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C O M
J U LY/AU G U ST 2 01 5
POLITICS
AND
PIE
AT NATSO'S DAY ON
THE
TRENDS
ISSUE
CHAIRMANS LETTER
B
TOM HEINZ
CHAIRMAN OF THE BOARD
www.natso.com
Norms are interpreted as shared conceptions about what identities or roles exist
and what actions and attributes define a person as a member in good standing with a
particular rank.
Psychologist Francesca Canian
Tom Heinz
Coffee Cup Fuel Stops & Convenience Stores, Inc.
NATSO 2015 Chairman
WWW.NATSO.COM
JULY/AUGUST 2015
THE MEMBER MAGAZINE OF NATSO, REPRESENTING THE TRUCKSTOP AND TRAVEL PLAZA INDUSTRY
THE
TRENDS
ISSUE
C OVE R STO RY
11 P olitics and Pie at
NATSO's Day on
Capitol Hill 2015
FEATU R E S
08
THE TRUCKSTOP
OF THE FUTURE
11
DAY ON
CAPITOL HILL
Chairman
Tom Heinz
Editor
Amy Toner
Associate Editor
Mindy Long
12
TRUCKSTOP AND
TRAVEL PLAZA
OPERATORS FIND
WAYS TO BOOST
FOOD SERVICE
16
NATSO CHAIRMAN'S
CIRCLE MEMBERS
D E PARTM E NTS
03
Chairman's Letter
NAVIGATING THE NORMS
06
Great Ideas!
THREE FOOD TRENDS
THAT BOOST SALES
CHOICE IS KEY
18
22
FIVE FACTORS
AFFECTING THE
FUTURE OF FREIGHT
MOVEMENT
20
Foundation Update
CUSTOMIZATION +
VARIETY = THE FUTURE
OF BEVERAGE SALES
25
Member Profile
COOKIES AND RICE
CRISPIES AT PINE CONE
TRAVEL PLAZA
WRITTEN PLANS
HELP TRUCKSTOP
AND TRAVEL PLAZA
OPERATORS PREPARE
FOR THE FUTURE
26
DARRENS GREAT
Darren Schulte, NATSOs vice president of membership and a retail expert, writes a biweekly retail column on NATSOs
blog. We feature the best here in Stop Watch magazine. Join Schulte on NATSOs website at www.natso.com/great-ideas
to read his digestible retail tips every other Thursday.
July/August 2015
at dschulte@natso.com or (703) 739-8562 and hell answer your question in the next
Darrens Great Ideas! for Independent Operators.
CHOICE IS KEY
www.natso.com
BY MINDY LONG
TRUCKSTOP
of the
FUTURE
To stay relevant, businesses
have to change as their
customers change. New
innovations can drive sales
and create convenience, and
the truckstops and travel
plazas of the future will
embrace improvements that
will enhance the customers
experience. Some early
adopters are all ready
rolling out technology
and new designs that may
eventually become the norm.
GAS
July/August 2015
FOOD
DRIVE-THROUGH LANES
As customers look for even greater convenience, the number of drive-through
locations at truckstops and travel plazas is likely to increase. NATSO member Jack Grewal, president of Grewal Brothers Corp., recently opened a
drive through for four-wheel customers at the companys location in Paulding, Ohio. Since it opened, a steady stream of customers has been coming
through, Grewal said.
Customers can purchase anything at the drive through that is for sale in
the store, be it a gallon of milk or a case of beer. Beer and pop are the most
popular, but our overall sales are doing pretty good, especially in the winter
time because people dont want to get out of their cars, Grewal said, adding
that the drive through has one dedicated employee.
DRIVE-THROUGH SCALES
The Weigh My Truck app from CAT Scale Co., based in Walcott, Iowa, lets
drivers visit a scale, weigh and receive their information without ever having
to open their door, roll down their window or get out of the truck. Drivers
receive a copy of their ticket via email or access it online for six months. Drivers can also set their preferences, so a weight ticket is automatically sent to
someone at their company.
A GROWING NUMBER
OF OPERATORS ARE
TURNING TO REALTIME INFORMATION TO
HELP THEM IMPROVE
THEIR PRODUCT MIX
AND THEIR OVERALL
ATMOSPHERE.
www.natso.com
WELCOME
REAL-TIME FEEDBACK
July/August 2015
Politics
AT NATSO'S DAY ON
and Pie CAPITOL HILL 2015
members made their annual pilgrimage to Capitol Hill
May 1113, meeting with Senators and Members of
Congress to voice how vitally important the truckstop and travel plaza
industry is to the national economy and how Congressional votes affect
its ability to thrive.
Nearly 50 NATSO members met with their elected officials to discuss
such critically important issues as the need for a long-term highway bill
funded by the federal motor fuels tax and to oppose expanded
tolling and rest area activities.
NATSO members attended a luncheon with guest speaker
Neil Chatterjee, a senior policy advisor to Senate Majority
Leader Mitch McConnell (R-Ky.).
NATSO
www.natso.com
11
TRUCKSTOP AND
TRAVEL PLAZA
OPERATORS
12
July/August 2015
TREND
BY MINDY LONG
Food service is becoming a more important component of the overall sales at truckstops
and travel plazas, and todays customers are demanding greater quality and convenience
in the food they purchase. To be successful in food service, operators need to look at
several aspects of their business, including their current offerings, their current customer
demographics, and the wants and needs of customers they hope to capture.
13
July/August 2015
OPTIMIZING OFFERINGS
Schulte said once operators understand who their customers are and
what they want, they can consider
making over their menus.
But evolving doesnt mean simply adding to the menu. People
in our industry tend to let their
menu grow, but they dont cut anything. For everything you add to the
menu, you probably should be taking something off, Lawshe said.
Fisher said, You have to evaluate
and say, Is this still a viable product
to have?
To make the most of their menus,
Schulte recommends operators look
at customization rather than growing their SKU counts. It is the 80-20
rule. Figure out the 20 percent of the
products in the food service that you
sell the most of and expand on those,
Schulte said. You can focus on your
chili and put chili on Fritos or
hot dogs or spaghetti. It is the
customization that matters.
[Customization is also important in a locations beverage
offering. See related story
page 20].
www.natso.com
15
Patty Looney
394 S.W. 27th Terrace
Delray, FL 33445
(561) 632-7347
(561) 921-0367
plooney@chevron.com
www.deloperformance.com
Federated Insurance
Jerry Leemkuil
121 E. Park Square
Owatonna, MN 55060
(507) 455-5507
(507) 455-7840
jleemkuil@fedins.com
www.federatedinsurance.com
First Data
Coca-Cola Refreshments
J.T. McMahan
2500 Windy Ridge Pkwy.
Atlanta, GA 30339
(770) 200-8892
(770) 989-3565
jmcmahan@coca-cola.com
www.thecoca-colacompany.com
Bridgestone Commercial Solutions
Roger Phillips
535 Marriott Drive, 8th Floor
Nashville, TN 37214
(615) 937-3405
(615) 493-2712
phillipsroge@bfusa.com
www.trucktires.com
CAT Scale Co.
16
July/August 2015
Gilbarco Veeder-Root
Gordon Price
724 Lawn Road
Palmyra, PA 17078
(717) 507-0363 or
(800) 251-9104 ext. 259
(800) 842-1992
gprice@dasinc.com
www.dasinc.com
Double Coin Tire
Dan Hudson
5565 Glenridge Connector NE
Atlanta, GA 30342
(703) 398-5831
(402) 315-5452
dan.hudson@firstdata.com
www.firstdata.com
Jim Manning
4778 Devonwood Ct.
Lakeland, FL 33801-0370
(813) 476-1918
(626) 301-9579
jmann21741@aol.com
www.doublecointires.com
Paul Kaper
7300 W. Friendly Ave.
Greensboro, NC 27410-6232
(336) 547-5748
paul.kaper@gilbarco.com
www.gilbarco.com
Howes Lubricator
Stephen Sikorsky
60 Ocean State Drive
North Kingstown, RI 02852
(401) 294-5500
(401) 294-4229
steves@howeslube.com
www.howeslube.com
Don Paddock
1121 Flint Meadow Drive
Kaysville, UT 84037
(801) 390-3820
(801) 991-1821
dpaddock@ksgdist.com
www.ksgdist.com
McLane Co. Inc.
Paragon Solutions
Michael Lawshe
201 Main St., Suite 1150
Fort Worth, TX 76102
817-927-7171 ext. 201
(817) 927-8131
mlawshe@paragon4design.com
www@paragon4design.com
Shell Lubricants
Christian Peters
3400 Watertown Place
Birmingham, AL 35243
(713) 241-2571
(281) 482-4189
john.peters2@shell.com
www.rotella.com
The Truckers FriendNational Truck
Stop Directory
Sean Luce
4747 McLane Parkway
Temple, TX 76504
(254) 742-3675
sean.luce@mclaneco.com
www.mclaneco.com
Michelin North America
Robert Lake
3200 Rice Mine Road N.E.
Tuscaloosa, AL 35406
(205) 248-1235
(205) 345-0958
rlake@rrpub.com
www.rrpub.com
Renewable Energy Group
Josh Jarvis
One Parkway South
Greenville, SC 29615
(864) 458-4574 or (505) 307-8797
josh.jarvis@us.michelin.com
www.michelintruck.com
Mobil Delvac
Jon Scharingson
416 S. Bell Ave.
Ames, IA 50010
(515) 239-8042
(515) 509-1259
jon.scharingson@regi.com
www.regi.com
S&D Coffee & Tea
Craig Barr
3225 Gallows Road
Fairfax, VA 22037
(360) 601-9797
(280) 445-2299
craig.w.barr@exxonmobil.com
www.mobildelvac.com
Robert de Vos
P.O. Box 476
Clearwater, FL 33757
(727) 446-2866
(727) 443-4921
rdevos@truckstops.com
www.truckstops.com
Valvoline
Gigi Rollins
c/o Bobbi Brophy
3499 Blazer Parkway
Lexington, KY 40509
(843) 793-8490
(859) 357-2359
grollins@ashland.com
www.valvolinehd.com
John Morris
300 Concord Parkway S.
Concord, NC 28027
(800) 933-2210
(804) 794-2725
morrisj@sndcoffee.com
www.sndcoffee.com
www.natso.com
17
TREND
BY MINDY LONG
Highway congestion, the driver shortage and supply chain optimization are all causing
shippers and carriers to examine the way they move freight. The top 10 percent of all
trade corridors move 79 percent of all goods, according to a report by the Brookings Institute, but the amount of traffic on those corridors could shift due to these five factors.
CHANGES IN DISTRIBUTION CENTERS
The need to get items to
consumers quickly coupled with concerns over
aging infrastructure and supply chain
disruptions is driving a growing number of retailers and shippers to position product regionally throughout
the country. They are also turning to
a variety of fulfillment methods, ensuring they have adequate supplies of
just-in-time along with just-in-case
inventory available when it is needed.
Tom Jensen, a transportation policy expert for UPS, said the shipping
company is seeing more retailers leverage their stores as mini-distribution
centers in an effort to optimize their
supply chain, which moves inventory closer to consumers and allows
retailers to minimize markdowns by
shipping an item to an online buyer
instead of offering it on sale.
18
July/August 2015
CONGESTION
Congestion on the nations
highways will cost Americans $276 billion annually
by 2020, according to a report from
DRIVER DEMANDS
The driver shortage is continuing to increase, and
carriers are doing everything they can to attract and retain
drivers. For many carriers, that has
meant creating more regional routes
and shortening the length of haul so
drivers are home more often.
This reduction in average length of
haul has been an ongoing trend and
it now averages around 500 miles.
However, Bob Costello, chief economist with American Trucking Asso-
ciations, told Stop Watch some carriers have said they are trying to boost
their average length of haul. After
years and years of bringing it down
to try and get drivers home more often and because a lot of large retailers have opened distribution centers
across the country, weve had a few
members try to tell us theyre working to boost their average length of
haul because they have a group of
drivers complaining about not being able to earn as good of a living,
Costello said.
CHANGES IN DEMOGRAPHICS
Shifts in the population
and housing needs could
change freight demands.
According to the most recent census,
Texas gained more people than any
other state during the Census period.
Other fast-growing states included
California, Florida, Georgia and
North Carolina.
For 2015, Forbes listed the top
ten fastest growing cities as Houston, Austin and Dallas, Texas;
Raleigh, North Carolina; Seattle,
Washington; Denver, Colorado;
San Francisco; Fort Worth, Texas;
Charlotte, North Carolina; and San
Antonio, Texas.
www.natso.com
19
FOUNDATION UPDATE
Customization + Variety =
The Future of Beverage Sales
BY MINDY LONG
rom traditional and craft sodas to coconut water to energy
drinks, todays consumers have
more choices than ever when selecting a beverage, and the number of
drinks competing for cooler space is
expected to grow.
As the food service continues to
grow, the beverage companies are going to keep introducing new products, said Stephanie Kowitz, director
of shopper insights for Coca-Cola.
The good news for the travel plaza
industry is that their customers are
buying those beverages. Kowitz said
64 percent of inside sales at truckstops
and travel plazas include the purchase
of a beverage, and three beverage categoriescarbonated soft drinks, energy
and waterdeliver over 70 percent of
the volume of beverage sales.
20
July/August 2015
While there is a lot of potential within the category, travel plazas are most
often limited by their cooler space,
which means they need to be sure they
stock the right products.
To help make space in their coolers, Darren Schulte, vice president of
membership for NATSO, suggests operators look at the number of sizes they
offer and said it isnt necessary to offer
every available option.
When determining what size to
stock, Kowitz said larger immediate
consumption package sizes, such as
one liters, are an advantage for truckstop retailers over convenience stores.
Sean Flynn, general manager of Flynns Truck Plaza, has tried to cut down
on the number of facings he gives one
product. Every soda company wants
as many facings of their best-selling
product as possible. That doesnt help
TREND
FOUNDATION UPDATE
center restaurants in 11 states and
provides consulting work, has one location that features 100 types of beer
and displays 99 bottles of beer on the
wall. We display them by the bottle
and you can pick six for one price, he
said. It is a point of difference.
Broadway Flying J Travel Plazas dedicated one door in its 15-door cooler
at one Montana location to local craft
beers, which has resonated with a
range of customers. Were on the road
to West Yellowstone, and we have a lot
of tourists who try the craft beers, said
Damon Borden, a manager at Broadway Flying J. Even the locals know
you can get it at our store and come
back and get it.
Broadway Flying J sells the craft
beers by the six-pack and in 24-ounce
bottles and has placed special signage
on the door. Whats more, staff has
taken time to visit the local breweries,
so they can answer any questions customers have about the beers.
While the craft beers are popular, the
top-selling drinks at Broadway Flying J
Travel Plazas are energy drinks, which
are selling even better than water, Borden said. Monster is our top seller,
even greater than Red Bull, he said.
Flynn has also found success with
Bawls Guarana, an energy drink.
There was no distributor around here,
but we bought pallets from the manufacturer and kept them in our warehouse. We had people driving down
from a state away to get it, he said.
Flynn is also having success with
canned iced coffees and coconut
water. Americans are now buying
around $400 million in coconut
water annually, according to the research group Euromonitor.
Kowitz said tea sales are exploding,
and the National Restaurant Association listed specialty iced tea as a top
trend in 2015.
Iced coffees and teas are the fastest growing beverage segments
Borden sees. We sell as much in
the winter as in the summer. That
Gen X customer is moving away
from coffee in general and is looking for iced coffees and smoothies
and iced teas, he said.
While SKU count is important,
Schulte said the ability to customize is a priority. One of the growing trends is customization of your
fountain drinks, like the Coca-Cola
Freestyle machine, Schulte said.
There are dozens of flavors on
that machine, but I think there are
30,000 different combinations you
could come up with. That is what
customization is. That makes sense
versus having every soda under the
sun in your cooler.
During The NATSO Show 2015,
J.T. McMahan, sales director for
Coca-Cola, told attendees, Customization is king.
Kowitz said creating easy food
and beverage bundles can help spur
beverage sales and meet customers
needs. Thirty-nine percent of food
service shoppers say the availability
of combination offers is important to
their location decision, Kowitz said.
Combination bundles are most
important for midmorning snacks,
lunch and mid-afternoon snacks.
Operators may want to tap into
marketing that encourages customers to make a purchase for now and
for later, such as signage that shows
a fountain drink bundled with a
bottled beverage.
While gas and diesel is the most influential item that determines when
and where a customer stops, the
most impulse purchases are candy,
gum, mints, salty snacks, carbonated
soft drinks and candy.
QUICK TIP:
Cooler space at
truckstops and travel
plazas is limited, but
Stephanie Kowitz,
director of shopper
marketing for CocaCola, said it is
important to remember
that not everyone is
after a cold beverage.
Some people prefer
room temperature
drinks, she said.
Forty-one percent of
truckstop and travel
plaza customers prefer
room temperature
bottled water.
www.natso.com
21
BY MI NDY LO NG
22
July/August 2015
TREND
23
F IRST STEP:
S ECOND STEP:
THIRD STEP:
FINAL STEP:
24
July/August 2015
CO OKIES AND
RICE CRISPIES
AT PINE CONE TRAVEL PLAZA
BY AMY TONER
or four decades Jim Glover has owned Pine Cone Restaurant in Johnson
Creek, Wisconsin. In late 1990, he also bought Pine Cone Travel Plaza.
Located 40 minutes outside of Madison, Wisconsin, the location features a
convenience store, CAT Scale, ATM, copy and fax services, and a fresh deli and
bakery in addition to the travel plaza.
These days the fresh deli and bakery is really buzzing. We offer many services,
but the bakery has been the largest increase in the last couple years. The bakery in
general has doubled in the last five years, Glover said.
He attributes the growth to customers wanting freshly prepared, quality food. We
make everything from scratch and fresh to order, he said.
All food offered at the location is made there and is fresh. Glover doesnt buy
anything pre-made. This is a strong selling point for the truckstop and keeps
customers coming back. People really like food that is made in house. I hear this
daily. They don't like the pre-made food/bakery, he said.
They also take the time to offer specialized food. Customers love that we make
their food to order, Glover said.
Glover told Stop Watch most truck drivers seem to have less time now than in
years past. As a result, sales of the truckstops grab-and-go items have increased.
The biggest items for grab and go would be cookies and rice crispies, he said,
adding that they make most everything they sell available in a grab-and-go format
with yogurt cups, subs, bakery items and pizza being especially popular.
Hes also noticed a big increase in sales of salads and strawberries and other
fruits, especially in the summer. I wouldn't say that they are eating healthier, but
there is a noticeable increase in the summer with fruits and salads, Glover said.
The biggest difference I hear about our location is that our prices are very
low, he added. He said most the truck drivers are just amazed by the prices and
quantity of food they receive.
This focus on food is keeping the truckstop very busy. We don't have any plans
for future change. Right now we are so busy we are just trying to keep everything
going, he said.
www.natso.com
25
NEW MEMBERS
NEW TRAVEL PLAZA MEMBERS
WOLFF TRAVEL PLAZA
(Flying J Dealer #551)
16851 IH 20
Cisco, TX 76437
PHONE: (254) 442-1040
CONTACT: Larry Wolff
HAVE A GREAT IDEA YOU WANT TO SUBMIT? Send a high-resolution picture of your locations
great idea and the story behind it to Amy Toner at atoner@natso.com.
26
July/August 2015