Enhancing the Checkout Experience With Electronic Payments
p. 64
Glennie Bench, president of Southwest Georgia Oil Co., is at the forefront of driving SunStop’s growth as the chain continues to expand its footprint.
SUNSTOP SHINES
IN THE SUN BELT
Regional chain SunStop takes on national competitors with a vibrant design and proprietary Eat’s Southern Cookin’ deli while refreshing its fleet of stores and committing to new-to-industry growth.
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EDITORIAL
VP EDITORIAL — FOOD, RETAIL & HOSPITALITY
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Bruce Reinstein
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EVENTS
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Derek Gaskins, Senior VP, Merchandising/Procurement Yesway • Des Moines, Iowa
Joe Hamza, Chief Operating Officer Nouria Energy Corp. • Worcester, Mass.
Brent Mouton, President and CEO Hit-N-Run Food Stores • Lafayette, La.
Robin Hunt, Sales Hunt Brothers Pizza • Nashville, Tenn.
Kyle May, Director External Relations Reynolds Marketing Services Co. • Winston-Salem, N.C.
Steve Yawn, Director of Sales McLane Company Inc. • Temple, Texas
YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD
Kalen Frese (Board Chairman), Director of Merchandising Warrenton Oil Inc. • Warrenton, Mo.
Jeff Carpenter, Director of Education and Training Cliff’s Local Market • Marcy, N.Y.
Megan Chmura, Director of Center Store GetGo • Pittsburgh
Ryan Faville, Director of Purchasing Stewart’s Shops Corp. • Saratoga Springs, N.Y.
Cole Fountain, Director of Merchandise Gate Petroleum Co. • Jacksonville, Fla.
Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas
CStoreDecisions
Shines in the Sun Belt
Editor’s Memo
For any questions about this issue or suggestions for future issues, please contact me at edelconte@wtwhmedia.com.
Regional Players Must Match Growing Customer Expectations
Consolidation in the c-store industry shows no signs of abating. At press time, Alimentation Couche-Tard Inc. announced it was acquiring GetGo — which operates 270 sites across Pennsylvania, Ohio, West Virginia, Maryland and Indiana — with the sale set to close in early 2025. And Ankeny, Iowa-based Casey’s announced it was set to acquire Fikes Wholesale Inc., owner of CEFCO Convenience Stores. The sale is expected to close during the fourth quarter of calendar year 2024, and will add 148 Texasbased locations to Casey’s footprint as well as 50 sites in Alabama, Florida and Mississippi, taking Casey’s store count to nearly 2,900 stores.
I remember back in 2010, shortly after I started at CStore Decisions, when Casey’s — which at the time operated about 1,500 c-stores — found itself in a David and Goliath battle, facing a hostile takeover attempt by the much larger Alimentation Couche-Tard. Against the odds, Casey’s stood its ground and successfully resisted the challenge. In the years that followed, Casey’s offensively pursued expansion, both organically and through the acquisition of smaller regional chains that allowed it to grow its Midwestern roots. It also leaned into its highly differentiated business model, which focused on developing a loyal customer base among predominantly smaller communities.
From fending off a hostile takeover in 2010 to becoming a dominant player in the industry, Casey’s has come a long way in the past 14 years with a footprint that now spans 16 states.
As consolidation continues and behemoth chains enter new operating areas, long-standing regional c-store chains are similarly looking to offensively raise the bar to beat the competition while leaning into their strengths.
This month’s cover story highlights regional c-store chain SunStop, which operates 80 locations in Georgia, Florida and Alabama, and is strategically positioning itself to compete with national players encroaching on its market area. From remodeling locations with a focus on modernization to increasing its foodservice presence and rolling out mobile ordering to embarking on new-toindustry locations and expanding its reach deeper into Florida, SunStop is a prime example of a strong regional player that is stepping up its game as it competes with national players like Wawa and soon, Casey’s.
COMPETING WITH NATIONAL CHAINS
National chains typically benefit from greater economies of scale, sophisticated supply chains and advanced technology systems, all of which allow them to offer lower prices, wider product assortments and often better customer experiences.
“Our goal is to look and feel like a national chain and ensure customers have that kind of experience here, if not better,” noted Glennie Bench, president of SunStop’s parent company, Southwest Georgia Oil Co.
However, she added, being a mid-sized chain also offers SunStop distinct advantages. The chain excels in many areas compared to larger competitors due to its agility and the ability of its leadership to maintain strong relationships with store managers and front-line staff, which is harder to achieve for larger operations.
Regional chains also have the advantage of deep connections that they have spent decades cultivating within their local communities and are nimble enough to adapt fast to market changes, test new concepts quickly and implement innovative solutions that fit the unique demands of their customer base — strengths they can leverage against larger players. What’s more, they boast local knowledge and long-term customer loyalty. If you’re a regional chain, don’t wait until national players open a new store across the street from your legacy location to develop a strategy to compete.
Some regional chains look to rival outsized competition by leaning into their local roots and featuring local products and services, building relationships with local vendors and participating in community outreach, such as sponsoring school sports teams. Upgrading stores to a modern design, enhancing operational efficiency and investing in technology — most especially a loyalty program — and evaluating if a foodservice offering is right for your chain are all key steps for regional players looking to rival much larger competitors.
With strategies in place, regional chains can create a unique value proposition that resonates with local customers and sets them apart from larger competitors.
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QUICKBITES
IN-STORE SHOPPING TRENDS
While many customers shifted to online shopping during and following the pandemic, more customers report that they prefer in-store shopping today for a variety of reasons.
IN-STORE SHOPPING IS IN DEMAND
More consumers are preferring to shop inside the store rather than online.
Source: 84.51°, “July Consumer Digest,” July 2024
IN-STORE SHOPPING BENEFITS
Consumers enjoy shopping in-store for many reasons, including to see products in person. Based on the EY Future Consumer Index, which surveyed more than 23,000 consumers:
• 57% of consumers surveyed want to see, touch and feel items before they buy them.
• 68% are seeking expert advice on highvalue purchases to ensure they are making the most informed choices.
• 61% said they would go to a retailer for a store promotion that is not available online.
Source: EY Future Consumer Index, July 2024
SHOPPING IN-STORE BY GENERATION
Shopping in-store continues to be the best purchasing method for different generations. According to Salsify’s "2024 Consumer Research Report:"
• 23% of Gen-Zers prefer to shop in a physical store.
• 18% of millennials prefer to shop in a physical store.
• 20% of Gen-Xers prefer to shop in a physical store.
• 28% of baby boomers prefer to shop in a physical store.
Source: Salsify’s “2024 Consumer Research Report,” March 2024
POPULAR ITEMS BOUGHT IN-STORE
As mentioned in Raydiant’s “2024 State of Consumer Behavior Report,” consumers go to a physical store to purchase the following items:
• Groceries (73%)
•Medicine (66%)
• Personal Care Products (57%)
• Alcohol (50%)
Source: Raydiant’s “2024 State of Consumer Behavior Report,” March 2024
IN-STORE SNACK PURCHASING BEHAVIORS
When it comes to shopping for snacks, consumers prefer to shop inside a store. Some of the most common places consumers shop for snacks according to 84.51°’s “Consumer Digest: Snacking Trends May 2024” include:
• Convenience Stores
• Grocery Stores
• Mass Retailers
• Dollar Stores
Source: 84.51°, “Consumer Digest: Snacking Trends May 2024”
THE ART OF
SunStop Shines in the Sun Belt
Regional chain SunStop takes on national competitors with a vibrant design and proprietary Eat’s Southern Cookin’ deli while refreshing its fleet of stores and committing to new-to-industry growth.
Erin Del Conte • Editor-in-Chief
SunStop convenience stores is building new prototype locations and remodeling its fleet of existing stores with a focus on modernization and a food-forward presence. As part of its growth strategy, the Bainbridge, Ga.-based chain is expanding its proprietary foodservice program, launching mobile ordering and testing ordering kiosks. Additionally, SunStop is expanding deeper into Florida to extend its reach.
A regional chain, SunStop operates 80 locations in Georgia, Florida and Alabama, but it is strategically positioning itself to compete with national players encroaching on its market area.
SunStop’s parent company, Southwest Georgia Oil Co. (SWGO), also has 11 dealeroperated sites and distributes its proprietary Inland fuel brand to 53 Inland-branded locations.
FAMILY-OWNED BUSINESS
SWGO got its start in 1959 when Founder Jimmy Harrell began a diesel delivery service for farmers in southern Georgia. Jimmy went on to open the company’s first service station in 1961 and later debuted the com-
pany’s first convenience store in the early 70s. His sons Mike and Mark purchased the company from him in 1990 and turned their focus to expanding the retail business. Mark Harrell left SWGO in 1999, and today Mike Harrell helms the company as CEO. Glennie Bench, who joined the business in 1991, was promoted to president of the company in 2018.
Two of Mike Harrell’s daughters, who represent the third generation of the family business, are active in the company today. Rachel Harrell works in real estate for SWGO, developing non-traditional concepts, including
a Jeremiah’s location — an Italian ice and soft-service ice cream shop franchise — and three Ellianos coffee drive-through franchises. Perra Harrell is a certified public accountant and serves on the accounting staff.
DEVELOPING SUNSTOP
SWGO launched the SunStop brand, created in collaboration with an Atlanta design firm in 1997, after recognizing the chain needed a dedicated store brand, if it aspired to grow its presence in the region. In launching the SunStop name, SWGO aimed to keep its proprietary Inland fuel brand exclusive to its fuel operations while introducing a moniker for its c-stores that would capture the essence and spirit of its stores.
“We feel like our stores are welcoming, warm, energetic and just happy places. … We’re definitely in the Sun Belt down here. They came up with a variety of names to choose from and SunStop just worked,” Bench said.
Ten years later, in 2007, the SunStop name was temporarily acquired by North Carolina-based The Pantry, along with 24 of SWGO’s c-store locations.
SWGO had completed an 18-store acquisition of Big Little Stores in southeastern Alabama in the fall of 2006. With the SunStop name sold, it branded the recently purchased sites under the new banner Sun Valley Market.
In 2015, SWGO purchased S&S Food Stores in Lake City, Fla. That same year, The Pantry was acquired by Circle K, which wanted to purchase the remaining leases
on SWGO’s stores. “We negotiated to get the name SunStop back because The Pantry had never used it, and Circle K wasn’t planning to use it,” Bench said.
After reclaiming the SunStop name, SWGO refreshed its branding. As part of its mission to create a cohesive and contemporary brand, SunStop began a two-phase process to unify its stores. In 2018, it began actively reimaging all locations to reflect the new and improved SunStop banner, which involved updating store exteriors to the refreshed SunStop branding. In the Lake City, Fla., market, this transition from S&S Food Stores to SunStop proved seamless, as customers perceived SunStop as an extension of S&S.
After completing the exterior renovations, SunStop shifted its focus to the interiors beginning in 2020. This current phase involves substantial remodels, including the addition of delis or the expansion of existing deli services as well as updating older locations to reflect a more modern aesthetic. SunStop’s entire fleet of stores are scheduled for some degree of attention whether that’s a complete remodel, new equipment or simply some refreshed wall graphics.
In addition to completing remodels, SunStop is expanding through new builds. In the past year, SunStop has opened five new-to-industry (NTI) locations, the most recent of which debuted in DeFuniak Springs, Fla., this past July. The chain has plans to build two more stores in Tallahassee, Fla., with one already under construction and
Southwest Georgia Oil Co. introduced the SunStop brand for its convenience stores in 1997, while keeping its proprietary Inland fuel brand exclusive to its fuel operations.
the second set to break ground before the end of 2024.
In early 2025, SunStop also has plans to raze and rebuild a Lake City, Fla., store it acquired in 2015. The site features diesel lanes at the rear but is currently light on in-store amenities. To build out space for more services, SunStop plans to expand the store footprint from 3,000 to 8,000 square feet. This expansion will include space for a 2,500-square-foot Wendy’s, operated by a franchisee. The updated store will also feature SunStop’s proprietary Eat’s Southern Cookin’ deli. The site will fly the Shell flag and offer electric vehicle (EV) charging stations and scales for truck drivers, in addition to the diesel lanes.
BRIGHT & ENERGETIC DESIGN
The prototype stores SunStop is opening now span 5,300 feet — or larger if they feature diesel lanes. But not all communities can support a store of that size, so SunStop is also developing a 4,000-square-foot model that would be less expensive to build. The smaller prototype will feature either the Eat’s Southern Cookin’ deli or a traditional c-store with “an amped up grab-and-go section” that would include a proprietary sandwich program, fruit cups and parfaits made on-site in the kitchen — ideal for locations that don’t have space for a fryer or hot bar.
“It’s a little bit of a hybrid that I think will work in some smaller communities,” Bench said.
SunStop’s color scheme of blue and yellow is visible throughout the stores as well as on the logo.
“The SunStop logo is this script-looking font that is
SunStop is known for its Eat’s Southern Cookin’ proprietary deli program, which is available in 35 locations and features high-quality food made on-site.
very high energy. When you come into our stores, our prototype stores have a clerestory roof — a pop-up roof in the center — so there’s some natural light from above,” Bench said.
Inside the stores are bright with very high ceilings and lots of bright yellow and bright blue throughout alongside natural wood paneling, rustic off-white shiplap paneling and gray polished-concrete floors.
“Everything else is neutral so that the yellow and the blue pops and the red of our Eat’s deli pops. We’ve used a lot of vinyl wall coverings in our remodels so we can bring those same familiar concepts, even the look of the shiplap or the wood paneling, into an existing store with those same pops of color,” Bench said.
Outside, SunStop features dog parks and dog relief areas at some of its stores, which it feels fits in with the high-energy, family-oriented and welcoming vibe its locations look to offer.
In the forecourt most stores feature Inland as their proprietary fuel brand, while some are Shell-branded or 76-branded sites.
“We’ve established a bit of a niche of offering diesel lanes at our stores, even where we don’t have truck parking,” Bench said.
The stores with diesel lanes offer a second entrance, which allows more space for large trucks from semis to delivery vehicles.
SunStop also operates four mini-tunnel car washes that are co-located with its convenience stores under the
name SunSplash. To create its car wash offering, SunStop used previous car wash space that came over with its acquisitions and upgraded the equipment and branding. SunStop plans to continue to add more SunSplash car washes in the future.
SOUTHERN COOKIN’
SunStop is known for its Eat’s Southern Cookin’ proprietary deli program, which is available in 35 locations and features high-quality food made on-site.
“It’s based on a history of offering fried chicken-type delis that our industry is known for. Michelle Weckstein, director of food and beverage brands, has done a great job,” Bench noted.
Weckstein helped develop a positive reputation for the brand’s limited-time offers that often incorporated chicken tenders, such as in an orange chicken and rice dish that became a fan favorite and a staple on the menu. Stores also have daily specials. Thursdays feature meatloaf, Fridays include fried fish and Mondays feature baked pasta, to name a few. SunStop uses a conveyor oven to make its own proprietary flatbreads, including Buffalo Chicken, Chicken Pesto, Pepperoni and Southwestern Chicken varieties. It’s also offering hot hoagies at select locations. Prewrapped cold sandwiches are available in the cold grab-and-go case.
The focus on food and beverage is changing the look and feel of SunStop stores.
“When you walk into the front of our prototype stores, it’s all food and beverage — you see our fountain, our deli and the grab-and-go cases,” Bench said. “The traditional convenience offering is still a beautiful section of our store, but it’s to the right and the checkout is to the left, and so it’s just a different way of capturing the customers’ attention.”
All new stores are expected to receive the Eat’s South ern Cookin’ deli. When it comes to legacy stores sched uled for remodel, SunStop will determine which sites will receive foodservice offerings on a case-by-case basis.
In its most recent site that opened in July, as well as at future locations, SunStop is testing a new ordering kiosk that allows for custom ordering. Even the flatbreads can be custom made.
SunStop also partners with quick-service restaurants (QSRs) and co-brands at some sites, including three Noble Romans, a few Hunt Brothers Pizzas, a Moe’s and two Planet Smoothies.
“For instance, we’re doing a Noble Roman’s location in Lake City, in a market that we weren’t sure could handle a deli operation,” Bench said. “The Noble Roman’s offering is a good way to test the need and the demand for fresh food. If it goes well, we can expand it, and then add on our deli offering.”
3 Indulgent Flavors
• Incredibly Moist & Delicious
• Bright Eye-Catching Packaging
• Perfect Snack Anytime of Day!
All SunStop stores feature bean-to-cup coffee. The stores have a hybrid offering depending on the volume of coffee each store sells. All stores feature bean-to-cup machines that also dispense cappuccino and hot chocolate. Busier stores add an additional fast-brew beanto-cup machine that exclusively dispenses coffee. The busiest locations also add a ground coffee air pot that is only available during the morning rush until 10 a.m., at which point a magnetized sign is placed on the machine that says “Enjoy our bean-to-cup coffee for the rest of the day,” and the air pot goes underneath the cabinet out of sight.
For customers in a hurry, the chain is testing drivethroughs at two locations, where customers can order from the Eat’s menu and any items from the c-store, including tobacco.
For those looking for a place to sit and eat, SunStop offers free WiFi at its locations, along with a bar with seating, complete with charging stations for phones or laptops. About a third of its stores feature additional seating.
TAKING ON TECH
SunStop is in the process of launching mobile ordering through its SunStop Rewards mobile app that is powered by Rovertown.
“We have a Paytronix loyalty program, and so that is allowing us to do mobile ordering,” Bench said. “We don’t do any delivery.”
Through the SunStop Rewards program, customers can earn points from both in-store and through fuel purchases, which can be redeemed for discounts on fuel or items within the store.
“We offer some SunStop Rewards-specific promotions, such as a buy-one-get-one or a discounted program. We have a fountain club and a coffee club, where you get your seventh cup free. We have a car wash club. We have a Mountain Dew club,” Bench said. “… We’re a convenience store, and what appeals to one person might not appeal to the other, so we’re trying to create a broad offering of discounted items or promotional items. We try to vary it frequently throughout the year so that there’s some appeal to everybody.”
SunStop is in the process of remodeling store interiors. The process includes the addition of delis or the expansion of existing deli services as well as updating older locations to reflect a more modern aesthetic.
All new stores are expected to receive the Eat’s Southern Cookin’ deli. When it comes to legacy stores scheduled for remodel, SunStop will determine which sites will receive foodservice offerings on a case-by-case basis.
SunStop is also testing self-checkout in two locations.
“Most of our stores only need self-checkout during limited windows during the day. You don’t necessarily need it every day all day,” Bench said. “And so, we’re trying to find a concept that makes sense in that kind of scenario.”
The Lake City site set for remodel in 2025 will feature EV charging through a partnership with Electrify America. “They’re operating that, but we’re just partnering as far as providing the space on our property,” Bench explained.
SunStop also has Tesla partnerships at four locations.
Additionally, it opened an EV charging station three months ago at one of its new Tallahassee, Fla., locations, which marks the chain’s first venture into operating its own EV charging station.
“It’s the only level-three charger within several hours of Tallahassee,” Bench said. “It is an Ads-Tec (Energy) setup. They are a battery-supplemented charger, so it allows you to avoid the peak demand charges on your utility bill that a normal charger incurs because the battery supplements it and tempers that spike.”
The battery then recharges automatically, so there’s no delay in recharging.
“We’ve been pleasantly surprised at the amount of business that we’ve gotten out of that. As our industry knows, these setups are massively expensive, especially if you’re trying to achieve a level-three speed,” Bench said.
“I don’t know about the return on the investment yet, but people are looking for that speed.”
The technology isn’t widely used in the c-store space, making SunStop a pioneer in featuring the new batterypowered charging model.
WHAT’S NEXT?
SunStop is focused on growing the size of its footprint as it continues to expand deeper into Florida.
“We’ve traditionally been a north Florida chain, but we’ve moved into the Panhandle of Florida, and now further south in Florida,” Bench said.
The chain will continue to introduce NTI locations across its operating areas. Currently, SunStop owns eight pieces of land earmarked for this purpose in the coming years.
Parent company SWGO also aspires to grow its dealer network in 2025 and beyond.
At store-level, SunStop plans to continue to invest in the food and beverage side of its business while evaluating opportunities to expand with new retail concepts.
“I think we will probably explore more branded foodservice in addition to our proprietary food. When you’re on an interstate, brands matter,” Bench said. “As I mentioned before, Mike’s daughter, Rachel, is working in what we call our business incubator with the development of the Jeremiah’s and Ellianos. We want to utilize some of our convenience store DNA and move into QSR or other retail concepts that are not necessarily tied to petroleum. I think you’ll see us do more of that, too.”
SunStop is also focused on further enhancing the performance of its existing locations, from staffing considerations to altering the mix of products and services to maximize the profitability of the stores.
Bench noted that given the skyrocketing costs associated with building c-stores and growing competition in the region, it’s important to achieve maximum profitability from all areas of a store. While SunStop is a regional chain, it is also competing against national players, including Wawa, and soon Casey’s, given it is set to
acquire CEFCO, which has a site under construction right across the street from SunStop’s most recent location.
“Our goal is to look and feel like a national chain and ensure customers have that kind of experience here, if not better,” Bench said.
However, she added, being a mid-sized chain also offers SunStop distinct advantages. The chain excels in many areas compared to larger competitors due to its agility and the ability of its leadership to maintain strong relationships with store managers and front-line staff, which is harder to achieve for larger operations.
At the end of the day, it’s the company’s employees that help SunStop elevate its performance and stand out in a crowded marketplace.
“We have great people,” Bench said, adding that she’s continuously impressed by the dedication of the chain’s employees from its professional truck drivers and c-store managers and associates to the maintenance, IT, operations, human resources and accounting staff.
“I’m just blown away by how hard they work and how much they care,” she said. “They are just amazing people.” CSD
Preventing Underage Tobacco Sales
Empowering employees to navigate legal requirements.
Preventing minors from purchasing tobacco and vaping products is challenging for most retailers. Employees must have proper training and be confident in handling confrontational situations. QSR sat down with Doug Anderson, president of We Card, to discuss how its training program helps retailers navigate legal requirements and prevent underage sales.
What challenges do employees face when carding customers?
Federal law requires the “carding” of every customer under 30 years old, and the FDA indicates this is an eachand-every time requirement. If you carded a customer in the morning, and they return in the afternoon, they must be carded again.
Carding has its nuances. Examples are “social sourcing,” where adults may buy for minors (we recommend denying this type of purchase). Employees deal with expired IDs, or handling regular customers who are clearly of age, yet still must be carded. These can quickly turn into confrontations, so employees must be trained to handle them with a customer service friendly response.
How does We Card help retailers comply with age-restricted sales laws?
We Card provides a complete suite of training and education resources from in-store training materials or age calculation tools to formal online training at our eLearning Center.
Our training equips retailers with the knowledge and the skills to identify and deny underage purchase attempts while handling any customer confrontations.
Our courses are highly interactive that includes a store manager and assistant manager who guide employees through role playing and put them in front of simulated customer scenarios, ranging from dealing with angry customers to underage individuals presenting invalid IDs, to handling fake IDs, and of-age adults.
The Employee Training Course is fully comprehensive, state-law-specific and covers federal law and FDA requirements. There is also a Refresher Course, a condensed version of the employee training, and a Manager’s Course, which is crucial for managers and covers a wide range of knowledge.
What is the significance of September as We Card Awareness Month?
A key component to maintaining compliance with the laws, is regularly highlighting what it takes to be a
“responsible retailer” by showcasing what needs to be done to comply with the law. Every year we emphasize the importance of training because research shows that a trained-and confident employee is best positioned to perform their duties more effectively.
Awareness Month brings both reminders and new techniques and approaches to training and education. Our updated 2025 materials are ready for shipping, and we encourage mystery shopping to measure employee performance. Our ID Check-Up service involves younglooking, 21+ year old shoppers testing if employees are properly carding customers. This provides verification that trained employees are indeed carding. And this regular monitoring helps motivate employees to improve their compliance efforts.
How does We Card stay informed about local issues and needs?
We Card tracks laws and regulations and collaborates with a stakeholder group of more 200 state-level associations, national associations representing retailers and wholesalers and our Manufacturer Advisory Council. This collaborative group help us stay informed about what is happening throughout the country, whether it’s a law change or a training need. Our key stakeholders provide insight and can spot trends at the store level. And, as new issues surface, we work with our stakeholders to develop programs or materials.
We are subject matter experts on responsible retailing, but we also comb through new laws and try to work these into actionable and understandable language that employees can absorb and use daily.
-By Olivia Schuster
REGULATIONS FORCE VAPE, CIGAR RETHINKING
The vape and cigar segments at c-stores are being hit with potential and established regulations, driving retailers to reconsider their backbars.
Emily Boes • Senior Editor
No trends or new products in the vape and cigar segments impact the market as significantly as federal, state and local regulations do.
Although plenty of consumers enjoy vape and cigar products, regulatory measures prohibit convenience store retailers from selling certain items, significantly affecting their backbars and potentially impacting their customers.
With this in mind, tobacco category managers must find creative ways to keep these customers interested in what they’re allowed to offer.
REGULATING CIGARS
The Food and Drug Administration (FDA) has long been waiting to establish a decision on a flavored cigar and menthol cigarette ban.
Officially announced in April 2022, the proposed product standards prohibit characterizing flavors other than tobacco in cigars. The public comment submission period was extended to Aug. 2, 2022, and since then, multiple delays have pushed a decision further away. Retailers still await a final rule.
“Earlier this year, the White House administration announced that the finalization of a flavored cigar ban rule would be delayed since significant feedback was garnered on this and the proposed menthol cigarette ban,” said David Spross, executive director of the National Association of Tobacco Outlets (NATO). “The outcome of the presidential election will also likely influence both the timing and whether or not a final rule moves forward.”
State legislation, too, has attempted to ban flavored tobacco products.
For instance, in Minnesota, the last two years have seen tobacco legislation introduced. A Senate hearing occurred in 2023 and in 2024, there have been House hearings, noted Lance Klatt, executive director of the Minnesota Service Station & Convenience Store Association.
However, Minnesota has adjourned its 2024 session, NATO reported, with efforts to ban flavored tobacco products failing.
“(Currently), Pennsylvania and Michigan have bills pending that would ban flavored tobacco products (both state legislative sessions are year-round),” said Spross.
A potential flavored cigar ban is not the only regulation retailers are
Vape, Cigars Suffer Unit Sales Slump
Electronic smoking devices dipped in sales, with vaping accessories standing out in the category due to a 7.4% decrease in price per unit. Cigars, meanwhile, ticked up by 2.5% in dollar sales, despite a 7.7% unit sales drop. Little cigars saw the biggest hit in the segment, decreasing by 58.6% in unit sales.
Source: Circana Total U.S. Convenience data for the 52 weeks ending July 14, 2024
concerned with regarding cigars.
Increased taxes on the products have also influenced how retailers view this section of the backbar.
“Since New York State (NYS) imposed the 75% tax on cigars we have had to drastically cut back our offerings,” said Bill Laraby, purchasing manager for Clifford Fuel Co., which operates 22 Cliff’s Local
Market locations in New York.
Only Florida and Pennsylvania do not impose a state cigar tax (as well as Washington, D.C.). Other states tax cigars by a percentage of the product price or a per-unit basis, according to the Centers for Disease Control and Prevention.
Recently, New York enacted the 75% cigar tax, and as of August, the
little cigar excise tax rate is around 27 cents for each little cigar.
“There are many smaller retailers getting product from across state lines and selling cigars for much less than we can. Due to the lack of enforcement, we have no choice but to cut back our offerings,” Laraby continued.
Nationally, cigars at c-stores have seen a 7.7% unit sales drop but a 2.5% uptick in dollar sales due to price per unit increases for the 52 weeks ending July 14, according to market research firm Circana.
VAPE’S LEGALITY
Vape products have received much scrutiny by the FDA, causing c-store retailers to constantly wait on tenterhooks to know which vape products they can sell and which they cannot.
Electronic smoking device dollars dipped by 4.3% over the past year, reaching $6.95 billion, per Circana.
Mostly, retailers see vape products receiving marketing denial orders. However, marketing granted orders (MGOs) have
given to certain
vape products for the first time since June 2022. These include VUSE Alto tobacco pods and NJOY mentholflavored vape products.
These represent the first flavored e-cigarette MGOs, Spross stated. Now, 34 vape products have been approved by the FDA.
Laraby noted the approval of the NJOY menthol products has been an exciting opportunity for Cliff’s.
However, the illegality of other vape products has been negative. And, just as with cigars, New York plays a role in Cliff’s vape segment.
“NYS regulations play the biggest factor in vape and cigars for us. It is hard to compete being a law-abiding retailer. There are shops selling flavored vapes illegally in every town we operate,” said Laraby.
NYS banned the sale of flavored vape products in 2020. Laraby noted the unfair playing field the company has in the state as well as lack of
enforcement are the biggest factors affecting the category currently.
In response to these restrictions, Cliff’s has focused on the burgeoning growth of modern oral as well as its success with tobacco-free alternatives with nicotine.
A lack of enforcement is an issue with more than just Cliff’s, however.
Spross noted when it comes to enforcement, there is still a need for clarity from the FDA.
“The need for an effective regulatory system requires a more coherent compliance framework that clearly communicates the FDA’s enforcement priorities, what categories of products the agency wants immediately removed from the marketplace and what categories can remain on the market pending review of timely filed applications,” he said.
In the meantime, Klatt advised, “be aware of your community and have a relationship with your local
city council member, state legislator and member of Congress. Make them understand your business, your commitment to your community and being a responsible retailer.” CSD
FAST FACTS:
• The cigar and vape segments are undergoing regulations that affect retailers at the store level.
• A lack of enforcement by the authorities is detrimental to the success of vape and cigars at c-stores.
• Retailers should form a relationship with their local city council and make their business known.
Alcohol Consumers Angle
Innovation is rife in the alcoholic beverage category, and c-stores are paying close attention to see which products have staying power as well as catering to pre-COVID trends and gearing up for fall favorites.
Emily Boes • Senior Editor
Alcohol, particularly beer, has long been a convenience store staple, and over the years, variety and ever-revolving flavors have become draws for the category. Very few segments are affected by fads and new trends like alcoholic beverages.
“There is very little brand loyalty anymore as new drinkers entering the segment are looking to try different styles/flavors across a range of products and seem to be looking for flavor-forward options,” said Shane Mabry, GPM Investments’ alcohol
category manager. “They will even change their buying habits based on the occasion they are buying for.”
New brands are constantly emerging, particularly with seltzers and ready-to-drink (RTD) cocktails. And the popularity of certain flavors will determine their longevity.
GROWTH DRIVERS
At GPM Investments, which operates 1,543 stores under multiple banners, customers are reverting to pre-COVID lifestyles and trends. For instance, the premium segment is leveling off and super premium beers are rebounding. Additionally, as this continues,
single-serve options are outperforming multipacks, which, Mabry noted, is changing the sales mix and driving dollar sales decline but pushing margin percentages upward.
Even small and midsized packs of beers — six-packs, eight-packs and 12-packs — are receiving hits in both the premium and value segments.
Inflation might be a factor in the trading down from packs to singles. The economic phenomenon is also contributing to switching to more affordable brands and fewer trips.
7-Eleven, which operates, franchises and/or licenses more than 13,000 stores across the U.S., also sees singles growth.
for Singles, Variety
“(This) addresses pressure on customers’ wallets, allows trial without a large financial commitment, and allows for variety with mix-and-match multiples promotions,” said Ryan Schemmel, product director, alcohol, 7-Eleven. Schemmel has also noticed an increase in the adoption of 16-ounce beer multipacks.
Mabry noted imports and full-flavored malt beverages, too, are gaining share. Hard teas, in addition to the single-serve flavors, contribute to flavored malt beverage (FMB) growth.
“For hard teas, the leading brand continues to see double-digit growth with newer brands all showing positive signs and adding to the
growth of the category,” Mabry further expanded.
Hard seltzers are also still bringing in customers at GPM, even though they are declining overall.
“In states where it is legal, there is continued movement toward RTD beverages, which is taking customers from all segments (beer/wine/liquor). The RTD category is expected to increase as more brands try to enter the segment. It will probably follow a similar pattern to seltzers in that there will be a lot of new brands, however only a handful of them will contribute to the majority of sales,” Mabry added.
Heading into fall, summer flavors will take a backseat to craft’s flavor-
forward products at GPM.
“It is craft singles that are driving unit growth, but dollar decline in the craft category,” said Mabry.
The 19.2-ounce craft singles have become the preferred craft package, and customers who like to try different brands can do so at a reasonable cost.
NON-ALCOHOLIC AND NEW BRANDS
One trend that isn’t going away among consumers is the proclivity toward health and wellness. And for some, this transfers into the alcoholic beverage category.
“We’ve seen conflict between alcohol consumption and the growing emphasis on health and wellness, particularly among younger consumers. Millennials and Gen Z are increasingly prioritizing their physical and mental health, leading many to reevaluate their drinking habits,” said Evan Shirley, associate partner at Clarkston Consulting.
Due to this, some non-alcoholic beers, wines and cocktails are becoming more mainstream.
Athletic Brewing Co. is a popular brand among non-alcoholic beer.
“(The company) represents 19% of the domestic non-alcoholic beer market,” said Shirley, referencing NielsenIQ data. “They recently acquired one of the largest brewing facilities in San Diego, signaling confidence in its ability for continued growth.”
Case sales for non-alcoholic beer increased 17.1% for the 52 weeks ending July 14, reported market research firm Circana. Dollar sales jumped 23.2%. Non-alcoholic wine drinks also saw growth for the past year.
Following this trend, alcohol is seeing some competition from new-age
Spirits Steer Alcohol Growth
Spirits sales have jumped among alcoholic beverage sales, with premixed cocktails and spirits-centric seltzers leading the charge. Among beer, non-alcoholic beer saw a 17.1% uptick in case sales, with flavored malt beverages experiencing an 11.7% increase in case sales.
Source: Circana Total U.S. Convenience data for the 52 weeks ending July 14, 2024
Case Sales — Beer: per 288 fluid ounces (24x12-ounce cans) Case Sales — Wine and Spirits: per nine-liter cases (12x750-milliliter bottles)
soft drinks. Functional soda, enhanced water, cider, kombucha and more appeal to health-conscious customers seeking flavorful alternatives to alcohol, noted Shirley.
Non-alcoholic beverages aren’t a solution everywhere, however.
Although the segment is growing, it’s a small segment of overall sales, noted Mabry. “And in a small-format set they will not contribute enough dollars for the shelf space required.”
In the adult beverage category, non-alcoholic options aren’t the only interesting segment to watch. Innovation is everywhere in this space.
For example, Mabry has noticed
many crossover brands with name recognition such as Mountain Dew, Lipton, Arizona and Topo Chico that will drive initial trial, as well as celebrity brands. Taste will be the factor that brings repeat purchases.
“It usually takes a full year to really know if a brand can make it. … You always want to experiment with new brands to get the initial trial and then see where consumers land to determine brand longevity. Seltzers are a prime example; a lot of brands entered the space with some hanging on, but it’s primarily two brands at the top,” Mabry said. Looking ahead, he believes
imports and FMBs will drive growth, and single-serve options will gain trial for emerging brands. RTDs and wine-based small-format packages will also expand.
7-Eleven, having seen a popular trend centered on party wine such as Buzzballz and Beatbox, is also witnessing more entrants into this emerging space.
Regarding RTD success, Shirley noted they can vary in their alcoholby-volume percentages, “making them popular for both traditional alcohol consumers and those looking for lower-alcohol options that still deliver on taste and experience.” CSD
representative, call +1-800-241-COKE, or visit www.coca-colacompany.com Visit
Diving Into Salty, Healthy Snack Trends
C-stores are updating their snack aisles to keep pace with consumer demands as salty and healthy snack trends expand, despite ongoing inflation.
The snack category continues to thrive with growth and innovation, even as inflation remains a concern and consumer snacking preferences evolve.
The salty and healthy snack segments in particular are rapidly gaining attention from consumers as they continue to search for the next big snack trend.
Within the salty segment, crackers and potato chips are popular across all age groups, while on the betterfor-you front, fruits are more popular with shoppers aged 18-34 (67%) and 35-54 (71%) than with older demographics, according to 84.51°’s “Consumer Digest: Snacking Trends May 2024.”
Other healthy or salty snacks that shoppers report eating are tortilla chips (57%), popcorn (57%), veg-
etables (48%), nuts (54%), yogurt (51%), pretzels (44%) and granola bars (43%). The report also found that compared to one year ago, 31% of respondents are buying more healthy/better-for-you snacks, 27% are checking ingredients more and 12% are buying more organic/natural snacks. Customers mentioned avoiding high-fructose corn syrup (49%), artificial sweeteners (40%), hydrogenated oils/trans fats (34%) and
Zhane Isom • Associate Editor
Savory Sausages
Salty and Healthy Snacks See Mixed Results
Potato chips drove salty snack sales with dollar sales up 6.3%, while nutritional/intrinsic health value bars led healthy snacks with dollar sales up 8.3%. Unit sales for most snacks experienced decreases as prices rose for the 52 weeks ending June 16.
Source: Circana Total U.S. Convenience data for the 52 weeks ending June 16, 2024
sugar (34%) when buying snacks.
With these evolving snacking habits in mind, c-store retailers are prioritizing the reset of their snack aisles to stay ahead of new trends.
SALTY SNACK SALES
Within the salty snack category, potato chips remain the top pick for consumers. For the 52 weeks ending June 16, potato chips earned $2.43 billion in dollar sales, resulting in a 6.3% increase, according to Chicago-based market research firm Circana. The unit sales for potato chips stayed steady, with only a 0.4% increase for the same period.
Pretzels, too, saw an increase in dollar sales. Pretzels reached $381 million in dollar sales, a 4.6% increase for the 52 weeks ending June 16, per Circana. However, pretzels’ unit sales decreased by 3% for that same time frame, which could be caused by the 7.8% increase in the price per unit.
“I believe unit sales will continue
to go down if retail continues to increase,” said Mike Jackson, category manager for High’s, which has 59 stores in Maryland, Delaware and Pennsylvania. “I think the retails on some items have hit their breaking point. Even nationally known brands have taken a hit in unit sales due to the ever-increasing retails.”
Regardless of inflation, new trends are making their way into convenience stores.
“We are seeing a lot of new flavors in the salty snack category. Spicy and fiery flavor profiles are still expanding,” said Jackson. “There have also been some interesting flavor limited-time offers that have come out this year.”
Additionally, consumers are still looking for the opportunity to save money while purchasing
their snacks.
“While customers are still willing to spend money on snacking, they are more intentional about their purchases,” said Alyssa Noreen, category merchant for GetGo, operator of approximately 270 locations across five states. “We need to be able to deliver the products they are
High’s has begun bundling snacks with beverages to offer reduced retail across two of its most popular categories.
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asking for at a value to maintain that loyalty and secure future purchases.”
Jackson, as well, mentioned that customers are looking for deals. “Items such as chips have become so expensive, customers are looking for smaller packages and lower retails to satisfy their cravings,” he said.
BETTER-FOR-YOU SNACKING TRENDS
Healthy snacks, however, have been seeing some mixed results regarding sales.
Granola bars reached $65.5 million in dollar sales, a 6.9% decrease for the 52 weeks ending June 16, noted Circana. The unit sales for granola bars also declined 13.1% for the same period.
“Healthy snacks, which generally had a slightly higher retail anyhow, have seen quite a decrease in units so far in 2024,” said Jackson. “I expect the unit decrease to continue in 2025 unless manufacturers figure out a way to lower prices.”
On the bright side, other healthy snacks are seeing growth in sales at c-stores. Fruit rolls/bars/snacks earned $300 million in dollar sales,
resulting in a 7.9% increase for the 52 weeks ending June 16, according to Circana.
Nutritional/intrinsic health value bars also saw an 8.3% increase in dollar sales and a 2.2% increase in unit sales for the 52 weeks ending June 16, noted Circana.
Once GetGo began to evaluate its healthy snack offerings, it started to see growth in sales.
“In 2023, we remerchandised our bar/breakfast set to dive deeper into the theme of better-for-you,” said Noreen. “Some of those items are doing really well. The right assortment in that set will be the key to growth.”
At High’s, Jackson has also seen the flavor innovation trend trickle into the healthy snack category.
“There have also been some interesting flavor additions to the perceived healthy product lines. The new Pringles Harvest Blends lineup would be an example of this,” said Jackson.
To keep salty and healthy snack sales growing, retailers are doubling down on bringing in new and innovative snacks for consumers to try.
GetGo has been leaning into its private-label snacks and introducing new ones when possible.
“In 2023 alone, we launched GetGo-branded snacks, and they’ve quickly become customers’ favorite and top-selling items in the assortment. We are also completing macro store resets to better allocate space to sales throughout the store. For example, many stores will gain space for the salty category on the warehouse side,” explained Noreen.
. Nutritional/intrinsic health value bars saw an 8.3% increase in dollar sales and a 2.2% increase in unit sales for the 52 weeks ending June 16.
High’s is trying to combat lost
sales due to inflation. The convenience store chain has begun bundling snacks with beverages to offer reduced retail across two of its most popular categories.
“We have also looked at some smaller packages to keep retails down as much as possible,” said Jackson. “Some items that have become too expensive have just been removed from our sets and replaced with lower-retail items.”
All in all, as long as flavors and products continue to be introduced in the healthy and salty categories, inflation will not stop these snacks from seeing even more growth going into 2025.
“Categories like healthy and salty snacks are inundated with new brands. Some of these are true winners and contributing positively to the growth of the categories. Retail strategies need to find the balance between proven brands and brands that are offering something new and eye-catching,” said Noreen. CSD
FAST FACTS:
• Potato chips continue to be the top pick for consumers.
For the 52 weeks ending June 16, they earned $2.43 billion in dollar sales, a 6.3% increase, per Circana.
• Fruit rolls/bars/snacks earned $300 million in dollar sales, resulting in a 7.9% increase for the 52 weeks ending June 16, according to Circana.
• Convenience store retailers are starting to see new flavor profiles appear in both the salty and healthy snack segments.
CONGRATULATIONS TO THE CSTORE DECISIONS CHAIN OF THE YEAR!
Pilot Company is modernizing locations through a $1 billion New Horizons initiative, leaning into foodservice evolution, innovating with new technology and creating an employee-centric culture. The chain is also committed to building an electric vehicle charging network from coast to coast.
Founded in 1958, Pilot is the largest operator of travel centers in North America. A wholly owned subsidiary of Berkshire Hathaway, Pilot’s travel center network includes nearly 900 locations across 44 states and five Canadian provinces.
CStore Decisions’ Chain of the Year Award annually honors a convenience store, travel center or petroleum chain that has established itself as a superior retailer and innovator.
MENU INNOVATIONS FUEL FOODSERVICE Sales
Creating a menu that whets customers’ appetites is only part of what it takes to achieve longterm success in foodservice. The other part is constantly innovating fresh and exciting meal and snack options that keep customers returning day after day.
Marilyn Odesser-Torpey • Contributing Editor
Menu innovation is imperative for food-forward convenience store retailers to compete in a market where customers have a plethora of restaurant options available to them. Whether or not a new menu item will become permanent, the excitement of new and seasonal choices will renew customers’ enthusiasm for the brand.
For retailers like Clifford Fuel Co., which has 21 Cliff’s Local Market locations in New York, change of season is its cue to add new limited-time offers (LTOs) to its menu, said Derek Thurston, Cliff’s director of foodservice operations. An example is its recent three-item “Taste of Summer” collection, featuring seasonal fruits, including a salad of strawberries, blueberries, candied walnuts, goat cheese, baby spinach and sweet Vidalia onion dressing. Another simpler LTO
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from the collection was a singleserve bowl packed with fresh-cut watermelon.
Cliff’s doesn’t limit its innovations to the lunch and dinner dayparts. Earlier this year, the stores brought out a new three-meat French toast stack, composed of two slices of cinnamon swirl French toast, an egg patty, sausage, bacon, ham and American cheese.
“This sandwich was phenomenally successful, accounting for between 17-18% of all breakfast sandwiches ordered from January through March,” Thurston reported.
For the first quarter of 2025, Thurston is working on LTOs that will spotlight turkey burnt ends, which he described as “the first new, innovative turkey in years.” Unsure that customers would respond to the description “burnt ends,” he plans to christen the product “smoked brisket-style turkey.” For this rollout, he will develop a wrap, sandwich and melt.
“A beef brisket LTO we introduced last year did really well, so we expect a good response to the turkey,” Thurston pointed out. “Turkey has a health halo while also being a comfort food, so it hits on different notes for the winter months.”
Beef brisket was also a winner when Sayre, Pa.-based Dandy Mini Mart added it to its menu last spring, according to James Fry, foodservice director for the chain, which has 60 stores in Pennsylvania and New York. For that LTO rollout, Dandy introduced the meat as a topping for pizza with barbecue sauce, cheese and ranch dressing; in a brisket mac and cheese; and on a flatbread.
LTOs generally remain on Dandy’s menu for two to three months.
“We want to constantly create excitement, especially for our regular customers, but not grow our menu,” Fry said.
Knoxville, Tenn.-based Pilot Co., with nearly 900 locations in 44 states and six Canadian provinces, recently launched a spicy chicken sandwich that has garnered much customer acclaim, explained Paul Sagnella, the company’s research and development chef.
To come up with new products, “we gather feedback from our guests about their preferences, as well as work with our vendor partners to evaluate upcoming cuisine
For Dandy’s beef brisket LTO rollout, it introduced the meat as a topping for pizza with barbecue sauce, cheese and ranch dressing; in a brisket mac and cheese; and on a flatbread.
styles, flavor profiles and overall trends in the marketplace,” he stated.
Two other items Sagnella is excited to see recently added to the menu as LTOs are a spicy Italian pizza and a Southwest salad, which he pointed out is a healthier option combining chicken, jalapeños and corn.
LTOS GAIN PERMANENCE
Some LTOs become so lucrative that they are added to the menu year-round.
An LTO item that earned a permanent spot in Cliff’s grab-and-go selection, for instance, is a chipotle turkey and bacon sandwich.
“Even though this is a premium item with a slightly higher price point than other items in the case, it accounts for 28% of all of our grab-and-go sandwiches,” Thurston stated.
At Dandy, breakfast LTOs have done
well, Fry noted. For example, waffles as a sandwich carrier stirred up so much excitement among customers that they were added to the permanent menu.
Some of Pilot’s LTOs, too, returned to the menu due to popular demand, Sagnella commented. This year, the company brought back its popular Pilot Big Dog, a half-pound, 100% all-beef hot dog wrapped and baked in a garlicky dough. Nashville Hot Wings, which the company debuted
FAST FACTS:
a couple of years ago, were so popular that they were added to the permanent menu. The same goes for several breakfast sandwiches.
All three retailers pointed out that they use as many ingredients already in inventory as possible when creating new menu items.
Fry also explained that a key question when considering an LTO’s success is whether the new items can be executed at store level, even if the store is short staffed. CSD
• Seasonal ingredients make for craveable creations.
• C-store retailers should include breakfast in their food innovation plans.
• Using ingredients already in inventory is a great way to develop new items.
This year, Pilot brought back its popular Pilot Big Dog, a half-pound, 100% all-beef hot dog wrapped and baked in a garlicky dough.
LEVELING UP YOUR GRAB-AND-GO GAME IN SIX STEPS
Today’s shoppers have high standards when it comes to food choices, but retailers can improve their grab-and-go success with key modifications.
Bruce Reinstein
• Kinetic12 Consulting
As customer preferences evolve, savvy c-stores are evolving their grab-and-go food section to best appeal to shoppers.
Grab-and-go used to be strictly about convenience and was particularly geared toward consumers who were traveling and wanted to get back on the road as quickly as possible. While these consumers still exist, most are seeking a lot more than merely “convenience” when selecting a foodservice destination. Consumers today are looking for food and beverage products that meet their taste preferences, dietary requirements and quality standards. They want choices that will provide the experience they crave.
Here are six steps that can take your grab-and-go offering to the next level.
1. Improve the quality and variety of options. Consumers want grab-and-go options that meet or
exceed their expectations. They truly appreciate this differentiation. While price is part of the equation, improved quality and greater variety will drive more loyalty to a brand. Healthy choices, including fresh fruit; fresh salads; and high-quality bread, deli meats and pizza toppings make a difference to consumers. What’s more, featuring various carrier options such as bowls and wraps adds appeal.
2. Provide local and seasonal offerings. Consumer taste profiles vary significantly depending on the region, as well as between rural and suburban areas. Consistency is important, but it is crucial to integrate local and seasonal offerings that appeal to the customer base where your stores operate. It need not be as drastic as making wholesale changes to categories, but some basic categories such as coffee, pizza, deli meats, breads and roller grill require some local options.
3. Have some freshly prepared items that are attractively displayed. Attractively displayed, freshly prepared items are in demand. Freshly prepared does not need to be made from scratch. A yogurt parfait — vs. a cup of yogurt — will better entice the customer, bring a higher sell price and come with a lower cost to the retailer. For freshly prepared salads, use Mesclun or another quality lettuce blend and add innovative toppings. Create a house dressing by infusing a bold ingredient into a stock ranch dressing. The opportunity to be innovative is endless, and it does not need to be complicated.
4. Use packaging that enhances the customer experience. Mediocre packaging conveys a message of mediocre food and beverages to customers. Great packaging can enhance the quality of grab-and-go items and also provide the consumer with confidence that they will be able to potentially eat on the go without worrying about leakage and quality reduction. “Green” packaging can also have a positive impact for consumers that value a sustainable world.
5. Focus on rotating products and maintaining standards. Consumers are significantly more attentive to what they are purchasing today. They look at dates and tend to take the products that are not on top or in front. Product rotation, removal
of below-standards products (brown lettuce, bitter coffee), and overall attention to detail are crucial to a customer’s perception of an operation. Inconsistency leads to the question of whether freshroasted smooth coffee or the old bitter coffee is the standard.
6. Ensure that staff are ambassadors and understand the product offerings. There is a place for transactional team members, but most employees need to be well trained and understand that customer service is crucial to the guest experience. When it comes to the grab-and-go section, team members must be well versed on each product so they can answer any questions that come up from customers. Employees should be proud of the products being offered and feel confident with consumer engagement.
Bruce Reinstein is a partner with Kinetic12 Consulting, a Chicago-based foodservice and general management consulting firm. Learn more at Kinetic12.com or contact him at Bruce@Kinetic12.com.
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Combating Organized Retail Crime
Retailers are adapting their loss prevention strategies, using new technology, community resources and best practices to counter increasingly sophisticated and evolving shoplifting tactics.
Erin Del Conte • Editor-in-Chief
Organized shoplifting, flash mobs and smash and grabs aren’t new phenomenon, but the tactics, methods and timing criminals are employing today are changing. In response, retailers are stepping up their loss prevention strategies with help from new technology, community resources and evolving best practices.
“I’ve been at this for over three decades, and shoplifting was always viewed as the invisible crime. They would go in, steal one or a few items, conceal it and try to leave
without being recognized,” said David Johnston, vice president of asset protection and retail operations for the National Retail Federation.
Organized retail crime (ORC), in particular, used to occur during nonoperating hours, while mobs were most likely to loot during times of civil unrest.
“The challenge now is we’re seeing all of that happening during operating hours, and even the shoplifting itself has become less invisible and much more open and
brazen,” Johnston said.
What’s more, the same shoplifter might return several times, and the level and threat of violence has escalated as well.
“This has all really happened, predominantly over the last five years, give or take that quiet period of COVID-19, and more specifically coming out of COVID, to what we see today,” Johnston said.
The Retail Industry Leaders Association (RILA) also sees ORC as an evolving trend that impacts retailers.
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“(ORC) involves groups systematically stealing large quantities of merchandise with the intent to resell,” explained Khris Hamlin, vice president of asset protection, RILA. “ORC has become more sophisticated, often involving complex networks that operate across state lines and even internationally. The rise of online marketplaces has provided an easier avenue for these groups to offload stolen goods to unsuspecting consumers.”
What’s more, over the past few years, these crimes have evolved to become increasingly calculated, better executed and more frequent.
ORC today isn’t just targeting large national brands either. “It impacts segments that go from the mass merchants all the way down to a convenience store,” Johnston said.
Johnston pointed out ORC groups vary in scope and scale, and investigations at the local and federal levels show that networks vary dramatically in terms of who they target and how they resell the merchandise.
In the case of convenience stores, ORC entails targeting key resaleable items — such as alcoholic beverages, cigarettes, and health and beauty care items — that once stolen can be quickly resold, sometimes at a location mere blocks from where they were stolen.
“There have been some investigations completed in large metropolitan areas where the stolen goods would never leave the city limits. They would just be resold back to another independent business,” Johnston said.
Stolen alcohol, for example, might make its way to a local bar for resale.
TRENDS DRIVING CRIME
Several trends have been converging since before the pandemic to create an environment where theft has flourished.
“Economic downturns and financial instability have contributed to more
THEFT BY THE NUMBERS
• The National Retail Federation’s 2023 National Retail Security Survey found that shrink as a percentage of retail sales in 2022 accounted for $112.1 billion in losses, up from $93.9 billion in 2021.
• Internal and external theft accounted for 65% of retailers’ shrink, similar to past years.
• More than 67% of survey respondents reported witnessing more violence and aggression from organized retail crime (ORC) perpetrators compared with the previous year.
• The top five cities or metropolitan areas impacted by ORC were Los Angeles, San Francisco/Oakland, Houston, New York and Seattle.
individuals participating in ORC as a means of income,” Hamlin said. “Online marketplaces and social media platforms have made it easier for criminals to quickly and anonymously sell stolen goods. And, compared to other criminal activities, retail theft carries relatively low penalties, which can make it an attractive option for organized crime groups.”
Johnston agreed, adding that increases in homelessness and drug addiction that are impacting some communities are additional contributing factors.
“It is the afflicted and the addicted that oftentimes these organized groups (target) to be … their shoplifters,” Johnston said. “I think we can also look at the laws that have been changed in many cities where some property crimes, which shoplifting or larceny are considered, are no longer arrestable or considered to the degree that they were from an enforcement standpoint.”
FIGHTING BACK
With the level of violence on the rise, retailers are working to better protect employees and customers. One of the most important things that retailers can do from a safety and security standpoint is invest in employee training.
“We’ve seen a lot of retailers across all segments increase their violence prevention, their de-escalation, their disengagement, even where many have altered their policies to not even stop or seek to apprehend shoplifters, just to become a better witness for law enforcement,” Johnston said. He pointed out that every time a shoplifter is apprehended, that individual could potentially become violent.
Another tactic is altering the store environment to make shoplifting more difficult. “We call it crime prevention through environmental design,” Johnston said.
Some c-stores have moved from a two-door entrance to a single entrance, while stores with a double door may lock one side. Others are reconfiguring the interior space to remove blind spots, changing the layout to make it harder to steal highvalue items and adding cameras to high-theft areas of the store, such as the alcoholic beverage section.
Some stores opt for private security while others encourage the presence of local police officers — on or off duty — by offering them free merchandise or coffee. In extreme situations, deploying a canine unit can be more of a deterrent for some shoplifters, Johnston noted.
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LOCKING UP MERCHANDISE
Some retailers have resorted to putting high-value items under lock and key.
“The method helps deter theft and manage inventory more effectively by making it harder for would-be thieves to access these items without assistance. It can also help reduce shrinkage,” Hamlin said.
Johnston agreed that locking up products can be a necessary solution in certain environments, but he added retailers don’t want to lock up their merchandise.
“Retailers know that it impacts the shopper experience. … It also is impacting their sales and drives some customers away, but it’s necessary given some of the types of incidents that are going on,” Johnston said.
He pointed to the example of shoplifters shelf sweeping entire rows of medicine or baby formula, noting it’s important to ensure those items are available to customers who need them.
“On the one hand, it can create a sense of security for customers, knowing that the store is taking steps to prevent theft,” Hamlin said of locking devices. “On the other
hand, if not managed carefully, it can potentially frustrate shoppers who may find the process of retrieving items to be inconvenient or time-consuming. Ultimately, it’s another difficult decision retailers are faced with as they look for ways to combat crime and keep stores safe.”
One possible workaround some retailers are evaluating is implementing self-service technology that would allow loyalty members to access locked cases using their smartphone, Johnston pointed out.
Others are employing anti-sweep displays that only allow one or two items to be removed at a time.
TECH SOLUTIONS EXPAND
Technology is a key theft prevention tool. “Retailers have been upgrading CCTV (closed-circuit television) systems and leveraging more high-definition cameras and thermal imaging to monitor store activities more effectively and deter potential thieves,” Hamlin said.
He added that retailers today are more open to adopting artificial intelligence (AI) and machine learning technologies to predict and prevent theft. “These systems can analyze
patterns and detect suspicious behavior in real time,” Hamlin noted.
“AI and machine learning are going to start to be adopted in a lot of the technologies we use, but (current) applications include enhanced CCTV technology, license plate readers, vehicle descriptors and identifiers, as well as any sort of data analytics and the attempts to provide some sort of link analysis to support investigations,” Johnston said.
Retailers are joining forces, sharing data across platforms and using link analysis to connect crimes in different locations through pictures, license plate images or other indicators, with help from AI and machine learning, and working as a group to engage law enforcement, he explained.
Police, for example, are employing license plate readers throughout communities in order to identify stolen vehicles.
“Law enforcement might have one of these units sitting in a high-crime area, and they may get an alert that a vehicle that just drove up to a convenience store is known to have been used in a shoplifting event at the mall down the street. So they
Some retailers have resorted to putting high-value items under lock and key. This method helps deter theft and manage inventory more effectively by making it harder for thieves to access these items without assistance.
SHRINK, APPREHENSIONS & RECOVERY DOLLARS TICK UP
Jack L. Hayes International Inc.’s 35th Annual Retail Theft Survey reported more than 340,000 shoplifter and dishonest employee apprehensions in 2022 by 26 large retailers. The retailers recovered over $288 million from the apprehended thieves. Some 81% of survey respondents pointed to a rising shrink in 2022. Total apprehensions were up 45.6% and total recovery dollars increased 70.5% in 2022.
may be able to respond quicker to potentially a new crime,” he said.
Radio frequency identification (RFID) chips are another tactic being used across different retail segments.
“The use of RFID and devices for inventory tracking has become more adoptable in helping retailers maintain accurate inventory records and reduce shrinkage,” Hamlin said.
“In previous years, RFID had challenges with being placed on things involving liquids or even cigarettes because of the foil inside the packages,” Johnston said. “But we are starting to hear more retailers piloting RFID in other areas. I do think that with costs coming down, with the labels and the chips getting better, we’re going to start to see more of it involved in alcohol and tobacco and even smaller items.”
Placing body cameras on store associates is another strategy in the early stages of adoption in the U.S. but widely used in the UK and Australia, Johnston noted.
While Johnston hasn’t seen the data, he’s heard anecdotally that it has made a difference for some retailers. Early adopters see it as a way to discourage bad behavior.
“Reports from retailers indicate a noticeable reduction in violent incidents when body cameras are deployed,” Hamlin agreed. “These devices have proven effective in
enhancing safety, and improving customer interactions, providing a valuable tool for both violence prevention and evidence gathering.”
But Johnston cautioned that we’re a long way from being able to measure the effectiveness of the technology across the retail industry.
FOLLOW BEST PRACTICES
Loss prevention doesn’t have to be expensive. Focusing on best practices can do a lot to move the needle on deterring theft.
First and foremost, Johnston pointed to the importance of tracking and reporting incidents with as much detail as possible and reporting them to law enforcement. Employee training is also key to ensure associates have violence prevention de-escalation techniques.
“Educating employees about loss prevention techniques and creating a culture of vigilance is crucial,” Hamlin agreed. “Training to recognize suspicious behavior, proper handling of merchandise and effective customer service strategies can deter theft.”
Johnston noted simply greeting customers within 15 seconds of them entering the store and offering assistance is an example of a positive deterrent.
“Building relationships with local law enforcement and local pros-
ecutors can enhance collaboration, strategy and mitigation of theftrelated events,” Hamlin added. “(Some) retailers are also taking a holistic approach to combating organized retail crime via the Vibrant Communities Initiative, led by RILA and the National District Attorneys Association.”
The initiative unites district attorneys, police departments, social service organizations and other stakeholders to identify effective approaches for dealing with ORC, habitual theft, violence, vagrancy and blight in and around retail stores, Hamlin explained.
“Ultimately, by working together, we’re identifying ways to restore vibrancy to communities across the country,” Hamlin said.
“Work with your community. Work with law enforcement to help them with what they need to protect your business and community,” Johnston advised retailers. “Work with your local government and advocate for the issues that are taking place. And then, work with your peers across segments, so it’s not just a c-store working with a c-store. Build relationships, partner together and advocate for yourself.” CSD
FAST FACTS:
• Shoplifting trends are evolving, with an uptick in organized retail crime occurring in broad daylight and violence on the rise.
• Employee training, community outreach, technological advancements and changes to environmental design are some tactics retailers are employing to combat theft.
Restroom Reputation Affects Customer Perception
Restroom upkeep is essential for maintaining customer loyalty, as clean restrooms will forge trust in the status of the rest of the store and make for a more positive customer experience.
Emily Boes • Senior Editor
While c-stores might be hot spots for topping off fuel levels and snagging a quick snack and drink, they are also known for another aspect of hospitality: a place to use the restroom, especially for roadweary travelers.
For this reason, it’s important for c-stores to be hyper-focused on restroom design and cleanliness. If a customer, particularly one who finds themselves on the road frequently, has a positive restroom experience, they’re likely to deliberately patronize that store or chain in the future.
Each area in a c-store’s operations has the potential to encourage brand loyalty, and this includes having impressive restrooms.
CLEANING WITH CARE
Weigel’s, with 79 stores located in Tennessee, operates a strict cleaning regimen in order to maintain high restroom standards.
As part of the chain’s daily restroom cleaning schedule, the trash bins are emptied, each surface is cleaned and disinfected, the toilets and urinals are scrubbed and disinfected, supplies are restocked, and the floors are mopped.
At midday, employees do a spot check and cleaning, refill supplies and disinfect high-touch areas.
Before closing for the day, many of these same tasks are performed, along with a maintenance check and a final floor mop.
“Maintaining a clean and hygienic restroom is essential for creating a positive customer experience in our convenience stores. A rigorous cleaning regimen ensures that the facility is always in top condition,” said Theresa Bright, district leader for Weigel’s.
To this end, Weigel’s also ensures restrooms undergo a weekly deep cleaning, during which the standard daily tasks are performed along with scrubbing walls and stall partitions,
deep cleaning tile grout, and polishing fixtures.
Monthly, the vents and air ducts are cleaned, the plumbing is checked, and the fixtures and fittings are inspected.
Finally, during high-traffic periods, spot checks are increased, areas are disinfected more frequently, and a more vigilant staff presence is required to quickly address any issues related to restroom cleanliness that arise.
“The best restroom practices start with regular cleaning and maintenance,” Bright noted.
Walters-Dimmick Petroleum & Johnny’s Markets, operating 66 Johnny’s Markets in Michigan and Indiana, also understands the importance of maintaining high restroom standards.
“Image is so important to any business and especially c-stores who are already fighting an uphill battle on perception of the ‘dingy gas station.’ Having a clean and
Weigel’s updated restrooms sport neutral tones and mosaic tile accent strips with darker tones to add sophistication and contrast. The chain’s restrooms also feature stainless steel fixtures. The faucets have infrared sensors, and the hand dryers, toilets, urinals and trash cans are also touchless.
working restroom that is inviting goes a long way to changing perceptions. You do this by making it part of the culture that clean is important and as important as sales,” said Mike LaBerteaux, chief operating officer, Walters-Dimmick.
Johnny’s Markets’ restrooms are cleaned at a minimum of three times a day; however, for its locations situated on interstates, more attention is given to the restrooms due to
high traffic.
Additionally, three times per year, the chain’s leadership team visits the stores for a “white glove” inspection, known as Image Tours, and the restrooms are given a deep clean during this time.
“We are considering adding a customer service mystery shopper program that could help highlight (restroom feedback),” LaBerteaux further explained.
DELIGHTING WITH DESIGN
Cleanliness is not the only aspect of a restroom to draw customers. The layout, design and atmosphere can sway customers’ perceptions, as well.
“When it comes to creating a welcoming environment in a c-store, every detail counts. A well-designed restroom not only meets the basic needs of customers but can also significantly improve their overall shopping experience,” said Bright.
Remodels and new builds for Johnny’s Markets have a women’s restroom and a men’s restroom, with three stalls for the former and two stalls and urinal for the latter. Larger restrooms are being built for newbuild locations.
The chain uses white subway tile around the sinks with metal gooseneck barn lighting overhead.
Johnny’s Markets also opted for touchless sinks and paper towel dispensers as well as foaming soap.
A c-store’s restroom design doesn’t only have to be practical, however. It can be fun as well.
“We use our Johnny’s branding in a fun and inviting way. One example
FAST FACTS:
is our handwashing signs in the restrooms have the copy ‘Suds Up! Employees must wash hands for at least 30 seconds before returning to work.’ We are required to have handwashing signs, but we made sure it was on brand and fun for both employees and customers,” said LaBerteaux.
At Weigel’s, the restrooms are also separate for men and women. They each have individual stalls for privacy and comfort with space to accommodate every customer, including those with mobility aids.
Bright noted the restrooms are designed to assist those with young children, including changing tables.
• Regular scheduled cleaning and maintenance are essential restroom best practices.
• The layout and design of a restroom is important for creating a welcoming environment.
• Touchless features appeal to customers.
Weigel’s updated restrooms sport neutral tones and mosaic tile accent strips with darker tones for sophistication and contrast. The primary tiles are beige and taupe for a warm and inviting atmosphere. The mirror frames are dark brown and black.
The chain’s restrooms also feature stainless steel fixtures. The faucets have infrared sensors, and the hand dryers, toilets, urinals and trash cans are also touchless.
Customers provide feedback on the state of the restrooms through a comment box, as well as digitally.
Paying attention to cleanliness, but also design and ambiance, goes a long way in gaining customers’ trust.
“You invest in image with not only materials and equipment, but with people. Increase labor budgets; dedicate time for employees to prioritize cleaning for your customers,” advised LaBerteaux.
“Keeping (restrooms) sanitary and well maintained is essential to the safety of customers and staff — and for the reputation and success of the business,” Bright added. CSD
Remodels and new builds for Johnny’s Markets have a women’s restroom and a men’s restroom, with three stalls for the former and two stalls and urinal for the latter. The chain also uses white subway tile around the sinks with metal gooseneck barn lighting overhead.
wednesday, september 18
1:00 - 4:00 PM Charity / Team Building Outing (optional)
4:30 - 6:00 PM
Welcome Reception Evening Dinner on Your Own
thursday, september 19
8:00 - 8:30 AM Breakfast
8:30 - 9:30 AM Retail Case Study: Yesway Overview and Outlook Derek Gaskins | Yesway
9:30 - 12:45 PM Yesway & Allsups Store Tours
1:00 - 2:00 PM
Burning Issues Session: Yesway Private-Label Deep Dive Darrin Samaha | Yesway, Alan Adato | Yesway
2:00 - 2:30 PM Networking Break
2:30 - 4:30 PM
Burning Issues Exchanges: Round Table Discussions
4:30 - 5:00 PM Wrap Up / Closing Session
5:00 - 6:30 PM
Networking Reception at the Texas Motor Speedway Evening Dinner on Your Own
friday, september 20
8:00 - 8:30 AM Breakfast
8:30 - 9:30 AM Burning Issues Workshop: Leadership & Culture John Matthews | Gray Cat Enterprises, Inc.
9:30 - 10:00 AM Networking Break
10:00 - 11:00 AM
Burning Issues Session: Grab QSR by the Horns: What Foodservice Competition Looks Like in Texas Becka Friessen | Corner Store, Neely Moreman | Yesway
CStore Momentum is exclusively available to the rising leaders within NAG member companies and the 2023 40 Under 40 Leaders to Watch inductees. To learn more or to check your membership status, please contact NAG Executive Director Allison Dean | adean@wtwhmedia.com.
Enhancing the Checkout Experience With Electronic Payments
C-store retailers are upping their electronic payment game by implementing new software, updating data security measures and more to make checkout easier than ever for customers.
Zhane Isom • Associate Editor
The future of electronic payments in convenience stores is promising, as a growing number of consumers prefer using these methods at checkout, and an increasing number of c-store retailers are embracing these payment options in their stores.
With the implementation of electronic payments, retailers can provide customers with a convenient and easy way to check out, and customers can use a payment method that’s best for them, whether it’s Apple Pay, a credit/debit card or tap-to-pay.
“Already today, we find some surveys that show between 12-15% of North American consumers leave home without a wallet,” said Perry Kramer, managing partner at Retail Consulting Partners. “This will continue to grow and significantly drive the growth of digital and mobile wallets.”
As the demand for different electronic payment methods increases, c-store retailers are taking a step back to either improve or implement them at their stores.
Lubbock, Texas-based Curby’s, with one location and two more coming soon, uses ECRS as its point-of-sale (POS) provider due to its payment platform that is integrated into its POS, according to Richard Cashion, chief operating officer for Curby’s.
“Between our online e-commerce platform with ECRS and our in-store payment platform, we can offer a wide variety of payment options,” he said.
McIntosh Energy, which operates four MacFood Marts in and around Ft. Wayne, Ind., has also seen positive outcomes from offering electronic payments.
At MacFood Mart, customers can connect their rewards card information with their payment details, allowing them to pay with a QR code on their phone either at the pump or at the register.
Approximately 75% of MacFood Mart customers are already utilizing electronic payments at the register.
“Approximately 75% of our customers are already utilizing electronic payments at the register,” said Jessica Bardon, public relations and marketing manager for McIntosh Energy. “Inside the store, I have been told by our team members that they notice electronic payments significantly speed up transaction times.”
Yatco, too, operator of 13 stores in Massachusetts, Rhode Island and Connecticut, is accepting electronic payments at the gas pumps via contactless pay for credit cards as well as inside the store.
“Our POS and payment terminals accept touchless pay for credit cards and Apple/Android pay from cell phones,” said Hussein Yatim, vice president for Yatco.
BENEFITING FROM ELECTRONIC PAYMENTS
Allowing consumers to pay for products electronically brings forth many benefits for both the consumer and the retailer, including speed and efficiency at checkout, the reduced need for cash, and even providing a secure and safe way to purchase items.
“Additionally, by accepting electronic payments, the c-store significantly increases the percentage of the consumers’ electronic wallets that they have access to. This includes hot trending payments like PayPal and not so far off from main-
stream payments such as Bitcoin,” said Kramer. “Digital-wallet users spend 12.8% more on average than debit card users and 51% more than cash users.”
Yatim pointed out that the benefits of having electronic payment options at Yatco include fraud protection, improvement of loyalty programs, a modern appeal to the c-store and the ability to adapt to customers’ payment preferences.
“With the increasing preferences for cashless transactions, offering electronic payments is essential for staying competitive in the market,” he said.
Bardon also emphasized that the biggest benefit of offering electronic payments is the fact that customers have a variety of ways to pay.
“For truckers, we offer Mudflap payments, where they can provide a code for us to enter on a tablet, authorizing fueling at the pump they are using,” she explained. “Mudflap is currently one of the fastest forms of electronic payment available for truck drivers, which enhances convenience and efficiency for our customers who are on the road the most.” Electronic payments can also be
beneficial to c-store retailers using self-checkout.
“A self-checkout unit that is “credit and debit only” is generally $8,000 to $14,000 less expensive to purchase and install than a selfcheckout unit that has cash and coin handling devices,” said Kramer.
Certain cashless payment methods are preferred more than others.
“The biggest and most recent shift is the number of customers using an electronic wallet on their phone to pay for a transaction as opposed to presenting a physical card,” said Kramer. “According to data compiled by the Capital One shipping team, by 2027, credit card usage in North American POS systems is expected to decline to 34% while digital wallet usage will increase to 31%.”
Tap-to-pay is also trending when it comes to electronic payments.
McIntosh Energy’s Bardon is seeing more customers utilizing their mobile devices to process payments, which aligns with the growing preference for contactless transactions.
“The use of tap and contactless technology continues to grow as a preferred payment method for customers. This is becoming a must-
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have for speeding up the checkout process at the POS,” revealed Kramer. “In a recent Retail Consulting Partners survey, 72% of retailers have indicated they accept some type of near field communication mobile payment.”
At Curby’s, Apple Pay is making great strides, while peer-to-peer payments like Venmo, PayPal and Cash App are highly preferred at Yatco.
KEEPING PAYMENT DATA SAFE
An aspect of electronic payments that retailers must stay on top of daily is the security of customers’ personal and card information when they purchase items electronically.
Kramer suggested retailers need to rely on a strong partner as a payment provider and payment switch.
“Additionally, ensure that your technical security and compliance teams have a seat at the decision table as well as being entrenched in your systems development life cycle and testing,” he said.
MacFood Mart prioritizes data security by using advanced encryp-
At MacFood Mart, customers can connect their rewards card information with their payment details, allowing them to pay with a QR code on their phones at the pump or at the register.
tion methods and ensuring its payment systems comply with industry standards.
“Regular updates and maintenance of our payment terminals help protect against potential security breaches,” said Bardon. “Additionally, we educate our staff on best practices for handling electronic payments securely. This approach ensures that our customers’ payment information remains safe and secure at all times.”
Yatim is keeping Yatco customers’ payment information safe by ensuring the stores’ payment systems comply with Payment Card Industry Data Security Standards, ensuring that payment terminals are Europay, MasterCard and Visa compliant, and deploying the firewalls to protect the stores’ internal network from unauthorized access and external threats.
Meanwhile, Curby’s has taken a layered approach to keeping data safe.
“Having a well-thought-out physical store security plan and network security plan is paramount for any operator in the c-store space,” said Cashion. “We use a combination of layered defense in our network and physical security protocols.”
THE FUTURE OF ELECTRONIC PAYMENTS
The use of electronic payments is not slowing down and will continue to evolve and advance along with technology.
“As technology advances, we expect to see a further decline in
cash transactions, with more people relying on electronic payments. The increased use of tap-to-pay will likely reduce the risk of skimming devices and stealing information,” said Bardon. “Additionally, electronic payments will continue to attract more fleet drivers to our stores, as they offer convenience and efficiency.”
Cashion sees the electronic payment process improving with the customer demand for easier-to-use payment at the POS.
“I think at some point we will see biometric authentication for payments, which will be done via fingerprint, facial recognition, etc.,” added Yatim. “I think the use of wearable technology like smartwatches will become more popular.”
Given that electronic payments are here to stay, convenience store retailers who are not offering this payment method should consider it and begin doing their research to ensure it’s the right fit for their stores and customers.
“If well executed, a strong electronic payment strategy can reduce labor, increase customer satisfaction, increase loyalty customer trips and basket size,” said Kramer. “Each c-store chain has a slightly different approach to balancing customer service, labor costs and driving impulse purchases. Including the payment experience in the plan to deliver the desired experience that is right for each brand is very important.”
Yatim noted that retailers must understand their customers’ preferences and educate them, as well.
“Absolutely go for it. The easier you can make it for customers and your team members to accept payments, the better. Electronic payments not only speed up transaction times but also enhance customer satisfaction and security,” added Bardon. “Implementing electronic payments is a forward-thinking move that can significantly benefit your business.” CSD
PRODUCT Showcase
Eggo Waffle-Inspired Coffee
Eggo has united with Two Rivers Coffee Co. to introduce Eggo Coffee. Eggo Coffee combines the irresistible taste of freshly toasted, golden Eggo waffles with the rich, aromatic notes of premium coffee. Eggo Coffee will be available in five unique flavors and sold in convenient Keurig-compatible cups. The Eggo Coffee flavors include Maple Syrup Eggo, Vanilla Eggo Coffee, Cinnamon Toast Eggo, Blueberry Eggo and Chocolate Chip Eggo. Eggo Coffee is now available in stores.
Kellanova Two Rivers Coffee Co. www.kellanova.com www.tworiversdirect.com
Fruit-Flavored Candy Mix
Sour Patch Kids has partnered with Snapple to introduce Sour Patch Kids Snapple fruit-flavored candy mix. The limited-time offering is available in three tantalizing flavors inspired by the Snapple brand’s popular juice drinks: Mango Madness, Kiwi Strawberry and Fruit Punch, which are sure to delight fans of both Sour Patch Kids and Snapple. Sour Patch Kids Snappleflavored candy is now available at all major national retailers in a 3.61-ounce bag for $1.28 and an 8.02-ounce bag for $2.88.
Mondelēz International www.mondelezinternational.com
Keurig Dr Pepper Co. www.keurigdrpepper.com
Tamper-Evident Salad Containers
Placon has announced the addition of two new containers to its innovative Fresh ‘N Clear tamper-evident salad bowl line. The new offerings include a 24-ounce party dip tray, which is ideal for nacho cheese and other party dips, and a 38-ounce fourcompartment container with a center cup, which is designed for parties and catering. Both new containers have flat lids that are ideal for labeling and stacking. They also feature a tamper-evident hinged closure that ensures food stays safe until the consumer opens the package.
Placon www.placon.com
All-in-One Online Ordering and Managed Services Solution
Lula has launched its new Lula Commerce, the only all-in-one online ordering and managed services solution that empowers enterprise retailers to build and grow world-class digital commerce experiences without the ongoing operational burden or need for specialized in-house expertise. Lula Commerce combines artificial intelligence and verticalized industry expertise to handle tasks ordinarily managed by a retailer’s internal marketing, operations, data science, accounting and categorymanagement teams. On average, Lula’s managed services can help offset 3.7 full-time equivalent resources on an annualized basis, allowing in-house talent to focus on strategic growth initiatives.
Lula Convenience www.lulaconvenience.com
PRODUCT Showcase
NFL-Themed Beer Cans
To kick off the start of football season, Bud Light has brought back its fan-favorite team cans and packaging, featuring 24 teams around the National Football League (NFL), including the Kansas City Chiefs, Buffalo Bills, San Francisco 49ers, Philadelphia Eagles and more. This year’s team cans and packaging are making it easier for fans 21 and older to rep their favorite team on Sunday and throughout the upcoming NFL season. These new packs are available now at participating retailers across the country.
Anheuser-Busch www.anheuser-busch.com
Bear-Shaped Candy Case
CandyRific has teamed up with Haribo to introduce novelty candy items, including the new Haribo Candy Cases that come with 0.4 ounces of Haribo Gummy Bears. The sculpted Haribo Brand Bear Character Candy Cases are available now for a suggested retail price of $3.99 with six- and eight-count displays per case.
CandyRific www.candyrific.com
Haribo www.haribo.com
Lemon-Flavored Mini Cupcakes
Café Valley has introduced its new line of Girl Scout Cookie-inspired mini cupcakes, which includes Girl Scout Lemon Mini Cupcakes. This latest treat has a lemon-flavored cake with lemon-flavored icing topped with yellow and white confetti sprinkles. Girl Scout Lemon Mini Cupcakes are now available in a 12-count at select retailers.
Café Valley Bakery www.cafevalley.com
LTO Spicy Chips
Funyuns has partnered with Maruchan for a limited-edition collaboration inspired by two fan-favorite foods. For the first time, the iconic brands have come together for an unexpected flavor mashup: Funyuns x Maruchan Hot & Spicy Chicken Ramen Onion Flavored Rings. Tapping into a passion point for consumers, the limited-time-only product combines the zesty onion flavor of crispy classic Funyuns with the savory notes of Maruchan Hot and Spicy Chicken Ramen. Funyuns x Maruchan Hot & Spicy Chicken Ramen is now available at retailers nationwide.
Swedish Match 800.367.3677 / customer.service@smna.com
800.874.9720 / www.swisher.com Trion Industries, Inc. 12-13 800.444.4665 / www.triononline.com/art We
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IndustryPerspective
Real Estate Reckonings
In an energized merger and acquisition market, c-store retailers are taking stock of their real estate best practices and must ask themselves what their growth tactics will look like in the years ahead.
With the abundance of merger and acquisition (M&A) activity currently taking place in the c-store industry, operators need to consider their real estate strategy going forward. Large or small, every chain is affected by the M&A shifts in the industry as well as in their market area.
To better understand how c-store retailers should be contemplating their real estate plans and learn a few tips, CStore Decisions caught up with Terry Monroe, president and founder of American Business Brokers & Advisors.
CStore Decisions (CSD): How has the c-store M&A landscape changed over the past few years?
Terry Monroe (TM): Consolidation and consolidation. The large c-store chains are growing exponentially. Either by building or acquiring other c-stores. The only difference depends on what the business model of the operator is. The trend for consolidation will not slow down because to compete going forward, you either have to be large enough to have scale in your buying power and operational costs or be small, where you can control your operational and labor costs.
CSD: What types of locations are more attractive for investment?
TM: Real estate is always defined by its location depending on the market area of the store. There are A, B and C locations. Everyone strives to get an A location, which would be defined in a city or town located at Main & Main Street. Think of Walgreens or CVS, generally. Or on a busy highway or interstate that is right off the exit with an easy righthand turn into the store.
Unfortunately, unless you are building in a growing area, most of the A locations are taken with an older store, and you will be required to raze and rebuild a new store to take full advantage of the A location.
CSD: How can c-store operators align their real estate strategies with broader goals?
TM: The most successful c-store operators have a long-term vision, and they plan and invest for the future — not five years, but 40 to 50 years ahead. By investing in the future, they will ensure they get a large enough parcel of ground to accommodate what changes may be coming ahead for their c-store, whether it be a change in what is being sold inside the store or what type of fuels may be needed to accommodate the different types of transportation people will be using in the years to come.
CSD: What risks should c-store operators be aware of, and how can they plan accordingly?
TM: C-store operators should always be on the lookout for competition. Sometimes the competition will come in the form of a dollar store or something of similar competition, which could have been deterred, if the property across the street was not available. Whenever possible, own or control as many of the properties around your store to keep out the competition. Nothing can hurt you more than competition.
CSD: What should c-store owners be prepared to watch for in the future when it comes to real estate planning?
TM: A c-store owner should constantly be checking with the city and community they are operating in to see what the long-range economic plan is for their market area. There may be a new interchange being planned in the next 10 years that would dramatically change the traffic flow for their store. You can’t just go with what you see today and assume this is the way it is going to be forever.
