CSNC - Sept/Oct 2021 by ensembleiq

IS BFY

YOUR NEW BFF? SHAKING UP THE SNACK AISLE

WAYS

TECH IS RESHAPING CONVENIENCE

R E TA I L E R SPOTLIGHT INSPIRING IDEAS FROM C-STORES AROUND THE GLOBE

CURATED CONVENIENCE

TORONTO’S RUNNER MARKET CO-FOUNDER AND CEO JAKE MACDOUGALL ON DELIVERING A CONTEMPORARY C-STORE EXPERIENCE

A Q & A WITH

FIELD AGENT’S JEFF DOUCETTE

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CONTENTS

SEPTEMBER | OCTOBER 2021 VOLU M E 4 | N U M BE R 5

5 Editor’s Message Moving forward

6 The Buzz People, places, news and events 8 Quick Bites

No ordinary Joe: Are you ready for coffee’s big comeback?

12 Feature

Innovation acceleration: By meeting the challenges of the pandemic with investments in technology, c-store operators are reshaping the future of convenience

16 Cover Story

Curated convenience: Toronto’s Runner Market is a one-stop shop for high-quality c-store staples and more

21 Feature

BFY, your new BFF: Innovations in the better-for-you space are shaking up the beverage and confectionery categories

27 Retailer Spotlight

Innovation inspiration: Shining a light on big ideas from retailers around the world

33 Category Check

Fountain of riches? Get self-serve beverage sales flowing again

36 Snapshot

Kathy Perrotta of Ipsos Canada shares 6 insights to spark growth

38 Category Check

Sell and soothe: Build a healthy cough and cold category that drives incremental sales throughout the year

40 Ask the Expert

What does workplace safety and the in-store experience look like in a post-vaccinated world? Advice from Pamela Patry, Workplace Safety & Prevention Services

42 Backtalk

JEFF DOUCETTE PHOTO, COLIN WAY

Agent of change: In conversation with Jeff Doucette of Field Agent Canada

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Moving forward

SENIOR VICE PRESIDENT, CANADA | Donna Kerry

EDITORIAL EDITOR & ASSOCIATE PUBLISHER, CSNC

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Welcome to the Innovation Issue, an annual exploration of the inspiring ideas, technologies, categories and people informing and shaping the convenience sector. If disruption is indeed an instigator of innovation, it’s no wonder these are innovative times. For 18 months, retailers and partners have juggled change, adapting business to meet the evolving needs of customers and circumstances during a time of great uncertainty. One thing we can be certain of, however, is there’s no going back. It’s time to move forward. The “pandemic pivot” is not a moment in time, but an accelerator for new consumer habits, values and business practices. The opportunity exists to reignite growth. Innovation is key. “Innovation acceleration” (p. 12) examines how forward-thinking retailers adopted technology to meet the challenges of the pandemic and beyond. Research shows more than half of c-store operators are investing in technology and automating aspects of their business—the digital transformation is happening. Looking for inspiration? Retailer Spotlight goes global (p. 27), shining a light on innovative ideas from retailers around the world. Of course, there’s plenty of inspiration here in Canada, too. Our cover profile illustrates how Toronto’s Runner Market is tapping into the new wave of “Curated convenience” (p. 16), with an innovative approach to merchandising and a fresh aesthetic. From supply chain management to the snack aisle, innovation in convenience is everywhere. In “BFY, your new BFF” (p. 21) find out how the better-for-you movement is shaking up core categories. For business leaders, there is no standing still. There is, however, a strong desire for data-driven insights and consumer research to inform direction and decisions. Ipsos Canada expert Kathy Perrotta weighs in with valuable ideas to spark growth (p. 36), plus check out my interview with Field Agent Canada’s Jeff Doucette (p. 42), who shares first-hand observations about what it means to evolve and stay relevant in retail. In the spirit of inspiring innovation, The All New Convenience U CARWACS Show kicks off September 28th. The goal is for attendees to build valuable relationships, discover new products, learn from experts and access resources to adapt and respond to industry challenges and opportunities in a dynamic and easy-to-use virtual format. Plus, on September 29th you’ll want to be a part of the industry-wide virtual event celebrating the 2021 Star Women in Convenience—these women definitely know a thing or two about adapting and innovating. See you there! CSNC

CONVENIENCE STORE NEWS CANADA / OCTANE is published 6 times a year by EnsembleIQ. CONVENIENCE STORE NEWS CANADA / OCTANE is circulated to managers, buyers and professionals working in Canada’s convenience, gas and wash channel. Please direct inquiries to the editorial offices. Contributions of articles, photographs and industry information are welcome, but cannot be acknowledged or returned. ©2021 All rights reserved. No part of this publication may be reproduced in any form, including photocopying and electronic retrieval/ retransmission, without the permission of the publisher.

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THE BUZZ

CROSS - CANADA ROUND - UP / PEOPLE / PL ACES / NE WS & E VENTS

Guru partners with PepsiCo Beverages

Canada’s Guru Organic Energy Corp. and PepsiCo Beverages Canada have entered into an exclusive long-term national distribution agreement in Canada for Guru’s energy drinks. Effective October 4, 2021, PepsiCo will sell, distribute, and merchandise Guru’s organic, plant-based and better-for-you energy drinks to convenience stores. The fast-growing beverage company launched in Montreal 1999.

WHAT GOES AROUND COMES AROUND A group of Canada’s leading consumer brands, retailers and restaurants are spearheading a new organization—Circular Materials—that will help companies comply with new blue box recycling rules in Ontario, which require companies to pay to recycle the packaging they put into the market. The 15 founding members include, Coca-Cola, Lassonde, Keurig Dr Pepper Canada and Nestlé Canada Inc.

Good work

Congratulations and thank you to all the retailers, distributors, wholesalers and vendors who participated in Ontario Convenience Store Week and National Convenience Week celebrations! In addition to honouring the industry and those who work in it, the Ontario effort raised funds in support of Ontario Children’s Hospitals and the national campaign supported Make-A-Wish Canada. Visit CCentral.ca for event coverage and photos.

Parkland grows Quebec footprint

Parkland Corporation is to acquire family-owned Pétroles Crevier Inc., which includes 36 company-owned retail locations and 138 retail dealer locations, as well as wholesale operations. “We believe we can add significant value by deploying our proven retail capabilities, proprietary Marché Express (On the Run) convenience and Ultramar forecourt brands, and Journie Rewards loyalty program,” said Donna Sanker, president of Parkland Canada.

The end of an era in Atlantic Canada

Alimentation Couche-Tard Inc. is to acquire Cape D’Or Holdings Limited, Barrington Terminals Limited and other related holding entities, which operate an independent convenience store and fuel network in Atlantic Canada under the Esso, Wilsons Gas Stops and Go! Store brands. The Wilsons network includes 79 corporate-owned and operated convenience retail and fuel locations, as well as 147 dealer locations. Wilson is a well-known name in Canadian convenience and gas, with a history that goes back to the early 1800s. The transaction is expected to close in the first half of 2022.

SAVE THE DATE The All New Convenience U CARWACS Show Virtual September 28-29, 2021 Star Women in Convenience Awards Event Virtual September 29, 2021 StarWomenConvenience.ca

SEPTEMBER / OCTOBER 2021

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ONLINE AND

INFORMED The new CCentral.ca website is your resource for breaking news, valuable information and expert insights designed to help you stay in the know and run your business.

NEW EXPERT COLUMNS

DRINK UP ”Proposed regulations for caffeinated energy drinks miss the mark” -Milena Glumac, Canadian Beverage Association

THE BIG PICTURE “4 key retail trends and innovations from around the globe” -Lisa Hutcheson, retail consultant, J.C. Williams Group

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Bonjour CCentral.ca now features two new languages—French and Korean. Simply click on the globe icon in the top right corner of the homepage. The move is designed to recognize and celebrate the diverse cultures that make up the convenience industry. Many people read English and/or French, but also appreciate being able to access important news and information in their language learned from birth. At your request, we will add more languages to welcome our readers!

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MOVING ON UP

Claire Bara is president of Lassonde’s Canadian subsidiary A. Lassonde Inc. Bara joined the A. Lassonde management team as EVP and general manager, marketing, trade and product development in June 2019, overseeing A. Lassonde brands, including Oasis, Rougemont, Allen’s, Fairlee and Fruit Drop. She has more than 25 years experience at major Canadian company’s, such as Sobeys, Lowe’s Canada and Molson Coors. Marc Goodman joins 7-Eleven Canada as senior director of operations. He moves to the c-store giant after more than two decades with Suncor. He joined Suncor in 1998 and held increasingly senior roles, including head of category management and, most recently, head of employee experience. Valerie Grasman is VP, commercial for the Canadian market at Vaughan, Ont.-based Riverside Natural Foods, the maker of MadeGood and Good to Go snacks, as well as Cookie Pal organic pet treats. Grasman joined Riverside in 2020, taking on the role of director, category management and digital eCommerce. Previously, she spent 14 years with Mars Canada. Olivier Lemire takes over as president of Keurig Dr Pepper Canada on October 1. Lemire, currently VP, commercial strategy and partner brands, joined Keurig Dr Pepper Canada in 2011 as sales director and has held various leadership roles, including in HR and supply chain. Previously, Lemire had a diverse career in the Canadian retail industry. Jorge Mesquita is the new CEO at BlueTriton Brands, the former U.S. and Canadian operations of Nestlé Waters. Prior to joining BlueTriton, Mesquita was EVP and worldwide chairman of Johnson & Johnson’s consumer division. He also spent nearly 30 years at Procter & Gamble. Mesquita joins as BlueTriton, known for its portfolio of regional spring water and national purified water brands, embarks on growth and innovation initiatives. Chantal Templeton is the newly appointed general manager for Mars Wrigley Canada. She most recently served as general manager of Mars Wrigley’s ice cream business in the U.S. Templeton brings more than 20 years of experience to the role, having held sales, marketing and strategy roles within the company’s chocolate, pet, food and multisales units. Prior to Mars, Templeton spent more than 10 years at Procter & Gamble. Templeton is also joining the board of directors at Food, Health and Consumer Products.

SEPTEMBER / OCTOBER 2021

QUICK BITES

BY DARREN CLIMANS

No ordinary Joe

While finance experts like to critique the daily coffee spend, after 18 months at home, consumers (even those still working from home) are ready to splurge

The grand reset

I’m old enough to remember the sound a pinball machine would make when you put one or two quarters in, or you succeeded in scoring enough points to earn a free game. That sound was the promise of a new start. The postCOVID economy will be a bit like that. The initial challenge for operators will be to get consumers out of their stay-athome routine, and back into the mode of AFH consumption. Good news is that the pump is primed, and your customers are fixing to splurge.

EXHIBIT 1 ICED COF F EE

NI T RO COF F EE

46% - GEN Z 40% - MILLENNIAL S 30% - GEN X 13% - BA BY BOOMERS

9% - GEN Z 20% - MILLENNIAL S 9% - GEN X 2% - BA BY BOOMERS

Away-from-home coffee purchases by Generation in past 3 months

COL D BRE W COF F EE

SPECIALT Y COF F EE

28% - GEN Z 29% - MILLENNIAL S 18% - GEN X 8% - BA BY BOOMERS

29% - GEN Z 36% - MILLENNIAL S 27% - GEN X 21% - BA BY BOOMERS

SEPTEMBER / OCTOBER 2021

REGUL AR BRE WED COF F EE

F ROZEN BL ENDED COF F EE DRINK

26% - GEN Z 33% - MILLENNIAL S 36% - GEN X 38% - BA BY BOOMERS

35% - GEN Z 35% - MILLENNIAL S 23% - GEN X 11% - BA BY BOOMERS

Source: Lightspeed/Mintel

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ven the mighty and iconic QSR chain, Tim Hortons, was not immune to the COVID-19 virus. The coffee giant recorded a 4.9% decrease in system-wide sales during the initial three-month period of 2021. That’s compared with the same quarter in 2020, which was down 9.9% versus 2019. Overall, on a two-year basis, Tim Hortons Canada was down 14%. The Allegra World Coffee Portal did an analysis of coffee purchases at branded coffee shops across Canada, including Timmies, Starbucks, Country Style and independents (but not McDonald’s). From a peak of $12B in sales in 2019, there was a 22% drop in 2020, taking sales down to $9.5B. According to Mintel, a global market intelligence agency, COVID negatively impacted away-from-home (AFH) coffee sales, as a result of economic uncertainty combined with a dramatic decline in morning commutes. Outlets with drivethrus fared better, but AFH consumption dropped overall. NACS reports that hot dispensed sales at convenience stores fell 33.4% in 2020, again reflecting the drop in footfall amid stay-at-home orders and work-from-home schedules. C-stores in Canada, which experienced some of the longest lockdowns in the world, were also hit hard.

CCentral.ca

Year over year growth 2020 to 2021

MENU MEN T IONS

SOCIAL DISCUS SIONS

AFFOGATO

ICED LATTE

CARAMEL LATTE

FLAT WHITE

FRAPPUCCINO

LATTE

NITRO COFFEE

Darren Climans is a foodservice insights professional with close to 20 years’ experience partnering with broadline distributors, CPG suppliers, and foodservice operators. His practice is to understand issue-based decisions by taking a data-driven approach to strategic decision making.

Trending coffee segments

For convenience operators, coffee is a great way to re-engage with your customers. The question is, what is the best way to do that? The coffee category has many facets. Taste and experience are central, but consumers are increasingly paying attention to issues of sourcing transparency, sustainability, and the offering of non-dairy options like nut/ oat milk. Younger consumers, a key c-store demographic group, are looking for something beyond marginally better drip-filter hot coffee. Cold coffee offerings have the potential to heat up sales for convenience operators. Mintel/Lightspeed research in 2021 asked U.S. consumers, “Which offerings would motivate you to visit foodservice coffee/tea locations more often?” The top answer for Gen Z and millennial respondents was “Larger selection of cold beverage options,” followed by “More indulgent flavoured drinks.” Frozen and chilled segments are shaking up the coffee market (Exhibit 1) and beverage companies of all sizes are developing canned RTD products to meet this need. Gen Z and millenials, in particular, are choosing cold coffee options with greater frequency. Tastewise, an AI-based food intelligence service

EXHIBIT 2

Connect with coffee

tracking billions of menu and social media data points (Exhibit 2), confirms that segments like nitro coffee are trending. Pivoting to a post-COVID outlook, Tim Hortons’ management reported a mug more than half full, which can be seen as sign of good things to come for c-stores (both those with in-house Tim Hortons offerings and those opting to go it alone—Couche-Tard continues to hone its Simply Great Coffee program). The latest financials for Q2 2021 show a 33% jump in system-wide sales, compared to the same period in 2020. “We are encouraged by the momentum across our business,” says José Cil, CEO, Restaurant Brands International. And, research shows most consumers (75%) intend to resume c-store foodservice patronage at the rate they were accustomed to pre-pandemic, according to a 2020 C-Store Consumer Market Brief from Technomic. The exciting news? Self-serve coffee maintains a broad appeal, with 75% of consumers saying they’d be likely to grab a cup of Joe. Of course, the new era of coffee consumers won’t settle for any ordinary Joe. Mintel research suggests that, even in the transition period post-COVID, consumers generally will seek out coffee beverages that they can’t make for themselves at home. Flavour-forward coffee drinks, including innovative cold coffee options, promise to deliver the unique coffee experience that your core customers are craving. CSNC

A recent Bank of Canada Survey of Canadian Consumer Expectations revealed that, while incomes are expected to stay flat over the next 12 months, Canadian consumers are anticipating a spike in their spending. This gap between growth in wages and increased expected spending is unprecedented, fuelled by accumulated forced savings due to COVID restrictions. According to the survey, “(consumers) anticipated spending more than one-third of extra savings from the pandemic over the next two years.”

Source: Tastewise

Reaching the new remote worker

Without the daily commute, more consumers opted to create at-home coffee experiences during pandemic lockdowns. However, as people venture out more, the Mintel, Foodservice Coffee and Tea Report, 2021 highlights several opportunities to target remote and hybrid workers. • Remote workers may purchase coffee/tea away-from-home (AFH) less frequently but will gravitate toward higher-priced beverages. • Remote workers will treat themselves to premium afternoon beverages.

• Consumers will seek out coffee drinks that they can’t make for themselves at home. • Flavour innovation is central to providing consumers a unique coffee experience.

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• Indulgent flavour-forward coffee drinks appeal to Gen Z, while millennials and Gen X tend to go for less-sweet flavours—offer a targeted mix. • The future of coffee and tea is cold.

• W hile consumers will source basic coffee/tea drinks from home, they will purchase more cold specialty drinks AFH.

• As Gen Z consumers gain more spending power, they will drive cold coffee consumption. • C-stores must be bold and create unique specialty drinks that appeal to remote workers. • Pairing coffee with premium food options (breakfast or snack) will draw in customers.

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SEPTEMBER / OCTOBER 2021

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FEATURE

By meeting the challenges of the pandemic with investments in technology, c-store operators are reshaping the future of convenience B Y C H R I S D A N I E L S

SEPTEMBER / OCTOBER 2021

Acceleration CCentral.ca

FEATURE

these signals and acting on them using AI (see: “Personalizing the customer experience”). The industry is also collecting data from POS and mobile apps for customer loyalty and pick-up and delivery (and even in-store bots! See: “Supply chain intelligence”) to reshape everything from the instore experience to promotions and pricing. “Digital technology and integrated shopping experiences are synonymous with data collection,” says Dan Doulos, country manager, Canada, for CPG and grocery advisory firm Advantage Group. “It will enable convenience retail to be more intentional about collecting information and curating the shopping experiences to reflect their shoppers’ preferences.”

Supply chain intelligence

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If c-store operators were dipping their toes into technology before the pandemic, they dived right in during. That is evident in a recent survey from Zenput and Technomic, which found the top priority for most c-store operators (51%) over the next 12 months is “implementing new technology.” In addition, 57% of respondents were found to be using tech to automate aspects of their operations, up from 27% in 2020. Clearly, operators understand to be “essential” not only during the pandemic but well after, the c-store has to undergo a digital transformation. One of the ways c-stores are looking to transform is by being more predictive in their planning, explains Scott Langdoc, head of worldwide grocery chain, drug and convenience/fuel retailing at Amazon Web Services (AWS). “With stay-at-home mandates significantly reducing vehicle travel, convenience retailers experienced a shift in focus from fuel toward groceries and essentials, as well as a shift in purchase approaches,” he says. “These shifts brought on a need for broader and quicker access to business signals, such as demand intelligence, supply chain visibility, and macro-market impacts like commute reductions.” Parkland is working with AWS on capturing

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The pandemic illustrated the importance of having the right product, at the right place, at the right time. Think toilet paper, hand sanitizer and milk, which were scarce commodities at the height of the pandemic. “Convenience retailers are looking for greater visibility and transparency into the supply chain to prevent stock-outs of high-demand, limited availability items,” says Langdoc. Supply chain decisions used to be driven by static sales figures. Now, however, supply chain AI software considers variables like POS data, pricing, local market conditions, time of year, and even social media chatter in making forecasts. Accenture, for instance, has developed an Intelligent Revenue and Supply Chain (IRAS) platform on the Amazon Web Services Cloud that can forecast the quantity of SKUs that need to be ordered on a rolling basis to keep key inventory well-stocked. Bots are also helping c-stores keep atop of inventory. Couche-Tard’s Circle K in the U.S. is piloting the use of mobile phones and small self-flying drones at Texas locations to get real-time shelf visibility. Pensa Systems, which specializes in shelf-intelligence data to improve product planning and minimize stockouts, provides the drones and analysis in a backend cloud. “Leveraging advanced technology to continuously improve in-store availability of key products is a top priority,” Mike Bott, head of digital innovation at Circle K, says of the partnership.

Personalizing the customer experience

Thanks to digital technology, c-store operators are collecting tons of transactional information about their customers. Now operators are looking to leverage that data. Parkland recently began working with AWS on gleaning insights that can optimize its loyalty program, including Journie Rewards in Canada, with more personalized offers. “We can think about Parkland’s strategy through two lenses,” says Langdoc. “First, an improvement in the frequency and accuracy of captured transactional (e.g. POS) information that can be used to further personalize customer engagements and optimize business operations based on these business signals.” Think, for example, of a loyalty customer who purchases a fountain

SEPTEMBER / OCTOBER 2021

drink in a store and then gets a personalized discount for gas because she hasn’t purchased fuel at the store in the past month. “Secondly, Parkland is capturing more customer-specific insights and broader behavioural analytics to better understand the shifts in shopping journeys and customer needs,” says Langdoc. “These broader and quicker insights can be further enhanced by applying machine learning models to be more predictive in the actions that Parkland can take.” This could be in its messaging to a customer or in determining the product mix, menu offerings and services (like designated parking spots for customer pick-ups) a location should offer. Whether you have an app and loyalty program (or not), firms like Kalibrate use sophisticated modeling software based on consumer segmentation data to help retailers truly understand who their customers are. “By knowing where people are travelling from, whether it be home or work to get to your site, retailers can create and deliver targeted tailored marketing and promotions to drive more people to their store,” says Rich Wilcox, VP, solution engineering at Kalibrate, a consulting firm with a fuel and convenience retail analytics platform.

In Texas, Circle K is piloting small drones to access real-time shelf visibility

On-shelf signage goes digital

Digitized on-shelf labels look clean (an important factor in a COVID-19 world!), are environmentally friendly and give operators more versatility to edit pricing. “All of our stores use digital labels,” says John Douang, co-founder and CEO of Aisle 24, which is currently in six markets in Ontario, operational in B.C. and Quebec, and opening locations in Alberta, Manitoba and Atlantic Canada this year. Given its cashierless model, Douang says digital labels are “an important factor in how we control and make more efficient our operational labour input.” But he also recommends it to anyone looking to drive sales through data analytics. “The labels allow you to adjust pricing immediately and regularly according to market conditions,” says Douang. Aisle 24 uses several digital label products, including from Danavation, which this year added a Petro-Canada in Vegreville, Alta., and an Esso in York, Ont. as customers. John Ricci, Danavation’s CEO, says it has one client who changes pricing at the end of every business day based on competitor pricing, while others

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use it to proactively react to local conditions. “Whether a heat wave, storm or a local sports team winning a championship, the system allows you to respond and change pricing with just a keystroke, thereby capturing more margin or blowing out particular inventory,” says Ricci. Britt Mills, senior director of customer experience at Mobiquity, is bullish about digital onshelf signage for both small and large operators. “While it allows for easier viewing in many cases of prices and product details, it also provides c-stores with greater versatility in stocking and shelf displays,” she says. “It’s much quicker and easier to edit signage, advertise deals and promote a store’s branded and limited-time products with digital signage.”

The future of checkout

With consumers looking to get in and out of stores quickly, many experts believe an autonomous checkout option will gain favour. In Phoenix, Circle K is piloting contactless, autonomous checkout with Standard Cognition. Using its ceiling-mounted cameras and machine vision software, Circle K is enabling customers to shop and walk out with their purchases without having to scan them or wait in line to pay. Transactions are processed through an app, which customers check into before going into the store. Or they can pay at the cashier, without the need for anything to be scanned since the AI has tracked what the customer has picked up and relayed the information to the cashier. Standard Cognition spokesperson Alex McClure told Convenience Store News Canada that “the pilot is going well and we are working alongside Circle K to bring it to general availability.” Exxon Mobil has eliminated friction from the process of buying fuel at the dispenser by enabling customers to use their vehicle’s Alexa-enabled voice recognition functionality: “Alexa, pay for gas!” Langdoc says c-store operators should look at other retail categories for inspiration, too. Nike, for instance, has a mobile app feature, Instant Checkout, that enables in-store shoppers to pick up an item, scan it and pay for it with their saved credit card. “That ‘no lines, no waiting’ offering would be a hit with customers who find themselves frequently coming into their local c-store for only a handful of items, while running errands or on their way home from work.” CSNC

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COVER STORY

curated convenience Toronto’s Runner Market grew out of an alcohol delivery service and now specializes in being a one-stop shop for high-quality c-store staples. Next up? Expanding across Runner Market Canada and the U.S. BY C H R IS POW E L L

PHOTO BY JAIM E HOGGE

co-founder and CEO Jake MacDougall outside the debut location at 141 Berkeley St. in Toronto

SEPTEMBER / OCTOBER 2021

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SEPTEMBER / OCTOBER 2021

One of the most common effects of the pandemic has been brick-and-mortar food stores moving into online delivery so they can meet increased consumer demand for convenience and safety. But Runner Market’s co-founder and CEO Jake MacDougall took the opposite approach.

MacDougall opened Runner Market five months ago, during the height of the pandemic. Specializing in what he calls “curated convenience,” the hybrid QSR/ convenience store grew out of Runner, an alcohol delivery service that has amassed a significant customer base since launching in 2017. Like many new business start-ups, Runner Market was informed and shaped by consumer demand. In this case, Runner’s online customers started regularly requesting convenience items to be included with their alcohol order. That led McDougall and his business partner to establish

SEPTEMBER / OCTOBER 2021

what he describes as strategically located “micro-inventories” of certain products in the vicinity of the LCBO stores where they would go to fulfill customers’ orders. Runner saw a sharp uptake in business when the pandemic hit, with revenues for its alcohol delivery business growing 185% year over year in 2020, on the heels of a 100% increase in 2019. The two partners took the extra proceeds and used them to open the 760-sq.-ft store at 141 Berkeley St. in Toronto’s east end with an eye towards creating something that went beyond the standard convenience offering. “We started thinking about a brick-and-mortar location because we were wondering why there weren’t any high-quality convenience stores,” explains MacDougall. “I think customers are looking for alternatives to the Cokes and smokes-type products carried at [traditional convenience stores] and we see huge demand for healthier alternatives. People also like the narrative around local products, so that’s been a very positive thing for us.” Located inside a former Mexican restaurant, Runner Market features an eight-person patio and inside seating for 12 once pandemic restrictions are eased. The principals used their background in design to conceive the clean, minimalist store, while its emphasis on quality local products was inspired in part by the Amsterdam retailer Stach. The partners also worked closely with contractors to keep build costs under $300,000, and while it’s still early days, MacDougall says customer reaction to the store and its product assortment suggests it was money well spent. “After opening this location, the demand and the sentiment we see people leaving with is extremely positive,” he says. “I don’t typically leave a store and say, ‘This place is so cool’ out loud to my friend, but that’s a very common thing for us.” The partners also worked hard to bring together a product assortment that would typically require customers to visit multiple stores. The store stocks staples, from dog food to diapers, batteries and detergent, however the emphasis, says MacDougall, is on “high-quality products from local vendors that are doing interesting and unique things.” That means Runner Market’s shelves are stocked with items

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OPERATOR INSIGHTS from both Toronto and Canadian companies, including the Toronto coffee roaster De Mello; the Vancouver-based peanut butter brand Mumgry; and the specialty salt brand Salt Spring Sea Salt, which pairs French culinary tradition with sea salt to create fleur de sel with flavours including Blackberry, Balsamic and Pinot Noir. The company has employed a similar emphasis on quality to the foodservice side of the business, with its partners including Toronto’s much-buzzed about subscription pizza service General Assembly Pizza, and the local empanada company Gaucho Pie Co., which creates both traditional empanadas and unique flavour offerings, such as a Reuben sandwich-inspired offering, as well as butter chicken and jerk chicken. It also serves up a convenience store mainstay in beef patties, although in this case the partner is a company called Street Bites, whose owner Tony Bradshaw has extensive restaurant experience with brands, including Morton’s of Chicago, and places a premium on quality ingredients. There are also in-store options designed to be quick and reasonably priced, while others align with MacDougall’s keto diet, such as egg bites. All of its products are also available to order online, with Runner promising delivery to Toronto, Etobicoke and Mississauga in as little as an hour for a $10 flat fee. Although delivery still comprises a “large majority” of Runner’s total business, MacDougall says the brick-and-mortar location provides an avenue for customers to see or taste products in person before adding them to online orders. “Browsing products in-store tends to be a better experience than browsing online,” he explains. MacDougall says the plan is to eventually open between four and six other locations within the GTA, using sales information gleaned from the online service to determine the best neighbourhoods to place the stores. The goal is for two additional Toronto-area stores within the next year, followed by a Vancouver store in 2022 and eventual expansion into Montreal or Calgary. The company is also keen to establish a foothold in the U.S. within five years, he says. From online app to physical store(s) in the world’s largest consumer market: It’s been quite a run for this Toronto start-up. CSNC

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PREPARE TO PIVOT

Runner Market was spurred by online customers, who started regularly requesting convenience items to be included with their alcohol order.

CARVE A NICHE

“High-quality products from local vendors that are doing interesting and unique things.”

BREAK TRADITION

“We see huge demand for healthier alternatives. People also like the narrative around local products, so that’s been a very positive thing for us.”

SUCCESS IS IN THE DETAILS

Visitors often comment on the store’s clean design aesthetic and branding. Runner even has its own line of merch, including hats, t-shirts and lanyards.

SIMPLIFY FOODSERVICE

In addition to quick and reasonably priced in-house menu options that tap into the latest eating trends, such as keto, Runner partners with foodservice providers who bring to the table an established reputation for quality ingredients.

SEPTEMBER / OCTOBER 2021

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FEATURE

BFY, your new bff

Innovations in the better-for-you space are shaking up the beverage and confectionery categories, and driving consumers to c-stores

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BY W E N DY H E L F E N BAU M

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Make way, sugary drinks and super-sized chocolate bars. For the past several years and especially since the pandemic, more consumers want to boost their health and shore up their immune systems by eating foods that are better for them, and that includes snacks they pick up while on the go or behind the wheel. A recent study conducted by The Hartman Group revealed that most consumers prefer fresh, pesticide-free, natural food with recognizable ingredients and few or no artificial preservatives. Another report by FMCG Gurus showed that 80% of consumers worldwide intend to eat and drink healthier. They want more plant-based products and are looking to add fibre, protein and other nutrients to their diet. Post-COVID, numerous studies show people want to reduce their sugar intake and eat more plant-based foods: The 2020 Food and Health Survey conducted by the International Food Information Council found more than half of consumers think it’s important that the food they eat be healthy.

SEPTEMBER / OCTOBER 2021

Consumers’ preferences are evolving towards better health

Better-foryou foods, such as fruit, vegetables, nuts, health bars and yogurt are showing up on c-store shelves

As wellness becomes a major driver in customer behaviour, the beverage and confectionery market is paying close attention. “Research confirms that consumers are actively seeking beverage options that can fit into a healthier diet and lifestyle. The most important thing that we can do to help our retail partners meet consumer demand is to create a wide range of high-quality products for all needs and occasions,” says Marie-Hélène Jauron, sales business development director at PepsiCo Beverages Canada. After extended periods of lockdown, consumers are eager to discover new and exciting products, so innovation is key, she adds. “We’ve launched a number of product and format innovations in the last few years to answer consumer need for betterfor-you options. We’re constantly innovating to transform our beverage portfolio to offer consumers more choice from the brands they love, such as Pepsi Zero Sugar and Bubly sparkling water beverage, and we’re seeing significant growth across many of these portfolios.” Offering high-quality snacks—from trail mix blends to indulgent bites to wholesome bars—is the key to satisfying the diverse needs of customers, adds Stacey Biggar, the everyday chocolate lead for Mondelēz Canada. “People have always loved snacks, but their lives are changing. They increasingly want to feel good about their snacks— not only that they taste delicious, but also that they are good for their minds and bodies, while not harming the planet,” says Biggar. “That’s why we keep renovating and innovating our portfolio with offers such as Better for You, Authentic Natural and Simple, Functional Nutrition and Permissible Indulgence.”

The big players are investing heavily in the BFY space

Globally, the confectionary market is expected to grow and reach US$244.25 billion by 2026, fuelled by the rising demand for ready-to-eat fare, according to a recent market report. To meet changing market preferences, manufacturers are expanding product variety and adding healthier ingredients like nuts, tropical fruits and organic herbs to their lines. They’re also acquiring better-for-you snack making companies. In 2019, 7-Eleven launched 100 new BFY products in the U.S. from more than 30 upstart companies, including plant-

SEPTEMBER / OCTOBER 2021

based, organic, gluten-free, keto, paleo and vegan options. The brand focused on healthier alternatives, unique flavours and fresh takes on popular items. In 2020, healthy snack leader Kind acquired Nature’s Bakery (makers of Fig Bars and other soft-baked goods) to advance its goal to build a health and wellness platform, while offering a variety of nutritionally dense food items. Mondelēz has also been steadily acquiring majority stakes in healthier snack brands over the past few years, including protein-bars maker Perfect Snacks in 2019 and in-store baker Give and Go Prepared Foods in early 2020. In January, Mondelēz International acquired Hu Master Holdings, the parent company of Hu Products (makers of wellness-focused, vegan and paleo-friendly snacks such as grain-free crackers and chocolate-covered fruits and nuts) adding to its other healthy brands like Enjoy Life and Perfect Snacks. These moves reinforce the company’s strategy, says Biggar. “Our ambition is to lead the future of snacking by offering consumers a broad range of snacks, from allergy-free foods to simple ingredient lists,” she explains. “These brands also encourage shared learning across the organization.”

Improving the health factor for favourite products and introducing new snacks

Confectionary companies who usually offer less-than-healthy snack items are making efforts to market more better-for-you incarnations of popular items. For example, Mondelēz recently announced smaller-portions of Cadbury sweets in the UK. “We want to help consumers easily enjoy the right snacks throughout their day and inspire them to snack mindfully,” says Biggar. “A major part of our commitment to Mindful Snacking comes from our focus on portion control pack formats. We’re committed to growing our portion control products to 20% of our global snacks net revenue by 2025, and will be placing portion guidance on all packs by 2025. In Canada, we’re prioritizing this with key initiatives such as the introduction of IC [individual consumption] cookies packages and Crispers single-serve packs.” In June, Häagen-Dazs introduced Divine, a three-flavoured ice cream collection with 50% less fat, 25% less sugar and just 200 calories per serving. Like its regular products, Divine contains simple ingredients and no artificial colours or flavours, and the brand hopes offering a better-for-you indulgence will appeal to health-conscious consumers. Hershey is furthering its Zero Sugar platform, offering organic versions of its Milk Chocolate and Reese’s Peanut Butter Cups, and developing more portion-controlled and plantbased options for future release. Kellogg’s now has a variety of no-sugar-added items and high-fibre cereals, and Nestlé recently introduced a vegan Kit Kat. Recently, Canadian dairy co-op Gay Lea Foods launched Ivanhoe Nothing But, a crunchy dehydrated, gluten-free cheese snack in three flavours aimed at active consumers looking for healthy, high-protein portable snacks that are convenient to enjoy during outdoor adventures. The new product is the result of listening to customers, who are eager to buy made-in-Canada products in the better-for-you space,

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As shoppers’ desires for nutritious choices increase, better-for-you foods, such as fruit, vegetables, nuts, health bars and yogurt are showing up on c-store shelves. Tapping into these changing attitudes, priorities and expectations, food and beverage brands—even ones widely known for their not-so-healthy fare— are pivoting towards BFY, because it represents a great opportunity to introduce new products to market that meet consumers’ demands while driving c-store growth. Here’s how creative product development and innovative ideas are elevating the experience customers have when they pop into a convenience store to load up on snacks.

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says product manager Monika Giasson. “Canadians are looking for better-for-you snacking options that keep them fuller longer; cheese is the perfect high-protein snacking solution, and through research we learned that for consumers, specifically millennials, this is a huge selling point,” says Giasson. “Millennials still love cheese—they just want it to fit their lifestyle. As a dairy company owned by dairy farmers, we are able to capitalize on our core values of offering wholesome food that people can trust and rely on. So we turned our attention to developing an alternative cheese snack that matched their needs—a convenient non-refrigerated product with an exciting new texture—cheese with a crunch.” Giasson adds that this new product offers consumers a healthier cheese snack in an on-the-go format, while allowing Gay Lea to expand out of the dairy aisle and into the better-for-you snacking category. “Our customers flagged the product as a convenient snack that would be great for travel, kids lunches and a healthier, savoury alternative to items like chips when stopping at places such as gas stations, which aligned with the growing C&G channels,” says Giasson. “Snacking is definitely a competitive category and we hope our strengths of being a local, proudly Canadian brand with wholesome food sets us up for success.” As the better-for-you market evolves, food manufacturers and c-stores should continue to meet customers’ desires for healthier options, says Biggar. “Mondelēz has been carefully listening to the changing preferences of consumers, which show the growing importance of the better-for-you segment. Sharing these timely insights with our retail customers helps position us so we can win together, and shapes what snacks we offer—helping us bring innovations and continued renovations to market.” With new categories filling c-store shelves, and innovative, healthier choices being launched regularly, snack lovers will be rewarded with value propositions. “It’s an exciting time for convenience stores because ultimately, it means more variety and choice for consumers and higher satisfaction for our customers,” says Jauron. CSNC

STRATEGIES FOR OPERATORS TO MAKE THE BETTER-FOR-YOU CATEGORY WORK IN CONVENIENCE

Snack food manufacturers, convenience retailers and distributors can work together to help build awareness and increase sales around BFY options. Gay Lea is helping c-store operators market its new cheese snacks by developing floor displays that allow for retailer flexibility, while also communicating the brand’s better-for-you selling points. The PepsiCo Beverages Canada team works alongside its convenience store partners to build and execute engagement programs specifically around new product launches or priority occasions, says Jauron. “Loyalty programs have proven to be an excellent approach for many convenience stores,” she explains. “By incorporating betterfor-you products in these programs, there’s an added incentive for consumers to make healthier choices. Engaging with customers through store social channels also drives awareness of the new products available in store.” PLUS, TRY THESE IDEAS FROM THE NATIONAL ASSOCIATION OF CONVENIENCE STORES. • Offer a variety of options beyond fresh fruit or vegetables: Salty snacks can be part of a BFY product set, too. Retailers can consult the NACS’ Healthier Product Calculator for ideas. Consider including produce and water in meal combos or offering lowercalorie foodservice items. • Add better-for-you product displays: Market your fresh snacks, low-sugar or vegan products in high-visibility areas, such as near prepared foods. • Get involved with your community: Boost your store’s BFY profile by donating fresh fruit or veggies and healthy snacks and drinks to local schools or community centres, and donate unsold perishable items to nearby food banks.

A plant based flavour explosion UT

EN FRE

UT FR

TEN FRE LU

VEGAN

UT F EAN RE

VEGAN

that doesn’t harm animals!

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RETAILER SPOTLIGHT

innovation inspiration Retailer Spotlight goes global, shining a light on big ideas from convenience operators around the world

A BY C H R IS POW E L L

As the story goes, the world’s first c-store opened in Dallas in 1927, yet the concept of “convenience” has evolved far beyond merely hours of operation in the nearly 100 years since. In the digital age, convenience is defined by being able to get what you want, when and how you want it, often with only a few clicks of a mouse or taps of a screen. The good thing about innovators, though, is that they never stop searching for answers to questions that haven’t been asked yet. Here are just a few examples of how convenience stores around the world are striving to remain, well, convenient for the 21st century.

FOXTROT United States of America

On the surface, Foxtrot’s core business model of one-hour delivery to local customers in certain areas is becoming increasingly commonplace in modern retail. But what distinguishes the upmarket U.S.-based convenience store company is how it uses the data captured from those orders to determine what to stock on its store shelves, bringing new products to its stores based on customer trends. It also differentiates individual stores by showcasing local products. Foxtrot raised US$42 million in a Series B funding round earlier this year, which it will use to double its store count this year while expanding its line of private label packaged goods. “By accelerating its e-commerce capabilities and offering nationwide shipping on items like chef-driven packaged products, private label and exclusive-to-Foxtrot goods, and wine, Foxtrot will further itself as the nation’s premier corner store,” the company said.

COO Sumi Gosh and CEO Mike LaVitola

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SEPTEMBER / OCTOBER 2021

SPA R M I N I M A R K ET Netherlands

Dubbed a “mini market for the modern age,” in 2020 SPAR, a chain with presence in 48 countries, debuted this new portable concept in the Netherlands. SPAR Mini Markets are about 173 sq. ft. it can be set up almost anywhere, from train stations to parks and even floating on the water (ideal for Dutch consumers living on houseboats). Products are changed six times daily based on the real-time evolving needs of consumers, which enables the retailer to maximize assortment and cater to dayparts in the small space, while also encouraging repeat visits. Stores accommodate one staff member and one shopper at a time.

H U DSON

United States of America

L AWSON Japan

Japan, a country known for its innovative convenience stores, wastes as much as six million tonnes of food each year and spends an estimated 2 trillion yen (about C$22.8 billion) on disposal. One of the companies working to reduce food waste is the c-store chain Lawson, which has started using AI technology supplied by the U.S. firm DataRobot to estimate how much product on the shelves of its more than 18,000 stores might go unsold. Lawson says that disposing of food waste is the biggest cost for franchise owners after labour. The company has stated that it hopes to reduce overstock by as much as 30% in the markets in which the technology has been introduced, and says it wants to halve the amount of food waste in its stores by 2030. In 2019, Lawson also launched a program in which it discounted food items like rice balls and lunch boxes that were close to their sell-by date. Its operators also started offering incentives of 5% of the value of their purchases to loyalty members to incentivize them to purchase items nearing their expiry.

SEPTEMBER / OCTOBER 2021

Convenience stores have earned a reputation as a “grab and go” option over the years, but the U.S. chain Hudson is making that a literal feature of its stores. It’s part of a shift towards so-called “frictionless retail” that experts say is only going to accelerate. New Jersey-based Hudson, which operates more than 1,000 stores in airports, commuter hubs, landmarks and tourist locations, is using Amazon’s Just Walk Out technology to create Hudson Nonstop stores that offer customers a frictionless shopping experience. Customers enter the 1,000-sq.-ft. store by inserting or tapping a credit card, and once they’ve made their selections, leave the store without having to wait in line or interact with a store clerk. Payment is automatically deducted from the account linked to the card. The company opened its second Hudson Nonstop store at Chicago Midway International Airport in June (it opened the first store in Dallas in March). It is also experimenting with vending machines featuring popular brands in categories including eyewear, electronics, skincare, toys and lifestyle accessories. Hudson’s executive VP and COO Brian Quinn says that automated retail enables the company to recreate the “strong sense of place” associated with its stores in a smaller, nontraditional footprint.

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ROBOM A RT United States of America

Billed as “the first store that comes to you,” Santa Monica, CA-based Robomart is a store-hailing service that enables people to request one of two different types of vehicles: A Pharmacy Robomart featuring health and personal care items like pain relief and soap, and a Snacks Robomart featuring chips, soft drinks, chocolate bars, etc. Customers can access the service by downloading the Robomart iOS app and setting up an account. After hailing a Robomart, the vehicle pulls up to their location within as little as five minutes, sending an arrival notification to the user’s phone. They open the vehicle’s door with the app and take out the desired items, with Robomart automatically tallying up the items removed and charging the payment card that is on file. The cars currently have drivers (although they don’t interact with customers), but the plan is for it to become a driverless service.

T W ICE DA ILY/ W HITE BISON

United States of America

Nashville-based Tri Star Energy makes its c-stores a Twice Daily destination with an upmarket coffee experience that keeps customers coming back for more. As c-stores go head-to-head with QSR, many are elevating their coffee programs with beanto-cup machines and diverse offerings to attract caffeinecraving consumers. However, Tri Star Energy is acknowledging the power of coffee as a driver of growth by co-locating its Twice Daily stores with its stand-alone White Bison Coffee concept. In addition to conveniences staples and a fresh on-the-go menu, customers can pick up everything from handcrafted speciality cold brew to singleorigin, pour-over coffees. Some locations also have drive-thru windows.

A LEPA Finland

Personalization is becoming table stakes in the highly competitive retail landscape, but it’s not easily attainable in an industry that is heavily reliant on the economies of scale and traditional supply chains. However, the Finnish corner store chain Alepa found a way to “customize” its stores with a program called “Alepa Block Wishes,” a customization program that reflects the flavour profile and preferences of the individual neighbourhoods served by its approximately 270 stores. Block Wishes is rooted in a Facebook chatbot that enables customers to request items to be stocked at their nearest Alepa store within 48 hours. The items are added to dedicated shelves called “Korttelitoive” (Block Wish). This lets people know that these are not only new products, but have been specifically requested by friends and neighbours. According to Alepa, the product assortment at its neighbourhood stores started changing rapidly after the program was introduced, with one-fifth of its customers using the service. And, of its first 150,000 orders, 70% were fulfilled within 48 hours. CSNC

SEPTEMBER / OCTOBER 2021

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CATEGORY CHECK

Fountain of riches?

Self-serve beverage sales took a hit during the pandemic, but new flavours and strategic promotions in frozen are getting things flowing again

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t was the best of times and the worst of times. The pandemic took a bite out of fountain beverage sales for some convenience stores, while others did quite fine and dandy, COVID be damned. According to the U.S.-based National Association of Convenience Stores, sales of cold dispensed beverages fell by 7.9% in 2020. It was a tough go in Canada as well. But it all depended on the jurisdiction, says Judi Saliba, senior sales executive, national accounts, TFI Food Equipment Solutions, which sells frozen and cold beverage equipment to independents, regional and chain c-store operators across Canada. “It was very localized,”

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Big players are building sales by promoting a flavour of the month and bundling drinks with items like salty snacks

BY MICHELE SPONAGLE

she explains. “Some health units closed everything down and others didn’t.” It was a tough situation to navigate for retailers. One would have to shut down their self-serve beverage operations, while another could stay open three blocks away, depending on the decision of local health authorities. It’s not all bleak. Many retailers have managed to “pivot”—the buzzword of the pandemic—highlighting enticing flavours, contests, and offering special collectable cups. Some c-stores did well, as consumers sought the comfort of food and beverage items with nostalgic appeal, including frozen slushy drinks from their local corner stores. “The smart retailers understand the popularity of frozen beverages,” notes Saliba. “Research shows that the demand is strong and steady as consumers age into the category and continue to enjoy them. Big players are building sales by promoting a flavour of the month and bundling drinks with items like salty snacks. We also know customers like to mix and match flavours. The more you offer, the more your sales increase proportionately. Some retailers out west have as many as 16 available.” 7-Eleven tapped into the nostalgia trend for its Slurpees and brought back its blue vanilla flavour, ending a 14-year hiatus. Along with the tried and true, it introduced a new dragon fruit option. Even cola flavours reign supreme, indicating retailers should offer variety, not only to cater to customers who like to mix it up, but for the visual appeal. As Saliba points out, the doors of the frosty drink machines are often see-through, making the swirling, bright colours of lemon lime or grape, for example, truly

SPECIAL OF THE MONTH! WHILE SUPPLIES LAST

+ SEPTEMBER / OCTOBER 2021

eye-catching. Take advantage of that by ensuring your sightlines are clear to caption customer attention, she suggests. At Circle K and Couche-Tard locations, summer kicked off a strong promotional push. It partnered with PepsiCo to offer its customers four exclusive collectable cups featuring NHL franchise history. It also quenched its customers’ thirst for new and interesting flavours with a limited-time Sour Patch Kids Mystery Flavour (in partnership with Mondelēz) and special edition Froster cups. “We are always on the hunt for new and exciting flavours for our customers,” says Katie Power, the company’s director, dispensed beverages, Canada. “This summer has been one of our most flavour-focused seasons on record.” Circle K and Couche-Tard stores featured exclusives like Pepsi Blue Frosters, coinciding with the launch of retail packaged bottles and cans with the aim to create a holistic in-store approach. Its Mountain Dew Code Red will be available all year long, as will Mountain Dew Major Melon (only at Circle K) for Froster customers. With back-to-school season upon us, these unique flavours will be enticing to students. This fall and winter will also see customers having the opportunity to win a free Froster and other prizes through the Drink, Snack, Score and 31 Days of Circle K promotion. Despite some sales hiccups in the sector last year, confidence is high for success. “Having the ability to offer our beverages in a self-serve environment allows our customers to customize their drink just how they like them,” explains Power. “Our goal for the future of dispensed beverages is that customers make Couche-Tard/Circle K their destination to enjoy a variety of refreshing beverages.” Saliba is equally bullish for the future, especially as restrictions ease: “There’s a lot of pent-up demand... and the category remains popular and profitable. There’s nothing more profitable in a convenience store than frozen carbonated beverage.” CSNC

WATER

AIR

Fountains of fun 101

CHOICE Keep customers coming back for more with a wide assortment of flavours, including nostalgic favourites and limited-time offers. BOOST SIGHTLINES Those see-through windows on the machines are there for a reason—the swirling, bright colours are eye-catching and draw customers in. PICTURE PERFECT Encourage flavour mash-ups in clear cups for social-media sharing or contests. PROMO TIME Promote a flavour of the month and bundle with a salty snack. COOL DOWN It’s almost pumpkin spice season. Entice new audiences with frozen versions of seasonal hot drinks. YOUTH APPEAL Bright signage, in store and out, as well as social media blasts, attract younger consumers. PACKAGING Collectible cups boost engagement, while reusable options (Public Health permitting) tap into social responsibility. SANITATION Routine monitoring and wiping down of the self-serve area is essential. Consider sneeze guards/shields to instill confidence.

SYRUP

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Triggering innovation 6 insights to meet evolving consumer needs and spark growth

onvenience and gas stores are predominantly known for, well, their on-the-go ease and speed. They are the perfect fit for filling up the gas tank and grabbing a quick bite to eat. However, restrictions on daily movement patterns, coupled with the migration of consumption habits to the home environment, have significantly diminished the need for portable away from home solutions (down 31% compared to 2020). Further, increased pantry-loading and stock-piling behaviours have transformed how consumers define convenience. Easy eating experiences are increasingly spurred by on-hand meal and snack solutions. As the world begins its slow pivot through the COVID-19 transition period towards a post-pandemic environment, it’s clear that the period of lockdown will have a profound impact on how people eat, drink and shop for years to come. Given shifting needs and habits, as well as the acceleration and intensification of evolving trends shaping behaviours, it is critical that stakeholders in the C&G industry explore change triggers and tensions to not only remain relevant in an increasingly competitive retail landscape, but also to align channel experience with evolving consumer needs. Innovation triggers for future exploration could include the following.

1. Quick and easy meals

The return to traditional meal regimes has resulted in a greater share of Canadians engaging in daily preparation and cooking activities. Fewer meals are also being skipped. Though scratch cooking habits have receded since early days of self-isolation, an increasing share of meal preparers continue to look for low preparation, time effective meal solutions that are delicious, healthy and delight household members. Consider the rising appeal of fresh meal kits and their fit to the channel. More than one in 10 dinner meals (14%)

delivery channels. Consider implementing contactless solutions (accessible by digital apps) for curbside or ‘pumpside’ pickup targeted to hurried customers or those who remain uncertain and fearful of venturing out.

4. Freshen up

are prepared using meal kits. There is also opportunity to co-create chefinspired kits with celebrity chefs and local restaurants to augment quality and sophistication perception of offers.

2. Foodservice facelift

Upgrading foodservice programs and partnerships should be a priority to help re-ignite traffic and restore visit frequency to pre-pandemic levels. Ipsos Foodservice Monitor (FSM) reports that weekly foodservice incidence has rebounded 40.4% versus the initial lockdown period in March 2020. However, as lockdown habits linger, it will be an uphill climb for some time to fully re-establish traffic rates. Consider menu innovation targeted to specific dayparts to encourage visits at multiple points throughout the day. Additionally, branded reward/loyalty programs that incentivize repeat visits can be key to increasing trip frequency.

3. Embrace digitization

The accelerated prioritization of contactless access—ranging from online shopping to curbside pickup, drive-thru and delivery—has been key to meeting needs given movement restrictions. Ipsos FIVE behavioural tracking shows that individuals using online retail channels to source foods and beverages has increased considerably versus the pre-pandemic period (+55%). Similarly, FSM details notable increases in foodservice pickup, drive-thru and

SEPTEMBER / OCTOBER 2021

C&G stakeholders have long been involved in discussions over expanding shelf sets to include fresh produce. While consumption of fresh fruits and vegetables is on the rise (+9% versus 2020), understandably, concerns about waste have left many unwilling to bet on the viability of such a move. However, it should be noted that consumers have, over the past year, increasingly opted for shelf-stable, packaged goods. There is, in fact, a centre of store revival underway. Given these habits, there are a variety of innovative ways to spark fresh perceptions. Consider promotional activities that prominently feature ‘fresh packaged goods’ by promoting required bestbefore-date labels on front of packages. Further, addressing product make-up concerns with clean label conversations will help ease freshness tensions.

5. Modern comfort

In 2021, cocooning home choices were met by comfort noshing. FIVE reports that comfort, taste, treat, happiness and positivity as drivers of choice all increased by double digits during the lockdown. Keep in mind that, for younger generations, modern day “comfort” transcends solely focusing on traditional indulgent categories and brands. These consumers, often from diverse and multicultural backgrounds, grew up eating and drinking a wider variety of options that make them feel good. Consider a wider range of foods that comfort Gen Z (ages 14 to 24), which could include, sushi, ramen, baby carrots, tacos and avocados, in tandem with traditional favourites, like potato chips, chocolate and ice cream.

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6. Align values

Finally, the rising prioritization of transparency in evaluating how authentically committed retailers and their partners are to environmental, social and governance practices provides unique innovation platforms to realign values with these new focus areas. FIVE data reveals that 78% of Canadian adults report being strongly influenced by a variety of efficacy factors—from product provenance to environmental impacts—with strongest development among consumers under age 40. As we gradually lift lockdown restrictions, those in the C&G industry can use this transition period to assess innovation potential. Change will be key to future success, particularly for those whose innovation is sparked by a commitment to better meet the needs, wants and values of consumers. CSNC

Kathy Perrotta of Ipsos Canada will deliver the keynote—“Conscious consumption: Offering Canadians convenience without compromise”—at the virtual Star Women in Convenience Awards Event on September 29, 2021. Be a part of the celebration as the industry comes together to learn, connect and honour the 2021 winners. Register today: starwomenconvenience.ca

ST R WOMEN

Kathy Perrotta is a VP with Ipsos Market Strategy and Understanding, working with the Food & Beverage Group Syndicated Services. Data sources within this group include, Ipsos FIVE and Foodservice Monitor (FSM).

IN CONVENIENCE

Canada’s #1 Cough Drop

HALLS is the cough drop leader 1 with the highest consumer awareness 2

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Place your HALLS display near the cash! HALLS display can help generate up to +33% growth during cough & cold season 3.

HALLS is used year round 1.

PPD HALLS SGL VARIETY CTR 120 ct. Item #: 57700 0139600 SCC #: 000 5770001396 0 CONTENTS: 20 HALLS ML SF Black Cherry 9 pcs 20 HALLS ML Honey 9 pcs 20 HALLS ML Extra Strong 9 pcs 40 HALLS ML Cherry 9 pcs 20 HALLS ML Honey Lemon 9 pcs ML: FOR THE TEMPORARY RELIEF OF SORE THROAT, COUGH AND NASAL CONGESTION. VITAMIN C: A FACTOR IN THE MAINTENANCE OF GOOD HEALTH. ALWAYS READ AND FOLLOW THE LABEL

1 Nielsen MarketTrack, All Sales, Nat+NFLD GB+DR+MM + C&G, L52wks PE May 2020 2 Kantar Canada Refreshing Candy Brand Equity Deep Dive Dec 18, 2018 3 Nielsen MarketTrack, Display sales, NTL GDM+C&G, Sep-Mar 2020

26% of all HALLS drops product sales are outside of the September to March cough & cold season 1. Contact your Mondelez Canada representative or your wholesale representative for further information and details.

CATEGORY CHECK

BY M I C H E L L E WA R R E N

Sell and soothe Build a healthy cough and cold category that drives incremental sales throughout the year

eryday, not just in season. We have also seen shoppers trade up to larger sizes in a COVID environment and this trend is continuing. As such, we are looking at what this could mean for pack sizes in the gas and convenience channel.” In turn, Ricola is offering Extra Strength Menthol in bags and stick format, while also introducing Menthol Centres Honey Lemon and a sugar free version of its popular Lemon Mint. For convenience and gas operators, the cough and cold category represents a valuable way to trigger impulse purchases and build incremental sales. “Customers looking to combat a cold, clear up nasal congestion or just use as an everyday mint truly appreciate the ease of purchasing relief from their corner store,” says Fisherman’s Friend marketing manager, Voula Papadakos, who is optimistic about the strength of the category. Fisherman’s Friend is tapping into taste buds with the upcoming launch of its newest flavour, Sugar Free Orange Spice, which combines soothing properties and bold flavour. Halls also has an exciting year of innovation planned to drive sales and spark recovery for the cough lozenge category, says Michael Goodman, gum, cough & candy lead for Mondelēz Canada. “As the leader of the category, we have always tried to bring new products and solutions to the market that best meet the needs of consumers and drive category growth.” The company recently introduced Halls Minis; a new portable cough solution in its two top flavours, Cherry and Honey Lemon, designed to help consumers take relief anywhere. Traditionally, September through March are the top months for cough and cold product purchases, but with the right merchandising and messaging, the category has year-round potential to drive incremental sales for convenience and gas. CSNC

SEPTEMBER / OCTOBER 2021

6 smart strategies

1. HIGH VISIBILITY Use impactful displays, point-of-sales materials and danglers to grab attention and trigger unplanned purchases. 2. LOCATION MATTERS Customers often buy on impulse, in turn cough SKUs do well close to the cash, particularly the top shelf, at eye level. 3. SECONDARY DISPLAYS Strategically position items next to top-sellers, like water, tea, coffee, tissue and other pharmacy-related items, including masks. 4. BIGGER BENEFITS Tap into the latest nutrition trends, such as low or no sugar, with innovative SKUs and flavours. 5. TRIED AND TRUE Ensure best-selling brands and SKUs are always in stock in a variety of flavours and package types for wide appeal. 6. LEVERAGE SALES REPS Tap into their expertise and tools, from planograms and new product information to merchandising advice and POS materials.

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hile last year’s cough, cold and flu season was relatively mild due, in no small part, to social distancing brought on by the pandemic, as people get back to in-person routines, the 2021/2022 season will require a different approach, one that is expected to drive new opportunities for the convenience channel in the cough and cold category. “As the economy continues to open up and shoppers return to pre-COVID activities, we are predicting a strong cough-cold season,” says Jan McCallum, senior business development manager - North America for Ricola Canada. “Cough, cold and flu incidence data is already indicating an uptick in people getting sick. Ricola will participate in the cough and cold season with full activation and is also experimenting with an everyday business for voice care.” Mask wearing means talking louder, which can take a toll on the vocal cords, causing irritation, sore throat or dryness. Plus, with returns to work and school, people will be talking more. Research shows 50% of cough drop usage occurs out-of-home, as consumers look for solutions on-the-go. With that in mind, c-stores would do well to prepare for an increased demand for throat lozenges. C&G accounts for almost $10 million in retail sales, worth approximately 13% of the total category. “Winning in gas and convenience is integral to our overall growth strategy for our company, and thus a priority for us. Our brand health relies on bringing new consumers into the brand and increasing HHP [household penetration]—if we do this correctly, we grow the category for our retail partners,” says McCallum, adding: “We are relatively new to the channel and working on ways to grow our current offers ev-

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B Y PA M E L A PAT R Y

What does workplace safety and the in-store experience look like in a post-vaccinated world? Expert: Pamela Patry is acting pandemic program lead, field operations for Workplace Safety & Prevention Services (WSPS)

ur nostalgia for life before COVID-19 may already be painting the pre-pandemic world as a simpler, safer place, but it’s not a place we can ever return to. And that’s not a bad thing. From a health and safety perspective, everything we’ve learned through the pandemic can help us create safer in-store experiences for employees and customers. Here’s what we’ve learned so far • Viruses like COVID-19 may die out or survive indefinitely. Remember SARS? It disappeared with little human intervention. However, other viruses continue circulating. Since the COVID-19 pandemic could become endemic—occurring regularly but at low levels of infection or illness—it may be necessary to continue minimizing the possibility of transmission into the future. • COVID-19 vaccinations aren’t a cureall. They may be a person’s best defence against the virus, but vaccinated people can still contract and spread it. • We’ll never vaccinate everybody. Experts now say achieving herd immunity could require a 90% vaccination rate, but that may be beyond reach. Since much of the world remains partially vaccinated or unvaccinated, more infectious variants may emerge, such as Delta and the more recent Lambda variants. Here’s what we can draw from this • A post-vaccination world isn’t necessarily a post-pandemic world and

Safety first

10 best practices

• Keep up with evolving COVID-19 requirements.

• Follow the enforcement activities of provincial and local agencies, including Public Health.

• Continue to clearly indicate COVID-19 precautions, such as wearing masks and hand sanitizing before customers and suppliers enter. •M aintain hand sanitation stations close to entrances.

• Enforce capacity limits so long as they remain a requirement. • Be vigilant with housekeeping.

• If plexiglass barriers are no longer required, consider keeping them in place.

• Be on guard against COVID-related anger. • Ensure employees and customers are aware of what you’re doing to protect them, and their role in protecting themselves.

•B e mindful of other potential hazards, such as slips, trips and falls, repetitive strain, and unsafe or excessive lifting.

COVID-19 precautions may be with us for a while. • COVID-19 preventive measures work. They can even keep us healthier. A link exists between COVID-19 precautions

and declining infection rates for influenza, the common cold, and childhood illnesses, such as chickenpox and measles. What does this mean for employees and customers entering a convenience store or gas bar a few months from now? The risk of transmission may be lower, but people may still be required to wear face coverings, regularly wash or sanitize their hands, conduct transactions through plexiglass barriers, and so on. How to survive and thrive in this post-vaccination world For convenience store and gas bar operators, surviving and thriving means taking a longer view by integrating your short-term COVID-19 measures into longer term health and safety practices. My number one recommendation is to create a written COVID-19 safety plan if you don’t already have one. A safety plan documents what your workplace needs to do to prevent transmission, and how to do it. These plans are a legal requirement in some jurisdictions, such as British Columbia and Ontario, but in any jurisdiction they’re a useful way to implement best practices. Free templates and instructions and sample plans are readily available online. Even better, you can use your COVID-19 safety plan to create plans for other workplace hazards. This makes the plans particularly handy for small businesses and companies with multiple locations. No formal health and safety expertise is required to draft a plan for your workplace. Final words: As we enter a post-vaccination world, take time to review, assess and improve health and safety practices. They will help you keep everyone safe, sustain important relationships, and ensure your business continues operating efficiently. CSNC

Workplace Safety & Prevention Services (WSPS) is a not-for-profit organization committed to protecting Ontario workers and businesses. A proud partner in Ontario’s occupational health and safety system and a trusted safety advisor since 1917, WSPS has a rich history of making Ontario workplaces safer. WSPS serves the manufacturing, agricultural and service sectors. WSPS offers unparalleled health and safety expertise, consulting, training and resources for businesses of any size. Visit WSPS.ca or reach out to customercare@wsps.ca or 1-877-494-WSPS (9777).

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BACKTALK

BY M I C H E L L E WA R R E N

Agent of change

For Jeff Doucette, general manager, Field Agent Canada, innovation is in the details

P H O T O B Y C O L I N WAY

Jeff Doucette has deep roots in the convenience business. His parents operated several convenience and gas sites in the Halifax area, where he worked until graduating university and moving to Toronto. After cutting his teeth in CPG—at Unilever one of his first accounts was the Ontario Korean Businessmen’s Association—and running his own consultancy, he joined Field Agent Canada, which provides retail audit, mystery shopping and mobile research services through a smartphone app platform and network of more than 153,000 “agents” who are the company’s eyes and ears on the ground, collecting data for retail operations. Doucette, who is now based in Calgary, shared his observations and insights about on-shelf availability, creating traffic flow and charting the future of convenience.

Your background provides a unique window into retail, particularly convenience. With that in mind, what’s your general take on the convenience store business today? JD: It’s a long time ago now—my parents have been retired for about 20 years—

but that retail experience has been very useful throughout my career. On a macro level, the very idea of convenience is changing—it’s not just around the corner, now it’s going to be delivered to your couch. When I was working for L’Oréal, I travelled a lot in Asia and there, even the little convenience stores would deliver a bottle of Coke around the corner. It’s interesting to think about the professionalization of this now—you have a big chain approach with apps and delivery services, but then the independent retailer needs to find their niche in that space. It feels like the pandemic is reshaping consumer expectations and habits in an accelerated way. How do you see this disrupting convenience?

JD: Think about the big, traditional categories. With lottery, for instance, despite

convenience stores staying open, in-person sales were very difficult because people weren’t out and about as much. Here in Alberta, we have Play Alberta now and, honestly, I just buy my tickets on my app because I see the ad and I’m like, “Oh yeah, there’s a draw tonight.” The lotto industry had to react to the pandemic and that may have structurally changed how lotto is done for a huge part of the population. And that’s eliminating a trip to the convenience store. We’re seeing that across a bunch of categories. Look at what’s happening in the UK where they’re talking about junk food taxes. With COVID and the understanding that one of the big comorbidities is obesity, there’s going to be more scrutiny on what people eat. What does that mean for convenience? It can’t just be about treats and sugary drinks—there needs to be balance. We were already starting to see (better-for-you) products, menu innovation and fresh grab-and-go items. I expect we’ll see more of that. With so much change happening so quickly, it’s hard for operators to know where to focus. What’s your advice?

JD: It comes down to the ability to know your neighbourhood. There will be

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lots of neighbourhoods where the traditional convenience store stuff works, but as areas gentrify, as new developments come in, it’s important to observe what’s happening around you. If five bubble tea stores pop up around your store, maybe your milkshake machine isn’t the right fit. People are looking for other things. The standardized assortment is one thing that makes the chains efficient, but it’s also a really big opportunity for the independents to say, “Yeah, but I know my shoppers. I know them by name. I know what they want and I’m willing to bring in the things that they want to buy.” There’s a store here next to a gym and it’s the perfect opportunity to sell coconut water or whatever people drink or eat after working out. Or there’s another one that’s really close to a doggy daycare with tons of pet traffic—tap into that. The real, sustainable innovation for convenience stores is being intimately knowledgeable about their community.

Offer something that isn’t a convenience store item, but it gets people into your store, and it has this excitement because it’s limited and only available while supplies last

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What are you noticing when it comes to Field Agent’s shelf evaluations?

JD: We’re doing a lot of work around on-shelf

availability. It’s inconvenient if your supermarket doesn’t have what you want, but it really defeats the purpose of a convenience store if your convenience store doesn’t have what you want. One of the challenges I find with convenience operations is that a lot of cold vaults have one row of every item, then at the end of the day, you’ve sold out of your top-selling products. The on-shelf availability piece is huge right across the board because there’s a drive to have an assortment that includes everything and every new innovative product, but I don’t know if that’s the right move. Make sure that you’re always in stock of those key items. That can be a challenge these days—some retailers are having trouble sourcing products. JD: Yes, one of the big things is the supply chain

It’s not about catching up; it’s about asking what’s going to be convenient a decade from now issue. If it comes from China, there’ll be a bottleneck and a lot of stuff is late already. It’s going to be tricky trying to manage inventories and build seasonal items appropriately—I think it’s going to be bumpy, whether it’s stuff that’s made in Canada or from overseas. What can operators do to mitigate the fallout from these category shifts and supply issues?

JD: Lidl [discount chain in Europe and the

U.S.] does a great job of offering a limited hot deal that creates a bit of a frenzy. Convenience stores can do this, too—offer something that isn’t a convenience store item, but it gets people into your store, and it has this excitement because it’s limited and only available while supplies last. That type of demand creation is needed because you’ve got less trips from a lotto, less trips from gas, those types of things. What else can bring traffic to the store? When it comes to in-store, are you noticing any pandemic-inspired trends that are going to stick?

JD: We’re seeing more decluttering of stores

so that people can navigate and see. I always say the Wawa format in the Southeast U.S. would do amazing in Canada. It’s almost the perfect blend of convenience and foodservice; the stores are bright and modern and spacious. They could have built it on 60% of the footprint, but they didn’t. It gives you a lot of room to move around and the layout of the store creates traffic flow. How do you see convenience stores evolving?

JD: General stores are quaint. They’re quaint

and they’re an attraction—you see hipsters buying different stores now and turning them into a local food haven or whatever. But convenience stores stuck in the ’90s are not quaint. There are a lot of stores that are stuck in a rut—that includes chains and independents. The channel needs to evolve to stay relevant. Think of that old, really worn adage of ‘play to where the puck is going to be.’ It’s not about catching up; it’s about asking what’s going to be convenient a decade from now when we’re all driving electric cars and we all order stuff online and there’s a soda tax or whatever those things might be. Based on where we are going, what will consumers want? As an industry, we need to be asking, where should convenience be 10 or 15 years from now? Let’s start going there. CSNC

SEPTEMBER / OCTOBER 2021

2021

SHOW GUIDE

September 28-29, 2021 ConvenienceU.ca

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FOODSERVICE CONTINUES TO GROW AT CANADA’S FUEL AND CONVENIENCE SITES

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CONTENTS

SEPTEMBER | OCTOBER 2021 VOLU M E 2 6 | N U M BE R 5

5 Editor’s Message

Change comes with opportunities

6 Showtime

The All New Convenience U CARWACS Show innovates to deliver value

8 Quick service ready to rebound Restaurants Canada president

and CEO Todd Barclay

10 This restaurant gives me gas

Foodservice continues to grow at Canada’s fuel and convenience sites

12 Fish in a barrel Convenience, loyalty, and volume growth are

BARJ DHAHAN MCDOUGALL ENERGY DEALER

behind the success of subscription wash

14 Diversity breeds success

B.C.-based dealer creates a winning combination that covers all the bases

20 Network, discover, learn

The All New Convenience U CARWACS Show Preview + Exhibitor Listings

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Low cost, quality, reliable fuel, and a choice of retail brands. Grow your retail business Greenergy operates a leading national gas and convenience retail network and offers solutions for the independent retail market. Join our growing gas and convenience team of independent retailers today, and benefit from retail programs developed and supported by our experienced team of fuel supply and retail experts.

Our brands allow us to tailor a solution that best suits your retail needs and allows you to keep control of your business.

Come meet us in person or virtually at booth #420 Toronto Convenience U CARWACS September 28 - 29, 2021 For more information, contact us: CanadaInquiries@greenergy.com

www.greenergy.com/canada-retail

EDITOR’S MESSAGE 20 Eglinton Ave. West, Suite 1800, Toronto, ON M4R 1K8 (416) 256-9908 | (877) 687-7321 | Fax (888) 889-9522 www.CCentral.ca SENIOR VICE PRESIDENT, CANADA | Donna Kerry

EDITORIAL EDITOR & ASSOCIATE PUBLISHER, CSNC

Michelle Warren | mwarren@ensembleiq.com

EDITOR, OCTANE

Kelly Gray | kgray@ensembleiq.com

TRANSLATION | Danielle Hart

ADVERTISING SALES ASSOCIATE PUBLISHER

Elijah Hoffman | ehoffman@ensembleiq.com

VICE PRESIDENT, EVENTS

Michael Cronin | mcronin@ensembleiq.com

DESIGN AND PRODUCTION SENIOR VICE PRESIDENT, OPERATIONS Derek Estey | destey@ensembleiq.com

DIRECTOR OF PRODUCTION

Michael Kimpton | mkimpton@ensembleiq.com

ART DIRECTOR | Jackie Shipley DIRECTOR OF MARKETING, BRANDLAB

Alexandra Voulu | avoulu@ensembleiq.com

SENIOR DIRECTOR AUDIENCE STRATEGY Lina Trunina | ltrunina@ensembleiq.com

SENIOR DIRECTOR, DIGITAL CANADA & SPECIAL PROJECTS Valerie White | vwhite@ensembleiq.com

EXECUTIVE VICE PRESIDENT, CONTENT | Joe Territo

SUBSCRIPTION SERVICES

Change comes with opportunities

The future is unrolling rapidly for Canada’s 11,000 petroleum retailers as the country turns to greener solutions for vehicle fuelling. In less than 15years, 100% of all vehicles sold in this country must be zero-emission. This change will mean big expenses for conversion to electric vehicle charging and hydrogen dispensing systems, not to mention the cost of underground storage tank removals. Change also creates opportunities for those operators that can read the business environment. In this issue, we look at foodservice at Canada’s gas stations, where convenience is a big drawing card. Gas stations have long-held winning hands when it comes to location. Fuel retailers are the businesses on the corner, at the end of your block, and on the next street. What will neighbourhood gas bars look like in 10 to 15 years? If current trends are any indication, the local fuel retail lot will trade hard on its convenient location and offer more to customers with products such as branded foodservice that come with drive-thru windows. Expect to see more engaged convenience stores as well. For those customers who come in to charge their electric vehicles, fuel retailers are positioning themselves as comfortable places to sit and wait with a coffee and snack while the car gets juiced. And, while vehicles are charging, visitors might also grab a quick take-home supper for the family, buy a list of grocery items, purchase a car wash or maybe pick up dry cleaning and a bottle of wine. Change is certainly upon us. The coming period will usher in the most significant alteration to the current fuel site business model. How will your fuel business pivot to take advantage of the opportunities coming? OCTANE

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SHOWTIME! The All New Convenience U CARWACS Show innovates to deliver value in a virtual format

hallenging times demand innovative solutions. The All New Convenience U CARWACS Show (September 28 to 29) is a perfect case in point. The longestrunning and best-attended Canadian trade event for convenience, gas and car wash industries, Convenience U CARWACS is a must-attend event thanks to its high-quality programming, industry support and unique opportunities for attendees to learn and grow their businesses. Now, following COVID-19 challenges, the Show is moving forward with a virtual format that is characteristically forwardthinking and highly interactive. *Virtual model Attendees visit online via a proven easy-to-access and engaging platform that allows them to interact and learn from vendors through virtual booths and meeting rooms. *Discoveries to be made From petroleum retail to car wash to c-store, the Show offers the largest gathering of industry professionals in Canada. Virtual attendance guarantees a tap into this pool of experience and knowledge. Plus, this is your window to discover new products and services. *Future-proof your business For critical insights to grow your business, join leading innovators, including keynote speaker Norm Hower, VP and general manager of 7-Eleven Canada, as well as tech guru Marc Saltzman and trend maven Margaret McKellar of Kantar Canada, for a morning kick-off

SEPTEMBER / OCTOBER 2021

conference on September 28th. This insightful and engaging half-day event is designed to rise all boats to the new postpandemic tide line. *Ongoing engagement to October 27 The interactive virtual model is tailored to be flexible, with a format that extends 30 days so that attendees and exhibitors can connect via the platform at their convenience and access session recordings post-conference.

*One-stop shop The All New Convenience U CARWACS event is the place to find answers, discover new products and meet suppliers in an innovative and interactive online format. The Show saves shoe leather and ensures safety by making it easy to get together with the industry’s broadest range of suppliers, organizations and personalities. See you at the Show! OCTANE

“These challenging times demanded a solution that allows people to gather as an industry,” says Ed Several, executive vice president-events & conferences, EnsembleIQ (EIQ), the operators of the Show. The industry will be able to connect virtually thanks to the technological innovations assembled by the team at EIQ. The All New Convenience U CARWACS Show brings people together under a digital umbrella that delivers added value to attendees and exhibitors.

What will you discover at The All New Convenience U CARWACS Show? Visit www.convenienceu.ca for more information.

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B Y T O D D B A R C L AY

ummer is in full swing and Canadian restaurant operators are finally seeing the light at the end of the dark, dark tunnel of the ongoing global pandemic. With reopenings happening across Canada, annual commercial foodservice sales are expected to increase to $63.9 billion in 2021. Quick-service restaurants are forecast to be the first to return to pre-pandemic levels in Q4 of 2021. Foodservice sales at full-service restaurants are predicted to rebound to pre-pandemic levels in Q2 2022 due to pent-up domestic household spending. We anticipate the industry to grow to nearly $80 billion in 2022, representing a 3.8% increase over 2019 levels. While this is one way to view the performance of the foodservice industry, it doesn’t tell a complete story. The overall size of the industry will have increased in 2022, and after adjusting for population and inflation, real per capita commercial foodservice sales will remain below pre-pandemic levels for the next few years. Sales at the end of this year will remain 17 per cent below pre-pandemic levels due to the weak first half of 2021, and by the end of 2022, real per capita foodservice spending at quick- and fullservice restaurants are expected to reach 97 per cent of pre-pandemic levels. While these are all positive developments that will lead to stronger commercial foodservice sales in Canada, we are cautious when it comes to the timing of the recovery. As we move into fall, weak foodservice spending by international visitors, the lack of business travel and meals, the threat of a fourth wave, and continued restrictions, for many restaurants, survival is still uncertain. As much as they would like to stay focused on welcoming back their regulars, placing more orders with local farmers and creating more jobs for the

SEPTEMBER / OCTOBER 2021

Something that most Canadians don’t realize is that at least 95 cents of every dollar we spend at a restaurant goes directly back into our communities communities they call home, all these things have become a lot harder since July 4th—the day when restaurants started losing access to the federal rent and wage subsidies. That’s because after more than a year of operating under severe restrictions, most restaurants are drowning in debt that they had to incur just to keep the lights on. The devastating impacts of this pandemic have not been felt equally by all Canadians. The stark reality is we can’t talk about revival and recovery if so many restaurants and small business owners are still struggling to survive. Nearly half of all foodservice establishments have been losing money every day of the pandemic. They now face a long and difficult road to recovery, and will likely need at least a year to return to some semblance of normal. While some sectors might be ready to resurface, in full force, from the COVID-19 tunnel, our local restaurants are still in it. Scaling back their subsidies before they’re able to stand on their own feet again has endangered an industry that is crucial to rebuilding our country’s economy. Something that most Canadians don’t

realize is that at least 95 cents of every dollar we spend at a restaurant goes directly back into our communities. That’s because even during the best of times, a typical Canadian restaurant has a pre-tax profit margin of less than 5%. No other sector keeps so little in profit and returns so much to our economy: 95% of all restaurant revenue typically goes toward local jobs, purchases from Canadian farmers, food and beverage producers and other food service industry suppliers, contributions to charity and more. On behalf of our hardest-hit sector, Restaurants Canada is urging the federal government to scrap the scaling back of the rent and wage subsidies. We need to keep our local restaurants in the picture so they can keep feeding Canada’s recovery—literally and figuratively. If we want to build back a stronger, more sustainable economy that continues to reflect our country’s incredible diversity, our industry is the best place to start. OCTANE Todd Barclay is president and CEO of Restaurants Canada.

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Vinod Iddya (in white) with his team (from left)—Aayush, Gina and Kiran—at the Georgetown, Ont. location, where branded foodservice drives traffic.

This restaurant gives me gas Foodservice continues to grow at Canada’s fuel and convenience sites

BY K E L LY G R AY

t was not that long ago that Canadians gave gas station foodservice a wide berth. Unlike our American cousins that flocked to the convenience of gas bar cuisine, Canada was resistant. The drive-thru, branded marquees, and a dedication to quality and performance have helped change our minds about this extra backcourt service. In Whitecourt, Alta., a town about 175 km northwest of Edmonton, the Hommy family operates the Esso at Kanata, a c-gas operation that is locally famous for its foodservice and nationally renowned for its restrooms (Esso at Kanata was Cintas’ top restroom in 2016). In addition to a massive forecourt that can accommodate the largest transport trucks, The Esso at Kanata offers a 6,500 sq. ft. c-store that has been open since 2015. Inside, a crew of six to 10 kitchen workers prepare a menu that is headlined by their locally famous Wane Cut pizza. Wane cut is a name that comes from the lumber industry. This cut is viewed as the best piece of the tree. A Wane Cut pizza is a custom pie that is ready in just three minutes thanks to high heat TurboChef ovens. According to the site’s general manager, Alisa Cotterill, Pizza is a big attraction, but paninis and breakfast items are close behind in customer preference. “For us, fresh is a major factor in our success. We make great food from scratch, and we have been recognized for this by our customers who will drive the extra mile. Truckers tell us they plan their meal breaks for our location,” says Cotterill, adding that they also offer delivery to the local area.

SEPTEMBER / OCTOBER 2021

Above: The Esso in Whitecourt, Alta, features Wane Cut Pizza and a deli counter.

Breakfast is an essential component of the mix. Cotterill reports that people come in for the massive omelettes and bacon and eggs full breakfast, but they also plan for lunches. “We have sandwiches and other items ready for pick-up in the deli as people leave to head out on their day. This way, we can maximize the opportunity in two dayparts,” she says. In Ontario, Vinod Iddya, franchises and operates the Petro-Canada at 375 Mountain View Rd. in Georgetown. The site includes a Petro-Canada station, c-store and Glide car wash, plus an A&W restaurant they opened in 2012. “I was trained CCentral.ca

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as a chef but got into this business and have opened multiple stores over the years,” he says, mentioning that he currently operates six Petro-Canada locations. “I understand food, and I know how profitable a well-run restaurant can be. We see hundreds of cars a day using our drive-thru, and 70% of site sales occur from this area.” Iddya suggests that gas station operators have to think beyond fuel sales. “Times are changing, and customers need more reasons to stop in. Having a c-store with a strong food component and a branded foodservice marquee drives more business. A&W has a winning formula that helps create solid profits. And, customers understand the brand and trust it to provide quality menu items. When you team a trusted brand such as Petro-Canada with a well-known foodservice brand, great things can happen. I think success in this area is about trust. Good brands that deliver this trust are working to create great partnerships.”

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According to the most recent Kent Report (OCTANE July/ August 2021), there were 1,367 quick-serve restaurants (QSR) associated with the 10,071 sites reporting ancillary offerings, a representation rate of 13.6%, up from 8.7% a decade ago. This number represents an increase of about 530 sites offering such facilities. “Quick-serve restaurants are generally integrated into the convenience store and are typically run by third-party vendors. They provide increased traffic not only to the pumps but also to the store itself,” states the 2020 Kent study. NPD Group has found that foodservice traffic was down 28% and sales fell over $3 billion in May, compared to a year ago. (NPD, 2020) However, sales are expected to climb in 2021. Restaurants Canada forecasts an 8.7% increase in sales to $31.8 billion, 5.8% below 2019 pre-pandemic levels. (RC) Restaurants Canada notes that QSR will continue to lead growth over the near term. Simply, QSR delivered on its value promises offering the right products at the right price point during the pandemic. Chains were able to optimize their already established digital platforms, and then take advantage of COVID-19 era rent reductions to maximize returns on units. Now, as the pandemic moves off, successful foodservice operators will be the ones that continue to excel at take-out/delivery for home and away. OCTANE

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Convenience, loyalty and volume growth are behind the success of subscription wash BY K E L LY G R AY

ubscription car wash is a growing feature in Canada’s vehicle care universe. The concept has percolated from the southern U.S., where operators have been using this sales tool for years. Here in Canada, car wash businesses were resistant to the idea because of our challenging weather. The idea was that sloppy slush filled streets would have people washing their cars every day, making the cost of an unlimited wash package unrealistic. The reality has proven to be far from this thinking. Subscription wash programs create loyalty, and they deliver convenience. Operators can better predict their monthly sales volumes and customers love the lower cost per wash. During the pandemic, those with unlimited car wash programs fared much better than those businesses without subscriptions. For example, Ohio-based DRB, a leading car wash equipment provider, found that operations with unlimited monthly programs saw half the weekly sales volume decrease compared to their competitors without a subscription program. DRB’s data shows operators with subscription programs running during the pandemic were achieving 239% more weekly volume compared to those without programs. Here in Canada, operators have taken note of the power of subscription to drive sales. Majors such as Shell and Petro-Canada both offer ‘wash passes’. And, a growing number of independents have also innovated towards this program. For example, at Valet Car Wash, the largest independent branded care wash in southern Ontario, they were among the first car washes in North America to start a monthly reoccurring subscription plan 18 years ago.

SEPTEMBER / OCTOBER 2021

Jason O’Brien

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Valet owner Mike Black remarks that their top packages tend to be the most popular. These packages include undercarriage wash and or tire dressing. Three unlimited packages run from $19.99 to $35.99, and vacuums are free to use. At Valet, they utilize RFID tags to identify program members, while others, such as Couche Tard, are looking to license plate capture technology to ID customers. In St Catharines, Ont., Jason O’Brien operates Superior Car Wash & Express Detailing. He purchased the underperforming site a little over two years ago. His idea was to rebrand and refresh the business. Part of this initiative was the improvement of the subscription wash program. “When I took on the business, we had about 150 to 200 members in the monthly wash program. People would come into the program, and others would leave. We saw there was a challenge with customer retention. As we refreshed the equipment and the visuals, both inside and outside the wash, we started paying more attention to selling monthly packages. Today, we are over 1,000 members, and the upgrades like NeoGlide brushes, signs and lights in the tunnel and new dryers from Sonny’s have helped us keep those customers and build on the base.” O’Brien suggests that overall it was performance consistency that won the game with building the monthly subscription business. “We went from ‘how we did it in the 90s’ to a fully modern approach to car cleaning. When our customers learned they would get the same service each time, they were more willing to pay upfront. Refreshing the exterior with modern decor and better signage also told them we’re here for the long haul. Subscription customers have to trust that the operator will not be shutting down when they have already paid in advance.” At Superior Car Wash, monthly packages are divided evenly in terms of popularity. According to O’Brien, they offer three tiers in a Sonny’s tunnel wash that can handle 80 cars per hour. The top tier is $27.99 for the works that include Turtle Wax Fire & Ice and undercarriage spray. The mid-range wash costs customers $22.99, and the third group is an express wash for $17.99. Members receive 25% off interior detail services. Customers use a bar code and greeter system rather than an autoteller. “I want our customers to have personal contact. This means we have a staff member meet them at the front and get them started on the wash. I want my staff to greet customers by name and make eye contact.” The industry has found that customers using an unlimited program tend to visit a location three times a month, while a single-use car wash customer may drop in four to five times a year. As membership counts build, revenue per car decreases. Operators have to find the sweet spot where they are not cannibalizing returns to increase volume. Operators also need to maximize the opportunities available when they have more customers coming to their sites. At Valet locations, customers are invited to upgrade to a higher package or pay the difference on other services like interior cleaning, waxing, or oil changes. More customers also mean more potential sales at on-site convenience retail. O’Brien remarks that before COVID-19, they installed a range of vending systems to maximize sales. However, these sales failed to materialize given the challenges of the pandemic. “We still have all the vending equipment inside with in-car air fresheners and other items that car wash customers look for,” he says, concluding that with a subscription model they are better prepared to be the neighbourhood car wash everybody loves. OCTANE

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DIVERSITY breeds SUCCESS B.C.-based dealer creates a winning combination that covers all the bases B Y K E L L Y G R A Y Barj Dhahan has earned a lot of experience as a fuel site retailer. He got his start back in the 1970s when he attended the University of Victoria and worked at a Merit Oil location. Shortly after that he moved to Vancouver and became a manager at a Merit Oil location in the Kitsilano neighbourhood. The site soon became a Petro-Canada, and Dhahan became the dealer as a lessee. Today, Dhahan, through his Sandhurst Group business, owns and operates three Esso sites (2360 King George Blvd., Surrey; 16815 96th Ave. Surrey; 24796 Dewdney Trunk Rd., Maple Ridge). He is also one of British Columbia’s most prominent Tim Hortons franchisees with P H O T O G R A P H Y B Y R O B E R T K A R PA

SEPTEMBER / OCTOBER 2021

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Barj Dhahan

nine restaurants, of which three operate alongside his fuel businesses. “In the ’80s, I started buying small stations around the Vancouver area. I found I could clean them up and improve them, and they would start making money,” he says, mentioning sites in Squamish and Maple Ridge as examples. “These sites were mom and pop operations with the husband running the garage and the wife running the gas bar. I discovered that by putting proper business procedures in place and cleaning up the appearance of the operation, the site could see as much as 30% gains in sales.” Back in the ’80s, gas stations still had service components. In some cases, Dhahan kept these repair services running while he refreshed the location. However, times changed, and the repair aspect of gas stations fell away. “There was a new model that required sites to have other businesses to attract customers. This model meant convenience retail and foodservice as well as a car wash. Today, foodservice is an essential part of a winning business equation for fuel sites,” he says, noting that sites are larger and many locations require an acre of land with 12 to 16 fueling positions to be successful. “But, even small rural sites can be a success with the right mix of services,” he says. Dhahan is a McDougall Energy dealer, a relationship he has built over the last 10-years. A decade ago, Imperial Oil decided to support its branded dealers while McDougall Energy offered supports for independent operators such as Dhahan. “I stayed on with McDougall and have found there is money

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to be made selling fuel. The price I pay is market-driven, and McDougall has been responsive to our needs. It’s been a good partnership,” he says, adding that he is still able to use ESSO branding and programs such as those provided through PC Optimum loyalty cards. Dhahan’s advice is for operators to be retailers, not just fuel sellers. Toward this end, his locations offer convenience stores and branded foodservice, in addition to gas and diesel, as well as touchless PDQ Laser wash systems. “While we offer food items in-store as well as stand-alone Tim Hortons, there is no cannibalization of service. Rather, it’s complimentary,” he says, noting that his Tim Hortons franchisee operations are about 75% drive-thru business. Dhahan remarks that he looks to established leaders, such as 7-Eleven Canada as good templates for success in store retailing. “We do regular tours of successful retail sites, such as 7-Eleven, and bring back good ideas like pizza and hot dog programs that get instituted in our locations. We also look to create localized offerings. For example, in Maple Ridge, there are more restaurants near the site and fewer grocery stores, so we sell more packaged

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food and grocery items than you would typically find in a traditional fuel site c-store.” Locations must be refreshed continually to stay relevant in the market, he says. Towards this end, he recently renovated his King George Boulevard location in Surrey. The site, constructed in 2010, now has a newly redesigned forecourt, c-store, car wash and Tim Hortons. Gondolas were added inside the c-store, and shelving received an update. As well, Dhahan instituted a new hot food program with pizza and sausages. “We noticed that fuel customers make planned purchases with some walking into the c-store to buy things that can include food items. At our Tim Hortons locations, customers do not tend to use the gas bar or c-store. Their purchases are ded-

icated. For us, the Tim Hortons business is a good use of space on site that increases our visibility with customers having to drive past our gas, wash and c-store to get to the drive-thru. When these customers need fuel, a car wash or a lottery ticket, they know where to go. They are already regular customers at our Tim Horton’s for morning or afternoon coffee and snacks. Also, it’s a simple matter for customers to use our other services, and they do because we make it convenient for them.” Dhahan partnered with BC Hydro in 2018 to place a fast charger at the Surrey location at 16815 96th Ave. “They came to me and told me there was not enough capacity in our region and asked if they could install a unit on my site. This installation cost me nothing, but I get no payback from the equipment.

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However, people charging cars come into the c-store and the Tim Hortons for the 20 minutes their cars are charging. For us, this means more sales in coffee, donuts and drinks.” Altogether Dhahan says that success has come from being diversified and maintaining an updated curbside image that is clean, efficient and contemporary. “You must have multiple offerings to be successful in this marketplace. This thinking means hot foods and a menu that is responsive to the local demographic. Having a branded foodservice partner also delivers trust to customers that already know and understand the qualities of the menu. And, while there is good money to be made on volume gas sales, real success comes from a diversified package that attracts customers and provides multiple offerings.” OCTANE

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NETWORK, LEARN, DISCOVER The All New Convenience U CARWACS Show - September 28-29 Virtual Event: ConvenienceU.ca The All New Convenience U CARWACS Show is Canada’s largest and best-attended Convenience/Gas/Car Wash trade event. Discover new products, make important contacts and find new business opportunities. Learn from the pros in insightful virtual get-togethers designed to build knowledge and give you the resources to grow your business.

DAY 1 Access critical insights at the Future-Proof Your Business conference, a morning event hosted by Tech Expert, TV/Radio/Podcast Host & Author, Marc Saltzman. You won’t want to miss it! Industry Keynote: “The Evolution Continues” with Norm Hower, 7-Eleven Canada Session: “Future-Proof, Future Profits” with Marc Saltzman Research: “Canada Outlook: Risk and Responsibility” with Margaret McKellar, Kantar Canada The virtual trade show will be open from 9 a.m. to 5 p.m. EST.

DAY 2

Join the Canadian Carwash Association for networking and Chemistry 101 presentation at 9:30 a.m. to 10:30 a.m. (in addition, the virtual Car Wash Tour will be available on-demand). The virtual trade show will be open from 9:00 a.m. to 5 p.m. EST.

What will you discover at this year’s event?

SEPTEMBER / OCTOBER 2021

The Show promises much to see and do in an engaging virtual easy-to-navigate format.

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Carwash Roller Company 3-2390 Wyecroft Rd. Oakville ON L6L 6M8 Canada Phone: 905-825-2881 www.carwashrollerco.com Conveyor roller, conveyor chain, polyurethane and UHMW parts.

SHOW LISTINGS

Coinless 3135 S. Richmond St Salt Lake City UT 84106 United States of America Phone: 801-899-0183 www.coinlessmobile.com Coinless is the ideal mobile point-of-sale, monthly membership, and marketing solution for carwash customers & owners. Embrace change, not coins. ConAgra Brands 5055 Satellite Dr. Mississauga ON L4W 5K7 Canada Phone: 416-679-4200 www.conagrabrands.ca Conagra Brands portfolio includes: Slim Jim Meat Sticks, BiGS Sunflower seeds, Dukes Shorty Sausages, Orville Redenbacher Popcorn

(AS OF PUBLICATION DATE)

Access Cash 4-191 Attwell Drive Toronto ON M9W 5Z2 Canada Phone: 888-289-3939 Fax: 800-449-2331 www.access-cash.com ATM’s, it’s all we do! From Service to Cash loading, find out why Access Cash is the #1 ATM provider in Canada.

BGIS 4175 14th Avenue Markham ON L3R 0J2 Canada Phone: 905-943-4100 www.bgis.com Your single source solution for maintenance and repair services to retail gas stations and private fueling facilities across North America

AIR-serv Canada Inc. 100 Courtland Ave., Concord ON L4K 3T6 Canada Phone: 905-760-1234 Fax: 905-760-1233 www.air-serv.ca AIR-serv is providing tire inflator equipment and services to the retail petroleum industry. We supply, install & maintain at no cost to you.

Brigham Enterprises Inc. 288 Judson St., Unit 1 Toronto ON M8Z 5T6 Canada Phone: 416-762-7278 Fax: 416-762-7270 www.brighampipes.com Brigham Enterprises is the exclusive Canadian distributor of leading National Specialty Tobacco brands such as Backwoods, Phillies Blunt and Gizeh rolling papers.

AM Shelving 18 Progress Avenue Toronto ON M1P 2Y4 Canada Phone: 905-782-6777 www.amshelving.ca AM Shelving is a designer, manufacturer and distributor of store fixtures for C-Store, Gas Bar and specialty retail.

BrokerLink-Lackner McLennan 818 Victoria St. N. Kitchener ON N2B 3C1 Canada Phone: 519-579-4270 Fax: 519-741-8702 www.erb-erb.com Insure Today Secure Tomorrow. Providing Expert Advice and Service to Help Our Clients Grow and Prosper. Integrity - Expertise Commitment

BayWatch Enterprises, LLC 715 S. Jason St. Denver CO 80223 United States of America Phone: 905-716-6191 www.baywatchdoors.com BayWatch Enterprises is North America’s Leading Car Wash Door Manufacturer with Sales, Service and Installation Capabilities. Now Fully Operational in Ontario!

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Bulloch Technologies 6275 Northam Drive, Unit #5 Mississauga ON L4V 1Y8 Canada Phone: 905-678-9818 Fax: 905-678-7076 www.bullochtech.com When dependability counts! For more than 25 years, we have been a leader in the petroleum point-of-sale market. From one to a thousand sites, we can meet your needs.

Canadian Carwash Association 411 Richmond Street East Suite 200 Toronto ON M4M 2C7 Canada Phone: 416-239-0339 ext. 323 https://twitter.com/canadiancarwash https://canadiancarwash.ca/ The Canadian Carwash Association is dedicated to sharing knowledge and best practices, as well as promoting the benefits of professional car washing in Canada. Canadian Distributor Inc. 102-11127 15 St NE Calgary AB T3K 2M4 Canada Phone: 403-398-7737 Fax: 403-398-4392 www.canadiandistributor.ca With 4000+ products including smoking and smoking accessories, electronics, and Nu Trendz Native Design blankets and bed sets to automotive accessories to purses and wallets. Canature WaterGroup 855 Park Street Regina SK S4N 6M1 Canada Phone: 519-465-7927 www.canaturewg.com Canature WaterGroup commercial water treatment systems are suited for a wide range of applications, including Car Washes, Food Service, Hospitals, Schools, Hotels and Office Buildings. Cardtronics 3269 American Drive Mississauga ON L4V 1V4 Canada Phone: 888-414-3733 https://twitter.com/Cardtronics www.cardtronics.ca Cardtronics is Canada’s largest, most capable ATM operator. We combine unmatched global scale with local service and support to provide businesses with outstanding ATM solutions.

COUNTRY STYLE MR. SUB 2 East Beaver Creek Road, Building #1 Richmond Hill ON L4B 2N3 Canada Phone: 905-762-4667 Fax: 905-762-0476 www.countrystyle.com QSR offering freshly ground coffee, baked goods and MR SUB sandwiches. Covered Bridge Potato Chip Company 35 Alwright Court Waterville NB E7P 0A5 Canada Phone: 506-375-2447 Fax: 506-375-2448 @CBchips Covered Bridge Potato Chips produces quality kettle cooked potato chips, kettle popcorn and Lela’s chickpea chips from all natural ingredients and are certified gluten free. CTM Design Services Ltd. 225, 340 Midpark Way SE Calgary AB T2X 1P1 Canada Phone: 403-640-0990 Fax: 403-259-6506 @CTMDesignServ www.ctmdesign.ca CTM Design is one of Canada’s leading full-service firms that specializes in fully integrated design solutions for C-Stores, Gas Stations, QSRs and Car Washes. Danial’s Distribution Inc 7-2370 Meadowvale Blvd Mississauga ON L5N 0H1 Canada Phone: 905-858-0330 www.danialsdistribution.com Nationwide distributor of consumer packaged goods including these categories: health and beauty, cleaning, confectionery, snacks, personal care, medicine, pets, automotive, general merchandise, and more.

SEPTEMBER / OCTOBER 2021

SHOW LISTINGS Dare Foods Ltd 25 Cherry Blossom Road Cambridge ON N3H 4R7 Canada Phone: 519-650-3118 www.realfruit.ca Dare Foods is a Proudly Canadian, family owned company. Our delicious snacks, made from the best ingredients, are Made Better for your family’s changing needs.

Epicton Ltd. (78 Trading) 534 McNicoll Avenue North York ON M2H 2E1 Canada Phone: 437-777-7878 / 437-994-7878 www.78trading.co Epicton Ltd. / 78 Trading is The Premier Wholesaler For Convenience store and Smoking Accessories & General Merchandise Retailers In Canada.

Dover Fueling Solutions - Wayne 40 Sharp Rd. Brighton ON K0K 1H0 Canada Phone: 613-475-3313 Fax: 905-795-7638 https://twitter.com/doverfs www.DoverFuelingSolutions.com Dover Fueling Solutions delivers advanced fuel dispensing equipment, electronic systems and payment, automatic tank gauging and wetstock management solutions to customers worldwide.

EPTA America 7 days Croissant 50 Morton Street East Rutherford NJ 7073 United States of America Phone: 289-455-0611 www.7days.com EPTA America is the exclusive importer of the 7 Days brand of snack food products in the US and Canada

EcoTank Canada 48 Centennial Road, Unit 21 Orangeville ON L9W 3T4 Canada Phone: 226-916-5363 www.ecotankcanada.com EcoTank - an innovative and eco-friendly solution for refilling windshield washer fluid.

Exact One Ltd. 4631 Manitoba Rd SE Calgary AB T2G 4B9 Canada Phone: 403-287-9411 Fax: 403-214-5999 www.exacta.com EMV debit inbay payment systems. Car wash entry and control system specialists.

Fiber Glass Systems 500 Conroe Park West Drive Conroe TX 77303 United States of America Phone: 936-777-6923 www.containmentsolutions.com NOV Fiber Glass Systems is a fuel handling industry leader, providing customers with an all-in-one fiberglass solution including piping, riser pipes, and underground storage tanks. Findoor Industrial Inc 461075, AB-771 Westerose AB T0C 2V0 Canada Phone: 403-680-5667 www.findoor.ca FINDOOR is Canada’s biggest manufacturer of folding doors. We guarantee the highest quality from FINDOOR, designed to withstand use in Canadian working environments. First China Tobacco Company Ltd. 53-55 West Beaver Creek Rd. Richmond Hill ON L4B 1K5 Canada Phone: 905-762-8838 Fax: 905-762-8839 www.tobaccochinese.com Importer & Wholesaler of Tobacco Products. Cigarettes to be displayed: Double Happiness, YunYan, YuXi, HongTaShan, Ashima, Time Smooth + Rich.; Chewing Tobacco

Focus Product 2010 Winston Park Drive, Suite 200 Oakville ON L6H 5R7 Canada Phone: 416-271-7501 www.focus-product.com Exclusive distributor for SNACK-IT is prepared using our high-quality Game Meat (Venison, Bison, Kobe, Duck, Lamb and Turkey) No pork!!! We keep it REAL. Franklin Fueling Systems 3760 Marsh Rd. Madison WI 53718 United States of America Phone: 608-838-5791 Fax: 608-838-6433 www.franklinfueling.com Franklin Fueling Systems offers the world’s most complete line of petroleum equipment including submersible pumping systems, piping and containment systems, service station hardware, dispensing systems, fuel management systems, and transport systems. f’real foods 6121 Hollis St, Suite 500 Emeryville CA 94608 United States of America Phone: 800-483-3218 Fax: 888-317-4041 @therealfreal https://business.freal.com/ Established in 1998, f’real foods designs, sells and markets blended frozen beverages in more than 20,000 locations across the U.S. and Canada.

Canadian leader in point-of-sale software and innovations The perfect BACK-OFFICE solution for your BULLOCH POS Efficiently manage your business in real time

Products

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ELITE 460 Electrical Power Savings Two 30 HP Motors Power Consumption POWER CONSUMPTION 60 HP X 0.746 kWh/HP = 44 kWh UP TIME 12 hr/day X 7 day/wk = 84 hr/wk 84 hr/wk X 52 wk/yr = 4,368 hr/yr

Ten 15 HP Motors Power Consumption POWER CONSUMPTION 150 HP X 0.746 kWh/HP = 112 kWh

CONSUMPTION COST 44 kWh X 4,368 hr/yr = 196,560 kWh/yr 196,560 kWh/yr X $0.11/hr = $21,333/yr

CONSUMPTION COST 112 kWh X 4,368 hr/yr = 489,216 kWh/yr 489,216 kWh/yr X $0.11/hr = $53,766/yr

UP TIME 12 hr/day X 7 day/wk = 84 hr/wk 84 hr/wk X 52 wk/yr = 4,368 hr/yr

ELECTRICAL SAVINGS Convert to (2) 30 HP motors = $32,000 savings Elimination of (8) 15 HP motors installations at $7000/ea. = $56,000 savings Total first year savings $88,000

Increase your profit margin

Savings every year after that $32,000

For more information contact: Tammy Gardner sales dirctor email: tammygardner@protovest.com

623.872.8300 | www.protovest.com

sirsolutions.com

Gray Jay Services Inc. 5131 55 Ave. Eckville AB T0M 0X0 Canada Phone: 587-447-5753 Gray Jay Services repairs washed out manifolds with stainless steel. This a proven repair for over 20 years to save you time and money.

GURU BEVERAGE INC 7236 Waverly Street, #602 Suite Montreal QC H2R 0C2 Canada www.guruenergy.com GURU is the world’s first natural energy drink; the organic choice that delivers good taste and GOOD ENERGY to recharge your mind and body

Great Canadian Meat Company 1390 Hopkins Street Whitby ON L1N 2C3 Canada Phone: 905-666-9395 Fax: 905-666-0224 www.greatcanadianmeat.com We are Canada’s Premier Meat Snack Company that produces tasty, 365 day shelf-stable meat snacks using the finest Canadian Ingredients.

Harrys International Manufacturing Inc. 1070-1055 West Hastings Street Vancouver BC V6E 2E9 Canada Phone: 604-565-5100 http://harrysmfg.com/ HARRYS is pleased to introduce Harrys Special KS. Made in Canada with a select blend of premium grade tobaccos at a preferred price.

Greenergy Fuels Canada 107 Germain Street, Suite 300 Saint John NB E2L 2E9 Canada Phone: 506-632-1650 https://www.greenergy.com/canada-retail Greenergy is an international independent fuel supplier that operates a leading gas and convenience retail network under a portfolio of brands in Canada.

Hi-Sharp Products Inc 69 Baywood Rd, Unit 1 Etobicoke ON M9V 3Y8 Canada Phone: 416-640-2575 www.hisharpproducts.com Tank ZCL, Wayne Pumps, OPW, Nozzles, Pipe, Canopy, Gilbarco, Tokheim

Horse and Buggy Brands 120 Turnbull Court. Unit L Cambridge ON N1T 1H9 Canada Phone: 519-620-8572 Fax: 519-620-8573 orders@horseandbuggybrands.com Local Ontario Peanut Roaster and Candy Packager. 21 Peanut Flavors. Distributor of Golden Bonbon JuJube Nougat Bars and Covered Bridge Potato Chips. OCSA Member.

InfoNet Technology Corporation 202 - 3480 Gilmore Way, Burnaby BC V5G 4Y1 Canada Phone: 604-689-7589 Fax: 604-689-7599 https://twitter.com/InfonetTech1 www.infonet-tech.com POS systems specific to gas stations and convenience stores. Pump control, pay & pump and more.

HQ Fine Foods 12251 William Short Rd Edmonton AB T5B 2B7 Canada Phone: 780-292-0573 https://hqfinefoods.com/ Subs, Burgers, Wedges & Wraps with extended shelf life

Innovative Control Systems 81 Highland Ave., Ste 300 Bethlehem PA 18017 United States of America Phone: 610-881-8000 Fax: 610-881-8100 www.icscarwashsystems.com Innovative Control Systems is defining the world car washing technology; now offering EMV chip/debit hardware and software solutions for all segments: conveyor, in-bay automatics, and self-service.

Husky Corporation 2325 Husky Way Pacific MO 63069 United States of America Phone: 636-825-7200 Fax: 636-825-7300 www.husky.com Nozzles, swivels, Safe-t-breaks, BJE Filter Crushers, Tank Gauges and liquid Level monitors and Alarms.

International Drying Corporation 160 Chicago St Cary IL 60013-2948 United States of America Phone: 815-477-4911 Fax: 815-477-7445 https://twitter.com/CwDryers www.internationaldrying.com We design and manufacture a complete line of Car Wash Drying Systems to fit any footprint.

SHOW LISTINGS Istobal 1045 Page St. Bristol VA 24201 United States of America Phone: 800-336-8795 https://twitter.com/istobal_corp https://us.istobal.com/usa/ Since 1950 ISTOBAL has harnessed innovation and technology to provide superior products and services to both the truck and car wash sectors. JTI-Macdonald 1 Robert Speck Parkway, Suite 1601 Mississauga ON L4Z 0A2 Canada Phone: 1-800-363-0490 www.jti.com JTI-Macdonald Corp. is a part of JTI (Japan Tobacco International), a leading international tobacco company. Primary brands in Canada include Export A, Macdonald, LD, Camel, Winston and American Spirit. Laser Bonding Tech Inc. (Bondic) 18-235 Industrial Parkway S Aurora ON L4G 3V5 Canada Phone: 905-713-6514 @officialbondic www.notaglue.com Fix virtually anything in just 4 seconds with the most innovative DIY tool in 100 years!

Mark VII Equipment 623 South Service Road Unit 1 Grimsby ON L3M 4E8 Canada Phone: 289-235-8325 www.markvii.net As the North America subsidiary of WashTec, the market leader in carwash technology, Mark VII Equipment. supplies carwash systems, chemicals, and service for every need. Mars Wrigley Confectionery 3389 Steeles Ave East, Suite 402 Toronto ON M2H 3S8 Canada Phone: 905-857-5700 www.mars.com Mars is a global, family-owned business that produces some of the world’s bestloved brands including EXCEL®, M&M’s®, MARS®, SNICKERS®, TWIX®, SKITTLES®, STARBURST®, and 5™. Marsham International Food Brokers 35 Romina Drive Concord ON L4K 4V9 Canada Phone: 905-881-4762 www.marsham.ca Marsham International is a family owned National natural and organic food broker delivering on a brands heritage throughout the BFY category in all channels.

McCowan Design & Manufacturing 1760 Birchmount Rd. Toronto ON M1P 2H7 Canada Phone: 416-291-7111 Fax: 416-291-0180 www.mccowan.ca McCowan Design & Manufacturing is Canada’s leading supplier of c-store/gas bar food service counters & accessories, cash counters, gondolas & shelving, forecourt merchandisers, security cabinets, tobacco, cannabis & vape displays, waste units & signage. MI Petro Construction & Supply Inc. 4330 - 116th Ave SE Calgary AB T2Z 3Z9 Canada Phone: 403-589-3121 Fax: 403-252-7258 www.mipetrogroup.com Building a New Site? Upgrading your current site? Need new equipment? MI Petro can provide you a proposal for your project of any size! Mini Melts of Canada #1 - 1313 44 Avenue NE Calgary AB T2E 6L5 Canada Phone: 403-537-1045 Fax: 403-277-5664 https://twitter.com/minimeltscanada www.minimelts.ca Mini Melts is a unique premium ice cream treat! Our ice cream comes in small kernels and you eat it with a spoon!

Mondelez Canada Inc. 3300 Bloor Street West, Suite 1801 Toronto ON M8X 2X2 Canada Phone: 647-243-5400 www.mondelezinternational.com Mondelez International is well represented in Canada across snacking categories with our many brands, including: Cadbury Dairy Milk, Caramilk, Toblerone, Maynards, Halls, belVita, OREO, Chips Ahoy!, Peek Freans, Dad’s, Ritz, Triscuit, Wheat Thins, Good Thins, Premium Plus, Crispers, Bits & Bites, Trident, Dentyne and Stride. Mondo Products Co. Ltd. 695 Westney Road S, Unit 1 Ajax ON L1S 6M9 Canada Phone: 905-426-9339 Fax: 905-426-5240 www.mondo-products.com Mondo Products is a Canadian owned company that manufactures and markets cleaner, equipment and technology to service the carwash industry. MONEXgroup 5075 Yonge St. Suite 301 Toronto ON M2N 6C6 Canada Phone: 866-286-7787 Fax: 866-573-8179 @monexgroup www.MONEXgroup.com We will be showcasing MONEXgroup’s innovative unattended “TAP & WASH” payment system, along with our other payment processing solutions, including: countertop, wireless and E-commerce.

IS YOUR WATER SOFTENER SENDING MONEY DOWN THE DRAIN?

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National Smokeless Tobacco Company 16720 Trans-Canada Highway, Suite 209 Kirkland QC H9H 5M3 Canada Phone: 519-497-0654 www.nstco.ca NSTC distributes the two top-selling brands of smokeless tobacco in Canada, Copenhagen and Skoal. NSTC continues to offer products that align with evolving adult preferences.

Novyc International 2294 ch. St. Francois Dorval QC H9P 1K2 Canada Phone: 514-683-0300 Fax: 514-683-0068 www.novyc.com Novyc International has been providing high quality price systems to Major Petrol companies around the world since 1985 . Contact us to see how you can benefit from our offer.

Nayax Executive Plaza 1, 11350 McCormick Road Hunt Valley MD 21031 United States of America Phone: 410-666-3800 https://twitter.com/NayaxGlobal www.nayax.com Nayax - a cashless payment & management solution provider. Accepting credit/debit and mobile payments, Interac, EMV-certified. 4G/LTE compliant. Consumer engagement & loyalty platform.

Now Prepay 365 Evans Ave., Suite #301 Toronto ON M8Z 1K2 Canada Phone: 1-844-220-2111 @paymentsourceca www.nowprepay.ca Known for product quality and speed of service, we offer prepaid, mobile top-ups, delivery services and financial solutions to more than 15,000 retailers across Canada.

NORBEC 97 rue de vaudreuil Boucherville QC J4B 1K7 Canada Phone: 450-449-1499 Fax: 450-641-4657 www.norbec.com Norbec is a North American leader in manufacturing both prefabricated walk-in coolers & freezers and doors as well as architectural insulated metal panels for building envelopes.

Nuform Building Technologies Inc. 100 Galcat Drive, Unit 2 Woodbridge ON L4L 0B9 Canada Phone: 905-652-0001 Fax: 905-652-0002 www.nuformdirect.com Nuform Building Technology Inc specializes in PVC building materials which focus on improving construction efficiency + premiere finishing while being cost effective. Come visit us to see our CONFORM RELINE + RENU PRODUCTS.

Oasis Car Wash Systems 1909 E. 12th St. Galena KS 66739 United States of America Phone: 620-783-1355 Fax: 620-783-5735 www.oasiscarwashsystems.com Complete Line of Touch Free and Soft Touch InBay Automatics. Learn about our “My Wash Buy Up” technology Ontario Lottery & Gaming Corporation 4120 Yonge Street Toronto ON M2P 2B8 Canada Phone: 1-800-387-0104 www.olg.ca Remember to follow OLG’s ID25 policy guidelines before selling and validating OLG products, or redeeming OLG coupons. Receiving verbal confirmation of a person’s age is not enough. Always ask for and check ID from anyone who looks to be under the age of 25. OPW 9393 Princeton-Glendale Road Hamilton OH 45011 United States of America Phone: 513-870-3134 Fax: 800-421-3297 www.opwglobal.com For 125 years, OPW has led the way designing and manufacturing world-class retail fueling, fluid handling and car wash system solutions for the safe and efficient handling and distribution of fuels and critical fluids. To learn more about OPW’s 125 years of providing industry-leading solutions, visit our booth or see our website above.

PDQ Manufacturing Inc. 1698 Scheuring Road De Pere WI 54115 United States of America Phone: 412-260-1072 Fax: 920-983-8330 www.pdqinc.com PDQ Manufacturing is recognized as the technological leader in vehicle wash systems, providing superior quality, outstanding support, and products that contribute to our customer’s profitability. PECO Car Wash Systems 244 Rex Blvd. Auburn Hills MI 48326 United States of America Phone: 248-299-5800 Fax: 248-299-9001 www.pecocarwash.com PECO Car Wash Systems manufactures premium carwash systems customized to meet your needs. PECO has gained the reputation for providing high quality systems at a competitive price. By building equipment stronger, smarter and more dependable PECO Car Wash Systems is the most HELPFUL brand in carwashing! Pizza Forno 225 King Street East Toronto ON M5A 1J9 Canada Phone: 416-708-9341 @thepizzaforno www.pizzaforno.com PizzaForno is North America’s leading 24/7 automated pizzeria, serving hot and delicious pizza, ready in under 3 minutes.

Water Reclaim System

ERS RECLAIM

Easy Reclaim System ● Includes Proven Odor Control ● UL Listed Control Panel ● Easy Retro Fit Applications ● Cost Effective Solutions

ERS 100

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DIMENSIONS: 48”W x 30”D x 66”H ERS MODELS ERS-50: 50 GPM ERS-100: 100 GPM ERS-150: 150 GPM

A leader in water treatment solutions for over 40 years, SOBRITE® uses the latest technology to design and manufacture water reclaim systems, spot-free water units, water softeners, and proven odor control systems.

“Our success is founded in our commitment to quality and pride of craftsmanship.” SoBrite@SoBrite.com ● www.SoBrite.com ● 800-762-7483

SHOW LISTINGS Pro Line Sports Ltd 14 Water Street PO:670 Windsor NS B0N 2T0 Canada Phone: 902-407-3001 Fax: 902-407-3404 https://prolinesports.ca/ A one stop solution for your General Merchandise, PLS provides cutting edge retail concepts ensuring our clients are always category leaders.

Scholtens Inc. 279 Sumach Dr. Burlington ON L7T 0B5 Canada Phone: 905-631-2999 Fax: 905-631-3222 www.scholtensinc.com Cottage Country, available from Scholtens Inc., is Canada’s premium brand for the widest assortment of best- selling, every-day candies, nuts and trail mixes, all in one convenient program!

Promperu Canada 372 Bay St., Suite 402 Toronto ON M5H 2W9 Canada Phone: 416-963-5561 https://twitter.com/promperucanada www.PromperuCanada.com Peru, dedicated to the world. We are your source of Peruvian products in Canada. Healthy, natural snacks, ready-to-eat products from our distribution centre in Ontario.

SIR Solutions Inc. 3565 Jarry East, Suite 650 Montreal QC H1Z 4K6 Canada Phone: 514-593-4760 Fax: 514-593-4810 SIR Solutions is a Canadian leader in pointof-sale software and integrated innovations for more than 25 years.

PUDO Inc. 6600 Goreway Drive Unit D Mississauga ON L4V 1S6 Canada Phone: 1-844-300-8533 www.pudopoint.com An open Network of parcel pick-up and dropoff Counter Locations that stretches across North America that welcomes e-comm parcels coming in, going out, and returning PurClean 3315 Orange Grove Ave, Suite 230 North Highlands CA 95660 United States of America Phone: 651-251-7044 https://twitter.com/PurClean1 www.purclean.com Developing and delivering innovative water treatment solutions for the car wash industry since 1983, we are committed to engineering products that set the industry standard. Pure Hemp/Smoking Brands Papers & Pre-Roll Cones 3226 Wharton Way Mississauga ON L4X 2C1 Canada Phone: 416-535-3497 www.purehemp.com We recently launched Pure Hemp Unbleached Cones in bulk and Smoking cones in consumer packs, these are next level of pre-roll cones!! RapidGaz Inc. 241, rue St-Charles Sud Granby QC J2G 7A7 Canada Phone: 613-791-1801 www.rapidgaz.net National propane cylinder supplier. Rapidgaz is a leader in the industry and offers 20lb, 30lb and 1lb camping cylinder exchange programs.

Soapy Brushy 11 Sydenham Street Dundas ON L9H 2T5 Canada Phone: 905-616-6115 www.soapybrushy.com Strategy for wash operators. From concept to feasibility to site acquisition to design to construction to marketing to operations. Making profits shine for 20 years. SoBrite Technologies 809 W. Center St. Eureka IL 61530 United States of America Phone: 309-467-2335 Fax: 309-467-2539 www.sobrite.com SoBrite Technologies designs and manufactures water reclaim systems spot- free water units, water softeners, and proven car wash reclaim odor control systems. SRP Canada 60 Leek Crescent, Unit 2 Richmond Hill ON L4B 1H1 Canada Phone: 1-800-387-3323 www.srpcompanies.com SRP is Canada’s premier designer, manufacturer and distributor of impulse selling General Merchandise products to the C&G Channel with over 85,000 DSD calls performed annually! STI Conveyor Systems 41 Saunders Road Barrie ON L4N 9A7 Canada Phone: 705-728-4868 www.sticonveyor.com STI Conveyor Systems provides the highest quality, longest lasting belt conveyors available on the market today.

Relx International Suite 603, 6/F, Laws Commercial Plaza, 788 Cheung Sha Wan Road Kowloon, Hong Kong https://ca.relxnow.com/ World’s Leading Independent E-cigarette Brand. RELX branded products are designed at a cutting edge research and development center, and produced in the world’s largest e-cigarette factory.

SEPTEMBER / OCTOBER 2021

STLTH Vape 60 Minuk Acres Scarborough ON M1E 4Y6 Canada Phone: 416-580-5865 www.stlthvape.com STLTH VAPE- STLTH is the largest independent vaping company in Canada and a leader in the revolution against combustible cigarettes. STLTH manufactures and distributes a closed pod system and all pod cartridges are filled and processed at their Toronto Facility. STLTH is proud to offer a competitive product that is made in Canada to the market. Tank Traders 54 Rue Principal, PO Box 190 La Salle MB R0G 0A2 Canada Phone: 866-553-2131 Fax: 866-553-2130 www.tanktraders.com Tank Traders supplies a national network of retailers with propane tank exchange program. Consumers exchange their empty cylinders with pre-filled replacement. TELUS 25 York St. Toronto ON M5J 2V5 Canada Phone: 416-895-1749 www.telus.com/business TELUS is Canada’s most innovative communications company, committed to leveraging our world-leading technology to enable remarkable human outcomes in our all-connected world. TFI Food Equipment Solutions 52 Armthorpe Road Brampton ON L6T 5M4 Canada Phone: 905-790-2211 https://www.twitter.com/tficanada www.tficanada.com TFI has a clear focus on providing premium and supportive food equipment solutions so customers are able to provide “The Perfect Serving” every time Tommy’s Express/ Tommy Car Wash Systems 581 Ottawa Ave., Suite 300 Holland MI 49423 United States of America Phone: 616-834-0535 www.tommys-express.com Tommy Car Wash Systems has a 50-year history of bringing industry-changing innovations to market through a process of development, testing, and success in their corporate-owned operations. Top Star Hitech Ltd #111, 3825 34 Street NE Calgary AB T1Y 6Z8 Canada Phone: 403-608-5051 www.topstarhitech.com Mobile phone accessories and gadgets Transchem Inc. 1225 Franklin Blvd. Cambridge ON N1R 7E5 Canada Phone: 519-740-0150 Fax: 519-740-2008 www.transchem.com Transchem Group is a leader in providing car wash solutions. Specializing in chemical development, powerful equipment, innovative technology, and effective customer support options.

Vale Republic Ltd. 362-104-1920 Ellesmere Rd. Toronto ON M1H 3G1 Canada Phone: 877-401-VALE (877-401-8253) Fax: 289-728-0686 www.valerepublic.ca Vale Republic Ltd. offers premium tobacco imported from the Caribbean. Our goal is to provide quality cigar products at affordable pricing for the consumer. Waleco Inc. 5611 McAdam Road Mississauga ON L4Z 1N4 Canada Phone: 905-712-4915 Fax: 905-712-2156 www.waleco.ca Waleco Inc. is a value added petroleum equipment supplier with fully stocked locations in Mississauga and Montreal. Wash Tech 190 Southgate Dr. Guelph ON N1G 4P5 Canada Phone: 519-824-5434 Fax: 519-824-4493 www.wash-tech.ca Distribution, Sales, Service, & installation for Oasis CWS, Istobal, Motor City Wash Works WashLinks/Sonny’s the Car Wash Factory 655 Queensway East Mississauga ON L5A 3X6 Canada Phone: 647-463-4425 Fax: 905-273-7271 www.washlinks.ca Washlinks proudly sell and service Sonny’s Conveyorized Car Wash Equipment. Wiz-Tec Computing Technologies Inc. 4501 Manitoba Rd. SE Calgary AB T2G 4B9 Canada Phone: 403-250-8660 Fax: 403-476-8935 www.wiz-tec.ca Canadian Point of Sale & Payment Solutions for fuel retail, cardlock, car wash, and First Nations tax exemptions. Yummy Doh 6060 Boul. Métropolitain #200 Saint-Léonard QC H1S 1A9 Canada Phone: 514-961-0714 Raw Vegan Edible Cookie Dough. Yummy Doh is the very first raw, vegan edible cookie dough featuring natural vegan ingredients Zep Vehicle Care 2930 Waters Road, Suite 230 Eagan MN 55121 United States of America Phone: 651-485-4281 Fax: 404-937-2732 www.zepvehiclecare.com Zep Vehicle Care takes an innovative approach to our products and programs, all with the intent to maximize the ROI of your car wash.

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