Presidents’ Reports 2Nd QUARTER 2018 Page 50 Getting Back to Business

May/June 2018 T H E V O ICE OF 7-ELEVEN FRANCHISEES Presidents’ Reports 2nd QUARTER 2018 Page 50 Getting Back To Business

Page 26

NCASEF’s 43rd Convention: FUN AND GOOD TIMES FOAs—The Backbone IN ORLANDO The Perfect Storm Outlaw Laboratory Claims Get Back To Business Leadership When It Really Counts

The WOTC Program

PERMIT No. 200 No. PERMIT

York, PA York, U.S. POSTAGE PAID POSTAGE U.S. Did We Burn The Bridge?

PRSRT STD STD PRSRT The Franchisor/Franchisee Relationship

T H E V O I C E O F 7 -ELEVEN FRANCHISEES May/June 2018 Contents 33 FOAs—The Backbone Of 18 Some Steps To Improve The Franchisee Community The Franchisor/Franchisee By Jay Singh, Chairman, NCASEF Relationship By Kiranjot Singh, Secretary, San Diego FOA 37 The Perfect Storm 25 Get Some Payroll Relief By Michael Jorgensen, Executive Vice Chairman, NCASEF With The WOTC Program By Bill Huffman, Vice President, South, 41 Resolution Of Outlaw Greater Oregon FOA Laboratory Claims Come One, By Eric H. Karp, Esq., General Counsel, NCASEF Come All! 45 It’s Time To Get Back The NCASEF To Business National Convention & By Nick Bhullar, Vice Chairman, NCASEF Trade Show 82 Did We Burn The Bridge? Orlando • July 23-26 47 Leadership… By Nisar Siddiqui, Vice President, Midwest FOA Page 26 When It Really Counts By Terry Hutchison, Vice President, South Florida FOA

Features Member News...... 14 28 Delaware Valley FOA Trade Show Bits & Pieces...... 16 76 San Diego FOA Golf Tournament Legislative Update...... 22 83 Eastern Virginia FOA Golf Tournament & Trade Show DEPARTMENTSSEI News ...... 85

2nd QUARTER 2018 Vendor Focus ...... 93 Presidents’Reports Franchisee Calendars ...... 101-102 Page 50

AVANTI is published by the National Coalition of Associations of 7-Eleven Franchisees for all independent franchisees, store managers and interested parties. National Coalition offices are located at 1001 Pat Booker Road, Suite 206, Universal City, TX 78148. For membership information, call 702-249-3301 or e-mail [email protected]. AVANTI Offices are located at 116 Bellevue Ave., Suite 304, Langhorne, Pennsylvania 19047. For advertising information, call Sheldon Smith at 215 750-0178 or fax to 215 750-0399; on-line, send messages to [email protected]. The views and opinions expressed in the articles and columns published in Avanti Magazine are those of the authors and do not necessarily reflect the official policy or position of the National Coalition of Associations of 7-Eleven Franchisees, its officers or its Board of Directors.

AVANTI MAY | JUNE 2018 11

NATIONAL COALITION OF ASSOCIATIONS OF percent—matching its lowest level in 7-ELEVEN FRANCHISEES Amazon Go C-Stores nearly 50 years, reported the Washington NATIONAL OFFICERS Examiner. Economists had expected a To Open In Chicago 190,000 increase in jobs. e 3.8 percent Jatinder Singh Amazon Go is setting a foothold in national unemployment rate, which fell NATIONAL CHAIRMAN Chicago, where two locations have been from 3.9 percent, ties the rate in April 702-249-3301 • [email protected] chosen for the new cashierless store con- 2000, at the peak of the tech boom. Before Michael Jorgensen cept, reported the Chicago Tribune. Ama- that, one has to go back to December EXECUTIVE VICE CHAIRMAN zon has leased spaces for the 347-251-1828 • [email protected] high-tech convenience stores “e national unemployment rate Nick Bhullar in Chicago’s tallest building, VICE CHAIRMAN Willis Tower, and in an oﬃce has not been 3.8 percent since April 626-255-8555 • [email protected] building connected to 2000, the peak of the tech boom.” Rehan Hashmi Ogilvie Transportation Cen- VICE CHAIRMAN ter. ose are two of the first known loca- 1969 to find a month when the unem- 847-845-8477 • [email protected] tions for the new Amazon retail format, ployment rate was lower. e Labor De- Jaspreet Dhillon which debuted at Amazon’s downtown partment's Bureau of Labor Statistics also TREASURER Seattle headquarters campus in January. adjusted job growth from March and 310-892-2106 • [email protected] Amazon Go is essentially a c-store April to add another 15,000 jobs. Eric H. Karp, Esq. without checkout lines, where cus- GENERAL COUNSEL tomers can use their smartphones to 617-423-7250 • [email protected] quickly buy sandwiches, salads, meal SEI’s Real Estate Lawyers John Riggio kits and other foods. Recently, the San Recognized MEETING/TRADE SHOW COORDINATOR Francisco Chronicle reported that an 262-275-3086 • [email protected] 7-Eleven’s in-house lawyers were re- Amazon Go store was planned in the cently recognized by the Association of Sheldon Smith city’s Union Square. Amazon reportedly AVANTI PUBLISHER Corporate Counsel (ACC) as 2018 Value has been looking for spaces in other ADVERTISING MANAGER Champions, reported CSP Daily News. Ac- cities too, including Los Angeles. 215-750-0178 • [email protected] cording to the ACC, to be considered a value Champion, “a law department must Unemployment Rate move at the speed of the business client, optimizing every process, controlling every Lowest In 50 Years cost, taking advantage of every available Sheldon Smith e U.S. economy added 223,000 jobs piece of data.” e article states that SEI PUBLISHER&ADVERTISING SALES 215 750-0178 in May, smashing expectations and driv- streamlined its law department to better [email protected] ing down the unemployment rate to 3.8 continued on page 16 John Santiago ASSISTANT EDITOR 215 750-0178 The National Coalition Office [email protected] The strength of an independent trade association lies in its ability to promote, protect and advance the best The Voice of 7-Eleven Franchisees May/June 2018 interests of its members, something no single member 1001 Pat Booker Road ©2018 National Coalition of or advisory group can achieve. The independent trade Suite 206 Associations of 7-Eleven Franchisees association can create a better understanding between Avanti Magazine is the registered Universal City, TX 78148 trademark of The National Coalition its members and those with whom it deals. National Office 210-971-9211 of Associations of 7-Eleven Franchisees. Coalition offices are located in Universal City, Texas. E-mail: [email protected]

14 AVANTI MAY | JUNE 2018 Register Online NOW for the NCASEF Convention & Trade Show www.ncasef.com continued from page 14 support its growing retail portfolio with the vice president of merchandising and lo- help of Chicago-based Seyfarth Shaw LLP. gistics aer SEI acquired his MHC Con- As a result, SEI was able to “implement venience business, which operated 16 value-based sourcing and staffing by re- Mother Hubbard's Cupboard conven- aligning workflow to create a hybrid in- ience stores. Since he joined SEI, the com- sourced/outsourced model that moves pany has significantly improved its new low-cost work such as title and survey re- product innovation, including hundreds Fuel brand 76 recently launched Mobile view to Seyfarth Shaw’s real estate hub in of exclusive, new-to-market, national Pay in Los Angeles, a new payment feature in its Atlanta.” Seyfarth Shaw further used pro- brand products. Delgado-Jenkins cred- My 76 app that allows customers to pay both prietary technology to create a dedicated ited these innovations to the creativity at the pump or in-store on their mobile 7-Eleven website that streamlines commu- and passion of his teams and supplier devices. The company said it will roll out Mo- nications among the legal department and partners, the article stated. bile Pay regionally throughout the year. • Elec- more than 100 real-estate professionals. trify America announced that it will be In eight months, installing ultra-fast electric vehicle chargers at more than 100 retail, conven- SEI was able to re- “In eight Study On Frequent ience and refueling locations across the duce its total out- months, SEI C-Store Customers U.S., including Sheetz, Inc., Casey’s General side counsel spend was able to Frequent convenience store cus- Stores Inc., and Global Partners LP’s Alltown. • by 19 percent in tomers, defined as 28 percent of fuel pur- Employees at a Burgerville store in Port- real estate. Outside reduce its chasers who shop “daily” or “multiple land, Oregon recently voted to become counsel fees for total outside times per week” at a c-store, are more the first officially recognized fast-food new-store develop- counsel likely to hold favorable opinions of their workers union in the country, reported ment decreased by local store, as well as respond positively to NACS Online. The Burgerville Workers Union is 13 percent year spend by 19 new products and foodservice offers, ac- now set to start negotiations with management over year, and new- percent in cording to a new NACS report, “ree In- and hopes to raise hourly employee wages $5 store deal fall- real estate.” sights on Frequent Convenience Store an hour. • According to a new survey by Adtaxi, through rates Customers.” By contrast, rare shoppers 66 percent of respondents make an on- declined from 25 percent to near 1 per- are defined as the 37 percent of fuel pur- line purchase at least once a month and cent. By transferring four contract spe- chasers who shop a convenience store ei- over half (52 percent) of ecommerce shoppers cialists from another department to work ther “less than once or twice per month” spend as much, or more, of their dollars online as paralegals and hiring a new real-estate or “never.” ese consumers may view a than in-store. • Wawa recently opened its transactional attorney and dispute attor- convenience store as a place for fuel only, 800th store, located in Wilmington, Delaware, ney, SEI reduced its outside counsel spend and may have an unfavorable perception reported ABC-6 News Philadelphia. The Pennsyl- for the real estate transactional part of the of the convenience store industry overall. vania-based convenience chain said it plans to work by 68 percent year over year. open 50 stores this year throughout the mid-At- e report also reveals several broad lantic and Florida. • Walmart has ended its insights relating to frequent convenience Mobile Scan & Go program, which it store shoppers: they drive significantly SEI’s Delgado-Jenkins launched in around 150 locations, after it more per week than rare shoppers; they proved too confusing for many shoppers, Retires continued on page 18 reported the Chicago Tribune. The technology al- SEI Executive Vice lowed shoppers to scan and pay using a hand- President and Chief Mer- held device or smartphone. • Starbucks chandising Officer Jesus recently closed more than 8,000 of its Delgado-Jenkins recently company-owned stores to give employees announced his retirement, classes on how to avoid the kind of racial saying he wants to spend more time with bias that many say led to the arrests of two his family, reported CSNews Online. Del- continued on page 20 gado-Jenkins joined SEI in 2010 as senior

16 AVANTI MAY | JUNE 2018 Register Online NOW for the NCASEF Convention & Trade Show www.ncasef.com continued from page 16 prefer fuel quality over price compared to “Foodservice sales overall as a client, reported BlueMauMau.com. rare shoppers; and they can be encouraged In 2013, Sodhi was served by SEI with a to change buying behavior to save money; in 2017 were 33.9 percent notice of material breach and termina- and they are open to new technologies. tion, as well as a lawsuit. Sodhi defended of gross profit dollars.” his business against the accusations and filed a counterclaim for damages, and re- times greater than bottom-quartile stores; Foodservice Driving Growth tained Gerald Marks of Marks & Klein, and coffee sales at top performers were U.S. convenience stores experienced LLP to represent him. e case ultimately 5.2 times greater that than those of the a 15th straight year of record in-store ended with the U.S. District Court of bottom quartile. sales, powered by foodservice—a broad New Jersey granting SEI’s motion for category that mostly includes prepared summary judgment and Sodhi being food (69 percent of both category sales Ex-Franchisee stripped of his stores. and profits) but also commissary foods and hot, cold and frozen dispensed bev- Sues Attorneys erages, reveals NACS State of the Indus- Aer three years of litigation with Dollar General Increasing try data. Foodservice sales overall in 2017 SEI, former 7-Eleven franchisee Karam- Food Offerings were $53.3 billion, accounting for 22.5 jeet Sodhi has sued his lead counsel and With consumables a steady sales percent of in-store sales in 2017 and 33.9 law firm—Gerald A. Marks and Marks & driver, Dollar General Corp. is pushing percent of gross profit dollars. e cate- Klein, LLP—for malpractice, alleging the ahead with plans to boost their food and gory also was the biggest differentiator in attorneys placed their own financial in- beverage offerings, reported Supermarket terms of profits: top-quartile performers terests above his and did not live up to News. Dollar General saw consumables had prepared food sales that were 3.6 their fiduciary obligation to protect him continued on page 20

SOME STEPS TO IMPROVE THE FRANCHISOR/FRANCHISEE RELATIONSHIP By Kiranjot Singh, Secretary, San Diego FOA If the culture fits both parties, and if both par- PROFIT—As a business “THE BEST WAY TO ties are committed to a common goal, the rela- owner, your take-home in- BUILD A TEAM OF tionship will be good, and success has a chance. come will ultimately come out COMMUNICATION—Communication is an essential part of every of your business’s net profit or FRANCHISEES IS business. The franchisor/franchisee relationship needs to have excel- “bottom line.” While the gross THROUGH OPEN lent communication because a misunderstanding can lead to a sales/gross revenue of COMMUNICATION.” potential loss of revenue. The franchisor must view them- any business (com- selves and the franchisees as one team—think “we” in- monly referred to as “top line revenue”) may seem im- stead of “us and them”—and the best way to build that pressive, it is critical to understand the profit margin mindset is through open communication. of the business is the percentage of the money left TRANSPARENCY—The full, accurate, and timely dis- over after all business expenses are paid. The profit closure of information. split between franchisor and franchisee has to be bal- RELATIONSHIP—Each day, pick up the phone and call at anced to benefit both parties. least one franchise you haven’t spo- HONESTY—It is perhaps the most important principle of KIRANJOT SINGH ken to in a while. Ask how they’re doing, leadership and dependent on integrity because it demands truthful- CAN BE REACHED AT how their family is, and what else your ness and honesty. Many companies and organizations fail because 760-975-2100 OR team could be doing to support their they don’t follow the reality principle. Integrity means telling the [email protected] business. truth even if the truth is ugly.

18 AVANTI MAY | JUNE 2018 Register Online NOW for the NCASEF Convention & Trade Show www.ncasef.com continued from page 18

sales rise 10.6 percent to $4.77 billion for e move comes as convenience continued from page 16 its fiscal 2018 first quarter ended May 4. store operators in Japan focus more on In reporting its quarterly results, the com- selling healthy bento meals and prepared African-American men pany said this growth helped fuel a 9 per- foods using plenty of vegetables or fewer for occupying a table cent gain in total sales to $6.1 billion and food additives. With increases in double- without making a purchase, reported Good li same-store sales by 2.1 percent. Dollar income and elderly households that pre- Morning America. • Anheuser-Busch plans to General is also rolling out Good & Smart, fer prepared meals as opposed to order up to 800 hydrogen-powered semi a new private label the company said will home-cooked fare, companies hope to trucks from Nikola Motors, reported Fox represent about 75 percent of News. Nikola’s trucks use a hydrogen-powered fuel cell to generate electricity that will allow the better-for-you product “Dollar General saw consumables them to drive 1,200 miles per fill-up. • By 2050 portfolio. In fiscal 2018, Dol- there will be more plastic—by weight— lar General plans to open 900 sales rise 10.6 percent for its fiscal in the ocean, than fish, according to the new stores, remodel 1,000 2018 first quarter, which ended May.” Wildlife Conservation Society. • Americans say mature stores and relocate that higher gas prices won’t limit their shed the unhealthy image of convenience about 100 stores. In upgrading its store driving this summer, but higher prices base, Dollar General also plans to focus store bento and encourage families to could affect their discretionary spending, on remodeling locations with fewer than enjoy such food without worry. according to the latest NACS Consumer Fuels Sur- 12 cooler doors. vey findings. Only 11 percent said they would drive less, while 34 percent of fuel consumers said Amazon Slashes they will eat out less and 22 percent said they will Seven-Eleven Japan Whole Foods Prices likely spend less on typical household purchases. Focusing On Healthy Foods Whole Foods recently debuted a • The Federal Communications Commis- Seven-Eleven Japan recently started much-anticipated loyalty program that sion approved its largest fine ever—$120 placing stickers on products meeting the offers special discounts to Amazon million—against a Miami, Florida man company’s health standards, one of Prime customers, including 10 percent who was found to have placed 96.8 million which includes using at least half the off hundreds of sale items and rotating fraudulent robocalls for vacation deals, reported daily recommended amount of vegeta- weekly specials such as $10 per pound USA Today. • The global chocolate confec- bles, reported the Japan Times. Currently, off wild-caught halibut steaks, reported tionery market size was valued at $123.7 billion in 2016 and is expected to grow at a about 10 products don the label, includ- Reuters. ose perks are available now CAGR of 2.5 percent between 2018 and 2025, ac- ing onigiri rice balls. Seven & I Holdings at 121 Whole Foods Market stores cording to a new study by Grand View Research. • hopes to add more items, such as noo- across 12 states and Whole Foods 365 C-store chain Cumberland Farms recently dles and hot pots, to their healthy prod- stores nationwide. Amazon previously launched its Summer of SmartPay Sweep- uct lineup. announced free two-hour delivery from stakes, with a grand prize of free gasoline continued on page 72 for one year. From June 1st through August 31st, customers who pay with SmartPay Check- Link at the pump or in-store will automatically be Play The Name Game! entered into the contest. • Nestle has agreed Look carefully at each page in this issue. to pay Starbucks Corp. $7.15 billion in a Somewhere in this magazine a line is hidden that deal to sell Starbucks’ coffee worldwide, reported Bloomberg. The rights deal also allows contains the words $Name Game Winner + Nestle to sell coffee and tea products including person’s name + city$. If you find this line, and soluble coffee and individual pods, while all of it contains your name, call AVANTI’s Offices at the packaging will retain Starbucks’ branding. • 215 750-0178 before the next magazine is published, According to a new AAA survey, 20 percent and win this issue’s total. NCASEF Members only. continued on page 38

20 AVANTI MAY | JUNE 2018 Register Online NOW for the NCASEF Convention & Trade Show www.ncasef.com Legislative Update New California Ruling Defines Independent Contractors hours to existing employees when they become available instead of hiring new employees e California Supreme Court has issued a landmark deci- at a lower rate, and pay employees when shis are canceled. sion that makes it harder for employers to classify their workers e bill is similar to what other cities and states have passed. as independent contractors, reported the Los Angeles Times. e In a statement, the Greater Philadelphia Chamber of Com- ruling came in a class-action lawsuit against package and docu- merce said this legislation would ultimately hurt Philadelphi- ment delivery company Dynamex Operations West Inc., which ans by lowering the number of jobs in the city. It criticized charged that Dynamex misclassified its delivery drivers as inde- the bill’s “one size fits all approach,” saying that it would re- pendent contractors rather than employees. To classify someone sult in employers being less flexible with employees. as an independent contractor, the court said, businesses must show that the worker is free from the control and di- San Franciscans Approve rection of the employer; performs work that is out- Flavored Tobacco Ban side the hirer's core business; and customarily San Francisco residents on June 5 voted engages in “an independently established trade, oc- overwhelmingly to ban flavored tobacco prod- cupation or business.” e unanimous decision has ucts, including menthol cigarettes and vape liq- implications for the growing gig economy—such as uids, reported the San Francisco Examiner. Uber, Ly and other app-driven services—but it Proposition E, which was placed on the ballot by could extend to nearly every employment sector in the Board of Supervisors, was approved by 69 the state. percent of voters, ac- e court also said a worker may be denied the “SAN FRANCISCO RESIDENTS ON JUNE 5 cording to the De- status of employee “only if the worker is the type of VOTED OVERWHELMINGLY TO BAN FLAVORED partment of Elections. traditional independent contractor—such as an in- TOBACCO PRODUCTS, INCLUDING MENTHOL City supervisors last dependent plumber or electrician—who would not CIGARETTES AND VAPE LIQUIDS.” year unanimously ap- reasonably have been viewed as working in the hir- proved a ban on the ing business.” e court oﬀered examples: A plumber temporar- products, but the tobacco industry funded a referendum, ily hired by a store to repair a leak or an electrician to install a Proposition E, to put the issue before voters instead. line would be an independent contractor. But a seamstress who Proponents of Proposition E—which include the American works at home to make dresses for a clothing manufacturer Heart Association, the American Cancer Society, the San Fran- from cloth and patterns supplied by the company, would be an cisco Marin Medical Society, among others—allege flavored to- employee. e article states that the ruling did not resolve the bacco is used to target children as future customers. Opponents Dynamex case, but defined independ- say the law will hurt small businesses that depend on anchor “To classify someone as an ent contractors for lower courts that products like flavored tobacco and vaping liquids, and like independent contractor, are grappling with the dispute. other prohibition measures would likely create black markets. the court said, businesses Philadelphia Considers C-Stores Fight Illinois Smoking Age Bill must show that the worker Scheduling Law is free from the control A bill on its way to Illinois Gov. Bruce Rauner’s desk would and direction of the em- Lawmakers in Philadelphia have raise the legal age for purchasing tobacco and nicotine products ployer; performs work that recently introduced a bill that would from 18 to 21 statewide, a move praised by public health advo- is outside the hirer's core provide retail and fast food employ- cates and opposed by convenience stores and other Illinois re- business; and customarily ees a more predictable work sched- tailers, reported the Chicago Tribune. While anti-smoking engages in ‘an independ- ule, reported the Philadelphia advocates argue the bill would prevent teens from developing ently established trade, Inquirer. e measure would require lifelong nicotine addictions, convenience store operators and occupation or business.’” retail employers to give at least two vape shop owners say it would drive younger customers to the weeks’ notice of schedules, oﬀer continued on page 24

22 AVANTI MAY | JUNE 2018 Register Online NOW for the NCASEF Convention & Trade Show continued from page 22 continued from page 20 www.ncasef.com

Legislative Update GET SOME PAYROLL RELIEF courage current smokers to quit “AS OF JUNE 1, THE NEW black market, online or to neighboring states. Chicago and 23 or cut back. e Health Depart- WITH THE WOTC PROGRAM ment claims the number of young BASE PRICE FOR A PACK other Illinois localities have raised the smoking age to 21 in re- By Bill Huffman, Vice President, South, Greater Oregon FOA cent years. e Illinois Department of Revenue estimates rais- smokers declined by about 70 OF SMOKES HAS GONE UP percent between 2001 and 2017. FROM $10.50 TO $13.” ing the legal age for purchasing tobacco products to 21 would Stressed about the cost of payroll? Here is a Shamika White is our e administration of Mayor Bill decrease cigarette and sales tax receipts statewide by $41 mil- strategy that can put money back into your pocket: participate account representa- “WOTC is a FEDERAL lion to $48 million in the first year. de Blasio hopes to reduce the number of smokers in New York City to 160,000 by 2020. Last August, Mayor de Blasio signed in the Work Opportunity Tax Credit program! tive and she can be TAX CREDIT available Pack Cigs In NYC Rises Now $13 into law several bills targeting tobacco. The Work Opportunity Tax Credit (WOTC) is a federal tax reached at swhite@ to employers for hiring credit available to employers for hiring individuals from certain synergipartners.com. FROM New York City is once again home to the most expensive C-Stores Get E-Cigarette Warning Letters individuals cigarettes in the nation, reported Spectrum News NY1. As of target groups who have consistently faced significant barriers to To get started, CERTAIN TARGET e Food and Drug Administration (FDA) recently sent June 1, the new base price for a pack of smokes has gone up employment. The WOTC helps these targeted workers move you need to fill out a GROUPS who have from $10.50 to $13. City officials said they believe the increase officials into retail establishments to uncover illegal sales of from economic dependency into self-sufficiency as they earn a power of attorney, electronic cigarettes to minors as part of their efforts to tackle consistently faced will prevent new smokers from picking up the habit and en- steady income and become contributing taxpayers, while partici- available in the ISP, continued on page 74 pating employers are able to reduce their income tax liability. and send it to Syn- significant barriers to employment.” How large is the tax credit? The maximum tax credit ranges ergi. Then, within 28 from $1,200 to $9,600 per employee, depending on the em- days of hiring a new ployee hired. Employers can hire eligible employees from the fol- employee, send Synergi a Federal Form 8850 and a tax credit lowing target groups for the WOTC: questionnaire (both available on your ISP). They will process and forward the application to the appropriate state agency. When • Unemployed Veterans (including the credit has been processed and returned to Synergi, it will be “The maximum disabled veterans) tax credit forwarded to you. When you do your federal taxes, this credit may be deducted from the Federal Income Tax that you owe the ranges from • Temporary Assistance for Needy $1,200 TO Families (TANF) Recipients IRS. Synergi charges 10 percent of the money it finds for you. There is no charge for applications that do not result in a credit. $9,600 PER • Food Stamp (SNAP) Recipients This is a program that may lower your tax bill by thousands of EMPLOYEE, • Designated Community Residents dollars a year. Today, less than 10 percent of franchisees are utiliz- depending on (living in Empowerment Zones or ing this federal program. As the minimum wage continues to in- the employee Rural Renewal Counties) crease throughout the country, this program can help reduce hired. There is • Vocational Rehabilitation Referred NO CHARGE your expense line. It takes about one minute of your time per Individuals for applications employee and I encourage you to send in the that do not re- • Ex-Felons form for every new em- sult in a credit.” • Supplemental Secu- ployee, regardless of their rity Income Recipients economic status. • Summer Youth Employees (living in Empower- ment Zones) BILL HUFFMAN • Qualified Long-Term Unemployment Recipients CAN BE REACHED AT 541-269-0884 OR 7-Eleven, Inc. has contracted with Synergi Part- [email protected] ners to handle the administration of this program.

AVANTI MAY | JUNE 2018 25 Register Online NOW for the NCASEF Convention & Trade Show continued from page 20 www.ncasef.com Come One, Come All To Celebrate Franchisee Unity!

Online registration to the NCASEF 43rd Annual Schedule Convention & Trade Show is now open for franchisees and vendors! Running from July 23 to 26 at the luxurious of Events Gaylord Palms Resort and Convention Center in Orlando Florida, this stellar event includes free tickets to Universal MONDAY, JULY 23 WEDNESDAY, JULY 25 9:00 a.m. – 10:00 a.m. Department of Homeland Studios, great seminars, a blowout trade show featuring 12:00 p.m. – 5:00 p.m. 8:00 a.m. – 9:00 a.m. great new products and deals from our valued vendor, Security Presentation Franchisee and Vendor Continental Breakfast I-9 Compliance and Hiring a 2018 BMW 320i raffle giveaway and other fabulous Registration Location: Sun Ballroom Location: Sun Ballroom prizes, and many social events sprinkled in between! Location: Sun Ballroom Foyer 9:00 a.m. – 10:00 a.m. 10:00 a.m. – 11:00 a.m. Franchisees: Enjoy a low registration fee of $49 per 7:00 p.m. – 9:00 p.m. State of the Coalition Address Legal Forum with NCASEF Opening Reception With Live Jay Singh, Chairman, person and hotel rate of $99 per night! General Counsel Eric Karp Music and Hors d’Oeuvres NCASEF and Executive Location: Sun Ballroom Vendors: Increase sales with your 7-Eleven customers Location: Sun Ballroom Officers 11:00 a.m. – 4:00 p.m. and network with the largest c-store buying group in the TUESDAY, JULY 24 10:00 a.m. – 11:00 a.m. “Franchisees ARE the Brand” country! Sign up as a Major Sponsor for more exposure Vendor Panel Trade Show 9:00 a.m. – 5:00 p.m. Location: Sun Ballroom throughout the convention! Franchisee and Vendor Participate to receive entries Registration 11:00 a.m. – 4:00 p.m. to the multi-prize raffle, Visit NCASEF.com Location: Sun Ballroom Foyer “Franchisees ARE the Brand” including the BMW 320i and sign up today! Trade Show grand prize giveaway! 8:00 a.m. – 9:00 a.m. Location: Exhibit Halls A/B Continental Breakfast Participate to receive entries Location: Sun Ballroom to the multi-prize raffle, 6:00 p.m. – 7:00 p.m. including the BMW 320i Cocktail Reception 8:00 a.m. – 5:00 p.m. grand prize giveaway! Location: Sun Ballroom Trade Show Vendor Setup Location: Exhibit Halls A/B Location: Exhibit Halls A/B 7:00 p.m. – 10:00 p.m. THURSDAY, JULY 26 Grand Banquet 9:00 a.m. – 6:00 p.m. Raffle Grand Prize Winners A Day at Universal Studios 8:00 a.m. – 9:00 a.m. To Be Announced! Continental Breakfast Location: Sun Ballroom 7:00 p.m. – 11:00 p.m. Location: Sun Ballroom Charity Night Gala Cocktail Reception, Silent 9:00 a.m. – 1:00 p.m. and Live Auctions, Dinner, Franchisee and Vendor DJ Entertainment Registration Location: Sun Ballroom Location: Sun Ballroom Foyer

26 AVANTI MAY | JUNE 2018 Register Online NOW for the NCASEF Convention & Trade Show

continued from page 26 www.ncasef.com

DELAWARE VALLEY FOA TRADE SHOW ATTRACTS FRANCHISEES, VENDORS, LAWMAKERS & MORE!

The Delaware Valley FOA held its first trade show after many years on April 4, 2018 at Caesars Atlantic City in New Jersey, and it was a resounding success! The event not only attracted a record-breaking number of franchisees and exhibiting vendors, but several of the NCASEF officers, a prominent Philadelphia councilman and the city’s chief election commissioner. Free hotel rooms were provided to franchisees, and the trade show was followed by a big banquet with a band and Indian dancers. The event also featured door prizes and a raffle giveaway, so no one left empty handed. Raffles prizes included fifty $50 gift cards and cash prizes of $250, $500 and $1,000. Philadelphia Councilman Al Taubenberger and Philadelphia Chief Election Com- missioner Lisa Deeley proudly presented Small Business Gold Leadership Awards on behalf of the DVFOA to NCASEF Chairman Jatinder Singh, NCASEF Executive Vice Chairman Michael Jorgenson, and NCASEF Vice Chairman Rehan Hashmi. DVFOA Vice President Bilal Barqawi was also recognized by the Board of Directors with a Small Business Excellence Award, presented by Councilman Taubenberger and Hon. Lisa Deeley. They also presented a Small Business Platinum Leadership Award to Serge Haitayan for his efforts in fairness in business practices. DVFOA President Manzoor Chughtai, Secretary Peter Patel, and Treasurer Vincent Emmanuel were also honored by the Board of Directors for their service and commitment to franchisees. Councilman Al Taubenberger was a small businessman before being elected, and talked about sympathizing with small business people. He offered his support to the group in legislative matters. Treasurer Vincent Emmanuel, who works alongside Councilman Taubenberger in City Hall, serves as the franchisee advocate on issues affecting small businesspeople. Chief Election Com- missioner Lisa Deeley spoke about the importance of getting to know your local politicians. The Board of the Delaware Valley FOA would like to thank Vice President Bilal Barqawi for organiz- ing such a success trade show. They would also like to thank Councilman Al Taubenberger and Chief Election Commissioner Lisa Deeley for participating, as well as all franchisees for attending and especially the wonderful vendor community for their continued support of the FOA.

28 AVANTI MAY | JUNE 2018

BY JAY SINGH, CHAIRMAN, NCASEF

7-Eleven Franchise Owner’s Asso- men, and as centralized forums to ad- ciations began forming in 1972, when dress the day-to-day issues franchisees 7-Eleven was in its infancy, and the face. FOA members provide feedback “We stand a better chance of world was ripe for franchising and for on systemic practices and procedures, having our voices heard if we convenience stores in general. All was and suggest ways to improve the sys- speak united as a group.” pretty right with the world, because tem to 7-Eleven, but we also work with everyoneFOAs—The was making money, testing Backboneour local communities, Of on behalf of lice departments, lawmakers, bureau- new ideas and essentially creating a franchisees, to the benefit of all. As crats, schools and local members of newThe system asFranchisee the company grew. brand Community ambassadors of 7-Eleven we cre- the vendor community. I even had a Today we have more competition, ate a positive vibe in our communities congressman, while campaigning, and a changing marketplace where as we work with local lawmakers, po- work in my store. At my FOA’s local online ordering and quick delivery trade show, we used to give one free are as much a challenge to our busi- booth to each political party to create nesses as Wawa, Quick Trip and Cir- a good relationship with politicians to cle K. I’m not saying this is a bad enhance the brand. thing, but I am saying that for fran- The truth of it is that franchisees chisees, there was strength and prom- feel more engaged in their local com- ise in unity then, and there is strength munities because they have invested and promise in unity now. time and money in their stores. They As franchisees of the largest con- live in the area and their kids attend the venience store chain in the U.S., we are local schools. This helps to increase the proud to represent our brand to our visibility and value of our brand. customers, our communities and our Being a leader in a local FOA, or on vendor partners who provide the the head table of the National Coalition products we so happily sell in our means sometimes taking risks on be- stores. But running a convenience half of your members. When an FOA store is no longer an easy business, leader brings a franchisee concern to and 7-Eleven is no longer the family- the notice of SEI local management or owned company it was in the 1980s. Dallas headquarters, it is human nature To talk with corporate, to talk to our “As franchisees of the for the franchisee and for the local official to be defensive of their positions. legislatures, and to represent our busi- largest convenience store nesses to our communities, just like in This is why it is important for FOA the old days, we still stand a better chain in the U.S., we are leaders to be on the NBLC, the CEO chance of having our voices heard if proud to represent our Roundtable, and any other committees we speak united as a group. lice, schools, and local charities. That is where our elected leaders can provide For 7-Eleven franchisees, our Fran- whatbrand local to FOAs our do. customers, Individually, fran- feedback to corporate. If SEI chose chise Owner’s Associations (FOAs) chiseesour communities also contribute, but and we accom- our FOA leaders to be on those commit- serve as meeting plish much more as a group. tees, then they are really bringing in the JAY SINGH places for the vendor The National partners.” Coalition’s 43 FOA people who are duly elected by their CAN BE REACHED AT franchisee membership to represent 702-249-3301 OR minds of many members across the country have [email protected] small business- great relationships with their local po- them. Every Board member is elected continued on page 34

AVANTI MAY | JUNE 2018 33 continued from page 33 by their general membership. If SEI in- help all franchisees. I encourage all cludes FOA leaders, it is a true repre- franchisees to join their local FOA, and sentation and they will get more I long for the day when we have 100 accurate feedback. percent participation. Some franchisees just don’t want to As long as we are on the topic of become FOA members. Maybe they franchisee unity, I would like to invite don’t know the system well, or maybe all of you to attend the NCASEF’s 43rd “I encourage all fran- there is not a positive approach by the Annual Convention and Trade Show, chisees to join their local FOA on the local level. Perhaps in the “Franchisees ARE The Brand,” in Or- dinners, as well as a ticket to Universal past FOA Board members did not ad- lando, Florida from July 23 to 26. It’s StudiosFOA, forand each I attendee.long for You thewill have dress the franchisee’s concerns or didn’t going to be a great event. The registra- aday chance when to mingle we withhave fellow 100 fran- explain the benefits of membership. tion fee—$49 per person—is the lowest chisees, attend informative sessions, But whether they are members of an in Coalition history. The venue—the andpercent see new participation.”products and great deals FOA or not, they are franchisees and I beautiful Gaylord Palms—is also sub- at the two-day trade show. Our conven- am a firm believer that local FOAs and sidized, and will be just $99 per night. tion and trade show is a great family National Coalition leadership should You will get breakfasts, lunches and destination, and it is a business expense that can be partially deducted on your “Being a leader in a local FOA or on the head table of the National tax return. We expect this to be the best-at- Coalition means sometimes taking risks on behalf of your members.” tended National Coalition convention ever! I hope to see you all there.

34 AVANTI MAY | JUNE 2018 BY MICHAEL JORGENSEN, EXECUTIVE VICE CHAIRMAN, NCASEF

We are in the middle of a perfect adjustments in the upcoming 2019 franchisees’ best in- storm. Or, as Thomas Paine wrote in Franchise Agreement. The NCASEF terests for a better The Crisis, “These are the times that leadership and Board of Directors, tomorrow. We try men’s souls.” This is certainly a very which encompasses all 86 FOA Pres- also continue to challenging time for our industry, and idents and Vice Presidents, plus six remain ready and for our individual businesses. The en- NCASEF officers, took a brave and willing to re-environment is changing more than ever difficult stand to support a lawsuit and gage with SEI and before, and the effects of increased drive attention to the concerns within work towards a competition, low unemployment, the franchise community we felt were successful reso- “‘These are the wageThe hikes, shrinking Perfect GP and declin- notStorm being adequately addressed. (All lution to our times that try ing customer counts are affecting our of the speculation will be put to rest current situa- men’s souls.’” bottom lines. by the time you read this article, when tion. Franchisees are under a tremen- 7-Eleven is —Thomas Paine dous amount of pressure today and are not alone in this already investing additional resources trying business environment. A num- in order to react to the current busi- ber of franchise systems currently are ness environment. We are all aware in turmoil. Subway and Tim Horton’s that brick and mortar businesses are in are the two that are garnering the most a fight for survival with the advent of headlines, and we can learn a lot from the digital age, online ordering, on-de- the current situations within these mand delivery and autonomous de- iconic brands. We still have hope we vices. As a result, the 7-Eleven brand can avoid rising to the level of fran- is challenged every day to transform to chisee discontent that exists in those meet changing consumer demands and expectations. Complicating matters, we are not only fighting these outside pressures but we have also been engaged in an internal conflict. Franchisees for the last several years have held out hope the“Franchisees new franchise agreement for the lastis un- severalfranchise years systems, have but held we must out open that relief would come in the form of veiled in early June.) the lines of communication and begin hope With the that dismissal relief of wouldthis lawsuit, cometo inrebuild the trust. form of adjust- “The NCASEF leadership and Board of andments while the in appeal the upcomingis underway, we 2019 FranchiseFranchisee unity Agreement.” and “the Brand” Directors, which encompasses all 86 are left with a very difficult relation- have been the words most frequently FOA Presidents and Vice Presidents, ship with corporate. We are all con- used in communications by fran- cerned that being cut off from any chisees and SEI. In order to win we plus six NCASEF officers, took a brave working relationship with SEI man- need to combine these words: “7- and difficult stand to support a lawsuit agement is affecting our ability to help Eleven Franchisees unified behind to drive attention to the concerns our franchisee constituents. Of course the Brand.” We DO share the same within the franchise community we felt this is true, but we remain confident goal—profitable stores and a vibrant

were not being adequately addressed.” that we can continue to represent all continued on page 38

AVANTI MAY | JUNE 2018 37 continued from page 20 continued from page 37 of Americans—or 50 brand. Regardless of our differences million people—said we must find a way to work together. they are likely to buy an electric car for Both parties need to be willing to their next new vehicle. This number is up reengage in an effort to find solutions from 15 percent last year. • GasBuddy now al- to our many challenges in order to at- lows consumers to pay for fuel with the GasBuddy app at all Love’s Travel Stops tain our goals. “Regardless of our differ- locations across 41 states in the U.S. Gas- The In view Perfect of our current Storm relation- ences we must find a Buddy said it is currently working to expand mo- ship with corporate all I can say is bile payments with other fuel retailers, and that franchisee way to work together. expects to see feature usability in 20 percent of leaders always “With the dismissal Both parties need to be the nation’s gas stations by the end of 2018. • A must do what California Chick-Fil-A owner increased of this lawsuit, and they believe is willing to reengage in an some employee’s hourly wages to $18 best for the sys- effort to find solutions to and is offering benefits like paid time off while the appeal is cause we have no choice but to work underway, we are tem and for our many challenges in to others, reported WSB-TV. The franchisee said together to succeed. he made the move to attract and retain employ- left with a very dif- franchisees. Let’s hope that order to attain our ees looking for long-term opportunities. • Ford ficult relationship MICHAEL JORGENSEN Motor Co. is planning to phase out all of now we can re- goals.” CAN BE REACHED AT with corporate.” build trust, be- [email protected] OR 347-251-1828 continued on page 42

38 AVANTI MAY | JUNE 2018 ERIC H. KARP, ESQ., GENERAL COUNSEL TO NCASEF Over the last several months, a large franchisee to know if the packaging for “Over 350 7-Eleven franchisees number of franchisees—354 to be exact— these products, or any other products of have received demand letters from the any kind sold in the store, were not accu- have received demand letters California-based law firm, Tauler Smith, rate. That packaging is designed, manu- from the California-based LLP, stating that it represents Outlaw Lab- factured and affixed to the product by the oratory, LP, the manufacturer, distributor seller and never by the franchisee. law firm, Tauler Smith, LLP Resolutionand retailer of sexual enhancement prod-Of Outlaw On behalf of these franchisees we stating they had sold male ucts commonly known as Tri-Steel and had stated the following uncontested enhancement products LaboratoryTriSteel 8 Hour. Outlaw Laboratory Claimsfacts: the franchisees did not know and claims, without ever having produced any had no reason to know that any of the en- containing hidden ingredients.” evidence to us, that these products are all- hancement products in question con- natural and do not have any hidden drugs tained hidden or undisclosed ingredients, or ingredients. The demand letters allege ing at all. In addition, to that sexual enhancement products manu- the extent that any of factured by many other companies do these products were the contain hidden drugs or ingredients, subject of a Public Noti- which in some cases may actually be fication, this was not harmful to consumers. an action by a gov- The demand letters claimed that the ernment agency to franchisees that sold these products had ban the sale of prod- engaged in false advertising in violation ucts, only to advise of a federal statute. Attached to these de- consumers not to buy them. In short, mand letters were photographs of the none of the franchisees who sold any of stores that have been shopped by repre- these products did anything wrong. sentatives of Outlaw Laboratory, receipts In most cases, the demand letters re- for sexual enhancement products appar- that the packaging was in any way mis- ceived by franchisees offered to settle the ently purchased at the stores and a draft leading or incomplete, or that any of the claims for a one-time payment of $14,000. complaint in which Tauler Smith threat- products in question were the subject of Over a period of several months, we were ened to file in federal court against the any Public Notification by the United able to negotiate a global resolution of franchisee unless he or she settled the States Food and Drug Administration. In these claims, which is strictly voluntary to claim. That is to say, the claim was that addition, to the extent that any franchisee any franchisee that received a demand the packaging for these products did not sold any such product, the franchisee did letter. If the franchisee wishes to resolve disclose the hidden ingredient, which in not create, review or approve the packag- this matter, the franchisee must do the many cases was the active ingredient in ing that accompanied the products and following: Viagra. However, there was no way for the thus they did not engage in any advertis- 1. Complete and sign a form of Global Agreement of Compromise, Settlement and Mutual General Release (the Settle- ment Agreement); 2. Pay to Tauler Smith, LLP the sum of $2,500; and 3. Submit to Tauler Smith, LLP copies of invoices or statements reflecting their continued on page 42

“The letters contained a draft complaint in which AVANTI MAY | JUNE 2018 41 Tauler Smith threatened to file in federal court against the franchisee unless he or she settled the claim for $14,000.” continued from page 41 purchase of sexual enhancement prod- continued from page 38 ucts within the previous 12 months. its traditional sedans In the Settlement Agreement, the “Over a period of several except for the Mus- franchisee is not admitting to any wrong- months, we were able to nego- tang and upcoming Focus Active doing or liability with respect to the sex- tiate a global resolution of crossover in the North American market so it Resolutionual enhancement products Of and factsOutlaw on Laboratory Claimscan focus on SUVs and trucks, reported NPR. The which the franchisee would rely in de- these claims, which is strictly company said the decision was made due to defending any such claim, are also recited in voluntary to any franchisee that clining consumer demand and product prof- the Settlement Agreement. itability. • Walmart is implementing As part of the resolution, we agreed received a demand letter.” several new measures to combat the opi- to provide to Tauler Smith a list of all the oid epidemic, chief among them a new product distributors that have been iden- gredients. But as far as we can determine, policy that limits new prescriptions to a tified by franchisees. We did not disclose as of the date of this writing, none of these seven-day supply, reported the Orlando Sen- which franchisees purchased what prod- lawsuits so far have been filed against a 7- tinel. Walmart will also require electronic pre- ucts from which distributors. Eleven franchisee. scriptions for controlled substances starting An explanatory email and a copy of What the franchisee receives in return January 1, 2020 because they’re less likely to be the Settlement Agreement was sent last for entering into this settlement is a cer- altered and copied. • As part of its push into month to all FOA presidents and all fran- tainty of result, the expenditure of far less cleaner energy sources, BP recently invested $20 chisees who provided to us a copy of the money than you would spend defending a million in Israel’s StoreDot, a start-up that demand letter they had received from lawsuit, and an assurance that Outlaw Lab- claims its batteries can charge electric cars in ﬁve minutes, reported CNBC. • Quik- Tauler Smith. If you have received a de- oratory will not pursue them in the future, Trip Corp. has bought at least $10 million worth mand letter, but you have not yet been unless there are future sales of sexual en- of land in the San Antonio area as the c-store given an opportunity to review the Settle- hancement products that are on the FDA chain makes a major expansion into the Central ment Agreement, please email me at Public Notification List. You can access that and South Texas, reported the San Antonio Ex- [email protected] and I’ll be happy to list here: https://www.fda.gov/Drugs/ press-News. QuikTrip plans to add about 60 send you a copy. ResourcesForYou/Consumers/Buying stores in San Antonio and 40 in Austin Any franchisee considering the exe- UsingMedicineSafely/MedicationHealth with a few stores sprinkled in between the two cution of the Settlement Agreement is en- Fraud/ucm234539.htm cities along Interstate 35. • Despite all the couraged to seek advice counsel from We are pleased that we were able to buzz and excitement, mobile payment in their own attorney. negotiate what we think is a common stores still hasn’t gained much steam in Please understand that this settle- sense resolution of these claims. If you the U.S., reported Yahoo Finance. Mobile trans- ment is strictly on an opt-in basis and is have any questions actions barely accounted for $1 out of every therefore completely voluntary to the regarding the Settle- $100 spent in stores last year, and the percent- ERIC H. KARP franchisee. We do know that Tauler Smith ment Agreement, CAN BE REACHED AT age is expected to reach just 3.4 percent by has filed at least 5 Federal Court lawsuits you can direct those 617-423-7250 2022. • New research by mobile app company against sellers of sexual enhancement to your FOA presi- [email protected] Ibotta reveals that weekends are the most products that they say contain hidden in- dent or to me. expensive time to shop for food, regardless of U.S. region. Ibotta recommends shopping on weekdays to save money, like buying bread and beer on Wednesdays, sweets and snacks on Thursdays, and produce and ice cream on Fridays. • A severe shortage of truckers is pushing up freight costs and, in turn, nudging up retail prices, reported USA

continued on page 66 “What the franchisee receives in return for

42enteringAVANTI MAY into | JUNE this 2018 settlement is a certainty of result, the expenditure of far less money than you would spend defending a lawsuit.” Vice ’ Chairs ForumIT’S TIME TO GET BACK TO BUSINESS BY NICK BHULLAR VICE CHAIRMAN, NCASEF

Purchasing a franchise is in many ness, and our family needs to communi- ways like joining a family. Especially at cate to solve our issues and to live up to “ESPECIALLY AT 7-ELEVEN, 7-Eleven, where we get a lot of our serv- the expectations of our customers. It is a WHERE WE GET A LOT ices from our franchisor, we’re depend- fact that the national franchisee leadership OF OUR SERVICES FROM ent on each other, and our success is changes every two to three years, and SEI OUR FRANCHISOR, shared. If the brand is successful with a management changes, but the brand can’t WE’RE DEPENDENT ON good reputation, guests will react posi- wait, and we need to think about the EACH OTHER.” tively and shop at our stores. Likewise, if brand. If the brand is successful, then franchisees—the street presence of the franchisees will be successful and the franchisees that could be our fate, accel- brand—act positively as the brand’s rep- company will be successful. If we keep erated by our older stores, the consolida- resentatives, it will reflect positively on fighting, don’t communicate, and don’t lis- tion of the c-store industry, and the the brand and increase guest acceptance. ten to each other, the brand will struggle. fast-rising minimum wage. If the brand falters, or franchisees don’t We have a responsibility now to con- It’s now time to revisit the commu- keep up with the business, the brand’s struct a new level of communication, be- nications plan, and it’s time for fran- reputation suffers. cause competition is getting tougher and chisees to stand up and provide the kind We know that all families have dis- tougher each year. Big and beautiful of honest, quality feedback that only agreements. It’s a part of life. If we can find competitive stores are being built all comes from elected franchisee leaders ways to both handle disagreements and around us, and ordering freshly working with management at a express our frustration, we can move for- made food on smartphone high level. Both sides need to ward and continue our relationships. And apps is becoming almost com- reach out to make this work. If as we move forward, we must learn to monplace. The marketplace we can make this work we can communicate once again with our fran- doesn’t have the memory of move the system forward to- chisor, because we need them and they the past that franchisees gether. If we have communica- need us. The National tion we can change anything. Coalition represents “It is time for franchisees More importantly, it’s more than three-fourths and management to check time to get back to business. of the franchisees in the our egos at the door, and expect the Competition is running up our backs, and system (our members), kind of commitment it takes to we have so many issues to deal with—new and we have the elected maintain our number one ranking. legislation, new regulations, higher mini- officers of 43 independ- We need to think about the brand.” mum wage—that we need each other ent franchise owners’ more than ever before. We have to get groups sitting collectively on the Na- do, because consumers constantly want back to working together as a family. tional’s Board of Directors. It’s the nature new, bigger, better, and faster, which we Franchisee leaders should be able to help of leadership that leaders sometimes have to strive to provide. our members when they have problems. have to take chances, and this is the We have all seen the recent decline We’ve been to the edge, and now it’s time chance the national’s Board took to ex- in sales in other brand franchises. As a to step back and work together for the press the frustra- result of which, many other franchises benefit of the brand against the competi- NICK BHULLAR tion of franchisees. that were once in the ‘top franchise’ list, tion. If we can’t help our member fran- CAN BE REACHED AT Now we need a are now non-profitable and in continu- chisees fix their problems, then what good [email protected] new starting point. ous decline in terms of sales and number are we? We need to be able to talk to cor- or 626-255-8555 It’s a family busi- of stores. Without the commitment of porate to accomplish that.

AVANTI MAY | JUNE 2018 45 Franchisee Guest Column

LEADERSHIP…WHEN IT REALLY COUNTS BY TERRY HUTCHISON Vice President, South Florida FOA

We all have a story to tell. In both our personal and pro- I am origi- fessional lives, we have experiences that would provide more nally from than enough opportunity to fill volumes of books. Some of Oklahoma. My our individual stories might read like a comedy, some would single mom be like a drama and, perhaps for others, more like a mystery. moved from there to San “HOW WE Our stories are all different in the details. Nevertheless, Bernardino, California MANIFEST for those of us who are 7-Eleven franchisees, we have simi- when I was close to four LEADERSHIP TO larities in terms of being leaders. We provide leadership to years old and placed THOSE WHO RELY our store teams. Our store teams provide different levels of me for adoption when I was five. UPON US IS leadership to other employees as we execute the wide range I had a new family, a totally new IMPORTANT.” of work it takes to successfully run a 7-Eleven store. name and, in just a short amount How we manifest leadership to those who rely upon us is of time, we moved to Oklahoma where I grew up. My child- important. This includes our family, our employees, our team- hood was probably very similar to yours—school, sports, mates and the numerous business partners who are also stake- friends and so many other experiences. I had opportunities holders in our success. The way we respond to challenges as to get involved in organizations at school, church and the leaders, matters. community in general. These provided my first life-experi- What are some of the chal- ences in leadership responsibilities. “THE INTENSITY OF lenges a 7-Eleven franchisee might As I matured, I came to learn about a famous Oklahoman WORK NECESSARY encounter that will test your lead- named Will Rogers. He was a stage and motion picture actor, TO MEET OUR CUS- ership? There are many! In vaudeville performer, American cowboy, humorist, newspa- TOMERS’ NEEDS Florida, we are now entering an- per columnist and social commentator. Although he had other hurricane season. The last passed from this life in 1935, I came to appreciate what he left HAS INCREASED one to hit us was Irma, just last behind. Will Rogers often spoke on leadership and there is no DRAMATICALLY AS year. We suffered financially in question that he made me smile. Even now, I often draw upon WE HAVE GROWN many ways and the stress it in- his common sense and wit to help me through difficult situ- FOOD SALES AS A flicted on everyone in our com- ations. PERCENTAGE OF munity was significant. Events Over the past few years, we have experienced significant OVERALL MER- caused by disaster, social unrest, or changes in our business. Several competitors have effectively CHANDISE SALES.” supply disruption can put your transitioned into the made-to-order food business (or some leadership in the spotlight. variation thereof) while developing a gasoline-pricing model Another common challenge is the failure of your store that attempts to place them consistently at or near the bottom team in maintaining the high standards it takes to execute of the market. The density and intensity of work-product nec- brand excellence. This usually starts with those not consis- essary to meet our customers’ needs has increased dramati- tently executing job assignments, which then places a cally as we have grown our food sales as a percentage of tremendous amount of stress on others. This stress is then overall merchandise sales. compounded exponentially when the weaknesses are doc- Technology improvements have helped us and we are on umented, placing you on notice that changes need to be the cusp of driving incremental foot traffic through even made. more innovative ideas, which we hope will provide us with a continued on page 48

46 AVANTI MAY | JUNE 2018 AVANTI MAY | JUNE 2018 47 Franchisee Guest Column

continued from page 47 differentiating factor in our favor. We clearly don’t needed, seek a private space. Respect is something have the newest, largest stores in our market areas; everyone deserves. nevertheless, when faced with competitors 3. Introduce Stability: People’s minds are who do, we can effectively counterpunch by changed through observation, not argu- delivering the absolutely best service in a ment. Let your people see you have their clean, well-stocked store with items our best interests at heart. Stability on a store customers want. team can be greatly enhanced by some- I believe “best service” expectations thing as simple as job assignments. It’s not are already changing to include what I easy ensuring that each team member is “YOUR STORE TEAM call “App-titude,” which means we are properly completing their portion of the able to effectively serve the wired-up, SEEKS STABILITY IN YOUR job assignment. Nevertheless, when it fi- cell phone carrying, #-tagged, Face- WORDS AND ACTIONS, ESPE- nally happens, you will see the effective- book-connected generation by meeting CIALLY WHEN FACED WITH ness of teamwork in your results. them in their space. I think our partner, DISASTER OR OTHER DIFFI- Stability is also achieved through ef- SEI, is working hard to get us there in a big CULT SITUATIONS WE fective communication. The key word is way. If we are successful, it can be a game- DON’T USUALLY FACE “effective.” Your message has to be clearly changer. understood by everyone on your team and, DAY-TO-DAY.” This comes at a time when we are needing to you should verify it. Failure to do so can end up heal our relationships with our brand-partner. It’s time in disaster. A good example is the phone scams we for all of us to focus on growing our business well beyond often experience in our stores. If we miss the new employee what has been historical growth trends. How successful we on the overnight shift, or the second shift employee really are in accomplishing this will depend on our individual lead- didn’t understand that someone might call and pretend to be ership. My old friend Will Rogers said, “ Even if you are on from our Information Services Department, then we have the right track, you’ll get run over if you just sit there.” failed. There are five things we can do as leaders in taking our 4. Be Positive: Live in such a way that you would not be business to the next level: ashamed to sell your parrot to the town gossip. We can all find 1. Build Confidence: Make smart decisions as a fran- things to complain about, but seriously, why waste the energy? chisee. Our people are truly our greatest asset. We all recog- A good leader won’t simply walk away from processes and nize we can’t run our stores alone. Your store team seeks problems having a negative impact on the business. Instead, stability in your words and actions. Control your fears and find a way to channel the negative into something that will provide the confident direction your people need from you. improve the situation. This can be as easy as documenting the This is especially valuable when faced with disaster or other problem in detail, along with a suggested solution and send- difficult situations we don’t ing it to those who can make a difference. Do it in the right “WE HAVE A usually face day-to-day. spirit. Eventually, your thoughtful consideration will make a RESPONSIBILITY 2. Show Understanding difference. TO PROVIDE THE and Appreciation: Serving 5. Be a good franchisee, in good times and bad. We will BEST LEADERSHIP the public in one of our stores always have external influences that seem to divert our at- POSSIBLE NO is a tough job. I love it and it tention from that which is important to our success. This can be fun. Make sure your can be anything from dealing with a major hurricane such MATTER WHAT IS people clearly know that you as Irma, road construction, new competition opening up BEING THROWN value their contribution. Re- just down the street, working with someone new in an over- OUR WAY. IT’S PART member the basic leadership sight position, failing equipment and the list goes on and OF BEING A GOOD best practices such as prais- on. We have a responsibility to provide the best leadership BUSINESS OWNER.” ing people in public for jobs possible no matter what is being thrown our way. It’s part well done. If redirection, of being a good business owner. Don’t let yesterday use up counseling or reprimand is too much of today!

48 AVANTI MAY | JUNE 2018 Presidents’ Reports 2nd QUARTER 2018

Every Franchise Owner’s Association is offered the cuss and analyze this program at our FOA May 9-10,2018 2018 meetings in July. opportunity to submit a President’s Report for this On May 24 we held and celebrated our feature of Avanti. President’s Reports are an opportunity Puerto Rico 25th Annual Charity Golf Tournament at Reportsfor your FOA president to tell franchisee members from the River Walk Golf Club in San Diego. It other parts of the country what issues your FOA is talking was well attended by franchisees and our about, what events your FOA is celebrating, and what concerns vendor partners. We also had representation and opportunities are foremost in franchisees’ minds. by our National leadership, the Southern 2nd QUARTER At the NCASEF Board Meeting in Puerto Rico, May 9-10, 2018 California FOA and FOAGLA. the main topic of discussion among most members was the dismissal of the lawsuit brought by four franchisee members and supported by the Columbia National Coalition. Board members wanted to know why the suit was dis- Pacific FOA missed, why it was brought in the first place, and if there was going to be an HARBHAJAN GHOTRA, PRESIDENT Presidents’appeal. Members voiced concerns about getting back to business with 7-Eleven, NCASEF Executive Vice Chairman Michael Jorgensen. Inc. and the ability to get back to talking to Zone and local management. Lastly, the CPFOA's annual Holiday The Columbia Pacific FOA will be hold- NCASEF Vice Chairman Rehan Hashmi. Party will be on November 30 at The Hilton, ing an election this month to elect a new located at 301 W 6th St., Vancouver WA. Alliance Board members also discussed Board. The current Board members' terms presidents. We will meet monthly to address Minimum wage in Massachusetts is $11 per The contact person for this event is the effect of the new contract on low volume FOA of Greater will expire on June 30. The Board has made current concerns and work on solutions. hour, and finding, hiring and keeping good Stan Singh, and he can be reached at stores, and whether the start dates for gross Los Angeles the decision to uphold the bylaws—and ac- The new agreement and minimum wage in- help is a challenge. [email protected] or 360-513-0289. income support might be adjusted to start cording to the bylaws, an election must be KATHY YORK, PRESIDENT crease is of great concerns to California Other challenges include many cities at the beginning of the year, which is typi- held every two years. We look forward to franchisees. Our Zone is beginning to do and towns in New England banning blunt Alliance Of 7-Eleven cally a slower sales period. Gas price more remodels this year. I believe they have wraps, cigarillos and flavors, and changing seeing new faces join our Board. Elections We had a slight sales increase during the changes were mentioned as well. Although been scaled down, but vault and curb appeal the age to purchase tobacco to 21. The entire give us the opportunity to enact change Franchisees FOA first two months of 2018. The cigarette sales the changes were set up for 24 hours, in will be addressed. Commonwealth of Massachusetts will be at through appointing new leaders who bring tax went up $2 per pack last year, and there SAJID AHMED, PRESIDENT many cases it can take as long as 48 hours, 21 on January 1, 2019. The one bright side different perspectives to the issues fran- were many price changes which can affect sales. of the tobacco sector is that Juul is providing chisees face today. We welcome this change done to offset the mini- The Alliance of 7-Eleven Franchisees re- Ron Bomkamp, Heartland Zone DVP, phenomenal growth in that category. There and are excited about the positive ways this mum wage increase, but it viewed issues such as increased competition, and Alliance Board members discussed the are concerns in many school systems about will affect us all. is not enough. GP% is gas price changes, gross income support and issues in detail at a subsequent meeting. under-age students vaping. The FDA has The franchisees in Oregon and Southwest about 37, but we need to low volume stores at our most recent Board Bomkamp promised to look into these fran- become aggressive with compliance checks. Washington are facing greater worries due to be over 40 percent to off- of Directors meeting. chisee concerns and respond soon. Encourage all of your members to ID! Fi- the rising costs of doing business and decreas- set the minimum wage in- Gas stores and donut chains have re- nally, there are a lot of concerns about the ing income. Although we are apprehensive crease. Gross profit on cently opened in proximity of Alliance mem- Greater 2019 Agreement. about the future, we are optimistic in believing cigarettes has fallen to that the incoming warm summer weather, as bers’ stores, and others have been very Oregon FOA about 13 percent. recently remodeled. Other retail outlets, such San Diego FOA well as the power of the 7-Eleven brand, will NAEEM KHAN, PRESIDENT We had a very in- help us get through this difficult time. as liquor stores, have also affected profitability. formative meeting with BIC SIDHU, VICE PRESIDENT U.S. Immigration re- In April we had our second annual cently and the officer re- NCASEF Chairman Jay Singh. trade show. It was very successful; we had Franchisee morale in San Diego has viewed with us how to more vendors than last year and over 120 New England FOA been low. The continuous increase in ex- complete I9s and told us what Homeland franchisees and store employees attended. penses and wages, declining Gross Profit Security can and cannot do when entering DENNIS LANE, PRESIDENT We had excellent feedback from the vendor Percentage, and the upcoming 2019 agree- our stores to conduct an audit. I would rec- community. ment are the key causes of low morale. SEI ommend all California stores take advan- We are having a meeting with ICE to May in New England and the Greater has introduced a new program for fran- tage of this meeting with an Immigration give information on the correct way to do Boston area was wet with temperatures well chisees staring June 1st to get emerald status representative. Call me if you would like I9s, and how the audit process works. We below normal. Fifty percent of the Memorial and receive $1,000. The issue being stated is contact information. are looking forward to our golf tournament Day weekend was a washout. Most stores are that if the store achieves emerald status and In April we began holding a President's on August 16. All franchisees are welcome struggling. We are cycling against huge num- doesn’t increase 5 percent in Gross Profit, it meeting again that includes six local FOA NCASEF Treasurer Jas Dhillon. NCASEF General Counsel Eric Karp. to enjoy the summer in Oregon. Please bers last year lead by the sale of Spinners. will not get the $1,000. We will better dis- continued on page 54

50 AVANTI MAY | JUNE 2018 AVANTI MAY | JUNE 2018 51

Presidents’ Reports 2nd QUARTER 2018 continued from page 51 contact President Naeem Khan at 503-516- Washington DC “The focus of 3483 for more information if you would like to attend our tournament. FOA Washington, D.C.’s re- MARK CHIOCHANKITMUN, PRESIDENT Texas FOA modeling will be new RAJ SINGH, PRESIDENT Approximately three years ago, the equipment to attract Washington, D.C. minimum wage was $8.75 an hour. On July 1, 2018 the Washington, D.C. millennial customers.” We had a very successful trade show on minimum wage will be $13.50 an hour. En- May 23, 2018. Almost 70 vendors participated croachment also has been an issue for fran- along with other platforms like bake in store. and over 200 franchisees attended. On May chisees as many sites selected by former SEI Fried chicken is also being added to gain and 24, 2018, we had our golf outing and all of the Real Estate Management threatened existing improve franchisee net profitability and to re- proceeds went to benefit Swim Across Amer- stores. Many of our franchisees have been remain relevant to our customers. Most impor- ica. We had about 100 players. Michael Jor- ally affected by encroachment. tantly, the SEI system must provide an avenue gensen attended our trade show and he spoke The Wawa convenience store chain is for franchisees to make enough income to with franchisees. We raised approximately the making a presence in Washington, D.C. and support their families. same amount as last year—$25,000. has announced plans to open 12 more loca- This is my last President Report, unless In June, the Lone Star Zone anticipates tions in our area over the next few years. This our fellow franchisees can support their fam- very strong sales, with the biggest growth is fierce competition for us. Our mini flash ilies working in their stores with their lifetime coming from Powerade. Texas is the num- mob issue has not gotten worse; however, it investment into the SEI franchise system. I ber one Zone in the country driving sales has not been better either, so it’s still bad! wish everyone well. in Powerade. Our morale has been at our lowest and At our upcoming Board meeting we will we hope it can’t get any worse. The 2019 Sacramento be addressing franchisee issues with our Zone Agreement will be out around the first leader, Randy Quinn. We have a good rela- Valley FOA week of June 2018 and we can only hope tionship with our Zone leader. He listens to JAY BRAR, PRESIDENT for the best. our concerns and we have a great relationship On a positive note, in the Liberty Zone— with him and his team. which includes Washington, D.C.—we have Layers of anxiety, apprehension, and been blessed with a great former Zone Leader mystery have blanketed area franchisees after and current Zone Leader who are willing to the announcement of the forthcoming 2019 work with FOA leaders toward the same Franchise Agreement. There has been lots of goals. We will be getting 50 stores remodeled. speculation surrounding this. SEI staff in this The focus of the remodeling, beside the better area is, indeed, handling it very diligently by store appearance, will be putting in new keeping a close and warm relationship with equipment to attract millennial customers, the local FOA leadership. Although only time will tell the real outcome of the Agreement, franchisees are carefully walking the thin line. Southern California FOA President Paul Lobana. On a positive front, SEI is investing in area stores by making significant changes to the infrastructure in order to enhance the likability, appeal, and appearance of the stores. Everyone knows that the landscape of the convenience industry has changed above and beyond, but the question remains: What is next for the NCASEF officers with FOAC franchisee Hashim Syed, center, who is retir- New England FOA President Dennis Lane. ing from the system. continued on page 56

54 AVANTI MAY | JUNE 2018 Presidents’ Reports 2nd QUARTER 2018 continued from page 54 Metro New they can from their FC. Our goal is to bring all franchisees together and make them feel Jersey FOA like they are family members. HARI PATEL, PRESIDENT We all have issues with running our businesses, and FOA meetings are a great place to meet with other franchisees to talk about it. In the past year we have seen most stores Our FOA meetings in the past four quarters lose customer counts and experience declin- have been very successful. At our last meeting ing sales. This is due in part to the weather, we hosted 190+ attendees. We have been able which has been colder and unpredictable. We to provide our FOA members with more have seen the Trump effect in urban areas guidance and knowledge. where we have a high rate of Hispanic guests. Midwest FOA Board Member Joe Rossi. The uncertainty of immigration policies has worried our guests. In- creased competition between Wawa, Quick Chek and other 7-Elevens has also not helped sales. Franchisees are making less and less every year, while the cost of doing business is increasing every year. Newly elected Democratic Governor Phil Murphy has promised certain changes to the law, which can highly impact the way we UFOLINY Vice President Basit Kurshid. do business. He wants to legalize Greater Seattle FOA President Ajinder Handa. marijuana, raise the minimum wage already "busy bee" franchisees? Many mem- This year we took our trade show back to $15 per hour, make community college to Atlantic City, and we targeted at least 50+ bers of the Sacramento Valley FOA, in order free, protect the Dreamers, mandate earned vendors. This year we also decided to give to get a pleasant break from their daily busy sick leave, and fight gender pay discrimina- free hotel rooms to our FOA members so schedule, are eager to attend the Orlando tion. While some of these might help our they can stay after attending the trade show. Convention and Trade Show hosted by business, the biggest one that will definitely Last year’s Holiday Party was also a huge suc- NCASEF with their family members in July. impact franchisees in New Jersey will be the cess, even though the weather wasn’t favor- Oh Thank Heaven, we have the National $15 minimum wage. This will leave us no able. We had around 100+ gifts that we Coalition! other option than raising prices in our stores raffled off and our franchisees were happy to and cutting staff, which might bring the qual- support our vendors. Baltimore FOA ity of service down for our guests. BARBARA GRAHAM, PRESIDENT Zone Update: Recently, we have seen a restructure of field consultants. It seems FCs South Nevada/ are being given more stores than they can Las Vegas FOA Summer has finally arrived in the Balti- handle. This is putting pressure on them, as KEVIN LUCERO, PRESIDENT more area. It has been a long winter and just they cannot spend enough time at the store. like everyone across the country, we did not We have some FCs who have close to 13 have the great growth from Spinners this year. stores. We are hoping for another restruc- March sales for Market 1607 are slightly At our last Board meeting we talked about ture where we can get back to 8-9 stores per up $5.67 a day, and slightly down -$6.66 a day growing sales and profits in our stores to off- FC. It would be better for business, as well for Market 1607. Average GP for 1607 is at set the higher wages we are paying. Fran- as for the FCs. 35.76, and 34.48 for 1608. The Southwest chisees expressed concerns about the Metro NJ FOA Update: Our FOA has Zone average for March was 35.72 percent. difficulty of finding labor. The most talked been on a roll in regards to adding more stores Guest counts continued to decline by -22 in about topic was the new contract. By the time to our group. We have created a WhatsApp Market 1607, -13 in Market 1608, and -36 for this article is printed we will have seen the group for franchisees where they can share is- the Zone. new contract and will have our answers. sues, concerns and get answers faster than continued on page 58

56 AVANTI MAY | JUNE 2018 Presidents’ Reports 2nd QUARTER 2018 continued from page 56 The weather has been warm this spring, ing them with Slurpees for good behavior and Berkley wants to become tobacco free and we are looking for a hot season that deeds. It is a positive reinforcement for our and only sell all tobacco from smoke shops. should boost sales. Construction is booming brand and community. California has tried to ban all tobacco. Our once again in the city, so we are hopeful to Last but not least, our amazing hockey lawmakers even had a bill in the California see an increase in sales at our stores due to team the Golden Knights has energized our Senate in a committee, but it didn’t get out of this vigorous building activity. city. They made it all the way to the Stanley there, so that’s not going to happen. We have had a push on toys for this quar- Cup in their inaugural year. We had a local During the month of May we had very ter and the coming quarter to help boost sales, franchisee come up with the idea of a cold weather. We didn’t see any hot days. as we are challenged by last year’s big numbers Golden Knights donut. SEI agreed, and we Some stores are down double digits com- from the Spinners. We are trying to find the worked together to develop a pastry product pared to last year. next big thing or a collection of decent movers to celebrate our team. It took on a life of its We recently had our Rally For Success Juul Labs representative Jordan Nicgorski. Mark Gramlich discussed Swim Across America Charity. Joe Saraceno FOA President Matt Mattu. to keep pace with last year’s sales. meeting to try to figure out ways to improve own when a local radio station got wind of continued from previous page Our Board has been very active with this and it was determined that these were sales. They are talking about cleaning up the show. This event was a huge success—we had only one cigarette license. Right now, they We had a successful trade show in At- our Market Manager on merchandising. We the lucky donuts that were propelling the stores, staying in stock, and providing better a great turnout of 67 vendors and 129 stores. are on every corner, in every market, in lantic City with about 50 members attending. have had several meetings and feel we have team to victories throughout the playoffs. service. Finding proper labor also is becom- This would not have been possible without every convenience store. They want to cut We had a nice dinner of Indian and American been productive in working together to The station was buying some and handing ing a serious issue in the Bay Area due to the help from the franchise community. It really down on the number of licenses in the city. food, a DJ and about 50 prizes, including cash make some changes at a local level that will them out to high cost of living and low unemployment gave all of us a great sense of achievement by This will make selling your store to another prizes of $1,000, $500 and $250. People left improve sales and GP. They have been open listeners dur- rates. The average home in the Bay Area seeing most franchisees remaining at the franchisee close to impossible. with a full bag of goodies. It was a great event. to suggestions, and we are optimistic that ing a few home costs over $1 million. these meetings will be productive and bear We are gearing up for the 100 Days of venue until the end. It was quite apparent we Delaware Valley franchisees were at a After losing the lawsuit against SEI, right games. Dozens all had a great time. Exuberance was exhibited City Council hearing recently to discuss this now, everyone is shocked. We will have an- fruit for both franchisees and SEI. more donuts Summer, but the weather hasn’t agreed. Hope- We had our Annual Trade Show on May fully, we’ll have good weather soon. We re- by many of the franchisees attending the issue with our Philadelphia lawmakers. We other meeting in the beginning in July. Our were donated event, who also supported the vendors by way educated them on how this new law will affect members are upset. 7-Eleven is trying to buy 23 and it was a successful event. We had close by our vendor cently had a very successful trade show. Our to 50 vendors participate, and had a slight in- next event is September 10, 2018 at the Castle- of aggressive ordering. These became the hall- our stores, but we still have some work to do. out the old franchisees. Gross profit is down, Carl’s Donuts marks of our success. Each vendor left with a We talked to eight Council members and we we are not making money in some stores and crease in franchisee attendance. Our Charity and we got wood Country Club, which will be a golf tour- Golf Tournament was fun and successful, as nament benefiting the MDA. Our Holiday promise to come back and support us not are going back to talk to the rest of them. We SEI is offering to sell our stores for us. They some great free well. We were able to support and two chari- Party will be held on December 7, 2018. only for our next trade show, but also every say we are grandfathered into the 50 percent press out of it— ties—Swim Across America and St. Judes In our Board meetings we talk mostly event that both FOAs organize. of the franchisee fee back. That’s what they are for our stores “At most meetings Ranch—with this event. We thank our Na- about labor issues. Everyone has them— Sales have been very flat in Washington doing in our market—they are buying out and Carl's. Go tional Chairman Jay Singh for coming out and MISG Risk Engineering Consult- stores, vendors and everyone else. We are State this year, and bad weather is a major factor. our Board talks franchisees. That’s a hot topic. Knights Go! supporting us at both events. It was good to ant John Harp. looking for ways to stay in stock and prepare Currently, our two Markets are up by 2 percent. about labor issues, We are struggling with sales. The market have him with us for a few days. ahead for holidays. Buying from recom- is down and the weather isn’t helping. Gross To encourage our local franchisees to at- San Francisco/ mended vendors was another issue. With the Delaware because everybody profits are down. City stores are okay with the tend the NCASEF Convention, our Board is Monterey Bay FOA Rhino pill issue, we stressed not to carry the Valley FOA gross profit, but suburban stores are strug- offering to pay for two nights hotel and the male enhancement pills. Our relationship has them.” gling at the 25-27 percent GP rate. Cigarette ANN SEKHON, PRESIDENT MANZOOR CHUGHTAI, PRESIDENT registration fee ($250 total) to those who at- with local SEI management is good and they sales are down. Everyone is selling at the min- tend our next General Meeting, register for are working with us. have about nine Council members in our imum in the suburban areas and we are down the Convention there, and follow through by San Francisco’s tobacco ban vote was at At our last Board meeting the main is- favor who would vote to drop the new law. about 7 percent in the suburban stores. attending in Orlando. the top of our list of concerns, yet San Francisco Greater Seattle FOA sues we talked about were the 2019 Agree- Our DVFOA Vice President Bilal Barqawi, We are proud to say local franchisees do- residents voted on June 5 to uphold the city’s ment, the cigarette permit and a new Board member Vince Emmanuel, our market Joe Saraceno FOA AJ HANDA, PRESIDENT manager Janice, some local Philadelphia fran- nated $10,900—and SEI matched that ban on flavored cigars and menthol cigarettes. restriction on tobacco licenses. We now MATT MATTU, PRESIDENT amount, for a total of $20,800—to a local This is for all flavored tobacco and menthols. have to buy a new cigarette permit in addi- chisees and myself were there. The Philadel- phia Health commissioner was also there. He Clark County School Grant that our Market On July 1, 2018, flavored cigars and menthol The minimum wage in our area in- tion to the state license. In addition, the city called the mayor and the mayor told him not At every meeting and at every social Manager, Cassie Ruppard, spearheaded. SEI will be sold in tobacco shops only. Other stores creased to $15.45 per hour as of January 1. Be- of Philadelphia has passed a new law that if to make a decision yet and to compromise. I gathering the franchisees are crying out for and FOA members presented our local law that sell 60 percent tobacco and no alcohol will sides using various ways to survive—such as your store is within 500 feet of a school, you don’t know what that compromise will look help so that they can continue to keep their enforcement with 21,000 small Slurpee also be allowed to sell it. 7-Elevens in Oakland raising SRP, tightening up labor hours, and will not be able to transfer your tobacco li- like. He was suggesting allowing storeowners stores open for business. The main topics of coupons recently. This was part of Operation won’t be able to sell flavored tobacco products working extra hours themselves—many fran- cense if you sell your store. The new owner to sell their business one time and the license discussions are: Chill, which has been very successful over or menthol cigarettes. They will go to the chisees are already on the verge of turning will have to apply for his own tobacco li- would transfer once. We said no, we don’t • The graduated gross profit split is a killer in many years in having local law enforcement smoke shops, and the smoke shops can’t sell their stores over to SEI. cense, and Philadelphia is making it very want that condition. We are waiting and they high volume stores—the more the sales go up, reach out to youngsters in our area by reward- food. California approved marijuana, but they On March 29, the Greater Seattle FOA difficult to obtain one. If there are 1,000 can’t get over tobacco, apparently. and Pacific Northwest FOA held a joint trade people in a neighborhood, they will issue have postponed the decision until September. continued on page 60 continued next page 58 AVANTI MAY | JUNE 2018 AVANTI MAY | JUNE 2018 59 Presidents’ Reports 2nd QUARTER 2018 continued from page 59 the less we take home, if anything at all. This the franchisee is filled with uncertainty. yet, so this is only what we’ve heard through formula must be adjusted. With the current landscape, franchisees the grapevine. I hope they’ll see the difficul- • Non-24 hour stores: Franchisees should not face labor shortages and increased labor ties that franchisees face—labor shortages, be charged for every hour the store is closed costs. In our FOA and some demograph- increased costs, regulations. I am trying to if this is a landlord or city requirement. ics it is hard to find people to work for approach this new contract with an open • The minimum wage has doubled and there $16. The key is the growth of our business mind. I’m taking my franchisee hat off to is no compensation from 7-Eleven. The main line with the pay scale. analyze it on neutral ground. jority of the stores have gone into custom Regulations on tobacco are killing us. I think in the last 30 years, we are pricing to raise the GP, but this option may I think SEI needs to focus on those issues. going through one of the best economies confuse our customers as we are not uniform Who can survive without a tobacco li- that I’ve seen. I feel that when the economy from store-to-store and we may start losing cense? If you sell your store you can’t trans- is booming, the small businesses suffer. It customers as a result. The local license fees fer the tobacco license. I think SEI needs to may be booming for corporations, but and trash fees have doubled. adjust to the times. small businesses can’t compete. Large • Accounting: When we call Accounting we stores are poaching our employees. If you are on hold for more that half hour at a time pay $11, they’ll pay $15 with benefits. We and it is very frustrating to hear that they “So why am I a 7- can’t compete in that environment. That’s can not resolve the issue. Now we hear that Eleven Franchisee? where I think SEI needs to step in. As a the Accounting Department may be franchisee, I can simply tell them what through a third party. This may cause bigger Because I love franchisees need to survive. problems like we are having with the main- Good things are happening. There tenance company and the franchisees end what I do and I love are system changes and apps and online up paying additional charges. functionalities that are digitally enabling • Audit companies are still not accurate with brand 7-Eleven.” franchisees to better run their stores. our audits and we have to cycle count the Scanning lottery is much easier. These ef- whole store again to get the “I” accurate. As we speak, the new contract is com- forts are appreciated by the franchisees. My sincere hope is that SEI will review ing out. I feel that the company wants to Our trade show was excellent. For the the above factors affecting our bottom lines promote the brand name and they will come last five years the Central Valley, Greater so we can continue to engage in our commu- out with a reasonable contract, which is a Bay and Northern California FOAs have nities and grow our store sales without being win-win situation for SEI and franchisees. I combined to deliver one big trade show, penalized by GGP, and stand united as proud got into the system over three decades ago. which was held on March 23. It was a franchisees of 7-Eleven. At that time, the veteran franchisees were great event. It’s a fun thing where fran- getting out saying that the best times were chisees get together. I miss that SEI does Greater Bay FOA over. Now the next generation is saying the not attend. We had our golf event for MANJIT PUREWAL, PRESIDENT same thing. Some of that is perspective (psy- charity on May 21. We do it for the Hume che) rather than reality. At times, we all have Center, which helps the underserved, to change. I’m not saying that SEI is wrong, mentally disabled and people with brain Lately, the only topic of conversation but I believe some of the aspects of the con- injuries to live a healthy lifestyle. has been the new contract. The psyche of tract are harsh. We haven’t seen the contract continued on page 62

Greater Seattle FOA Vice President Chandar Shekhar. UFO of North Florida and Palm Beach Ed Denorio. Texas FOA President Raj Singh.

60 AVANTI MAY | JUNE 2018 Presidents’ Reports 2nd QUARTER 2018 continued from page 60 Going forward, we are going to have and continue to grow and buy more stores. our Holiday Party on December 7. We are They want to be positive, but they have moving the venue to where we hold the golf fears that the system isn’t going in the di- outing, Hiddenbrooke Golf Course. We rection of growth for the franchisee. They give up to five scholarships to worthy stu- don’t know if it is going to get worse and dents that are children of our employees. may have to look to other business oppor- Sometimes with these headwinds, tunities to support their families. Fran- franchisees get discouraged. But at the last chisees want to feel like they are worth RI meeting I attended, our Zone manager something and are an important part of the gave a speech that worked me up. When 7-Eleven business model. your team is losing and you huddle around It is the hope of many franchisees that your coach, and he encourages you to go our franchisor shows a little good faith and Chesapeake FOA President Brett Creekmore. out there and do your best and you score offers something that will make us feel pos- the goal—this is how I felt after that Zone itive about the future. 7-Eleven franchisees manager speech. The morale of the fran- and their families have worked hard in their chise community is down and I was feeling stores and have helped build the 7-Eleven down that day. But when our zone manager spoke for a few minutes, I felt lifted up “FOA meetings and encouraged. I felt, “Let’s go out and score.” That’s how I feel about the whole are a great place SEI and franchise community. We can go out and win. We need to be realistic and to talk about work together in earnest. issues with other

U.F.O. Of North franchisees.” Kansas City FOA President Khalid Asad.

Florida & Palm brand. Franchisees already are being chal- tration; PJ Clayton—Executive Vice Presi- Beach lenged by increasing labor costs due to in- dent/Chairman of our Wounded Veterans ED DENORIO, PRESIDENT creasing minimum wages throughout the Charity called “Project Healing Waters;” Jason country. In the interest of moving forward Cowley—Charity Golf Tournament Chair- and beginning to work together with fran- man/Board Member; Paul Love—Assistant 7-Eleven makes business deci- chises, it would be nice to see the company Secretary/Golf Tournament Assistant; Stu sions, and franchisees make business deci- go back and review what they spoke about at Wallace—Board member/Director of FOA sions. We made a business decision last the town hall meetings. The new agreement logo/signage; and the following Board mem- October to pursue legal action against the doesn’t support some of the terms that were bers: Jagmohan Thind, Amitpal Singh, Push company and after some time the judge dis- discussed in the town hall meetings. Fran- Walia Singh, and Jagdev Singh. missed our case. It wasn’t that franchisees chisees just want a fair and balanced contract Special thanks to our vendor partners were against the company. Conversely, that will allow them grow within the 7- who believe in supporting the local Fran- when the company makes decisions, it’s not Eleven franchise system. chisee Owner’s Association and providing us that it’s against the franchisees. They are all Let’s work together to reach new heights with innovative and relevant products to just simple business decisions that are made and common prosperity. It can be done! meet the ever-changing buying needs of our to support the concept of improving busi- guests. Also, I want to thank our Southwest ness. Now that the judge has spoken, we Utah FOA Zone Vice President Enid Cangialosi; former need to get back to the table and do what’s Zone Merchandiser now Market Manager WALLACE IMAMURA, PRESIDENT right for franchisees and the 7-Eleven sys- Casie Ruppard; —Market Manager Russ tem. In the long run, only the brand is Neilson; Market Manager Andrew Hickam; going to get hurt. We need to put this be- The Utah FOA has just completed a most and Business Consultants for supporting our hind us and get back to business. successful Trade Show and Charity Golf trade show in past years! It is with great re- Everyone wants to talk about the new Tournament! Many thanks to Lani Roberts— gret, that due to the political environment we contract. Many of the newer and younger Treasurer and Trade Show Chairman; Terri could not have the support and collaboration franchisees want to remain in the system Imamura—Secretary and Trade Show Regis- we have had in the past. I truly understand continued on page 64 62 AVANTI MAY | JUNE 2018 Presidents’ Reports 2nd QUARTER 2018 continued from page 62 this position and hope for better days in the future. We cannot be successful as a brand “We’ve got to come without one another. I would like to also thank our amazing together to move franchisees who have joined our local FOA. Our FOA members represent 70 percent of forward. We won’t the stores here in Utah, which is truly amazing! We are not resting on our laurels and are accomplish any- looking to grow our membership. As franchise owners of this iconic brand we need to thing if we don’t.” Baltimore FOA President Barbara Graham. work towards supporting one another, to building our businesses and sharing helpful cases no. “Brand Excellence,” which has roots ideas and practices. We also need to get in- in Utah, is what I call the next step in the pro- volved in our communities with Project A gression of “Back to Basics.” It is a great pro- Game, in local charities and in supporting our gram. Kudos to our Market Manager Andrew first responders. We are the face and voice of Hickam and team for their positive energy Brand 7-Eleven! and engagement with their franchisees. The “Back to Basics” has given us a founda- concept is good. It helped my stores to focus tion to build upon. Is it enough to help us in- in on things that can increase GP% and dol- crease our customer counts and increase our lars. Clean stores, focusing on quality of in- Northeast FOA President Mohammed Malik. profitability? In some cases yes, and in most continued on page 66

Order NOW! UIN 098817 Presidents’ Reports 2nd QUARTER 2018 continued from page 64 ventory with the right selections of product, pray for our leaders on the NCASEF head continued from page 42 customer engagement and leveraging 7RE- table, as well as Mr. DePinto and his team to Today. There’s a shortage WARDS with our guests helps build customer have a new vision to the survival of our Brand. of 51,000 truck drivers loyalty and return visits. Does it guarantee an Aloha and Mahalo Nui Loa. nationwide, according to the American Trucking increase in customer counts and profitability? Associations, up from 20,000 in 2013 and The answer is no but, it has lifted a majority South Florida FOA 36,500 in 2016. The ATA projects the driver gap of our store's sales and profits, and for once TERRY HUTCHISON, VICE PRESIDENT will increase to nearly 100,000 by 2021. • Sears we outperformed our neighboring Market that was the control Market. Like all things, will be closing 72 more stores in 2018 as there are pros and cons. The South Florida Franchise Owners its same-store sales continue to decline A dear friend has reminded me that we Association held their quarterly meeting at at a double-digit percentage rate, reported are facing so many headwinds, such as ultra the Bonaventure Resort in Weston, Florida CNBC. • With demand for vacation apartments high minimum wages, declining GP, cus- on May 22, 2018. Attending were franchise growing in Japan, c-store chain FamilyMart tomer counts, the labor situation, and many owners and designees from both the east has teamed with Airbnb to offer a check- government policies and mandates affecting coast of Florida (Miami, Ft. Lauderdale, West in service for users of the hospitality our bottom line. Also, another friend re- Palm Beach, etc) and franchisees at the west website, reported NHK. Airbnb guests are now minded me that the value of our goodwill is end of Alligator Alley, which includes Naples, able to pick up keys for holiday rentals from lock fading away. We have more and more compe- Ft. Myers, Cape Coral and the Charlotte boxes in FamilyMart stores in Tokyo and Osaka. • tition to contend with, which are customers county area. The association invited the A plastic bag—like the kind given away are drawn to. They have new or newly remod- Florida Zone Leader Jim Summers, whom at grocery stores—is now the deepest eled appealing facilities. They have what I call also attended. known piece of plastic trash, found at a high velocity merchandise with high gross Presentations from vendors covered sub- depth of 36,000 feet under the ocean inside the profit attached to them. Their stores are food- jects such as sales performance on key, top- Mariana Trench, reported National Geographic. • friendly, by which I mean they have areas to selling items in categories across the store A new study by United Way reveals that sit and eat in the store, as well as picnic tables assortment, as well as upcoming deals that an estimated 41 percent of New Jersey and covering outside the store. They have would be offered in the summer buying sea- households are considered among the made-to-order fresh food or food that the son. Many Florida stores historically face de- “working poor,” meaning they struggle to af- customer has access to (self-serve) rather than clining sales volumes during the 100 Days of ford basic necessities like food, healthcare, trans- having to wait on a sales associate who is most Summer as compared to the peak selling pe- portation and housing, reported NJ.com. • likely busy completing a customer’s transac- riod, which can cover February, March, April Amazon Prime Now is delivering beer tion. Also, their selection on Hot and Cold and into May. The traditional migration of and wine to South Florida doorsteps, re- beverages is a deal maker! “snowbirds” is attributed to this inverted sales ported the Sun-Sentinel. The service for Prime So, why am I a 7-Eleven franchisee? Be- pattern, which differs from other parts of the members offers hundreds of wine and beer cause I love what I do and I love brand 7- United States. Snowbirds are defined as the products for free two-hour delivery to South Eleven! Has it been easy and profitable in people who consider their first home to be lo- Broward and Miami-Dade addresses. • Target recent times? You don't need me to answer cated in places such as Ohio, Michigan, New has announced plans to open three that for you—you all have been in the Jersey, New York, Pennsylvania and many urban, smaller-format stores in the Seat- trenches and can answer that yourselves. I continued on page 68 tle area over the next two years, reported the Seattle Times. The new locations will be about the size of a standard supermarket and will also serve as locations to pick up orders. • California will soon become first U.S. state to mandate solar panels on most new homes, reported the Orange County Reg- ister. The California Energy Commission recently approved the new energy standards requiring most new homes to have solar panels starting in 2020. • Coca-Cola recently launched its

continued on page 70 Swisher International rep Ken Ramirez. San Diego FOA 1st Vice President Sukhminder Dhillon.

66 AVANTI MAY | JUNE 2018 Presidents’ Reports 2nd QUARTER 2018 other points North. When the snowbirds during a major storm event, many vendors chisees to focus on the basics—clean stores, leave their second homes based in Florida are not equipped with generators in order to well-stocked with items sought by our cus- (sometime just after Easter), retailers may see keep their supply operations powered. tomers, and friendly employees. their sales negatively impacted by as much as The Florida Zone Leader, Jim Summers, Franchisees heard a report from Eric 25 percent or more. spoke on the advancements that are being Donihoo, who had attended the National Also covered in the quarterly meeting made in the 7-Eleven business system. In- Coalition meeting in Puerto Rico. There was was information relevant to the upcoming cluded in the subject matter, he described also a presentation from Terry Hutchison that hurricane season for Florida. Each vendor in how the 7Rewards program will provide him covered key statistics related to growth and attendance discussed the challenges they the ability to surgically target creative offers business conditions in Florida. With over 900 faced in keeping 7-Eleven stores supplied with to guests during specific day parts. An exam- people per day moving into Florida, the future product. Ice, water, propane and many other ple given was the offer of a free cup of coffee looks very promising. products sold out quickly, with resupply a to every 7Rewards participant from a given Hutchison also covered the E-Verify pro- major obstacle to maximizing sales opportu- area to our stores for a specific time period. gram, which is strongly recommended for nities. Vendors often simply couldn't locate Very powerful marketing messages that properly screening all new employees. Use of the employees necessary to deliver the prod- could effectively render the traditional this program is a clear sign to government en- ucts, if those items were available. To compli- radio/billboard/pole sign model as much less tities such as ICE and the Department of cate matters, when electricity is interrupted effective. Jim encouraged attending fran- Homeland Security, that the employer is properly screening new hires. The association “Large companies are poaching our employees. will have representatives from the ICE Image Program in our future meeting. Participants If you pay $11, they pay $15 with beneﬁts.” in the Image Program can be exempt from I- 9 audits for two years or more. Register Online NOW for the NCASEF Convention & Trade Show

continued from page 54 www.ncasef.com

SPECIAL NACS continued from page 66 first alcoholic drink— Membership Offer a lemon flavored al- FOR NCASEF MEMBERS copop—in Japan in a bid to tap new markets and consumers, reported BBC News. Described by The National Association of Convenience Coca-Cola as “unique” in the company’s 125-year Stores (NACS), in partnership with the National history, the three drinks range from 3 percent to 8 Coalition of Associations of 7-Eleven Franchisees, percent alcohol. • Meal delivery service Door- for the third year in a row is offering a special Dash has launched a partnership with membership to NCASEF members at the re- Walmart to deliver groceries to customers’ duced price of $40—an 80 percent discount off of the starting membership rate of $200. The doors, reported Bloomberg. The test is an impor- NCASEF NACS Membership Program offers indus- tant step in DoorDash’s plan to branch out beyond try-specific programs and services, as well as tra- meal delivery, which is “really a small sliver of ditional association benefits to help you compete what we’re working on,” the company said. • and succeed. The benefits of the special NCASEF • One copy of NACS Magazine (monthly Domino’s pizza chain plans to partner NACS Membership Program include: publication). with American towns and cities to fix their • Discounts to all NACS events. • NACS Daily News e-newsletter. potholes, ostensibly to provide a smoother ride • Discounts on all NACS training, educational, • Congressional and federal agency representa- home for takeaway pizzas, reported Fortune. So and operational products. tion through the NACS Government Relations far the company has partnered with four towns. team. • Access to NACS Help Desk, an information re- The paved-over potholes are emblazoned with source that provides answers to retailer mem- NACS membership is available to any Domino’s logo and the company’s catchphrase, ber questions and facilitates greater industry NCASEF member who operates a total of four (4) “Oh yes we did.” • Saltwater Brewery, a craft connections. or less stores and is not a current member of NACS in 2018. microbrewery in Florida, has developed • Full voting rights as a NACS Domestic Retail six-pack rings that can either biodegrade member. NCASEF members who joined NACS previously or serve as a snack for wildlife, reported The • Potential for consideration as NACS Board at the $40 rate can renew based on the instruc- or Committee Member. tions they have received via e-mail and by mail. Times-Picayune. After years of research and devel- opment, the rings—made of wheat and To Join: Email [email protected] and ask for the NACS barley—are now popping up in South Florida Membership Application, which can be returned by email, fax or U.S. Mail. stores. • Wawa has jumped to number one on the list of America’s favorite fast food If you have questions about NACS membership for NCASEF members, please contact VP Member Services Michael Davis, at [email protected] or NACS Retail sandwich spots, according to a new survey by Membership Manager, Eboni Russell, at [email protected] or (703) 518-4271. Market Force Information. • Authorities in Venezuela seized a plant owned by Ameri- can cereal manufacturer Kellogg after the company announced it was pulling out of the country because of the worsening economic situation, reported BBC News. President Nicolas Maduro said the factory had been handed to workers and would continue production. • Subway plans to close roughly 500 locations across the U.S. as it expands its sandwich brand globally, reported CNBC. In turn, Subway expects to add more than 1,000 locations worldwide, including in Mexico, the United Kingdom, China and India. • The Seattle City continued on page 72

70 AVANTI MAY | JUNE 2018 Register Online NOW for the NCASEF Convention & Trade Show

continued from page 20 www.ncasef.com

volume boost of “Amazon’s Whole Foods loyalty continued from page 70 1.4 percent. e program for Amazon Prime study measures the Council recently customers includes 10 percent non-alcoholic passed a new tax on off on hundreds of sale items.” ready-to-drink big businesses to help address the city’s beverage category growing homelessness problem, reported Whole Foods stores for members of and breaks down retail value growth as the Washington Post. The measure imposes an annual tax of $275 on each employee at busi- Prime, its subscription club with fast carbonated so drinks (+1.3 percent); nesses making at least $20 million a year in rev- shipping and video streaming. e new water (+3.8 percent); RTD teas (+1.5 per- enue. • Real-estate services company NRC Realty loyalty strategy will test whether Ama- cent); and RTD coffees (+11.7 percent). & Capital Advisors LLC recently formed a new zon’s $13.7 billion deal for Whole Foods Only two categories—juice/juice drinks (- business unit to serve smaller clients, reported brings much-feared disruption and an 0.9 percent) and sports drinks (-1.8 per- CSP Daily News. The unit—NRC Small Busi- intensified price war to the $800 billion cent)—posted value declines. ness Solutions—will provide real estate U.S. grocery industry dominated by Wal- brokerage and financial advisory services mart Inc and Kroger Co. to single-site and small chain c-store op- McLane A Finalist erators and fuel marketers across the country. • McLane Company, Inc. was selected In a push to set itself apart from rivals, Pizza Hut Beverage Sales Grow as one of five finalists for Partnership for recently expanded its beer delivery test to A new study by Beverage Digest re- a Healthier America’s (PHA) 2018 Partner nearly 100 restaurants in Arizona and Cali- veals that Americans spent nearly $2 bil- of the Year Award. PHA recognized the fornia, reported Reuters. More than 1,700 of lion more on non-alcoholic beverages last Partner of the Year Award finalists at their Pizza Hut’s roughly 6,300 U.S. units have liquor li- year, reported NACS Online. Carbonated Innovating a Healthier Future Summit on censes, giving the chain a potential lead over so drinks, energy drinks and bottled May 2-4, 2018 in Washington, DC. e some competitors. • McDonald’s shareholders water added $1 billion in retail value to winner will be announced at the 2018 Fit were recently asked to consider a proposal the industry’s overall $135.7 billion in to Celebrate Gala on September 27, 2018, that the chain find alternatives to plastic sales—up $2.1 billion in retail value, a also taking place in Washington, DC. straws at its more than 36,000 restaurants value increase of 1.6 percent alongside a PHA’s Partner of the Year Award worldwide, reported USA Today. • Starbucks’s nominees are evaluated on the reach, in- mobile payments system, which is found novation and positive impact of their in the coffee chain’s app, has more users Using Tax Savings work in populations disproportionately than Apple Pay, Google Pay and Samsung impacted by childhood obesity. e nom- Pay, reported Recode.com. • Loblaw, one of To Keep Workers inees support PHA’s mission to ensure Canada’s biggest supermarket operators, plans to Retailers are discovering that that children and families have the oppor- sell recreational marijuana products pending le- finding and retaining store-level tunity to live healthier lives wherever they galization late this summer, reported Marijuana workers has become more difficult, are. McLane Company partnered with Business Daily. • In order to make navigation even in a strong economy with rela- PHA on May 16, 2016 and became the easier, Google is reportedly testing a new tively low unemployment, reported first grocery and foodservice supply chain feature in Maps that will use land- Drug Store News. Given the tighten- distributor to do so. marks—including restaurants—as ing labor market, many retailers said points of reference to give directions to a they have been reinvesting their tax driver, reported Engadget. So instead of saying savings from the Tax Cuts and Jobs- SEJ Offering Food “turn right at Main Street,” Google Maps will say Act—which reduced the federal cor- “turn right after Burger King.” • Coinstar an- porate tax rate from 35 percent to 21 Home Delivery nounced that customers can now add cash percent—to increase their starting Seven-Eleven Japan recently launched to their Amazon Balance by using Amazon wages and other benefits to attract smartphone ordering for delivery, reported Cash at select Coinstar kiosks across the country. and retain workers. Nikkei Asian Review. e move marks a continued on page 80 continued on page 74

72 AVANTI MAY | JUNE 2018 Register Online NOW for the NCASEF Convention & Trade Show

continued from page 72 www.ncasef.com first for the convenience store sector “Seven-Eleven Japan is looking to cluding Japanese convenience store staples in Japan, with Seven-Eleven looking capitalize on food home delivery such as rice balls and bento lunch boxes. to capitalize on food home delivery demand as online rivals such as demand as online rivals such as Amazon Japan make inroads into Amazon Japan make inroads.” Supporting Social Causes the highly competitive field. e new Can Boost Revenue service, “Net Konbini”—using the com- Hokkaido, in northern Japan. It plans to Small business owners who get more monly shortened form of “convenience expand the network to 1,000 stores in involved in social issues are seeing a rise store” in Japanese—plans to reach 7- Hokkaido by August 2019. e service al- in revenue because of their activism, re- Eleven's entire Japanese network of lows users to place orders 24 hours a day, ported the Washington Post. A survey of around 20,000 stores, following a so selecting a delivery address and store to more than 1,100 consumers conducted launch in October 2017 at 25 stores in choose from 2,800 available products, in- continued on page 80 Legislative Update continued from page 24 the growing use of e-cigs by un- employers should be required to derage teenagers, reported CSP Daily News. While the opera- offer paid sick time, reported the Dallas Morning News. Under tion officially began April 6, the agency said it has issued the proposal, employers with 15 or fewer employees would warning letters to 40 retail locations since March of this year. have to give their workers at least six paid sick days a year. Most of those were c-stores, including five 7-Elevens, four Larger companies would have to provide eight days. e days Circle K sites, three Cumberland Farms locations and one can roll over, but employers would have the ability to cap the Sheetz store. available time to six or eight days. Employees would accrue one e FDA has revealed a four-stage enforcement and in- hour of paid sick time for every 30 hours of work. quiry effort to better understand the issue and crack down on Aer the signatures have been verified and the petition has the illegal sale of e-cigs to minors, which include: been deemed valid, the City Secretary has 20 days to put two • Conducting a nation- agenda items before the City Council. e council could simply “THE NYC HEALTH DEPARTMENT wide undercover “blitz” approve the ordinance as it's written without changes or opt to CLAIMS THE NUMBER OF YOUNG to crack down on the call for the election. According to the article, the activist groups SMOKERS DECLINED BY ABOUT 70 sale of e-cigarettes— are sure to face some opposition because the law would mean specifically Juul- an additional cost for some employers. PERCENT BETWEEN 2001 AND 2017.” branded products from San Francisco-based Calorie Rule Kicks In Juul Labs—to minors at both brick-and-mortar and online re- Calorie counts now have to be posted at thousands of tailers. restaurants, grocery stores and movie theaters, representing a • Contacting San Jose, Calif.-based eBay to raise concerns over milestone change in how the food industry shares information several listings for Juul products on its website. with the American public, reported Politico. e rule, an o- • Contacting manufacturers directly and will hold them ac- forgotten provision of Obamacare, was pushed over the finish countable. line by a Trump nominee, FDA Commissioner Scott Gottlieb, • Taking additional enforcement actions focused on companies who said the labeling requirement is simply about trans- that the FDA thinks are marketing products in ways that are parency. e menu labeling rule means that everything from misleading to underage consumers. the jumbo buttery popcorn at the movies to the taquitos sold at 7-Eleven and Starbucks‘ mocha grandes will have to show Paid Sick Time Moves Closer calorie counts right on the menu. Many restaurant chains sup- To Dallas Ballot port and are already complying with the new rule, including A coalition of activists said they have more than double the Dunkin' Donuts, Starbucks, Panera and McDonald's. signatures needed to let Dallas voters decide whether private continued on page 76

74 AVANTI MAY | JUNE 2018 Register Online NOW for the NCASEF Convention & Trade Show

continued from page 74 www.ncasef.com

San Diego FOA Golf Tournament Raises Funds For Two Charities On May 24, the San Diego FOA held and celebrated its 25th Annual Charity Golf Tournament at the River Walk Golf Club in San Diego. The event raised money for two worthy charities: the Warrior Foundation Free- dom Station and Swim Across America. The golf tournament was well attended by franchisees and vendor partners, and San Diego franchisees were joined by their colleagues from the Southern Califor- nia FOA and FOA of Greater Los Angeles, as well as NCASEF officers.

Legislative Update

continued from page 74 companies, convenience stores and other business groups at “CALORIE various points have tried to get out of being covered, arguing it COUNTS NOW e menu labeling rule, which was finalized in 2014 aer repeated delays during the would be costly and burdensome to comply. Retailers and HAVE TO BE Obama administration, applies to chains pizza companies are no longer outright opposed to the rule, POSTED AT with 20 or more locations that sell prepared but many want to see the regulation relaxed. THOUSANDS OF foods similar to what you might get in a NJ Town Ends Plastic Bag Use RESTAURANTS, restaurant — a definition that applies to GROCERY everything from appetizers to beer and wine Aer a six-month grace period, a plastic bag ban went listed by the glass. Businesses are supposed into eﬀect on May 1 in Long Beach Township, New Jersey, re- STORES AND to post calories for each food on their menu ported NBC-10. Plastic bags are no longer allowed at town- MOVIE right where a consumer will see it as they ship businesses, except for a couple exceptions: fishing bait at THEATERS.” decide what to order. e rule has been de- tackle shops and marinas, and raw meat at groceries. Long layed repeatedly over the years, as pizza continued on page 78

76 AVANTI MAY | JUNE 2018 Register Online NOW for the NCASEF Convention & Trade Show

continued from page 76 www.ncasef.com

Legislative Update

Beach’s mayor said the six- statewide ban of plastic bags in month lead-up was in part to allow stores in the township like 2016. Hawaii has a de facto ban on plastic bags; all of its coun- Wawas and the Acme supermarket to use whatever plastic ties have instituted bans. However, the measure faces an uncer- bags they had le in stock. To help with the adjustment, about tain path in the Legislature, where leaders of the Assembly and 20,000 reusable canvas bags were handed out to households in the Senate had opposed the New York City’s bill. Long Beach Township, which makes up roughly 11 miles of the 12-mile-long island in Ocean County. e mayor said the NYC Considers Plastic Straw Ban reusable bags cost the township less than a dollar a piece. A New York City councilman recently introduced a bill that would ban disposable plastic straws in all venues across NY Governor Could Ban Plastic Bags the city, from stadiums to street vendors, reported New York Gov. Andrew M. Cuomo recently introduced a bill Gothamist.com. Several American cities have already banned to outlaw single-use plastic bags in the state by next year, reported plastic straws, including Malibu, Seattle, and Miami Beach, the New York Times. e three-page bill comes a little more than a and the idea has gained popularity internationally. e year aer he blocked a 5-cent surcharge that New York Wildlife Conservation City had sought to place on single-use plastic bags. “New York could join California Society is supporting the Under the governor’s proposal, a variety of bags would and Hawaii as the third state bill, and has created be exempted from the ban, including those that to approve a statewide ban their own campaign contain raw meat, fish or poultry, and takeout Give A Sip, to highlight food bags. In a statement accompanying the of plastic bags.” the environmental dam- announcement, Gov. Cuomo described the age of disposable straws. measure as an eﬀort to counteract the If New York passes the law, it could be the largest city “blight of plastic bags” that is taking “a dev- in the world to ban plastic straws, the article states. It's astating toll on our streets, our water and unclear how much support the bill will have in the City our natural resources.” Council, but the measure’s sponsor is optimistic it will If the bill were to pass, New York fare better than attempts to ban single use plastic bags in would join California, which approved a New York.

Want to talk to other franchisees? To find the FOA closest to you. Visit www.NCASEF.com to contact any one of the 43 local Franchise Owner’s Associations nationwide. Want to talk to someone at the national level? Call the NCASEF Vice Chairman in your area: Nick Bhullar, Vice Chairman, Rehan Hashmi, Vice Chairman, Vice President, The National Coalition Board Member, So. California FOA Alliance Of 7-Eleven Franchisees [email protected] [email protected] has Franchise Owner’s 818.571.1711 847-845-8477 Association member Romy Singh, Vice Chairman, National Office organizations in all 33 states President, Eastern Virginia, FOA [email protected] 757-506-5926 in which 7-Eleven operates. [email protected]

78 AVANTI MAY | JUNE 2018 Register Online NOW for the NCASEF Convention & Trade Show

continued from page 74 www.ncasef.com by Cox Business found that 71 percent of the respondents would spend more continued from page 72 money at a small business if it supported • Chile recently be- a social cause—as long as it’s positive or came the first country environmental. According to an analyst, in the Americas to ban plastic bags from a socially active company can reap many stores across the country in an effort to re- benefits besides increasing revenue. duce unnecessary waste, reported Telesur.net • Companies that participate in certain Amazon.com recently started a new pro- causes are able to recruit better talent, in- gram to deliver packages to its members’ next two years. Target's program is in crease employee morale, improve their parked cars, reported Reuters. The online re- conjunction with partners Tesla, Charge- brand and attract more capital. tailer is rolling the program out in 37 U.S. cities Point, and Electrify America (a sub- ere are many ways to support a for customers with newer compatible vehicles sidiary of Volkswagen). Meanwhile, cause, including offering employees a and plans to expand the service. • Walmart re- Walmart said it plans to more than dou- chance to do pro-bono or volunteer cently announced a new associate educa- ble the number of electric vehicle charg- work, matching employee gis to the tion program that will allow ing stations at its stores by adding several cause, hosting events, or running holiday employees— part-time, full-time, and hundreds charging stalls, with an aim of or special fundraising campaigns. A 2017 salaried—to get an online college degree having more than 1,000 of them in the survey from Allstate Insurance Company in either business or supply chain management coming years. Electrify America is also and USA Today found that almost half of for just $1 a day. The company said it would one of Walmart's partners. the business owners asked said they con- cover tuition, fees and books, and the degrees will be offered through the University of Florida, tribute to local charities or perform com- Brandman University and Bellevue University. • munity service close to home. NYPD Tests Anti- McDonald's will replace plastic straws Skimming Device with paper straws in all its UK and Ire- land restaurants beginning in September, re- e New York Police Department is Big Box Retailers Roll ported BBC News.This decision follows a testing a new gadget that officials hope Out Charging Stations successful trial in selected restaurants earlier this will turn the tide in the war against credit Target and Walmart plan to add hun- year. It is the latest company to opt out of some card skimmers, reported the New York dreds of electric vehicle charging stations single-use plastic products, which can take hun- Post. Cops have been trying out the to their stores, reported the Star Tribune. dreds of years to decompose if not recycled. • “Skim Reaper” around the city since Feb- Target, which started piloting charging Starbucks plans to close 150 poorly per- ruary, and believe that the $50 device stations in 2012, currently has them at 18 forming company-operated stores next could help spell the end of a crime that, locations in five states (Minnesota, Cali- year, about three times as many as it typi- according to the Secret Service, rakes in fornia, Hawaii, North Carolina and cally closes, reported CNN Money. The affected more than a billion dollars each year na- Texas), including at its headquarters in stores are located in mostly urban areas that are tionwide. Users insert the Skim Reaper, downtown Minneapolis and Brooklyn densely populated with Starbucks locations. • Dol- comparable in size to a long credit card, Park. It said it will add them to 100 loca- lar General is the first dollar-store chain to into a card reader, and a display screen tions, amounting to 600-plus parking move into mobile checkout with a new reads “Possible Skimmer!” whenever one spaces, in more than 20 states over the app,reported Progressive Grocer.DG Go is a of the nefarious devices is detected. One shopping app that lets users scan and pay of the most attractive features for products they select directly from their “Target will add electric vehicle of the Skim Reaper is the sim- phone, allowing them to skip the checkout plicity, allowing even cops line altogether. It's available for both Android charging stations to 100 who don’t normally investi- and iOS devices. 7-Eleven Canada and Vancouver locations in more than 20 gate financial crimes to help Bike Share announced an agreement that recog- track down skimmers. nizes 7-Eleven Canada as a Community Sponsor of states over the next two years.” Vancouver’s public bike share system. continued on page 82

80 AVANTI MAY | JUNE 2018 Register Online NOW for the NCASEF Convention & Trade Show

continued from page 80 www.ncasef.com continued from page 82

Did We Burn The Bridge? Bottled water sales now total $18.5 billion, • Imported water increased 9.2 percent. 2018, the highest sale price since BizBuy- By Nisar Siddiqui, Midwest FOA Vice President an increase of 8.8 percent. Per capita con- • Home and office delivery (3 and 5-gallon Sell started tracking the data in 2007 and sumption exceeds 42 gallons of bottled size bottles) increased 1.3 percent. a 3.4 percent increase from a year ago. The saying “Don’t burn bridges” comes butter, and our hard-earned “THE VISION FOR water, a 6.2 percent increase. Meanwhile, e median asking price of sold busi- from the idea that if we use a bridge to cross investment to provide a decent FRANCHISEES IN- the average annual intake of carbonated nesses also hit a record high at $262,000, a river and then burn it, we can’t get back over the river if living for our families. so drinks has slipped to 37.5 gallons, Small Business Sale Prices a 4.8 percent increase from 2017. we need to do so in the future. VOLVES A STRONGER In this day in age of new compe- BMC statistics show. Beverage Marketing Reach Record Highs According to the report, the median Recently, we all were feeling overwhelmed, under- tition—for example, Amazon home FINANCIAL BASE IN predicts bottled water will climb higher asking price for existing franchises for appreciated and we were almost about to burn the bridge delivery and it’s unmanned Ama- BizBuySell.com reported continued OUR STORES AND than 50 gallons per capita within just a few sale in the United States on BizBuySell with our partner. After taking a deep breath, putting our zon Go convenience store—we are WORKING IN AN EN- strong business-for-sale activity in the thoughts together, we were able to collaborate a plan of surrounded by a growing number more years. Within the bottled water cat- first quarter of 2018, with record-break- was $225,000. ese businesses had a action with a clear conscience between the two parties of retailers looking to take business VIRONMENT WHERE egory, all segments grew in 2017: ing sales prices and transactions high- median revenue of $489,780 and a me- (National Coalition and SEI). away from us. Our business is not THERE IS OPEN • Domestic non-sparkling increased 5.5 lighting a positive start to the new year. dian cash flow of $93,104. Owners asked what it used to be, as it is con- I believe that not only the National Coalition, but all fran- COMMUNICATION percent. Small businesses sold for a median sale for, on average, a revenue multiple of 0.59 stantly evolving and we must as chisees across the nation want a healthy relationship with BETWEEN BOTH • Domestic sparkling increased 27.5 percent. price of $245,000 in the first quarter of and a cash flow multiple of 2.91. SEI so we can work as a team towards the common goal of business owners change, too. With success. The vision for franchisees involves a stronger finan- lower customer counts due to peo- PARTIES.” cial base in our stores and working in an environment where ple ordering online, minimum wage there is open communication between both parties. Above increases, profit margin decreases, and other factors SUCCESSFUL GOLF TOURNAMENT & TRADE SHOW all, we would like SEI to understand and appreciate that our affecting our bottom lines, we need a better understanding FOR EASTERN VIRGINIA FOA on how all these effects are transpired to the franchisee. stores are our bread and Members of the Eastern Virginia FOA recently held two spectacular events that unified local fran- When both parties create an open “ALL FRANCHISEES chisees and their vendor supporters. The group’s Golf Tournament was held on June 6 at the Sleepy environment of communica- Hole Golf Course in Suffolk, Virginia. It was well-attended by franchisees, who played alongside 42 ACROSS THE NATION tion, it will only lead to vendor partners. WANT A HEALTHY greater work satisfaction, RELATIONSHIP WITH reduced stress, and create The EVFOA Trade Show was held SEI SO WE CAN WORK loyalty and mutual on June 7 at the Hilton Conference respect throughout our Center in Suffolk. Franchisees repre- AS A TEAM TOWARDS system. I urge both senting 161 stores roamed the trade THE COMMON GOAL parties to build the show floor, checking out the latest OF SUCCESS.” bridge and not to burn it. products and deals being offered by the exhibiting vendors. There were raffle giveaways throughout the event, and after- wards the participating vendors were recognized for their support. The EVFOA thanks all franchisees and vendors for making both events so immensely successful, as well as disability; auto, homeowners and renters; ministrative officer and executive vice tinguished guests Suburban Washington FOA President and pet insurance. president. Arvinder Makkar and FOAC President Ken Patel. Hy-Vee Benefits Program “Our people are the key to our suc- For Part-Timers cess. We developed the new part-time Supermarket chain Hy-Vee recently employee benefits program with the Bottled Water, America’s announced a new part-time employee goal of giving Hy-Vee a competitive ad- Favorite Drink benefits program it calls the first of its vantage in the recruiting and retention Bottled water is the No. 1 beverage kind in the retail industry. e program efforts of our part-time employees,” product in the U.S. by volume for a second offers 11 elective benefit options to more said Sheila Laing, Hy-Vee’s chief ad- year in a row, the International Bottled than 58,000 part-time employees, which Water Association (IBWA) and the Bever- also cover spouses and dependents. “Supermarket company age Marketing Corporation (BMC) an- Elective benefit options include: health; Hy-Vee is offering benefits nounced recently. Bottled water volume dental; short-term disability; vision; grew to 13.7 billion gallons in 2017, a 7 group life; accident; critical illness; hos- to part-time employees as percent increase over the previous year. pital indemnity; individual life and dis- part of a retention effort.” continued on page 83

82 AVANTI MAY | JUNE 2018 AVANTI MAY | JUNE 2018 83 Register Online NOW for the NCASEF Convention & Trade Show www.ncasef.com

FIRST SELF-CHILLING 7-ELEVEN PREMIUM CANNED BEVERAGE VINTAGE WINE SEI announced that it is currently JOE DEPINTO HONORED SEI recently unveiled its newest wine, testing its proprietary Fizzics Sparkling BY JUVENILE DIABETES Voyager Point, which it said lets wine- Cold Brew Coffee, which comes in the FOUNDATION lovers trade up in quality at an affordable first self-chilling cans available to the The Greater Dallas Chapter of the Ju- price. Voyager Point varietals include public in the U.S. Created by The Joseph venile Diabetes Research Foundation Cabernet Sauvignon and Red Blend Company International Inc., the Chill- (JDRF) honored SEI President and CEO from California and Sauvignon Blanc Can technology filled with the Fizzics Joe DePinto at its annual Dream Gala on from the Marlborough region of New coffee drink is being tested at 15 Los An- April 28 at the Omni Dallas Hotel, re- Zealand. Suggested retail price for a 750 geles-area 7-Eleven stores. ported the Dallas Morning News. JDRF ml bottle is $9.99. The Sauvignon Blanc The Chill-Can containers are pur- officials said 7-Eleven has helped raise can be chilled, while the Cabernet and chased at ambient temperature and over $4 million for the organization over Red Blend are held ambient on store chilled when ready to consume. When the last six years, and the company's vice shelves. The Voyager Point wine bottles activated, the patented technology uti- president of procurement, David Strauss, come with an easy-to-open Stelvin clo- lizes reclaimed CO2 and the process au- serves on the local JDRF board. sure—a type of screw top tomatically chills the can and the that preserves fresh- “SEI said ness—and the bot- sparkling coffee beverage inside. The SEI TRANSFORMS Vintage Point was self-chilling can has been recognized by tle label was SUPPLY CHAIN benchmarked designed to ap- the Environmental Protection Agency SEI has successfully de- against the top- peal to millennial (EPA), NASA and the U.S. Army. ployed a range of JDA Soft- selling premium wine-drinkers The company said the Fizzics ware, Inc. solutions in the JDA wines in each In a released Sparkling Cold Brew Coffee drinks are Cloud—including JDA De- varietal.” statement, SEI said available in three flavors—Regular, mand, JDA Fulfillment and JDA the wines were bench- French Vanilla and Caramel. Made with Order Optimization—to manage in- marked against the 100 percent Arabica beans and all natu- ventory and streamline supply chain top-selling pre- ral flavors, each 8.4-ounce can of the processes. SEI said it chose JDA to mium wines in fizzy brew contains only 50 calories, 10 gain deeper visibility into its inven- each varietal and grams of sugar and less than 80 mg. of tory to reduce high levels of out-of- in testing, cus- caffeine. stocks and decrease expiries, while tomers preferred maintaining its expected 99 percent Voyager Point “ Fizzics Sparkling service levels. With JDA, SEI will fill over the higher- each store’s perishable orders effi- Cold Brew Coffee priced national ciently, while planning for each utilizes reclaimed brands. Priced store’s demand in multiple quantities and CO2 to automati- between $9 and $12, the premium wines load types across multiple distribution cally chill the category is the top trending price seg- centers. The deployment’s concise de- can and the ment in the industry, with red wines mand plan and more accurate inventory sparkling coffee specifically growing in popularity. IRI ordering also enables SEI to be more beverage inside.” data through April has Cabernet and proactive with its suppliers about reduc- ing costs across the supply chain. continued on page 86

AVANTI MAY | JUNE 2018 85 Register Online NOW for the NCASEF Convention & Trade Show

continued from page 85 www.ncasef.com continued from previous page

Red Blend varietals up 6 and 9 percent, is made without heat, cold brew creates brew is especially popular with younger download and open the Postmates app respectively, in dollar sales growth over a lower acidity level in the beverage for coffee-drinkers: over 50 percent of mil- on either iOS or Android to score the prior years. a smoother, naturally sweet taste. While lennials today say they like or love the Eleven stores over Memorial Day Week- deal. Pints were available in vanilla, own version of the popular chilled drink. 7-Eleven’s Cold Brew Iced Coffee is cold brew iced coffee. Not surprisingly, end. The promotion started on May 25 chocolate, coffee and strawberry in HOT NEWS ON COLD BREW The company’s new proprietary Cold smoother and sweeter than fresh-brewed cold brew iced coffee is especially popu- at 1:00 p.m. local and ended on May 27 Brooklyn/Queens, Los Angeles, Long Cold-brewed coffee is Brew Iced Coffee is slow steeped and hot and iced coffees, some customers lar in the months when hot coffee sales at 11:59 p.m. Customers simply had to Beach, Manhattan, Miami, New York a hot commodity among chilled for peak smoothness and flavor. may still choose to customize their bev- slow—summer. City, Orange County, Phoenix, Portland, millennial and Gen Z Cold brew is the process of brewing a erages with their choice of creamers, Sacramento, San Bernardino, San Diego, coffee-drinkers, and 7- beverage using room temperature or sweeteners, toppings and syrups. FREE ICE CREAM San Francisco, Seattle, and Washington Eleven is introducing its cold water. The process takes anywhere A 2017 study showed that cold-brew VIA POSTMATES DC. A Postmates delivery fee of $1.99 from 12-24 hours coffee is one of the fastest-growing bev- SEI teamed up with on-demand de- applied. “To kick off summer, we “A 2017 study showed that cold-brew to reach the opti- erage categories in food service. In 2017, livery service Postmates and Nestle to thought bringing pint-sized convenience coffee is one of the fastest-growing mal brew sales of cold brew coffee were up 80 per- offer free pints of Häagen-Dazs ice to our customers with free Häagen-Dazs beverage categories in food service.” strength. Since it cent over the previous year. The new cream to customers near participating 7- continued on page 88 continued next page Visit the NCASEF Website

continued from page 87 www.ncasef.com

ice cream was a delicious idea,” said 7- Eleven Chief Digital Officer and Chief Information Officer Gurmeet Singh. MAKE CHILD SUPPORT ‘OPERATION CHILL’ PAYMENTS AT 7-ELEVEN KICKS OFF Washington residents can now pay SEI recently activated its popular child support using cash at 7-Eleven Operation Chill program to help local stores, reported The Spokesman-Review. police officers meet kids where they are The state’s Department of Social and only available at participating 7-Eleven and have positive interactions with Health Services recently announced it’s stores in Oregon and Washington state. them. For the 23rd year, 7-Eleven is partnering with PayNearMe, a national Flavors vary by region. At participat- working with police and sheriff's de- vendor, to enable cash payments of child ing stores in the Pacific Northwest and partments to distribute the coupons to support at 7-Eleven, among other retail- northern California, the exclusive fea- deserving children and youth. During ers. There is a $1.99 fee per payment for tured Big Gulp flavor by Jones is 7-Select 2018, 7-Eleven will issue 1.4 million using the service. The article states peo- Blueberry Lemonade. In the Pacific Slurpee coupons to approximately 1,100 ple need to create an account online with Northwest region, Jones Blue Bubblegum law enforcement agencies. Most will be PayNearMe to use the system. flavor will be available on the Slurpee distributed during the summer months machine. In Canada, Jones fans can enjoy and back-to-school season. KEEPING UP WITH the signature Jones Berry Lemonade fla- Big city police departments and small JONES SODA vor on the Big Gulp fountain at partici- town forces alike use the Slurpee 7-Eleven and Jones Soda Co. are ex- pating 7-Eleven stores. 7-Eleven and coupons to enhance relationships with panding the number of stores carrying Jones Soda will also release new limited young people by rewarding them for regional Big Gulp flavors created by the time 7-Select flavors throughout 2018. good deeds, constructive activities and premium soda company. Customers at acts of kindness. Appropriate “offenses” more than 1,000 7-Eleven stores in SURCHARGE-FREE might include helping another person, northern California and Canada now following safety and traffic laws, or par- will be able to enjoy exclusive Jones fla- ATMS INSTALLED ticipating in a community- or police- vors on the Big Gulp fountain. Previ- SEI recently completed the installa- sponsored event. ously, these proprietary beverages were tion of surcharge-free ATMs at 7,934 stores throughout the United States. “For the 23rd FCTI, Inc. was awarded exclusive ATM year, 7-Eleven installation and operations for 7-Eleven is working with stores in the U.S., and implementation police and kicked off in August 2017. Over the next sheriff's depart- six months, FCTI associates and partners ments to distrib- organized to place new, updated equip- ute the coupons ment and software throughout the port- to deserving folio. Final installation and on-boarding children and was confirmed the second week of youth.” March 2018. continued on page 90

88 AVANTI MAY | JUNE 2018 $name game winner Bassam Yamak, Fontana, CA$ Register Online NOW for the NCASEF Convention & Trade Show

continued from page 88 www.ncasef.com

FCTI’s turnkey MBA ATMs provide a host of benefits for store customers, including advanced security utilizing a variety of tools such as hard kindergarten through second graders, as disk encryption in conjunction with ac- well as 42,500 adult coloring pages with cess/intrusion protection and other se- a coffee coupon for school officials, in 88 curity measures. The systems also offer participating markets. Students were also marketing and advertising opportunities invited to share their masterpieces with for 7-Eleven to promote foot traffic and 7-Eleven store associates for public dis- in-store sales. play and enjoyment. bile app. Exclusive Deadpool-branded items from collectible Slurpee cups and COLORING OUTSIDE (ANTI) SUPER HERO straws to chimichangas, Monster Mutant THE LINES LANDING AT 7-ELEVEN bottled energy drinks, Mike’s Harder Not afraid to color outside the lines, STORES Watermelon Lemonade and Trolli Sour SEI representatives recently delivered To celebrate the new movie Dead- Brite Tiny Hands candy could be found more than 200,000 coloring pages to ele- pool 2 in May, SEI launched exclusive at participating stores. mentary schools nationwide. To kick off Deadpool themed products, sweepstakes By scanning the 7-Eleven app at summer, each child’s coloring sheet promotions, and its first ever aug- checkout, customers were able to earn included a coupon for a free mented reality (AR) in-store 7Rewards loyalty program points and Slurpee at their neighbor- “SEI experience that literally enter a contest for a chance to win prizes hood 7-Eleven. representatives brought Deadpool into such as movie tickets, a trip to Las Vegas Approximately recently delivered the store, exciting fans and more. But the biggest news was the 1,700 representatives more than 200,000 with new surprise activ- in-store AR that invited Deadpool fans from 7-Eleven person- coloring pages to ities each week. All AR to engage in fun virtual activities (new ally delivered 170,000 elementary schools activities were accessed ones each week) to earn 7Rewards bonus coloring sheets to nationwide.” through the 7-Eleven mo- points.

Yowie Surprise Rescue Series includes one of 26 collectible endan- Advertiser’sgered species animals. Index Altria/AGDC...... 100 Cookies United...... 40 Kretek...... 43, cover 4 Nestle Professional...... 65 Swedish Match...... 3,73 American Licorice...... 75 Dean Foods ...... 29 Living Essentials...... 71 Old World Industries ...... 68 Swisher International ...4,81 Anheuser Busch...... 10 Diageo Guinness USA...... 5 Logic Ecig...... 52-53 Pepsi Quaker...... 34,38,46 Think Thin...... 57 Aon Risk Services ...... 24 Dr Pepper Snapple Group 17 Mars Ice Cream...... 21 Perfetti Van Mele ...... 32 Uptime...... 92 BIC...... 84 Foreign Candy...... 39 Maruchan...... 23 PWM ...... 87 Vixxo...... 86 Blu Ecigs...... 77 Fiji/Wonderful...... 63 McLane...... 35 Reynolds American...... 69 White Castle...... 89 Blue Bunny/Wells ...... 27 Good2Grow...... 46 Miller...... cover 3 Seneca...... 30-31 Whitewave Foods ...... 15 Bug Juice...... 44 Heritage Parts...... 91 Mondelez...... 19 Shamrock...... 64 Yowie...... 67 Buy4Store...... 99 Hormel...... 55 Morinaga...... 36 Simply Orange...... 12-13 Chobani...... 61 JUUL...... 6-7 National Tobacco...... 97 Smoky Mtn Acosta...... 79 Coca-Cola...... cover 2 Kellogg's...... 8-9 Nestle DiGiorno...... 49 Spectrum ...... 95

90 AVANTI MAY | JUNE 2018 Good2Grow Fortified Retail Price of $1.99 and generates a profit of $1.01, for a Margin of 50.8 percent. Order both flavors for your stores! Waters For Kids • Simply Light Orange with Calcium & Vitamin D is made with Good2Grow is debuting a new line of For- pure squeezed gently pasteurized orange juice and other simple ingredi- tified Water products available now. ents, with 50 percent less sugar and fewer calories than Simply juice Good2Grow Fortified Waters provides a kid- drinks, and Calcium and vitamin D to maintain strong bones and teeth. focused offering in the water door, which is • Simply Light dominated by non-kid focused options. Lemonade is a lighter Fortified Waters will further expand the and refreshing alterna- water category’s usage and appeal to kids tive to homemade who typically view water as their least desir- lemonades with 75 per- Kid-friendly Good2Grow able beverage option. cent less sugar and Fortified Waters in fewer calories than Sim- Raspberry Lemonade This new line from Good2Grow comes in and Orange Mango. a 10 ounce bottle and is available in two deli- ply Lemonade. cious flavors: Raspberry Lemonade and Or- To promote this Visit Simply Beverage’s booth at the NCASEF Trade ange Mango. Kids will also love the new, exclusive characters in this continued on page 94 Show for a special BOGO deal. line, and parents will appreciate that these products contain a good source of Vitamin D KELLOGG’S LAUNCHES MAJOR and Calcium, while still only being 20 calories and 3g of sugar. LEAGUE SOCCER PROMOTION Kellogg’s says it’s time to kick-up your Cheez-Its and Pringles sales, and give lucky winners and Simply’s New Line their friends a once-in-a-lifetime opportunity to see their favorite major league soccer team compete in any city the game is being played. Of Light Juices What makes this promotion a sure winner? With soccer’s popularity growing across the nation Simply Beverages is expanding their line and game attendance and viewing numbers setting new records every season, this promotion con- of beverages with the introduction of a new nects the consumer’s passion for their team with their favorite salty snacks, Cheez-Its and Pringles. line of juices, Simply Light. The new line of Kellogg’s has all the promotional activation elements ready to take the field: beverages stays true to the delicious Simply • On-Pack & In-Store Support: Specially marked packages of Pringles and Cheez-It products will taste fans love, but with less sugar and fewer include details of how consumers can win a trip to see their favorite soccer club play. Major League calories. Simply has the #1 SKU in unit sales Soccer promotional graphics will also be featured on Cheez-It 3-once and Pringles Large Grab & and dollar sales in 7-Eleven’s Premium Juice Go displays. Category, and new Simply Light has a strong • Easy, Fun Entry: To enter, customers simply take a selfie with a qualifying product and upload it to KelloggsMLSSweeps.com for a chance to win: Grand Prizes—5 Trips for 4 people to any MLS purchase intent: 71 percent of chilled game; First Prize—100 pairs of tickets to any MLS game; Second Prizes—1,000 $50 MLS elec- juice/drinks consumers said they would defi- tronic gift cards to the Major League Soccer merchandise website. nitely/probably will buy. Available in 11.5 • Fan Appeal: Like most sports fans, soccer enthusiasts love to snack while watching the game ounce bottles, Simply Light has a Suggested and many choose salty snacks. America’s Hispanic, Gen Y and Gen Z consumers are more engaged in soccer than any previous generation—and 80 percent are con- sciously drawn to brands that partner with their sport. The promotion runs from June 1, 2018 to July 31, 2018. Kellogg’s Major League Soccer Pro- motion gives fans a chance to score a trip to see their favorite team play.

AVANTI MAY | JUNE 2018 93 continued from page 93 new line, Simply Beverages has planned 7-Eleven- exclusive promo- mended” and on 3’ & 4’ Schematics: Smokey Mountain Herbal Snuff Classic tional activity featuring bonus points via the 7-Eleven app: Buy two Classic Flavor (SLIN 320028) and and Wintergreen are now 7- Eleven recommended 11.5 ounce Simply Juices and receive 200 Bonus Points during Period 3, Wintergreen Flavor (SLIN * items in many states. 4 and 5. Simply Beverages is also offering two special NCASEF Trade 320027). Please check your Show BOGOs: Buy one 11.5 ounce Simply Light OJ and receive one schematics. Both flavors are 11.5 ounce Simply OJ FREE; and Buy one 11.5 ounce Simply Light 100 percent sales guaranteed! Lemonade and Receive one 11.5 ounce Simply OJ FREE. For more info, All Smokey Mountain flavors are call Trish Hale at 806-786-2159 both tobacco and nicotine free, and made with FDA approved food grade ingredients in an inspected facility. For more information contact Swisher Sweets Richard Hunsberger, VP National Swerve Offers A ccounts, at 214-914-5531 or Tasty Blend [email protected]. A popular taste combination is now available: Swisher Sweets Limited Edi- Redd’s Wicked New tion Swerve cigarillos provide the per- Lemonade Limited Edition Swisher Sweets fect mixture of sweet Swerve combines strawberry Flavor and tart with its blend of and margarita. strawberry and mar- Redd’s Wicked will launch its latest garita. Swisher Sweets Swerve is available for a lim- flavor, Lemonade, in July 2018 and compete in the large, growing High-ABV Flavored Malt Bever- ited time in a resealable 2-count pouch Redd’s Wicked Lemonade with the “Sealed Fresh” guarantee, and is age lemonade category. At 8 percent ABV, was made to compete in the ready for shipment to stores nationwide. It Redd’s Wicked Lemonade turns up the dial on growing High-ABV FMB is offered in “2 for 99¢,” “Save on 2,” and lemonade for an intensity that starts strong and lemonade category. “2 for $1.49” options. finishes smooth for the ultimate refreshment. Swisher strives to give customers ex- Strongly appeals to 21-27 year-old FMB drinkers. Available in 24oz Can. actly what they want with their limited- edition cigarillos, and Swerve is sure to Small & Discreet Airio LIMITED be another favorite this summer. This edi- Micro Cigarette Filters tion of Swisher Sweets is available only EDITION while supplies last. Additional limited There are over 40 million cigarette smokers in the U.S., with many looking to reduce the harmful chemicals and POWERADE tastes are expected throughout 2018. For tar in their cigarettes. WATERMELON more information or to place an order, New Airio Micro Cigarette Filters from Smokey Mountain LIME contact your Swisher representative at 1- Herbal Snuff reduce tar by 66 percent, improve 800-874-9720. Powerade is back at taste and are small and discreet. They 7-Eleven, and is launch- also provide great retail margins: ing a new Limited Smokey Mountain with a cost of approximately Edition flavor in P4: $0.75 per 20-count filter Watermelon Lime. Why Gets SEI packs and SRP of $1.99, you Watermelon Lime? Wa- Recommended make $1.00 on each sale. termelon and Lime are Smokey at the top of trending Smokey Mountain Herbal Snuff, a Mountain’s Now orderable from flavors for seasonal in- proud NCASEF supporter for over 20 Airio Micro Cigarette McLane (UIN 930180) or gredients, and sure to years, announces that in many states two Filters cut tar and have Core-Mark (439115). Try it great retail margins. attract new shoppers! flavors are now 7-Eleven “recom- continued on page 96 Paid via billback. 94 AVANTI MAY | JUNE 2018 * continued from page 94 now and enjoy 100 percent sales guaran- flavor variety and lack of lingering smell, JUUL stands out as the vapor teed! For more Info contact Richard alternative. To learn more on becoming an authorized retailer, please Hunsberger, VP National Accounts, visit http://www.juul.com/retail/wholesale. at 214-914-5531 or [email protected]. UPTIME Energy Drinks Get New JUUL Starter Kit UPCs/SLINs UPTIME Energy continues to experience tremendous growth—at- The JUUL Starter Kit is perfect for tracting new consumers and expanding the en- adult smokers looking to switch from cig- The JUUL Starter Kit for ergy drink category to open up even more arettes, and contains everything adult adult smokers looking to opportunity. Now, UPTIME has switched from a smokers need to make the switch: a JUUL switch from cigarettes. Supplement to a Nutrition Facts label and device, a USB charger and four JUULpods: Cool Mint, Virginia Tobacco, changed UPCs and SLINs. One of the many Creme Brûlée and JUUL’s most-liked flavor, Mango. Designed for switch- benefits of making this change includes the ing and with adult smokers in mind, JUUL delivers nicotine satisfaction ability for UPTIME to be purchased with EBT, akin to a cigarette. With its unique satisfaction profile, simple interface, which further expands the customer base. To continue driving your CHERRY EXTRA STRENGTH own growth and high mar- 5-HOUR ENERGY IS BACK gins, please ensure the new The makers of 5-hour ENERGY are excited to be an official part- UPTIME UPCs and SLINs are Popular UPTIME Energy Drinks Original and ner of the 2018 MLB All-Star Game. To celebrate, they’ve re-intro- set up and ordered today! NEW UPTIME McLane/Core- Sugar Free have gotten duced a fan favorite—Cherry Extra Strength 5-hour ENERGY shots. new SLINs. They’ve also teamed up with MVP José Altuve for a pair of national mark SLINS: UPTIME Original television commercials and a sweepstakes to win a trip to Wash- Cane Sugar SLIN 214608; UPTIME Original Sugar ington, D.C. for MLB All-Star Week. Displays for floor and counter Free SLIN 241404. New UPTIME DSD SLINs: UP- are ready to ship. Cherry Extra Strength 5-hour ENERGY shots 5-Hour is partnering TIME Original Cane Sugar SLIN 242667; UPTIME are available for a limited time only, so order yours today! with MLB on Cherry Original Sugar Free SLIN 242678. UPTIME is how Extra Strength, available energy should feel! for a limited time. 5-HOUR’S NEWEST LINE OF SHOTS: TEA Super Healthy The makers of 5-hour ENERGY have announced WTRMLN WTR the release of an exciting, innovative line of energy WTRMLN WTR is the shots: 5-hour TEA. With caffeine from green tea pioneer in deliciously hy- leaves—and only green tea leaves—it’s energy drating, super healthy water- for people with a more natural outlook. 5- melon water. It is hour TEA is available in two flavors—Peach made with two sim- Tea and Lemonade Tea. With its crisp, clean ple ingredients— look and great taste, 5-hour TEA is designed to fresh watermelon and attract a new generation of energy shot con- organic lemon. Each sumers. Both flavors are available now, and na- WTRMLN hand-selected, hand- tional television advertising has started, so be WTR is skinned melon is cold- made with two simple ingredi- 5-hour TEA is designed to attract a new sure to have plenty of 5-hour TEA on hand to ents—fresh watermelon and pressed using the rind generation of energy shot consumers. meet the growing demand. organic lemon. continued on page 98

96 AVANTI MAY | JUNE 2018 continued from page 96 and flesh, treated with a short, innovative nutrient preserving five great flavors your customers will love: process, and refrigerated until consumed in BPA-free plastic bottles. 1. Heisenberg (the original blue slushie flavor—a Top-5 selling e-liquid Every detail, including how the company tells its story through well- flavor in the U.S. for four straight years) ness experts hired as brand educators, the chic melon-forward pack- 2. Heisenberg Menthol (the menthol version of Heisenberg, and the #1 aging, the elegant “straw in melon” selling e-liquid flavor in China for two straight years) design, and even its corporate office 3. TNT (a pure Virginia blonde tobacco) have a touch of love—hence, the 4. TNT Menthol (the menthol version of TNT) product’s nickname of “Liquid Love.” 5. Vape My Day (a butterscotch caramel with a hint of vanilla) Innevape was established in 2012, and has grown to become one of Nutraplex Raises the largest e-liquid manufacturers in the world. Distrib- uting to over 50 countries, Innevape is a leader and in- The Nutrition Bar novator in the e-liquid industry. To sample these truly The quest for a better-for-you innovative new products, please stop by In- snack/nutrition bar just took a running nevape’s booth at the NCASEF Trade Show. leap forward: Nutraplex Bars lead the pack in flavor and nutrition profiles. Introducing White Owl Nutraplex Each delicious bar delivers superior nu- Foilfresh Sangria Bars blend a grab-me- trition and energy for the long haul, in- off-the-shelf packaging appeal cluding 13 grams of chia, 8 grams of Cigarillos with high nutritional value. fiber, 2,500 mg of Omega-3s, protein and Swedish Match’s White Owl is expanding antioxidants. All the ingredients are derived from nuts, seeds and fruit. upon the award-winning Limited Edition White Owl Sangria cigarillos will Nutraplex Bars blend grab-me-off-the-shelf packaging appeal with FoilFresh franchise to include White Owl begin shipping on July 3. off-the-charts nutritional value. Tasty, intriguing flavors—Megaberry, Sangria. Customer can enjoy a smoke Pineapple Coconut, Mango Strawberry, Pomegranate Cherry—reward that’s as relaxed and smooth as a sip of robust red wine, with just enough consumer’s taste buds. At the same time, gluten free, low glycemic, soy delicious, fruit taste to tantalize their taste buds. The latest slow burn ciga- free, dairy free, Non-GMO, Kosher, and vegetarian ingredients reward rillos from White Owl provides the perfect bouquet of mellow tobacco the inner athlete in all of us. paired with a vine-ripened flavor and a pleasant, intoxicating aroma. On July 3rd, this new Limited Edition offering will begin shipping. Innevape Enters 7-Eleven White Owl Sangria is available in “2 for 99 cents,” “2 for 1.49,” and With Two New Products “Save on 2” formats. Call (800) 367-3677 or e-mail [email protected] for Innevape is excited to introduce two new products at the 2018 more information. NCASEF Convention and Trade Show, specifically designed with the convenience store market in mind—Innevape Salts and InneStix. • Innevape Salts are 30 ml bottles of salt nicotine e-liquid, which is Fast-Casual Tai Pei used in smaller devices. They are available in 24 mg or 50 mg salt nico- Frozen Asian Entrees tine strengths. Tai Pei Frozen Asian Entrees offer Asian • InneStix are pre- fast-casual meal options for today’s on- Tai Pei Frozen Asian Entrees filled disposable salt offer a quick, affordable Asian the-go consumer. Tai Pei is available in nicotine e-cigarettes. meal solution. four delicious flavors made with fresh, They are available in bold, quality ingredients: Chicken Fried Rice, Beef & Broccoli, Sweet & 50 mg nicotine Sour Chicken, and Chicken Egg Roll. Conveniently located in the strength. frozen food section and ready in minutes, Tai Pei single serve entrées Both Innevape Stop by Innevape’s booth at the are prepared with crisp, clean ingredients that contain no additives, Salts and Innestix NCASEF Trade Show to sample Innevape Salts and Innestix. preservatives, artificial flavors or colors. Give your customers what they are available in crave—a quick, affordable Asian meal solution with Tai Pei!

98 AVANTI MAY | JUNE 2018 7-Eleven FOAC Columbia Pacific FOA Phone: 847-353-9999 Phone: 503-998-5941 FOA Board July 19, 2018—Board Meeting August 21, 2018—General Members Meeting August 30, 2018—Board Meeting September 20, 2018—Board Meeting September 27, 2018—Board & General Mtg. October 25, 2018—Board Meeting Meeting October 25, 2018—Board Meeting Midwest FOA November 29, 2018—Board Meeting Phone: 815-210-2950 December 13, 2018—Board Meeting CHICAGO DATES Dates Central Florida FOA Co-hosted with Alliance FOA Phone: 347-251-1828 September 27, 2018—General Meeting August 16, 2018 MICHIGAN DATES November 8, 2018 October 4, 2018—General Meeting

Share Your Experience and Expertise Do you have a store experience, some operational expertise, or thoughts about the 7-Eleven system you would like to share with your fellow storeowners? Avanti Magazine welcomes articles from franchisees interested in communicating their ideas, knowledge, suggestions, opinions, etc. to the franchisee community at large. Please contact Sheldon Smith at [email protected] or 215-750- 0178 if you would like to contribute an article to Avanti. Midwest FOA Castlewood Country Club Midwest FOA/ foa events Michigan Golf Outing Pleasanton, California Alliance of 7-Eleven (venue to be announced) September 10, 2018 Franchisees FOA Phone: 510-693-1492 7-Eleven FOAC August 16, 2018 Holiday Party Phone: 815-210-2950 Annual Picnic San Diego FOA (venue to be announced) Forest Preserves of Cook County December 5, 2018 Midwest FOA/ Vendor Appreciation Phone: 815-210-2950 Busse Woods Grove 29 Day Elk Grove Village, Illinois Alliance of 7-Eleven AleSmith Brewing Company July 21, 2018 Franchisees FOA San Francisco/ San Diego, California Phone: 847-353-9999 Golf Outing Monterey Bay FOA October 4, 2018 St. Andrews Golf & Country Club Phone: 619-713-2411 Holiday Party Rocky Mountain FOA West Chicago, Illinois Biltmore Hotel Annual Charity Golf August 22, 2018 7-Eleven FOAC San Jose, California Tournament Phone: 815-210-2950 December 7, 2018 Holiday Trade Show Phone: 510-693-1492 Cheyenne Mountain Resort Holiday Inn Colorado Springs, Colorado San Diego FOA Day At The Races Skokie, Illiinois Midwest FOA August 7, 2018 November 15, 2018 Del Mar Thoroughbred Club Phone: 855-516-1090 Phone: 847-353-9999 Michigan Holiday Party Del Mar, California Somerset Inn Rocky Mountain FOA August 24, 2018 Columbia Pacific FOA Troy, Michigan Trade Show Phone: 619-713-2411 December 12, 2018 Holiday Party Phone: 815-210-2950 Hotel Elegante Hilton Hotel Colorado Springs, Colorado San Francisco/ Monterey Bay FOA Vancouver, Washington San Diego FOA August 8, 2018 November 30, 2018 Phone: 719-576-5900 Golf Tournament Phone: 360-513-0289 Holiday Party San Diego Marriott Del Mar San Diego, California (Carmel Valley) December 15, 2018 National Phone: 619-713-2411

Coalition National Coalition 43rd Annual Board of Directors Meeting Convention & Gaylord Palms Resort & Convention Center Trade Show Orlando, Florida July 22-23, 2018 Gaylord July 23-26, 2018 National Coalition Trade Show: July 25-26, 2018 Palms Resort Affiliate Meeting & Convention Pacific Palms Resort City of Industry, California Center November 5-6, 2018 Orlando, National Coalition Florida Board of Directors Meeting Pacific Palms Resort City of Industry, California November 7-8, 2018

102 AVANTI MAY | JUNE 2018