KAPOLEI, Hawaii — Island Energy Services LLC has put a portfolio of 12 convenience stores up for sale. On June 7, the company directed commercial real-estate firm CBRE Hawaii to proceed with a sale-leaseback program intended to monetize the underlying real-estate value of the 12 locations owned by IES Retail LLC.

Eight of the stations are in Honolulu, two are in Waipahu and one each is in Kailua and Pearl City.

“IES intends to enter into long-term leases at the 12 stations to ensure the continued success of Texaco in Hawaii, aligning these 12 stations with the 44 other Texaco stations across the statewide network,” Carina Tagupa, a spokesperson for Island Energy Services, Hilo, Hawaii, told CSP Daily News.

“Proceeds generated from the sale are expected to be used to invest in the business and serve Hawaii’s energy needs,” she said. “There will be no impact to service-station employees, customers and retailers, or to the safe and reliable operations of Texaco service stations.”

Island Energy Services is the exclusive licensee of the Texaco brand in Hawaii. The company is in the process of converting its Chevron locations in Hawaii to Chevron’s sister brand, Texaco. It rebranded the first station, in Hilo, in mid-June.

The company has 56 stations statewide. On Oahu, 29 of 30 have transitioned to Texaco, Tagupa said. On Hawaii Island, four of five have been completed, with the last station in West Hawaii  to transition in September. Next week, the company will be rebranding all five stations on Kauai. All of the rebrands will be completed by the end of October.

After the transition, all locations will continue to offer the same service, Safeway reward program and use of existing Chevron and Texaco credit cards. The newly rebranded Texaco stations will also continue to offer Techron in all grades of gasoline: Texaco Unleaded, Power Plus and Power Premium. At select stations, beginning with the Waiakea location, Texaco will be adding diesel.

Kapolei, Hawaii-based Island Energy Services is controlled by One Rock Capital Partners LP, a New York-based private-equity firm. Through its wholly owned affiliates IES Downstream LLC and IES Retail LLC, it operates assets previously owned and operated by Chevron USA Inc., including a refinery, interest in a network of gas stations statewide, four product distribution terminals and related logistical assets.

ALEXANDRIA, Va. — The National Association of Convenience Stores (NACS) is partnering with the U.S. Department of Homeland Security (DHS) Blue Campaign to help combat human trafficking.

The DHS Blue Campaign raises public awareness about human trafficking, leveraging partnerships to educate the public to recognize human trafficking and report suspected instances. The Blue Campaign also offers training to law enforcement and others to increase detection and investigation of human trafficking, and to protect victims and bring suspected traffickers to justice.

Through the partnership, Alexandria, Va.-based NACS will provide training and awareness materials (posters, handouts, etc.) to members free of charge.

“Convenience stores serve 160 million customers a day in every community across the country,” said Jeff Lenard, vice president of strategic industry initiatives for NACS. “Our industry is well-equipped to share important messages with our customers so they can collectively create the equivalent of a neighborhood watch program in their communities.”

Lenard also serves as a board member for the National Safe Place Network, which works with companies, including convenience stores, to provide access to immediate help and supportive resources for youth in need.

The new partnership with the DHS Blue campaign is the latest of several new programs developed by NACS this year to help retailers develop new tools to serve their communities. In June, NACS announced a partnership with the American Red Cross to advance community giving and disaster relief programs for NACS member companies. In May, NACS signed a commitment with the Partnership for a Healthier America to help c-stores provide more visibility to healthier choices inside their stores. NACS was the first retail-focused association to partner with either of these nationally respected organizations.

“Convenience stores are as closely tied to their local communities as any retail channel,” Lenard said. “Representing one-third of all retail stores in the United States, convenience stores don’t just sell products and services that people enjoy; they make a difference in their communities and help address important national initiative groups at a local level.”

Brought to you by Keurig Green Mountain.

After a summer of refreshing iced coffees, fall can signal a return to the regular hot cup of joe for many coffee drinkers. But just because your customers might stick to a routine doesn’t mean your coffee-bar offerings should.

Keep customers interested by offering a variety of options, such as seasonal beverages that can be enjoyed either hot or over ice. Although hot coffee is popular year-round, Technomic’s 2016 Beverage Consumer Trend Report noted that 59% of consumers say they consumed a cold/iced or blended coffee drink in the past month. So, it’s in retailers’ interests to keep consumers coming back for more by offering new and trending iterations, like cold-brew coffee, along with the trusty standbys like iced coffee.

Hot or iced, it’s all nice

When it comes to purchasing coffee at convenience stores, according to Technomic data presented at the 2017 CSP EduNetworking Hot Dispensed Beverages Forum, 38% of consumers say they are purchasing hot specialty coffee drinks more now than they did two years ago, and 65% of consumers say they’ve ordered a regular hot coffee drink at least once in the past month. But although a lot of people do still switch back to hot coffee when the weather cools off, that’s not what everyone does anymore.

Chuck Moyer, food service category manager for Rutter’s, a Pennsylvania-based chain of c-stores, says, “Several years ago, you would have that September, October increase in hot coffee. And you still do, but there’s people that are now purchasing iced coffee, iced lattes, cold-brew coffee year-round, and not switching back and forth depending on the temperature.”

In other words, no matter what the weather forecast says, operators should strive to offer the latest coffee drinks—hot and cold—to maximize profits and engagement.

Pumpkin, pumpkin and more pumpkin

C-stores know it’s important to offer customers different types of coffee—decaf, different roasts, etc.—but flavored and seasonal coffees have been on the rise for several years now, so it’s also essential to offer specialty flavors as the seasons change.

According to Technomic’s MenuMonitor, the top 10 most popular flavors for all coffee beverages at c-stores are:

1. Vanilla
2. Hazelnut
3. Mocha
4. Caramel
5. Cream
6. Chocolate
7. Pumpkin
8. Banana
9. Blueberry
10. Chai

And while many of these flavors are popular year-round, there are a few that may increase in demand as the weather cools down, such as caramel.

What consumers really want, though, is pumpkin spice.

“Today, everybody just expects pumpkin everything,” Moyer says. “We have pumpkin-spice cappuccino, syrup and creamer for the condiment bar. From September to November, everything’s pumpkin. I’m trying to expand it some, because obviously there are some customers who may just get pumpkined out—there’s opportunity for possibly getting into apple ciders and other things that are harvested around fall. You can never not have the pumpkin, though.” 

WELLESLEY HILLS, Mass. — Gulf Oil and Discover Financial Services recently launched an advertising campaign to promote the new Gulf Pay app that allows users to link their Discover card as the preferred payment method.

By downloading the free Gulf Pay app and linking a Discover card within the app’s wallet, users will automatically start saving 15 cents off on each gallon of gasoline (up to 20 gallons per visit for a total of 18 visits) when using their Discover card for payment at participating stations throughout New England and New York. The campaign began July 13 and will run through Oct. 15.

Gulf Pay, like a digital wallet, allows users to link their Discover card and securely pay at the pump with their mobile phones via token encrypted data. Users can also use the app to locate the closest Gulf station, access live pricing and reliable directions and view station offerings.

“By teaming up with Discover this summer, we can provide increased security and exclusive savings to an already loyal and growing group of existing cardholders with Gulf Pay,” said Marg McDonnell, senior director, credit card operations, Gulf Oil. “This campaign allows us to incentivize more motorists to choose Gulf and Discover, and ultimately drives more traffic into our stations.”

The program is supported by advertising from both Gulf and Discover. The support comes from promotional materials at participating stations, digital and radio advertisements in the New England market and targeted email and social messaging.

“Discover is always looking for new and innovative ways to give our card members the best possible experience,” said Andrew Hopkins, vice president of portfolio marketing for Discover. “We want to encourage new and existing Discover card members to add their Discover card to Gulf Pay and take advantage of this generous offer.”

The Gulf Pay app launched in both the Apple App Store and Google Play stores in June and is currently accepted at participating Gulf retail fuel locations throughout select New England and New York markets.

Wellesley Hills, Mass.-based Gulf Oil is a diverse refined products terminal, storage and logistics business and a leading distributor of motor fuels in the United States.

Discover Financial Services, based in Riverwoods, Ill., is a direct-banking and payment =-services company. Since its inception in 1986, the company has become one of the largest card issuers in the United States.

IRVING, Texas — 7-Eleven Inc. is awarding fee-free convenience-store franchises to all three finalists in Yes W.E. Can, the retailer’s first franchise giveaway contest targeted exclusively to female entrepreneurs.

Alyson Rae Lawson of Dallas, Avalon Young of Castle Rock, Colo., and Evelyn Scott of Chesapeake, Va., will each receive a waiver of the franchise fee, valued at up to $190,000, to franchise any 7-Eleven c-store available in the continental United States.

The three finalists were flown, all expenses paid, to the company’s home office in Irving, Texas, to interview with 7-Eleven President and CEO Joe DePinto. The company selected the finalists from seven semifinalists who went head to head in a competitive online video contest for the chance to make it to the final round.

“To say that each candidate was impressive would be an understatement,” said DePinto. “Each brings a unique set of strengths. In addition, all are extremely community-oriented and have strong business, leadership and interpersonal skills. Those are qualities successful franchisees need. Any one of them would make a great independent business owner at 7-Eleven, and I couldn’t see selecting just one, when all three are exactly the type of folks we want as franchisees and as part of the 7-Eleven network.”

7-Eleven will also donate $10,000 to the charity selected by each winner. The charities align with Project A-Game, a 7-Eleven grant program that funds youth programs focused on education, fitness, safety and hunger relief.

“Women own and operate less than a third of franchised businesses in the U.S., a number we want to help grow,” said Larry Hughes, vice president of franchise systems for 7-Eleven. “Because of our extensive training programs, proven business system, favorable financing, exclusive products and globally recognized brand, 7-Eleven offers a great entrepreneurial opportunity for women … and men.”

To qualify for the Women’s Initiative competition, entrants had to be 21 years of age or older, a U.S. citizen or permanent resident, have excellent credit and at least three years of leadership, retail or restaurant experience. Contestants went through the same qualification process as all 7-Eleven franchise applicants, including interviews, credit evaluation, a leadership test and preparing a business plan and budget.

Here’s a look at each of the winners:

Alyson Rae Lawson

Lawson (pictured, right) has three business degrees and lots of enthusiasm. Her MBA and accounting background will prepare her for the financial side of franchising and her wonderful personality for the people part of the business. Lawson follows in the footsteps of her father, who has franchised national chain restaurants. She leads a busy volunteer life as well, one focused on youth. She has served as a First Tee mentor, as well as a youth basketball and soccer coach.

Of the competition to win a fee-free 7-Eleven store, Lawson said, “It has been a long journey and a rewarding one. I’m glad to come to the finish line and seeing not only was I a winner, but all the women were victorious.”

Selected charity: Lance A. Lemons Memorial Foundation

Evelyn Scott

After 30 years in the U.S. Navy, Scott (pictured, center) knows how to run a tight ship. She will soon retire with the rank of commander master chief. Most recently in her military career, Scott has served as a human resources manager responsible for more than 1,900 sailors comprising eight squadrons and staff. She says she will run her business the same way she lives her life—with honesty, self-discipline and efficiency.

“After months of waiting, I still can’t believe it,” Scott said. “Who ever wins a store? This is big! It has already been a fantastic experience, and I can’t wait to open my store and be part of the 7-Eleven family.”

Selected charity: Oscar Smith Middle School

Avalon Young

Young (pictured, left) said she has been in retail all her life, “since I was a paper girl at 13.” At another retailer, she almost tripled sales in four years. Currently the business manager of a computer repair service company, Young is collaborating with a local high school to create technology internships and mentor students interested in the technology and electronics repair industry.

“I can’t wait to be an example to other women and show them what can happen when hard work meets opportunity,” she said. “I’ve always planned on being in retail, and it was a challenge to find the right retailer I could build a business with for the next 30 years. The 7-Eleven system is perfect for me, and I’m thankful for this opportunity.”

Selected charity: Montessori Educational Foundation

Irving, Texas-based 7-Eleven operates, franchises or licenses more than 63,000 stores in 18 countries, including 10,900 in North America.

NEW YORK — A New York convenience-store retailer has confessed to stealing more than $1 million in sales tax collected for gasoline sales.

Kulbir Singh, who owns Dashmesh Petroleum Inc., Gobind Petroleum Inc. and Karam Mart Inc., operated three gasoline stations in Nassau County. They include a station in West Hempstead owned by Gobind Petroleum, one in Valley Stream owned by Dashmesh Petroleum and one in Elmont, N.Y., owned by Karam Mart Inc. His son, Ladpreet Singh, operated a fourth station, Karam Mart.

According to an investigation led by New York Attorney General Eric Schneiderman, the gas stations collected but failed to remit to the state more than $1 million in sales taxes from September 2011 through December 2014.

Kulbir Singh pleaded guilty to three counts of grand larceny in the third degree. He must pay $150,000 in restitution and sign a confession of judgment for the remaining $850,000 of the $1 million in stolen taxes. He will also be sentenced to a prison term of 1.3 to four years.

The defendant corporations—Dashmesh Petroleum, Gobind Petroleum and Karam Mart—pleaded guilty to one count of grand larceny in the second degree and were fined $50,000 each. And Ladpreet Singh pleaded guilty to a misdemeanor and was sentenced to probation.

Kulbir Singh’s businesses had previously been convicted of failing to pay sales tax, according to the attorney general’s office. In 2012, he admitted to stealing more than $500,000 in sales taxes collected by four of his gas stations. At the time, the corporations pleaded guilty to felony tax fraud and agreed to pay more than $1 million in restitution, interest and penalties. But they only paid $500,000. As the Department of Taxation and Finance was investigating the failure to pay the rest of the restitution, it discovered that Singh was continuing to steal sales tax proceeds from his gasoline stations.

“This was a case of blatant theft from New York state and its taxpayers,” said Nonie Manion, acting commissioner of taxation and finance. “Despite a previous felony conviction for the same crime, the defendant continued to steal money that should have been used to fund vital public services. We will continue to work with all levels of law enforcement, including the attorney general’s office, to ensure that these crimes don’t go unpunished.”

BOSTON — A new limited-time variety 12-pack from Boston Beer will bring together beers from six different brewers to provide convenience to craft-beer fans looking to try something new.

To celebrate the independent and entrepreneurial spirit of the craft-beer industry, Samuel Adams has collaborated with five different breweries across the country to create the Brewing the American Dream Collaboration Pack.

This 12-pack features brewers who are part of Samuel Adams Brewing the American Dream philanthropic program. Nearly a decade ago, Sam Adams created Brewing the American Dream to provide loans and coaching to craft brewers and small business owners pursuing their passions and the American Dream of starting their own business. All profits from this collaboration pack will be donated to nonprofit program partner and small business lender Accion to support loans to food and beverage entrepreneurs nationwide, according to the brewer.

The pack’s five brewers are:

• Roc Brewing Co., Rochester, N.Y.
• Bosque Brewing, Albuquerque, N.M.
• ChuckAlek Independent Brewers, Ramona, Calif.
• Woods Beer Co., San Francisco
• Brewery Rickoli, Wheat Ridge, Colo.

All five have participated in the Brewing the American Dream program and received a loan to kick start or grow their craft breweries. And most have participated in the Brewing and Business Experienceship, receiving individual coaching from the team at Sam Adams.

“This pack represents the independent spirit, passion and collaboration that is core to our craft-beer industry,” said Sam Adams founder and brewer Jim Koch. “We’re proud to have collaborated with these creative and passionate brewers in a way that allows us to continue to pay it forward and empower fellow independent craft brewers to be successful and to grow.”

The pack, which contains five unique collaboration beers and Sam Adams’ flagship Boston Lager, hits stores nationally in late July for a suggested retail price of $16.99 to $19.99.

Click here for a closer look at each of the beers in the 12-pack.

MINNEAPOLIS — Steve Williams, 58, son of one of the founders of Bobby & Steve’s Auto World, died on July 6. A processional convoy made up of more than 50 tow trucks from Twin City-area companies carried Williams’ from his gas station to the cemetery.

The company posted this tribute on social media:

“It is with great sadness that we announce the passing of one of our founders, Steve Williams after bravely battling cancer for 11.5 years. Steve had an enormous impact on our company and each of our team members. Steve had the largest heart possible and truly cared for every member of the Bobby & Steve’s family as well as our beloved customers. He will be greatly missed by all, but his influence will continue. If anyone has a fond memory of Steve, please feel free to send us a message.”

Bobby Williams and Steve Anderson founded Bobby & Steve’s Auto World in 1978. There are now eight locations, featuring car washes, gas stations, convenience stores, quick lubes, auto repair, towing, tires and more (a ninth location is slated to open soon).

Steve Williams, Bobby’s son, started working for the company when he was 12 years old as a towel boy. In 1982, he became an official partner with Bobby by running the Texaco station in downtown Minneapolis. He then became a partner in several of Bobby & Steve’s Auto World locations.

When asked why he chose the service-station business, Williams said, “It’s the ultimate in service to people. We are always open.”

For the processional, the tow trucks lined up bumper to bumper for a trip from the downtown Minneapolis station to the memorial service in suburban Excelsior, reported the Associated Press. They rolled out just before 10 a.m. with lights flashing, escorted by Hennepin County deputies.

Williams is survived by his wife, Renee; son, Ryan (fiancee Kaley) Williams; daughters Dani (Luke) Bame and Mariah Williams; grandson, Mac Bame; mother and stepfather, Marilyn and Merlin Smith; father, Bobby Williams; and siblings, Robert (Lisa) Williams, Gigi (Brian) Manthey, Melissa (Brent) Peterson.

CSP sends condolences to his family, friends and colleagues.

NEW YORK — The National Association of Convenience Stores (NACS) and the New York Association of Convenience Stores (NYACS) have joined grocery and restaurant groups in filing suit to stop New York City’s effort to enforce menu labeling this summer.

NACS, NYACS, the Food Marketing Institute (FMI) and the Restaurant Law Center (RLC) filed the lawsuit in the U.S. District Court for the Southern District of New York. The groups aim to stop New York from prematurely enforcing rules requiring calorie and nutrient information prior to a May 2018 compliance date established by the U.S. Food and Drug Administration (FDA). The lawsuit claims that New York’s premature enforcement is preempted by federal law.

In May, the FDA announced that it is deferring enforcement of nationwide menu-labeling rules until May 2018 in response to industry concerns regarding implementation and to consider possible amendments to alleviate the costs of the rule. The FDA published rules requiring calorie disclosures on menus in 2014, but has decided to delay them in order to work through problems with those rules.

“New York City can’t jump the gun and start imposing fines when FDA hasn’t even figured out how disclosures should be made,” said Lyle Beckwith, senior vice president of government relations for NACS. “Doing that holds stores to standards that no one can meet and undermines the point of having a federal law in the first place.”

“It’s ridiculous for New York City to force convenience-store chains to prematurely incur the costs and logistical burdens associated with menu labeling when federal regulations preempt localities from doing so,” said James Calvin, president of the NYACS.

“Federal preemption for menu labeling is the law of the land. New York City is overstepping its legal authority in its attempt to enforce menu labeling ahead of the federal compliance date of May 7, 2018. We expect our preliminary injunction request will be granted to this clear violation of federal law,” said Angelo Amador, executive director of RLC.

“The federal law preempts a municipality from taking matters into its own hands, and this is exactly what New York City is attempting to do,” said Jennifer Hatcher, chief public policy officer for FMI. “New York City’s actions threaten interstate commerce and would introduce unneeded elements of confusion into the food retail marketplace.” 

As part of the lawsuit, the plaintiffs asked the court to enter an injunction to stop New York from enforcing its rules until the federal rules are ready. Unless the court acts, New York has threatened to start levying fines against retailers and restaurants starting on Aug. 21.

Brought to you by Orion Food Systems.

Making sure consumers get what they want at convenience stores means retailers need to know what their customers are buying every time they come in. For packaged snacks, following inventory can be a good way to do that. With items such as freshly prepared foods, it can be a bit trickier, particularly if those items don’t have individual SKUs to identify them.

To combat this, some operators have started implementing intelligent systems to label and track each item in their grab-and-go or deli sections.

Grab-and-go made simple

One such system is the iGnG system, or Intelligent Grab ‘n Go system, from Orion Food Systems. The iGnG system is designed to give operators a continually updating look at what consumers are purchasing and when, so that they can better prepare for their customers’ needs.

“iGnG gives a clear view of customer traffic with a view to daily patterns, which allows operators to better anticipate what is the right product at the right time to increase sell-through of grab-n-go offerings,” says Steve Watkins, CEO, Orion Food Systems.

For example, at the Farmers Union Oil store in Wilton, N.D., retailer Travis Thompson implemented the system a little over a year ago. Prior to using the system, one of the biggest challenges he faced was getting UPCs on each product, and in turn, knowing exactly what was selling or not selling. Without having different UPCs for each item, it was a difficult to know, for instance, how many cheese pizzas vs. sausage pizzas were being sold.

Before, Thompson’s store used general buttons like “pizza” or “breakfast sandwich” to track sales, but now, they get a breakdown so they can see what’s selling and what’s not, so they can more easily anticipate what customers are going to want.

Optimal freshness = customer satisfaction

Beyond streamlining inventory and tracking what’s selling, the system helps operators ensure customer satisfaction by making sure the food served is freshest.

Thompson says, “Say if you want a pizza to not be in the warmer for more than an hour, it’ll print that right on the tag what the expire time is. Then when you go to expire them and scan them back in, it tracks your waste for you.”

Features that cater to consumers’ needs are always a positive, as no c-store wants to sell subpar foods. Using a system that easily tracks expiration dates and times helps ensure your customers stay satisfied.

Profit and waste management

Finally, the system helps with managing waste and boosting profits. For instance, Thompson says, “We’re up about 10% in the deli sales line and item count. The dashboard will tell us by time of day when we don’t have enough product out and tracks the sales and waste by time of day. So it’ll tell you we need six more pepperoni pizzas during this time during the day because we’re missing sales.” On the other hand, he says, “If there’s something you’re throwing away often, you can make that product at a time with better traffic or modify it to a better selling product.”

As far as reducing waste, since the system helps Thompson notice when products may not be selling as well as he’d like, he can take care of it right away. Best of all, there’s a bit of wiggle room when it comes to waste—Thompson says optimal waste percentages are between 8 and 10%, and the goal isn’t zero.

Watkins says, “Anytime you see zero waste, I promise the store is losing out on selling more.”

Optimizing foodservice in c-stores doesn’t have to be complicated—in fact, today’s systems make it easier than ever before.