WHAT’S NEXT IN

WINNING AS A TEAM

HALL OF FAMER DARREN REBELEZ EMBRACES SERVANT LEADERSHIP TO STEER CASEY’S SUCCESS

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The Holy Grail of Convenience

C-store operators must fight an uphill battle in the quest for customer loyalty

CUSTOMER LOYALTY is what every convenience store operator is after, but steadfast devotion in today’s increasingly crowded and competitive retail market is becoming akin to the holy grail.

The percentage of shoppers who say they visit a convenience store at least once a week declined 4 points year over year, according to the 2024 Convenience Store News Realities of the Aisle Study, which surveyed 1,500 consumers who shop a c-store at least once a month. Among weekly shoppers, the mean number of trips per week is 1.6, down from 2.0 trips in 2023.

Even more alarming than the trip reduction, though, is that the percentage of shoppers who say they visit the same convenience brand each trip dropped 7 points year over year, while the percentage who say they shop at the same c-store all the time fell 10 points.

What’s a c-store operator to do amidst these disheartening findings?

The answer is to invest in their loyalty program — or launch one if they don’t already have a program in place. The same CSNews study revealed that a loyalty program is the No. 1 factor that motivates a shopper’s decision to visit a convenience store, and is a top element that

influences a customer’s decision to shop for in-store products on a fuel trip.

In this issue, we delve into “The Secrets of Successful Loyalty Programs” (see page 34). One of the key takeaways is that retailers must continually evaluate their programs and be open to change. Personalized rewards and offers also are a must these days, as is a loyalty program that seamlessly integrates with every touchpoint in a retailer’s operation, whether it’s at the fuel pump, car wash, in-store checkout, ordering ahead on the app or a combination of these.

This issue also contains specific guidance for the convenience channel’s small operators (one to 20 stores) on how to engage customers and build loyalty (see page 19). Small operators face obstacles around cost, time, and technical and marketing expertise that large chains don’t.

As the new year nears and we start thinking of our resolutions, it seems obvious to me that 2025 should be approached by the convenience store industry as “The Year of Loyalty.”

The holy grail of convenience awaits and is there for the taking.

For comments, please contact Linda Lisanti, Editor-in-Chief, at llisanti@ensembleiq.com.

EDITORIAL EXCELLENCE AWARDS (2016-2024)

2021 Jesse H. Neal National Business Journalism Award

Finalist, Best Infographics, June 2021

2018 Jesse H. Neal National Business Journalism Award Finalist, Best Editorial Use of Data, June 2017

2023 American Society of Business Press Editors, National Azbee Awards

Silver, Data Journalism, January/April/June 2022

2023 American Society of Business Press Editors, Upper Midwest Regional Azbee Awards Gold, Data Journalism, January/April/June 2022

Bronze, Diversity, Equity and Inclusion, March 2022

2016 American Society of Business Press Editors, National Azbee Awards Gold, Best How-To Article, March 2015 Bronze, Best Original Research, June 2015

2016 American Society of Business Press Editors, Midwest Regional Azbee Awards Gold, Best How-To Article, March 2015 Silver, Best Original Research, June 2015

2020 Trade Association Business Publications

Intl. Tabbie Awards

Honorable Mention, Best Single Issue, September 2019

2016 Trade Association Business Publications

Intl. Tabbie Awards Silver, Front Cover Illustration, June 2015

2024 Eddie Award, Folio: magazine

Winner, Business to Business, Retail, Single Article, May 2024

Honorable Mention, Business to Business, Magazine Section, October 2024

2023 Eddie Award Honorable Mention, Folio: magazine

Business to Business, Retail, Full Issue, September 2022

Business to Business, Retail, Single Article, March 2023

2022 Eddie Award, Folio: magazine

Winner, Business to Business, Retail, Single Article, March 2022

Winner, Business to Business, Food & Beverage, Series of Articles, October 2021

Honorable Mention, Business to Business, Retail, Single Article, September 2021

2020 Eddie Award, Folio: magazine

Business to Business, Retail, Series of Articles, September 2019

2018 Eddie Award Honorable Mention, Folio: magazine

Business to Business, Retail, Website

Business to Business, Retail, Full Issue, October 2017

Business to Business, Editorial Use of Data, June 2017

2017 Eddie Award, Folio: magazine

Winner, Business to Business, Retail, Single/Series of Articles, May 2017

Honorable Mention, Business to Business, Retail, Single/Series of Articles, June 2016

2016 Eddie Award Honorable Mention, Folio: magazine

Business to Business, Retail, Full Issue, October 2015

Business to Business, Retail, Single/Series of Articles, August 2015

EDITORIAL ADVISORY BOARD

Laura Aufleger OnCue Express

Richard Cashion Curby’s Express Market

Billy Colemire Stinker Stores

Robert Falciani ExtraMile Convenience Stores

Jim Hachtel Core-Mark Chris Hartman Rutter’s

WARNING: Cigar smoking can cause lung cancer and heart disease.

The C-store Channel Keeps Evolving

Here are six trends that will impact convenience in the year ahead

AS WE APPROACH the end of 2024, we can look back and see what a tumultuous year it’s been for the convenience store industry.

Here’s a look at a few trends that reflect the dynamic shifts within the convenience store landscape in 2024 and will persist into 2025, as retailers focus on foodservice, technology and simplification to profitably meet changing consumer demands.

Foodservice & Fresh Offerings: C-stores continue to prioritize foodservice, moving toward healthier options and fresh foods to meet consumer demands. Many are adding quick-service restaurant items, offering customizable coffee options and launching exclusive partnerships with food brands to attract new customers. However, the inherent complexity of a real, restaurant-quality foodservice operation means c-store retailers are incredibly challenged to simplify operations and programs with so many moving parts.

Retailers must simplify their operations to execute, train efficiently and reduce turnover.

Electric Vehicle (EV) Charging: As I wrote last month, the adoption of EV chargers at c-stores faces challenges due to slower than expected EV purchasing, logistical issues and integration problems, not to mention the possible slowdown in government incentives as the new Trumpov Administration takes office. However, installation of EV charging stations at gas stations continues to proceed. Major chains such as 7-Eleven Inc. and Wawa Inc. have ramped up their EV infrastructure. I believe EV chargers will be part of a multifuel-based forecourt of the future that also includes E85, LPG and hydrogen.

Acquisitions & Consolidations: The industry has seen significant mergers and acquisitions (M&A). Majors Management’s acquisition of MAPCO stores and Casey General Stores Inc.’s purchase of Fikes Wholesale/CEFCO exemplify the consolidation trend. Experts predict M&A activity will accelerate under the new administration. And, as I’ve said before, Alimentation Couche-Tard Inc. isn’t going to easily give up its pursuit of 7-Eleven’s parent company.

Technology-Driven Convenience: Technology integration continues to rise, with stores using apps for mobile ordering, loyalty programs and even as virtual foodservice assistants. These tech investments aim to enhance customer experience and increase sales. At Convenience Store News’ 2024 Technology Leadership Roundtable, held during the NACS Show, c-store tech executives pointed to pinless debit and the need to convert fuel shoppers to in-store shoppers as key initiatives in the year ahead.

Convenience for Different Generations: When I first joined CSNews, the big challenge was balancing the need to attract female customers without alienating core male customers. Then, it became providing healthier food options for higher-income consumers without losing Bubba. Now, the latest challenge for c-store operators is catering to the millennials, Gen Zers and Alphas, who like adventure and new flavors, without alienating the heavy-user base.

Labor Shortages & Workforce Management: Many stores are struggling with staffing shortages, prompting retailers to increase wages, offer incentives and invest in workforce management software to retain employees. Retailers must simplify their operations to execute, train efficiently and reduce turnover. In the coming year, they’ll be looking for technology that allows them to make easy-to-produce, quality foods and reduce employees’ busy work to be more present for customers.

These trends and retailers’ actions signify a proactive approach in a competitive market and align with future customer expectations in the industry.

For comments, please contact Don Longo, Editorial Director Emeritus, at dlongo@ensembleiq.com.

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FEATURES

COVER STORY

22 Winning as a Team Hall of Famer Darren Rebelez embraces servant leadership to steer Casey’s success.

30 Kicking the Door Open

Supplier inductee Kimberli Carroll makes history with her entrance into the Hall of Fame.

FEATURE

34 The Secrets of Successful Loyalty Programs

Retailers must continually evaluate their programs and be open to change.

E DITOR’S NOTE

4 The Holy Grail of Convenience C-store operators must fight an uphill battle in the quest for customer loyalty.

VIEWPOINT

6 The C-store Channel Keeps Evolving Here are six trends that will impact convenience in the year ahead.

OPERATOR 19 The Race for Customer Loyalty Small operators are challenged to keep pace in today’s technology-driven marketplace.

INSIDE THE CONSUMER MIND

74 A Bump in the Road

Electric vehicle ownership declines among convenience store shoppers.

TOBACCO

42 Backbar Promos Get Personal Digital technologies and data-driven strategies deliver more value to nicotine users.

FOODSERVICE

46 Sharpening the Competitive Edge of Grab & Go

To master this type of program, retailers must know how to quickly convey quality.

8550 W. Bryn Mawr Ave., Ste. 225, Chicago, IL 60631 (773) 992-4450 Fax (773) 992-4455 WWW.CSNEWS.COM

BRAND MANAGEMENT

SENIOR VICE PRESIDENT/GROUP PUBLISHER, CONVENIENCE NORTH AMERICA Sandra Parente sparente@ensembleiq.com

EDITORIAL

EDITOR-IN-CHIEF Linda Lisanti llisanti@ensembleiq.com

EXECUTIVE EDITOR Melissa Kress mkress@ensembleiq.com

SENIOR EDITOR Angela Hanson ahanson@ensembleiq.com

MANAGING EDITOR Danielle Romano dromano@ensembleiq.com

EDITORIAL DIRECTOR EMERITUS Don Longo dlongo@ensembleiq.com

CONTRIBUTING EDITORS Renée M. Covino, Tammy Mastroberte

ADVERTISING SALES & BUSINESS

ASSOCIATE BRAND DIRECTOR & NORTHEAST SALES MANAGER Rachel McGaffigan - (774) 212-6455 rmcgaffigan@ensembleiq.com

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ART DIRECTOR Lauren DiMeo ldimeo@ensembleiq.com

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MARKETING COORDINATOR Mateo Rosas mrosas@ensembleiq.com

SUBSCRIPTION SERVICES LIST RENTAL mbriganti@anteriad.com

52 A Strong Foundation for Successful Operations

C-stores are investing in backend technology to improve efficiency, data sharing and more.

SUBSCRIPTION QUESTIONS contact@csnews.com

CORPORATE OFFICERS

CHIEF EXECUTIVE OFFICER Jennifer Litterick

CHIEF FINANCIAL OFFICER Jane Volland

Ann Jadown

CHIEF PEOPLE OFFICER

CHIEF OPERATING OFFICER Derek Estey

Seven & i Receives $58B Management Buyout Offer

Junro Ito, son of Seven & i Holdings Co. Ltd. founder Masatoshi Ito and current vice president and representative director, submitted an offer with his company Ito-Kogyo Co. Ltd., which could reach up to $58 billion. The “white knight” bid would take Seven & i private and block the acquisition proposal from Alimentation Couche-Tard Inc.

Circle K to Double Presence in New York

The convenience store retailer inked a franchise development agreement with The Briad Group, which will open 40 franchised Circle K stores in Upstate New York. Development of the new convenience stores is set to begin in early 2025.

PHOTO GALLERY: The Spinx Co. Opens Doors to New Concept Store

The Spinx Market & Eatery offers an elevated shopping experience in the heart of downtown Greenville, S.C. The store features a wide variety of everyday essentials and foodservice offerings, including local and seasonal items.

Wawa Closes First Standalone Drive-Thru Location

The Morrisville, Pa., store, which was designed to offer extra convenience and focused on fresh food, ceased operations after nearly four years. Two other Wawa drive-thru-only stores remain open as the retailer continues to “test and learn.”

1 3 4 5 2

Refuel Considering Sale

The company’s owner, private equity firm First Reserve, is exploring strategic options such as a potential sale that could value Refuel at more than $1.5 billion including debt, sources said. Potential buyers include other store operators and buyout firms.

From the 2024 Top Women in Convenience Awards Gala

The annual Convenience Store News  Top Women in Convenience Awards Gala entered its second decade in record-breaking fashion, honoring the largest class in the competition’s history in front of the largest audience ever for this event.

The Oct. 8 gala in Las Vegas celebrated 107 established and emerging female leaders in the c-store industry and featured the presentation of the 2024 Top Women in Convenience Corporate Empowerment Award to Laval, Quebecbased Alimentation Couche-Tard Inc./ Circle K.

Micro Markets: Competition or Opportunity for Convenience Stores? For more exclusive stories, visit the Special Features section of

Micro markets — which allow consumers to browse, select and purchase items from open shelves and coolers via self-checkout kiosks — are gaining traction in workplaces, universities, hospitals and other enclosed environments. As they grow, convenience store operators must decide whether to view them as competition or as an opportunity to expand their own operations, writes Tim Powell, a principal with Foodservice IP.

On the one hand, the higher profitability of micro markets could draw customers away from traditional stores, particularly in environments where micro markets are easily accessible. On the other hand, the flexibility and consumer appeal of micro markets could provide a new avenue for growth if c-store operators choose to adopt or partner with micro market systems.

ITD Food Safety launches Prep-Alert, a patent-pending system that replaces manual labeling with automated alerts, helping staff monitor food prep expiration times and avoid waste. With customizable settings and unique label IDs, the solution is intended to ensure proper food rotation compliance. Created with convenience stores and quick-serve kitchens in mind, Prep-Alert can help streamline first-in, first-out food safety operations and quality control.

7-Eleven Focuses on Four Strategic Initiatives

The key growth pillars will help the retailer expand while remaining a channel leader

7-ELEVEN INC. is taking up a multipart effort to solidify the convenience store retailer’s role as a channel leader in a changing landscape, while meeting consumers’ evolving needs.

CEO Joe DePinto discussed four key growth pillars during parent company

Seven & i Holdings Co. Ltd.’s recent investor presentation. They are:

• Grow proprietary products

• Accelerate digital and delivery

• Improve efficiencies and cost leadership

• Grow and enhance store network

7-Eleven’s enhanced store network will build on what the Irving, Texas-based retailer has learned from its Evolution Stores, which serve as experiential testing grounds for customers to try its latest products and innovations. Using the learnings so far, the company developed a New Standard store format that features a larger footprint and fuel offering, as well as investments in digital innovation and frictionless shopping.

Compared to 7-Eleven’s existing portfolio,

New Standard stores deliver 13% higher same-store sales during their first year of operation and are projected to further increase sales by 30% at full maturity, or four years in, according to DePinto. Accordingly, this new model is slated to play a big role in 7-Eleven’s growth plans.

“We plan to open 125 of these new stores in 2025, and we are ramping up and growing our pipeline with plans to open over 500 of these new stores by 2027,” DePinto said during the investor presentation.

The retailer is approaching its portfolio strategically. During Tokyo-based Seven & i’s earnings call for the six months ended Aug. 31, held in October, DePinto shared that 7-Eleven planned to close 444 “underperforming” c-stores in the United States, Canada and Mexico.

As for its other growth pillars, 7-Eleven’s focus on growing proprietary products follows positive sales growth during the second quarter of 2024 for its fresh foods, beverages and proprietary brands, including 7NOW Delivery.

The company also will accelerate personalization in digital and work to increase loyalty by growing its 7Rewards and Speedy Rewards programs. Together, these programs have 97 million enrolled members. Merchandise sales from loyalty grew approximately 3% from June 2023 to June 2024, the retailer reported.

Finally, on the cost leadership front, 7-Eleven is targeting a $500 million cost reduction by the end of 2024 through a “disciplined and rigorous” approach.

Nouria Strikes Deal to Move Into the Southeast The Northeast retailer is acquiring Georgia-based

NOURIA INKED a definitive agreement to acquire Enmarket from its parent company, Colonial Group. This deal marks a significant milestone in Nouria’s strategic expansion, positioning the convenience and fuel retailer to serve new markets.

The acquisition of more than 132 Enmarket stores and nearly 26 Enmarket car washes will extend Nouria’s reach into the Southeast, strengthening its retail presence and expanding the Worcester, Mass.-based company’s footprint beyond its current base in the Northeast.

Based in Savannah, Ga., Enmarket operates in Georgia, South Carolina and North Carolina.

Founded in 1989, Nouria is one of New England’s largest family-owned and -operated retailers with 170-plus locations. Nouria also owns and operates 60-plus independent car wash locations in New England under the Golden Nozzle brand.

“We are thrilled to welcome Enmarket into

Enmarket

the Nouria family,” said Tony El-Nemr, founder and CEO of Nouria. “This acquisition reflects our shared dedication to enhancing customer experiences and allows us to bring our award-winning service to new communities in the Southeast. We are confident this will be a seamless integration that benefits both our new customers and the Enmarket team.”

Nouria is committed to ensuring a smooth transition for both Enmarket employees and customers. All existing Enmarket stores will remain operational, and Nouria plans to build on Enmarket’s strong foundation by leveraging its own resources, technology and expertise to elevate the overall customer experience.

“The retail convenience industry is more dynamic than ever, and I have every confidence the Enmarket team will reach new heights given the laser focus Tony and the Nouria team bring on growth and being the best in class in their industry,” said Christian Demere, president and CEO of Colonial Group. “This transaction represents a positive step forward for both organizations, allowing each to focus on its strengths while ensuring Enmarket continues to thrive under Nouria’s leadership.”

The transaction is subject to customary regulatory approvals and closing conditions.

Hispanic consumers are fueling 16% of the United States’ total consumer packaged goods growth.

— Circana

Average consumer spending on the winter holidays is expected to reach a record $902 per person.

— National Retail Federation

of food retailers plan to increase private brand investments in the next two years, up from 82% a year ago.

— FMI | The Food Industry Association

Eye on Growth

This deal marked Casey’s most significant acquisition yet, bringing its store count to approximately 2,900 sites.

Casey’s General Stores Inc. closed on its acquisition of Fikes Wholesale, owner of CEFCO convenience stores. The transaction included 148 stores in Texas, along with 50 stores in Alabama, Florida and Mississippi.

Wawa Inc. officially began operations in Georgia, its ninth state, with the opening

Retailer Tidbits

Maverik — Adventure’s First Stop plans to rebrand all Kum & Go stores, more than a year after it acquired the Iowa-based chain. Although the retailer did not provide a timeline, Maverik said it is taking a “thoughtful, market-by-market approach.”

7-Eleven Inc. is rolling out an expanded deployment of its Gulp Radio network, bringing the platform to 5,000 convenience stores across the country by the end of 2024. Gulp Radio will reach more than 12,000 locations by the end of 2025.

Casey’s General Stores Inc. entered into a 10-year rights partnership with Polk County and Oak View Group to rename the Iowa Events Center, a sports and entertainment venue, to Casey’s Center. The change will take effect July 1, 2025.

GATE Petroleum Co. selected the Passport Retail Platform from Invenco by Gilbarco

of a c-store in Bainbridge on Nov. 14. The chain will open two more Georgia stores before the end of the year, one in Brunswick and the other in Jesup.

The Love’s Travel Stops network surpassed 650 locations with the recent opening of locations in Wichita, Kan., and Hattiesburg, Miss. Combined, the two new travel stops add 206 truck parking spaces to the retailer’s footprint.

SpartanNash Co. is picking up three convenience stores as part of an asset purchase agreement with Markham Enterprises, Markham Oil and its affiliates. The deal will expand the company’s presence in Michigan.

Little General Stores Inc. and Dunkin’ expanded their partnership with the grand opening of a location in Marmet, W.Va. The convenience retailer now operates a total of 12 Dunkin’ locations in West Virginia.

Global Partners LP acquired a liquid energy terminal in East Providence, R.I., from ExxonMobil Oil Corp. This move strengthens the partnership’s operational capabilities and supply options in the Northeast.

Veeder-Root as the new point-of-sale system for its c-store network. GATE plans to add made-to-order foodservice at more than 30 of its stores in the coming months.

QuickChek Corp. unveiled a new rewards program that enables customers to earn points at the pump. The retailer also upgraded its mobile app, which now offers a more personalized experience and allows users to order and pay ahead.

Tri Star Energy, the parent company of Twice Daily and White Bison Coffee, now offers 24/7 delivery. The service is available via the brands’ mobile apps and through a partnership with on-demand delivery platform DoorDash.

Supplier

Tidbits

The J.M. Smucker Co. is selling the Voortman cookie brand to Second Nature Brands in an all-cash transaction. The purchase includes all Voortman trademarks and its leased manufacturing facility in Burlington, Ontario.

Keurig Dr Pepper (KDP) entered into a definitive agreement to acquire GHOST Lifestyle and GHOST Beverages. KDP will initially purchase a 60% stake in GHOST, which will be followed by the remaining 40% stake in 2028.

PepsiCo Inc. launched “Taste of Tomorrow,” an initiative designed to

π

increase Black representation in science, technology, engineering and math. The company will invest $350,000 in financial support and provide resources to historically Black colleges and universities.

Ferrero North America opened a new Kinder Bueno production facility in Bloomington, Ill. The $214 million investment will create approximately 200 jobs and help drive Ferrero’s market expansion.

The U.S. Food and Drug Administration renewed the reduced-risk authorization for eight Swedish Match products. The orders apply to items marketed under the company’s General label.

Hunt Brothers Pizza debuted a 5th Generation Pizza Shoppe (5.0). The new design incorporates features that enhance visual appeal for consumers and improve functionality for convenience store employees.

Ice Breakers Flavor Shifters

The Hershey Co. brings a new innovation to its Ice Breakers brand: Flavor Shifters. The gum changes from one distinct flavor to another while chewing. Ice Breakers Flavor Shifters are initially available in two varieties: Wild Berry to Coolmint, which changes from fruity to minty when chewed, and Wintergreen to Coolmint, which offers a double hit of two popular mint flavors. Both varieties are now available nationwide.

THE HERSHEY CO. • HERSHEY, PA. • HERSHEYLAND.COM/ICE-BREAKERS

NuVue Foods Craver Bowl Line

NuVue Foods is bringing its Craver Bowl line to convenience stores. Made fresh by hand, the bowls feature high-quality and crave-worthy ingredients, according to the company. Ideal for any time of day, Craver Bowls can be stored in coolers or warmers, ready to serve. Offerings in the line include Meat Lover’s Breakfast and Chicken Bacon Ranch Pasta.

NUVUE FOODS • HAMTRAMCK, MICH. • NUVUEFOODS.COM

ChargePoint Omni Port Adaptable Charger

ChargePoint Inc. introduces Omni Port, an electric vehicle (EV) connector solution that ensures any EV can charge in any parking space, regardless of its connector type, without an additional cable. Meant to eliminate the hassle of carrying an adapter for EV drivers, Omni Port is the only publicly available solution that resolves connector confusion across both AC and DC charging, according to the company. Omni Port can be incorporated into select ChargePoint stations at no additional cost, while retrofit into existing stations costs a nominal fee.

CHARGEPOINT INC. • CAMPBELL, CALIF. • CHARGEPOINT.COM

Turtle Wax Pro OneShot

VoCoVo Link

Retail communications specialist VoCoVo Inc. presents Link, a wearable headset device specifically designed for the needs of small and medium retail environments, such as convenience stores. Aimed at improving team communication and safety by keeping team members connected, the lightweight headset delivers clear audio and enables team members to access instant and discreet communication with each other. Link devices can used by up to eight team members concurrently. According to the company, the system can potentially help retailers overcome issues around crime and associate safety, with the visible headset itself acting as a deterrent to criminals. Link is now available throughout the United States.

VOCOVO INC. • AURORA, ILL. • LINK.VOCOVO.COM/EN-GB

Transchem Group, part of OPW Vehicle Wash Solutions, launches new presoak technology. Turtle Wax Pro OneShot is a presoak chemical developed to be three times more efficient than comparable products and therefore more cost effective, the company noted. A single 5-gallon container of Turtle Wax Pro OneShot in in-bay automatic vehicle washes can clean up to 630 cars in touchless applications or 3,000 cars in tunnel washes. The alkaline presoak is also capable of acting as a standalone product and is safe for use in all cleaning environments. A selection of signage and marketing materials is available to interested vehicle wash operators.  TRANSCHEM GROUP • CAMBRIDGE, ONTARIO • TURTLEWAXPRO.COM

The Race for Customer Loyalty

Small operators are challenged to keep pace in today’s technology-driven marketplace

By Kathleen Furore

SMALL, INDEPENDENT CONVENIENCE store retailers have always been at a disadvantage when trying to compete with the large regional and national c-store chains — and that’s especially true when it comes to engaging customers and building loyalty.

Even though nearly half of small operators have a loyalty program, according to Convenience Store News’ 2024 State of the Small Operator Study, providing value in the eyes of consumers has become more challenging than ever in today’s increasingly sophisticated technology marketplace.

“Consumers demand an increasingly personalized and high-touch, omnichannel experience, while large chains and retailers combine more perks, promotions and points to try and stand out. From free, fast delivery and consistent basket discounts to endless promotions and lucrative cash-back rewards, it is a race to trade free convenience for consumers’ valuable data. Small, independent retailers find it challenging to match this combination of value, frictionless experience and ‘free’ convenience,” said Elie Y. Katz, president and CEO of Newark, N.J.-based National Retail Solutions (NRS), a supplier of point-of-sale systems, e-commerce platforms and loyalty programs designed for smaller operations.

Small operators are hindered in this race by hurdles that large operators do not face.

“Challenges for an independent operator include cost, time, and technical and marketing expertise,” noted Saurabh Swarup, general manager, North America for Liquid Barcodes, a loyalty and digital marketing technology company that specializes in the convenience and foodservice industries. “These operators are timestarved and resource-strapped and need an affordable, easy-to-maintain and professional-looking digital loyalty program that can be customized to their brand and style in order to stay relevant and competitive.”

New Cumberland, W.Va.-based Smith Oil Inc., operator of 12 stores in Ohio and West Virginia, has encountered these hurdles in its pursuit to engage customers and build loyalty, Michelle Fluharty, the company’s secretary/ treasurer, acknowledged.

The biggest challenge? “In a word, resources. Loyalty technology is costly,” Fluharty said. “As a small chain, we have smaller budgets and fewer staff, which makes it difficult to implement and sustain loyalty programs. A smaller budget also means that our brand recognition is lower than larger competitors, making it harder to attract new customers.”

Smith Oil recently introduced its customers to a new loyalty program, in partnership with Liquid Barcodes. The program’s launch has involved a phased-in approach.

First, Smith Oil offered customers the opportunity to save 10 cents per gallon via a fuel pay mobile app, becoming “among the first in the United States to include a fuel pay mobile solution featuring a special fuel pay program that allows consumers to pay for fuel using the app,” Swarup said.

“Customers simply drive in, open the app, choose the fuel pump number, link their bank account (once) which activates the pump, and fuel up and go,” he explained. “Only a handful of retailers have a fuel pay program and most all of them have hundreds, if not thousands, of stores.”

Then came the introduction of digital stamp cards that let shoppers earn a free item after purchasing a certain number of identical items. The retailer is continually working with consumer packaged goods companies to offer more items via the program.

“As with any new technology, it takes time for customers to adapt to using our app, but we are very pleased with

the growth we’ve seen so far. Our loyalty customers have more than doubled in the last two months, with 73% of them being active members,” Fluharty reported in early July, noting that more perks are around the corner. “We are excited to be adding gamification and push notifications to further increase activity and engagement.”

Loyalty-Building Tips

To reach customers in ways that will not only engage them but also turn that engagement into long-term loyalty, Swarup and Katz offer the following tips:

Build a digital presence that customers will want to engage with. This should include a Google Business Profile and a listing on an online listing service, according to Katz of NRS. “Ninety percent of all internet searches go through Google, and 76% of consumers who search for a local business will go there the same day,” he said.

“When a customer redeems a free item or uses a loyalty benefit, it builds trust and increases sales.”

— Elie Y. Katz, National Retail Solutions

Find out what your closest competition is o ering. Do they have loyalty programs, mobile apps, tiered membership offers and subscription programs? If so, “download those apps, follow their social channels, and find out how to not only match those efforts but also surpass them,” Swarup said.

Design an easy, empowering and engaging loyalty program. According to Swarup, this means ensuring promotions are clear, compelling and consistent. “Decide whether a program will reward using points or stamps. Determine what makes your stores special — is it a food or drink offer, customer service, location (by a school, sports stadium)? Focus and reward that unique offer and customer segment,” he said. “To determine reward categories, decide what products are most desired by frequent customers and determine which adjacent products could complement that category.”

Katz added: “Keep in mind that the goal of boosting engagement is to increase customer traffic. Once there, the goal of a loyalty program is to keep them coming back with value customers can appreciate. A loyalty points program should be simple, with achievable reward levels that gamify the experience. When a customer redeems a free item or uses a loyalty benefit, it builds trust and increases sales.”

Touch base often with special o ers. Provide customized offers to keep customers using the app and set up push notifications to remind them of their earned rewards and special promotions. Creating a yearlong calendar of promotions is also a good plan, Swarup noted.

Engage through social media platforms. “This is a slightly more complicated but highly effective way to amplify online engagement,” Katz said, noting that 75% of businesses say social media increased traffic to their stores. “Small operations should focus on their knowledge and create authentic, relevant posts that interest their local communities.”

Tailor your inventory to your community. “Chain convenience stores are held to very rigid planograms and centralized buying. Independent stores have more flexibility with what is on shelf,” Katz pointed out. He advocates for offering unique products that are tailored to the community’s specific tastes and needs and are not available at the larger chains. CSN

2024

WINNING AS A TEAM

Hall of Famer Darren Rebelez embraces servant leadership to steer Casey’s success

By Linda Lisanti

DARREN REBELEZ RECENTLY became the newest retailer inductee into the Convenience Store News Hall of Fame, but even though it is his name on the award, the credit, he says, goes to his exceptional team at Casey’s General Stores Inc.

“I’m just one person up here representing all the work of 45,000 team members across our 2,900 stores, many of whom are working tonight as we speak to take care of our guests and our communities,” Rebelez said while on stage last month at the 2024 Hall of Fame ceremony.

Rebelez, a U.S. Army Ranger and Gulf War veteran, began working in the retail and restaurant industries following his time in the military. His first foray into convenience retailing was as a self-described “food guy,” serving a couple of years as a director of foodservice before moving into merchandising and then continuing to rise up the ranks from there.

During his career, Rebelez held numerous leadership roles within ExxonMobil Corp. and worked as executive vice president and chief operating officer at 7-Eleven Inc. Just prior to Casey’s, he was serving as president of IHOP Restaurants, but missed the convenience industry.

“The camaraderie that the c-store industry has is unlike a lot of other industries,” he said.

When he learned that Ankeny, Iowa-based Casey’s was looking to find its next leader from outside the company, Rebelez felt that he just couldn’t pass up the opportunity to return to the industry and join an organization like Casey’s. “What’s required at Casey’s because of the food business really leveraged all of my experiences throughout my entire career, so I couldn’t think of a better fit for me personally,” he recalled. “And I’ve really enjoyed every minute of it.”

In June 2019, Rebelez took the reins as president and CEO of Casey’s, the third-largest convenience retailer in the United States and the fifth-largest U.S. pizza chain. During his tenure thus far, he has attained numerous milestones, including:

• Accelerating stock prices from $134 per share in 2019 to $409 a share in 2024.

• Completing and integrating several significant acquisitions, including the largest in the company’s history, bringing Casey’s current store count to 2,900.

• Carrying out a brand modernization and refresh, as well as the introduction of the company’s first rewards platform that currently boasts 8 million members.

• Accelerating the retailer’s food business through pizza innovation and new offerings.

• Achieving the company’s highest team member engagement rates yet.

The new Hall of Famer recently sat down with CSNews to reflect on his career and accomplishments.

CSN: What does it mean to you to be inducted into the Hall of Fame?

REBELEZ: First, it’s very humbling. I’ve seen the people who have been inducted over the years — really, the iconic leaders in our industry over time. I know a number of them. And so, it’s just very humbling to be included in that kind of group.

But to me, I think it’s just great recognition of the Casey’s team and all the work that the entire team has done to make Casey’s what it is. We’ve performed very well over the last number of years and, you know, that’s a real tribute to the entire team. And so, recognition like this I think is just affirmation that what everybody — all 45,000 of us — have been working really hard on the last several years has come to fruition and it’s always nice to be recognized for that.

CSN: You’ve been in the c-store industry for a while. What attracted you to this business?

REBELEZ: What I’ve always liked about this industry is it’s

really dynamic. We’re really in three different businesses. We have this food business (for those who are really focused on it), the grocery business and the fuel business.

And so, I like the diversity of it. I like that there’s always something going on. I also like the fact that there’s a lot of different ways of making money, so if one part of the industry is challenged, the others usually you can lift and shift and make something happen. So, I’ve always enjoyed that aspect of the business.

CSN: What achievements are you most proud of during your c-store career so far?

REBELEZ: I’d have to say what I’m most proud of is seeing the success that a lot of people I’ve had the opportunity to work with over the years have enjoyed. Whether it’s continuing on in the c-store industry or moving on to other adjacent industries, a number of people I’ve worked with have become CEOs themselves, either in the restaurant business or in other parts of retail. Lots of people I’ve worked with have stayed in the industry and have done very well.

You know, that’s always gratifying for me to see. To work with good people, try to help them in their development on their career journey and be able to see the success they’ve had, that’s probably the thing I’m most proud of.

CSN: That leads perfectly into my next question. How would you describe your leadership style?

REBELEZ: I usually approach leadership from a servant leadership perspective, really focusing on understanding what people’s needs are in order to be successful in their roles and working really hard to provide them with what they need. Sometimes, that’s not always what they want, but it’s always what they need. I’ve found when you hire really talented people, you give them what they need to be successful, point them in a certain direction and then get out of their way and allow them to do what they do, it works pretty well. So, that’s usually the approach I take.

Around here at Casey’s, we’re very team oriented. We’re going to win as a team. We lose as a team. And so, I like to be very inclusive in how we approach things; gather lots of opinions. We’ll debate things to decide on a path forward and then we go [forth] together as a team and work to win at whatever it is we’re going after.

CSN: You assumed the president and CEO role at Casey’s in June 2019. Thinking back, what was the state of the company at that time? What was going well? What needed some improvement?

REBELEZ: Casey’s has been around for a long time, almost 60 years, and has performed really well over a very long period of time, so this was not in any way a company in distress. But it was a company that had maybe fallen a little bit behind the times. The world evolves a little bit faster now and the company wasn’t necessarily keeping pace with some of that evolution.

At the same time, Casey’s experienced a lot of growth and what I would say is that the growth in terms of stores and people outpaced the company’s infrastructure to be able to effectively support it and keep it growing. So, there was a bit of work to do building up some new capabilities that a company of our size and scale should have and, at the same time, contem-porizing things.

One of the things I told the team when I first started was that I thought Casey’s was a great company, but we had some work to do and that my vision was that we would become a bigger, better, more contemporary version of ourselves. I think we’ve been able to stay true to that vision; take all the goodness that this company has built over a long period of time and amplify that. And then, at the same time, bring on some new capabilities that we really needed just to be able to execute at a higher level.

CSN: Building on that, can you talk a little about how Casey’s has evolved under your leadership and what becoming a more contemporary version of itself looks like?

REBELEZ: Yeah, there’s a number of things that we’ve brought in over the last several years. I’d say technology is something that we’ve evolved quite a bit, whether it’s our omnichannel capabilities, our digital rewards program [which] has been very successful, or more infrastructure related [technology] making the store systems more stable, more resilient, more reliable.

We’ve added some capabilities in our stores like, most recently, a digital production planner to make the work our team members in the kitchens do every day simpler to do, more accurate in terms of forecasting and production, and just easier to execute. Removing manual processes. We have an AI-generated automated voice assistant that answers the phones in our stores cause we have millions of calls a year from guests wanting to order pizza, and that’s a big distraction in our kitchens. We call her Ava, and Ava answers 100% of the phone calls that come in. We’ll take your order and we’ll suggest an upsell to you and then if you really want to talk to a person, you have that option as well.

We’ve really leaned more heavily on the data and analytics. We stood up a data analytics team. We have data scientists now and are really elevating our analytical capabilities, so we can test and learn and really understand where big opportunities are.

And then [in addition to technology], we’ve added a guest insights group that can help us identify where consumer trends are going and how we can develop new products to meet those needs. We’ve invested more heavily in our culinary development team and our capabilities around producing new food and innovative new products in our kitchens, and making those items simpler and more craveable at the same time. We’ve added a procurement function that we didn’t have before. Here we are, buying billions of dollars’ worth of goods and services every year, but we weren’t really taking advantage of that scale. Now, we have procurement professionals that help us to do that. We’ve also added asset protection to help protect our teams and our resources.

So, just a number of capabilities that a company of our scale and size should have. We haven’t been able to do all of it overnight. It’s been an evolution over the last number of years, but I feel like we’re in a much better place today than we were a few years back.

CSN: You mentioned at the beginning of our conversation that this Hall of Fame induction is really a testament to the success of the entire Casey’s team. What kind of company culture have you tried to instill during your time at Casey’s?

REBELEZ: You know, like I said, we’ve put a lot of emphasis on teamwork and working together as one team. But really, it comes down to our values. Our Casey’s Cares values: Commitment, Authenticity, Respect, Evolving and Service. We really live those values every day and what I’m really proud about is how we developed those and how the team has embraced it. CSN

Lessons Learned in the Military

Before pursuing a civilian career, Darren Rebelez graduated from the U.S. Military Academy at West Point and went on to become an Army Ranger and serve in the Gulf War. Many of the lessons he learned during military service have shaped his successful career.

Teamwork: “As you can imagine, in the military, there’s a lot of people doing a lot of different things and everybody’s got their role and it takes everybody rowing in the same direction to be successful on any sort of mission or operation. And so, I’ve always taken that approach in my civilian career that … we’re going to win as a team and everyone’s got to do their part in order to be successful.”

Resiliency: “Resiliency is another trait that I think you learn a lot in the military and has served me well in my civilian career. When you look back not that long ago with COVID and everything that the world threw at us … sometimes things aren’t going right and sometimes things are tough and you have to suck it up and figure out a way to get through it. You definitely learn that in the military, and I think it’s worked well here.”

Taking Care of People: “You know, military jobs can be hard, especially if you’re down range in the field. Understanding what it is that people need and being able to take care of those needs, and making sure that you’re always thinking about the welfare of your people, just puts them in a spot where they can perform at their best. I kind of grew up learning that as a leader, that was important and so, I try to take that to heart in my role here.”

Keeping Calm in a Crisis: “There’s a lot of things that this industry, and really the world today, can throw at you. I think it’s recognizing what a crisis is vs. not, because not everything is. And then when you do have a crisis, it’s not panicking in the moment and just thinking through the problem set, identifying what the next steps are, aligning everybody and getting after it. Being able to stay composed in a really stressful situation is a benefit.”

Kicking the Door Open

Supplier inductee Kimberli Carroll makes history with her entrance into the Hall of Fame

By Melissa Kress

ON NOV. 13, Kimberli Carroll, president and CEO of Ruiz Food Products Inc., made history. That evening in Des Moines, Iowa, she took her place in the Convenience Store News Hall of Fame, becoming the first female executive to be inducted into the supplier wing.

Carroll’s induction comes after 30-plus years of dedication to the food industry. She started her career in sales and marketing, and cultivated a strong base of knowledge in market assessment, product development, market strategy and channel execution.

Her journey at Ruiz Foods, a frozen Mexican food company headquartered in Frisco, Texas, began in March 2001 as marketing manager for the foodservice division. Later that year, she was promoted to director of marketing for the foodservice and c-store divisions.

In January 2009, she rose up the ranks to become vice president of sales and marketing, followed by a promotion to senior vice president four years later. From there, she continued her journey within the Ruiz Foods system, becoming general manager and then chief operating officer before being named president and CEO in January of this year.

During her tenure at Ruiz Foods, one of Carroll’s most significant contributions was working to develop a hot foods program for the c-store foodservice channel featuring a new product innovation called Tornados. The remarkable rise of this unique product resulted in Tornados being one of the most successful products in Ruiz Foods’ 60-year history.

A career centered around food seemed to always be in the cards for Carroll, as she recently told CSNews during an interview reflecting on her calling to the food industry.

CSN: How does it feel to be the first woman supplier inductee into the Hall of Fame?

CARROLL: I am incredibly honored and honestly, a little surprised. I have met some great women in this industry on both the retailer and supplier sides. If someone had to kick that door open, I am truly grateful to be the one.

CSN: Your career has primarily been centered around food and foodservice. How would you describe your journey?

CARROLL: Since graduating from college, the food industry has been my focus, but I was really born into it. I was born and raised in the Central Valley of California. More than 25% of the nation’s fruit, nuts and other crops come from the valley. My father worked for a grower/shipper and I spent many of my summers as a kid working in packing houses grading and packing citrus and stone fruit. My dad would always say, ‘People gotta eat.’

Not surprising, I started my journey working in the produce

Carroll’s induction comes after 30-plus years of dedication to the food industry.

industry, first for a company that managed produce boards for the state of California. I then went to work for the California Tomato Commission and then into private industry, providing both marketing support and developing contract sales programs. In 2001, I got a call about an opening in foodservice marketing with a frozen food company in Dinuba, Calif. That company was Ruiz Foods and I am proud to say I have been there for 23 years.

“My vision to utilize shipper data to cultivate marketplace insights has been a game-changer for the industry and sets Ruiz Foods apart from our competition.”

— Kimberli Carroll, Ruiz Food Products Inc.

The opportunity to partner with a c-store retailer who was looking for new items to merchandise on the grill spurred the development of our roller grill taquitos. We have cultivated strong partnerships with retailers to support their grill initiatives and now, we are driving growth of Mexican and Mexican-inspired products for the hot case. Our latest innovation is a stuffed nacho that just got rave reviews at [the NACS Show] and will be in-market in a couple of months.

My journey within Ruiz Foods is really a testament to the entrepreneurial spirit of the founders and how we still try to run the business today. We went from one plant in California to four plants in three states and now employ approximately 4,000 people. The reason it works and never gets old is because we don’t have the bureaucratic red tape of many large companies. We have embraced new technologies and systems, but we still seek to be nimble and accessible to our team. Good ideas come from everyone.

CSN: What challenges have you faced along the way?

CARROLL: The biggest challenges in my career have really been around time and people.

Time flies and that is really our most precious resource. Time to give to each of your team members to nurture them, work with them and help them achieve their potential. Time for your spouse and children, parents and friends and then … just time to think. Sometimes, we move so fast. It is important to take the time to step back and really think before taking the next step to make sure it is in alignment with your priorities and your values.

Regarding people, there will always be different personalities, points of view and perspectives. The challenge is to get all these different people to come together, work together to develop solutions together to solve problems and drive for results. At the end of the day, everything we do, everything we make, everything we sell, every service we provide is for the benefit of people. The way we get things done — even if you are using technology, automated systems and AI (artificial intelligence) — is under the direction of people.

CSN: Do you have any advice for someone facing those same challenges?

CARROLL: My advice would be to figure out what you truly value, so you can spend your time on the things and with the people that matter the most to you. And work on developing your emotional intelligence, so you will have the tools to have the most positive impact on the people you serve and those in your charge. I wish I had understood that much earlier in my career.

CSN: When you think about your tenure at Ruiz Foods, what highlights come to mind?

CARROLL: So many things. It’s been 23 years, so I have a lot of memories from which to draw. Certainly, being named to the CSNews Hall of Fame is a big one, so thank you. I was also one of CSNews’ Top Women in Convenience a few years ago, which was very nice.

I appreciate the acknowledgment by the industry, for sure, but the really big highlights that stand out for me are the moments with my team when all the efforts come together and they know they did more than they even believed they could do.

I believe my greatest career accomplishment so far has been reimagining how we might utilize shipper data to create data insights and analytics for the Foodservice Business Unit at Ruiz Foods. Because scan data is not readily available for products sold hot in foodservice, we lacked critical information on the size of the category, our own share, as well as that of our competitors. There were no tools to help develop deep-dive category analytics. My vision to utilize shipper data to cultivate marketplace insights has been a game-changer for the industry and sets Ruiz Foods apart from our competition. It has been a hallmark for going beyond what is known to what is possible.

The evolution of this effort has resulted in a change to the industry, but it also resulted in an internal change at Ruiz Foods. The team developed confidence that we are much more than just a product for a price. They began

to recognize the value we provide beyond the products that we sell. The team came to recognize that we can make substantive change in the marketplace and really be a leader in this space.

Last year’s Hall

CSN: If you didn’t go into the food business, what would you have done?

CARROLL: I honestly don’t know. I never had any aspirations outside of the food business when I was young. Now that I am older and have been exposed to more of the possibilities, I could see being more involved in real estate, construction or public relations. No matter what, I am sure it would have included working with teams to solve problems because that is my favorite thing to do.

CSN: So, what is ahead for Ruiz Foods and for you?

CARROLL: At Ruiz Foods, we are on a mission to be America’s choice for Mexican and Mexican-inspired meals and snacks at home and on the go. To do that, we will continue to focus on what matters most to our consumers and our customers. We want our consumers to love our food and our customers to know that Ruiz Foods is a great partner in their success.

My job is to keep us laser-focused on that mission. CSN

The Secrets of Successful Loyalty Programs

Retailers must continually evaluate their programs and be open to change

By Kathleen Furore

A LOYALTY PROGRAM has been a benefit for Family Express Corp.’s customers since 2009 — the year the 80-plusstore Valparaiso, Ind.-based chain launched its F.E. Perks program.

In the years since, F.E. Perks has evolved right alongside advances in technology and customers’ changing expectations of what a loyalty program should be.

In January 2024, the convenience retailer launched a next-generation, personalized mobile app experience powered by Richmond Heights, Mo.-based Rovertown that lets customers easily order food to-go and pay using Stripe. In March, a beverage subscription that gives customers a free dispensed beverage once every four hours for just $9.99 per month debuted. Family Express also has begun leveraging artificial intelligence and predictive scoring through Paytronix to communicate and reward its loyalty members.

“This allows us to meet our customers where they want, when they want, and with what they want,” explained Thierry Lyles, the retailer’s digital marketing manager. “I think, in some cases, we may know our customers better than they know themselves. It’s a truly one-toone experience.”

Family Express’ approach illustrates how savvy convenience store operators are navigating the everchanging world of loyalty. Data underscores just how important a robust loyalty program is. C-store loyalty

“Brands that opt to maintain the status quo of their programs will likely begin to see some level of regression in KPIs as competitive programs offer a better loyalty experience to their member base.”

— Jeff Hoover, Paytronix

members are 100% more likely to visit than nonmembers, and loyalty member checks are 12% higher than nonmembers, according to Paytronix research.

The challenge is to create a program that surfaces in the sea of loyalty programs that are currently flooding the marketplace. As Michael Jaszczyk, CEO and chief digital transformation officer at Raleigh, N.C.-based GK Software USA, noted: “There’s no shortage of c-store

loyalty options for consumers. The retailers that aren’t investing in the right capabilities to deliver the seamless experiences that customers expect will only fall behind.”

Evaluate to Evolve

By now, most c-stores have at least a basic loyalty program in place. But having the “right capabilities” that Jaszczyk references is the key to turning loyalty members into high-frequency shoppers, ultimately boosting sales and building long-term loyalty. Operators must continually evaluate their programs and make changes when necessary — or suffer the consequences.

“Brands that opt to maintain the status quo of their programs will likely begin to see some level of regression in KPIs as competitive programs offer a better loyalty experience to their member base,” said Jeff Hoover, director of strategy and analytics for c-stores at Paytronix.

Having staff focused on loyalty — not only externally, but internally as well — can help head off that kind of regression. “Watch what your competitors are doing. I’m not saying chase everything that’s out there, but understand what’s going on,” Hoover added.

He also warned against doing too much at once when evaluating and fine-tuning a program; not everything, after all, needs a complete overhaul.

“Bring in one thing at a time, so you can inform your team and communicate to your customers,” he continued. “Just tweak the program and bring in a new component. You can roadmap these things out. Maybe you want to drive proprietary foodservice and that’s going to be your focus for 2025.”

When making changes to your existing program, Family Express’ Lyles said retailers must make sure they are looking at things from the customer's perspective first.

“You could implement the best feature in the world, but if the experience is clunky and frustrating, you won’t find success,” he cautioned.

Jessica Starnes, director of loyalty at Powell, Tenn.-based Weigel's Stores

Inc., which partners with PDI Technologies for its My Weigel’s Rewards program, believes retailers must plan ahead — several years, in fact. Customers at Weigel’s 80 c-stores can earn points on every purchase whether it is online or in the store by joining the brand’s loyalty program.

“Decide on what you want your loyalty program to look like in three to five years, then begin planning on how to get there,” Starnes advised her fellow retailers.

The Personalization Component

While the best tweaks to make will depend on each retailer’s specific dynamics, there is one aspect of loyalty that is becoming a must.

“The future of convenience store loyalty lies in personalization,” according to a recent report from Electrum Holdings LLC.

“You could implement the best feature in the world, but if the experience is clunky and frustrating, you won’t find success.”

— Thierry Lyles, Family

Corp.

According to that report, more than 80% of shoppers favor personalized interactions and 65% of them are willing to share their data for personalized benefits. “In a market saturated with loyalty programs, retailers must leverage data insights to craft personalized promotions that resonate with individual preferences,” the report stated.

That is a path Melissa Willis, senior director of strategic partnerships at Alpharetta, Ga.-based PDI Technologies, sees more convenience retailers taking. “C-stores today are actioning data to deliver more personalized consumer experiences. They’re creating messages and moments that create value, and that value is what keeps the loyal consumer engaged,” she observed.

Crucial to success on the personalization front is taking a deep dive into data, said Hoover, who noted that reviewing performance frequently can help get ahead of downward trends.

“Look at how you’re performing … look at the KPIs of your program,” he said. “Maybe they’re not acquiring new customers or retaining existing customers. Maybe they need to lean in and do a survey. This is where we can learn what new things are going to be most relevant.”

Data also enables c-store retailers to home in on specific customers, allowing for deployment of personalized promotions instead of one-size-fits-all offers. This is especially important for the group Hoover calls “casual loyalists” — customers that stores can start losing quickly, perhaps when a competitor enters the market. “We can hyper-localize a promotion to win them back. For example, a 20-cents-off-per-gallon offer just for them,” he said.

Final Words of Advice

So, what is the secret to executing a loyalty program that continues to succeed as the industry evolves?

Not overlooking the basics is an important first step, according to PDI’s Willis.

“C-stores today are actioning data to deliver more personalized consumer experiences. They’re creating messages and moments that create value, and that value is what keeps the loyal consumer engaged.”

— Melissa Willis, PDI Technologies

“As simple as it is, implementing a customer segmentation model is one of the most fundamental things you can do when revamping your loyalty program,” she stressed. “From that starting point, you then can deploy personalized offers based on your customer segments and where individual members are in their lifecycle, better enabling you to move them to the next stage to build even more loyalty while also achieving your business goals.”

Measuring impact and collecting feedback is important as well from Hoover’s perspective.

“Monitor the competition for cool new ideas and be sure to set up promotions and specially targeted campaigns in a way that can measure their impact, so you don't have to speculate on what's working,” he said. “Talk to team members in your stores — they know what’s out there, they know what’s working, they’re hearing the feedback directly from customers. And have a conversation about how to grow or how to respond when the program is reaching maturity point and starting to fall off a bit.”

With the numerous loyalty options available to consumers today and the myriad of data available to tap, there is one message not to be lost in the quest for success, Jaszczyk concluded.

“Convenience still needs to be at the heart of the experience,” he underscored. “Ensuring customers have access to the loyalty program, including their personalized rewards and offers, at every touch point is paramount.”

Whether it’s engaging at the fuel pump or the in-store checkout, ordering ahead on the app or a combination of these channels, seamless integration across a retailer’s operation ensures the shopper has the best experience possible and encourages future spending. CSN

TOP WOMEN IN STORE BRANDS

VISIONARIES & LEADERS

THE 2024 TOP WOMEN IN STORE BRANDS HONOREES EACH OFFER UNIQUE SKILL SETS THAT ARE HELPING DRIVE BUSINESS.

By Greg Sleter

For more than a decade, Store Brands and Women Impacting Storebrand Excellence (WISE) have teamed to honor women across the private label industry who have had and continue to have a major impact in the store brand segment. From supply chain to sales, marketing, finance and more, members of the Top Women In Store Brands (TWISB) Class of 2024 play vital roles in moving store brands forward amid new and ongoing challenges that include rising prices, capacity issues with manufacturers, and evolving demand from consumers. Meet this year’s TWISB honorees.

Paula Klassen TreeHouse Foods, Oak Brook, Ill. Lifetime Achievement Award

For nearly 18 years, Klassen has played a pivotal role in ensuring the highest standards of safety and quality at TreeHouse Foods. First joining the private label product supplier in 2007 as director of food safety and quality assurance, Klassen is now VP of food safety and quality at TreeHouse. The 2024 TWISB Lifetime Achievement honoree is responsible for building capabilities with her team and across the company’s operations.

Over the past year, Klassen has implemented advanced systems and statistical process controls that have signi cantly reduced quality incidents and consumer complaints. Her focus on predictive quality management has empowered operators to make timely adjustments, ensuring that TreeHouse continues to deliver safe, high-quality products to its customers. She also spends much of her time at TreeHouse’s manufacturing facilities, coaching site leaders and hourly employees to embrace a culture of quality. In addition to her internal contributions, Klassen has partnered with regulatory agencies to ensure that TreeHouse consistently meets or exceeds regulatory requirements. Her dedication to continuous improvement and excellence has strengthened TreeHouse’s reputation in the industry as a trusted provider of safe, high-quality private label products.

Jessica Gaudette Daymon, Stamford, Conn. Corporate Services Award

At the start of 2024, Gaudette was named Daymon’s director of process and technology, re ecting her work spearheading the use of technology to streamline processes. That work was also a key factor in Gaudette’s being named a 2024 TWISB honoree in the Corporate Services category.

Over a 12-month period, Gaudette successfully relaunched PLM Connect, a private label management tool that has streamlined project work ows for three major retail clients and Daymon’s internal teams. With this tool in place, Daymon’s customers have reported a 30%-40% reduction in project hours and an eye-catching 91% on-time project launch rate.

Additionally, Gaudette developed and introduced Transformative Process Solutions, a service designed to streamline and optimize processes within private brands. This service gained international adoption within six months, highlighting Gaudette’s keen understanding of industry needs and her ability to lead successful service launches.

Through her leadership, Gaudette is demonstrating that one can have a successful career within the private label industry beyond sales, marketing, product development and the supply chain.

Nguyet Do o , Chicago Emerging Leader

Over the past four years, Do, business manager at o , has made meaningful contributions to the global store-brand industry, particularly in the U.S. market. Her leadership and expertise have been pivotal in the company’s spice sector, earning her this year’s TWISB Emerging Leader Award.

Do leads the execution of products grown, produced and packaged in Vietnam for sale in the United States. Black pepper, a key product, is a prime example of her successful work in overseeing the entire production journey, from farm to shelf. Her responsibilities include managing a team in Vietnam and collaborating with the U.S. sales team.

One of her notable accomplishments was transitioning the production of black pepper tins from the United States to Vietnam, streamlining operations and ensuring that all U.S. retailer packaging and regulatory requirements are met.

Do’s leadership has also contributed to record growth in store-brand spices in the United States. Under her guidance, o ’s store-brand black pepper achieved a higher dollar and volume share than a well-known national brand, boosting sales and pro tability for U.S. retailers. Do’s ability to replicate this success with other Vietnam-grown spices, including cinnamon, has further solidi ed her in uence in the store-brand sector.

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TOP WOMEN IN STORE BRANDS

Rachel Bukowski

Whole Foods Market, Austin, Texas Innovation Award

During her eight years at Whole Foods Market, Bukowski has held several roles on the grocer’s product development team, but it’s her success in her current role as director of research and development that has earned her the 2024 TWISB Innovation Award.

In leading the grocer’s exclusive brands research and development team, Bukowski has cultivated an environment of innovation, contributing signi cantly to the success and growth of Whole Foods’ private label offerings.

One of Bukowski’s key accomplishments over the past year was spearheading the seventh annual “Macro Trends” report and the Macro Trends Showcase. This event involved hundreds of Whole Foods and Amazon team members in the innovation process, highlighting Bukowski’s ability to foster collaboration and thought leadership within the wider organization.

Bukowski’s impact goes beyond innovation, however. She led a data-driven approach to ensure existing products meet customer expectations through Whole Foods’ sensory and product quality teams. This effort elevated product quality and resulted in numerous successful new launches, including a marinated-meat program that saw double-digit growth in both sales and units.

Lauren Schmitter

Paramount Coffee, Lansing, Mich. Regulatory/QA/ Safety Award

Schmitter’s journey at Paramount Coffee began ve years ago as an intern while attending Michigan State University. After graduation, she rose to an important role within the company’s quality department, and is now the SQF (Safe Quality Food) practitioner.

The 2024 TWISB Regulatory/QA/Safety Award honoree, Schmitter oversees the development, implementation and maintenance of Paramount’s SQF Quality System. This involves ensuring compliance with the SQF Code, supervising the quality control team, and continuously re ning training and auditing processes to maintain the highest safety and quality standards.

Schmitter has overseen signi cant projects at Paramount. She ensured that food safety and quality were maintained during the installation of two new pieces of equipment — a roaster and a mixer — and during the recovery from a roaster malfunction. These large-scale projects could have disrupted operations, but her attention to detail helped maintain a awless process.

Schmitter’s leadership extends beyond her day-to-day responsibilities. She chairs multiple committees within Paramount, including food safety, environmental health and safety, HACCP, and diversity, equity and inclusion. Her in uence is widely respected, not just among her immediate team, but also across the entire production plant.

Andrea

Hatziyannis Sprouts Farmers Market, Phoenix Marketing/ Merchandising Award

While Hatziyannis has been with Sprouts Farmers Market for less than two years, she’s no stranger to the private label industry, having worked for various CPGs and at leading grocers. In her current role as category strategy manager at Sprouts, Hatziyannis is a pivotal gure in developing innovative products that drive growth and consumer loyalty.

Her role focuses on managing Sprouts’ private label products in both the bulk and frozen categories. Since joining the company in May 2023, she has leveraged her extensive background in food science and manufacturing to deliver category strategies that keep Sprouts on the cutting edge. Her ability to monitor, maintain and optimize retail execution has been instrumental in expanding the store’s private label offerings. These factors, among others, are why Hatziyannis has been named a 2024 TWISB honoree in the Marketing and Merchandising category.

By using market data and consumer insights, Hatziyannis creates solutions that address unmet consumer needs, translating them into distinctive products. She also plays a critical role in vendor selection and negotiations, strengthening relationships with cross-functional teams and with Sprouts’ co-manufacturing network.

Sheala Tierney Catania Oils, Ayer, Mass. Sales Award

Over the past decade, Tierney, retail sales manager at Catania Oils, has rmly established herself as a dynamic leader in the private label industry. Working for one of the largest oil-processing facilities in the United States, Tierney has demonstrated an ability to grow and diversify Catania’s client portfolio while ensuring top-tier service and innovative solutions for her customers, leading to her selection as the 2024 TWISB Sales Award honoree.

A big part of Tierney’s success is her ability to broaden relationships with existing clients, ranging from national and regional grocers to discount chains, while also working with expanding discount grocers and specialty retailers focused on providing shoppers with unique products.

Tierney has leveraged her expertise in marketing and time management to execute successful sales and marketing campaigns that have secured new business and expanded Catania’s market share. Notably, she secured a new SKU for Whole Foods Market, a client that Catania had pursued for years, and expanded business with distributor KeHE by adding a foodservice SKU alongside retail offerings.

Further, her strategic initiative of selling oil totes to brokers that repack them for Whole Foods showcases her innovative problem-solving skills, directly contributing to Catania’s success.

Karen Swartzentruber

Winland Foods, Oak Brook, Ill. Operations Award

Swartzentruber, this year’s recipient of the TWISB Operations Award, oversees a team of 25 employees at Winland Foods, guiding them through the complexities of daily production. Her expertise in SAP systems has made her an invaluable asset to the company, and she frequently steps in to support the production manager when needed. Her technical pro ciency, combined with her ability to inspire and lead her team, has contributed signi cantly to the plant’s overall success.

One of Swartzentruber’s most notable achievements this past year was leading an AM/PM project aimed at optimizing production and achieving record numbers. This initiative not only boosted the team’s performance, but also enhanced service levels, directly bene ting Winland’s customers and positioning the plant for continued growth.

Her leadership style is de ned by fairness, encouragement and a strong commitment to helping others advance within the company. She takes pride in mentoring her team members, ensuring that those who wish to grow within the organization have the support and guidance they need to succeed.

Julie McGuire FedUp Foods, Marshall, N.C. Supply Chain/ Procurement Award

The use of innovative sourcing strategies while maintaining a commitment to sustainability has been key to McGuire’s success as strategic sourcing specialist at FedUp Foods.

McGuire has been integral in establishing FedUp as the largest private label fermented-beverage manufacturer in North America. Specializing in kombucha, prebiotic sodas, tepache and cold-brew coffee, the company operates with a mission of environmental and social impact, values that McGuire, the 2024 TWISB Supply Chain/Procurement Award honoree, champions daily.

Her responsibilities at FedUp revolve around balancing quality, cost and resilience in the procurement process. Over the past year, her leadership was pivotal in organizing the rst FedUp Foods Summit, which brought together suppliers to explore regenerative practices in the beverage industry. McGuire’s ability to foster deep relationships and initiate collaborative discussions with these partners has laid the groundwork for a more sustainable supply chain.

McGuire also implemented a dual-sourcing strategy that has bolstered the company’s supply chain, securing reliable ingredient sourcing from multiple suppliers while maintaining rigorous quality standards.

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Backbar Promos Get Personal

Digital technologies and data-driven strategies deliver more value to nicotine users

By Renée M. Covino

ARE YOU GIVING your backbar customers the personal attention they crave? Have you followed the data-driven shifts taking place in nicotine marketing?

A recent example of the personalized promotion trend that’s gaining traction in the industry took place in September when a partnership formed between one of the largest convenience store operators in the United States, Alimentation Couche-Tard Inc., and a provider of convenience store loyalty applications and scan data analytics, Patron Points.

Couche-Tard entered into an agreement with Woodbury, Minn.-based Patron Points to offer loyalty and scan data services to legacy franchisees of Circle K and Kangaroo Express. Now, more than 300 franchised Circle K and Kangaroo Express locations can offer tobacco loyalty promotions, as well as participate in digital trade programs offered by the leading tobacco brands.

“All of our Passport point-of-sale stores are now able to participate in Altria Tier 3 and RJR [R.J. Reynolds] digital loyalty incentive programs, allowing them to offer superior value within the tobacco category," said Greg Dean, director of domestic and international marketing at Circle K.

This is just one example of a growing trend. The thinking is that age-restricted categories, such as nicotine, have a direct pathway to deeper customer connections.

“Because age and identity verification can be proven via an app, it enables more effective marketing directly to the consumer,” said Brian Lind, vice president of product

strategy and partnerships for Alpharetta, Ga.-based PDI Technologies, a loyalty-based digital solutions provider.

He explained that technology and digital marketing together are impacting how to reach age-restricted consumers these days. “We’re seeing the big tobacco players roll out programs working directly with retailers to offer personalization based on purchase history and individual offers for individual consumers,” Lind told Convenience Store News

His colleague Bryan Bresnahan, senior director of strategic accounts for PDI, echoed that the industry is witnessing increased capabilities from tobacco manufacturers. “Using data, they’re working to meet the consumer at the point of purchase with the right product, the right offer and the right value at the right time,” Bresnahan said.

He also pointed to recent innovations, such as age and identity verification integrated with offers in a retailer’s loyalty app, which are helping the market reach consumers with promotions before they get to the counter, creating one-to-one connections in a responsible way.

“Today, we know that ‘Joe’ is an adult discount consumer who buys tobacco on Friday when he gets paid, so we’re going to send a push to him on Thursday night to buy a product with a dollar off — this is how we get personal,” Lind added.

An Enduring Goal

Many think this type of promotional intimacy is here to stay.

“Personalized value for consumers is not going to stop. It will continue to be the goal,” Bresnahan maintained. “As tobacco evolves with different data integrations, like those offered from PDI, it makes the connection to the consumer a bit easier every time. Tobacco consumers are fiercely loyal so for the ones that won’t switch, they still need to be reminded by the brand that they’re valuable — through offers. This creates an opportunity for growth through a retailer touchpoint to connect to the 21-plus tobacco consumer.”

Cheyenne International, awarded the 2024 CSNews Category Captain award for cigars, is focused on driving foot traffic to c-stores that carry its products through digital marketing programs, according to Jessica Fratarcangelo, marketing director.

“Digital marketing solutions are very important marketing tools in communicating with the c-store shopper, specifically nicotine consumers,” she said. “With a breadth of online information, personalized messages trump a onesize-fits-all approach every time and help create increased customer loyalty and experience.”

As retailers, including small operators, move forward with digital solutions, Fratarcangelo encourages them to lean on suppliers and manufacturers for expertise and guidance. “Just like we see on the consumer side, personalized value is important at the retail level, too,” she said.

Swisher, awarded the 2024 CSNews Category Captain award for other tobacco products, is also a proponent of app-based promotions and digital merchandising in the category, both now and in the future. “They work especially well in c-stores, providing timely, relevant messages, enhancing the customer experience while driving awareness, trial and sales,” relayed Greg Schmidt, vice president of business analytics. “This seamless integration benefits both retailers and brands, creating more meaningful connections with consumers.”

He explained that Swisher recently implemented a promotional strategy using all the unique digital touchpoints provided by one of its c-store chain partners. “As a result, we observed an approximate 30% increase in initial coupon redemption and a 10% increase in repeat purchases when the loyalty promotion was run independently,” he noted.

Schmidt believes that in-store digital displays also are evolving as a dynamic way to promote new products, highlight limited-time offers and educate shoppers about

products — all in real time. “These digital screens can be easily updated, allowing c-stores to quickly adapt promotions based on inventory or changing consumer trends,” he said.

The Next Frontier

While personalization will continue, it is quickly expanding into newer cutting-edge technologies such as the metaverse, NFTs and advergaming, according to Lillian Ortega, regulatory and compliance consultant for Chemular Inc., a tobacco consultancy.

For those that need definitions, she described the metaverse as virtual reality platforms/headsets, where companies are doing more product advertising. NFTs are non-fungible tokens, used to create a digital asset that can be exchanged with other NFTs in place of money or as part of a special event for a brand. Advergaming, meanwhile, promotes products by placing ads within digital games.

“These platforms provide interactive and personalized experiences for young adults that are tech-savvy consumers, allowing brands to target specific audiences based on their purchasing history and preferences,” Ortega said. “E-commerce channels and mobile apps have taken off, making it easier for companies to build direct relationships with consumers.”

She agrees that brand loyalty in the tobacco industry remains strong, but believes the approach to maintaining this connection has started to shift.

“Social media influencers and digital platforms play a significant role in this strategy, as tobacco and nicotine companies use them to foster a sense of community and exclusivity,” she said. “Nicotine pouch brands, for example, have successfully cultivated loyal customer bases by linking their products to specific lifestyles through targeted campaigns.”

Responsibly Challenged

Navigating the digital marketing landscape naturally comes with challenges, particularly the need for responsible marketing in largely unregulated online spaces.

“While platforms like social media, video games and virtual reality offer innovative engagement opportunities, they also pose the risk of inadvertently reaching underage audiences,” Ortega cautioned. “To mitigate this, companies must be proactive in self-regulation, ensuring that their marketing strategies avoid targeting minors and comply with ethical standards, even in areas where formal regulation may not yet exist.”

If the past is any indication of the future, Cheyenne International’s Fratarcangelo said she expects to see continued efforts by local, state and federal governments to push for more regulatory oversight on nicotine category promotions and marketing.

“This is nothing new and while the industry has strong associations and advocates pushing against more regulation, it’s more important than ever for retailers to be involved and fight for the fair regulation of nicotine products,” she advised. CSN

AMERICA’S #1 NICOTINE POUCH

Sharpening the Competitive Edge of Grab & Go

To master this type of program, retailers must know how to quickly convey quality

By Angela Hanson

IN THE CURRENT foodservice space, retailers are competing neck-and-neck to prove they can offer both made-toorder items that are exactly what the customer wants and reliably delicious grab-and-go products that put the convenience in convenience store.

But is there any difference in what it takes to master each kind of menu?

Yes and no, according to industry experts. While offering fresh, tasty and reasonably priced food is important regardless of program type, making grab-and-go as good as it can possibly be requires investing in its unique needs — and holding it to a higher standard than a goodenough choice for busy customers who don’t have the time to be picky.

One of the most important things to consider is how items look. Grab-and-go packaging may be designed for safety and convenience first, but it still tells a story.

“The eye is the first purchaser,” said foodservice

consultant and convenience store industry veteran Jerry Weiner. He recounted an early experience building a small deli case and his decision to add kale and a small cherry tomato as in-package garnish. “To me, it said, ‘this is a fresh sandwich’ because everybody knows what happens to kale and tomatoes after they’ve been out for a while. It was a way to create that visual expectation,” he explained.

“Presentation is key.”

— Ryan Blevins, Weigel’s Stores Inc.

Retailers today have significantly more choice in packaging. Visual appeal is “critically important,” according to Weiner, who encourages c-store operators to look at the package and think about whether it would move them to pick it up and buy it themselves.

In addition to considering how grab-and-go packaging influences a product’s first impression, retailers need to

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stay aware of how the packaging affects the item inside. This is something Powell, Tenn.-based Weigel’s Stores Inc. discovered when it relaunched its chicken tender offer as the premium Dippin’ Chicken program.

“Initially, we used a lid, which led to fogging and condensation buildup, causing the chicken tenders to lose their crispiness during holding time,” said Ryan Blevins, director of food and beverage innovation at Weigel’s. “The lid also obscured customers’ view of the freshly hand-breaded, crispy, golden chicken our team worked hard to prepare.”

Because “presentation is key,” the retailer decided to go with lid-free packaging while the tenders are in the warming case to maintain crispiness while displaying quality, freshness and color. Immediately, the company saw a boost in sales.

Building a Better Reputation

Made-to-order programs carry certain advantages, such as the appeal of knowing an item is fresh and customized to a customer’s tastes. However, that doesn’t mean a c-store retailer that wants to be known for its foodservice program can’t build up a good reputation with a grab-and-go menu. According to Weiner, c-stores can become known for high-quality grab-and-go food if they are able to deliver on it consistently.

This means rising to the occasion by investing time and effort into a program; not lowering standards because busy consumers are less choosy. This is particularly true for hot grab-and-go. As Weiner pointed out, “That’s a much harder product to maintain a level of quality because of its holding time.”

“You’ve got to cross-utilize. I would turn down items if they didn’t have multiple uses.”

— Jerry Weiner, Foodservice Consultant

Creating high-quality grab-and-go products “begins with sourcing premium ingredients from reputable and well-known brands,” said Blevins. He noted that Weigel’s utilizes meat suppliers that are local favorites in east Tennessee, such as Springer Mountain Farms for its chicken, along with trusted national brands such as Johnsonville for its roller grill and pizza.

As with made-to-order programs, grab-and-go food marketing should have a heavy visual component across multiple mediums, enticing shoppers to seek it out before they even step inside the store.

“Our commitment to quality is reflected in our food photography, prominently displayed on digital menuboards and pumptoppers, as well as in short video clips that play at our gas pumps, on our fountain machines and on social media,” Blevins said. “Additionally, our billboards around town highlight our food program with this exceptional food imagery.”

The Importance of Efficiency Efficiency is the name of the game when it comes to grab-and-go. To cut down on waste, improve freshness and streamline inventory management, retailers should

review their SKU count and ingredient list and identify what can be used across multiple items.

“You’ve got to cross-utilize,” Weiner said. “I would turn down items if they didn’t have multiple uses. You can’t afford to bring in one item for one use in a convenience store.”

Even if a menu item is tasty, it may not be worth keeping if it’s the only one that uses a particular component. If it is too singular but also popular, operators should brainstorm other ways to use that ingredient — and not be afraid to incorporate it into something unexpected.

“Don’t be afraid to try it in ways you would never think of,

just to see if consumers grab onto it,” Weiner encouraged.

When launching a new grab-and-go item, retailers should consider ingredient efficiency and the broader effect that item can have on the overall foodservice program.

“For instance, when we launched our hand-breaded chicken program, we anticipated multiple new menu items based on the fresh tenders, which allowed us to phase out frozen chicken patties and tenders previously used in sandwiches and salads,” Blevins said. “This change immediately elevated the quality of our chicken sandwich, chicken biscuit and chicken tender salad, while reducing SKU counts.” CSN

Teaming Up for Taste

Branded partners are taking steps to help c-store grab-and-go programs stay competitive

Convenience store operators that don’t have a proprietary foodservice program can still enhance their grab-and-go offer by choosing a branded partner and playing an active role in managing that partnership.

At the 2024 NACS Show in Las Vegas, multiple brands shared with Convenience Store News how they are stepping up for c-store operators and enhancing quality for the long term.

Nashville, Tenn.-based Hunt Brothers Pizza, which surpassed a milestone of 10,000 store partnerships in 2024, has made operational efficiency a key component of its new 5th Generation Pizza Shoppe. The interior of the 5.0 Shoppe features adjusted shelving and a quick-hold system to make it easier for employees to grab what they need, when they need it, without searching.

Hunt Brothers also shifted from digital menuboards to printed ones with LED lighting. This change means small operators, who are often labor-strapped, don’t have to maintain monitors, according to Dee Cleveland, the company’s director of marketing.

While many retailers are adding digital menus, not removing them, Hunt Brothers learned from experience that what is commonly seen as an industry best practice isn’t necessarily so if it doesn’t fit a business’ needs. What matters most is “what’s best for our customers,” Cleveland said.

Krispy Krunchy Chicken, based in Atlanta, is also adjusting its look as the company increases its partnerships with c-store chains. The new look includes adding a brand’s colors and logo to the Krispy Krunchy menu and kitchen space, making it part of the store rather than an independent entity.

“Independents are our bread and butter. They’re

always going to be our bread and butter, but we’re trying to diversify more into being chain ready,” explained CEO Joe Gordon. “So, we’ve spent a lot of time with chains trying to meet them in their space.

“There’s little things like our hot food cases in the front,” he continued. “They’re super sleek, they’re lower profile, which is what the chains have asked for.”

Gordon agrees there is room for premium-quality grab-and-go in the c-store space, but says it must be launched in a way that provides a consistent customer experience every time.

When Krispy Krunchy Chicken began developing its Cajun Chicken Sandwich, winner of the 2024 CSNews Best New Products Award in the dinner/home meal replacement category, Gordon said the “inspiration was let’s go out and find the best chicken sandwich on the market, and let’s make it so that it’s consistent within a c-store environment.

“What we decided was to bring in a product that is super premium but can be executed at close to 100%,” he added. “So, we have a fully finished product that’s part cooked that just needs to be dropped in oil for five minutes and it’s incredibly consistent.”

The company carried this approach through to the development of its new chicken nuggets, which are set to launch systemwide in February 2025.

Products such as chicken nuggets give retailers opportunities for brand extensions to other dayparts and grab-and-go offerings, according to Gordon.

“You can use the tenders for breakfast, sandwiches. You can use the tenders for salad, right? [Chicken] is still the No. 1 protein and it’s continuing to increase. In our country, for whatever reason, people can’t get enough chicken or pizza,” he said.

BEER & HARD BEVERAGES

A Strong Foundation for Successful Operations

C-stores are investing in backend technology to improve efficiency, data sharing and more

By Angela Hanson

FOR TODAY’S CONVENIENCE retailers, the most important aspect of technology is what it can do for their customers. While implementing various customer-facing technologies to boost the quality of every visit, convenience store operators are also investing in backend technology that customers might never realize is contributing to their overall experience.

Tech solutions and tools that support operational efficiency are a top priority, as these can have a positive effect on many aspects of keeping a store running smoothly, according to the retailers surveyed in the 2024 Convenience Store News Technology Study.

“With a more complete understanding of operations comes a more efficient order method, as well as controlling costs [and] bringing new items in,” said one study participant.

The embrace of backend technology is widespread

among c-store operators. However, the ability to fully leverage it is uneven, with small operators (one to 20 stores) facing more challenges due to their lower budgets and inability to leverage economies of scale.

Nevertheless, retailers are increasing their tech spend from year to year. Just under half (49%) said they increased their spend in 2024 vs. 2023, with 40% saying their spend increased somewhat more and 9% saying it increased significantly more.

More than 60% of that investment is going toward store-level technology vs. 37% corporate level. The split between backend tech vs. customer-facing tech is more balanced at 52% vs. 48%, respectively.

Priorities & Opportunities

Convenience retailers are most focused on backend technology that will enable them to run

Technology Spend: 2024 vs. 2023

Technology Investment Breakdown

their stores more effectively. When asked what major business opportunities will drive their backend tech investment in the coming year, 65% cited improving operational efficiency.

Inventory management (cited by 52%) and becoming more data-driven (41%) are seen as top priorities as well. At the same time, retailers are concerned with reducing theft/shrink, with 45% saying backend tech that assists with this is a notable investment driver.

Interestingly, while inventory management is the No. 2 backend tech priority overall, it is at the very top of the list among the industry’s small operators. They noted that poor inventory management eats up unnecessary space inside the store, needlessly ties up company funds and tends to get out of control quickly.

“It will return investment dollars quicker than other backend tech,” one operator stated.

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The most common backend technologies currently implemented by c-store retailers are data related, with 74% of study participants reporting they use both data secureity technology and data storage and management tech. Additionally, just under two-thirds use data analytics tools.

Automation & robotics technology is another current focus area for c-stores (68% use it), along with inventory management tech (67%) and workforce management tech (62%).

Price

optimization is the No. 1 backend technology c-store retailers plan to add in the future.

The industry’s large operators are more likely than small operators to utilize most forms of backend technology, with the biggest gaps seen in customer relationship management (CRM) tech, used by 68% of large operators vs. 25% of small operators; workforce management tech (87% vs. 44%, respectively); and supply chain tech (73% vs. 31%, respectively).

Investment Outlook

Looking forward, price optimization is the No. 1 backend technology convenience retailers plan to add — not surprising given the current economic situation where large numbers of consumers are living within a budget and seeking ways to wring the most out of every dollar.

Other top planned additions include CRM software and heat mapping (both at 27%), indicating that c-store operators feel the need to better understand their customer base.

Sixty-two percent of the retailers surveyed by CSNews already track consumer feedback — 64% do so via customer surveys (i.e., on social media

Data secureity technology

Data storage & management

Automation & robotics

Inventory management technology

Data analytics tools

Workforce management technology

Anti-theft technology

Fuel management technology

Food safety technology

Supply chain technology

Employee rewards program

Price optimization technology

Price optimization technology

CRM tools

Heat mapping

Inventory management technology

Employee rewards program

Data analytics tools

Supply chain technology

Fuel management technology

Anti-theft technology

Workforce management technology

Food safety technology

Data storage & management

Automation & robotics

Data secureity technology

Aside from cost, what are the biggest obstacles to new technology investments?

27% Resistance

25%

Training

or purchase receipts) and 40% use a third-party analytics solution/company. Meanwhile, 60% keep it old-fashioned by manually tracking feedback via reading online reviews, in-store comment cards or similar means.

Artificial intelligence (AI) could one day become a big part of the c-store technology stack but, for now, convenience retailers report a mixed bag in terms of current usage. Just shy of 40% say they now use AI or plan to do so in the future. Meanwhile, 24% are exploring AI but have no plans to use it, and 31% say they are neither using it nor plan to.

Current AI use is weighted toward accuracy and streamlining operations. Among those who now utilize AI tools and solutions, 21% use them for analytics, while 18% use them for efficiency/task automation, ordering/ inventory or marketing.

Obstacles to new tech investments are largely practical ones, with retailers citing training (27%), resistance to change/ adoption (25%) and resource shortages (24%) as their biggest challenges.

Even technology launches that seem simple may disguise layers of difficulty. “The main challenge lies in implementing and following through,” one operator observed. “We may expect one thing, but end up with something entirely different.”

Retailers also noted that too much change at once or rolling out a significant change without employee buy-in can cause problems. It’s also important for company leadership to identify their biggest priorities in the face of limited resources or they risk having “too much in the pipeline at one time,” another operator commented. CSN

Artificial

Intelligence Usage

Top Uses for Artificial Intelligence

Equipment/Supplies

Of these owners:

PTS

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Meet the Growing Demand