Link to story on Destination Marketing Organization (DMO) budgets for Connect Magazine

http://www.connectyourmeetings.com/feature/dmos-where-the-money-goes-now/

Best of work from two years with OPIS newsletter Oil Express, 2012-2013 UPDATE: OPIS says I cannot show full articles; please contact me for full versions

Monday, May 28, 2012 12:01:00 AM SHOP TALK: MAVERIK PIONEERS DIGITAL WALLET It's not surprising that a c-store chain that goes by the name "Adventure's First Stop" and calls its customer loyalty program the "Adventure Club" would be an early adopter of new technology. Maverik Inc., a 238-store chain in 10 western states, will soon participate in a pilot of the digital wallet with Isis, a mobile commerce venture created by wireless carriers AT&T Mobility, T-Mobile USA and Verizon Wireless and supported by major banks and credit card companies. The test is taking place this summer in Austin, Texas, and Salt Lake City, Utah, through a variety of merchants. The Isis system will operate through widely accepted payment systems from vendors such as VeriFone, Ingenico, ViVOTech and Equinox. Some 80 Salt Lake City Maverik stores will start accepting payments from smartphones equipped with near field communication (NFC) technology and a mobile application from Isis. Oil Express spoke with Ernie Harker, Maverik's executive director of marketing........ Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, May 14, 2012 12:01:00 AM WHY THE HISPANIC CUSTOMER IS YOUR NEW BEST FRIEND Hispanics are some of the convenience store's best customers. Research firm Technomic Inc. found the heaviest c-store users are Hispanic men ages 18 to 25 making less than $25,000 annually. And a recent Pepsico study also listed Hispanics - particularly young men - among three key shopper segments that dominate the c-store channel. But this population was hit hard by the recession and as a result they are shopping c-stores less frequently, experts say. Store operators need to woo them to get them to shop more often. The U.S. Hispanic population has seen spectacular growth and will continue to do so into the next half century. The group has $1 trillion spending power, says research firm Nielsen in a report released last month, "State of the Hispanic Consumer: The Hispanic Market Imperative." Experts offer the following guidelines: -- Stock Hispanic brand products. Ethnic products - much of them Hispanic - grew at twice the overall sales rate for other products in the first quarter of 2012, says Chris Hobson, vice president of marketing for San Francisco-based distributor Core-Mark International. Core-Mark offers several strategies for selling to Hispanics, from making available 300 SKUs of Hispanic-brand inventory, including fresh foods, to customized planograms and point-of- purchase displays for retailers with a large Hispanic customer base...... Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, April 23, 2012 12:01:00 AM FOR PROFIT: SPIRIT BRAND OFFERS LOW-COST ALTERNATIVE Spirit Petroleum, the independent brand owned by the Petroleum Marketers Association of America (PMAA) has survived initial doubts from the PMAA board and the vagaries of the downstream petroleum industry to reach its 10th anniversary this year. It's a low-cost alternative to major oil brands for PMAA members, born out of fear that when the major oil companies indulged in merger activity in the late 1990s, PMAA members would be without a brand. Either one of the merging brands would be discontinued, or some jobbers would not be able to meet new and more difficult standards imposed by the survivor. Those fears weren't all realized. But the low start-up and re-imaging costs of Spirit have attracted enough converts to its clean look and lower-price fuel. Though it was launched with just $20,000, Spirit now has 85 licensees in 35 states, adding Utah earlier this month. In some cases, the brand has helped raise volume enough to coax a major brand to offer a rebranding package. "We lost 14 stations at one time in one state, and I said, 'That's great,'" says Spirit President Vera Haskins. "Somebody came along and offered them a deal they couldn't pass up, and that's what we're all about."...... Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, April 16, 2012 12:01:00 AM SHOP TALK: HOW SOCIAL MEDIA CAN GIVE YOU AN EDGE The statistics on social media are staggering: 30 billion pieces of content are shared on Facebook every month; $3.08 billion was spent to advertise on social networking sites in 2011, a 55% increase over 2010; 53% of people on Twitter recommended companies or their products in their tweets. But knowing social media's potential is not the same as knowing how to use it. For two years, Jon Bausman was the director of media and brand development for Anderson, Ind.-based Ricker Oil, a BP dealer with 50 stores. Bausman, who now works with Fusion Alliance, an Indianapolis-based technology consultancy, shared his insight on social media. What are some ways to use social media effectively? There's a social medium called Foursquare that is location-based. Someone can go "check in" to a location, whether that's Dunkin' Donuts or a movie theater or a convenience store. You can offer rewards for checking in. One of the big challenges convenience stores face is getting people from the pump inside the store. When a consumer is outside filling up their gas tank, there's nothing really for them to do. So if you advertise about checking in on Foursquare to get specials, they may check in. If you offer an incentive like we did at Ricker's - purchase 10 gallons of gas or more and get a free fountain drink - they may come in the store. Then you have the opportunity to suggest a sale and bundle as well. If your software is set up correctly, you could actually track a code for the Foursquare check-in special and see if anything else was purchased....... Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, April 02, 2012 12:01:00 AM VIDEO MARKETING STILL PACKS A JOLT On Thorntons Inc.'s YouTube channel, via an icon on the chain's website, a lady in a Thorntons uniform makes viewers yearn for a flavored coffee by demonstrating how to mix just the right ratio. Visitors to the Thorntons website click on the Make UR Mix icon and then the icon for Alpine Mint to watch a 1:09 video demo. First, some exclusive York Peppermint Patty from the cappuccino machine, then some coffee, then some whip cream and white chocolate sauce. With all that's possible using Facebook, smartphones, Twitter and various group coupon applications like Foursquare and Groupon, a website video is still one of the easiest, cheapest ways to market if you follow a few rules, consultants say. All that's necessary is a camera and the time it takes to write a script, shoot the video, edit and upload it. The quality of the cameras in today's Androids and iPhones is sufficient for the shoot, and there are many ways to edit and add flair using free software available for download. YouTube also offers several free features like graphics for introductions and titles once a video is uploaded. There are also vendors who will edit and spruce up a video once it is shot. YouTube consultant Matt Koval says the biggest drawback is that video's impact is hard to measure. "There are no hard and fast rules to show a clear ROI," says Koval. "Some campaigns are hugely viral and successful. But other campaigns, most campaigns, fail miserably. It's the companies that put massive amounts of money into their videos that will feel the pain."....... Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, March 19, 2012 12:01:00 AM RADIO PROGRAM PUMPS UP SALES It's not flashy - heck, there are no visuals at all - but customized radio programs at the pump seem to be effective in many ways. Jerry Johnson's Gas and Go Radio provides convenience store operators with 30-minute, tailor-made recordings and the equipment needed to play them. For a monthly fee, operators send Johnson up to 10 items to promote - from products to community events or local business advertising - and he records them and sends the program digitally to be downloaded on a flash drive. The flash drive is plugged into the flash drive player/amplifier he supplies. The equipment is free with the advertising program. Retailers pay for installation of the player and speakers under the fuel canopy. Usually four to six speakers are necessary. Installation runs $250- $500, depending on local electrician rates; less if there is a maintenance person on staff who can do the work. Once installation is finished, retailers pay a monthly rate of $59, $79, $99 or $139. The rates vary depending on how frequently the message is updated, says Johnson, who was a radio broadcaster for more than 20 years. The low rate is for a quarterly update, the highest rate is for changing the program every month........ Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, March 19, 2012 12:01:00 AM SHOP TALK: CERTIFICATION LEEDS TO SAVINGS Many marketers are building "green" gas stations to make their properties more efficient and environmentally friendly. Some are taking an extra step and certifying that their real estate is good for the planet. The procedure is called Leadership in Energy and Environmental Design (LEED) certification, and it involves getting approval from the U.S. Green Building Council, a nonprofit trade organization that promotes sustainability in how buildings are designed, built and operated. Certified buildings can qualify for tax credits from federal and state governments as well as energy credits from utilities. LaCrosse, Wis.-based Kwik Trip boasts 15 LEED-certified stores, with 24 in the process, and industry stalwarts Kum & Go of West Des Moines, Iowa, and Pittsburgh, Pa.-based Giant Eagle's Get Go also have LEED-certified stores. A company doesn't have to be an industry giant to pursue LEED certification. In February, Wadsworth Oil of Clanton, Ala., earned LEED certification for one of its nine stores. It is the first LEED-certified convenience store in Alabama. Oil Express interviewed Brittany Eldredge, director of operations for Lorax Partnerships, a consulting firm with expertise in green construction. Lorax helped Baltimore-based convenience store chain Royal Farms qualify for LEED........ Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, February 27, 2012 12:01:00 AM SPORTS MARKETING: PLAYING BY THE RULES In 2001, the National Collegiate Athletic Association (NCAA) sued Coors Brewing Co. for using Final Four tickets in a promotional giveaway without permission. The problem? The use of the terms associated with the NCAA basketball tournament, as well as promotions piggybacking on these games, requires a license. The backs of tickets also state that the tickets are not to be used in promotions unless permission to do so is granted by the NCAA. Terms such as "March Madness" and "Super Bowl" are closely guarded trade names. Sponsors pay big bucks to be licensed to use them. And companies unwilling to pay the price can get sued. C-stores tackling sports marketing need to learn to play by the rules. In the days before the Feb. 5 Super Bowl, for example, Jmart of Stockton, Kansas, got a warning from one of its food service vendors, a turnkey operation that J-Mart has in all four stores. The notice said to avoid using "Super Bowl" in promotions. "This phrase is owned by the NFL and they grant exclusive rights to its usage," the vendor explained. "They patrol and enforce their trademarks very heavily."........ Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, February 20, 2012 12:01:00 AM 3 ADA TROUBLE SPOTS THAT CAN GET YOU SUED In 2010, QuikTrip paid a $55,000 penalty and $1.5 million in restitution to settle a federal Department of Justice (DOJ) suit alleging multiple violations of the Americans with Disabilities Act (ADA). The company denied wrongdoing and says its nearly 600 stores will be fully compliant by 2013. But the crackdown on an industry leader was a wake-up call prompting the National Association of Convenience Stores (NACS) to develop training and consulting services for its members. NACS has partnered with a consulting firm, The McIntosh Group, of Tulsa, to help members with ADA compliance as an important date looms. The DOJ added standards to ADA in 2010, and compliance with those additional requirements - 521 of which apply to gas stations and convenience stores - begins March 15, 2012. Brad Gaskins, a partner with McIntosh, says there's no need to panic, but operators should have a plan to correct violations before either private lawsuits or the DOJ arrive. "An owner has to understand where deficiencies are, then develop a plan of how they're going to correct those items the next one, three, five years," says Gaskins. "You want to do this on your terms as opposed to waiting for a lawsuit."........ Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, February 13, 2012 12:01:00 AM 10 WAYS FLAVORS SPICE UP COFFEE BUSINESS Steve Salveggio, director of operations and buyer for 24-store Hendel's Inc., of Waterford, Conn., says 32% of his overall coffee sales come from flavored varieties like French vanilla and hazelnut and monthly specials on flavors such as pumpkin spice and blueberry. The profit margin on flavored coffee drops to 50%, down from 60% on regular coffee, but Salveggio says of flavors you've "got to have them." Not every retailer will sell that much, but many believe coffee flavors such as French vanilla, hazelnut, chocolate macadamia nut, and pumpkin spice are essential to c-store coffee programs. Popularity varies by region, but if flavors make up 15% of a store's total coffee business, experts say they should remain on the menu. For some operators flavors are 40% of their business. In its 2011 National Coffee Drinking Trends Study, the National Coffee Association found 85% of respondents drank regular coffee, while 18% drank flavored varieties. Some drank both....... Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, January 30, 2012 12:01:00 AM 4 WAYS TO CRASH THOSE SUPER BOWL PARTIES Fans will soon be picking up snacks for their Feb. 5 Super Bowl parties. How do you seize a bigger share of the snack business? *Promote specials on large quantities, says retail consultant John Matthews, CEO of Gray Cat Enterprises, and former executive with Jimmy John's, White Hen Pantry and Little Caesar's. Little Caesar's Super Bowl-related sales, whether on game-day or pre-orders, were solid, he says. But sales took off when the pizza chain began promoting special large-quantity pricing. For example: 10 large, 1-item pizzas for $49.95. *Reach out to existing customers. A recent survey showed 80% of shoppers will head to supermarkets for Super Bowl munchies. You're more likely to be top of mind with your existing customer base. Promote Super Bowl deals with flyers on pizza or other food items, pump-toppers and in-store signage...... Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, January 30, 2012 12:01:00 AM C-STORES MAKE PLAY FOR GAME DAY SNACK BUSINESS Savvy c-store operators, who in previous years saw an uptick especially in beer and salty snack sales Super Bowl weekend, are again offering deals to satisfy fans' cravings. Matt Paduano, vice president of category management at Nice n Easy Grocery Shoppes, Canastota, N.Y., says that in the week before last year's Super Bowl, beer sales jumped 13%, salty snacks increased 11.7%, and food service sales rose 13.6%. Paduano says non-alcoholic beverage sales showed a negligible bump. The 80-store chain used couponing and box toppers the week before the game, as well as game-day specials. This year the Nice n Easy's Easy Street Eatery is advertising a game-day pizza deal: two large two-topping pizzas for $18.99, a discount of $5. Pat Zelechoski, buyer and category manager for 33-store NOCO Express of Tonawanda, N.Y., saw similar increases in the same categories - beer up 12.9%, salty snacks up 15.3%, cigarettes up 7.2%. NOCO also saw a 5.6% hike in sales of non-alcoholic beverages. This year her stores will have Budweiser displays with coupons for Frito-Lay snacks on the display, since Budweiser is advertising its new Bud Platinum Light during the game. They'll also promote Pepsi's Super Bowl specials on six- packs at two for $5 and on 2-liter bottles, two 2-liter bottles of Pepsi for $2.22...... Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, January 23, 2012 12:01:00 AM TOP 3 REGS THAT COST YOU TRUCKERS Since 2010, three major changes have affected or will affect commercial drivers and their employers: the hours of service rules, a ban on hand-held mobile telephones and the Compliance, Safety and Accountability program. Here's a summary of what those rules mean to you: 1. Hours of Service. Driving time is reduced and rest breaks are mandated. Violations of more than three hours over the limit can result in a $2,700 fine for the driver and $11,000 for the carrier. Drivers can now drive 10 hours of a 14-hour day, down from 11; they can only be on duty for 13 hours of the 14-hour day, or a 16-hour day, which they can choose twice in any seven-day period. "The drivers aren't going to be able to make any time," says Tom White, safety director for White Brothers Trucking of Wasco, Ill...... Joseph Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, January 16, 2012 12:01:00 AM NO HOODS, NO HOODLUMS? After a series of local robberies, two Beaumont, Texas, c-stores with different owners started asking customers to remove their hats or hoods before entering. One of the stores posted signs to help enforce the hats-off policy. The employees thought it would discourage crime and make robbers easier to identify. Now, however, the signs are down at one store. At the other, the store's owner has allowed the policy to continue as an option for employees nervous about robberies. Steinhagen Oil of Beaumont says it is okay for employees at its Shell station on Major Drive to ask customers to remove their headgear as long as they're polite about it, says Steve Manders, director of operations for the 25- store chain. In fact, Manders says that's an option for employees at all of the Steinhagen stores. But competitor C.L. Thomas, which owns and operates Speedy Stop stores, is against the policy..... Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, January 09, 2012 12:01:00 AM GAS STATION OPERATORS PLEAD GUILTY TO PRICE-FIXING Five gas station companies and their operators have pleaded guilty to price- fixing in the Sixth Circuit Court in Oakland County, Mich. It was the first gasoline price-fixing prosecution in the state since the price-gouging aftermath of Hurricane Katrina in 2005. The Michigan Attorney General's Office said the companies violated the Michigan Antitrust Reform Act (MARA), artificially raising prices for consumers. As a result, they paid fines ranging from $10,000 to $50,000. Sentencing for all but one party is forthcoming this month, though it is just formality. The sentences were the fines. One defendant changed his mind and will pay $35,000 up front rather than $50,000 over five years. The stations that were charged were located within two miles of each other in Madison Heights, a community 20 minutes north of Detroit, and set their gas prices within a penny or two of each other on at least five days in February and March last year. They sell Marathon, Sunoco and Citgo branded fuel, the state Attorney General's Office said...... Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, January 09, 2012 12:01:00 AM FOCUS ON FOOD SERVICE GUIDES STORE DESIGN Two publicly held chains have been perfecting store designs over the last decade, and their latest stores reveal the c-store of the future: restaurants with gas pumps. Casey's General Stores of Ankeny, Iowa, and Susser Holdings of Corpus Christi, Texas, are enlarging their stores, primarily to make room for food preparation. Some highlights: more cooler doors, larger restrooms, upgraded construction materials, and a center-store checkout. The emphasis is on product presentation, notes Jim Fisher, CEO and founder of retail sales forecasting firm IMST Corporation of Houston. "Many companies are learning bigger does not mean we have to put more stuff in it, it just means we have to present it better," says Fisher. "Openness is paramount." Some trends: ***Mobile shelving. Movable shelves allow retailers to rotate daypart-related impulse items to the front throughout the day. There are also fewer traditional gondolas, deeper cooler shelves for additional holding power, open-air and vertical coolers for fresh grab-and-go items like salads and sandwiches. ***Floor-to-ceiling windows, mostly free of signage. This benefits the employees, who can see the forecourt better, and both the customer and retailer, because incoming customers can get a preview of where to go in the store. Fisher says if a retailer can't influence customers at the pump or on their way into the store, it has to grab their attention within the first three steps of entry with signage, graphics, lighting and layout. ***Full-view preparation of food. Casey's and Susser's Stripes stores are known for their prepared foods, and each features food preparation in plain sight. Stripes' Laredo Taco Co. and Casey's pizza and made-to-order sub program demand much of the emphasis for each chain's new-store designs and remodels. FOOD BY DESIGN Unlike some older stores, each new Stripes store sells fresh tacos under the brand Laredo Taco Co. Susser reports new-store cash flow increases of two to three times over stores built before the year 2000. The company expects new stores to mature in three years and targets a 20% unlevered annual ROI. The company plans to build 25 to 30 stores in 2012, and recently completed a stock offering to help finance capital projects....... Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, January 02, 2012 12:01:00 AM PREPAID PHONE CARDS CAN MAKE YOU A DESTINATION Prepaid phone cards, right behind motor fuel and fast food, could help make your c-store a destination. Ask Joe Gibson, director of purchasing and category management for Dari Mart, a 43-store chain headquartered in Junction City, Ore. Gibson says wireless phone cards from brands such as AT&T, Cricket and T-Mobile make up 85% of Dari Mart's prepaid card sales. Prepaid phone card sales average $14,000/month with a 10%-15% margin for both domestic and international, a firm number agreed upon with vendor InComm, says Gibson. Dari Mart stocks a variety of gift cards, and they make up a small share of total store sales. But "the majority of these purchases are destination purchases, meaning someone is coming in looking for this product," Gibson says. Gift cards as a whole are a growing product category for c-stores, says Teri Llach, chief marketing officer for Blackhawk Network, which reaches 165 million people each week with its Gift Card Mall installed in grocery, big box, convenience, drug and other stores..... Joe Bush, jbush@opisnet.com Copyright 2012, Oil Express

Monday, December 16, 2013 12:01:00 AM SHOP TALK: NOBLE ROMAN'S BITES INTO THE TAKE-AND-BAKE PIZZA BIZ The take-and-bake pizza business - in which customers pick up a pre-made pizza and bake it at home - has been alive and well at supermarkets and big-box stores such as Walmart and Costco. But will it work at a convenience store? Officials for Indianapolis, Ind.- based pizza franchisor Noble Roman's Inc. think so. Noble Roman's, which has several hundred pizza franchisees within c-stores, has begun selling franchises built around "Take-n-Bake." The fresh, made-to-order pizza for the take-home market can be sold at standalone restaurants, small-format franchises, or simply from display cases. The company said the first standalone Take-n-Bake franchise opened Oct. 29, 2012, and in the initial 33 days, the unit generated an operating profit margin of 26.5%, even after the added labor cost involved in initial training. According to one Take-n-Bake franchise, prices range from $8.99 for a medium to $12.99 for a large deep dish. Toppings are free, and additional medium pizzas are $5.99. The franchisor says most tend to price Take-n-Bake about a dollar below the fully-cooked pricing, sometimes a little lower. Oil Express asked Noble Roman's President Scott Mobley for more details on the benefits of Take-n-Bake for c-stores...... Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express

Monday, December 02, 2013 12:01:00 AM SHOP TALK: BUILDING A NATIONAL BRAND QuikTrip Corp., one of the industry's better-known regional brands, has hired a Kansas City public relations firm to help build a national brand image. The 50-year-old company has expanded from its Tulsa base over the past few decades, into Texas and Arizona, eastward into the Carolinas and Atlanta. Now QuikTrip has almost 700 stores in 11 states, its newest focusing on fresh food. Both QuikTrip and its public relations firm declined comment on the details of the partnership. Oil Express talked with Alycia de Mesa, a consultant and author of "Before the Brand: Creating the Unique DNA of an Enduring Brand." OE: What should a company keep in mind as it expands geographically? ADM: One of the tenets of retail location branding is to ensure that every touch point a consumer interacts with is accounted for. In other words, what are people doing when they drive into a gas station, what are they doing and where are they looking when they go into the actual convenience store? When you map that out in a very psychological way, you provide a roadmap to actually capture that person's attention relevantly. For example, QuikTrip took an extremely systematic approach to how the workers represent the brand, how they greet you, how they say goodbye to you. If they take that same approach to all markets they will absolutely succeed because they're following to the letter what it takes to build a brand nationally...... Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express

Monday, November 04, 2013 12:01:00 AM SLIDING SLIPS BACK INTO SOME REGIONS The gas station forecourt crime nicknamed "sliding" that has happened on and off for years is on again in some areas. Some local police departments report an uptick in this sort of theft in which criminals sneak into cars while motorists traveling alone are pumping gas or are inside the convenience store paying for a fuel purchase. They drive up next to the victim's car, slide out of their own car, stay low and open the victim's passenger door to swipe anything within reach and then hop back into their car. It's over in seconds. While merchants can consider posting a warning to lock car doors, they can overdo it, said Chris McGoey, president of McGoey Security Consulting, explaining that excessive cameras, bars on windows, and warning signs can drive customers away..... Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express

Monday, September 23, 2013 12:01:00 AM LEGAL: IS CAR WASH RECEIPT A GIFT CERTIFICATE? A recent decision from a Minnesota appellate court concerning the state statute on gift certificates could prompt gas retailers who operate car washes to check their state laws to see if they are a potential legal target. The decision involved a case filed in 2012 by customer Don Wells against Holiday Cos. Inc., owners of Holiday Stationstores, in Hennepin County District Court, Minneapolis, Minn. The case was filed as a potential class action on behalf of consumers who bought car washes at the company's gas stations. Customers paid in advance for the car washes, receiving a paper receipt with a code that they entered on a keypad to activate the wash. The problem? The receipt had an expiration date. The suit claimed that under Minnesota law, the receipt is considered a gift certificate, and as such should not have an expiration date. Some 35 states have language concerning expiration dates on gift certificates, according to the National Conference of State Legislatures. The lower court dismissed the suit in 2012, ruling the state's language did not apply to car wash receipts. The court said key language defining a gift card was too vague. Under the statute a gift card is a "value shown in record." The statute failed to define what is meant by the term "value," so the court applied the most common meaning - cash value. The court dismissed the case because it decided that a car wash code did not have cash value. But in March 2013 in St. Paul, a Minnesota Court of Appeals' three-judge panel reversed the ruling, saying Wells had enough of a claim that the case could not be dismissed. Specifically, the panel said that the car wash code is a means of storing information or value, thus satisfying part of the state statute's definition of a gift card. The appellate court sent the suit back to district court, asking both sides for more facts, but no date has been set for further proceedings. A similar Minnesota lawsuit filed in the same district court against Calhoun Beach Automotive, a BP dealer in Minneapolis, and supplier BP America was dismissed in July 2012. A Minnesota court of appeals rejected the case due to a procedural error - the defendant failed to serve the notice of appeal to the dealer's lawyer. Attorney Randy Thompson, of Bloomington, Minn., represented the dealer in the BP case, and he also represents the Minnesota Service Station Association. Thompson says federal law covering gift cards exempts paper car wash receipts.....  Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express

Monday, September 09, 2013 12:01:00 AM SHOP TALK: FRANCHISORS COURT MULTISITE OPERATORS A growing number of franchisors are seeking multisite franchisees, upping the ante for potential investors. Franchisors such as Dunkin' Donuts and Taco Bell - that have courted convenience stores and gas stations - are getting entrepreneurs to commit up front to opening multiple outlets. The attraction is simple: Multisite operators have capital and a proven track record. The trend in multi-unit franchisees is rooted in the recession's tighter bank lending practices. During the downturn and credit crisis, franchisors shifted recruitment to entrepreneurs who didn't need leverage. Don Boroian, chairman of franchise development consultancy Francorp of Olympia Fields, Ill., says the trend is real, and he spoke with Oil Express about it..... Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express

Monday, August 12, 2013 12:01:00 AM FROM THE STATES: LAWMAKERS DEBATE CARD SURCHARGES Lawmakers in as many as 20 states are debating bans on credit and debit card surcharges. At least two states - Utah and Texas - have passed laws that bar retailers from adding charges to the transactions. The flurry of state legislation followed the announcement in July last year of the more than $7 billion landmark antitrust settlement in the large class action challenging the escalating swipe fees. The preliminary settlement permitted retailers to levy surcharges to offset their transaction costs. However, although retailers have the right to surcharge, intense price competition keeps them from tacking charges onto transactions. Banking analyst Rick Oglesby, of Boston-based Aite Group, says he has surveyed 20 merchant acquirers, including banks and independent sales organizations, and 491 merchants and has "not found much interest in surcharging." "Merchants are fearful of the competitive implications associated with surcharging," Oglesby says. "The rules allowing surcharging where legal are so complicated that the merchants that would be interested have largely walked away from the opportunity."..... - Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express

Monday, July 29, 2013 12:01:00 AM LATEST DRUG PENALTY: BLACKLIST Gas stations and convenience stores known to sell synthetic marijuana can be blacklisted by a U.S. military base. That's just what happened to some stations in Maryland. At least two Exxon stations have been placed on the "off limits" list for soldiers at Fort Meade. The stations, located close to the base, were known to sell "spice," or synthetic marijuana. The blacklist is only one of a host of penalties associated with the sale of synthetic drugs, which have been banned by many states and localities, as well as the federal government. Some operators have faced prison terms and steep fines. Many major oil companies also have threatened to de-brand stations caught peddling these drugs. The Defense Department banned spice for service members in 2010, and expanded that ban last year to all synthetic drugs. Company commanders also recently got the authority to order drug tests, which was once limited to law enforcement. The policy allows the tests to ensure soldiers are fit for duty. Fort Meade spokeswoman Mary Doyle says in 2012 synthetic marijuana was detected in seven base members, who were subject to penalties..... - Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express

Monday, June 24, 2013 12:01:00 AM VALUE MENU MAY NOT BE MUCH OF A BARGAIN FOR C-STORES The Racetrac chain is touting a new dollar menu on its website, following in the footsteps of many national fast food chains. Racetrac has recently added two menus featuring items for 99 cents and $1.99. The 330-unit, Southeast marketer with its 5,000-square-foot-plus stores spanning five states seeks to go head-to-head with quick service restaurants (QSR). The dollar menu is often seen as a competitive advantage in the restaurant business. But analysts have recently been critical of the results that burger giant McDonald's has seen from its value menu, suggesting c-store operators considering a dollar menu should proceed with caution. C-stores, because of the variety of inventory, are in a better position to offer a value menu because consumers are likely to add higher-margin merchandise to the bill, consultants say. Restaurant analyst John Gordon, principal at Pacific Management Consulting Group, of San Diego, says dollar menus are "awful," especially for QSRs. He cites the discontent from McDonald's franchisees with the franchisor's focus on low-cost items to boost same-stores sales for investors. Gordon says that there is a 60% to 70% cost on most dollar items, so stores typically make 20 cents to 30 cents on each. He notes that it is hard to offer food items for a dollar and maintain the quality.... -Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express

Monday, May 20, 2013 12:01:00 AM SHOP TALK: UPSELL TO MAXIMIZE PROFIT With slim margins on gasoline and falling tobacco revenue, fuel retailers are turning to food service to offset lost profits. Like the fast food restaurant chains, retailers must learn to increase sales per customer by training store employees in suggestive sales techniques. Oil Express spoke with Mark Wells, president of training firm LJT Management Services, of San Diego. Wells, a recent speaker at M-PACT (Midwest Petroleum and Convenience Tradeshow) last month in Indianapolis, is a former owner- operator of Texaco and Marathon stations. OE: How important is upselling to gas stations? MW: The necessity is there. We're showing fuel declines each and every year. The best way to make up that profit is suggestive selling. OE: What can operators do to increase upselling? MW: It all starts with the hiring process. Do you hire salespeople or do you hire clerks? If you're hiring a clerk, someone who basically operates a cash register, don't expect them to be a salesperson, because it's actually two different people. If you want to be successful at suggestive selling first you have to have the right people, somebody that not necessarily has a sales background but the personality to talk to customers. A lot of times operators will have someone who's efficient at their duties but they're not salespeople. The second step is get the people trained. They have to have the product knowledge to know what they're selling. What are the benefits to the customer? Customers don't buy products, they buy benefits. That's another mistake: Employees often are not selling the benefit to the customer. They're trying to sell them a product. OE: What is one best practice that you preach?..... -- Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express

Monday, April 08, 2013 12:01:00 AM A TALE OF TWO SUB SHOPS: QUIZNO'S MAKES COMEBACK BUT TRAILS SUBWAY In early 2010, restaurant franchiser Quizno's boasted plans to become the nation's dominant quick-serve restaurant at convenience stores. Three years later, however, that title belongs to archrival Subway, which has used unconventional outlets to jump to the No. 2 spot among fast food chains and halved initial franchise fees as an incentive to lure major brand gas stations. Subway currently has more than 8,000 nontraditional sites and has passed McDonald's in total outlets worldwide. Though Denver-based Quizno's has multisite deals with big operators such as Hess, MAPCO Express and The Pantry, its plans for fantastic growth have sputtered. Quizno's - and some of its gas station partners - declined to share details of their operations. But the business concept that helped make Subway ubiquitous was not enough to compensate for the Quizno's chain's high food costs and poor franchise relations. And its claim to fame - "toasted" premium subs - lacked the much stronger appeal of Subway's pitch as a "healthy" fast food alternative. By 2011, Quizno's was on the verge of bankruptcy and by 2012 it had seen its store count plummet to 2,500 from its peak of 5,100 in 2008..... - Joseph Bush, jbush@opisnet.com - Donna Harris, dharris@opisnet.com Copyright 2013, Oil Express

Monday, April 01, 2013 12:01:00 AM FOR PROFIT: SQUEEZING PROFITS FROM FRESH JUICE Major juice bar franchisors could soon offer convenience store operators a healthy new profit stream. Juice It Up executives say they are interested in installing franchises in c- stores, and Jamba Juice is offering its concept in a smaller footprint. Starbucks, the coffee franchise c-store operators often strive to copy, shined a spotlight on juice when it bought bottled juice company Evolution Fresh a little over a year ago and started opening juice bars. The potential for c-stores to squeeze profits from a juice bar could be even better than that of a traditional quick service restaurant. Bonnie Riggs, restaurant analyst at market research firm NPD, says the incidence of specialty beverage purchases in c-stores is considerably higher than in QSRs. And fresh juice could attract the upscale and female market segments c- stores have been courting in recent years. "The bigger issue is that juice and smoothies skew highly to women - young women in particular, 18 to 34," says Riggs. "They (c-stores) could be attracting a new customer."...... - Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express

Monday, February 25, 2013 12:01:00 AM TECHNOLOGY: SQUARE IS FASHIONABLE When a retail innovator like Starbucks jumps on board with a new payment system, the industry has got to pay attention. The coffee shop giant started offering mobile payment in November through the Square Wallet App. The question is will it work for gas stations? Square can't be used at the pump. Gas stations are often bound to a major oil company's approved point-of-sale system. But some retailers like Wayne Howard's Chevron in Bellingham, Wash., are finding Square can improve their cash flow. Wayne Howard's Chevron, which also operates a convenience store, already accepts debit and credit cards. The POS system Chevron provides ensures that customers can pay for fuel at the pump as well as inside the store. Still, Howard also uses Square, a well-known platform for small businesses to be able to accept credit and debit cards via a smartphone or tablet. Square launched in 2009, founded by Jack Dorsey, the man who also started social media platform Twitter. Dorsey's team developed the Square platform to provide hardware and software for anyone - from a gas station owner to the neighborhood garage sale - to accept plastic without going through a bank.... - Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express

Monday, February 11, 2013 12:01:00 AM FOR PROFIT: ALL PAWS BARKS UP RIGHT TREE Some 46 million U.S. households own a dog, reports the American Pet Products Association (APPA) in its latest survey. In 2011, the APPA says Americans spent almost $51 billion on their pets, nearly $4 billion of it on grooming and boarding. The data suggest pet washes can be lucrative for c-store owners with the right location. Pet wash equipment has been sold for years, but often replaces one of several bays of self-serve car wash businesses. All Paws Pet Wash, a division of CCSI International of Garden Prairie, Ill., decided in 2009 to enclose pet wash equipment in a booth that can be placed anywhere there is water and electrical hookups. The booths include all that is needed to wash a dog and operate like a car wash, air or vacuum machine. Operators can choose coin or token, and All Paws will preprogram a price per time period. Maintenance involves at least once- daily cleaning of surfaces and hair filters, and topping up of soaps/shampoos. Two c-store executives with All Paws booths say the profit margin is similar to a car wash's 70%, and they have noticed no alarming rise in utility costs. While All Paws makes and sells booths with two sets of equipment, Jiffy Mart, Westminster, Md., and Tradewinds Markets, Eddington, Maine, use the one-dog booth. Chuck Lawrence, owner of five-store Tradewinds Markets, liked the concept so much he bought and installed three at once in the summer of 2012. Lawrence says he was drawn by the novelty and what it might mean for attracting new business. He was not disappointed. "The amount of publicity we got was amazing," says Lawrence..... - Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express

Monday, February 04, 2013 12:01:00 AM SHOP TALK: RETAILERS FORMING MOBILE PAYMENT VENTURE Despite great fanfare, mobile wallets - applications that users load onto their smartphones and fill with their payment cards for point-of-sale transactions - have still yet to progress past the test phase. A consortium of major wireless carriers named Isis, as well as Internet giants Google and PayPal, have created digital wallets and have dominated payment industry headlines since 2011. But obstacles such as limited compatible infrastructure and the low availability of capable smartphones have limited use to local and regional trials. In August, a new player emerged with a different genesis and motives. Merchant Customer Exchange (MCX) is the initiative of major retailers such as 7- Eleven Inc., Alon Brands, Sheetz Inc., QuikTrip Corp., Shell Oil Products US, Sunoco Inc., Wal-Mart Stores Inc., Wawa, Dunkin' Brands, Best Buy Co. Inc., CVS/pharmacy, Hy-Vee Inc., Lowe's, Publix Super Markets Inc., Sears Holdings, and Target Corp. MCX would be standard for participating retailers, which MCX says serve nearly every smartphone-enabled American and account for over $1 trillion annually in sales. Users with the application would be able to pay for items at all retailers in the network. The platform would work inside each retailers' branded application and would be Cloud and barcode-based to include as many smartphones as possible while decreasing the need for retailers to invest in new hardware. Oil Express spoke with Dodd Roberts, a senior MCX executive. Giving no timeframe for launch, Roberts said MCX is working on a way to use the wallet for pay at the pump. The goal is not to reduce transaction fees, but to expand mobile payment availability and to keep transaction data in-house. That data helps retailers customize offers and coupons, which could be sent to users' wallets for all-in-one transactions upon future visits. There is no information yet on participation cost, he said. OE: How is MCX different from the other mobile wallet ventures?...... - Joseph Bush, jbush@opisnet.com Copyright 2013, Oil Express