient,” Hughes said of the photocells.
“In addition to energy savings, using LED lighting provides better lighting clarity, improving the safety of our exterior spaces. LED lighting also reduces unnecessary lighting pollution,” Hughes agreed. Along with LED lighting, RaceTrac also takes advantage of photocells that it installed to control exterior lighting. The photocells detect lighting levels, Hughes said, allowing the exterior lights to stay on only when the store needs them. This includes nighttime hours and instances of cloudy weather.
At RaceTrac, a few of the chain’s stores underwent a transition from HVAC units with standard efficiency to ultra-high efficiency.
guests and team members with bright, well-lit and clean facilities, and LED helps us achieve this. Well-lit facilities are important from both an aes thetic and a safety perspective.”
Technology | LED
Pilot Co. has saved more than 335 million kilowatt-hours of energy by switching to high-efficiency LED lighting as of January 2022. The chain prides itself on providing bright, well-lit facilities for its guests and team members.
• Well-lit stores help customers feel safe at night.
“Our overall goal is to drive energy efficiency at our stores in any way possible. We are continuously investigating new technology and market trends to identify opportunities to make our stores more energy efficient,” Hughes said. Pilot Co. stores are equipped with energy management systems (EMS), which monitor energy-intensive equipment such as lighting, HVAC and refrigeration. Pilot will continue to use the data from the EMS system to identify patterns and opportunities for continued improvement.“Aspartofthe New Horizons initiative, the construction team is conducting a test and balance of the HVAC systems as well as evaluating the building envelope for further efficiency improvements,” said Martin. Gilligan’s contributes to its energy efficiency by using smart thermostats and programing to keep the thecomfortable.temperatureThispreventsenergywasteofconstantlychangingtemperatures.
The Conversations With Women in Convenience Webcasts feature discussions with women executives in the convenience store industry about their experiences as women in business.
September 15th
Conversations with Women in Convenience
• September 27th
Register at: https://wtwh.me/CWWIC Sponsored
CStore Decisions Webcast series
Part Two of this series takes place on Sept. 27 at 2pm, and features a panel discussion with Angelle Cloud, foodservice compliance director and corporate dietitian for Shop Rite, and Shelly Gibson, chief legal and people officer at Thorntons. You will automatically be registered for the second part of this series when you register for part one. 2pm 2pm by
Part One of this series takes place on Sept. 15 at 2pm, and features a panel discussion with Laura Varn, vice president of people & culture and communications at Parkland USA, and Kelley Gutierrez, senior category manager for MAPCO.
This two part webinar series addresses topics such as how our generational differences shape our experiences in the workforce, the challenges that women still disproportionately face today, building more inclusive workspaces and how women are driving changes in the workplace today.
Because these early adopters were better able to meet customers’ immediate needs and preferences for digital interactions, they estab lished trust and convenience. Now, they can move to the next stage in their digital transfor mation: creating valuable, memorable, and even fun experiences that cultivate authentic “brand love” — while the competition is just getting warmed up.
Many convenience and fuel retailers have yet to realize the value of researching, developing and implementing a digital market ing strategy that specifically drives customer engagement. ADVANCE DIGITAL INITIATIVES
3 82 CSTORE DECISIONS • September 2022 cstore decisions.com
Since few of these retailers have built a dedi cated, fully capable marketing team — and the IT resources to support it — most brands are limited in the level of digital engagement they canHistorically,achieve.
Category Management | Digital Marketing Kevin Rice • Bounteous WAYS A GROWTH PARTNER CAN
FINDING A GROWTH PARTNER
Brands that were early adopters of digital en gagement are now seeing the fruits of that labor. They were more prepared than their competitors when the pandemic hit because even if their systems weren’t perfect, at least a strategy was in place and could be evolved over time.
Wawa, for example, engages its legions of loyal fans via digital channels that allow them to order delivery, use curbside pickup, find fuel prices, purchase gift cards and even apply for jobs — but their path to digital maturity began many years ago.
Retailers who are just embarking on this journey shouldn’t worry, but they should act now. Brands can make up for lost time by working with a digital growth partner.
ENGAGEMENT
c-stores have evolved their digital marketing plans at a slower pace than other re tail verticals. However, a handful of c-stores have indeed shown a dedicated, strategic approach and are now seeing the fruits of their labor.
C-stores that were early adopters of digital marketing thrived in the pandemic, but those just starting the digital journey can still make up for lost time.
For additional information, contact NAG Executive Director John Lofstock at jlofstock@wtwhmedia.com. March 26 -29, 2023 Save the date and join us LIVE! THE MOST AWAITED C-STORE EVENT OF THE YEAR!
A growth partner should possess a wide range of knowledge and offerings — such as market ing strategy, data analytics, experience design, commerce, customer engagement and customer relationship management (CRM) — and be able to help you identify opportunities for improvement or advancement.Mostimportantly, they can set you up for suc cess by helping you avoid the mistakes and pitfalls — both financial and operational — other brands have experienced navigating the path alone. Engaging with a growth partner should be a true partnership, since your goals are their goals. You should be able to communicate clearly, openly and honestly with them. Conversely, you must be ready to accept their suggestions and constructive criti cism, even if you don’t act on them.
One of the biggest challenges for retailers is aligning their technology strategies with their mar ketingOften,objectives.theseexist in silos with little interdependence. A growth partner that has both marketing and technology expertise can integrate marketing needs with planned technology investments to ensure digital engagement initiatives are not hamstrung due to a lack of coordination between these two critical areas.
Here are three ways a growth partner can help advance your digital engagement initiatives.
Category Management | Digital Marketing 84 CSTORE DECISIONS • September 2022 cstore decisions.com
1. BRIDGING STRATEGIES
So, what exactly is a growth partner?
3. IDENTIFYING RELEVANT & AGILE PROGRAMS
2. CLEARLY DEFINING OBJECTIVES
Marketing technology evolves quickly with new platforms emerging every year. Many retailers don’t have the time or resources to keep pace with these advancements, much less invest capital at such high levels.
A growth partner can help retailers navigate these technological advancements and how they affect their digital engagement strategy. Should an emerging technology offer sufficient benefit to a retailer’s program, this partner can develop integration plans and refine the existing strategies and future approach.
Kevin Rice is the executive vice president of restaurant and convenience at Bounteous. Rice’s experience driving digital growth for brands has established him as a leading voice for digital transformation in the restaurant and c-store industries.
A growth partner can assist retailers with map ping their customer journeys and defining immedi ate goals — such as launching or redesigning a mobile app or loyalty program — while taking an evolutionary approach to achieve digital engage ment objectives over time. Many retailers rush to launch a single element to match competitors or to simply have ‘something’ for customers to engage with. A growth partner focuses that effort into a disciplined and more comprehen sive strategy that will produce greater customer engagement — and profits — in the long run.
A growth partner might be exactly what your brand needs to stay competitive and meet custom ers where they are.
Engaging with a growth partner can advance convenience and fuel retailers’ marketing strate gies and bring to market a digital engagement program that is positioned for immediate impact and long-term growth. In other words: they can help you make up for lost time.
A common pitfall for retailers is approaching digital engagement in a compartmentalized way. For example, they view a loyalty program or mo bile app as standalone marketing tools rather than elements of a broader digital strategy.
Consumers have stood firm in their shift to purchasing and interacting digitally and on their mobile devices. As c-store retailers continue to adapt to recent challenges and rising inflation, they must focus on digital marketing strategies that specifically drive customer engagement and purchase frequency.
It’s typically an agency or consultancy who can leverage their experience and technical skills to help your brand reach growth goals faster.
Wetstock Management Solution
Pipe-Tipped Cigars
Premier Manufacturing has redesigned the packaging for its 1839 cigarettes, which now feature an eye-catching contemporary design that refreshes the iconic brand. Premier developed a premium visual design that showcases updated brand colors, a cleaner overall look and the distinctive 1839 logo. The bold red and rich blues are some of the colors used in the packaging design that is anchored by historic 1839 elements such as the silhouette of a farmer with the horse and plow on a field image.
U.S. Tobacco Cooperative Inc. www.usleaf.com
Dover Fueling Solutions www.doverfuelingsolutions.com
Wenzel’s Farm is offering a new twist on the classic meat stick with the introduction of Dill Pickle to its line of offerings. Made with naturally smoked meat, the Dill Pickle meat sticks are currently available in eight-ounce packages with a two-ounce option coming later this year. Like all Wenzel’s Farm snack sticks, Dill Pickle has no MSG, no artificial colors and is certified gluten free. Wenzel’s Farm now offers 14 tasty snack stick varieties, all of which are crafted in small batches using premium cuts of meat. Wenzel’s Farm www.wenzelsfarm.com
PRODUCT Showcase
Dill FlavoredPickle-MeatSticks
Swedish Match www.swedishmatch.com
Dover Fueling Solutions (DFS) offers DX Wetstock, a wetstock management solution that allows retailers to pick and choose elements they need to successfully run their business. The solution focuses on enhanced, real-time wetstock monitoring and in-depth loss analysis, followed by compliance and asset management — an element related to wetstock monitoring that is business-critical but not always as visible. With wetstock management from DFS, compliance and asset management is embedded, as it is incredibly beneficial to the overall performance and management of a fuel station.
cstore decisions.com September 2022 • CSTORE DECISIONS 85
CigaretteContemporaryRedesignedPackaging
Swedish Match has introduced a new addition to the White Owl line — White Owl Black Sweets Pipe-Tipped cigars. The new cigars feature either plastic or wood tip styles and come in Classic and Wine flavors. White Owl Black Sweets Pipe-Tipped cigars feature the first FilmFresh clear wrapper that provides the same barrier protection as foil and is 100% airtight so the cigars stay fresh. The cigars are available in 25-count FilmFresh single-stick uprights, in both pre-priced and un-priced formats that allow for retail pricing flexibility.
Long-Lasting Iced Doughnuts
Rich Products www.richsusa.com
Rich Products has introduced four flavors of Fully Finished Iced Donuts, which are easy-to-handle, ready-toserve doughnuts that maintain fresh quality over an extended shelf life, staying fresh two-times longer than other bakery options. The new flavors are Chocolate Iced Yeast Ring Donut, Chocolate Iced Sprinkled Cake Ring Donut, White Iced Raspberry Jelly Donut and Bavarian Crème Long John Donut. The doughnuts come in convenient, recyclable tray packs of six, with eight trays per case, and have a shelf life of 48 hours for yeast doughnuts and 72 hours for cake doughnuts.
Vitamin Energy has increased its selection of energy shots and pill supplements with the addition of Vitamin Energy Burner+. The new product is the company’s first thermogenic fat burner, which provides the body with the daily dietary supplements needed to ensure healthy weight loss. The shot is available following the purchase of a new manufacturing plant in Wilmington, Del., which will help the company to optimize production while also providing fast shipping times on all products.
This summer, Altadis U.S.A. released a new introduction to its Nicaraguan tobacco brand Omar Ortez. The new product — Omar Ortez Connecticuts — is a cigar that delivers a flavor profile that has never been seen in this brand. The cigar features a silky Ecuadorian Connecticut wrapper and a balanced blend of 100% Nicaraguan tobaccos. Just like the highly rated Omar Ortez Originals and Omar Ortez Maduros, the Omar Ortez Connecticuts are available in both 20-count and 60-count boxes.
Altadis U.S.A www.altadisusa.com cstore
Mars www.mars.com
decisions.com
PRODUCT Showcase Weight WellnessLossShot
Vitamin Energy www.vitaminenergy.com Cookie Dough-Flavored Twix Twix announced a brand-new flavor to its lineup: Twix Cookie Dough. The new flavor pairs the classic Twix cookie bars with a creamy cookie dough-flavored layer, sprinkled with chocolate cookie bits, all coated with milk chocolate. Twix Cookie Dough will be available nationwide beginning December 2022 in Single Size (1.36 ounces per bar), Share Size (2.72 ounces per bar) and a Minis Stand Up Pouch (9.7 ounces per pouch).
Nicaraguan Tobacco Cigars
86 CSTORE DECISIONS • September 2022
Coca-Cola Beverage Dispenser
Energy Shot Displays
Living Essentials www.5-hourEnergy.com ing versatility and distinctive style.
Ready-to-Drink Wine Soda
Stock Up on Best Sellers Now! 5-hour ENERGY announced it is celebrating the return of live events by giving shoppers the chance to win a share of $50,000. Unique 5-hour ENERGY LIVE displays are loaded with Extra Strength 5-hour ENERGY shots in flavors of Berry, Grape and Blue Raspberry, and by simply buying a product and uploading a picture of their receipt at 5HELIVE.com, the shopper could have the chance to win one of 500 $100 StubHub e-giftcards. Official rules are available on the website. No purchase is necessary to enter or win.
Woodbridge www.woodbridgewines.com
Bradley Corp. has added a new quartz option — Evero Matte — to its selection of materials for washrooms. Evero Matte — with its natural matte finish, unique understated texture and selection of monochromatic colors — gives a stone-like appearance for commercial hand-washing basins. The washbasins are cast-formed so they are able to be specified in many shapes and forms, providing versatility and distinctive style.
cstore decisions.com September 2022 • CSTORE DECISIONS 87
The new Evero Matte color palette, called the Mason Series, includes eight different colors, such as Mesa White, Limestone, Sandbar, Desert Clay, Lunar Gray, Bedrock, Cinder and Black Onyx. Bradley Corp. www.bradleycorp.com
Quartz Hand-Washing
The new Woodbridge Wine Soda variety six-pack comes in a recyclable box containing brightly colored 250-milliliter cans in three flavors: Grapefruit, Lemon Lime and Orange Soda — which blend quality white wine and natural flavors at 7% ABV per serving.
Basins
PRODUCT Showcase
The Coca-Cola Co. www.coca-colacompany.com
Coca-Cola has debuted its new Freestyle 8100, which is a back-of-house beverage dispenser developed specifically for the crew-serve occasion. The new dispenser’s advanced technology streamlines drink pouring for foodservice crews, helping to reduce drive-through wait times for diners. The dispenser features optional point-of-sale (POS) integration, enabling the Freestyle dispenser to automatically queue a guest’s total beverage order once it is keyed into the POS system without manual drink selection by a crew member. It also features a sleek design with a 24-inch touchscreen and utilizes Coca-Cola’s SmartPour technology.
Woodbridge has released the ready-to-drink Woodbridge Wine Soda. The beverage combines crisp white wine with the refreshing flavor, sweetness and pop of classic sodas. These drinks enhance the sweet taste and fizz of soda with an extra layer of fruity flavors and aromas from crisp, high-quality California white wine in a convenient ready-to-drink can.
©2019 North American Bancard is a registered ISO of Wells Fargo Bank, N.A., Concord, CA, and The Bancorp Bank, Philadelphia, PA American Express may require separate approval. *Durbin regulated Check Card percentage rate. A per transaction fee will also apply. **Some restrictions apply. This advertisement is sponsored by an ISO of North American Bancard. Apple Pay is a trademark of Apple Inc. INESS. PARTNER WITH NAB TODAY866.481.4604FREENFC & E TERMINAL & OR WIRELESS TERMINAL SH S S FREE Credit Card Terminal Placement Wireless/Landline/High Speed/Dial Up Easy setup (with no setup fees and quick approvals) Seamless integration with your current POS $295* * towards your early termination fee (if you have one) with your current processor Access to Payments Hub – our secure, online merchant por tal * * WWW. NYNAB.COM NAB makes it easy to offset your credit card processing fees with our non cash adjustment. ©2019 North American Bancard is a registered ISO of Wells Fargo Bank, N.A., Concord, CA, and The Bancorp Bank, Philadelphia, PA American Express may require separate approval. *Durbin regulated Check Card percentage rate. A per transaction fee will also apply. **Some restrictions apply. This advertisement is sponsored by an ISO of North American Bancard. Apple Pay is a trademark of Apple Inc. GROW YOUR BUSINESS. PARTNER WITH NAB TODAY!866.481.4604FREENFC & EMV-READY TERMINAL & PIN PAD OR WIRELESS TERMINAL COMPATIBLE WITH GAS C ARDS W R I G H T E X P R E S S F L E E T C A R D S V O YA GE R A N D M O R E edit Card Terminal Placement Wireless/L tup (with no setup fees and quick approva ss integration with your current POS towards your early termination fee (if you to Payments Hub – our secure, online me per * * WWW. 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SAFETY PERCEPTIONS ARE CHANGING
While these may not seem significant, it does tell us that consumers have become more in-tune with visual inspec tion after the pandemic, a trend we have seen across all grab-and-go and non-commercial service systems.
Tim Powell • Foodservice
While baby boomers and Gen X still deal with percep tion issues from a troubled c-store past, the younger generations will help bolster growth as food has become ubiquitous — from food trucks, to bookstores, to drug stores and just about anywhere else people congregate.
The three essential requirements a successful restau rant (which is what c-stores aspire to be) must follow are excellent food, delivering consistently on the service fundamentals and an exceptional store appearance.
The past couple of years have been unprecedented for the U.S. foodservice industry. When COVID-19 shuttered nearly all of the U.S. economy in March 2020, c-stores were one of the few places left where consumers could escape for a quick snack or a break from home lockdown. As we enter September 2022, there are still several headwinds facing the industry — record high inflation, high fuel prices and a weak stock market — yet c-stores continue to evolve and become relevant to newer generations of consumers.
In the c-store context, most consumers serve them selves and many items are grab-and-go products for a myriad of reasons, chief among them being labor con straints and the desire of the shopper to transact in less than five minutes. Convenience stores, therefore, have a very short window in which to showcase fresh and pre mium with respect to prepared foods.
What’s really important for c-store retailers investing in foodservice to know is that consumer tastes and compo sition will always change.
What retailers can do, however, is strive for controlling those things such as food quality, appearance and staff professionalism, as these are the fundamental elements of foodservice success no matter the external market conditions.
IndustryPerspective
In December 2020, the majority of c-store shoppers judged the freshness of a prepared food item by looking at the expiration date (63%), but by January 2022, “visual inspection” of the food became the top factor (54%).
IP Foodservice IP Since the pandemic began, do you feel safe in a convenience store? (% indicating yes)Q. 59%61%65%67%71% 76% FemaleTotalMale Dec. 2020 Jan. 2022 Source: Foodservice IP C Store Consumer Surveys Foodservice IP 1 Since the pandemic began, do you feel safe in a convenience store? (% indicating yes)Q. 59%61%65%67%71% 76% FemaleTotalMale Dec. 2020 Jan. 2022 Source: Foodservice IP C Store Consumer Surveys 90 CSTORE DECISIONS • September 2022 cstore decisions.com
Lockport, N.Y.-based Crosby’s was one of the first chains during the pandemic to become Safe Shop Assured, a recognition of having met and exceeded a 10-point checklist of essential safety measures. Small measures such as these go a long way to give the firsttime visitor peace of mind.
FRESHNESS CUES
For example, millennials and Gen Z did not experience the industry’s evolution from gas stations offering lone roller grills in a dark corner into stores with the glowing, spacious and welcoming atmosphere of a Thorntons, QuickChek or Rutter’s.
SHIFTING CONSUMER COMPOSITION
C-Stores Must Evolve With the Changing Consumer
Among challenges retailers face are criticisms surround ing the safety of a c-store, particularly whether stores are safe for women shoppers. In December 2020, 61% of females indicated they felt “safe” in a c-store, and that number rose to 71% in Janu ary 2022. Clearly, the segment has made many enhance ments to stores to improve this perception.
Tim Powell is a principal at Foodservice IP, a Chicago-based consultancy.
The rise of Gen Z and a pandemic reset bring new opportunities for c-stores.
It is tough to see the silver lining in a pandemic, and yet there have been many fundamental changes to society that have helped bolster c-store foodservice.
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