Ongoing Development Of The Business Model - NCASEF
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July/August 2011 T H E V O I C E O F 7 - E L E V E N F R A N C H I S E E S
Ongoing Development The 36th Annual
Convention:
Of The Business Model What A Bash!
july~ august
Page 30
Page 64
Transforming The
Distribution Model
Long Island CDC Meeting
So Let’s Review…
Outsourcing Continues
Social Media Growing Sales
Desperate Times, More Crimes
2 AVA N T I J U LY | A U G U S T 2 0 1 1 AVA N T I J U LY | A U G U S T 2 0 1 1 3
SLIN 190019 FOD September 19, 2011
8 AVA N T I J U LY | A U G U S T 2 0 1 1
12 AVA N T I J U LY | A U G U S T 2 0 1 1 AVA N T I J U LY | A U G U S T 2 0 1 1 13
The Voice of 7-Eleven Franchisees
July/August 2011
39 Transforming The 24 Work Opportunity Tax Credit
Distribution Model Means $$$ For Franchisees
BY BRUCE MAPLES, CHAIRMAN, BY BENJAMIN & DESIREE ACKERMAN,
NATIONAL COALITION FRANCHISEES, CENTRAL FLORIDA FOA
43 Morale And Enthusiasm 28 Servant Leadership
Builds At Long Island In Today’s Economy
CDC Meeting MIKE RARUS, FRANCHISEE AND
BOARD MEMBER, SOUTH FLORIDA FOA
BY JOE GALEA, EXECUTIVE VICE CHAIRMAN,
NATIONAL COALITION
34 The Power of Nice
45 So Let’s Review… BY RAVINDER WARAICH
VICE PRESIDENT, COLUMBIA PACIFIC FOA
BY ARNOLD J. HAUPTMAN,
GENERAL COUNSEL, NATIONAL
COALITION
31 2011 Convention And Trade Show
BY IRIS YOST, VICE PRESIDENT,
49 Outsourcing Continues SOUTH NEVADA/LAS VEGAS FOA
The 36th
BY ROGER ST. GEORGE, VICE CHAIRMAN,
Annual
NATIONAL COALITION
51 Social Media Convention:
!
Growing C-Store Sales What A Bash
BY JIVTESH GILL, VICE CHAIRMAN, rs
NATIONAL COALITION Major Sponso
Page 30
53 Desperate Times
D E P A R T M E N T S
Leading To More
Crimes 16 Member News: NCASEF Recognized, Debit Swipe Fee Limit,
BY JAY SINGH, VICE CHAIRMAN,
51 ExxonMobil Locations, Slurpee At The Movies, Fast Renovation,
NATIONAL COALITION C-Store Visits Decline, Seven-Eleven Japan Sales Increase, Stores
100 Top Retailers List, New Visa Fee Program, Franchisee Pitches
59 The Reorganization And You In, Charitable Giving, New Sacramento Valley FOA, Reward Raised,
BY BOB STRAUSS, FRANCHISEE AND BOARD Sales To Minors Record Low, 7-Eleven Goes Electric, Japan Disaster
MEMBER, FRANCHISE OWNER’S ASSOCIATION, Relief, Flash Mob, Flash Mob Guide, Coffee, Drinkers' Preferences,
CHICAGO Walmart Gas Savings, Dollar Stores
61 Learning From Mistakes 23 Bits&Pieces: From the C-store Industry
BY PETE GRAGNANO, VICE PRESIDENT,
SUBURBAN WASHINGTON FOA 84 SEI News: 7-Eleven Day, Travel Light Products,
T-Mobile Prepaid Handset, Secure Email, Proprietary
Wine, ‘Cowboys & Aliens’
july~ august
87 Vendor Focus: New Products for Franchisees
98 Franchisee Calendar: National Coalition
Board Meetings and Regional FOA Meetings
Pag e 6 4 Visit the National Coalition Website, www.ncasef.com
AVANTI is published by the National Coalition of Associations of 7-Eleven Franchisees for all independent franchisees, corporate store managers, area
licensees and interested parties. National Coalition offices are located at 3561 East Sunrise Drive, Suite 113, Tucson, AZ 85718. For membership in- ©2011 National
formation, call 520-577-8711, e-mail nationaloffice@ncasef.com or fax to 520-577-4688. AVANTI Editorial and Advertising Offices are located at 116 Coalition of Associations
Bellevue Ave., Suite 304, Langhorne, Pennsylvania 19047. For advertising information, call Sheldon Smith at 215 750-0178 or fax to 215 750- of 7-Eleven Franchisees
0399; on-line, send messages to sheldon.smith5@verizon.net.
N AT I O N A L
C OA L I T I O N
O F A S S O C I AT I O N S
OF 7-ELEVEN
FRANCHISEES
Slurpee At The Movies SEI Acquires 51
SEI and Cine- ExxonMobil Locations
mark USA, Inc. 7-Eleven, Inc. announced that it has Nat i oNa l of f i c e r s
have partnered to agreed to acquire ExxonMobil's retail in-
bring Slurpee to Bruce Maples
terests in 51 North Texas sites. The trans- N AT I O N A L C H A I R M A N
the movies, offer- action is anticipated to close in late 2011, 520-577-8711 • bmaples@maplesco.com
ing 7-Eleven’s iconic beverage at 32 se- subject to standard closing conditions
lect Cinemark theatres in Dallas, and regulatory approvals. Terms of the Joe Galea
Houston and Portland. 7-Eleven has deal were not disclosed. The 51 sites, all E X E C U T I V E V I C E C H A I R M A N
stores in Dallas and Portland; it does of which are in the greater Dallas/Fort 650-906-7936 • jagalea@aol.com
not have locations in Houston. Begin- Worth area, include two unused parcels
ning in July, movie-goers at participat- Arnold J. Hauptman
of land. The company said the majority
ing Cinemark theatres have of locations will be rebrand-
G E N E R A L C O U N S E L
been able to pour them- 516-541-7200 • ajhauptman@aol.com
ed as 7-Eleven stores and will
selves a frozen Slurpee The majority of be available for franchise. Jivtesh Gill
drink before settling in for
51 ExxonMobil The stations will retain the V I C E C H A I R M A N
the show. This marks the Exxon gasoline brand, allow- 209-481-7445 • j2jgill@aol.com
first time Slurpee beverages locations acquired
ing consumers to continue to
have been sold at outlets by 7-Eleven will be Roger St. George
purchase the same high-qual-
other than a 7-Eleven store, V I C E C H A I R M A N
rebranded and ity Exxon fuels and use their
360-500-1248 • rdsaint@yahoo.com
with the exception of a test ExxonMobil credit cards and
at a Dallas sports arena. franchised.
Speedpass devices. Jatinder Singh
Cinemark theatres now has After the transaction clos- V I C E C H A I R M A N
three Slurpee flavors pro- es late this year, SEI will start remodeling 702-249-3301 • jksingh@comcast.net
vided by Coca-Cola in both crew-serve and rebranding the locations, with the
and self-serve settings. bulk of the work anticipated to be com- Anas Abboud
T R E A S U R E R
pleted by the end of 2012. SEI said it will
215-946-4608 • abboud6@verizon.net
continued on page 21
Debit Card Swipe Fee Limit
C O N V E N T I O N C H A I R P E R S O N
Higher Than Expected 520-577-8711
conventionchairperson@ncasef.com
In late June, the Federal Reserve
raised its limit on how much merchants John Riggio
must pay to banks each time a debit Sheldon Smith M E E T I N G / T R A D E S H O W
card is swiped, thanks to an eleventh- P U B L I S H E R & A D V E RT I S I N G S A L E S
C O O R D I N ATO R
215 750-0178
hour reprieve for the financial industry 262-275-3086 • jrpinc@charter.net
SHELDON.SMITH5@VERIZON.NET
after a massive lobbying campaign. The
swipe fee was increased from a maxi- John Santiago Sheldon Smith
AVA N T I P U B L I S H E R
mum of 12 cents proposed by the Fed A S S I S TA N T E D I TO R
215 750-0178 A D V E RT I S I N G M A N A G E R
last year to a base charge of 21 cents,
A VA N T I M A G @ V E R I Z O N . N E T 215-750-0178 • sheldon.smith5@verizon.net
not the 41 cents originally proposed.
Banks can also collect .05 percent of Tricia Kessler
the amount of the transaction to re- GRAPHIC DESIGN
K E S S L E R D I G I TA L D E S I G N
coup losses from fraud, and the Fed will
The Voice of 7-Eleven Franchisees
consider allowing them to receive an- Avanti Magazine is the
July/August 2011
registered trademark of The
other cent for each transaction if they National Coalition Of Associations ©2011 National Coalition of
take steps to prevent fraud. The new Of 7-Eleven Franchisees. Associations of 7-Eleven Franchisees
rules will take effect on October 1.
16 AVA N T I J U LY | A U G U S T 2 0 1 1
Visit the National Coalition
CO N T I N U E D F R O M PA G E 1 6
Website, www.ncasef.com
Record Level Of Charitable Group, Tropicana Products, Inc., Mars, Inc., Kel-
logg’s and Kraft Foods, Inc. Fees from the Coali-
funds raised through franchisees’ national store-
based canister program supported by SEI, as well
Funding At 36th Annual tion’s annual Joe Saraceno Memorial Golf as live and silent auctions at the Coalition’s annu-
Tournament, and donations made from the public al convention. The contribution is the result of a
Convention also contributed to the total. long-term partnership between the MDA, the
The National Coalition announced that it has The National Coalition also presented the Coalition, its FOAs, individual franchisees, cus-
helped to raise nearly three quarters of a million MDA with a check for $420,000, representing tomers and SEI.
dollars this year for two of its charitable partners,
Hire Heroes USA and the Muscular Dystrophy As-
sociation (MDA).
During its most successful convention in its
36-year history in July in Las Vegas, the National
Coalition presented Hire Heroes leadership with a
check for $310,000 to support the organization’s
transition assistance workshops run at military
installations. In concert with SEI and nine vendor
partners, the National Coalition and its 36 Fran-
chise Owners’ Associations raised funds through
sales of specific products offered by brand-name
companies that donated a portion of each sale
for the program. Participating companies includ-
ed Nestlé USA, Anheuser-Busch InBev, Miller-
Coors, E. & J. Gallo Winery, Dr Pepper-Snapple
NCASEF Charity Coordinator Iris Yost, Chairman Bruce Maples, and MDA’s Brian Hunter at the Coalition’s presenta-
tion of a $420,000 check to MDA to support work on neuromuscular diseases.
Longtime Southern California President Karam Dhaliw-
al and wife Mattie, with Chairman Bruce Maples, above,
received the Chairman’s Special Recognition award for
their years of service to the franchisee community.
NCASEF Honored VP National Franchise Jeff Schenck,
who is retiring after 35 years with the Southland
Company and 7-Eleven, Inc. Above, Jeff addressed the
crowd at the NCASEF Grand Banquet after receiving Hire Heroes President Brian Stann and NCASEF Chairman Bruce Maples in front of the Dr Pepper Snapple Group-
the Chairman’s Special Recognition award. sponsored car that carries the 7-Eleven, Hire Heroes and NCASEF logos.
18 AVA N T I J U LY | A U G U S T 2 0 1 1 AVA N T I J U LY | A U G U S T 2 0 1 1 19CO N T I N U E D F R O M PA G E 1 6
extend job offers to ExxonMobil em- history held true in the second quarter mand for ice cream and beverages.
ployees who are affected by this acquisi- of 2011 when, due to rising gas prices, Overall c-store same-store sales totaled
tion upon successful completion of their convenience store traffic declined by 4 745.4 billion yen in July, the ninth
pre-employment screening process and percent compared to the same quarter straight month of year-on-year increas-
continued satisfactory performance. a year ago, according to convenience es, according to the Japan Franchise As-
Currently, SEI operates and franchises store research by The NPD Group. sociation. Customer traffic grew 2.4
339 stores in the greater DFW and Based on reporting by NPD's percent and sales per cus-
Austin areas of Texas (239 are in DFW). Convenience Store Monitor, tomer rose 6.9 percent. Sales
The company has added seven stores in traffic declines were steeper
Seven-Eleven of such products as boxed
these areas since the start of 2011. for major oil and small inde- Japan reported meals and prepared dishes
pendent chains—down 7 a 10.1 percent rose 7.1 percent.
percent—than at traditional increase in same
Fastest Renovations Ever! convenience stores, where store sales
7-Eleven has recently undergone its traffic was down 1 percent.
in July.
Visa Implements
fastest store-renovation effort However, c-store shoppers New Fee Program
ever, significantly upgrading made up for their decrease
in visits by spending more when they Visa Inc. announced it would intro-
more than 1,000 7- duce a network participation fee in the
Eleven stores on the East did shop, according to CSM. Sales im-
proved by 2 percent by an increase U.S. for all of its debit, credit and prepaid
Coast. The whirlwind card services, reported Reuters. As part of
store-remodeling of in the average check, as well as
growing purchase incidence in the new policy—which comes in advance
greater New York City, of new fee caps that take effect in Octo-
Northern and Central some key categories.
ber as part of the 2010 Dodd-Frank fi-
New Jersey, Baltimore nancial reform law—Visa also will lower
and Washington, D.C.
area stores ramped up in Seven-Eleven Japan Posts the variable rate charged for transactions.
In a conference call with analysts, Visa’s
March, when SEI added re- Sales Increase In July chief executive said the participation fee
vamped coffee bars, hot-foods SEI parent company Seven-Eleven will be based on a merchant's size, and
equipment and, in some cases, updated Japan Co. recorded a 10.1 percent gain the merchants' number of locations. He
store interiors with new walls, floors, ceil- in same-store sales in July over the pre- also said the new fees did not rule out fu-
ings, lighting and fixtures. The company vious year, reported Nikkei.com. This ture price changes. Due to the overhaul
said it's all part of a campaign to present a comes as sales at convenience stores in and the new fee caps imposed by Dodd-
consistent and fresh customer experience Japan rose 9.5 percent on the year in Frank, the company expects 2012 will be
in each of its stores in these markets. July as high temperatures boosted de- continued on page 23
To let consumers know that there's a
"new" 7-Eleven in town, the company
also kicked off a media blitz that includ-
ed television and radio spots, outdoor
Sacramento Valley
and online advertising, and newspaper FOA Joins NCASEF
ads for free or fresh and hot foods offer- The National Coalition is pleased
ings. Media messages conveyed that 7- to welcome the Sacramento
Eleven stores are good not only for
Valley FOA as its newest member
snacks and variety, but can be meal desti-
association. The recently formed
nations for breakfast, lunch and dinner.
FOA, headed by President Jay
Brar and Co-Vice Presidents
C-Store Visits Decline Jaspal Gill and Jaswinder
Sandhu, was accepted into the
In the Second Quarter
National Coalition by a vote of New Sacramento Valley FOA officers Harprit Dhillon, Jay
Historically, when gas prices rise, the full board. Brar and Ben Dhaliwal (Honorary Executive Chairman), at the
convenience store visits decline, and NCASEF July 15 Board of Directors meeting.
20 AVA N T I J U LY | A U G U S T 2 0 1 1 AVA N T I J U LY | A U G U S T 2 0 1 1 21Bits&Pieces CO N T I N U E D F R O M PA G E 2 1
7-Eleven advertising hit the big leagues
over the summer when the company placed
an ad in Sports Illustrated to plug its “49-
cent Big Gulp with a purchase of a Big
NCASEF Recognized By Sen. Durbin For
Bite” deal. • Kraft Foods is cutting the Role In Helping Advance Swipe Fee Reform
prices of its U.S. Maxwell House and Yuban In a June 30 letter to NCASEF Chairman Bruce Maples, U.S. Sena-
coffee brands (excluding the Gevalia, Tassi- tor Richard Durbin (D-IL) recognized the hard work of the Coalition
mo and the Maxwell House Int’l) by 6 per- and its Franchise Owners’ Associations (FOAs) in helping to defeat a
cent. • Family Dollar recently opened its last-minute attempt by the banking industry to delay debit card
7,000th store, in Memphis, Tennessee. The swipe fee reform. The letter was presented to Maples at the Coali-
company celebrated the milestone by mak- tion’s board meeting in Las Vegas on July 16.
ing a special seven thousand dollar dona- Sen. Durbin, the U.S. Senate Assistant Majority Leader and champion of the measure to
tion to the local Mid-South Food Bank. • reject the proposed delay, stated in the letter
Core-Mark Holding Company will be serving that “without the active support of your Coali-
as the broadline supplier to Circle K stores tion, local convenience stores and other small
in the Southeastern U.S., leading to the cre- businesses, this effort [the proposed delay] may
ation of a new division in Tampa, Florida. • well have been successful.”
Walgreens announced it is committing to As readers of Avanti know, the U.S. Congress passed legislation last year that sought to
convert or open at least 1,000 food oasis limit the arbitrary fees credit card companies charge retailers in debit card transactions.
stores across the country over the next five The banks subsequently launched an aggressive campaign to delay the implementation of
years. • Pharmacy chain CVS ran a promo- the measure.
tion over the summer offering customers Teaming up with 7-Eleven, Inc., the NCASEF successfully organized its FOAs and fran-
$10 free gas in exchange for spending $30 chisees to send messages to Congress explaining the impact that such a delay would have
in the store. • The Illinois Lottery has on small business owners. In the end, the effort was a success and the delay was defeat-
ended fiscal year 2011 on June 30 with ed. Sen. Durbin concluded his letter of thanks to Maples by asserting, “Make no mis-
$2,278 billion in sales—a 3 percent in- take—the engagement of your members in this important effort made a significant
crease over the previous year. This is its difference in our victory.”
ninth consecutive year of increasing sales. •
A study by Concordia University in Montreal
a "low point" for debit card processing in U.S. retail sales in 2010—a 3.1 per-
reveals that higher taxes do not cause
fees. The new program comes as Visa re- cent increase over 2009. The amount
smokers to quit. Examining data from Cana- ported better-than-expected fiscal third also represents 12.2 percent of world-
da’s National Population Health Survey, re- quarter results. wide retail sales of $69.617 billion. Ad-
searchers from the university determined ditionally, 7-Eleven had a store count of
higher prices do not persuade wealthier 6,586 locations in 2010, an increase of
smokers or those aged 25 to 44 to quit. • 5.5 percent over the 2009 count. Big-
Consumers are taking even more steps to box retailer Walmart took the No. 1
save money due to ongoing financial con- spot in the list, followed by Kroger at
cerns, according to a survey conducted by No.2 and Target at No.3.
SymphonyIRI Group. List making and 7-Eleven Makes Stores 100
coupon clipping are still top-of-mind for con- Top Retailers List
sumers as they struggle with high gas prices Franchisee Pitches In
7-Eleven was one of only two c-store
and question job stability. In addition, the chains to make it onto the National Re- To Clean Up Park
survey uncovered that consumers are turn- tail Federation's Stores 100 Top Retail- A 7-Eleven franchisee in Chico, Cal-
ing to the Internet to find the best CPG ers list, coming in at No. 40. The other ifornia has opted to stop selling single-
deals. • Connecticut recently became the was Quebec-based Couche-Tard, which serve liquor products in order to help
first state to require paid sick time, report- ranked at No. 75. According to the list, local police clean up a nearby park, re-
which was determined by U.S. retail ported the Oroville Mercury Register.
continued on page 24 sales, 7-Eleven generated $8.513 billion continued on page 27
22 AVA N T I J U LY | A U G U S T 2 0 1 1 AVA N T I J U LY | A U G U S T 2 0 1 1 23Bits&Pieces... continued from page 23
ed the Washington Post. Under the
new law, service-industry businesses
Work Opportunity Tax with 50 or more employees must give
workers an hour of sick time for each
Credit Means $$$ For 40 hours on the job. • Jiffy Lube re-
cently released its new iPhone applica-
Franchisees tion, which offers drivers the ability to
By Benjamin & Desiree Ackerman, store and organize vital vehicle infor-
Franchisees, Central Florida FOA mation on their Smart Phones. Addi-
I read an article a few months back in Avanti they earn from working. Here is the kicker—once tionally, the app arms drivers on the go
magazine about how a 7-Eleven franchisee in the employee reaches 400 hours, you receive 40 with tips like how to jump a dead bat-
Los Angeles made about $100,000 off the WOTC percent of the total amount they earn from working tery, what to do if their car overheats,
program last year. After reading that article, it in- for you, up to $2,400. In order to get the full $2,400 and where they can find the nearest
spired me to look into what exactly the WOTC the employee has to have made $6,000 from work- Jiffy Lube location. • General Motors
program is all about. WOTC stands for Work Op- ing at your store in one calendar year. Co.’s profit increased 89 percent in the
portunity Tax Credit. Essentially it means that if For example, if new employee John Smith
second quarter—to $2.5 billion—
you hire a sales associate that is on food stamps makes $8.00/hour and works 32
or government assistance, the government will hours a week, he makes
strengthened by higher prices for cars
$256/week. If John Smith works and a gain in market share, reported
120 hours or less and then quits, the Los Angeles Times. Revenue in the
“This year alone I have you get nothing. If he works three-month period ended June 30 rose
made over $13,300 off 121-400 hours, you get 25 per- almost 19 percent to $39.4 billion. •
cent of his pay, which equals A survey of quick-service restaurants
the WOTC program.” $242-$800 in your pocket. If by Consumer Reports reveals that Burg-
he works 401 and more
er King, KFC, McDonald’s, and Taco
pay you. Does this sound like it may hours, you earn 40 percent of
apply to you? I don’t know about you, his pay up to $2,400.
Bell scored poorly with consumers.
but most of my employees are on food stamps. John Smith will have to work 23.5 weeks or The main reasons cited were uninspir-
Currently, this year alone I have made over 752 hours at $8.00/hour in order to make $6,000. ing food and so-so service. • Nineteen
$13,300 off the WOTC program. My goal is to At that point you max out and get 40 percent of restaurant chains—including Burger
finish this year making $20,000 from it. Think of the $6,000 he earned, which equals $2,400. King, Denny’s, IHOP, Chili’s, Friendly’s,
it this way—the money you make from the I know of one franchisee who missed out on
WOTC program is tax credit money, which means $144,000 by not taking advantage of the pro- continued on page 34
three things: gram. How much money will you make this
1. It’s as good as cash. year? I hope it’s more than last year. If you have
2. You don’t have to share it with 7-Eleven. any questions you can call the Atlanta Tax Credit
3. It’s income that does not get taxed. Group at 404-454-5463 and speak with Preston Play The Name Game!
Here’s how it works: When you Look carefully at each page in this issue.
hire a new employee, have them fill “Work Opportunity Tax Credit essentially Somewhere in this magazine a line is hidden
out the WOTC two-page insert in the
means if you hire a sales associate on that contains the words $Name Game Win-
new hire packet and mail it in right
food stamps or government assistance, ner + person’s name + city$. If you find this
away. If they say yes to any question
line, and if it contains your name, call AVAN-
numbered 1-5 or fill in any bubbles the government will pay you.”
TI’s Offices at 215 750-0178 before the next
on page 2, then the U.S. government
will pay you up to $2,400 for employing them. Barnwell. He was a great resource for me. You magazine is published, and win this issue’s
How great is that? can also reach me by email at Benjamin.Acker- total. Uncollected money is automati-
Now for the details: If the employee works 0- man711@gmail.com if you have any additional cally added to the next issue’s
120 hours you get nothing. From 121-400 hours questions. This truly is an exciting way to “in- total. NCASEF Members only.
worked, you receive 25 percent of the total amount crease franchisee net income.” This issue’s total: $100.
UIN 153544 UPC 28000 98884
24 AVA N T I J U LY | A U G U S T 2 0 1 1CO N T I N U E D F R O M PA G E 2 3
Storeowner Vikramjit Gill told the news- ported the Associated Press. The com- revealed that 34 states had violation
paper he stopped selling the beverages pany donated an additional $2,000 to rates of less than 10 percent in 2010, up
on a trial basis about four months ago, the Crime Stoppers of Nevada organiza- from 22 states in 2009, and violations in-
and although he lost some business, Gill tion in honor of 31-year-old Amanpreet creased in 14 states.
said he has gained “a better Singh Mander, who was mur-
quality of customer.” dered on March 30 while
Earlier this year, local po- 7-Eleven has being robbed outside the $40 Million For
lice officers were looking for a Wells Fargo Bank near Sunset Japan Disaster Relief
way to address issues in and
raised over $40 Road and Eastern Avenue in
around Lost Park, and formed million world- Las Vegas. SEI is also posting a The 7-Eleven, Inc. global conven-
a direct correlation between separate $10,000 reward for ience retailing organization raised more
wide for Japan than $40 million in donations to assist
the availability of high-alcohol, information that leads to a
single-serve malt beverages quake victums. conviction. The total reward victims devastated by the March 11,
and the problems in the park. in the case is now $20,000. 2011, earthquake and tsunami in Japan.
They said they’ve noticed a reduction in The international fundraising efforts in-
the amount of litter, public drunkenness cluded canister contributions from 7-
and aggressive panhandling in Lost Park Tobacco Sales To Minors Eleven customers, as well as donations
since Gill stopped selling single-serve from the National Coalition of Associa-
At Record Low tions of 7-Eleven Franchisees, individual
booze, and Gill said he's noticed less loi-
tering around his business. Tobacco sales to minors dropped to franchisees, and company employees.
an all-time low in 2010 after increasing Fresh-food and bakery suppliers also
in 2009, reported USA Today. Retailers in provided support. Funds collected will
Reward For Slain Las the USA sold tobacco to minors 9.3 per- be directed to organizations that pro-
cent of the time, the newspaper stated, vide rescue and recovery, safety, and re-
Vegas Franchisee Raised citing a study by the Substance Abuse building services in the three Japanese
SEI has pitched in to increase the re- and Mental Health Services Administra- prefectures impacted the most—Miyagi,
ward for information about the recent tion. In 2009, 10.9 percent of tobacco re- Fukushima and Iwate.
murder of a Las Vegas franchisee, re- tailers had violations. The study further continued on page 34
2012 NCASEF Convention Dates And Location Announced!
July 8-12
Start making plans to attend the
National Coalition’s 37th Annual Convention and Hilton Hawaiian Village
Trade Show in the island paradise of Oahu, Hawaii. Mix business
with pleasure as you participate in business–building events and relax Waikiki Beach Resort
at the wondrous Hilton Hawaiian Village Waikiki Beach Resort in Honolulu.
The resort is spread across 22 lushly landscaped oceanfront acres on the Honolulu, Hawaii!
widest stretch of famous Waikiki Beach, and offers a wide variety of fun
activities for the entire family. More information to come! Trade Show Dates: July 11-12
AVA N T I J U LY | A U G U S T 2 0 1 1 27Servant Leadership In Today’s
Changing Economy
By Mike Rarus, Franchisee and Board Member, South Florida FOA
you, it is you. To some of you, you have no understand that in today’s economy, every
idea … YET. Each of us leads and directs our guest is a valued guest. Without them, we
teams in varied ways throughout the year, will perish. You are also leading them …
and we tend to fall into patterns, getting back to your store for repeat visits!
complacent at times when business is good, To serve, you must lead. By enhancing
turnover is low, and earnings are what we the experience your guests have, you have
hoped for. We become careless, sometimes served their needs. By making sure your
inconsiderate, and lazy, which I suspect has folks have been trained properly, you have
happened to all of us at one time or another. LED them the right way.
Servant Leadership is a somewhat for- Servant, in dictionary language, means to A pat on the back, a quick thanks, or a
eign phrase to many of our newer fran- be in the service
chisees, especially those who have come on of others. “A pat on the back, a quick thanks, or a cash
board in the last year or two. I have been
asked by several newer folks, “What exactly
Leader has payment to your employees makes a huge
many varied
is my Business Consultant talking about?” meanings, but difference in the way they treat your guests.”
This is a great question, and also a tough according to the same dictionary, means to cash payment to your employees makes a
answer to give depending on your under- “show the way.” When you try to couple the huge difference in the way they treat their
standing of the concept. Roughly four years two words—Servant and Leader—and com- (your) guests. Send your guests away badly,
ago, we as a company adapted this concept pare the rough definitions, you have to ask and they will not return. Teach your team to
of Servant Leadership—and refined it and yourself, “How does this actually work?” treat them as they would want to be treated
set it in motion—as a proactive way to em- Many of you have already figured this as a guest at any other business. By serving
brace our team members, guests, fellow em- out. I am no expert, but when your team ar- your guests properly, you will prosper with
rives at work each day is there a greeting their return visits.
“Teach your team to treat from you? Is there a thank you for being So please, as the clock ticks down on yet
there? How you treat your employees goes another year, pause and consider how you
guests as they would want a long way in determining their productivity rank yourself as a Servant Leader. Assess
to be treated as a guest at for your business. your business model if need be, or if you
Think about it this way: you are serving feel that you have fallen short in this area.
any other business.” their needs by employing them, training We believe if the concept is understood and
them, and paying them. You are also leading embraced by everyone, then everyone bene-
ployees, and supervisors. them—you make their schedules, job as- fits—you, your team members, and most
We (I was a former corporate employee, signments, direct them throughout the day, importantly, the hundreds of guests that
so pardon the plural) felt it was imperative and communicate to shifts when you are walk through your door every day.
that we shift our focus to the people we de- unable to be there. We wish you good luck, and good sell-
pend upon so dearly every day—our em- You serve your customers with greetings ing! n
ployees and our guests—so we instituted a at the coffee bar, by having the right prod-
management philosophy that embraces this ucts in stock, and responding to their needs, Mike Rarus can be reached at
new emphasis. Thus the Servant Leader cul- 954-978-0349 or
amongst others. You serve and lead every mbrarus@mindspring.com
ture in 7-Eleven was born. day because it is a way of life for you. You
What is a Servant Leader? To many of
28 AVA N T I J U LY | A U G U S T 2 0 1 1 AVA N T I J U LY | A U G U S T 2 0 1 1 29or,
Co o r d in at
’s ow!
a m
h
r Ve g a s F O A
F
r o g
E S
t, M DA P
S e
B y Ir is Yo s e va d a / L a s
The NCA rad
r n N
T
u t h e
e nt, S o
n &
Vic e P r e s id
l Conven
u t
aio
36th Ann
tion al C oal itio n’ s
n ot att end th e Na
e of yo u w h o did bu lou s
For thos n an d T rad eS h ow in fa
ve nt!
C on ve ntio na m az in g e
36th Annual ly , y ou m i sse d a
Las Vegas in Ju
For Board members it started off with three
days of meetings covering some of the most
important issues facing franchisees across the
country. These sessions included open con-
versations about accounting with SEI Vice
President and Controller John Ehrie, discus-
sions about maintenance issues with Steve
Hall of SEI Maintenance and Jim Reavey
from FM Facility Maintenance, the lat-
est developments in the tobacco cat-
egory with SEI Merchandising
Manager Rob Chumley, an SSI
Our 2011 Major Sponsors
discussion with SEI’s Leonid
Volovnik, and an overview of legisla-
tive issues with SEI Government Affairs
Director Keith Jones.
Hopefully, each of your FOA representa-
Acosta Dr Pepper Snapple Group MARS RJ Reynolds Tobacco tives will find a way to communicate the
Advantage Facilities Maintenance MARS Ice Cream Ruiz Foods major points of those discussions so we are
Mus-
Sales & Marketing General Media McLane Company Santa Fe Tobacco cular Dystrophy
all on the same page together.
Association. The auction was extremely suc-
Altadis USA Communications MillerCoors Brewing Co. Simply OJ After the Board meeting, our wonderful
cessful, raising over $50,000 for the MDA. It
Altria General Mills Mother Parker's Smokey Mountain convention and trade show began. We had
was not an easy feat organizing this
Anheuser-Busch Heineken Tea & Coffee Snyder's over 1,900 attendees! The convention itself
fundraising event, and I could
AON Risk Services Hostess Nestle Confections Sunny Delight featured seminars, entertainment and some
not have accomplished it
great food! Everyone that registered had the
Southwest, Inc InComm Nestle DSD Company Swedish Match without the support of
opportunity to see some great Las Vegas
BIC Corporation Insight Beverage Nestle Professional Swisher shows for FREE.
my local FOA board
Bon Appetit Jack Link's Nestle Purina The Hershey Company members, my
The trade show floor was quite impres- friends, and
Campbell Sales Johnson & Johnson Nestle Water TNT Marketing sive, filled with over 300 exhibiting vendors my family.
Coca Cola Kan-Pak PATCO TSN and much energy. Our vendor partners went
ConAgra Kellogg's Company PepsiCo Unilever Ice Cream all out with promotions, displays, samples, continued
on page 32
Crossmark Kraft Perfetti Van Melle USA Today prizes, and opportunities to help you improve
Crown Imports Kretek Procter & Gamble Whitewave Foods your bottom line!
Dean Foods LALA USA QTG-PepsiC0 Wrigley On the evening of the international buffet,
I was fortunate enough to be the host for the
Diageo-Guinness Lone Star Plastics Red Bull
auction event benefiting the
AVA N T I J U LY | A U G U S T 2 0 1 1 31
30 AVA N T I J U LY | A U G U S T 2 0 1 1Thank you to all the vendors who do- 25664573.html).
nated the fabulous prizes for the auc- We also had Max Adler, who plays
tion, which allowed all attendees to bid Dave Karofsky on the hit TV show GLEE,
and help raise money for the MDA. Dur- at the auction and the trade show before-
ing the event, we were graced with the hand. He shared his personal story of his
presence of the talented Abbey Umali, mother’s and grandmother’s battle with
the National Goodwill Ambassador and muscle diseases. Although he plays a bully
poster child for the MDA. She sang a on the show, in real life he is far from it
beautiful song for us and shared her and is a true champion—not only for the
story of raising funds for the associa- MDA, but also an advocate against bully-
tion. She created a read-athon and ing! It was a great evening and we ex-
raised over $20,000. Watch her inter- ceeded our goals for that night and for
view on the Telethon Station KTNV’s the year. So far in 2011, we—together
“The Morning Blend” in Las Vegas with our customers—have raised over
(www.vegasmorningblend.com/videos/1 $420,000 for the MDA. n
The Must-Attend Event Of The Year!
The most amazing thing about the Nation- ics. John Ehrie took questions from the
al Coalition’s 36th Annual Convention and audience and handed out forms fran-
Trade Show was what you missed if you chisees could fill out with store-specific is-
were not there! Each year the convention sues that would get immediate attention.
hosts interesting seminars, guest speakers, Where else could you get such access to
and events to make participation worth- Accounting?
while, and this year’s “Beating the Odds” While franchisees were having their
event was no different. The Paris Hotel in funny bones tickled by comedian Mark
Las Vegas attracted a record number of Kornhauser at the “Beating The Odds”
franchisees, as well as an overwhelming luncheon, everyone was given a Harrah’s
number of vendors at the trade show. All-Stage Pass good for unlimited access
Family-friendly activities and the allure of to any of Harrah’s 18 shows over two
Vegas helped attendance, but the busi- days. What a deal!
ness-related aspects of the convention
were the biggest draw. Golfers had plenty of time to network
with fellow franchisees and vendors dur-
The NCASEF Board met for two and a ing Tuesday’s Joe Saraceno Charity Golf
half days preceding the convention, and Tournament benefiting Hire Heroes USA,
franchisees were welcome to attend and at the Sunrise Vista Golf Course at Nellis
observe. It was well worth the time to ar- Air Force Base. Throughout the day play-
rive and get up early to witness firsthand ers were treated to an impressive display
our National Coalition at work. of the U.S. Air Force’s might as various
The opening night reception was a de- fighter jets took off from the nearby air-
lightful affair featuring the elegant music field and flew over the course.
of pianist and songwriter Diane Lewis. On Wednesday morning, technology
Monday morning, National Coalition The highlight of the Grand Banquet was
Chairman Bruce Maples and the Executive
expert Amber Mac provided enlightening
insight on how franchisees can use social Make Plans for Hawaii the awards ceremony, with honors present-
Officers filled franchisees in on the latest ed to both vendors and franchisees.
developments with current issues—Busi-
ness Transformation, FM Facility Mainte-
media tools like Facebook, Twitter,
FourSquare and Groupon to attract new July 8-12, 2012! NCASEF officers also presented a check for
customers and build sales. Motivational $310,000 to Hire Heroes USA, the result of
nance, SSI, and breaches for under equity. The Charity Auction benefiting the Muscu- fundraising efforts conducted during the Joe
speaker Robert Stevenson delivered on
Afterward, the officers were available to lar Dystrophy Association that evening proved Saraceno Charity Golf Tournament and the
productive ways to deal with corporate
address store-specific problems—a great to be another popular event with convention cause equity program that ran in stores dur-
and employees, and the importance of
chance for storeowners to take their con- attendees. It was truly an amazing demon- ing April and May. The evening was topped
keeping customers happy.
cerns straight to franchisee leadership. stration of the charitable commitment of 7- off with laughter by funnyman Dan Nainan.
That afternoon over 300 vendors Eleven franchisees.
Immediately following, SEI Vice Presi- filled the trade show floor, eager to show Without question, if you missed “Beating
dent and Controller John Ehrie, Senior Di- NCASEF General Counsel Arnold Hauptman the Odds,” you missed a great time with fran- self to mark your calendar for next year’s con-
off their latest products and offer great
rector of Inventory Accounting Anne Bond, presented the last of the seminars on Thursday chisee and vendor friends and the only na- vention July 8-12 at the magnificent Hilton
deals. If you had never been to a Nation-
and Senior Director of Revenue Account- morning. He covered various essential aspects tional convention of the year for franchisees. Hawaiian Village Waikiki Beach Resort in
al Coalition trade show before this one,
ing Brian Padgett provided updates on of the franchisee agreement, and was available The business knowledge and unique access to Honolulu, Hawaii. Do you need more motiva-
you were most certainly blown away by
SSIs, scanning, MDS reports, and the avail- after his presentation to offer legal advice to those who can help you with store issues are tion? See you there! n
the mere scope of it! It was impossible
ability of audit results, among other top- any franchisee who requested it. reasons enough attend! You owe it to your-
to see it all in two days!
AVA N T I J U LY | A U G U S T 2 0 1 1 33CO N T I N U E D F R O M PA G E 27
Bits&Pieces... continued from page 24
480-volt connection, and vehicle owners Chevy’s and El Pollo Loco—have agreed
initially will be able to get electricity for to participate in the Kids Live Well initia-
California 7-Eleven Goes Electric tive and offer healthier children’s meals
no charge while Recharge-N-Go moni-
A San Bernardino, California 7- tors usage patterns to determine prices. as worries increase about the role of fast
Eleven is the first store to feature an food in childhood obesity, reported the Los
electric car charging station, reported Angeles Times. • U.S. gasoline demand
the San Bernardino Sun. The location was Flash Mob Hits Maryland fell 3.3 percent from a year earlier as av-
developed by a Los Angeles attorney
7-Eleven Store erage prices at the pump gained 35 per-
who also created a new company called
Re-charge-N-Go to install the charging A 7-Eleven store in Germantown, cent, reported Bloomberg. • Kraft Foods
stations. The new 7-Eleven charging sta- Maryland was recently the scene of a announced its Board of Directors intends
tion features two chargers, one with a flash mob robbery, reported local Balti- to create two independent public compa-
220-volt connection and another with a more news station NBC 4. As many as nies: a high-growth global snacks busi-
continued on page 36 ness with estimated revenue of
approximately $32 billion, and a high-
margin North American grocery business
The Power of Nice with estimated revenue of approximately
$16 billion. • Many convenience stores
By Ravinder Waraich
throughout Utah are placing newspapers
Vice President, Columbia Pacific FOA behind the counter after coupon thefts
We all learned how to play nice in kindergarten, but some- from newspapers have increased sharply,
where down the road it was lost or forgotten. We forgot the gold- the Salt Lake Tribune reported. • New re-
en rules we learned when we were growing up, and started
search from Mintel Foodservice found
adapting the tough rules to become successful in business.
I first became aware of “The Power of Nice” by Linda Kaplan Thaler and Robin Koval
that value and flavor trump healthy
on Oprah’s Book Club. The book serves as a reminder that in the long run, nice guys do menu selections. According to the study,
finish first. This book is amazing. I highly recommend to everyone in business to read this 41 percent of restaurant-goers think eat-
book and start applying the methods. If everyone ing healthfully at their favorite eateries is
“Negative impressions are starts using acts of kindness in the business world, more expensive, and 14 percent look for
it would be a much better place. the cheapest items on the menu when
like germs, they infect you One of the principles the authors covered very deciding what to order. • In an effort to
and everyone around you.” well in this book is that “negative impressions are cater more to health-conscious consumers,
like germs, they infect you and everyone around Starbucks recently introduced its line of
you.” At the end of the day, it’s about how we live our lives and what we value. Bistro Boxes, small compact meals
I keep a copy of this book in my store and make it a required reading for my new hires.
boasting less than 500 calories, reported
It makes a huge difference in people’s attitude when it comes to customer service and
working together as a team.
USA Today. • Both chambers of the New
Oftentimes, we are too busy taking the aggressive approach in the business world and Hampshire legislature hammered out a
forget the power of a little kind gesture. If we take the time to appreciate people and use deal that will decrease the state’s ciga-
kind words, it can go a long way in business relationships. I believe if we all read this book rette tax by 10 cents. The move came
and apply these simple approaches in our personal and professional lives, it will bring as the state House of Representatives and
huge success to our people and our organization. Senate worked to finalize the budget. •
I challenge every franchisee to pick up this book and apply some of the simple meth- Walmart announced it will open between
ods toward your employees and customers; it will bring in positive energy into our stores. 275-300 stores serving the Department
On the other hand, I request SEI to pick up a copy of “Power of Nice” and make it a re- of Agriculture designated food desert
quired reading in the organization. Stop hammering hardworking franchisees with LONs
areas between now and 2016. These
and breaches, and instead start using “Power of Nice” methods toward your own employ-
ees and franchisees. I strongly believe by doing this everyone will bring lots of happiness
stores, in both urban and rural areas, will
and positive energy into our stores. Happy employees mean happy customers, which means continued on page 36
higher sales and ultimately higher gross profit. It’s a win-win situation for everyone. n
34 AVA N T I J U LY | A U G U S T 2 0 1 1 AVA N T I J U LY | A U G U S T 2 0 1 1 35CO N T I N U E D F R O M PA G E 3 4
three dozen young people entered the with it, according to convenience store
Bits&Pieces... continued from page 34
location during the early morning hours research by The NPD Group. NPD's provide access to groceries for more than
of August 14 and took candy, drinks and Convenience Store Monitor finds that 800,000 people living in food deserts. •
snacks, police said. A man identified as 86 percent of dispensed coffee purchas- Walgreens said it plans to offer electric
the son of the store’s owner es are planned and seven per- vehicle charging stations at approximate-
told NBC 4 that the clerk in
Up to three dozen cent are purchased on a deal. ly 800 locations across the country by the
the store at the time of the Consumers of coffee and end of the year, making it the nation’s
robbery hit a panic button to young people other dispensed beverages largest retail host. Major markets expect-
alert police to the robbery, entered a Maryland are high frequency buyers ed to host these sites include Boston,
but did not confront any of
7-Eleven and who represent 68 percent Denver, Los Angeles, New York City, San
the young people. Police are more visits than the average
took candy, drinks Francisco and Washington, D.C. Select lo-
using the store’s video sur- convenience store customer.
veillance footage to identify and snacks.
cations in Florida, New Jersey, Oregon,
Coffee and other dis- Tennessee and Washington will also re-
the perpetrators. pensed beverages represent ceive EV charging stations. • Subway re-
31 percent of unit purchases made in a
cently announced that a franchisee in
convenience store, and of the dis-
Coffee Drives C-Store Visits pensed beverage consumers, 33 per-
Toledo, Ohio, has opened the brand’s
Getting a cup of coffee or another 8,000th non-traditional location in a
cent are looking for coffee, 11 percent
dispensed beverage is the single-mind- cappuccino or latte and 3 percent hot
Chrysler and Jeep assembly plant. • Cig-
ed mission of many high-frequency con- or iced tea. Typically, with the dispensed arette makers R.J. Reynolds, Lorillard,
venience store visitors, and often they'll beverage, incremental purchases on an Liggett Group, and Commonwealth
grab a donut or something else to go average visit total $6.83. Brands Tobacco have partnered to sue the
FDA over its new graphic labels and
smoking cessation advertising require-
NRF Releases Guide On How To Deal ments, calling them a violation of their
free speech rights under the First Amend-
With Flash Mobs ment, reported Reuters. • Several grocery
The National Retail Federation (NRF) recently released a white paper pro- chains have decided to do away with
viding information and recommendations for dealing with flash mobs. According to self-checkout lanes in order to provide
the report, “Multiple Offender Crimes: Preparing For and Understanding the Impact of more customer service and a personal
Their Tactics,” flash mobs involve groups or gangs, often teenagers, swarming a store and touch, reported the Dallas Morning News.
overwhelming store employees with their numbers and speed. Over three-quarters (79 per- Albertsons is removing self-checkout lanes
cent) of retailers polled by the NRF report being a victim of a multiple offender crime in the
in each of its more than 200 stores in
past 12 months, with some of these incidents (10 percent) involving flash mob tactics.
seven states, while Kroger said it is con-
AMONG THE NRF’S RECOMMENDATIONS FOR DEALING WITH FLASH MOBS: sidering changing its self-checkout lanes
• Attempt to discourage the thefts by re-positioning associates near key areas of the store and into one customer line for multiple,
high-value merchandise. staffed express lanes. • The National
• Instruct employees and customers to retreat into a secure part of the store. Confectionery Sales Association plans to
• To prevent the offenders from injuring associates, customers or causing additional damage hold its Candy Hall of Fame event Octo-
to the store, stores should follow the prevention and apprehension guidelines issued by the ber 14 thru October 16, 2011 in Tampa,
corporate office. Florida. • Boston Market has teamed
• During the incident take mental notes of each offender, including their physical description with Blockbuster Express for a new “Din-
and clothing. Immediately following the incident, document your observations. ner & A Movie” promotion, in which cus-
• Additionally, take a mental note of any property stolen, damaged or other pertinent informa- tomers receive a voucher for a one night
tion about company loss. Immediately following the incident, document your observations. $1 DVD rental with any meal purchased
• Note and preserve any areas touched by offenders in order to facilitate the collection of evidence after 5:00 pm. • Facing slumping sales,
• Any video of the event can assist in the documentation process and should be readily avail-
continued on page 40
able for law enforcement officials.
36 AVA N T I J U LY | A U G U S T 2 0 1 1 AVA N T I J U LY | A U G U S T 2 0 1 1 37From the
National Office
E
M I NG TH
S F OR S T R I B UTION MODEL
AN DI
TR By Bruce Map
les, Chairman
National Coalition of Associations of 7-Eleven F
ranchisee
s
A s we start to close out the of fresh foods was presented to fran-
third quarter and put the chisees as a system that would give us a
100 days of summer behind competitive advantage in the market-
us, franchisees will begin two place. No other convenience store op-
dising Bob Cozens.
National Coalition leadership re-
viewed a plan for CDC flat fees with the
Coalition Board at our May meeting
major initiatives that could have sub- erator could deliver a system that in Chicago that was jointly de-
stantial impact on the operation of our supplies stores with daily deliv- veloped with franchise lead-
stores and our profitability. The transi- ery of fresh foods, and that ership. While all changes
tion from CDC flat fees to a merchan- still remains true today. In were not unanimously
dise markup has started, and the spite of this, sometime over agreed upon, it was a dra-
Business Transformation (BT) pilot the past ten years our pro- matic improvement and a
shift to a McLane distribution model is prietary system transformed big step toward improving
well underway. Flat fees have been re- into something it was never franchisee profitability. The
moved in several CDC markets, and a meant to be. The current CDC plan focuses on what items are
schedule for removal in all CDC mar- system across the country started deliver- right for the stores and at what frequen-
kets has been shared with the fran- ing everything from heavy liquids to cell cy items should be delivered.
chisees affected. Several California phones in an attempt to prevent a flawed Changes in delivery frequency for
stores already have begun testing the delivery system from failing. The flat fee items such as milk, which is moving to a
McLane Business Transformation deliv- implemented in an attempt to shore up a five-day delivery cycle, and commissary
ery model. declining model, and force volume and fresh bakery, delivered seven days a
While these changes do not affect all through the CDC, did little to improve week, will result in cost savings that can
stores directly, they represent a major franchisees’ store sales or profits. be passed directly onto the stores. Deter-
philosophical change in our distribution Today we have an opportunity to help mining the ideal order and delivery fre-
system model that will eventually impact improve that distribution model. Fran- quency, as well as delivery appro-
all franchisees. The original CDC con- chisee input is needed to make sure we priateness (i.e., milk) for each product
cept was rolled out with little don’t repeat the “mistakes of line in the CDC should result in better ef-
or no franchisee input “The the past.” The first meet- ficiencies, lower product cost, and high-
and needs to change. ing on CDC Optimiza- er gross profit dollars for the stores.
SEI has assured us BT pilot shift to a tion was held July 29, Reducing commissary and bakery costs
the long-time legacy McLane distribution at the Long Island to improve stores’ total gross profit will
issues franchisees model and changes to the CDC. Franchise be an ongoing process that will need
have had with the leaders from the franchisee input.
original CDC roll-
CDC could have substantial National Coalition, A communication was sent on Au-
out, which began impact on the operaion the United Fran- gust 15 to all stores affected by the flat
over a decade ago, of our stores and our chise Owners of fee change to allow sufficient time for
are being addressed. Long Island (UFOLI), review. A store-specific analysis will be
profitability.”
Addressing these issues and the NBLC met with continued on page 40
with franchisee input NOW representatives from 7-
will result in a distribution model Eleven, Inc., including Senior VP BRUCE MAPLES CAN BE REACHED AT
that will better support our stores with Merchandising and Logistics Jesus Del- 520.577.8711 or
the products and services we need. gado-Jenkins, Senior Director Logistics nationaloffice@ncasef.com
The original concept of daily delivery Christi Clinger and VP Group Merchan-
38 AVA N T I J U LY | A U G U S T 2 0 1 1 AVA N T I J U LY | A U G U S T 2 0 1 1 39From the
National Office
39
PAG E
FROM
UED
CON
TIN
Bits&Pieces... continued from page 36
sent to each store as the changes are the CDC will only be successful if sup- Burger King has begun to test new items
rolled out so that every franchisee will ported by franchisees.
like fruit smoothies, low-fat parfaits,
be aware of how the changes will im- A product assortment driven by fran-
oatmeal, salads, and specialty coffees in
pact your store. chisees could be our biggest com-
Daily delivery of fresh petitive advantage and help
order to attract more customers, Nation’s
foods today is one of ensure success. The right
Restaurant News reported. • Couche-Tard
our biggest competi- “Addressing CDC regional product assort- recently announced its fiscal year 2011
tive advantages. De- ment, delivered by the net earnings are up 22.2 percent, and its
issues with franchisee
livering the right CDC at the right price, same-store merchandise sales in the
input NOW will result in a
items at the best also decreases the U.S. are up 3.6 percent and down 2.1
distribution model that will percent in Canada. • Walgreens recently
cost through a sys- number of trucks in
tem that gives us a better support our stores our lots and gets pretty introduced it’s Nice! line of private label
competitive advan- with the products and close to delivering on products, the Chicago Tribune reported.
tage increases that services we need.” the original CDC con- The line includes more than 400
advantage. Each FOA cept. Leveraging our size items—mostly grocery and paper prod-
in a CDC area needs to give and scale to develop a delivery ucts—scheduled to roll out to all 7,742
input and provide feedback to system that accurately reflects our cus- Walgreens and Duane Reade drugstores
SEI on what is best for the stores in their tomers’ needs will provide the market- continued on page 46
area. Fresh food initiatives supported by place advantage we desire.
40 AVA N T I J U LY | A U G U S T 2 0 1 1Business
Issues
T H U SIASM BUILDS
EN
A ND I S L A ND CDC MEETING
LE ONG
O RA A T L
a l e a , E x e c u t i ve V i c e C h a i r m a n
M By Joe G National Coalition of Associations of 7-E leven Franchi
sees
I recently attended a meet- in the room. Both franchisees and SEI
ing in Long Island, New agreed that we indeed have opportu-
York between area fran- nities to utilize this system. It was a wel-
chisees and SEI to discuss removing comed sight to see. Franchisees were
meeting, the overall feeling we walked
away with was optimism. We believe
this CDC model will work, which is
great because we want to stay ahead of
the CDC flat fee and instead imple- asked for input, and we had an honest our competition with new items.
menting a merchandise markup discussion. Not only was the Given how the slumping economy
model. The meeting included Nation- meeting very positive, but has been affecting retail busi-
al Coalition Chairman Bruce Maples, it also led to a committee nesses in general, one of
UFOLI President Tariq Khan, SEI being formed. Tariq the biggest things we
Senior Vice President of Merchandis- Khan was instrumental can gain from this
ing and Logistics Jesus Delgado-Jenk- in assembling the com- communication
ins, Vice President of Group mittee, and he was able model is that we
Merchandising Bob Cozens, and Lo- to rally his folks and have returned to what
gistics Senior Director Christi Clinger, raise their enthusiasm the franchise system
as well as several UFOLI Board Mem- during the meeting. The needs to do—meet with
ber franchisees. The agenda was set by committee, which is comprised franchisees, listen to our con-
SEI, so I expected this meeting to be of franchisees and SEI folks headed by cerns, and work with us to meet our
like every other one we’ve had with Christi Clinger, will soon meet to dis- guests’ needs. We did this many years
our franchisor. Boy, was I wrong. cuss new and potential items that we ago and I think we’ve
After SEI introduced the agenda, can bring through the CDC. drifted away from
we started to discuss the changes to Moving forward, if this is the it. Getting back
“Have
the CDC delivery system model SEI is going to use in to this model
and the flat fee. Fran- regard to the CDC— of inclusion we paved the
“When
chisees, true to spir- seeking franchisee and open way back to a coop-
it, began asking the discussion input for merchan- communi- erative effort between
questions and turned to CDC dising opportuni- cation is a
voicing concerns ties—I think we positive win
franchisees and
merchandising opportu-
regarding the have paved the way for both fran- management?”
reason and logic nities, the meeting back to the intent chisees and SEI.
behind certain grew positive and of franchised sys- After all, we are
decisions made by franchisees seemed tems: a cooperative partners in the stores we
corporate. effort between fran- operate.
At some point dur-
enthused.” chisees and manage- I want to thank all the franchisees
ing the meeting, the dis- ment. I have always said that that attended the meeting. It was
cussion turned to CDC mer- we, as franchisees, have bought great to see your enthusiasm and
chandising opportunities, or what the into a franchise system, and I believe morale on the rise. n
CDC can, and actually should, deliver when you buy into a franchise system
JOE GALEA CAN BE REACHED AT
to our stores. The meeting then took the franchisor has an obligation to sit
650.906.7936 or
a reversal, which was very positive, and with you and work with you to meet jagalea@aol.com
you could sense the enthusiasm build the needs of your guests. Leaving this
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