The expo may not have been open, but the first day of the 2024 NACS Show delivered in stellar fashion. The education sessions covering labor, pricing, remodeling, foodservice and other industry topics stole the afternoon — as did the Dr. Pepper-flavored beef sticks available for snacking during the breaks.
It’s impossible to see everything, but here’s what caught my attention on Day 1 of the c-store industry’s biggest annual event.
The same old problems — but much more expensive
One of the first education sessions at this year’s NACS Show was the association’s annual breakdown of industry data. The presenter, Chris Rapanick, managing director of NACS Research, took a fascinating approach by comparing this year’s data to 2009 — the year he joined NACS.
Rapanick noted that over the past 15 years, convenience retailers have more or less faced the same challenges, such as the tight labor market, credit card fees and fluctuating fuel margins. The challenges haven’t changed, but they have become significantly more expensive, he noted.
Case in point: In 2009, NACS estimated that c-store credit card fees totaled about $7.4 billion. In 2023, that number reached $19.7 billion, Rapanick said.
“Increase in expenses in 2024 is probably twice what it was in 2009,” he said.
Small operators face remodel and new-build challenges, too
Major c-store players such as Casey’s General Stores, Circle K and Murphy USA frequently update the industry on the challenges they face when remodeling and building new stores, including permitting issues and construction delays.
While smaller operators encounter these challenges too, they naturally have fewer resources at hand, and their challenges differ when undertaking these projects.
Curby’s Express Market, a three-store chain based in Lubbock, Texas, is all-in on new builds. The company’s food-focused c-store model — which features a drive-thru and a QSR inside the store — brings numerous challenges when under construction. Beyond securing financing and seeking prime real estate, Curby’s has to navigatetechnology and infrastructure, operational expenses, customer expectations, brand recognition and competition from larger chains, Richard Cashion, COO of Curby’s, said during a presentation.
Small c-store operators facing these challenges can overcome them in several ways, Cashion noted. Companies can consider leveraging franchising opportunities, joining buying groups to negotiate better pricing, and implementing affordable tech, such as mobile payment systems, Cashion said.
“Use a lot of your power to be an advocate for your own stores,” he said.
Recognizing disengaged employees is key to retention
It’s no secret that convenience store employees are feeling burnt out in today’s market and are generally dissatisfied with working in a c-store. With turnover at the store level a constant problem for the c-store industry, how can leadership recognize this disengagement and retain their workers?
The first step is recognizing that disengagement, Bob Huebner, founder and president of leadership consultancy 200Mark, said during a presentation. Clues can take many forms, such as dips in performance, tardiness or not showing up for shifts, making careless mistakes and withdrawing from other team members.
“These are all things we need to watch for as we get a pulse on our workers,” Huebner said.
Spinx, which operates about 80 convenience stores across the Carolinas, began that process when it released an employee survey in 2017 asking what the company was and wasn’t doing well, said Amber Millwood, the company’s training and development manager.
While some of those responses “weren’t easy to swallow,” the survey resulted in Spinx implementing several employee initiatives that still run today. One is a quarterly newsletter Spinx’s executives send to every employee detailing its financial performance. This aims to keep everyone informed, Milwood said.
“If we aren’t being successful, everybody needs to know that,” Milwood said.
Poor management means more turnover
Poor management is one of the main reasons people leave their jobs, Huebner noted in his second presentation of the day.
He shared data from talent optimization firm The Predictive Index showing that 63% of workers with “bad” managers consider leaving their jobs within a year, while 70% of that employee’s team members said they were also thinking of leaving.
This makes keeping and developing quality managers essential, he said. But doing so starts from the top, as leadership must set a manager’s standards for accountability, communication and how to lead in different situations, Hueber said.
In convenience stores, the top qualities of a good manager are making employees feel safe, good communication, making employees feel valued and offering a predictable schedule, according to a c-store survey that Hueber presented.
“A trusted leader — this is a person who knows the business but knows how to get things done with other people,” he said.
The sour truth: Better-for-you candy is struggling
Better-for-you candies have come onto the scene in recent years. Often low in sugar or using sugar alternatives, they present a healthier option than a traditional treat.
More than half of consumers believe these products’ marketing. Specifically, 53% said they agree that better-for-you candies exist, Elise Fennig, chief of staff and senior vice president of operations for the National Confectioners Association, said during a presentation. Most consumers who buy these products do so to maintain or lose weight, while others do so to manage their sugar intake or prevent certain medical conditions, she said.
But there’s one problem: Only 10% of the total population is buying better-for-you candies, Fennig said. She suggests c-store retailers considering these products be conscious of this and set their product assortments accordingly
