Prepared How perseverance and teamwork helped Ari Haseotes, CSP’s 2017 Retail Leader of the Year, reinvent toBY SAMANTHA Win OLLER PHOTOGRAPH BY WEBB CHAPPELL

48 csp december 2017 very fisherman has their white Cumberland Farms’ board for several years, his life and the lessons he tried to teach you.” Never settle. Cumberland Farms’ vertical has represented the company for more than During the summers, Byron would send integration, which includes its own distribu- whale—the fish prized above all 40 years, and is general counsel for NACS Ari and his brother, B.J., into the fields of the tion centers, Culinary Center and in-house and SIGMA. “I do work for a lot of busi- family farm to work from sunrise to sunset. On facilities team, demonstrates a commitment others because it is so tough to nesses and, as a consequence, I’ve learned weekends, Byron would bring Ari on visits to to meeting its own high standards. catch. For Ari Haseotes, it’s the to recognize people who have what I call the stores and give him an education in retail. “A lot of people in my position … would ¶ ‘the chops’ and the people who don’t,” says “When I first took a business course, I was say we could just outsource that and you blue marlin. “The blue marlin Columbus. “Talk to Ari for an hour and you so far ahead of my peers because I had this don’t have to worry about it anymore,” says is a very elusive species,” says know: The kid’s got the chops.” tremendous education in what a business Ari, citing the in-house maintenance staff as He cites Ari’s intellect (he earned an MBA was about,” says Ari. He was not necessarily an example. “Maybe that’s true at some level, Ari, who learned to fish from his from Harvard University), his analytical skills required to work at Cumberland Farms after but somebody, somehow, somewhere suffers and the fact that he learned the c-store busi- college, but Byron expected him to do some- from doing things that way.” father and now shares the passion ness from the bottom up. Ari started in the thing meaningful. Own it. Ari believes in accountability, and with his own son. “They’re very company’s marketing department in 2003 Ari says, “He felt like, ‘Look, you’ve had ev- he takes detailed notes during meetings with and rose through the ranks before being erything, kid—every opportunity. I expect to Cumberland Farms’ management team. “If large, powerful, majestic and fast. named president of Cumberland Farms Re- see you reciprocate in a way and work hard.’ ” they tell me they’re going to do [something] They re also very smart. Tricking tail in 2008, president of the combined Cum- So Ari buckled down. “I needed to be the by a certain date, they know when that date ’ berland Gulf Group in 2013 and CEO in 2014. first one in the classroom and the last one to comes, I’m knocking on the door and saying, them into going after whatever But he has never taken the easy route, nor leave,” he says. “If my classmates were going ‘Hey, where is the deliverable?’ ” he says.

we’re trying to get them to eat is never easy.” When Ari does catch a blue marlin, he has it been offered to him. “Ari’s never going farms cumberland of courtesy photograph to study two hours, I was going to study four “He is so detail-oriented and never forgets The key to catching one is perseverance. always releases it back into the water. “You to ask anybody to do anything he wouldn’t or six hours.” Ari enjoys sharing his ocean catches, anything,” says Ashley. “If you say you’re go- “You have to have all of your equipment in come to have so much respect for them do himself. That’s a sign of a great leader,” It began to make an impression on Byron. especially bluefin tuna, with Cumberland ing to do something and don’t, that infuriates tip-top shape and be fully prepared,” Ari through that chase and hunt,” he says. “It re- says Columbus. “Because of his leadership “He’d say, ‘You know, my boy Ari, he’s Farms team members. him.” Esays. “You’ve got to have a crew and a team ally wouldn’t ever feel right to end that battle skills, he pulls all those arrows in the same going to run the company someday,’ ” Ari For this, Ari is willing to put his money that is in complete sync and knows exactly by keeping the fish.” direction—in the right direction.” recalls, citing his embarrassment at his dad’s where his mouth is: He promises to reply to what to do if you are fortunate enough to get proclamation. He was only 33 when he be- The Virtuous Cycle any emails, from anyone in the company, one on the line. And at the end of the day, The Kid’s Got Chops Something Meaningful came president of Cumberland Farms. Once at the office, it’s not unusual to see Ari within one day. you need a little bit of luck.” It was only 14 years ago that Ari joined the One of Byron and Joyce Haseotes’ six chil- “My dad passed away about six months actually running to and from meetings—not Tell it like it is. Ari’s Cumberland Farms Lessons from fishing have transferred to family business. And it’s been just a de- dren, Ari had a lot to live up to. His father— after that,” he says. “I was happy he was able because he’s late, but because he’s motivated. team members describe him as tough—but Ari’s role as CEO of Cumberland Farms, the cade since he took the helm of Cumberland one of the three Haseotes brothers to work to see me get to that level before he passed “His family legacy and the fact that his fair. “If you go into the room thinking you’re c-store chain his grandparents founded near- Farms’ retail operations, which include near- for the family business—introduced new away—I think it made him pretty proud.” grandparents started this company is liter- going to make Ari happy, then you’ve already ly 80 years ago. This includes keeping an eye ly 600 stores in eight states. At 43 years old, products such as half-gallon jugs of milk to Ari’s promotion to president in 2013 and ally the reason he gets up every day and does lost,” says Keith , director of foodser- on details, being prepared and emphasizing he is one of the youngest executives honored Cumberland Farms’ first dairy store. He was then CEO in 2014 was “the natural cause of his job,” says Ashley Haseotes, Ari’s wife. vice for Cumberland Farms. “You just give teamwork. He even has a motto to motivate as CSP Retail Leader of the Year in the 15- also an inventor, with several U.S. patents un- events,” says his aunt Lily Haseotes Bentas, “He believes this is his duty: to protect what him the facts—the good, the bad, the ugly— his fishing crew and his team at company year history of the award. But his leadership der his name, and a fruit farmer. chairman of Cumberland Farms and its CEO his grandparents started and to take care of and then we sift through it.” headquarters in Westborough, Mass., para- has been no less transformative, coaxing the While Joyce was affectionate and warm, from 1991 to 2008. an asset that has the potential to be even bet- As an example, he mentions Cumberland phrased from college football coach Bear best out of the company and its more than Ari describes Byron as “a work-ethic guy,” a “He was the most qualified person to take ter than it is today.” Farms’ development of a private-label break- Bryant: While everyone has the will to win, it’s 8,500 team members. stoic. “He wasn’t the kind of guy to give you over,” she says. “There was no question in my This commitment is evident in how Ari fast sandwich program two years ago. Bos- the will to prepare to Tim Columbus, partner with Steptoe & a big hug and tell you he loved you,” he says. mind—he’s extremely bright, hardworking personifies Cumberland Farms’ four core ton’s team decided to take a risk and wrap the win that matters. Johnson LLP, Washington, D.C., served on “He’d show you that through the way he lived and has a great work ethic.” values: sandwiches in clear plastic wrap instead of the

1939 1956 1971 1986 1991 1994 Vasilios and Aphrodite The Haseotes Cumberland Farms Cumberland Farms Lily Haseotes LP joint Haseotes found family opens opens its first purchases Gulf Oil’s Bentas is venture launches, Cumberland Farms with its first location with gas in Northeast marketing appointed CEO. supplying a one-cow dairy farm in Cumberland Putnam, Conn. assets. Around this Cumberland Farms’ Cumberland, R.I. Farms site, a same time, the stores c-stores with fuel. dairy store in add lottery and Bellingham, money orders. Mass.

50 csp december 2017 december 2017 csp 51 Cumberland Farms has raised more than $520,000 for pediatric-care programs through its Cups For Kids campaign.

traditional butcher wrap, as a differentiator. “It failed miserably,” says Boston. With heart in hand, he explained to Ari the thinking behind the clear wrap, and the poor sales. But instead of chiding Boston for the failure, Ari complimented the foodservice team instead. “He said, ‘You know, it was the right thing to do because we took a chance,’ ” Boston says. Succeed together. With $3.8 billion in annual revenue, Cumberland Farms ranked 18th on Forbes’ list of America’s Largest Pri- vate Companies in 2016. And with that de- gree of success comes a certain expectation on spending. For example, one employee

photograph courtesy of cumberland farms cumberland of courtesy photograph suggested: Instead of having the chain’s hun- dreds of store managers meet up near head- Farms launched Cups for Kids, a quarters for the company year-end meeting, fundraising campaign that raises money how about going to an exotic locale? From for pediatric programs at local hospitals. But Ari is a firm believer in the motto For the 2017 campaign, Cumberland Farms “Profits provide possibilities.” If the busi- the Heart donated 5 cents from every iced coffee ness is not cost-conscious and profitable, the and Chill Zone beverage sold in August to company will not have the capital to build Charity plays a big role at Cumberland five Northeast hospitals. In five years, it new stores or provide opportunities for em- Farms, which focuses its efforts on has donated more than $520,000. ployees to advance their careers. And if it is local causes. “We have a very important “It allows us to build a connection not building or remodeling stores, customers responsibility in the communities where locally or regionally with a hospital,” will see it falling behind in the marketplace. we operate, not just to do business there, Ari says. “That means a lot to those It’s part of Cumberland Farms’ but to be contributing members of the communities and to the guests we’re shared-prosperity model. “If the company community,” says Ari Haseotes. serving in those communities. It means continues to perform at a high level and Its biggest charitable efforts include: a lot to the team members in those you’re fully committed to it—you own it, Hope Fund. This emergency financial communities who are working in those you’re accountable as our values require— assistance program helps Cumberland stores every day, that we’re giving back to we’re going to invest back in you,” says Ari. Farms employees who are facing a causes that are relevant, directly to those “And the virtuous cycle will continue.” financial need, whether it be repairing in need in their market areas.” a home damaged by flooding, providing Believe & Achieve Scholarship. Since How to Make a Tough Decision a funeral for a loved one or helping with 2007, Cumberland Farms has awarded A key example of this investment in employ- electrical bills during a tough time. The more than $1.1 million in scholarships, or ees happened in 2013, when Cumberland was fund has grown to $175,000, thanks to $130,000 per year, to high school seniors one of the first c-store chains to announce it donations from employees, which are who live within 30 miles of a Cumberland would extend health insurance to all employ- matched by Cumberland Farms. Farms store. In 2017, the chain gave out ees, in advance of the Affordable Care Act. It “The company is going to be very $1,000 scholarships to more than 130 generous, but we’d like to see fellow students. The company also names a teammates step up as well,” Ari says. “That Haseotes Scholar Award to the student builds a sense of camaraderie and pride, who best represents the company values and togetherness and connectedness.” of hard work, community service and 2003 1,100 Cups for Kids. In 2011, Cumberland achievement. Ari Haseotes begins working The Haseoteses’ One Mission. When Ari and Ashley’s son was a baby, he was for Cumberland Farms in diagnosed with cancer. It was a tough time for the family, filled with fear and long the marketing department. hospital visits. After their son recovered, the Haseoteses started One Mission, a charity Cumberland Farms acquires that supports families in a similar situation. “We pay for them to park, help to feed 200 sites from ConocoPhillips, them, because it’s expensive when you have a kid in the hospital,” says Ashley, who bringing its store count to oversees the charity. One Mission also provides toys and games to children in the more than 1,100. hospital, and it has recently launched Heart to Heart, a group that lets parents connect and commiserate about the stresses of having a seriously ill, hospitalized child.

december 2017 csp 53 ultimately reclassified 1,500 part-time em- ployees to full-time status. eight children, two of whom—Demetrios Ari, who at the time was president and (Jim) and Lily—would go on to lead the COO, says the decision was easy. Cumber- c-store chain, and others were involved in land Farms’ management team likens the the business, including Ari’s father, Byron. company to a three-legged stool, support- “Like all parents, they wanted the ed by its shareholders, team members and American dream: college and education guests. If the company disproportionately re- for their kids,” says Lily Haseotes Bentas, wards or deprives one of those legs, the stool chairman of Cumberland Farms. loses balance and falls over. For much of its history, Cumberland Part of the calculus was research that Farms’ strength was its ability to pick found a full-time employee stays with the real estate that delivered a solid return farms cumberland of courtesy photograph company three to four times longer than a on investment. “One of the things I’d part-timer. never argue with the Haseoteses was real “We know it leads to a stronger company, A Real-Estate estate—not once,” says Tim Columbus, a one that’s people-centric and focused on de- former board member and partner with livering a great customer experience by being Dynasty Steptoe & Johnson LLP, Washington, D.C. the best place to work,” Ari says. “Those people could find a piece of dirt “He puts a lot of emphasis on taking The legend goes that Vasilios and like no one else I knew.” care of the co-workers,” says Don Zietlow, Aphrodite Haseotes (above) founded “When we started buying out co-founder of Kwik Trip Inc., La Crosse, Cumberland Farms in 1939 with $84 and locations ... they needed to be on a Wis., and CSP’s 2012 Retail Leader of the a one-cow dairy farm in Cumberland, R.I. corner, with easy access,” says Bentas. Year. “The company has to take care of the Both were Greek immigrants. They had “It’s how we built the company.” co-workers, and in turn they take care of the guests who come into the stores, and I think he’s accomplished that.” “She’s always said to me: At the end of the to ArcLight Capital Partners, the wholesale Ari learned this people-centric manage- day, you’ve got to look in the mirror and feel fuel arm of the business had grown to supply ment style from other leaders. They include like you did the right thing,” he says. A tough 2,300 branded outlets and 1,000 private-la- the late Harry Brenner, who in 2003 became decision may not always feel good at the time, bel sites, and it owned 12 terminals. the first non-family member to lead Cum- “but if you feel you made the right decision, “For each of the companies to maximize berland Farms. Another mentor was Dick no matter how difficult it was, you can look at their respective performance, it didn’t seem Jensen, former president of SuperAmerica. yourself in the mirror and feel good.” to me they could be together,” says Ari. They were the kind of leaders “who, when One of the toughest decisions the man- “They required different things financial- there’s a buffet and a limited amount of food, agement team had to make was selling Gulf ly, different things operationally, different they go to the back of the line and let the team Oil LP, which had been attached to Cumber- things culturally. get food first,” says Ari, “and they’ll eat only if land Farms since 1993. Gulf was part fuel “I wasn’t convinced we could adequately there’s food at the end of the line.” play, part real-estate play for the Haseotes provide the right amounts of each of those And Ari singles out Bentas, his predeces- family, having brought 600 gas stations into things to allow each company to perform at sor and aunt, for teaching him a valuable les- Cumberland Farms’ network. By the time its best,” he continues. “So we made a tough son in leadership. Cumberland sold Gulf Oil in December 2015 decision.”

2005 2008 2011 Ari is promoted to vice president Cumberland Farms and Gulf Oil The premium CF Farmhouse of strategic planning and merge into the Cumberland Gulf private-label brand debuts, business development and Group. Bentas steps down as including snack and candy joins the company’s board of CEO while remaining chairman; products. Cumberland Farms directors. Cumberland Farms Petrowski becomes group launches its first Cups for Kids reacquires all outstanding CEO and Ari is promoted from charity event. shares of Gulf Oil LP. This same vice president of marketing to year, Joe Petrowski is named president and COO of Cumberland president and CEO of Gulf Oil LP. Farms Retail.

54 csp december 2017 What made the decision especially tough was having to say goodbye to employees who had invested decades in Cumberland Gulf. The management team did its best, Ari says, to treat them with respect, and financially recognize their years of service and commit- ment to the company. “I was up many nights thinking about it,” he says. “But at the end of the day, I think we made the right decision for both companies and shareholders.” Columbus, who was not on the board at the time, agreed with the decision to sell Gulf. In fact, he would have argued to sell the fuel arm of the business years ago. “It freed up an enormous amount of cash for

them, and it provided capital for Ari and the farms cumberland of courtesy photograph company to do what it needs to do,” he says. Cumberland Farms’ next-generation store features an expanded foodservice menu to rival that of fast-casual restaurants. ’s C-Stores Nine years ago, Ari met with Marty Dono- hue, partner and creative director of Bos- here,” says foodservice director Boston. “Ev- “Here’s a young guy trying to reshape ton-based Full Contact Advertising. He had eryone just assumed that no one’s going to go Cumberland to what it is today,” says Steve transformation on his mind. against Dunkin’, and Ari proved them wrong.” Loehr, vice president of operations support “When we first met Ari, he was very Since perfecting the coffee bar, Cumber- for Kwik Trip, who knows Ari from their work forthcoming, very candid and very hon- land Farms has set its aim higher. The chain together at NACS. “He’s had to be strong, est about what Cumberland Farms was,” has invested heavily in its c-store network, bold and willing to face challenges. He wasn’t Donohue says. “It was sort of a last-resort entering new urban markets and ramping up doing it for himself—he was doing it for the destination. It’s where people would go be- its entry into . It debuted its newest betterment of himself and his co-workers. cause they needed batteries at 11 o’clock at 5,000-square-foot prototype in Florida this “I don’t hear Ari say, ‘I did this,’ ever. It’s night, or diapers or lottery tickets. It was not past August, featuring an expanded foodser- ‘We did this, we’re doing that.’ ” a daily destination. He and his team set out vice menu with ciabatta sandwiches, melts Ari would be inclined to agree. Like many to change all that.” and frittatas, and new beverage options such Retail Leaders of the Year before him, he is First, they reimagined the coffee offer, as specialty coffee drinks, smoothies, frozen loath to take credit for his company’s success, which moved from a typical cup of c-store espressos and milkshakes, all available from and instead considers himself working along- brew to Cumberland Farms’ Farmhouse self-service ordering terminals. side Cumberland Farms’ thousands of em- Blend. Full Contact oversaw the viral adver- “[Ari] has really changed the way they go ployees to push it toward the retail summit. tising campaign starring David Hasselhoff to market,” Columbus says. “It is a remark- “I don’t believe for a moment that any that helped catapult Cumberland Farms into able change. ... Cumberland Farms has real- individual has accomplished what this com- consumers’ hearts. ly become New England’s c-store company. pany has accomplished,” Ari says. “We have “Dunkin’ [Donuts] is so prevalent up That’s a big deal.” done it as a team.”

2013 2014 2015 2016 Petrowski steps down as CEO Ari succeeds Bentas as Cumberland Farms Cumberland Farms of Cumberland Gulf Group CEO. Bentas remains announces sale of its headquarters move in another reorganization of with the company as dealer business and from Framingham to leadership. Bentas steps in chairman of the board. Gulf Oil LP to ArcLight Westborough, Mass. as interim CEO. Ari becomes Company opens its Capital Partners. president and group COO. Culinary Center in Westborough, Mass.

Source: Cumberland Farms

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