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States Weigh Autonomous-Vehicle Taxes

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WASHINGTON — As vehicles across the United States become more fuel-efficient, some states are considering whether and how to tax autonomous vehicles to make up for lost gas-tax revenue.

In Massachusetts, proposed legislation would levy a 2.5-cents-per-mile tax on autonomous vehicles, The Detroit News reported. The Tennessee state Senate has approved a bill that would implement a 1-cent-per-mile tax on autonomous cars and a 2.6-cents-per-mile tax on autonomous trucks with more than two axles.

The Eno Center for Transportation, a Washington, D.C.-based think tank, has suggested a 1-cent-per-mile federal tax on autonomous vehicles only when they are operating autonomously—paid for by automakers. Paul Lewis, vice president of policy and finance for the Eno Center, said the tax could raise up to $300 million per year, which would make up for lost fuel tax revenue from the shift toward electric vehicles and could fund infrastructure repairs.

“Self-driving cars tend to be very fuel-efficient, and a lot of automakers have talked about how they are going to be all-electric,” Lewis told The Detroit News. “That means they are imposing the same type of wear and tear on roadways without paying into the system.”

The autonomous-vehicle tax would have an advantage over a vehicle-miles-traveled (VMT) tax—another model that states have tested to make up for declining gas-tax revenues. “It’s tremendously difficult to put a tax on something that is historically free,” Lewis said, alluding to a tax on vehicle miles traveled. “The fee is on automated driving, something that doesn’t exist yet. So there’s not a built-in constituency for it.”

The Eno Center also anticipates that autonomous vehicles would initially be used by “elites” because the technology will be expensive. “So it doesn’t have this kind of tax on middle America,” said Lewis.

However, proponents of autonomous vehicles are not enthusiastic about the idea of taxing the still-emerging technology.

“I would say, in terms of usage fees, as a nation we need a strategy for how we fund our infrastructure repairs,” said John Maddox, president and CEO of the American Center for Mobility, a mobility technology testing site in Ypsilanti, Mich. “For autonomous vehicles, I don’t see them as different than any other vehicle in that regard. There’s no difference between an autonomous battery-electric vehicle and a nonautonomous battery-electric vehicle.”

Lewis said the Eno Center would not want the fee to be so large that it would deter autonomous vehicle testing. He noted that if autonomous trucks were included, the amount raised by the penny-per-mile fee would be roughly equivalent to the 18.4-cents-per-gallon federal gasoline tax. And that by levying the fee on the automakers, the proposal would avoid the privacy concerns that have stymied VMT taxes.

“How we see it working is if you get in a self-driving car and you get on the freeway and punch in your destination, Ford is now driving your car,” Lewis said. “And they are probably going to charge you for it. … You’re being [driven] by an autonomous vehicle, so of course it knows exactly where you’re going and how fast you’re going. If you didn’t want to have that tracking, you would turn off the self-driving mode.”

Author(s): 
Samantha Oller

Industry Veteran Joins Convenience Valet Sales Team

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MELROSE PARK, Ill. — Edward Price has joined the Convenience Valet sales team as its Southeast regional sales manager.

Price joins the team with 38 years of sales and managerial experience in the convenience-store industry. He was previously the regional account manager of the mid-Atlantic division at Royal Cup Coffee Co. Prior to his time with Royal Cup, Price was an area manager in the presales division for Coca-Cola Co.

“Ed will be a valuable addition to our sales team,” said Doug Steffen, vice president of sales for Convenience Valet. “His leadership, relationship-focused style and thoughtful drive for results will help us continue to grow in this region of the country. He will certainly be an asset to our team.”

Convenience Valet, Melrose Park, Ill., specializes in repacking and distributing trial- and travel-size consumer products in the health, beauty and personal-care categories, as well as automotive supplies and other general merchandise.

Author(s): 
Abbey Lewis

Mondelez, Brynwood Sell Back to Nature Foods Co.

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GREENWICH, Conn. Brynwood VI and Mondelez International will sell Back to Nature Foods Co. LLC, Naples, Fla., to B&G Foods Inc. for $162.5 million. B&G Foods, Parsippany-Troy Hills, N.J., is home to several prominent c-store snack brands such as Ortega, Pirate Brands and more.

Brynwood VI and Mondelez, East Hanover, N.J., formed the Back to Nature joint venture in 2012. Brynwood VI, a subsidiary of private-equity firm Brynwood Partners, Greenwich, Conn., maintained operating control, while Mondelez held a minority position. In 2013, Mondelez sold controlling interest in the SnackWell’s brand to Brynwood Partners to help revive the low-fat cookie brand. Today, both brands earn about $80 million in annual sales. Convenience-store products under the Back to Nature Foods umbrella include cookies, cake, pretzels, popcorn, nuts and trail mix, granola and juices.

Brynwood Chairman and CEO Hendrik Hartong III told the Wall Street Journal that smaller brands, such as Back to Nature and SnackWell’s, that are part of a larger parent company can benefit from sales such as this recent deal announced Aug. 20. He expects the smaller B&G Foods to be able to devote added attention to the expansion of the brands. B&G’s sales were about $1.4 billion last year, while Mondelez earned $26 billion.

“We are grateful to all of the employees of Back to Nature for their dedication to the business,” said Ian MacTaggart, president and COO of Brynwood Partners and chairman of Back to Nature. “We wish B&G Foods and Back to Nature’s management continued success and look forward to watching them continue to grow the business. … We are grateful to Mondelez International for the support that they provided to the partnership throughout the investment.”

Author(s): 
Abbey Lewis

Eclipse Fuels Double-Digit Gas Price Jump in the Northwest

jota

BOSTON — Thanks to the recent solar eclipse, some Northwest states saw large jumps in their weekly retail gasoline price averages.

While the nationwide trend for retail gasoline prices was downward, 10 states’ retail averages rose, with most of them in the Northwest and Rockies, according to Boston-based GasBuddy. Oregon, the first state to see eclipse totality on Aug. 21, had the biggest increase, with its retail gasoline price average jumping 12 cents per gallon (CPG) week over week, followed by Idaho (up 8 CPG) and Washington (up 5 CPG).

Among the remaining 40 states, those in the Great Lakes region saw the biggest week-over-week declines. Michigan’s retail average fell 11 CPG, followed by Indiana (down 8 CPG), Ohio (down 8 CPG) and Illinois (down 6 CPG). The next-largest declines were closer to the East Coast, and included New Jersey (down 4 CPG), Massachusetts (down 3 CPG) and South Carolina (down 3 CPG). South Carolina was the last state to see eclipse totality. The national retail average gasoline price fell 2 cents per gallon from the past week to $2.32.

GasBuddy pointed to falling oil prices as the driver of lower gasoline prices, with barrels trading down to $46 before rallying and finishing the week at $48.51. This uptick came after Baker Hughes reported the largest weekly drop in the U.S. oil-rig count since the beginning of 2017, a possible sign that producers are struggling in an environment in which oil prices have not been able to rise above $50 per barrel.

Meanwhile, crude-oil inventories fell 8.9 million barrels, according the U.S. Energy Information Administration, a decline that was larger than expected by analysts. Total inventories have fallen to their lowest level since January 2016. Gasoline inventories remained stable.

The lowest retail averages as of Aug. 21 were mainly in the Southeast. South Carolina had the lowest average at $2.05 per gallon, followed by Alabama and Mississippi, both at $2.08. Oklahoma, Missouri and Arkansas rounded out the five states with the lowest retail averages, each at $2.10 per gallon.

GasBuddy expects the Pacific Northwest to have lingering “eclipse-fueled demand spurts” before retail gasoline averages drop toward the end of August. Retail prices in the Great Lakes region may rise as part of a price cycling phenomenon that is typical for the region. And much of the rest of the country should see gasoline prices fall over the coming week.

Author(s): 
Samantha Oller

Cardtronics CEO to Step Down

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HOUSTON — Cardtronics chief executive Steven Rathgaber will retire from his CEO and director positions as of Dec. 31, 2017. He will be succeeded by Edward West, the company’s current chief financial officer and chief operations officer.

Rathgaber will work through a transition with West through the end of 2017. A search is underway for a new chief financial officer to replace West, who will remain in his current position until a new CFO is appointed. Cardtronics said in a press release that West will ensure an orderly transition of responsibilities.

“During Steve’s nearly eight years as CEO, he led a period of tremendous growth in terms of scale, geographic presence, operating infrastructure and organization,” said Dennis Lynch, chairman of Houston-based Cardtronics’ board of directors. “He has positioned the company as the premier ATM platform provider in multiple markets around the world, preparing Cardtronics for its next stage of growth as the financial services industry continues to evolve.

“The building blocks are in place to drive the next leg of growth for Cardtronics, and Ed is the right CEO to lead the transformation of our industry and the company. This is the next step in an orderly succession planning process that has been underway with the board for the last two years.”

Rathgaber also endorsed West. “During this time of rapid change and complexities within the banking, financial services and payments industries, there is no better person to lead Cardtronics than Ed West,” he said. “Ed is a dynamic leader whose vision is exactly what Cardtronics, its clients and shareholders need as the company enters its next period of solution innovation and growth.”

West is currently responsible for leading Cardtronics’ financial functions, planning, corporate development and consolidated global operations. He joined Cardtronics in January 2016, following a 25-year career in senior executive roles, including CEO and CFO, at a number of large public and private corporations, from an early-stage technology firm to a Fortune 100 company, with experience in the financial services, education, technology and business services and aviation industries. West received the CFO of the Year award from Institutional Investor Magazine in 2012 and was previously named one of the Top 40 Under 40 by CFO Magazine.

“Cardtronics has a unique combination of financial institution and retail relationships, global distribution scale and innovation focus, and I am honored to have the opportunity to lead the company,” said West. “The evolution of banking, payments and financial services creates vast opportunities for Cardtronics, and our future is bright. I look forward to working with the team to capitalize on these opportunities.”

Rathgaber joined Cardtronics in January 2010, following a more than 30-year career in senior leadership positions with a number of organizations in the banking, financial services and payments industries. During his tenure, Rathgaber transformed Cardtronics from a U.S. ATM deployer, with approximately 30,000 ATMs owned and operated, into a worldwide ATM specialist, providing services for nearly 237,000 ATMs in 11 countries on four continents. Over this period, annual transactions on the Cardtronics fleet have grown from 400 million annually to more than 2 billion, while annual revenues have grown from less than $500 million to nearly $1.5 billion. Rathgaber has guided Cardtronics through 19 acquisitions during this period.

Author(s): 
Jackson Lewis

Farmer Brothers to Acquire Boyd Coffee Co.

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NORTHLAKE, Texas — Farmer Brothers Co., a national coffee roaster, wholesaler and distributor of coffee, tea and culinary products, has announced plans to purchase convenience-store supplier Boyd Coffee Co. According to a company statement, the purchase price totals up to $42 million in cash and 21,000 shares of new preferred stock.

Farmer Brothers plans to move Boyd’s production volume into its existing facilities; the full transition and integration process is expected to be completed in the next 12 to 18 months.

“We believe the Boyd’s business will be an excellent strategic fit for Farmer Brothers,” said Mike Keown, chief executive officer of Farmer Brothers. “We expect this acquisition will strengthen our position in the marketplace, expand our distribution footprint and generate significant synergies.”

“We are confident Farmer Brothers is the right company to take the Boyd’s brand to the next level,” said Jeffrey Newman, chief executive officer of Boyd. “We look forward to a smooth transition and providing the same high-quality customer service that has been a hallmark of the Boyd Coffee Co. for over 100 years.”

Randy Clark, chairman of the board for Farmer Brothers, said, “We believe Farmer Brothers is in a strong position to benefit from ongoing coffee industry consolidation by executing accretive acquisitions. Coming off the successful acquisitions of China Mist and West Coast Coffee, the Boyd transaction is another opportunity to advance Farmer Brothers’ long-term growth plans.”

Based in Northlake, Texas, Farmer Brothers Co. generated net sales of more than $500 million in fiscal 2016 and has about 1,600 employees nationwide. The company’s primary brands include Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, Cain’s, McGarvey and China Mist.

Founded in 1900 in Portland, Ore., Boyd’s supplies restaurants, hotels and convenience stores with coffee, tea and other beverages. Boyd’s business model is expected to be complementary to Farmer Brothers across customer channels, product portfolios and distribution networks, including a high-touch service model of direct-store-delivery.

Author(s): 
Aimee Harvey

2017 Mystery Shop: Foodservice

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Foodservice programs allow retailers set themselves apart. While several retailers earned ratings of 100% for a variety of foodservice cleanliness measures, Family Express was most consistent in food, and Rotten Robbie was a leader at the fountain.


Coffee

Was the coffee area clean?

ChainScore
Rotten Robbie100%
Rutter’s Farm Stores98.5%
United Pacific97.2%

Was all coffee equipment operational?

ChainScore
Rutter’s Farm Stores100%
Enmarket100%
Family Express98.4%

Fountain

Was the fountain-drink machine and area clean?

ChainScore
Rottern Robbie100%
QuikTrip98.1%
Kwik Trip96.0%

Were all flavors on the fountain-drink machine operational?

ChainScore
Rotten Robbie100%
Rutter’s98.5%
RaceTrac96.8%

Sandwich Cooler

Did the sandwiches look appealing (fresh and attractively presented)?

ChainScore
Family Express100%
Parker’s100%
QuikTrip100%
Rutter’s Farm Stores100%

Were the sandwiches within their expiration date?

ChainScore
Enmarket100%
Family Express100%
Rotten Robbie100%
Rutter’s Farm Stores100%

Was the sandwich cooler clean?

ChainScore
Family Express100%
Rotten Robbie100%
United Pacific100%

Was the temperature in the sandwich cooler within the range of 32 F and 41 F?

ChainScore
United Pacific97.0%
Rutter’s Farm Stores96.9%
Enmarket94.6%

Combo Deals

Did this location have food combo deals?

ChainScore
Maverik100%
Rutter’s Farm Stores100%
Kum & Go99.0%

Was there any promotion material for the food combo deals in the store?

ChainScore
Maverik100%
Family Express100%
United Pacific100%

Next: Customer Service

Author(s): 
CSP Staff

2017 Mystery Shop: Cleanliness

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Overall mystery-shop winner Rutter’s Farm Stores led the way in cleanliness at the pump and inside the store, but perennial winner Kwik Trip and first-timer Rotten Robbie tied for cleanest restrooms.

Pump Island

ChainScore
Rutter’s Farm Stores100%
Kwik Trip97.0%
Rotten Robbie95.2%

Exterior

ChainScore
Rutter’s Farm Stores100%
Rotten Robbie98.4%
United Pacific98.3%

Interior

ChainScore
Rutter’s Farm Stores99.2%
QuikTrip95.7%
Kwik Trip95.3%

Restrooms

ChainScore
Kwik Trip97.5%
Rotten Robbie97.5%
Rutter’s Farm Stores96.7%

Next: Foodservice

2017 Mystery Shop: Overall Scores

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The 2017 mystery shop was conducted through unannounced, overt audits from April 24 to May 31. They took place between 9 a.m. and 5 p.m. any day of the week. Intouch Insight also conducted a  separate covert audit focused on customer service.

York, Pa.-based Rutter’s Farm Stores earned the best overall score with 99%.

Overall Brand Performance

ChainOverall score
Rutter’s Farm Stores99.0%
Kwik Trip96.4%
QuikTrip95.0%
Rotten Robbie94.4%
RaceTrac94.2%
Overall93.4%

Brands Shopped

ChainNumber of shops
Rutter’s Farm Stores65
Kwik Trip100
QuikTrip106
Rotten Robbie21
RaceTrac95
Parker’s48
United Pacific100
Enmarket42
Family Express64
Kum & Go104
Maverik100

Next: Cleanliness

Rotten Robbie’s Fountain of Cleanliness and Friendliness

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In this year’s mystery shop, Rotten Robbie was the only chain to score 100% overall in the fountain category, mastering machine and area cleanliness, keeping supplies fully stocked and all beverage flavors on the machines operational.

But Tom Robinson, president of Robinson Oil Corp., Santa Clara, Calif., humbly dismisses the distinction.

“Our intention is to do well in every category. The reality is that the fountain is right next to the coffee,” he says. “In both instances, we’re trying to keep it wiped up, keep it clean, make sure the coffee is made.

“There’s a lot of classic blocking and tackling, and sometimes you tackle better and sometimes you block better.”

The challenge in any category, he believes, is, ironically, the customer. “If you happen to come in, and I’ve cleaned it, and you don’t mess it up, it stays clean,” he says. “Or, conversely, if you come in and you use it, it’s going to be a little bit messier.”

Rotten Robbie scored just behind Rutter’s in the coffee bar overall, racking up 100% scores for keeping the area clean and fully stocked.

But Robinson is most concerned with how his employees treat customers. The company does its own mystery shopping, which Robinson said is focused “more on friendliness than cleanliness.”

The goal is to reward employees for being friendly—“more carrot than stick,” he says. “We focus on the person. We can tell if the person is friendly or not. If they’re not, it’s their own fault, vs. a light being out or the restroom being clean. That may or may not be directly related to that particular person.”

For the Rotten Robbie program, an employee must do more than greet the customer, smile, make eye contact and say “Thank you.” To get the maximum reward, an employee must also make the customer aware of promotions: “two-fors” for example, such as two energy drinks for $3. “We felt that was good customer service too,” Robinson says.

Rotten Robbie also managed to provide good customer service quickly. The chain scored highest in the covert audit on the acceptability of its wait times.

Managers at Rotten Robbie are compensated with monthly bonuses that are in part based on housekeeping and restrooms. But more important, Robinson says, is that companies do better in all aspects of running a store when there is less turnover. “Generally, our turnover is lower than average,” Robinson says.

Rotten Robbie also scored well in the restroom categories.

“Back in the old days, gas station restrooms were outside,” he says. “We realized a long time ago that restrooms needed to be inside. That’s not any new magic: When they are inside, they are maintained a lot better.”

Author(s): 
Samantha Oller
Greg Lindenberg

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