Brought to you by Whirley-DrinkWorks!

For convenience-store retailers, creating a strategic beverage program that satisfies both customers and retailers can be a challenge. That’s not to say it’s impossible, though. By watching trends and working to implement and promote programs that drive engagement, retailers can build a successful beverage program that drives traffic.

Expand loyalty programs

Loyalty programs within c-stores may not be top of mind with beverages, but in reality, when consumers feel rewarded for their patronage, they’re likely to keep coming back.

“Consumer research and industry best practices indicate that tying a refill mug LTO offer to an existing loyalty program can not only increase participation in the program, but also drive frequency and market basket,” says Jacqui Cintron, vice president of marketing at Whirley-DrinkWorks. “It’s a new way to rethink refill promotions, but requires category and marketing support to be successful.”

In other words, loyalty programs can help increase beverage sales, but customers need to know they exist. Keeping customers engaged on social media, putting up pump toppers and other outside signage to educate customers about the programs, and offering crew incentives for upselling the program to consumers are all great ways to expand loyalty programs’ engagement.

“It’s also important to understand what success looks like before you roll out,” says Dawn Boulanger, vice president of marketing for Tri Star Energy. “What’s the objective? What do you think success will look like and then how do you measure it? Make sure that everybody understands what the objective of the product is before you roll it out.”

Coffee: Breakfast and beyond

Of course coffee sales are strongest during the morning, but there is potential to expand sales throughout the day. Cintron says, “There is an opportunity to promote both hot and cold coffee specialty drinks, bounce back coupons or refill mug loyalty app offers to drive snack occasion visits.

According to Technomic’s 2016 Snacking Occasion Consumer Trend Report, powered by Ignite, 61% of consumers purchase some type of coffee beverage for a snack at least occasionally, so expanding offerings beyond breakfast and morning hours can be an area of opportunity.

Consumers might be enticed by upgraded coffee options like cold-brew or nitro coffee, as well as seasonal LTOs or flavors. And, because those beverages are premium or higher quality, they can be sold at a higher cost. Jim Cox, retail development manager for CITGO, says, “I’m a firm believer that coffee drinkers know the difference between a cheap coffee and a really good coffee, and they will pay for the better coffee.”

Beverage trends bubbling up

To keep consumers coming in for drinks that aren’t just their regular coffee, retailers should keep on top of trends and continually offer new products. Cold brew is gaining popularity rapidly, and frozen drinks can also be a great hook.

Greer Palmer, director of cold dispensed beverages for Circle K North America, says, “I look at the more upscale concepts that are growing, such as Taco Bell Cantina, and they have a whole frozen wall—they really build their whole store around frozen dispensed beverages. I think that’s really interesting and we could learn a lot from them.”

Finally, consider offering healthy drinks such as dispensed protein beverages. Tara Anderson, category sales manager for Holiday Stationstores, says, “People, especially millennials, want something different. They want something that feels kind of cool and a little bit healthier.” Nearly a quarter (23%) of consumers ages 18-34 say that availability of healthy beverages drives their decision on where to purchase a drink, according to Technomic’s 2016 Beverage Consumer Trend Report, so for retailers who want to appeal to younger consumers’ preferences, offering healthy options could be very worthwhile.

How close can a c-store retailer get to delivering a perfect customer experience? Based on results of the 2017 CSP/Intouch Insight Mystery Shop, pretty darn close.

The 11 participating retailers are already highly focused on creating five-star customer experiences and operations. That said, “that best-in-class group really stepped up the numbers,” says Cameron Watt, president and CEO of Intouch Insight Ltd., Ottawa, Ontario, which has partnered with CSP on the annual mystery shop since its inception 13 years ago.

The cumulative score hit an all-time high this year of 93.4%. The top five overall brands—Rutter’s Farm Stores, Kwik Trip, QuikTrip, Rotten Robbie and RaceTrac—scored above 94%.

Rutter’s Farm Stores, however, earns special recognition for its record-breaking score of 99%. While the chain dominated in store cleanliness and many customer-service measures, its performance on the whole broke the mystery-shop mold.

“To score 99%, they stepped it up everywhere,” says Watt. “It’s almost perfection.”

For York, Pa.-based Rutter’s Farm Stores, which has 67 stores in Pennsylvania, clinching the win can be credited to the hard work of its employees—and its DNA in the dairy business.

“We’re an old company and have literally been selling milk for 96 years,” says Scott Hartman, president and CEO. “The culture of dairy is cleanliness and sanitation, because you just can’t afford not to have a clean, sanitized dairy.”

Rutter’s scored 100% in pump-island and exterior cleanliness, and more than 99% in interior cleanliness.

The retailer credits much of this performance to following procedure. Since 2009, Rutter’s has trained all store employees in HACCP food-safety protocol.

It also scored the highest cumulative score for the coffee bar and second-highest for fountain, keeping the area clean and equipment operational.

“Keeping more than 60 stores clean is challenging in itself, but it’s a gratifying challenge,” says Jere Matthews, vice president of operations. “One of the biggest challenges with that is finding a lull in customer traffic when you can clean the various areas.”

Rutter’s also cleaned up in customer service. The chain finished second, just behind Kwik Trip, in a covert audit that Intouch Insight conducted at the chains. It scored highest in cashiers who appeared happy to serve customers. This metric is new to the CSP mystery shop, and very telling.

“If a customer thinks the person across the counter was happy to serve them, that correlates to customer satisfaction,” says Watt.

Rutter’s strong performance in this area is a result of its focus on hiring people pleasers. The screening process begins with a one-on-one interview and continues during new-hire orientation. Trainers evaluate a recruit’s body language, such as their eye contact, as well as how social they act with others in the class.

“It’s an attempt to determine if it’s a real happy or a fake happy, because obviously our customers will know if it’s a fake happy,” Matthews says.

Rutter’s believes in keeping its employees satisfied. Its starting wage is $10 per hour, which Hartman describes as very competitive for central Pennsylvania.

It also believes in promoting from within and providing a career path for its employees. About 95% of Rutter’s store managers started at the company in a different role.

As Rutter’s grows beyond its Pennsylvania borders—with plans to open its first stores in Maryland and West Virginia in 2017—it will assign current supervisors to act as store managers at the new sites, exporting the company culture.

“They can carry the flag with them as we grow out to these new places,” says Hartman.

After almost reaching perfection, does Rutter’s see an opportunity for growth and improvement in the years ahead?

“We scored 99%,” Hartman says with a smile. “Clearly there’s 1% there.”

Photography by Matt Roth

LEXINGTON, Ky. — Following its recommitment to expanding its franchise into convenience stores, A&W Restaurants returned to the days of yon with a testament to its craft-beverage roots: Freshly made Root Beer is now being served at all A&W restaurant locations across the globe.

The beverage is created through a mixture of the brand’s top-secret blend of spices, real cane sugar and water to create the signature A&W taste. This summer, the last U.S. restaurants pouring A&W root beer made from a premixed bag switched to mixing it fresh, according to the company.

“Our commitment to serve made-fresh root beer in all of our restaurants signifies a return to our company roots, when our founders Roy Allen and Frank Wright introduced it at a parade honoring World War I veterans,” said Sarah Blasi, vice president of marketing for Lexington, Ky.-based A&W Restaurants. “This beverage has been the cornerstone of our brand identity for almost 100 years, and we are proud to once again make it in each restaurant and serve it fresh.”

The switch to bagged concentrate was a cost- and space-saving move made back in the early 2000s by previous ownership. At the time, large kettles and paddles were required to make the beverage from scratch. The kettles took up needed space and required constant mixing from employees. A&W found a solution in a new auto-mixer, which is smaller, requires far less labor and makes root beer from scratch in much less time.

“Our root beer, like our brand, is iconic, and we want to treat our signature beverage with as much love as we can,” Blasi said. “Now that A&W’s root beer is again made fresh in-house in 100% of our restaurants, it can rightfully assume its position as an original, all American craft beverage.”

In February, A&W Restaurants launched a nationwide expansion plan for fuel and convenience-store locations. A&W franchisees own and operate 630 U.S. restaurants, nearly 100 of which are located in gas stations and c-stores. In the past five years, A&W has opened 15 c-store units. The new growth initiative calls for 12 c-store locations to launch in 2017.

IRVING, Texas — 7-Eleven Inc. has won the Alliance to Save Energy’s Built Environment award for its commitment to reducing energy consumption and improving efficiency in its convenience stores.

7-Eleven has successfully decreased electricity use in store operations by an estimated 21% over the past seven years through installing LED lighting, energy-management systems and high-efficiency HVAC units.

Similarly, the chain announced plans earlier this year to power 425 of its Texas stores with nothing but wind energy for 98 months starting June 2018.

“As the convenience retail leader, we’re proud to be setting an example in maximizing energy efficiency and sustainability,” said Joe DePinto, 7-Eleven president and CEO. “Over the past seven years, we’ve invested in capital improvements in our stores saving 458,000 megawatt hours each year and reducing our energy footprint. This is good for the environment, and it’s good for our bottom line. We’re committed to continuing this work, and we’re honored to accept this award from the Alliance to Save Energy.”

The Alliance to Save Energy has had 25 years of recognizing innovators in the energy-efficiency field and rewarding the hard work of those dedicated to saving energy. This year, winners will be recognized at a dinner on Sept. 14 in Washington, D.C. A list of winners can be viewed here.

7-Eleven Inc. is the largest chain in the convenience-retailing industry. Based in Irving, Texas, 7-Eleven operates, franchises and/or licenses more than 63,000 stores in 18 countries, including 10,900 in North America.

PHILADELPHIA — A new study of beverage sales in and around Philadelphia since the city enacted a 1.5-cent-per-ounce tax on sweetened drinks shows carbonated-soft-drink (CSD) sales dropped “a staggering 55%” inside the city. That was offset, however, by a 38% increase in soda sales just outside the border of the city, according to the report from Catalina, a digital media company based in St. Petersburg, Fla.

“This shift in soft-drink purchasing behavior can also be seen in the number of soda shopping trips and in the volume of purchases per trip just outside the border. The volume of soft-drink purchases per trip is up 17% compared to last year, and overall penetration of carbonated-soft-drink shoppers is up 12%,” the report says. “Our study also shows that sales of bottled water, perhaps an alternative to sweetened beverages, have increased in Philadelphia. However, the sales of natural refrigerated juices, which are also not taxed, have declined, most likely because shoppers mistakenly believe they are being taxed.”

Below is an infographic looking at the results of Catalina’s report, which studied 109,000 transactions in and outside of the Philadelphia city limits and concluded: “Across a variety of sweetened beverage categories, the Philadelphia sugar tax has dramatically cut sales within Philadelphia’s city limits; however, it has also substantially increased sales at stores just outside city limits. Many shoppers are now traveling outside the city to buy their sweetened beverages.”

IRVINE, Calif. — Advantage Solutions is acquiring The Data Council, a provider of product data and images.

The Data Council’s IX-One platform offers product information to suppliers, brokers, distributors and retailers. The Data Council will be absorbed into Advantage’s Digital Technology Division, which is focused on expanding the company’s portfolio of services. The Data Council will continue to operate under its current name with its leadership unchanged. Terms of the transaction were not disclosed.

The IX-One solution takes a 360-degree product image and captures all product attributes to create a centralized data and image exchange for suppliers to access and share their product information with trading partners. The platform captures more than 30 photos and 1,000 data points per item, including label-based claims and third-party certifications, as well as supply-chain and logistic information such as weight and dimensions. Product data and images are royalty-free. Members can use, post and share their information from a centralized database.

“The importance of comprehensive product information has never been more critical to retailers and brands,” said David Cortese, president of Advantage Digital Technology. “Product content has become a key factor in selling as consumers seek transparency and details in the products they buy. The Data Council’s IX-One solution solves a decadeslong industry challenge of providing access to consistent product information in one place that manufacturers and retailers can leverage across the enterprise.”

Troy Benscoter, CEO of The Data Council, said, “We are so excited to become part of the Advantage Digital Technology family. This partnership allows us to realize our original dream of revolutionizing the retail supply chain through the efficient collection and sharing of product information. The best part is that our members will receive the same personal attention they’ve come to expect, but we now have access to the broader resources and support within the Advantage Digital Technology division to help us along our journey.”

The Data Council, based in Jacksonville, Fla., is a provider of retail product information solutions. Its IX-One membership-based platform provides independently verified and standardized product information to vendors, brokers, distributors, retailers and key partners in the organic, natural and specialty products industry. 

Advantage, Irvine, Calif., offers customizable and technology-enabled sales and marketing solutions to help manufacturers and retailers across a broad range of channels drive consumer demand, increase sales and achieve operating efficiencies. It has offices throughout the United States and Canada and maintains a platform in select markets throughout Africa, Asia, Australia and Europe to service the global needs of multinational manufacturers.

SAN FRANCISCO — A signature campaign will force a recently passed ordinance banning the sale of menthol-flavored tobacco products in San Francisco to be put before a vote by city residents.

The campaign, led by a coalition of residents, business leaders, retailers and trade associations called Let’s Be Real San Francisco, acquired more than 25,000 signatures, well over the 19,000 necessary to require the city’s board of supervisors to place a referendum question on an election ballot next year to let citizens vote for or against the ordinance.

San Francisco’s board of supervisors approved the measure on June 20, with implementation scheduled to begin in April 2018.

To execute on the referendum mandate, the supervisors have three options, according to Thomas Briant, executive director, NATO, Minneapolis. NATO, a tobacco retail-sales-outlet association, is part of the coalition.

The board can:

1. Schedule the referendum vote for the next regular primary election that is already planned for June 5, 2018.
2. Set a special election date earlier than the June 5, 2018, primary election date. (The city would need to cover the cost of a special election.)
3. Consider repealing the flavor-ban ordinance without a public vote.

Getting the required number of signatures was difficult, Briant said, adding it was done “in an attempt to protect the right of retailers to sell lawful products and the right of legal-age adults to purchase legal tobacco products.”

LONDON — As the United Kingdom commits itself to a gasoline- and diesel-free vehicle fleet, one major automaker is predicting that the number of electric-vehicle (EV) charging stations in the country are only a few years away from eclipsing the number of fueling stations.

In a recent analysis, Nissan predicted that EV charging stations would outnumber gas stations—petrol stations in the United Kingdom—by August 2020. The auto and EV manufacturer said the number of fueling stations in the United Kingdom has fallen by more than 75% in four decades, while the number of EV charging points has grown to thousands within a few years.

Nissan was among the first major automakers to introduce a mass-market EV with the Nissan Leaf, which debuted in 2010 in the United States. The Leaf is currently the best-selling EV in the world, with more than 250,000 sold worldwide as of December 2016.

The growth in EVs is coinciding with a decline in U.K. petrol stations, which plummeted from more than 37,000 in 1970 to fewer than 8,500 by 2016. From 2000 to 2016 alone the number of petrol stations fell more than 34%. Heavy competition from supermarkets that have added fuel pumps is one reason behind the steep decline.

In its analysis, Nissan predicts the number of U.K. petrol stations will drop to fewer than 7,870 by August 2020, assuming the same rate of decline.

Meanwhile, the number of EV charging stations—totaling more than 4,100 at the end of 2016—should hit 7,900 by August 2020, Nissan predicts. If EV adoption accelerates, “this crossover could happen a lot sooner,” the automaker said.

“As electric-vehicle sales take off, the charging infrastructure is keeping pace and paving the way for convenient all-electric driving,” said Edward Jones, EV manager for Nissan Motor (GB), London. “Combine that with constant improvements in our battery performance and we believe the tipping point for mass EV uptake is upon us.”

Some traditional fuel retailers in the United Kingdom are attempting to participate in the EV evolution. Most recently, Royal Dutch Shell opened EV charging stations at some of its U.K. sites in 2017, and BP is in talks with unnamed EV manufacturers to partner on a network of charging stations at its retailer sites around the world. And in the United States, Nissan has partnered with several convenience-store chains to add charging stations.

In June 2017, the U.K. government announced that all large fuel retailers and “motorway services”—similar to rest stops or oases in the United States—would be required to add charging stations, Auto Express reported. The new law comes as EV ownership in the United Kingdom grew from 2,254 vehicles in 2012 to nearly 86,000 at the end of 2016. Charging infrastructure has lagged, with the ratio of EVs to charging stations growing from 0.78 to 7.32 in only four years.

Ninety-eight percent of motorway services in the United Kingdom already offer charging stations, according to Nissan, with many offering Level 3 units that can charge an EV battery to 80% capacity in about 30 minutes. Nissan’s newest Leaf model offers 155 miles of range on one charge, which would cover about 90% of average daily commutes, according to the automaker.

HUMBLE, Texas — QMart, the retail arm of Houston-based fuel marketer Northwest Petroleum (NWP), recently launched an impressive new store design in Humble, Texas, featuring its made-to-order foodservice offering, dubbed The Q. Meelad Al-Arashi, QMart’s chief marketing officer, offered insights into the company’s newest prototype.

Q: What’s the story behind NWP and its QMart concept?

A: NWP was founded in 1991 and is a branded fuel retailer and an official fuel partner of Shell and Phillips 66. We operate 24 convenience stores, one of which is a Pilot Flying J truckstop in Jarrell, Texas. Our stores stretch across the Houston area, Austin, San Antonio and Oklahoma. QMart is our proprietary convenience-store line built with modernity and technology at its core.

Q: What defines the customer experience in the new QMart prototype?

A: Our stores are fun and are very technologically advanced, with self-ordering kiosks, free Wi-Fi, smartphone-charging stations and a cafe ambiance. We’re especially proud of our made-to-order menu that is always crafted with freshly prepared ingredients.

Q: What are some of the traffic drivers in the store? Why would a customer choose your latest QMart over another quality c-store or quick-service restaurant?

A: Our food is made to order. Customers can watch as their food is cooked, and depending on what’s ordered, oftentimes it’s sizzling and fresh off the grill.

Another important element is our coffee. All of our coffee is Rainforest Alliance-certified. The farms and forests where the coffee originates meet rigorous environmental, social and economic criteria designed to conserve wildlife; safeguard soils and waterways; protect workers, their families and local communities; and increase livelihoods.

Another key driver is our express ordering. So it’s imperative to ensure that the self-ordering kiosks’ user experience aligns with the brand’s personality, which is why I’m redesigning it. The plan is to bridge the gap between digital and in-store retail. Recently, I was awarded the Gold Hermes Creative Award for Consumer Engagement in Emerging Technologies and New Media for my work on QMart in the digital sphere.

On the scale of brand archetypes, QMart lands between “hero” and “lover.” That challenges us to be innovative, disruptive and courageous in approaching the customer experience and the drivers that compel loyalty and evangelism.

Q: Do you offer any loyalty programs? What role, if any, does social media play in your marketing efforts and customer communications?

A: We may launch the Phillips 66 KickBack loyalty program sometime in 2018. The card is free and can be used for both fuel and in-store purchases while earning points to redeem for gasoline, prizes and more.

I’m also developing a mobile ordering app [that lets] customers customize their orders, pay and then pick up their food without having to wait in line.

Q: How is your go-to-market strategy evolving? What future changes do you intend to make as you open new stores?

A: We continue to look at new ways to heighten customer experiences. I’m working on redesigning the coffee bar and the food-counter area to bring life to the kitchen so that it really becomes an immersive experience that appeals to the senses. We serve high-quality brews under our sub-brand QBrew, so the consumer experience should parallel the quality.

• Click here to see more of Northwest Petroleum’s Qmart.

PENNSAUKEN, N.J. — Snack manufacturer J&J Snack Foods Corp. is acquiring the Labriola Baking Co., a premium bakery located outside Chicago in Alsip, Ill.

Labriola Baking began in 1993 as a local delivery bakery and has grown into a provider of prebaked breads, rolls and soft pretzels for retail in-store bakery and foodservice outlets nationwide.

“The Labriola Baking Co. was built upon high quality, authentic products. We have been a longtime admirer of the company, and we’re eager to have Labriola join our J&J Snack Foods family of brands and bakeries,” said Jerry Law, senior vice president of J&J Snack Foods, in a release. “We look forward to marrying Labriola’s quality product offerings with our current portfolio, thus providing additional opportunities for our customers and consumers.”

The acquisition does not include Labriola’s restaurants, Alissa Davis, vice president of marketing for J&J Snack Foods, told CSP Daily News.

Pennsauken, N.J.-based J&J Snack Foods Corp. provides nutritional and affordable branded niche snack foods and beverages to foodservice and retail supermarket outlets. Some of its products are SuperPretzel, Bavarian Bakery and other soft pretzels; Icee and Slush Puppie frozen beverages; Luigi’s Minute Maid frozen juice bars and ices; Mary B’s biscuits and dumplings; Daddy Ray’s fig and fruit bars; Patio Burritos; and other products, including sandwiches.