GHRA In Action
Transcription
GHRA In Action
AUGUST 2014 PLAN ANALIZE Staying Focused on your Goals Re-evaluating your business for the remainder of 2014 Page 3 MEASURE How to Build a Hot Food Program pg. 7 IMPLEMENT Helping to Take a Bite Out of Crime pg. 12 GHRA BOARD President’s Notes Dear GHRA Members, Rahim Momin President Zulfikar Ali Maknojia Senior Vice President Rafique N. Ali Negotiation - Chairman Vice President Ahmed Hasora Honorary Secretary Mahemood Momin Treasurer Lehjatali Momin Warehouse Chairman Shamsuddin Maredia Director Asif Davwa Director Sherali Haiderali Director Rahim Maknojia Director Tajddin Momin Director Mubarak Dhukka Director Zulfiqar Kurjee Director OFFICE 12790 South Kirkwood Rd., Stafford, TX 77477 Ph. 281.295.5300 Fax. 281.295.5399 www.ghraonline.com The year is half over, which is the perfect time to take stock of your progress and make sure you are on track to have the kind of year you had planned. There is still time to take a fresh look at your numbers and make any necessary adjustments. Here at GHRA, our mid-year reviews were very positive and indicate positive growth for the first half of 2014. We are seeing sales increases in every category along with member growth. In areas that need adjusting, we are making those changes to ensure that we meet our plan. This month is the perfect time to re-evaluate your own plan to ensure you are meeting your goals. It is not too late to brainstorm ideas that can move your business to the next level. Now is the time to decide what you are doing right, as well as what you are doing wrong. Take a look at your team – do you need more people? Are you retaining customers? Now is the time to re-evaluate and tweak if needed. Marketing is important to all of us. We know our business and our target audience so when it comes to marketing don’t get overwhelmed with all the options. Focus on communicating the GHRA Spanner and posters message, along with your food service offering. Keeping the message to 4 items helps communicate to your customers what exactly you want to sell them and that you know them well. Also, while it might sound difficult, sometimes competitive analysis can be as simple as reviewing your top competitors in a 2.5 mile radius. Are they offering incentives? Are they marketing something you’re not? Adjust your business and marketing to reflect your new insight. Lastly, an important part of a mid-year review is motivating your team to keep up the hard work or refocus if goals are not being met. Rewarding success, whether it is through a pat on the back, a bonus, a promotion, or a team outing, tells your employees they are valued contributors and play an integral part in the overall success of the business. Ensure your business is in the best shape possible for a successful year end. Thank you for your continued support. Sincerely, Rahim Momin 2 In Balance T aking advantage of opportunity… As we all know, doing business in a soft economy has unique challenges. It is also true Mike Thompson Chief Executive Officer that doing business in a growing economy has unique challenges as well. In case you haven’t noticed, the Houston area is experiencing historical growth. The U.S. Census Bureau reported that in the past year, Houston, The Woodlands and Sugar Land area has gained over 220,000 residents. Where is the growth coming from? Births: 58%, International migration: 25.5% and Domestic migration: 16.5%. Economic growth means more potential customers along with new competition. Stay competitive! Good things don’t necessarily last forever! You have to keep doing those things that improve the business. If you are fortunate to have seen growth in your business, don’t become content and lose sight of those things that are important to maintaining that growth. I’ve seen it so many times, owners developing very successful businesses through hard work and determination only to see those businesses decline due to lack of focus and attention. Almost half of the population growth is coming from international or domestic migration. We should continually monitor our store offerings to meet the needs and desires of the area’s population. Your product offerings should be diverse with the right amount of variety that appeals to a continually changing demographic. This requires constant attention. As your business grows older, invest back in its infrastructure. New and beautiful stores are being built every day in the area. Keep your store fresh and clean. It doesn’t matter how well you run the business inside if the outside doesn’t invite anyone in! Be careful not to become that dinosaur on the side of the road that once was the best place to shop in the community. Let’s take advantage of the economic growth by working harder and investing more into our businesses for long term success. Don’t allow this phenomenal growth to calm your determination to succeed. The future is bright for GHRA! THANK YOU GHRA Members for another solid year of partnership. Please see the "Promotions-In-Action" Section of this magazine for a one time, hot Mountain Dew 12 pack promotion for August. Stock UP today! 3 Director’s Notes From the Desk of the Senior Vice President Zulfikar Ali Maknojia Recently you may have received a letter (e-mail) from the USDA- Food and Nutrition service about a change in the SNAP EBT Terminal and related service program. If you are accepting the SNAP card at your store then please be sure to read that letter (or e mail) and make the necessary change prior to September 21. Thank you for your support Sincerely, Zulfikar Maknojia From the Desk of the Vice President - Negotiation Chairman Rafique N. Ali Our 2015 strategy formulation is progressing. Please continue to support the 2014 programs, spanners, posters and flyers to optimize these efforts. Thank you for your support. Sincerely, Rafique N. Ali From the Desk of the Honorary Secretary Ahmed Hasora There are 1197 stores set up on the GHRA Web Portal and 722 users. Remember the portal is a secure network for pricing information, planograms, contacts for key partners and the “GHRA In Action” magazine. Thank you for your support. Sincerely, Ahmed Hasora From the Desk of the Treasurer Mahemood Momin Thank you for your support of the many programs that contribute to our everyday business and the development of our warehouse operation. That support fuels our success and allows GHRA to continue to grow and evolve in the market. Thank you for your continued support. Sincerely, Mahemood Momin 4 Feature Energy Drinks, Enhanced Waters Leading C-store Beverage Sales NEW YORK – Energy drinks and bottled waters are largely responsible for the 2.8-percent increase in non-alcoholic beverage sales in convenience stores during the first quarter of 2014, according to the latest Wells Fargo Securities LLC's Beverage Buzz survey. Their strong sales offset declines in juices and carbonated soft drinks (CSDs). Retailer respondents who saw the strongest growth in the non-alcoholic segment -- as high as 10 percent -- generally had favorable weather conditions, solid foot traffic and strong energy drink sales. Iced tea and enhanced waters also performed well, with flavored sparkling water brands exhibiting a "breakout year." For the remainder of 2014, c-store retailers continue to be the most optimistic about energy drinks, expecting them to see 10-percent sales growth, followed by enhanced waters/sports drinks at 7.7 percent growth. They expect general CSD sales to fall 1.3 percent, 5 but be offset by 1.1-percent growth in flavored CSDs. Monster Energy Corp. is expected to lead the energy segment in growth, possibly resulting in the segment's expansion in shelf space. For CSDs, the survey estimates that a decline in The Coca-Cola Co.'s sales volume in the first quarter was offset by pricing increases, while PepsiCo Inc. saw slight volume growth with stronger performance by the Mountain Dew brand. Retailers report that the Dr Pepper Snapple Group's mid-calorie TEN line is generating "weak" repeat sales, prompting its removal from many store shelves. "As we have stated previously, we are increasingly fearful that TEN may follow in the footsteps of countless other brand extensions that fail to become meaningful brands," said Bonnie Herzog, managing director of tobacco, beverage and consumer research at Wells Fargo Securities. Weather continues to be the biggest stumbling block for beverage sales. C-stores that saw decreased sales blamed poor weather conditions for the drop. "Weather is impacting guest counts in key geographies throughout the country, which placed downward pressure on sales," said one retailer. Still, while three-quarters of respondents indicated that disruptive winter weather had a worse impact on sales relative to last year, this is an improvement from the first quarter of 2013, when 100 percent of respondents suggested that weather was worse, according to the latest survey report. Retailers and consumers should see some pricing relief in the beverages category during the second quarter. Retailer respondents expect no price increases during the quarter, and many believe price levels have reached or already exceeded their limits for the year, based on what customers are willing to pay. Food Service How to Build a Hot Food Program By Maureen Azzato | www.csnews.com B reakfast is the best meal to consider when launching a hot foods program The reason for that is most convenience stores already have a strong and loyal morning customer base they can leverage and entice to try something new, according to the Convenience Store News for the Single Store Owner How To Crew of experts. Breakfast programs are also fairly inexpensive to execute, and a decent program can be developed with just five or six items. The best way to begin is to test two or three breakfast sandwiches with shoppers and determine which they like best and what sales levels to expect, according to Tim Powell, a member of the CSNews for the Single Store Owner How To Crew and a foodservice consultant with THINK Research & Consulting. “The key to keeping hot foods relevant is to offer two to three mainstream products,” he said, “such as a ham and egg biscuit, sausage biscuit with cheese, and/or an egg burrito along with seasonal limitedtime offers. Once a hot breakfast program is established, it is then easier to expand into hot lunch and snack items, our experts agree. The idea is to start small, build a strong foundation and use the breakfast program as a building block. You should begin by knowing what you want to achieve in the end, but realize that it will take time, focus and patience to get there. It’s important to understand what your customers want before building the menu, so be sure to ask them. As a single-store owner, you are extremely close to your customers and should rely on them for advice and feedback. From the outset, it’s also critical to decide how you want to serve your customers hot food –– grab and go or made to order –– because that will affect the type of items offered, the cooking and holding methods used, and the equipment that needs to be purchased. At the beginner level, most experts recommend a grab-and-go hot food program until execution is flawless. “Keep it simple. Get bored with the basics first,” one How To Crew expert said, noting that grab and go is ideal because it requires “minimal touch” and is a great way to begin to incorporate a foodservice culture into your store. Also “examine the state of your store with a critical eye on cleanliness,” said Donna Hood Crecca of foodservice consultancy Technomic Inc., another member of the How To Crew. “Restaurant [level] cleanliness is crucial, as it fosters consumer confidence that this is an establishment from which they can purchase hot foods.” The Lunch Daypart After breakfast is perfected, then consider the lunch daypart and investigate what sells in your local area. The burger seems to be the beginner hot lunch menu item that most experts recommend because it’s easy to execute and many varieties can be sold by using different cheeses, toppings, sauces and breads. A high-quality fried chicken patty is the second easiest hot sandwich to execute, and also popular with consumers. Easy sides and snack items to add to the menu might include fries, mac and cheese bites, or onion rings that can be either cooked in an oven or fryer, depending upon the type of product purchased. Soups, stews and chili are other easy hot items to add that simply require reheating, and proper merchandising and rotation. Single-store owners who have advanced foodservice programs should utilize limited-time offers to drive trial of new items and differentiate their menus. Ultimately, the goal is to develop a foodservice program with some unique items that drive traffic to your store. 6 Food Service Once the breakfast and lunch dayparts are perfected with both hot and cold food offerings, single-store owners can then transfer some of that success over into the dinner daypart. Although few in the convenience store industry have figured out the best approach to dinner, one thing is certain: A strong hot food program will help build the evening business, especially if your store currently has strong evening foot traffic. The Right Equipment As is true with all foodservice programs — hot and cold — consistent execution is vitally important. Putting the right systems in place, focusing on training and buying the proper equipment — and using and maintaining it correctly — will all support strong in-store execution. When it’s time to select equipment, one of the most important considerations is functional intent. In other words, how will your product be cooked and held? Will you be rethermalizing alreadycooked food? Do you need moist holding equipment (for hot sandwich meat components such as meatballs or sausage), or dry holding equipment for fried foods so they remain crispy? Will you need both? Because the menu drives everything –– from ingredient procurement and inventory to equipment selection –– be entirely sure about the scope of your menu and how you plan to execute before purchasing any equipment. With space consideration in a c-store so critical, it’s also important to find space-efficient equipment that is versatile and can be used across many menu items. PINNACLE PROPANE EXPRESS Wishes to thank all GHRA members for the continuous support as we celebrate 6 years of service to your organization. We take pride in our service to all GHRA members and hope the below information assists you in meeting your customers propane needs Toll Free number 866‐Have Gas (428‐3427) Email [email protected] Please make this your first line of communication to Pinnacle Propane Express. If you request an ETA our Customer Care Staff will be glad to call you back before the end of business day with an ETA or a resolution to your call. PLEASE REQUEST A CALL BACK If you have not received a call back from our Customer Care Staff please contact Emily Clancy: Emily Clancy Customer Service Supervisor / Major Account Support Specialist Contact information : Email‐ [email protected] Office direct: 847‐406‐2031 Cell 224‐572‐3443 Fax 847‐406‐2040 Sincerely, Rob Vrankovich Director of National Accounts Contact Information is: [email protected] Cell Number—630‐479‐9750 7 Technology Tech Conference Tackles Future of Couponing By Brian Berk | Convenience Store News T he future of couponing will be electronic offers targeted to an individual, not a paper coupon specifically promoting a particular product. “Manufacturers will not just throw a coupon in a newspaper and hope for a good redemption rate,” said Patrick Lewis, CEO of convenience store chain Oasis Stop N Go LLC and an owner of loyalty program provider Kickback Rewards Systems. Oasis Stop N Go operates 13 c-stores in southern Idaho. “Paper couponing may have some place, but its importance will be nowhere near the same level it has been [in the past],” he continued. Lewis led a three-hour breakout strategy session on digital couponing and loyalty during the second day of the 2014 PCATS Annual Conference, hosted by the Petroleum Convenience Alliance for Technology Standards (PCATS) and taking place at Tucson’s Loews Ventana Canyon Resort. (Later that evening, PCATS announced it was changing its name to Conexxus effective immediately and the conference would now be known as the Conexxus Annual Conference.) Lewis has served as chairman of the PCATS Loyalty Working Group for the past seven years, where his role is to recommend standards for the loyalty and digital coupon segments of the PCATS organization. During yesterday’s strategy session, he noted that targeted mobile offers will now be based on prior purchases made by a consumer. Thanks to the fact that paper coupons have not proved popular at convenience stores, the channel is at the forefront of the mobile couponing movement. “Everything is going mobile,” Lewis said. “Interest in e-coupons has risen dramatically in the past couple of years.” He did acknowledge that some roadblocks stand in the way of mobile e-couponing, but they can be overcome. The first roadblock is what he referred to as “multiple token acceptance.” “For example, if a consumer presents two separate 5-cent fuel rollback offers, will the [point-of-sale system at the pump] stack the deal and allow for a 10-cent discount?” Lewis asked. “Or will it reject one of the offers? That’s something that needs to be worked on.” The tax implications of mobile couponing is another issue that must be clarified, the executive added. “Should coupons be taxed?” Lewis questioned. “We’re going to need to figure that out. Tax laws vary greatly from state to state, so that’s going to be complicated.” The 2014 Conexxus Annual Conference continues through Thursday, May 1. 8 Saftey Securing the Convenience Store S ecurity remains an ongoing concern for convenience store operators, but new technologies and approaches are offering some great help. And great help is a great asset, because there is a lot of work to be done. Bad economic times mean increases in petty theft at retail. In fact, U.S. retailers lost $34.8 billion in stolen merchandise last year, according to the National Retail Federation (NRF). To cover those costs, the group said, consumers pay an extra 1.5 cents per dollar at retail, or about $354 a year, in additional expense per household. Innovations in safes, cash-handling systems and robbery deterrents are making c-stores safer and more profitable. Among the approaches retailers should consider: Biometrics: Scot Lins, an independent consultant who served more than a decade as senior director of loss prevention at 7-Eleven, said biometrics offer an area where there is significant application potentials. “It’s perfect for the c-store industry as it relates to age-restricted product sales,” Lins said. “That probably opens a whole other issue in terms of coordination with the various state alcohol and tobacco agencies. But to be able to use biometrics for the purposes of being able to identify whether or not a person is legal age to buy cigarettes or alcohol would be a great thing.” Training alone isn’t always effective. “You can increase training for employees all you want, but people are human, and they make mistakes,” Lins said. “They may get fooled by a fake driver’s license or ID card, and then that application of biometrics could be pretty beneficial.” Technology has improved quite a bit over the last five years, said Joe LaRocca, vice president of loss prevention for the National Retail Federation. “When it comes to safes, we have seen a lot of work done with biometrics.” Systems that identify employees 9 by their fingerprints can provide what LaRocca called “real, true individual authentication, and with some safes a lot of the auditing capabilities. Certainly a lot of work has been done to integrate the time lock and the combination process into some sort of central repository. We have seen it typically in banks, but now even the convenience store technology is becoming more readily available, and something you can connect to your network, your alarm system, etc.” Of course there is a higher cost, but LaRocca added, “on the back end you’re getting that increased security, that increased audit capability and some level of individual authentication.” Many counter that a biometric approach is too expensive. “For a small operator, perhaps,” LaRocca said. “But that technology is becoming more and more common. Six or seven years ago you would never have said that that there would be biometrics on your PC. Today, however, many personal computers and laptops have readers built in. Some, for example, let you just wave your finger over the reader to log in. The same is true with some multiple locks and safe technology we’re starting to see.” 7-Eleven was not looking at biometric systems, Lins said, but he believes it has come a long way as far as reliability, whether it includes fingerprints or retinal scanning. “We just didn’t feel it was an application that we had an immediate use for it as it related to cache handling,” Lins said. “Down the road, however, that will change. I can see it in an application with cash handling. I could definitely see it integrated into a POS application, with employees who right now may sign on using the last four digits of their social security numbers.” Lins also sees a role for a biometric application for signing on to the register, or time and attendance tracking. “The safe world has not changed that much in the last 150 years,” said Corin Angel, marketing manager for The Modern Safe Co. in Dania, Fla. “You have digital locks today, and biometric systems now that read fingerprints. But the quality of safes and the thickness of the steel still works—those haven’t really changed much.” Angel, however, has not seen an increase in the use of fingerprint readers in convenience stores. “Usually they don’t want to spend the money,” she said. On the issue of affordability, Lins Safety pointed out that while most people think of 7-Eleven as a giant that can afford nearly anything, it is also fast becoming a 100% franchise organization. “Yes, it’s the world’s largest convenience store retailer, but it’s made up of thousands of independent sole proprietors, and so affordability is an issue,” he said. “I think it’s going to be that way for a while because of the cost of labor and all the things that have put retailers under pressure these days.” “Intelligent” Safes: While there haven’t been many advances in the construction of safes, there have been some significant breakthroughs in “intelligent” safe technology, said Edward McGunn, president and CEO of Corporate Safe Specialists. “Specific advances are centered around bill validating and bill accepting, right at the store level,” he said. “Employees basically take the money from the till and put it in an intelligent safe that counts it.” Another development has been the ability of intelligent safes to transmit content reports directly to the storeowners’ bank. “It’s just like when you deposit money in your bank,” McGunn said. “You have to drive to the bank and process it with the clerk. Then it gets posted, but it’s not really posted that day. It takes some time, especially if it’s a check, to clear.” When cash is in the store, retailers have that same problem. It’s usually a two- or three-day drag to get that cash. “The latest technology integrates the safe into the POS system,” said Lins, “thereby allowing the daily cash report to be automatically completed and the funds available much sooner.” With this newer type of system, McGunn explained, the cash goes in the safe and that content report gets deposited electronically to their bank account that night, so it really helps cash management. “It also really helps with the illumination of cash,” McGunn said. “If you have 10 or 15 stores and they are all reporting to your bank, then all you have to do is look at your bank deposit. That is a better way to illuminate what your actual cash position is. These intelligent safes are solving that cash management drag time.” Ultimately, manufacturers need to help storeowners by reducing the time that managers need to participate in the cash-management portion of in-store operations. “If intelligent safe technology can be embedded in a self-service kiosk so that convenience store customers in the future would be able to scan their own items and pay for their own items— including using cash—that would really free up a lot of operational time,” McGunn said. “Right now, self-serve kiosks are not a good revenue driver for convenience stores.” Safe and Secure: “There are obviously all sorts of drop safes,” said Angel. “There are tips always available to help make something more secure.” There are also anti-bevel and what some call “anti-fish” baffles available on safes. “You have a depository mechanism, whether it is a rotary hopper, which would be top-loading, or front- or rear-loading,” Angel said. “The anti-fish baffle keeps them from going ‘fishing’ for the envelopes or the cash that are inside the site. It prevents them from being able to stick their hands, or a device, in and removing the contents.” Obviously, bolting down the safe is going to increase the security as well, Angel said, “since not being able to walk out with it is the primary thing. Operators also want to take a look at how the safe is constructed. For convenience stores, more than likely they are looking for the depository type of safes, where they are able to just drop money in, and then the manager will be able to access that.” Having a safe with a dual-key system is helpful, for the obvious reason: “There is a secondary person present in order to open the safe. Having a second set of eyeballs as a witness is always an additional preventative,” Angel said. Sound Approach: Moving Sound Technologies Inc. in Vancouver, Canada, is marketing a unique security device, the Mosquito ultrasonic teenage deterrent, which it bills as “the solution to the eternal problem of unwanted gatherings of youths and teens.” The device is essentially a sounder unit that emits a very high-frequency modulated tone (17.5–18.5 kHz) that is completely harmless even with long term use. The safe, non-confrontational anti-loitering device discourages antisocial youth or adults from gathering on or nearby your premises. Add-on features include remote control, motion sensor and timer. Further, the company says the device has a 90-100% success rate. It’s currently being used by Alimentation Couche-Tard’s Mac’s convenience stores in Canada. “We refer to it as a crime-deterrent product,” said Mike Gibson, president of Moving Sound Technologies. “When they hear the sound they find it very annoying, and will move away from the area within a couple of minutes.” The sound falls well within the hearing protection standards of the U.S. Occupational Safety and Health Administration (OSHA). The firm’s latest advance, the Mosquito MK4 Multi-Age, can be set to 17KHz to disperse groups of troublesome teenagers, or to 8 KHz to disperse people of any age from areas where loitering can be an issue. Preventing problems is better than solving them, good advice for retailers during economically stressful times. ALL rebate information is accessible via the web portal. Please go in and create your unique I.D. today and delegate authorities to your store manager of choice. WWW.GHRAONLINE.COM 10 Education TravelCenters, Shell Jointly Open First LNG Lanes ONTARIO, Calif. -- TravelCenters of America LLC teamed up with Shell North America Inc. to open its first two liquefied natural gas (LNG) fueling lanes at a Petro location here. In addition to LNG now being available at the Petro location at 4325 E. Guasti Road in Ontario, TravelCenters completed retrofitting several other TA and Petro Truck Service facilities to bring them in line with industry standards and regulations for completing truck service repairs on both compressed natural gas (CNG) and LNG trucks. The retrofitted locations are: lanes at TravelCenters locations along the U.S. interstate highway system. The two companies will build at least two natural gas fueling lanes for large over-the-road trucks, and related storage capacity, at up to 100 TA and Petro Stopping Center locations nationwide, based on customer demand. Shell will supply the natural gas fuel to these locations. Shell selected Cleveland-based Chart Industries Inc. to design, manufacture "All of our LNG lanes at Ontario and and commission 20 retail LNG fueling future locations will be 'super lanes' stations, including the lanes at the Petro in that the lanes are equipped with location in Ontario. The LNG fueling dispensers that allow pumping of LNG, stations are fully automatic, have a low diesel and diesel exhaust fluid. This working pressure and are sized to fill ensures that those lanes can be fully 100 to 150 trucks per day with two LNG utilized while the demand for LNG ramps dispensers. up over the coming months and years," As it enters into the emerging natural said Tom O'Brien, president and CEO of gas market, TravelCenters is basing TravelCenters. "Additionally, by locating site selection and construction of its the LNG lanes with the existing fuel lanes, LNG fueling network on demand, with we haven't interrupted truck traffic flow or sites being developed in phases along reduced available truck parking spaces at heavily traveled long-haul transportation these sites." corridors, according to the Westlake, In April 2013, TravelCenters and Shell Ohio-based company. announced an agreement to build and TravelCenters plans to have 10 more operate a network of natural gas fueling LNG fueling sites open by the end of • Petro Ontario, Calif. • TA Harrisburg, Pa. (Interstate 81, exit 77) • TA Baytown, Texas (I-10, exit 789) • TA Dallas South, Texas (I-20, exit 472) • TA San Antonio, Texas (I-10, exit 583) 11 2014. TA and Petro Stopping Centers Truck Service facility retrofits will enable TA Truck Service and Petro:Lube facilities to provide the same maintenance and repairs on both CNG and LNG trucks as they do on diesel trucks. TravelCenters is working with the Natural Gas Vehicle Institute (NGVi) on training to ensure that its technicians are fully trained on service procedures and safety precautions. TravelCenters of America operates travel centers in 43 states and Canada, operating under the TA and Petro Stopping Centers brands. Its 250 centers are located off interstate highway exits and offer diesel and gasoline fueling services, more than 500 full- and quickservice restaurants, 24-hour convenience stores, heavy truck maintenance services, RoadSquad Connect emergency roadside service, and Reserve-It truck parking reservations. TravelCenters also operates gasoline/ convenience stores in Kentucky and Tennessee under the Minit Mart brand name. Human Resources The 2013 Convenience Store Human Resources Study N early 100 convenience store chains representing more than 12,000 stores offered insights on employee salaries, hiring trends and labor costs. By Mel Kleiman, President, Humetrics. In order to support convenience store operators as they plan and forecast their human resources investments over the next 12 months, Convenience Store Decisions and Humetrics have collaborated on our fifth annual Human Resources survey. The following results, based on respondents’ recent experiences and expectations, will help provide the industry comprehensive benchmarks and insights on key areas of human resources, such as employee salaries, operating expenditures, hiring trends and the impact technology is having on employee training. This year, we will once again look at some of this year’s results versus the forecasts respondents made last year. Demographics This year’s survey asked 25 questions relating to human resource issues. Responses were collected from midFebruary through early March 2013. Respondents’ employers ranged in size anywhere from 25 or fewer employees (20%) with less than $1 million in annual revenues (9.1%) up to more than 500 employees (24.4%, up from 15.9% in 2012) and more than $500 million in annual revenues (11.4%, about the same as last year). This year, as last, the bulk of the respondents were in the 101–500 employee range (33.3%) and the $1 million-$10 million annual revenues category (31.8%). When we look at the respondents by year, 15.8% are anticipating a decrease. Again, like last year, employee turnover is still at historically low levels for the industry. With the exception of part-time employees, most respondents said the majority of employee turnover still ranges from 0-7% across the board. Part-time employees, however, bumped up dramatically (47.1%) from the 0-7% category last year to the 50–150% ranges in 2012. When we look at full-time employees, 23.7% did report turnover at what used to be typical rates of between 50-150% (up from a low of 13.7% last year). Only 10.6% of participants expect to devote more time and money to employee recruiting activities this year while most (48.9%) said recruiting activities are expected to stay at about the same levels this year as last. When we look at the recruiting methods job title, we find that 31.7% are corporate used to attract both hourly and salaried human resources professionals, about employees, the major changes from last 10% are district managers, 7.3% unit year’s results are that local newspapers level managers, and 51.2% comprise were added back into the mix for hourlies “other corporate personnel.” and Internet job boards went to the head of the list for salaried workers. Employee Screening and Staffing While still not widely employed, social As we found last year, when it comes media (Facebook, Twitter, LinkedIn, etc.) to staffing and training activities, most of these responsibilities fall on the shoulders are being used by 28% of respondents now, up from only 2% in 2012. Craigslist of store managers and district managers usage for hourlies increased a bit from with the exception of drug testing, which 21% in 2011 to 25% in 2012, but its is most often handled by corporate effectiveness rating fell from fourth place personnel or a third-party vendor. in 2011 to seventh last year. While only 18.5% of last year’s When asked about the tools employers respondents expected to increase staffing in 2012, 27.1% of this year’s respondents use to screen in the best job applicants, responses show that more employers are actually did. This year, the majority using more screening tools. Those most (59.3%) reported staffing levels stayed widely in use are: about the same in 2012 and 49.1% • Criminal background records checks. expect this will not change much in 2013. • In-house or outside service reference/ While 35.1% do expect to add to staff this 12 Human Resources background checks. • Third-party drug testing. Each successive year, we also find more participants report the use of pre-employment testing for physical capacities, IQ, skills, attitudes, personality traits and other areas related to job function. In 2011, 71% were using at least one of these tools, while usage is universal (100%) among this year’s respondents. Only 5% are currently checking social media sites, but another 5% plan to add these checks into their mix this year. from $7.25-$12 with an average of $8.61 (versus $8.57 in 2012). When asked: “Which statement best describes your current pay policies for hourly employees and managers?” the results for salaried employees were evenly split (at 25.5%) between: “We have a pay-for-performance program and give raises based on productivity” and “selective raises” and “across-the-board raises of 1-3%.” For hourly employees, the results were almost evenly split between “across-theboard raises of 1-3%” (32.8%), “pay for performance” (24.1%), and “selective Training raises” (27.6%). Most survey participants (67%) reported Five percent of survey respondents that training programs stayed about the reported a wage freeze for hourly same in 2012 and over half (57%) expect employees and 11% for salaried them to stay about the same in 2013. employees. Only one respondent anticipates training Most respondents expect their cutbacks and, of those who will increase policies to stay the same in 2013 with their investment in training (about 40%), the exception of a 10% increase in the greatest emphasis is again on the number of those using “pay-forcustomer service skills (70%), followed performance” criteria. by foodservice safety/sanitation (57%), The following table summarizes the teamwork, and safety, both at 45%. benefits now offered by the reporting When asked about the addition of group as compared to the respondents in any new training technologies, 22% 2011: responded affirmatively and the tools It’s interesting to note that while profit cited include: e-Learning, Webinars, sharing showed one of the biggest learning management systems decreases last year, this year it posted (LMS), smartphones, iPad, personal the largest increase although it should be computers, digital at store level, industry kept in mind that the same employers or professionals, age-sensitive sales, people did not necessarily complete the environmental, online ATS and onsurvey each year. boarding programs. Over 80% expect benefits to stay about the same in 2013, while 10% expect they Labor Costs will increase and 5.5% think they will be Store managers’ salaries ranged decreased. At the time of this survey, from $32,000-$66,000 annually with an much of the industry seems to be taking average of $36,500 (slightly lower than a wait-and-see approach as to how last year’s $38,711). Assistant managers’ Obamacare will impact healthcare costs salaries ranged from $18,000 (up from and wellness programs. This is one area $12,000) to $41,000 per year with an the will be benchmarked closely with next average of $26,500 (up from $24,000). year’s survey. The hourly rate for a full-time employee ranged from $7.25-$14.10 per hour with Technology Trends an average of $9.35, up slightly from As for new technologies to manage $9.26. Part-time, hourly wages ranged labor costs and improve the hiring 13 process in 2013, 26% will add a scheduling system, 13% will implement a new hiring and training system, while 30% don’t plan any additions. Approximately 65% said both employee-related lawsuits and worker’s compensation claims “were about the same” in 2012 and expect them to stay at about the same levels in 2013. When asked: “How was business in 2012 and how do you think 2013 will compare in each of the three categories listed below?” a preponderance think 2013 looks promising: While the industry faces a slew of challenges in 2013, such as preparing for the overhaul in healthcare and the impact this will have on full- and part-time employees, convenience store companies remain optimistic that their business is growing, the industry’s popularity is expanding and overall wellbeing of the U.S. economy is improving. If these trends continue, c-store retailers have every reason to be optimistic heading into 2014. Train to Retain Do you ever wonder why no one ever trains us for life’s most important roles? Did you get any training in what it takes to be a parent? A manager? A business owner? Probably not. In our professional lives, this is unfortunate because employee exit interview surveys tell us the main reason outstanding employees quit is because Human Resources they think they aren’t well managed. In other words, they joined the company, but leave the manager. When left to our own devices, most of us tend to deliver training in the way we prefer to receive it. This creates problems because different people have different learning styles. Some learn best by reading written instructions; some by hearing or seeing the task performed and others learn by doing it themselves. Managers who don’t allow for each of these learning styles create unnecessary frustration for the trainee as well as themselves and are often perceived as bad teachers. The best way to train— and keep good people on board—is to incorporate all methods of instruction so they naturally reinforce each other. You Get What You Expect The three keys to an overall training philosophy are to: 1. Set Clear Expectations. Employees perform better if they know exactly what you want them to do. This includes communicating the consequences. Let employees know the impact it will have on the organization or its customers if they do it right, do it wrong, or don’t do it at all. 2. Provide Necessary Skills. Once they know what you want them to do and why, they need to know how to do it. 3. Remove Obstacles. Think about the task at hand and ask yourself, “What might prevent a person from succeeding?” Faulty or wrong equipment, cramped or crowded working conditions, can all put employees in a position to fail. While you have a picture of how the task should be done in your head, nobody else, least of all your new hire, can read your mind. Communicate your expectations every chance you get. Ask trainees to read the written instructions and ask them why they think it should be done that way or if they have any ideas about how it might be done better. Regularly review expectations like reliability, dependability and honesty in staff meetings. If your policy manual includes a statement about employee standards or expectations, have everyone reread and initial a copy at once every three months. Featuring We take pride in offering our GHRA customers a great selection of products to meet your market needs Please call us today (323) 786-7865 - this is a local call. 14 Industry News Are You Keeping Up With Change? By Terry McKenna |Convenience Store Coaches & Employee Performance Strategies Inc N ever before have so many things been changing so rapidly. The convenience store industry is a good example. Technology is changing at lightspeed, and new competitors are entering the competitive landscape like never before. The most important question for any company is this: Are we changing as fast as the world around us? The only thing that can be safely predicted is that sometime soon your business will be challenged to change in ways for which it has no precedent. Your company will either adapt or falter. Capacity to adapt and adapt quickly is extremely important these days, and therein lays the problem: Most companies were never built to be adaptable. Adaptability requires a willingness to occasionally abandon established routines and norms, and in most companies there are precious few incentives to do so. That’s why change tends to come in only two varieties: the trivial and the traumatic. If you find yourself behind the change curve, chances are you’re already dead in the water; your obituary just hasn’t been written yet! Declining Fuel & Tobacco Dollars The biggest issue facing convenience store operators today is the decline in fuel and tobacco sales and margin. What’s your plan to replace this decline in gross profit dollars? If you’re waiting for a miraculous turnaround, you’re going to have a long wait. Welcome to your new reality. If you believe foodservice is the answer, but you’ve yet to jump into foodservice with both feet and establish yourself, then the process will take too long before you can turn the tide and replace current lost 15 gross profit dollars. That’s not to suggest you should ignore foodservice -- certainly not. Foodservice not only offers great margins (upward of 50 percent), but more importantly, it’s become a price of entry; the ante to get into the game. If you’re not into foodservice, then you’re at a competitive disadvantage. Quick-Strike Strategy To help offset declining fuel and tobacco gross profit dollars, here’s a quick four-point strategy that you can immediately implement: • OTP: Other tobacco products (OTP), such as electronic cigarettes and vapors, are rapidly growing both in consumer acceptance and sales. These products have solid gross profit margins (GPM). If you don’t have an OTP strategy in terms of pricing, merchandising and promotion, now is the time to develop one. • Foodservice margins: If you currently have a foodservice program (including fountain and coffee programs), make sure you’re getting a good GPM. The best companies can generate a solid 50 percent to 55 percent GPM. Keep in mind, though, the companies that can generate the best GPMs in foodservice offer a great program. Trying to grab higher GPMs on a weak foodservice offering is foolish. If you feel you do have a solid foodservice program, then don’t give it away -- get your margin. After all, you have to get margin somewhere and foodservice is the best place to get it. • Buy right: Sit down with your suppliers and make sure you’re buying right: product, cups, lids, straws, napkins -- everything. This is step No. 1 to ensuring higher GPMs. • Expense analysis: Without looking at your P&L, I’m confident there’s fat that can be trimmed. Review on a lineby-line basis every operating cost you’re incurring. Each expense should be justified. The first place to look is your operating supplies. Buying in bulk to obtain a quantity discount is fine, provided of course these supplies aren’t sitting in inventory for months on end. Change can be friend or foe; you decide. The market isn’t going to hand you anything. You’re going to have to roll up your sleeves, make the required changes, maintain a laser-like focus on the end game and excel at execution. Do that and you’ll be just fine. Warehouse News Warehouse Industry News Updates Bob Sliger | General Manager P rogress continues! A lot of work has been done in the past several weeks to complete the architectural details of the project and finalize the construction bid process. The city permitting has been challenging but we fully anticipate all permits to be approved soon and clear the way for construction. Centerpoint will begin the necessary work to prepare the site for the additional electricity needs by removing some overhead power lines and replacing them with some underground lines. Stay tuned for more updates on the construction progress in next months InAction magazine! 2014-15 HOUSTON TEXANS SCHEDULE WK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 DATE SEP 7 SEP 14 SEP 21 SEP 28 OCT 5 OCT 9 OCT 20 OCT 26 NOV 2 BYE NOV 16 NOV 23 NOV 30 DEC 7 DEC 14 DEC 21 DEC 28 TIME 12:00 PM CDT 3:25 PM CDT 12:00 PM CDT 12:00 PM CDT 12:00 PM CDT 7:25 PM CDT 7:30 PM CDT 12:00 PM CDT 12:00 PM CST OPPONENT REDSKINS AT RAIDERS AT GIANTS BILLS AT COWBOYS COLTS AT STEELERS AT TITANS EAGLES RESULT __________ __________ __________ __________ __________ __________ __________ __________ __________ 12:00 PM CST 12:00 PM CST 12:00 PM CST 12:00 PM CST 12:00 PM CST 12:00 PM CST 12:00 PM CST AT BROWNS BENGALS TITANS AT JAGUARS AT COLTS RAVENS JAGUARS __________ __________ __________ __________ __________ __________ __________ templatetrove.com WE’RE ONLINE WWW.GHRAONLINE.COM All GHRA announcements and publications will be posted online. Members are encouraged to visit the GHRA website on a regular basis for up to date information and latest publications. GHRA ONLINE CLASSIFIEDS WWW.GHRAONLINE.COM Under Other Services Absolutely FREE for GHRA members. Members can now list businesses or equipment for sale on the GHRA Website! 16 New Member Introductions welcome MEMBERS On behalf of the board of directors and staff at GHRA, please welcome our newest members as of June 2014: IMRAN K. ALI Owner of GHRA Location #3529 College Food Store • Houston, TX SIRAJUDDIN DOSANI Owner Of GHRA Location #3538 Best Handi Plus #26 • Houston, TX ZULFIKARALI N. MAKNOJIA Owner of GHRA Location #3543 Fuel Maxx #8 • Houston, TX AZIZ K. MOMIN Owner of GHRA Location #3530 Welcome Market • Fresno, TX SIRAJUDDIN DOSANI Owner of GHRA Location #3539 Best Handi Plus #14 • Houston, TX PIYAR A. SADRUDIN Owner of GHRA Location #3544 EZ Spot • Richmond, TX BARKATALI B. BADARPURA Owner of GHRA Location #3531 El Rincon Supermarket • Houston, TX SIRAJUDDIN DOSANI Owner of GHRA Location #3540 Best Handi Plus #17 • Houston, TX RAHIM H. MOMIN Owner of GHRA Location #3545 Oasis Angleton • Angleton, TX BARKAT ALI Owner of GHRA Location #3532 Hamner Country Store • Waller, TX RAJABALI H. PANJWANI Owner of GHRA Location #3541 Best Handi Plus #27 • Houston, TX AMIN S. NATHANI Owner of GHRA Location #3546 1 Stop #3 • Houston, TX BARKAT S. MAREDIA Owner of GHRA Location #3533 Shell Express Mart • Navasota, TX MUSTAKALI K. MAKNOJIYA Owner of GHRA Location #3542 Chevron Food Mart • Houston, TX IMRAN ALI Owner of GHRA Location #3547 Hollister Food Mart • Houston, TX RIZWANA R. DAREDIA Owner of GHRA Location #3534 Dixie Food Store • Houston, TX ALLAUDDIN N. MOMIN Owner of GHRA Location #3535 King Food Store • Houston, TX ROZINA T. ALI Owner of GHRA Location #3536 S & N Food Store • Houston, TX MOHAMMED T. RAJPOOT Owner of GHRA Location #3537 24 Seven #14 • Houston, TX 17