March/April 2011 THE VO ICE OF 7 -ELEVEN FRANCHISEES

Taking Back The Cigarette Category Questions Arise With Realignment Plan Gross Profit Dollars And Percent Independent Contractor… Nation al Coalitio Reality Or Fantasy? Con n 36th An vention an nual d Trade Sh FM Billing Issues July ow 17-21, 2011 Tracking Juggling Paris Money Las V e Hotel an gas Order d Casin Page o Payments System 20 & 86 Focus On Customer Service Changes For The Love Of Beer! What Workplace Employee Injuries Cost You

m a r c h ~ a p r i l

Page 68 How To Remain King Of The Ice A Look At Frozen Beverage Trends Page 63 2 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 3

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12 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 13 14 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 15 The Voice of 7-Eleven Franchisees March/April 2011

37 Taking Back The 32 Time To Focus On Cigarette Category Customer Service BY BRUCE MAPLES, CHAIRMAN, BY KEVIN NIJJAR, VICE PRESIDENT, NATIONAL COALITION FOA OF GREATER LA 41 Many Questions Arise With How To Remain Realignment Plan King Of The Ice BY JOE GALEA, EXECUTIVE VICE CHAIRMAN, A Look At Frozen Beverage Trends NATIONAL COALITION BY BOB SWEENEY, DIRECTOR NATIONAL SALES, AND LIBBY GOLDSCHMID, 43 Independent SENIOR NATIONAL SALES EXECUTIVE, Contractor… COCA-COLA REFRESHMENTS Reality Or Fantasy? Page 63 BY ARNOLD J. HAUPTMAN, Na GENERAL COUNSEL, tional Co alition 36t NATIONAL COALITION Conven h Annu tion and T al Ju rade Show 47 Gross Profit Dollars ly 17-21, 20 And Percentage P 11 aris Las BY JAY SINGH, VICE CHAIRMAN, H Vegas NATIONAL COALITION otel and Casino 49 Tracking Money Order DEPARTMENTS Payments 18 Member News: National www. ncas ef.c om BY ROGER ST. GEORGE, Coalition Website, Hire Heroes USA VICE CHAIRMAN, NATIONAL Fundraising, Andretti Indy 500 Car, 7-Eleven TV, Seven & I Earthquake Profit COALITION Drop, Global Campaign For Japan Disaster Relief, Swipe Fee Reform Delayed, Zees Visit Lawmakers On Swipe Fee, SEI Realign - 53 FM Billing Issues ment, NBLC Co-Chairs, C-Store Strong Growth In 2010, C- BY JIVTESH GILL, VICE CHAIRMAN, Store Tobacco Sales Survey, The Philip Morris MLP NATIONAL COALITION Controversy, Donation Fund, VA City Removes RedBox, Pepsi - Co Dream Machine, Tobacco Legislation, Victory Acquires 47 Page 59 67 What Workplace Employee Locations, Maryland Raises Alcohol Tax, Lowering Cigarette Taxes, Injuries Cost You Colorado Beer Bill, Walmart Smaller Stores, NY Tobacco Fee Rollback BY TOM BY JOHN HARP, CSP, ARM, ASSISTANT VP BURKEMPER, SR. LOSS CONTROL, MITSUI SUMITOMO 29 Bits&Pieces: From the C-store Industry DIRECTOR TRADE MARKETING & INSURANCE GROUP SEI News: 7-Eleven Store Count Passes 40,000, Lend Lease, CATEGORY r c h ~ a p 88 m a r i l Illinois Tollway Oases, SEI New VP, ABC Regional Sports For 7- MANAGEMENT, ANHEUSER-BUSCH Eleven TV, Thor, ‘Undercover Boss’ INBEV 93 Vendor Focus: New Products for Franchisees Page 68 104 Franchisee Calendar: National Coalition Board Meetings and Regional FOA Meetings

AVANTI is published by the National Coalition of Associations of 7-Eleven Franchisees for all independent franchisees, corporate store managers, area licensees and interested parties. National Coalition offices are located at 3561 East Sunrise Drive, Suite 113, Tucson, AZ 85718. For membership in - ©2011 National formation, call 520-577-8711, e-mail [email protected] or fax to 520-577-4688. AVANTI Editorial and Advertising 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- Coalition of Associations 0399; on-line, send messages to [email protected]. of 7-Eleven Franchisees NATIONAL COALITION OF ASSOCIATIONS OF 7-ELEVEN beat that amount this year. SEI has 7-Eleven/National pledged to fill at least two field consult - FRANCHISEES Coalition/Vendor Fundraising ant positions with qualified vets where available, and company representatives Campaigns Benefit will participate in military-base work - NatioNal officers Hire Heroes USA shops to discuss employment and fran - The National Coalition has partnered chising opportunities. Bruce Maples with SEI and some of their top suppliers to NATIONAL CHAIRMAN raise money for Hire Heroes USA 520-577-8711 • [email protected] 7-Eleven TV Rolls (HHUSA), a nonprofit organization that Joe Galea offers transition, job search and job place - Out Nationwide EXECUTIVE VICE CHAIRMAN ment assistance and services for returning SEI has begun nationwide deployment 650-906-7936 • [email protected] veterans of Operations of 7-Eleven TV, which provides 24/7 pro - Arnold J. Hauptman Iraqi Freedom and Endur - gramming featuring national and local en - ing Freedom, particularly tertainment, news, weather, GENERAL COUNSEL 516-541-7200 • [email protected] those who have been and advertising highlighting wounded or disabled dur - The Coali - 7-Eleven proprietary brands, Jivtesh Gill ing their military service. tion has in-store and out-of-store VICE CHAIRMAN Customers can support teamed with SEI brands, as well as special 7- 209-481-7445 • [email protected] the effort by purchasing spe - Eleven promotions. Before Roger St. George cially marked products dur - and vendors to the national rollout, 7-Eleven ing April and May at support Hire He - TV was operating in 500 VICE CHAIRMAN 360-500-1248 • [email protected] participating 7-Eleven stores. roes USA. stores in some of the top A portion from the sale of DMAs and highest traffic vol - Jatinder Singh each item will be donated to ume 7-Eleven stores in the VICE CHAIRMAN HHUSA. Tags designating the donation U.S., including New York, Los Angeles and 702-249-3301 • [email protected] amounts will be featured prominently Chicago. When fully deployed, it will be Anas Abboud throughout the store along with a special carried in 6,200 stores—reaching more display of participating products. Among TREASURER companies joining in the effort are Nestle continued on page 20 215-946-4608 • [email protected] USA, Anheuser-Busch InBev, Miller - CONVENTION CHAIRPERSON Coors, E&J Gallow Winery, Dr Pepper 520-577-8711 Snapple Group, Tropicana Products Inc., [email protected] Mars, Inc., Kellogg's and Kraft Foods, Inc. To encourage participation, many of the John Riggio Sheldon Smith MEETING/TRADE SHOW products are being offered at special PUBLISHE R&ADVERTISING SALES COORDINATOR prices during the two-month campaign. 215 750-0178 262-275-3086 • [email protected] Franchisees can support this effort by or - [email protected] dering participating products during the John Santiago Sheldon Smith campaign period, April and May. ASSISTANT EDITOR AVANTI PUBLISHER The National Coalition has pledged 215 750-0 1 78 ADVERTISING MANAGER its support to HHUSA and will donate [email protected] 215-750-0178 • [email protected] the proceeds from its Joe Saraceno Char - Tricia Kessler ity Golf Tournament this July during the GRAPHIC DESIGN 36th Annual Convention and Trade KESSLER DIGITAL DESIGN The Voice of 7-Eleven Franchisees Show in Las Vegas. Last year, the Nation - Avanti Magazine is the March/April 2011 al Coalition raised $100,000 for Hire He - registered trademark of The National Coalition Of Associations ©2011 National Coalition of roes through the golf event, and plans to Of 7-Eleven Franchisees. Associations of 7-Eleven Franchisees

18 AVANTI MARCH | APRIL 2011 CONTINUED FROM PAGE 18

You ca July 17-21, 2011 Five da n’t bea ys packed t these an with bus odds: d present iness-bui Trade Show: ations, a lding sem two-day t inars Wednesday, July 20 notch e rade show ntertainm , top- Thursday, July 21 of f ent, and amily-frie loads ndly activ out the Sc ities! Chec hedule of k see Events be what awa low to its you at the show! Cele brate 7- Win Eleven’s At The ning 36th An St nual Co rea In T nvention k! he Cent & Trad er Of La e Show s Vegas! SUNDAY, July 17 Sc 12:00 p.m. – 5:00 p.m. hed Franchisee and Vendor Registration 2:00 p.m. – 3:00 p.m. ule Franchisee and Vendor Registration of 7:00 p.m. – 9:00 p.m. Even Welcome Reception Featuring Singer 7:00 p.m. – 10:00 p.m. WEDNESDAY, July 20 ts Diane Lewis See Any Harrah’s Show With 8:00 a.m. – 1:00 p.m. $100 Voucher THURSDAY, July 21 MONDAY, July 18 Franchisee and Vendor Registration TUESDAY, July 19 7:00 a.m. – 8:00 a.m. 9:00 a.m. – 1:00 p.m. 8:00 a.m. – 4:00 p.m. Franchisee and Vendor Registration Golf and Tour Las Vegas Day! Wake Up & Exercise Franchisee and Vendor Registration 7:00 a.m. – 8:00 a.m. 6:45 a.m. 8:00 a.m. – 9:00 a.m. 7:00 a.m. – 8:00 a.m. Continental Breakfast Wake Up & Exercise Wake Up & Exercise Joe Saraceno Charity Golf Tournament Benefiting Hire Heroes 9:00 a.m. – 10:30 a.m. 8:00 a.m. – 9:00 a.m. 8:00 a.m. – 9:00 a.m. (buses depart) Motivational Speaker— Continental Breakfast Continental Breakfast 7:30 a.m. Robert Stevenson 9:00 a.m. – 10:00 a.m. 9:00 a.m. – 10:30 a.m. Joe Saraceno Charity 10:30 a.m. – 11:30 a.m. Legal Seminar With Arnold Hauptman “State Of The Coalition” with Chairman Golf Tournament Shotgun Start Speaker—Amber MacArthur 10:00 a.m. – 11:00 a.m. Bruce Maples and the NCASEF Officers Speaker—Football Great Drew Pearson 7:00 a.m. – 8:00 a.m. 12:00 p.m. – 4:00 p.m. 10:30 a.m. – 12:00 p.m. Wake Up & Exercise “BEATING THE ODDS” 11:00 a.m. – 3:00 p.m. Accounting Seminar with SEI VP TRADESHOW EXTRAVAGANZA “BEATING THE ODDS” 8:00 a.m. – 4:00 p.m. TRADESHOW EXTRAVAGANZA and Controller John Ehrie and 7:00 p.m. Senior Director of Inventory Franchisee and Vendor Registration (Registration closed noon to 1 p.m.) Charity Silent Auction 5:30 p.m. - 6:30 p.m. Accounting Anne Bond International Buffet Dinner & Dancing “2011 Celebration” Cocktail Reception 12:30 p.m. – 2:30 p.m. Live Music and DJ 6:00 p.m. – 10:00 p.m. “Beating The Odds” Luncheon— Children’s Banquet Entertainment & Prizes 6:30 -10:30 p.m. Entertainment By Comedian “Beating The Odds” Grand Banquet Mark Kornhauser To register ,goto www .ncasef.com Entertainment: Comedian Dan Nainan

continued on page 23 20 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 21 CONTINUED FROM PAGE 20

Introducing The Newly Re-Vamped National Coalition Website! • Register for the National Coalition’s annual convention and trade show online. • Download convention brochures and forms. • Find information about the Vendor Affiliate Program and download a form to join. • Visit the Legislative Affairs section for information on pending and enacted legislation that may affect your business. • Get the latest Retail and Legislative News from the News Center. • Read the latest Avanti columns from National Coalition officers. • Download a pdf version of Avanti Magazine. • Find contact information for local FOAs. • Find dates for upcoming National www. ncas ef.c om Coalition Board meetings or FOA The National Coalition’s website, events nationwide. www.ncasef.com, has undergone a complete makeover and now features More features will be implemented a myriad of exciting new features that provide essential information for in the coming months. 7-Eleven franchisees and the vendor community alike.

than 200 million shoppers monthly. er and Punctuate, in addition to its Man - Based on an analysis of various Nielsen aged Services offering to Digital Display ratings data, the GRPU (gross rating point Networks, which is providing turnkey Seven & I Projects Profit Drop units) of 7-Eleven TV will make it the services, as well as managing content Following Earthquake fourth largest broadcast TV network production and advertising sales for 7- SEI parent company Seven & i Hold - when fully deployed. Eleven TV. To maximize viewing, each ings announced that it expects its earn - The company is working with Harris store features two strategically placed ings to drop 22 percent this fiscal year as Corporation and Digital Display Net - LCD high-definition TV monitors and Japan’s natural disasters and nuclear cri - works, Inc. on the deployment under a directional audio to attract consumers, sis hinder consumer spending and boost 10-year agreement valued at $75 million. and display promotions and products company costs, reported the Wall Street Harris is providing its Digital Out-of- that shoppers can take advantage of in- Journal. The company said it also expects

Home hardware and software, InfoCast - store. continued on page 25

22 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 23 CONTINUED FROM PAGE 23

revenue to fall 10 percent this fiscal year, and further anticipates to record a spe - cial loss of ¥26 billion to reflect costs for SEI Buys Wilson Farms NY Stores earthquake-damaged stores. Approxi - 7-Eleven, Inc. announced that it has signed an agreement to purchase Wilson Farms, a mately 600 of Seven & I’s 13,200 Japan 7- Buffalo-based convenience store chain with 188 outlets in New York state, with an expected Eleven stores closed after the earthquake, closing in the second quarter. Terms of the deal were not disclosed. The addition of many of which have since reopened. The Wilson Farms significantly increases 7-Eleven’s presence in the western New York company said 100 of its 170 York-Beni - area. Post closing, 7-Eleven will assume responsibility for all Wilson Farms maru grocery stores closed temporarily, locations and personnel from the WFI Group, which is led by Bruckmann, and five or six of the ten centers that pro - Rosser, Sherrill & Co., a private-equity firm, and the Nanula duce fast-food items for all the stores in Family, which together have managed the stores since 2005. the region were inundated by the tsuna - mi. Seven & I had previously reported earnings more than doubled for the fis - by the campaign, which ran until April 30, bers, Bernanke said the delay was neces - cal year ended in February 2011, and rev - will go to organizations in Japan provid - sary because the huge number of com - enue edged up 0.2 percent. ing rescue and recovery, safety, and re - ments submitted by retailers and banking building services. Besides industry players on the issue require more 7-Eleven's U.S. and Canada time to fully examine, as they provide im - 7-Eleven Launches operations, stores in Japan, portant information for assessing the ef - Global Campaign For Thailand, Taiwan, South fects of debit card swipe fee reform Korea, Mexico, Hong Kong, Japan Disaster Relief Malaysia, Philippines, Singa - The global chain of 7- pore, and Indonesia also par - Franchisees Visit Lawmakers Eleven launched an in-store ticipated in the global effort. collection canister and Additionally, 15 third-party On Swipe Fee Reform fundraising campaign in close bakery operations that As part of the larger three-month to 39,000 store locations world - make fresh donuts, bagels, movement to counteract proposed legisla - wide to assist organizations croissants and similar items tion to repeal or delay swipe fee reform, 7- providing relief for the victims for about 6,000 U.S. and Canadian 7- Eleven franchisees from across the of Japan’s devastating March 11 earth - Eleven stores pledged a con - country once again took time quake and tsunami, SEI announced in a tribution to a disaster-relief away from their businesses to released statement. The funds collected organization in Japan. Implementation go to Washington, D.C. and of debit card hold their representatives ac - swipe fee countable for the swipe fee re - Play The Name Game! Swipe Fee Reform form passed last year. reform has 7-Eleven franchisees from Look carefully at each page in this issue. Delayed Until July been delayed across Maryland and Virginia Somewhere in this magazine a line is hidden New rules governing debit until July 21. met with Senators, Congress - that contains the words $Name Game Win - card swipe fees—originally men and their staff on March ner + person’s name + city$. If you find this slated to be revealed by the 30 to ask them to protect and line, and if it contains your name, call AVAN - Federal Reserve on April 21—have been implement the critical swipe fee reforms TI’s Offices at 215 750-0178 before the next postponed until July. Federal Reserve passed by Congress and signed into law by magazine is published, and win this issue’s chairman Ben Bernanke announced the President Obama last year. The day prior total. Uncollected money is automatically delay on March 29 in letters to the leaders to their visit, Senator Jon Tester (D-Mon - added to the next issue’s total. of the Senate Banking and House Finan - tana) introduced an amendment to a NCASEF Members only. This cial Services committees. Bernanke said small business bill that would delay swipe issue’s total: $100. the Fed will have the rules ready by July fee reform for two years—a measure that 21, the same day they are scheduled to be would cost small businesses $33 million

enacted. In the letters to committee mem - continued on page 26

24 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 25 CONTINUED FROM PAGE 25

Latest Tobacco Legislation News Below are the latest bills introduced in (from 30 percent per item). Would be effec - Connecticut $3.00 4 state legislatures that could have a profound tive July 1, 2011. Delaware $1.60 20 Florida $1.339 25 affect on tobacco retailers: • Texas—H 1810—Would increase the excise Georgia $0.37 47 • California—S 330—Would increase the ex - tax on cigarettes by 12 cents per pack (from Hawaii (b) $3.00 4 cise tax on cigarettes by $1.50 per pack (from $1.41 to $1.53 per pack). Would be effective Idaho $0.57 41 87 cents to $2.37 per pack). Would be effec - September 1, 2011. Illinois $0.98 31 tive immediately. • Texas—S 1052—Would increase the excise Indiana $0.995 30 • Florida—H 1207—Would place an NPM tax on cigarettes by $1.00 per pack (from Iowa $1.36 24 equity fee of 52 cents per pack on all ciga - $1.41 to $2.41 per pack). Would be effective Kansas $0.79 35 rettes manufactured by non-settling manu - September 1, 2011. Kentucky $0.60 39 Louisiana $0.36 48 facturers. Would be effective July 1, 2011. • Texas—H 2085—Would place an NPM eq - Maine $2.00 11 • Illinois—H 3265—Would ban the sale of uity fee of 43 cents per pack on all cigarettes Maryland $2.00 11 cigar wraps to minors and lists penalties for manufactured by non-settling manufacturers, Massachusetts $2.51 8 doing so. Would be effective upon becoming to be increased by 3 percent each year. Michigan $2.00 11 law. Would be effective September 1, 2011. Minnesota $2.46 9 Mississippi $0.68 36 • Texas—H 2602—Would increase the excise Missouri $0.17 50 tax on cigarettes by $1.05 per pack (from Legislation to increase tobacco Montana $1.70 17 excise taxes has been $1.41 to $2.46 per pack). Would be effective Nebraska $0.64 37 proposed in California, Sept. 1, 2011. Nevada $0.80 34 Massachusetts, and Texas. • Texas—H 2547—Defines little cigars and New Hampshire $1.78 16 would apply the same excise tax per thou - New Jersey $2.70 6 sand on little cigars as is imposed per thou - New Mexico $1.66 19 • Massachusetts—H 2358—Would provide sand on cigarettes. Would be effective New York $4.35 1 North Carolina $0.45 44 that no person under age 18 shall smoke, September 1, 2011. possess, or use any tobacco products; adds North Dakota $0.44 45 • Texas—H 2599—Defines chewing tobacco penalties of 20 hours of community service Ohio $1.25 26 for purposes of the excise tax imposed on ci - Oklahoma $1.03 29 and enrollment in a tobacco education pro - gars and other tobacco products. Would be Oregon $1.18 27 gram. No effective date given. effective September 1, 2011. Pennsylvania $1.60 20 • Massachusetts—S 1417—Would increase Rhode Island $3.46 2 • Utah—S 262—Passed. Signed by governor the excise tax on large cigars to 80 percent South Carolina $0.57 41 on March 22, 2011. Modifies the excise tax (from 30 percent). Would increase the excise South Dakota $1.53 22 on little cigars to the rate of a pack of ciga - tax on all smoking tobacco to 90 percent Tennessee $0.62 38 rettes (from 86 percent to $1.70 per pack). (from 30 percent). Would be effective July 1, Texas $1.41 23 Effective July 1, 2011. 2011. Utah $1.70 17 Vermont $2.24 10 • Massachusetts—S 888—Would provide Virginia $0.30 49 State Cigarette Excise Tax Rates that no person under age 18 shall possess a Washington $3.025 3 cigarette, chewing tobacco, snuff, or any As of January 1, 2011 (Dollars Per 20-Pack) West Virginia $0.55 43 other tobacco product not given to that per - State Tax Rate Rank Wisconsin $2.52 7 son by a parent or guardian; adds penalties Alabama $0.425 46 Wyoming $0.60 39 of a fine between $10 and $25. No effective Alaska $2.00 11 D.C. $2.50 – date given. Arizona $2.00 11 (a) The federal excise tax of $1.0066 per pack and local Arkansas $1.15 28 taxes are not included. • Nevada—AB 165—Would increase the ex - California $0.87 32 (b) Hawaii’s cigarette excise tax will increase to $3.20 cise tax on moist snuff to 58 cents per ounce Colorado $0.84 33 on July 1, 2011 Source: Tax Foundation UIN 153544 UPC 28000 98884

26 AVANTI MARCH | APRIL 2011 CONTINUED FROM PAGE 26

per day and $1 billion per month, accord - • Business Processes—Jason Heffelfinger, ing to FZs for Fairness, the 7-Eleven proj - Rocky Mountain (Colorado and Utah); ect that organized the event. Chris Harkness, Patriot (Southern Vir - Bits&Pieces The project unites more than 3,000 7- ginia) A bill introduced in Congress to regulate and Eleven franchisees across the U.S. fighting • Distribution Systems—Cindy Richard - tax Internet gambling will also allow lot - for fair debit and credit card swipe fees. son, Lone Star (Texas); Dan Kaepernik, tery tickets to be purchased online , accord - North Atlantic (New York, Massachu - ing to NACS, who warns that HR 1174 will setts, and Connecticut) • Business Infrastructure—Norm Hower, take money away from retailers that depend NBLC Updates Committee Co-Chairs North Cal/ Nevada (Northern); Ben on lottery ticket sales for a significant portion Tison, North Florida The National Business Leadership of their revenues and to generate substantial • Servant Leadership/Teamwork—Tom Council recently released an updated list of traffic. • New Hampshire lawmakers recently Lesser, Pacific Desert (San Diego area, its Zone Leader committee co-chair assign - Arizona, Southern Nevada); Greg voted to lower the state’s cigarette tax by ments. The new assignments are as follows: Franks, PennJersey (Pennsylvania and a dime , from $1.78 a pack to $1.68, the • Guest Experience—Tim Donegan, New Jersey) Union Leader reported. State legislators be - Team Canada; Larry Hughes, Pacific lieve the tax cut will trigger more sales of ciga - Northwest (Washington and Oregon) rettes, convenience store items, liquor and • Retailer Initiative—Dan Soper, Greater C-Store Sales Experience lottery tickets, and attract more out-of-state vis - LA; Tom Brennan, Liberty (Northern Virginia, Maryland and Delaware) Strong Growth In 2010 itors. • Nutrition bar company Forward • Food Service—Kate Keillor, South Flori - Convenience store in-store sales grew Foods, LLC , the maker of the Detour bar, has da Coast; Brian Trout, Heartland (Illi - 4.4 percent in 2010, reaching a record continued on page 30 nois, Michigan and Missouri) continued on page 30

Andretti Indy 500 Car To Sport National Coalition Logo Thanks to Dr Pepper Snapple Hire Heroes to its network of corporate by the opening day of Indy 500 practice on Group, the National Coalition, partners and their respective human re - May 14. The Indy 500 race will take place 7-Eleven and Hire Heroes USA source departments, as well as actively on May 29. Driver Mike Conway recently logos will be featured on An - support Hire Heroes and fundraising ef - won the Toyota Grand dretti Autosport driver Mike forts through PR, social media, at-track in - Prix on April 17 at Conway’s racecar and uni - tegration, and other promotional channels. Long Beach, California. form during the IndyCar Rac - The National Coalition, 7-Eleven and ing events in May leading up to Hire Heroes logos will appear on the the 100th Anniversary Indianapolis 500. Andretti Autosport No. 27 The racecar and uniform logos are part of racecar and driver suit the Dr Pepper Snapple, National Coalition and 7-Eleven initiative to help promote the Hire Heroes USA fundraising campaign running in 7-Eleven stores nation - wide during the month of May. As part of the program, Andretti The National Coalition, Autosport will actively promote 7-Eleven and Hire Heroes logos on the Dr Pepper 7UP Andretti Autosport Indy car.

AVANTI MARCH | APRIL 2011 29 $190.4 billion, according to figures re - • Establishing dedicated merchandise leased by NACS. Combined with $328.7 space planning, strategic pricing, and billion in motor fuels sales, total c-store cost-of-good analysis capabilities Bits&Pieces.. .continued from page 29 sales in 2010 were $575.6 billion, or one The company expects these organiza - teamed up with Body Temple, Europe’s leading out of every 25 dollars of the overall tional changes to be implemented over 60 sports and nutrition distributor, to sell protein $14.624 trillion U.S. gross domestic prod - days, but said some of the changes may be bars in more than 25 European countries. • uct. The 4.4 percent growth rate of c-store phased in over a longer period of time. in-store sales surpassed the growth rates of Subway has officially taken the top spot other competing channels, including from McDonald’s as the world’s largest restau - warehouse stores/clubs (4.0 percent), New Survey Shines Light rant chain in terms of units, reported the Wall restaurants (3.4 percent), drug stores (2.4 On C-Store Tobacco Sales Street Journal . At the end of 2010, Subway percent) and grocery stores (2.3 per - Cigarettes account for 80 percent of had 33,749 restaurants worldwide , com - cent), based on U.S. Department of Com - tobacco revenue in c-stores and 51 per - pared to McDonald’s 32,737. • Seven-Eleven merce numbers. cent in tobacco shops, according to a new Japan announced plans to switch its in-store According to NACS, nearly three-quar - survey by the National Association of To - ters of in-store sales are from the top five and signboard lights to power-saving, light- bacco Outlets (NATO) and CSP maga - categories: Cigarettes (35.8 percent); emitting diode lighting at 5,000 locations. zine. The study, sponsored by Swedish Packaged Beverages (14.2 percent); The goal of the program—which also includes Match, also reveals that Foodservice (12.9 percent); the installation of solar panels at 1,000 tobacco shops generally Beer (8.3 percent); and carry 238 SKUs of ciga - stores—is to cut electricity consumption by Other Tobacco Products rettes, while c-stores 25 percent from July through September. • (4.0 percent). carry 182. In terms of ci - PepsiCo has unveiled a completely plant-based, NACS further revealed gars, c-stores generate 7 per - that more than two-thirds of Cigarettes 100 percent biodegradable bottle for its sodas, cent of their tobacco revenue in-store gross margin dollars account for 80 from the category carrying an continued on page 32 are from the top five cate - average of 59 SKUs, while to - gories: Foodservice (21.9 per - percent of to - bacco shops make 23 percent cent); Cigarettes (18.4 bacco revenue with 430 SKUs. More tobacco percent); Packaged beverages insight provided by the survey National Coalition (17.7 percent); Beer (5.4 per - in c-stores. includes: pipe tobacco ac - cent); and Candy (4.8 per - Offices In Tucson counts for 1 percent of c-store cent). tobacco revenues (average number of National Coalition offices are located SKUs—4) and 7 percent for tobacco in Tucson, Arizona. All queries and SEI Undergoes Realignment shops (average number of SKUs—31 stan - requests for information should be dard and 14 hookah); moist smokeless to - directed to the address below: SEI is in the midst of a system-wide re - bacco accounts for 9 percent of tobacco National Coalition of organization designed to streamline oper - revenues in c-stores (37 SKUs) and 6 per - Associations of 7-Eleven Franchisees ations, provide better service, and cent in tobacco shops (47 SKUs). 3561 East Sunrise Drive, Suite 113 accelerate growth, the company informed Tucson, AZ 85718 franchisees. The realignment involves: Office 520-577-8711 • Restructuring the eight regional Divi - The Philip Morris Fax 520-577-4688 sions into 14 Zones E-mail: [email protected] • Moving field merchandising to the Store MLP Controversy Support Center in Dallas Philip Morris USA recently introduced • Combining Franchise, Real Estate, and a new promotional contract that has Construction into one function—Devel - caused a ruckus among tobacco retailers opment because it sets price ceilings on what oper - • Centralizing administrative, financial ators could charge, reported CSP Daily planning, and HR processing continued on page 32

30 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 31 CONTINUED FROM PAGE 30 Bits&Pieces.. .continued from page 30 reported All Headline News. The “green bottle” is made from switch grass, pine bark and corn husks , and will be available next year. • Time To Focus On Customer Service In order to give its residents a break during the KEVIN NIJJAR current economic slump, the West Virginia VICE PRESIDENT, FOA GREATER LA Legislature recently approved lowering the With nearly 5,000 franchised stores in the U.S. that gener - state’s food tax by one percent effective ate about $12 billion in annual sales, 7-Eleven is the leader in January 1, 2012, the Charleston Daily Mail the convenience store industry. However, the c-store industry is reported. • The governor of Colorado signed a presently in a flux, with competition coming not only from other c-store chains, but also from big box retailers like Wal - law that bans the sale of electronic ciga - mart and Target building small-format stores, value supermar - rettes in the state to minors, reported Busi - kets like Safeway growing in popularity with cash-strapped nessWeek . The new law characterizes consumers, and dollar stores and pharmacy chains expanding e-cigarettes as a tobacco product. • Jack Link’s their grocery offerings. Beef Jerky will serve as presenting sponsor of Additionally, there are now three trends defining the business: cigarettes are in perma - the 2011 New Belgium Brewing Urban As - nent decline, fresh food on the go is increasing, and our customers are looking for value. In sault Ride . Jack Link’s brand will be heavily order to remain competitive in this retail environment, our objective should be to give our integrated into each of the 10 Urban Assault customers more value, as well as more compelling reasons to visit our stores more often. Ride events across the country. • Health Cana - We can begin by keeping our stores well stocked 24 hours a day, and by maintaining a da has released larger and more graphic clean and inviting shopping environment. Our well-groomed sales associates should wel - health warnings for cigarette packages as come our customers with a smile and assist them with their shopping needs. We should part of draft regulations that would require la - offer our customers convenience and fast, friendly service. We should also train our staff to bels and warnings to be included on the inside thank our customers and invite them back to our stores when they leave. We must realize and outside of packs, reported the Montreal that gone are the days when a simple “Hello” and “Thank you” were enough to run a Gazette . The new images will cover 75 successful business. Today, we must make hospitality a part of our business. percent of the outside of cigarette packs , Our loyal customer base is aging, and although we are very grateful for their busi - and health messages will appear in the inside ness, we should begin focusing on the repeat customers in the younger set. To accomplish in full color. • Burger King and its franchisees this, we need to put emphasis on our sales associates first, because they are the face of have agreed to put an end to litigation over our business. We need to hire energetic, polite, and self-motivated people, and we should the company’s right to dictate value menu pric - take into consideration our store profile when we hire our staff. Our customers feel more ing, reported the Miami Herald . As a condi - comfortable when our sales associates are knowledgeable and there is no language bar - tion of settling the litigation, Burger King rier between them. It’s also time to train and coach our sales associates on how to plus- agreed to a new policy that allows for sell to our customers. In my opinion, empowering store staff is key for sales growth. more input from franchisees in deciding When we empower our staff, they take pride and ownership in our business. what items will be placed on the value Customers have many different choices before they walk into our stores. It should be menu and at what pricing. • Walgreen Co. re - our goal to provide them with a superb shopping experience in a clean and well-mer - ported a 17.6 percent increase in diluted earn - chandised store. As fresh and hot foods are growing popular with consumers, we should ings per share for the second quarter of fiscal also concentrate on making our stores a food service destination. Our sanden cases should be well-stocked with fresh sandwiches and appealing fresh fruit snacks for a 2011. The company also said second quarter healthier option. Hot food grills should be appealing to our customers with fresh products sales increased 8.9 percent to a record $18.5 served at the right temperature. billion. • Kwik Trip has installed free electric We must send a strong message to our customers that the old 7-Eleven standard is car charging stations at 70 of it locations changing, and we can fill most of their shopping needs in a clean, friendly environment. in Wisconsin, Iowa and Minnesota , report - continued on page 34

32 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 33 CONTINUED FROM PAGE 32 Bits&Pieces.. .continued from page 32 News. The company’s Marlboro Leader - were violated and the kiosks had to be re - ed 300mpg.org. The 120 volt-chargers provide ship Price (MLP) Option also provides in - moved. about four miles of electric ‘fuel’ for each hour centives to remedy potential margin spent charging, but the company said it plans losses, but many retailers interviewed by to upgrade to more powerful outlets in the fu - the c-store industry publication remained Donation Fund Created For ture. • Online sales of cigarettes have critical of the contract. 7-Eleven fran - Family Of Las Vegas Franchisee chisees across the country have also voiced dropped sharply as a result of a 2005 volun - The Southern Nevada/Las Vegas FOA opposition to the terms. tary federal ban on the use of credit cards to has created a donation fund for the fami - "We feel philosophically when a sup - purchase cigarettes online and a ly of franchisee Amanpreet Singh Man - ban on com - plier tries to dictate how much you der, who was shot and killed on March mercial shipping of online cigarette purchas - can sell a product for, it's inherent - 30 during a robbery attempt outside es, reported U.S. News & World Report . The ly not a good policy," Steve a Wells Fargo bank in Las Vegas. Loehr, vice president of opera - bans were implemented to address the wide - He is survived by his wife and two tions support at Kwik Trip, told spread nonpayment of cigarette taxes with on - sons, four years old and two CSP Daily News. “It's not acceptable to line purchases. • Walmart has signed a years old. us. We're not going to go with definitive agreement to acquire Kosmix , a In a message to fran - the program," he added. chisees, Southern Mountain View, California-based company that Officials of Philip Morris The city Nevada/Las Vegas has developed a social media technology plat - parent company Altria ex - of Alexan - FOA Jay Singh said form that filters and organizes content in social plained that the MLP option dria, Virginia that a benevolent ac - is available to retailers who networks to connect people with real-time infor - count has been set up have level three, four and five forced stores mation. • Wrigley recently launched a first- to help support Mr. Mander’s contracts with the cigarette there to remove out - ever custom-packaging program, called children. FOAs and fran - manufacturer, and retailers , that allows consumers to create and door RedBox kiosks. chisees interested in making a MyExtra can opt not to sign up for the donation can write a check purchase personalized Extra sugar-free gum program. The company further ex - payable to "The Mander Family Donation packs featuring their photos and designs . • plained that the MLP option was devel - Fund," account number 153754823174. oped to address concerns from Doughnut maker Krispy Kreme has posted its Checks can be mailed to: consumers affected by the country’s eco - first profitable year since 2004—net income Mander Family Donation Fund nomic slump, and it rewards retailers that for the fiscal year ended January 30, 2011 was 5544 Grand Rapids St. participate with incentives that include $7.6 million, compared to a loss of $200,000 N. Las Vegas, NV-89031-8100 off-invoice pricing, merchandising, off-in - in fiscal 2010. • Procter & Gamble is selling voice allowances, special price promo - its Pringles potato chips business to Dia - tions and product promotions. PepsiCo Dream Machine mond Foods Inc for $1.5 billion in stock, creat - Deployed At Prima 7-Elevens ing a new snack foods giant and freeing the VA City Removes 7-Eleven 7-Eleven licensee Prima Marketing consumer products company to focus on cos - RedBox Machines LLC has partnered with PepsiCo to make metics and healthcare products, reported Dream Machine recycling kiosks available Alexandria, Virginia officials recently Reuters. • The number of drive-offs at gaso - at all 13 Charleston, West Virginia Prima required the removal of RedBox DVD line stations appears to be increasing nation - Marketing 7-Eleven locations, reported rental kiosks stationed outside 7-Eleven wide as the price of fuel continues to climb, CSP Daily News. The Dream Machine stores in the city, reported DelRay- reported KARE.com. Some gasoline retailers are kiosks are computerized receptacles that Patch.com. The city’s deputy planning di - include a personal reward system—pow - experiencing up to three drive-offs a day. • Mc - rector told the website the machines were ered by Greenopolis LLC—that allows Donald’s is launching new McSpicy products in operating in violation of existing special consumers to earn points for every bottle as part of its plan to use permits, which stipulate that all oper - India develop innovative or can they recycle in the kiosk. Those ations at 7-Eleven stores must take place products for the Indian marketplace , report - points can then be redeemed for local dis - inside. By running a chord outside to ed NACS Online. McDonald’s latest India menu counts on entertainment, dining and trav - power a RedBox machine, the permits continued on page 42 continued on page 85 34 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 35 From the National Office H E A C K T G B T T E C A T E G O R Y K I N G A R E T A C I p les, Chairm By Br uc e Ma an National Coalition of Associations of 7-Eleven Fra nchisees

ooking back at the ciga - Every other category in the store units have continued to decline. rette category, one begins allows franchisees to merchandise the Value-priced cigarettes have become a L to realize how drastically it products our customers want and to bigger part of our business and will has changed over the last 10 control our inventory, product continue to grow. Our ability to years. Besides an eroding unit count mix, and selling price. We ask offer our customers value and diminishing profit margins, we all of our vendor partners to brands at the right price is have lost all control over a category participate in Retailer Ini - critical to stop the down - that system-wide represents 23 percent tiative, to bring innovative ward trend in unit sales. of our sales and a good percentage of merchandising and mar - How important ciga - our stores’ gross profit dollars. Price keting ideas to our stores, rettes are to our stores has increases, tax hikes and cigarette con - and to tailor programs to been widely debated over tracts that restrict the way we can do our customers’ needs—all of the years. How to replace lost business have left our stores at the which allows us to grow our sales cigarette unit sales has been an mercy of the government and a small and gross profits. even more difficult debate. To its handful of tobacco companies. We need to require the tobacco credit, SEI for the first time has rec - The new Altria contract, also companies to do the same. We need to ognized the problem and is working known as the Marlboro Leadership focus on category growth and stop giv - on a solution. However, the fact re - Price Option, goes beyond dic - ing the tobacco companies mains that six of the top ten market tating signing, merchan - complete control over basket purchases include cigarettes, dising and ordering “The our stores. The ciga - and cigarettes have and always will requirements, to now new Altria rette contract re - (for the foreseeable future) play an restricting the max - contract goes beyond quirements we important role in our stores’ prof - imum selling price dictating signing, are forced to ad - itability. Replacing lost cigarette sales stores are allowed merchandising and order - here to limit our and gross profit dollars will take time to charge for a sin - ing requirements, to now ability to provide and will not be easy. How dependent gle pack of Marl - restricting the maximum our custo-mers we are on cigarette income can be boro cigarettes. As selling price stores are with the products compared to our country’s depend - more tobacco manu - allowed to they want, but at a ence on foreign oil. There is much facturers adopt this price that allows us to debate on the issue, but no short- charge.” practice, our cigarette busi - make appropriate profit term solution. Increased profitability ness will change. The brands we for our stores. in the center of the store and our carry, how and when they are ordered, In today’s economy our customer fresh foods initiatives are beginning where they are merchandised, what has become more budget conscious continued on page 38 POP we are required to have in place, than ever, so it is imperative that we as and what price we sell them for will all storeowners have the ability to focus BRUCE MAPLES CAN BE REACHED AT 520.577.8711 or be controlled by a select few cigarette on the growth areas within the ciga - [email protected] companies. rette category. Our premium cigarette

36 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 37 From the National Office 3 7 P A G E R O M E D F T I N U C O N

to make a difference and can soften process. How it plays out in the end come for SEI, franchisees and our our dependence on cigarettes, but and what impact it will have on our cigarette vendor partners to come not eliminate it. stores will only be determined over together and work on a solution that How we react to the new time. As a retailer our goal puts the customer first. Each region, proposed changes in the “The is to be a destination for market and store needs to take a cigarette contracts has time has come the cigarette cus - hard look at what is right for individ - yet to be completely tomer. Letting the ual stores. Together we need to find for SEI, franchisees determined and will customer and not a solution that ultimately grows the and our cigarette vendor take time. What im - the cigarette com - category. Being in stock with the pact on the catego - partners to come togeth - panies decide our right products at the right price is ry these changes will er and work on a solu - product selection only part of the solution for long- have ultimately will be tion that puts the and price is true Re - term category growth. Our cus - determined by the cus - customer first.” tailer Initiative. Work - tomers have told us loud and clear tomer. What approach we ing together with our that what we are doing is not work - take to regaining control over the vendor partners is the only long- ing, so business as usual is not an op - category has already started. Fran - term viable solution. tion. It is time for all stakeholders to chisees and SEI together have taken a All stakeholders in this matter sit down together and start listening bold and painful first step in the have a lot on the line. The time has to our customers.

38 AVANTI MARCH | APRIL 2011 Business Pringles is the # Issues 1 Cannister Chip ! S A R I S E T I O N E N T P L A N U E S R E A L I G N M Y Q W I T H A N alea, Executive Vice Chairman M By Joe G National Coalition of Associations of 7-Eleven F ranchisees

e have recently been processed in a timely manner. ment the communication gap is going ully funded Pringles Pr notified that 7-Eleven is For many years franchisees have to grow even wider and we’re going to p./Oct f omotion! W et undergoing a dramatic recommended to SEI that any mail be further separated from having actu - our S for y reorganization—dubbed Proj - pertaining to a particular store al live conversations with our account - up ect E by the higher-ups at corpo - should be sent directly to that store, ing representatives. ock St rate—in order to streamline and not to the Dallas address On the merchandising side, operations and make the system to be forwarded to the the feeling in the franchise more efficient. As part of this project, franchisee later. This community is that consol - everything will eventually be run out could be very stressful idating all the buyers in of one central location—the corpo - for storeowners, espe - Dallas will limit opportu - rate headquarters in Dallas. In a way, cially if they have mail nities for new vendors to it makes a lot of sense to have all busi - that is time sensitive, like approach SEI. It appears ness conducted out of our main of - an unemployment claim. only those vendors within fice. However, franchisees have raised There have been times when the BT and CDC circle, as well as many questions during recent local stores received their unemployment our recommended vendors, will be FOA and National Coalition board paperwork after the fact and then able to have direct contact with SEI meetings about the accounting had the claims denied because in Dallas. One way to get around this and merchandising sides the deadline was not met. is for FOAs to aggressively reach out of this realignment. As the reorganization to local vendors, invite them to their “Given One of the ac - project begins, now board meetings, work with them to counting con - all the changes may be a good introduce their items and test them cerns involves coming with SEI’s reor - time to review th is in the FOA member stores, and t hen Super Stacks (unit UPC) If you need licenses, which ganization, it is even more process, because send the results to SEI in order to Original Sour Cream & Onion Cheddar Cheese Barbecue a Pringles are renewed important now that market I believe, as most give that vendor an opportunity to 6.42 OZ (182g) 6.38 OZ (181g) 6.38 OZ (181g) 6.38 OZ (181g) annually. The franchisees do, beco me a reco mmen ded ven dor. UIN 420042 UIN 420430 UIN 420638 UIN 421230 managers take an active role Gravity Feed licenses were that any mail per - This route has proven successful, but SLIN 300013 SLIN 300016 SLIN 300004 SLIN 300008 with local FOA groups, as the y Rack, call previously sent tain ing to an indi - it does take some effort. Cari Martin at to local market of - are going t o be our direct vidual store should Merchandising is our key and our 214-366-3101. fices, then passed link to corporat e.” be sent directly to that backbone, and we have always been on to franchisees. Now store, as ultimately the very fortunate to have regional ven - (12 per case) Grab and Go the licenses will be sent to franchisee is responsible. dors that supply us with products we lable Original Sour Cream & Onion Cheddar Cheese Barbecue Dallas, and franchisees fear they will Another accounting issue that has need. This opportunity needs to Avai 2.6 OZ (74g) 2.6 OZ (74g) 2.6 OZ (74g) 2.6 OZ (74g) UIN 117895 UIN 117937 UIN 118141 UIN 118117 be responsible for notifying the com - franchisees concerned is communica - h continued on page 42 throug SLIN 301706 SLIN 301538 SLIN 301534 SLIN 300116 pany when licenses are due. There is tion with the Accounting Department, cLane a feeling among storeowners that, which many believe will suffer. As it M since SEI headquarters is so far away, currently stands we have to file ac - JOE GALEA CAN BE REACHED AT 650.906.7936 or there needs to be a policy in place to counting cases online, and there’s a [email protected] ensure these licenses are being feeling that with the corporate realign -

AVANTI MARCH | APRIL 2011 41 Business Issues 4 1 P A G E R O M E D F Legal T I N U C O N exist, because geographically, every to corporate, and our questions and Issues C T O R . . . store is not set up the same, and concerns will be voiced to them so O N T R A continued from page 34 T C many are out of delivery areas for they can bring us back answers. My Bits&Pieces.. . E N O R FA N TA SY ? E N D E A L I T Y CDCs. FOA has invited our market manag - items include the McSpicy Chicken Burger, Mc - E P R N D I have always been adamant that er to board meetings, and it has Spicy Paneer Burger, McSpicy Chicken Wrap I By Arno ld J. Hauptman, Esq. National Coalition of Associa clear and open communica - worked out well. We have and McSpicy Paneer Wrap. • More stores are tions of 7-Eleven Franchise tion is essential to the been able to talk about offering the option of “paperless receipts” es success of our busi - our issues, and he has for environmentally conscious consumers “I believe—as ness. Given all the been able to come who don’t mind giving out their e-mail address - arely does a week go by thumb of your franchisor, who directs franchisees? Undoubtedly, the pur - most franchisees do— changes coming back to us with an - es, reported the Boston Herald . Major retailers that I do not hear from a your every step in the management of pose is to avoid liability for the acts of with SEI’s reor - that any mail pertaining swers. I believe like R franchisee, “Can they do your business—from what you buy, its franchisees, while at the same time Apple, Anthropologie, Urban Outfit - ganization, comm - to an individual store this needs to con - ters and Nordstrom already give cus - that? I’m an independent who you buy from, to what you sell, directly or indirectly playing a major contractor!” and how you maintain your store? As role in every aspect of the franchisee’s nication is even should be sent directly to tinue with all our tomers the option to go digital , while the every franchisor, SEI has a simple goal: business. more important, that store, as ultimately FOAs, because Container Store, Best Buy and Whole Foods are Typically the answer is a resound - quality and consistency of now that market the franchisee is without active com - participating in pilot programs. • Minnesota’s ing yes, they can, despite the legal For SEI, this legal relationship products and services that managers are taking responsible.” munica- tion, it’s state House is presently considering a so-called definition of an “independent con - usually works well in a court an active role with local going to be tough for most often trump the “Cheeseburger Bill,” which would give the tractor” and the language in para - of law. Generally, if there FOA groups. Market Man - SEI and franchisees to get on graph 2 of your store agreement, right of a franchisee to is a slip and fall in your continued on page 51 agers are going to be our direct link the same page moving forward. n which states, in part: “You agree: a) to exercise his or her own store or a customer is hold yourself out to the public as an discretion in the opera - slugged by one of your independent contractor; b) to con - tion of a franchised busi - clerks, SEI will be named trol the manner and means of the op - ness, for better or worse. along with the franchisee eration of your Store; and c) to The courts of every state as a defendant. Invariably, SEI exercise complete control over and have consistently upheld a franchisor’s will arrive at the courthouse, armed responsibility for all labor relations right to promote a uniform method of with what is known by lawyer-types as a and the conduct of your agents and operating a franchised business be - motion for summary judgment. This employees.” cause that is the very definition motion asks that the lawsuit be dis - of a franchise. missed against SEI because you are an Independent Con - “As tractor status has As stated in para - independent contractor and, more - every franchisor, over, SEI has nothing to do with the been forever de - SEI has a simple goal: graph 1 of your store operation of your business and there - fined as a rela - quality and consistency agreement: “You fore has no liability to a person injured tionship in which of products and services recognize that a in your store. the contractor is that most often trump the uniform presenta - hired or contract - right of a franchisee to tion of a high qual - This tactic by SEI generally works ed to perform a exercise his or her own ity 7-Eleven image well and it is usually released from any task that can be discretion in the opera - is critical to the cus - liability. But not always. This past June, performed in any tion of a franchised tomer’s perception of a customer slipped and fell inside a manner the contractor business.” the 7-Eleven System, and Queens, New York, 7-Eleven store be - deems appropriate. The that you agree to contribute cause Slurpee was allegedly leaking on contractor’s obligation is to timely de - to that perception by operating your the floor. There was also a question of liver the final product or service with - store in compliance with this Agree - a mat placed over a cracked tile, but out interference by anyone. In our ment and the 7-Eleven System.” essentially SEI was sued along with the case, the ultimate job is to maximize So what’s in it for SEI or any other continued on page 44 sales and profits. franchise system that creates, or at So far, so good. But if that is the least attempts to create, an independ - ARNOLD J. HAUPTMAN case, why are you under the heavy ent contractor relationship with its CAN BE REACHED AT 516.541.7200

42 AVANTI JANUARY/FEBRUARY 2011 AVANTI MARCH | APRIL 2011 43 Legal Issues 4 3 P A G E R O M E D F T I N U C O N

franchisee for personal injury, and which gives SEI the right to enter “Undoubtedly, prompting SEI to make the motion the store to conduct inspections. the purpose is to avoid declaring the franchisee to be an in - Based upon the above language, dependent contractor and therefore the court refused to let SEI off the liability for the acts of its solely responsible for any monetary hook at that phase of the lawsuit and franchisees, while at the same damages to the customer. left the question of SEI’s liability to be time directly or indirectly play - The motion was denied, an unusu - determined by a judge or jury. It held: ing a major role in every as - al decision. In refusing to dismiss the lawsuit against SEI, the court relied “Whether 7-Eleven maintained pect of the franchisee’s upon that part of paragraph 8, which the right to direct and control the business.” gives SEI the right, at its option, to re - manner and degree to which its move or replace any of the 7-Eleven franchisees could respond to the equipment which it leases to the fran - How ironic that Slurpee machines oozing dis - chisee, or add new equipment and to the very language in the agreement charge, and the use of the mat replace certain equipment if dam - that SEI heavy-handedly uses to threat - aged. The court went on to cite other which covered the broken floor en material breaches if so much as a contract provisions that precludes the over which the mat was placed small display rack is placed in the store franchisee from adding or discontinu - are issues which the trier of the without consent, was used as a kick in its legal derriere in this case. ing the use of any store equipment fact must resolve.” without obtaining written consent, I call this poetic justice. n

continued on page 53

44 AVANTI MARCH | APRIL 2011 Gross Profit Dollars And Percentage Jatinder Singh VICE CHAIRMAN, NATIONAL COALITION

Gross profit dollars and total gross to SEI. And lately, gaming revenues have taken profit percent (GP%) of merchandise sales a big hit due to new anti-smoking laws and the VICE play a very significant role from the moment bad economy. we first franchise a store. The franchise fee, for GP dollars and percentage have taken a dip CHAIR S’ one, is based on total GP dollars, using dif - of 2 to 4 percent in many parts of the ferent percentages for different country. I had a chance to talk to many brackets of gross profit dollars. FOA presidents about this, and the FORUM The day-to-day operation of the reasons for it vary from one part of store and product assortment the country to the other, but one are also based on these two im - common cause seems to be our cost portant factors. It is a hard task of goods. Cost of goods is negotiated to maintain a proper balance of solely by SEI and franchisees have to product mix based on different lev - accept those terms and conditions. The els of GP% for the same type of product franchise agreement clearly states in 15 (g) manufactured by different companies under Vendor Requirements: different brand names, while also keeping in 1. You agree to purchase your inventory and view what our guests want. An average store has other products and services only from Bona to deal with different categories with different Fide Suppliers. Except for shares in pub - brands and variable gross profit percentages. licly traded companies, you agree not “GP Stores in certain parts of the country enjoy to have or maintain any ownership dollars and a comfortable gross profit margin ranging or voting interest from which your GP% have dipped from 36 to 42 percent, based on their product store purchases inventory, unless 2 to 4 percent in many mix and SRPs versus the variety of products we otherwise consent in writing. parts of the country, and and prices offered by their competitors. 7- 2. You agree to at all times during the one common cause Elevens in other parts of the country, however, the term to purchase at least eighty seems to be our cost are not as fortunate to have the same margin five percent (85 percent) of your total of goods.” due to the merchandising strategy adopted by purchases and, separately, (85 percent) of their competition. your cigarette purchases, both computed For instance, in my hometown of Hender - monthly at cost, from recommended vendors in son, Nevada, just outside of Las Vegas, some compliance with the Recommended Vendor stores are lucky if they have 34 percent GP. Purchase Requirement, which is further defined This is because two main competitors and in Exhibit E. other small chains have designed their GP Section 15 (J) of the agreement is more in - strategy on discount pricing and make up their teresting. Here are a few selective clauses (Our

lost GP dollars from gaming revenues, the continued on page 49 whole of which they get to keep. 7-Eleven fran - chisees have to split their gaming revenues JATINDER SINGH CAN BE REACHED AT with slot route operators and space rent paid 702-249-3001 CELL OR jksingh 2003@ yahoo.com

46 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 47 Gross Profit Dollars And Percentage continued from page 47 Vendor Negotiating Practices and Treatment of our stores. Even though all these best practices, Discounts and Allowances): new programs, the 85 percent purchase re - 1. In negotiating our contracts with recom - quirement, and proper SRPs are being fol - mended vendors and manufacturers (in either lowed by the majority of franchisees, gross case “vendor”) for products and services sold in profit dollars and percentage are still declining. 7-Eleven stores, we will take the following steps: This is becoming a serious issue for a significant (i) We agree to make a commercially rea - number of stores across the country. sonable effort to obtain the lowest cost for prod - During the month of February 2011, due to ucts and services from such vendor to the untimely reporting of proper docu - 7-Eleven stores on a Market basket ments by at least 12 vendors, bill - VICE basis by identifying all available “Even back allowances were not discounts and other opportu - though best prac - reflected properly in store CHAIR S’ nities for price adjustments. tices, new programs, the financials. This resulted (iii) If cooperative ad - in a steep decrease in 85 percent purchase vertising allowances are gross profit dollars. In FORUM available from the vendor requirement, and proper SRPs my area alone, 100 and the vendor advises us are being followed by the stores out of 160 went that it will not lower the majority of franchisees, gross below equity, and they cost of its products and serv - profit dollars and now have to come up ices to 7-Eleven stores in lieu percentage are still with money. of providing such cooperative As SEI has sole control advertising allowance, then we will declining.” over negotiating cost of goods accept and use such cooperative al - and other related allowances lowances as designated by the vendor. through the majority of our recommended Practices and procedures to obtain lower vendors, it becomes their sole responsibility to cost of goods and allowances are controlled by provide us a proper GP margin and percent - SEI, as well as national footprint and different age, at least enough to keep stores afloat schematics to have the proper product mix in throughout the year. n Tracking Money Order Payments Roger St. George VICE CHAIRMAN, NATIONAL COALITION Almost six months ago, SEI instituted longer process invoices. Vendors who desired a policy that drastically altered the payment to continue delivering to 7-Eleven stores had method to vendors and affected every fran - to submit the invoices in an electronic format chise store. This policy came about when the utilizing Electronic Data Interchange (EDI) Accounting Department made the strategic or via a third party processor, Transcepta. 7- decision to reduce its number of employees as continued on page 52 a cost cutting measure. To accomplish this downsizing, franchisees ROGER ST. GEORGE CAN BE REACHED AT and vendors were notified that SEI would no 360-500-1248 OR [email protected]

AVANTI MARCH | APRIL 2011 49 Tracking Money Order Payments recommended vendors who meet SEI’s money order, and requires to be paid or more. If the franchisee printed a questing a “Fraud Watch” be placed continued from page 49 new paradigm to receive payment: again. If a check has been issued, the money order in the store, a $15 fee is of the missing money order. She will Bits&Pieces.. .continued from page 42 Eleven suppliers who were unwilling, • Franchisees can pay them with cash franchisee must follow banking pro - required to stop payment and to re - need the six-digit agent number food industry immunity from lawsuits from peo - ceive a replacement money printed on the money order, the or even unable, to do so could no from the daily deposit. tocol to stop payment on a check, ple who eat too much unhealthy food and get • Franchisees can write their own many times resulting in a fee of $20 order. Additionally, it usu - serial number, and the dol - longer receive payment from SEI. fat, reported the Pioneer Press . • Japa n’s con - check and reimburse themselves ally takes weeks to re - lar amount. The fran - The Accounting Department went so venience store industry experienced a far as to declare suppliers who did from the daily deposit. ceive a new money chisee will then be given same-store sales increase of 5.1 percent in not comply would be changed from • Franchisees can print a money order. a case number. January compared to the prior year, reaching recommended status to non-recom - order. “The three However, there is a Next, the franchisee $7.27 billion US, reported People’s Daily On - mended status. All three methods require payment methods now little known proce - must print a replace - line . Additionally, customer count rose 0.7 per - Vendors were subsequently told to storeowners to spend more available to franchisees for dure to trace a money ment money order that cent to top one billion people. • Dunkin’ Donuts contact franchisees for payment, and time preparing cash reports in non-recommended vendors re - order, stop payment and can be given to the ven - get a replacement at no cost dor. This will result in a cash recently announced the opening of its 3,000th franchisees were given three options order to properly extend the quire storeowners to spend more to use to pay these “uncooperative” retail and cost of every single to the store. Since the franchisee is shortage on that day’s cash report. restaurant outside the United States. The loca - vendors. In essence, storeowners were item on an invoice, and enter time preparing cash reports to both the seller and purchaser of the Third, the franchisee needs to tion, a new Dunkin’ Donuts restaurant in Shang - forced to negotiate their own terms of the information into the In- properly extend the retail and cost money order, there is an alternative call SEI Accounting Customer Serv - hai, China, is the company’s 71st restaurant in payment with their suppliers. It Store Processor (ISP). of every single item on an in - to the standard process our cus - ice and speak with the 7-Eleven rep - Greater China. • Walgreens said it is working seemed SEI had distanced itself from It may come as no surprise voice, and enter the informa - tomers must follow. resentative. Explain the issue and with NRG Energy to install high-powered, The first step is to call Western give the case number received from its contractual role of establishing the that even the best-laid plans often tion into the In Store rapid-charging, electronic-vehicle eVgosm value of a store’s daily book inventory. go awry. For instance, there are Union at 720-332-4104 and speak Western Union. The franchisee will Freedom Stations at 18 of its pharmacy loca - The three payment methods now times when the vendor does not re - Processor.” with Mona. This is her direct phone be told the lost money order will be continued on page 56 available to franchisees for their non- ceive—or even loses—the check or number. Tell her that you are re - continued on page 53

continued on page 55

50 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 51 Tracking Money Order Payments continued from page 51 cancelled and its value processed as a cash ad - icon. The ad - “There justment for the day the original money order justment is a little known was printed. If the original purchase date was should be procedure to trace a in a previous month, the cash adjustment will completed money order, stop payment be applied to the first day of the current in three and get a replacement at no month. This cash correction may be tracked business cost to the store. The first on the ISP via the “Cash Report Corrections” days. n step is to call Western Union….” VICE FM Billing Issues CHAIR S’ FORUM Jivtesh Gill VICE CHAIRMAN, NATIONAL COALITION Facilities and maintenance are an impor - curve at 7-Eleven. Our stores employ a lot of tant function of our business, because equip - equipment, and perhaps some service tech - ment is directly related to sales. We need to nicians were not prepared for all of the dif - have all of our revenue-generating equip - ferent kinds of equipment we use. ment properly running 24 hours a day. In Today, FM has come up to the recent past we’ve had challenges with speed, and response facilities and maintenance—like keeping times—as well as the the equipment up, lackluster repair re - uptime of our sponse times, and problems with the equipment—have im - maintenance contractors (skill levels proved. Occasionally and procurement of parts, particularly). we still have challenges After the last franchisee survey, when we with the contractors realized facilities and maintenance prob - not having parts lems were a system-wide issue, we began to with them, but I “Late - focus on the fix, and we’ve made some re - do believe that FM is working cent strides to improve. hard to have all commonly ly, franchisees Years ago, the cost of maintenance was needed equipment parts kept have had issues with not an issue. Competition in our industry in stock. However, maintenance FM on invoicing, coding was not as intense, the economy was strong is like a garden that needs con - of work performed, and and customer counts were higher. In the cur - stant tending, and lately fran - rent business climate, every aspect of run - chisees have had issues with FM the process for ning the store is being scrutinized for on invoicing, coding of work per - getting credits.” updating and cost savings. About 18 months formed, and the process by which we or so ago, when SEI decided to have a new can get credit for charges in dispute, es - national company, Facility Maintenance pecially franchisees being billed for mainte - (FM), handle the upkeep of our stores, re - nance calls as either non-contract or sponse levels went down and franchisees de - continued on page 56 veloped a lot of issues with service and procedures. To be fair, even for a national Jivtesh Gill can be reached a t company like FM, there is a large learning 209-481-7445 or [email protected]

AVANTI MARCH | APRIL 2011 53

FM Billing Issues continued from page 53 nuisance calls. have problems fighting it because When an FM technician per - the clerk signed off on the job. Bits&Pieces.. .continued from page 51 forms maintenance in a store and The last thing franchisees want to tions across the Dallas/Fort Worth Metroplex. • the franchisee is not present, store do is take valuable time away from The Florida Senate has passed a bill that would associates busy or otherwise occu - customers and other activities of block municipalities from creating laws banning pied with customers often sign off running a store to retrieve mainte - toys in fast-food restaurants’ children’s meals , on invoices without knowledge of nance call credits. It seems like FM the reported. • The FDA said it what work was done, parts ordered, has realized the issue and has made Orlando Sentinel or the time involved in fixing the a commitment to thoroughly review will regulate e-cigarettes as tobacco products and equipment. The technician any invoice that is getting not as drug delivery devices, as it initially planned. makes notes on the work uploaded to franchisee The agency’s announcement came after the U.S. order, and automatic “FM financials. FM offi - Court of Appeals for the D.C. Circuit ruled that e- coding at FM takes has instituted a cials told us they cigarettes “are not drugs/devices unless they over and ends up call checking system have instituted a are marketed for therapeutic purposes.” • classifying the that involves four layers call checking sys - Credit card swipe fees are coming under scruti - work as a nuisance of accounting people to tem that involves ny in France. The country’s Finance Minister has call. The fran - review coding and ensure four layers of asked lawmakers to look into the fees, and is seek - chisee finds out that franchisees are people in their ac - ing ways to improve the transparency of those fees, after the fact that his being billed counting depart - identify when the fees are unusually high , and in - or her open account ment to review the correctly.” crease competition in an effort to lower the fees, re - has been billed for the coding and ensure that ported the Wall Street Journal . • Pharmacy chain call. franchisees are being billed On April 25, National Coalition correctly. Since this new procedure CVS recently introduced its Just the Basics pri - officers met with SEI and FM man - has just been implemented, we will vate-label product line , which offers customers agers in Dallas in an effort to talk monitor the situation carefully to see household, baby, groceries and personal care prod - through these problems. We point - if it is effective. ucts. • More than 50 percent of smartphone ed out that when a maintenance We are cautiously optimistic owners use their phones for help while shop - call is placed to FM and it is auto- about the future for improving ping on-site , according to a report from Chadwick coded, the human element we used maintenance because franchisees in Martin Bailey and iModerate Research Technologies. to have is missing, causing a lot of the past have been promised many • The worldwide smokeless-tobacco market has these auto-coded calls to be billed things from maintenance that been expanding at a rate of about 2-3 percent to franchisees. Even if the fran - haven’t materialized. We are anxious per year since 2003 while the cigarette market chisee disputes the charge and it is to see FM deliver on their promises has been contracting over the same period, accord - reversed, the credit for the invoice and free franchisees from the frus - ing to a report by Hong Kong-based World Street may not be credited back to the tration of pursuing maintenance Fundamentals. The report states smoking bans have franchisee’s open account for many charges. We want to focus on selling moved tobacco companies to market smokeless to - months. The storeowner also will Slurpees and hotdogs. n bacco as an alternative to cigarettes in situations where adult tobacco users cannot, or choose not to, Join The National Coalition Of smoke. • Starbucks plans to open 1,500 stores Associations Of 7-Eleven Franchisees in China by 2015 , by expanding its store presence to smaller markets outside the major cities, reported The strength of an independent trade association lies in its ability China Daily . • Beer sales in convenience stores to promote, protect and advance the best interests of its mem - bers, something no single member or advisory group can achieve. may be banned in Utah if a state official gets his The independent trade association can create a better understand - way, reported ABC 4 News. A state Department of ing between its members and those with whom it deals. Call 520- Alcoholic Beverage Control commissioner has made 577-8711 for more information. continued on page 90

56 AVANTI MARCH | APRIL 2011 $name game winner Paul Love, Salt Lake City Utah$ Vendor Guest Column

While the beer category rep - resents a significant revenue source for c-store operators, it is also a strong driver of bas - ket ring. Recent studies have shown that when beer is in the basket, the aver - One of the age c-store ring is over 33 percent higher than when great things beer is not in the basket. On top of this, nearly 50 about the percent of the time … beer beer business is the “primary” reason a beer shopper chooses to visit is that it is a convenience store. So if you’re looking to attract higher always changing. ring customers who are already pre - disposed to shopping in your channel, While 2010 was a challenging year for beer is one of those categories you the industry as a whole, ironically we’re may what to use as a driver. finding the more things change…the actions for the operator. As an example When looking at purchase behavior, more things stay the same. Successful of the beer category’s importance, if one of the interesting dynamics that convenience store operators continue you separated beer into three major emerges is that over 70 percent of c- to drive profitable sales growth for their segments (Premium American Lagers, store beer shoppers preplan their pur - businesses by investing in the beer cate - Value Priced Brands, gory. The key investments they are and High End Spe - making center around the fundamen - cialty, Imports, & “ Recent studies have shown that when tals: the ability to align assortment, mer - Crafts), each seg - chandising, and promotional activity to ment individually beer is in the basket, the average c-store meet the needs of targeted core shop - would rank as the ring is over 33 percent higher.” pers. 4th, 7th, and 11th According to IRI, the beer category largest categories in on average contributes over 12 percent the total store. This is amazing and re - chases down to both the brand and of total convenience store sales. It’s the inforces the importance a healthy beer package size level. For the most part, second largest category in most c-stores category can have on an operator’s when they walk into the store, beer and a critical driver of traffic and trans - overall business. shoppers know exactly what they want and exactly where to get it in the cold “ ne study found that cross promotional programs such vault. However, this doesn’t mean there O isn’t an opportunity to influence their as co-promoting chips, nuts, or other salty snacks with purchase decisions in-store. Nearly 30 percent of the time, a beer shopper’s beer drove 10-20 percent improvements in sales during purchase behavior can be altered by an in-store stimulus such as hitting a key the promotional period.” price point, building a small display,

continued on page 60

58 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 59 Vendor Guest Column

continued from page 59 and/or per - mize and tailor your product offering to identify items truly incremental to suasive mer - to each location has proven to be one the category (not simply share shift be - chandising of of the key contributors to successful tween packages) are helping to provide complemen - beer category management. operators with better insight into the tary product Category trends tend to ebb and right assortment for their stores. In ad - categories. flow, but core items often drive a bulk dition, approaches such as power sets For example, of total category sales. In fact, in most (adding days of supply to only your top one study beer categories about 20 percent of the selling items) and perpetual plan-o- found that cross graming (ongo - promotional “Aligning assortment and space allocations ing adjustments programs such to planograms as co-promoting to consumer demand at the store level is key.” versus once or chips, nuts, or twice a year re - other salty snacks items drive 80 percent of the sales. sets) are being used more frequently to with beer drove Given that it costs retailers about $.08 drive better performance. 10-20 percent improvements in sales in electricity per day to cool a case of When it comes to displays, mer - during the promotional period. Offers beer, slow-turning items in the cooler chandising, and promotions, opera - that encourage multiple purchases can erode margins quickly for the op - tors are seeing improved success and/or trade up in brand and/or pack erator. It is critical that operators bal - with high quality, themed displays size also produced similar results. ance the need for variety with what and offers that are simple to execute Finally, beer shoppers who shop con - sells. An item turning one case per and link closely with today’s tech venience stores tend to purchase beer ei - week in the cooler costs operators savvy consumer. These displays, mer - ther for replenishment, quick re- nearly $.50 more in margin dollars chandising elements, and promo - freshment, and/or parties or social oc - than one that turns one case a day. tions focus on creating points of casions. Retailers interruption for the consumer who align their through the use of compelling price merchandising and “When confronted with an out-of-stock points, cross merchandising (linking promotional ef - complementary products like salty forts around these on their preferred package, about half snacks, ice, food pairings), and inte - occasions tend to grated technology to capture shop - have greater suc - the time beer shoppers will leave the per attention pre-, during and post cess in driving total store and purchase somewhere else.” store experience. Successful opera - category sales and tors are building relationships with appealing to core beer customers…not simply selling beer consumer needs. In addition, beer consumers are sen - them beer. So what are some the best prac - sitive to out-of-stocks. When confronted While new products, unique store tices that successful retailers are with an OOS on their preferred pack - formats, and innovative designs are doing to drive their beer category age, about half the time beer shoppers important and tend to receive a lot of performance? will leave the store and purchase some - attention in the press, investing in Ironically, it all goes back to the fun - where else. Once this occurs three beer category fundamentals such as as - damentals. First, aligning assortment times, they will often not return to that sortment, space, displays, merchandis - and space allocations to consumer de - store. Proper assortment and space al - ing and promotion can provide the mand at the store level is key. Each location across all segments of the beer foundation for a great return on in - store has unique characteristics and category is critical for an operator. Ana - vestment in this critical category for c- shopper make-up. The ability to opti - lytical tools and approaches that help store operators.

60 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 61 How To Remain King Of The Ice: A Look At Frozen Beverage Trends By Bob Sweeney, Director National Sales, and Libby Goldschmid, Director National Business Systems, Coca-Cola Refreshments

Dive into the etary study to examine the state of the their frozen beverage icy depths of frozen frozen beverage category. “Coca-Cola in c-stores versus beverage research Frozen Category Awareness and Usage other locations, and and one fact shines as Convenience Retail Study” was conducted the c-store is the pre - clear as a crystal of ice: 7- by an independent, third-party research ferred place to buy among Eleven is the preferred con - firm and is the source of all information 61 percent. Two-thirds (64 per - sumer destination to purchase these contained in this article.* This is the cent) are “extremely” or “very” satisfied tasty treats.* In an era of chan - first time we are sharing results with frozen beverages available in c-stores. nel blurring and heated in a customer’s publication. Frozen beverage incidence in the total competition in the con - “Frozen beverage Among other topics, the convenience retail channel has remained venience retail industry, incidence in the total report takes a close flat since 2006 at 5.2. With its Slurpee Slurpee rules. No look at performance brand, 7-Eleven has nearly three times that other business comes convenience retail channel has in c-stores. The data figure, at 14.6. However, incidence has de - close to 7-Eleven’s remained flat since 2006 at 5.2. provides insights clined slightly from 14.9 five years ago, per - market position. With its Slurpee brand, about the frozen bev - haps due to competition from those Since first introduc - erage consumer for 7- aforementioned frozen coffees and ing the concept in 1967, 7-Eleven has nearly three Eleven franchisees to smoothies. Yet, the company still reigns it only seems fair that the times that figure, help the company retain supreme compared to other c-stores. Inci - popular drink has become at 14.6.” category leadership. dence at the nearest competitor is 7.8. an icon closely associated with the company’s stores. But in the 44 years Slurpee: A Fine Who Makes The Cash since, the category has evolved. Today, the State Of Affairs Register Ring? V emergence and popularity of additional Among convenience The consumer profile of those e

forms of icy drinks—frozen coffees and retail shoppers who pur - who drink these beverages may n smoothies, as well as that old standby, milk - chase frozen carbonated surprise some. Please note that shakes—has created new competition or uncarbonated bever - survey participants were be - d

among this class of beverages. It’s time to ages, the c-store channel tween the ages of 13 and 79. o take a closer look at recent data and trends. dominates the category. There is a slight female skew, r The Coca-Cola Company has done just For example, 79 per - comprising 54 percent of cate - that. In 2010 we commissioned a propri - cent typically purchase gory consumers. Although the G average age is 40, teens and

young adults 13-29 are most like - u ly to be heavy purchasers of e frozen beverages. Seventy-eight percent of purchasers have com - s pleted at least some college, with t 64 percent working full- or part- time. Some 69 percent are mar - C

ried or living together, and 74 o percent have children under 18 l in the household. u Loyal Slurpee sippers are typi -

cally thought of as much younger, m and that is still true. Millennials, ages 18-29, are core 7-Eleven customers n continued on page 64

62 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 63 Vendor Guest Column

continued from page 63 and a crucial component of the time, the buyer consumes it in the capture 78 percent of total Slurpee gal - of the shopper base. While company of a child. lons and the top five items are all from 15.1 percent of total channel Frozen beverages are often a treat unto The Coca-Cola Company. Coca-Cola and trips were made by this age themselves. Almost half the time (47 per - Fanta Cherry comprise 48.6 percent of group, they account for 21.2 cent) they are consumed with nothing else. total Slurpee volume; Fanta Blue Raspber - percent of total 7-Eleven visits. When paired with other items, 32 percent ry, Fanta Piña Colada and Fanta Banana And, while they comprise 14.6 consume salty snacks, 30 percent combine round out the top five. percent of spend in the total chan - them with prepared meals, and 11 percent • To increase average ticket size, consider nel, in 7-Eleven stores they are responsible choose sweet snacks such as cookies, donuts enhancing the snack occasion by pairing for more than a quarter at 25.1 percent! In and pastries. Slurpees with salty snacks. addition, millennial shoppers are more What are the most important attributes of • Afternoon is “happy hour” for frozen committed to the 7-Eleven brand, these delightful drinks? The flavor beverages. Promotions to bring con - meaning they are less likely to lasts until the very end (83 sumers to your location versus competi - change preferred retailers percent) and the product is tors’ could pay off. in the near term. And fi - “Although refreshing (81 percent). • Since 41 percent of shoppers consume nally, more than any the average age is 40, Speaking of flavor, this these drinks in the presence of a child, other c-store, 7- characteristic is ex - consider promotions and combos that pair Eleven’s frozen bever - teens and young adults tremely or very impor - Slurpees with appropriate selections for age category resonates 13-29 are most likely to tant to nearly all (92 adults to purchase for children. with the Millennial age be heavy purchasers of percent) consumers. • Consider researching what errands shop - group. Keeping this tar - Coca-Cola is viewed as pers are running in conjunction with their get audience happy is es - frozen beverages.” the most-desired, best-tast - stop at c-stores. If the store also could ad - sential to retaining category ing flavor. When asked to dress those needs, there is an opportunity leadership. rank the top three flavors, the to increase sales. Heavy users make up better than following favorites emerged: Coca- Since introducing frozen beverages almost half (52 percent) of category consumers. Cola, cherry, Coca-Cola Cherry, Mountain a half-century ago, 7-Eleven has remained the How often do they buy? Some 8 percent buy Dew, strawberry (particularly among light key player in the market. While there is no im - daily, 9 percent two to six times a week, 14 users), wild cherry, blue raspberry, watermel - minent danger of skating on thin ice, under - percent once a week and 21 percent two to on, piña colada and unbranded cola. Switch - standing current trends and capitalizing on three times a month. These fans are more ing flavors is a practice 33 percent of these existing opportunities positions the company likely to pair their frozen beverage with food, drinkers engage in very or fairly often; 41 for continued long-term success. or even other beverages. percent do it occasionally. Some 22 percent of respondents indicated that a greater vari - Research Details Diving Deep Into The Data ety of available flavors would potentially mo - *The Coca-Cola Company collected data Why do consumers drink Frozen Carbon - tivate them to consume these beverages for the Coca-Cola Frozen Category Aware - ated/Uncarbonated Beverages? What’s their more often. ness and Usage Convenience Retail identified need or product benefit? Study between May and June • 86 percent want to cool down Opportunity Knocks 2010 via a 35-minute online • 80 percent want to quench a thirst Clearly, Slurpee is essen - “Nearly survey. Some 1,555 conven - • 78 percent want to reward or treat tial to the 7-Eleven brand two-thirds of frozen ience retail consumers themselves and a key item for core participated, indicating • 75 percent want to take a break shoppers. These findings beverage purchases they had ordered and Most users view these beverages as an in - present some interesting (62 percent) are made consumed food or bever - dulgent treat that they consume with or as a opportunities and The between lunch and ages from a c-store in the snack, or while they are running errands. Coca-Cola Company has spe - past week. Of that number, Nearly two-thirds of purchases (62 percent) cific recommendations for dinner.” 500 were defined as frozen are made between lunch and dinner; anoth - franchisees. carbonated/frozen uncarbonated er 17 percent make a purchase after dinner • Ensure you have enough barrels dedi - beverage users, purchasing such an item or in the evening. The majority of the time cated to Slurpee. Eight is the number we at least once every two to three months. (66 percent), they drink their frosty concoc - suggest, but regardless of the quantity you Others were classified as smoothie, milk - tion in the car. Other spots include at home offer, more is better because variety is im - shake or frozen coffee beverage drinkers. (48 percent), at the location where it was pur - portant to these consumers. Where relevant, we also provided insights chased (22 percent) and walking around • When considering what flavors to add, for this article from the Landmark/Shop - town (16 percent). Interestingly, 41 percent you should know that Coca-Cola brands per 360 Study.

64 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 65 Vendor Guest Column

What Workplace Employee Injuries Cost You Direct Costs Insured Costs By John Harp, CSP, ARM Assistant Vice President Loss Control, Mitsui Sumitomo Insurance Group Indirect – Uninsured, hidden costs Examples: Injuries to employees can be a significant hardship. How does this affect you, the small Time lost by injured worker cost to your business and to the entire 7- business owner? Eleven enterprise. If your store is one of the Substitute clerk time fortunate ones to have never experienced an Types of Injuries Training time for replacement clerk employee on-the-job injury, congratulations In the c-store industry, the most common - Time completing paperwork, phone for successfully managing your risk. However, ly reported claims are overexertion, cuts, and Cost to clean up for those stores where injuries have occurred, slip-and-fall-type injuries. The most costly Damaged product you should realize such occurrences are not a claims involve injuries to the back, usually Customer service/Loss of sales necessary element of operating a c-store and from overexertion from handling items like can generally be prevented. bag-in-box or soda. In the chart below we can Emergency supplies Mitsui Sumitomo Insurance Group see the type of injuries and current costs ex - perienced in the 7-Eleven MSIG program (MSIG) provides the worker’s compensa - for medical bills, lost wages and possible other from 2005-2009. tion insurance for almost 3,000 7-Eleven costs, such as rehabilitation benefits.) franchised stores throughout the U.S. The 7-Eleven injury experience presented here Direct Costs of Injuries Indirect Cost of Injuries is based on the stores insured by MSIG. With Our experience shows that from 2005- Direct costs are just the tip of the iceberg. a broad geographic spread of stores, it is felt 2009, the total direct costs for injuries is $30.8 When an employee is injured on the job there the results are representative of the entire million. Overexertion-type injuries were the are many other possible costs to your business franchise network. that are not included in worker’s compensa - “In the c-store industry, the tion coverage. These indirect costs include Significance most commonly reported such things as lost time seeking medical care, Annually, almost 4,500 employees in the time training a new or substitute employee, U.S. die from workplace injuries. Another 3.3 claims are overexertion, time spent reporting the injury, taking phone million suffer workplace injuries and illness. cuts, and slip-and-fall-type calls and filing paperwork, damage to prod - In the c-store industry over 3,000 suffer in - injuries.” uct, cost to clean up, and possibly damage to juries, with numerous fatalities each year. the store’s reputation. The cost of these injuries is enormous. Ac - most costly at $9.59 million in current costs. Indirect costs can range from 1 to 4 times cording to the 2010 Liberty Mutual Work - Back injuries average the highest cost at the direct costs of the injury. Example: a sim - place Safety Index, the cost of the most $20,180 per claim. These direct injury costs ple laceration with stitches at a typical cost of disabling workplace injuries amounted to go into premium calculations that influence $750 with 2 times the indirect costs would $53.42 billion in direct worker’s compensa - your store and convenience store insurance equal $1,875. Considering a profit margin of tion costs. Most importantly, these employees rates. (The costs are called incurred costs, 3 percent, $62,500 in sales would be required and their families suffered pain, disability or which equals the paid and reserve amounts to cover the costs. Much like an iceberg, the hidden costs can be significant. Controlling Costs—Prevention Top Three 7-Eleven Incurred Injury Costs 2005-2009 This is the most effective way to control Type Of Injury No. Of Claims Cost your direct and indirect costs of employee in - juries. Prevention entails things like good Overexertion/Strain 670 $9,592,145 housekeeping, spill clean up, proper step Cuts 527 $1,979,135 stools, safe handling of case goods, training, and most importantly, how you as the owner Slip/Fall 379 $5,494,510 continued on page 84

66 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 67 Shells and Chevrons of our area, a associates to do to protect our GP. create confusion and frustration fact that the Gasoline Department Accounting issues continue as with our customers. Given RedBox’s P 1 a r c h ~ a p r m i l has agreed is wrong. However, as of usual, the most recent being out - attitude, I feel strongly that we R 1 today nothing has been done to cor - standing Bon Appetit invoices dating should give RedBox the boot and go E

0 rect the situation. I do believe there back 90-120 days. The vendor trans - 100 percent Blockbuster in our state.

is enough positive progression to mitted DSD invoices and the Tran - We need to be united on this issue. S 2 make the turn and have a good year. cepta system used for EDI kicked Blockbuster provides better commis -

Let’s keep working to make this a them back. Working with SEI Vice sions, and I hope we can team up I D l profitable year! President and Controller John Erhie with them system wide. Blockbuster i and NCASEF Chairman Bruce would also provide a point of differ - E Maples, we will have a one-time ex - ence from RedBox and would bring r

ROCKY MOUNTAIN ception for these invoices. The ven - our customers back to our stores ver - N p dor submitted a one-time 90-day sus those with RedBox.

FOA T exception request and we have A

Wayne Mathews, President agreed—since we did receive S

Colorado is facing a few chal - the product, the vendor will be

The NCASEF Board convened February 1-2 for ’ ~ lenges this first quarter of 2011: de - an Affiliate Member meeting and February 2-5 for paid. This means our fran - clining T-counts, cigarettes, account- chisees will be seeing late in - its full Board of Directors meeting. At the Affiliate ing issues and an inconsistent ap - voices hit their merchandise R h portion of the meeting over 80 vendor companies proach with the RedBox and Block - reports. The situation going for - E

c and 120 company representatives gathered for buster programs. SEI, in an attempt ward will be if the vendor sub - updates on franchisee programs and issues, break - to address the decline in T- P r

out sessions and a special presentation by SEI counts, has gone back to O a Senior VP Jesus Delgado Jenkins. The Board the well and increased our

two-pack premium ciga - R meeting included an in-depth presentation and

M rette discount, and along Q&A session with SEI Controller John Ehrie, with it lowered gross profit T

Senior Dir. Inventory Accounting Anne Bond, in our largest category. S

S and Senior Dir. Revenue Accounting Brian Some franchisees have not participated, choosing to Joe Saraceno FOA Vice President T Padgett. The Board talked about many topics at M hairmen protect their GP. A few Matt Mattu suggested opening ples and Vice C the three-day meeting, including the CMR R Bruce Ma discussion on gas commission. Chairman orge during have split February with d Roger St. Ge h Gill an plan, maintenance, AQIP, narrowing national brands, a Jivtes day one. two weeks on the old g comments on O penin o gas strategy, hot foods, coffee, security, electronic payments, scan promo and two at the new audits, magazines, cleanliness, flat fees and the running of the Coalition. r P discount. Franchisees need UTAH FOA to evaluate the impact of Cal-Neva FOA President Rich Rose c described the making of the first TV E Zachary Weatherman, local FOA to produce its own TV with a loss of GP% of 0.25 at 35.92 the discount to their finan - commercial by a local FOA. h commercial. We are planning to percent. These decreases resulted in President

R cials. I am not in favor of CAL-NEVA FOA have two different commercials and our Gross Profit Dollars being down I feel like I keep repeating myself, such a low GP on two-packs due to mits late, franchisees and 7-Eleven Richard Rose, President more advertising this year. Our Mar - 0.80 percent. Couple this with the but many franchisees in Utah contin - ~

’ the fact that too many other factors will refuse to pay that invoice. 2010 was a year full of major ket joined in with a radio campaign changes in the credit card fee and ue to struggle just to make ends meet. need to happen to make it work, The situation in Colorado with

S events for the Cal-Neva FOA, which in December, and has teamed up gasoline policies, and the franchisees For many of us it has been a very hard such as T-count must grow signifi - RedBox is that they will not install in includes accomplishing “an advertis - with us again for a February cam - in our area had to work extra hard to winter. We are looking forward to A

T cantly, sales in higher GP categories 100 percent of our stores, leaving ing first” for any local FOA in the paign this year. make ends meet. The category that spring, when sales generally go up. I must grow, and we need to up sell some franchisees at a disadvantage p country and becoming a significant November was filled with the spir - showed the most promise was Fresh do not have any financial information N our two-pack customers another to our competition. We were forced helping hand for our community. As it of giving to the needy of our area. Food, with a $29 per sales day in - available to me at this time. r high GP item along with the ciga - to seek out Blockbuster through E we mentioned in the previous Presi - LeAnne DeWeese and Field Consult - crease. Other areas of increase are As an FOA we are doing quite rette purchase. The need to sell NCR to install at all remaining i

dent’s Report, we had our tradition - ant Dorothy Loeffler-Weatherman Grill (up $8), Coffee (up $6), and well—our membership is slowly l

D something else to all cigarette cus - stores. We now have both DVD al events in 2010—like the MDA started our effort for the Evelyn Candy (up $7). The areas of concern growing and we are building strong I

tomers is too much to ask our sales rental kiosks in the field, which will Lasagna Feed at South Lake Tahoe Mount Food Drive. Their hard work are Alcoholic Beverages (down $22), relationships with vendors and our 2 S and the Lou Magnotti Golf Classic, and that of many volunteers helped Cigarettes (down $31), and Foun - community. We will be holding our

which benefits the MDA Camp, Bat - feed hundreds. tain/Slurpee (down $12). first golf tournament for MDA on 0

E SEI VP Jesus Delgado Jenkins described Consoli - ten’s Disease and the Boys and Girls Financially this year, our Market Gasoline pricing in the Reno- May 14. I would like to thank Stu

dated Market Rollout, a program to update stores 1 R Club of Gardnerville. had a 0.12 percent decrease in Mer - Tahoe Market has been a mystery. Wallace for organizing vendor spon - Last year we also became the first chandise Sales at $115,359, along Our prices are matched with the by market, and support them with advertising. 1

P continued on page 70

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2 0 1 1 7 1 continued from page 70 and the Item Setup screen allows us m a r c h ~ a p r i l in 2010 in all three markets, with to set up an item as a cost of goods none officially scheduled yet for 2011. item, but the rejection comes back RedBox is up and running at 132 stating that the “system does not sup - store locations, with average commis - port non-retail items as SSI items.” sion at $16.50 per store per day. Five This must be changed. stores are over $31/day in commis - DSD vendor items that are not rec - the Pechanga Casino and Resort in sion, with the highest store at ommended are creating issues for Temecula, California. The event was $37/day commission. There are 51 stores as well. When we bring in a new a great success. Several hundred Blockbuster kiosks in stores in the Di - item from a DSD vendor, it is often - franchisees from all four Franchise vision, with the top 10 locations aver - times rejected because Dallas doesn’t Owners Associations in Southern have that particular California were in attendance, and UPC item on a list more than 60 vendors were there of - there, so they automat - fering franchisees some great deals

S ically reject it for setup, to kick off the new year. A golf outing even though the local followed the next day for interested T DSD vendor is correct golfers at Pechanga’s premier

R in our system. course, Journey. More and more, SEI’s San Diego office is being dis -

O franchisees are being mantled with the recent corporate restricted on what we re-organization, and nearly all staff P there should be relocated by

E mid-June. As for Business Trans - Southern California FOA formation coming to San Diego R President Karam Dhaliwal in the future, no information is said BT is still a work in progress. being made available at this ’ point, as I’m being told by SEI aging $330 per store week in that results in the “test” markets S rental sales, or $6.12 per store are still being analyzed.

T per day in commissions. Ap - proximately 250 more sites are N being evaluated for potential VIRGINIA FOA

E Blockbuster kiosks in 2011. Waqar Sheikh, The Hot Foods program is Central Florida FOA Treasurer Roger Van Sluis described problems President D currently in 42 stores, with no with invoices from FM. New Senior Vice President for I announcements for expansion to the Marketing and Logistics Jesus Jenk - other stores in 2011, as of yet. are able to bring into our stores S ins was in town and explained SEI’s The December software down - through the recommended vendors new initiative, Concentrated Market

E load has greatly hindered store oper - and the recommended ordering sys - Rollout, which is a phenomenon ators’ ability to stay in stock. Many tem. It is apparent that the system de -

R where every store should look the items are not available as “orderable” sign will force franchisees to “tire” of always having to remember to call same. So if one store has one system

P through the system now, making it of coffee, the other store should necessary for store operators to call McLane or a DSD vendor to “add” have the same system of coffee, and McLane each week to have items something to their order, and even - if one store has the hot food pro - added to their orders. No cost of tually will only have what SEI wants in gram, the other store should also goods items are available to stores every store. have the hot food program. In now unless they are recommended The San Diego FOA partnered essence, all stores—for the most items. COG items are at McLane, with the FOA of Greater LA on Janu - ary 19, 2011, for a joint trade show at part—will have the same layout, the same equipment, and carry the same items. This will create consis - SEI VP Jenkins also described Convenience Quick- tency throughout our stores and Serve, a merging of the c-store and quick-serve make it easier for our customers to find what they want, regardless of channels that emphasizes hot and fresh foods. continued on page 74

72 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 73 Vice Chairman Jivtesh Gill emphasized Nestle Professional’s Susan Davis said Phoenix FOA President Jerry Sahnan Living Essentials Dempsy Garrett an - UFOLI President Tariq Khan reported New York Spring Water’s Frank Natale the importance of checking the coding that CoffeeMate was derecommended spoke about heavy competiton from c- nounced a new rack system for popular success in stopping the tobacco license presented Vblast, a vitamin-enhanced on maintenance calls. but still available in all areas. store oversaturation in his area. 5-Hour Energy. increases in Long Island. water that sold extremely well in testing. P S continued from page 72 Concentrated Market Rollout “Items not ‘orderable’ In an interview on Bloomberg debt of franchisees? Why are there official looks at the store through will also include more advertising. News, Sean Duffy, 7-Eleven’s vice so many questions from franchisees their own perspective, which is not R T which store they visit. This is just through the system make

one aspect of the Concentrated Under the program, the advertising president of mergers and acquisi - and not enough answers from 7- consistent with SEI guidelines. Nu - E R Market Rollout. budget in this region will increase it necessary for fran - tions, said “7-Eleven plans to spend Eleven corporate? merous stores in our two markets fell The other is, as he explained, to 141 percent (I think) from last year. chisees to call McLane $250,000 to $500,000 a store to re - below the required 70 percent score, S O So definitely, I believe we will all model the Exxon locations in Flori - including some corporate stores. attract customers to our stores with each week to have items I P great sales and deals and then capi - benefit from this Concentrated Mar - added to their orders.” da during the next two years” Most PACIFIC Breaches are being issued to fran - D talize on their visit. For instance, in ket Rollout. Already, our stores are will be switched to 7-Eleven signs NORTHWEST FOA chisees for falling below the expect - E Chesapeake, we are selling ciga - starting to look modern with all the and interior displays, taking advan - ed 70 percent score in CEC E Maninder Walia, President rettes at the minimum state-allowed upgrades that come as part of the ing headline news and weather, and tage of the company’s marketing inspections, causing more stress. R Merchandise sales for the month N price we can sell. That way we can new initiative. Years ago, they looked highlighting our in-store sales. We and distribution for its 610 Florida Our second trade show was held ancient, old and historic. But now, are the number one leader in the stores, he said. All will keep selling ending February 2011 were up by on March 24 at the Embassy Suites,

bring the customers in and T ’ 4.5 percent; net income was down by then they will buy coffee, convenience store indus - Mobil gasoline and let customers use Tukwila. About 60 vendors partici -

7.5 percent. Cigarette unit sales have ’ S soda, drinks, phone cards, try, and we will remain the ExxonMobil credit card. pated in the event, which was at -

declined by 10 percent since Wash - S and other known value number one if we continue At this time 7-Eleven has no plans tended by 150 stores. Grand prizes T ington State increased the excise items. with innovative programs to remodel current stores, while the were raffled at the end of the trade like Concentrated Market Exxon/Mobil sites will be upgraded. duty last year. Lack of local advertis - show, which included three iPads, N As part of Concentrated ing is a huge cause of concern for R Market Rollout, SEI is mak - Rollout. There are no plans to compete continued on page 76

E franchisees. ing a huge investment in Our association is having against other gas stations with a gaso - E stores from New York to its third trade show on line strategy either, even if they are D West Virginia. Each store April 21, 2011. Our guest primary or secondary competition. P

I “ALL franchisees need security systems that are speaker is 7-Eleven CEO will be AQIPed and will “There’s a great opportunity in the O Joe DePinto. updated to industry standards, not just new S industry now that goes with our ag - have hot foods and the stores. SEI must take action now.” same coffee island. This is a gressive approach to mergers and ac - R E great initiative and fran - Anne Bond, John Ehrie and Brian Padgett quisitions,” Duffy said. “We have access —Jivtesh Gill, Vice Chairman, SOUTH to a lot of capital and lending rates are T R chisees are excited, al - from SEI Accounting answered questions National Coalition regarding new accounting changes. though many are a little concerned FLORIDA FOA extremely favorable now. Our debt is S

P Unauthorized charges by Fa - that they will lose some gross profit close to being extinguished.” Zahid Anwar, President cilities Maintenance are on the dollars. I can attest, however, that they look great with the new coffee What about current franchisees The acquisition of 183 ExxonMo - rise in both markets. Four new the pricing strategy has worked in and hot foods programs. There are who will have new competition bil locations was finalized in Decem - stores have been opened in 2011 my store. We have been offering also several TVs in the stores show - from these upgraded ExxonMobils ber 2010. Beginning in April, SEI will and have not been franchised yet, value priced items for a year, and turned 7-Elevens, while they are take over these stations and convert as it has become harder for an ex - looking at the numbers, the GP struck with an old box with no them to 7-Elevens. This deal brings isting franchisee to qualify for went down but the dollar amount “More and more, franchisees AQIP in sight? Why are there no many unknowns and challenges for multiple stores based on the new went up. Our gross profit went from are being restricted on what plans in place or pro-active ap - Florida franchisees, and not enough multiple criteria guidelines. Forty 40 to 38, but my gross profit dollar proaches before these franchisees we are able to bring into our answers. There are many ExxonMo - new stores are planned in Wash - went up. That is the philosophy—to get affected? Would this deal bring stores, even through the bils located less than half a mile from ington State by the end of 2012. bring more dollars in and offer cus - opportunities or hardship for exist - San Francisco/Monterey Bay current 7-Eleven stores, or right CEC inspections are still a nui - Board Member Ann Sekhon tomers value, and it appears to be recommended vendors.” ing franchisees? Would this deal across the street. sance for franchisees. Every CEC criticized fax machine re - working. bring more debt or extinguish the sponses from Accounting.

74 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 75 continued from page 75 ered by weather just stopped making m a r c h ~ a p r i l three $500 gift cards, five $250 gift all of those extra trips to our stores cards, and more. Our FOA will be that we depend on. As we moved into hosting our annual Charity Golf March and early April the weather Tournament on August 10 at the remained cold and wet. Sales in New prestigious Newcastle Golf Club, in England are flat to slightly up, as we Newcastle, Washington. struggle to overcome really strong “In 2010 we became the first sales from last year’s early spring and FOA to produce its own TV warm weather. I would like to think NEW ENGLAND FOA that winter is over and that we have commercial. We are plan - Dennis Lane, President had the last snowstorm of the season ning two more for 2011.” ... but here in New England, you Winter started in New England never know. —Richard Rose, President, with the first storm of the season on Cal-Neva FOA December 27 and it continued snow - S ing almost weekly up until April 1, DELAWARE VALLEY with many areas getting almost 80

T dors, who each gave a quick presen - inches of snow. This was one of the FOA tation. The two market managers R worst winters in the history of New M. Al Haffar, President who cover our area were also pres - England, where we are often hit with Sales in Pennsylvania have been ent. A very productive discussion O two snowstorms a week. The impact negative 3 percent due to inclement took place emphasizing the impor -

P on stores and sales was significant. weather. The last few weeks the tem - tance of trust building with the fran - Franchisees spent hundreds, if not peratures ranged from 20 to 30 de - chise community for a better E thousands, of dollars removing snow grees, compared to the much relationship going forward. from their parking lots and trying to Maintenance complaints are still

R warmer temperatures during the keep their floors clean. A lot of stores same period last year. We have also high when it comes to fixing our lost power, and delivery delays were had many rainy days. Slurpee machines. Lighting has im - ’ not uncommon. Customers in New Our last FOA meeting was very proved after switching to Sylvania.

S England who are not normally both - well attended. We hosted five ven - continued on page 78 T N E D I S E R

P Pacific Northwest FOA President Maninder Central Valley FOA Vice President Sukhi Columbia Pacific FOA President Bill Huff - Walia said unauthorized charges by FM Sandhu praised departing Division Vice man said a review of cleaning processes were on the rise in both local markets. President Larry Hughes. helped area franchisees.

San Diego President Jim Nunnally said Delaware Valley FOA President Al Hafar UFOLI Vice President Phil Castaldo said franchisees must respond to changes said trust is a big issue for franchisees in store growth in Long Island is both an being made as a result of BT. dealing with corporate. opportunity and a problem.

76 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 77 continued from page 76 are not making any money. SEI has m a r c h ~ a p r i l Store building conditions can still be decided not to compare the income improved. The plastic bag tax was de - of BT stores to Control stores in the feated in Philadelphia. There are Division. some talks about a soda tax increase. Audits are of great concern to us. Franchisees applaud the company’s In our Division we asked the previous decision not to participate in Philip audit company to monitor the audits our agenda, our events, our plans, Morris’ new promotion program. in our stores. They checked the tapes and our goals for 2011. while the audits were conducted and We have our trade show sched - uled for June 11, 2011 at the Mar - SOUTHERN riott Hotel in Santa Clara. It should CALIFORNIA be the largest trade show in the his - FOA tory of our association. Our charity golf tournament is on July 11, 2011. Karam Dhaliwal, S The name of the tournament has President been changed to the Dick Newmark T Last year was a diffi - Charity Golf Classic. We are also cult one for us in this R planning a day at Great America Division, except for

O February and Novem - ber, when sales were P up. Southwest Division New England FOA President Dennis Lane described the status of the Swipe sales were down by 1.8 E Fee Reform Bill now in Congress. percent for the entire year

R and margin was down 38.43 percent, corrected any mistakes before 32 basis points from the year before. submitting to Accounting.

’ Franchisee net income before G&A The report shows that from was down 0.3 percent through De - July to December 2010 the S cember 2010 over year-to-date De - total of mistakes discovered Vice Chairman Jay Singh spoke T cember 2009. and corrected before trans - about a GP dip of 2-4 percent Thirty-six new stores were mitting to SEI Accounting in several parts of the country. N opened—21 traditional franchise amounted to $276,664.19, an av - stores and 15 BCP stores. Due to the erage of $2,538.20. In the BT stores, E location of some BCP stores to exist - scan audits have been implemented. “Franchisees desire an

D ing stores, the sales of the existing Franchisees are upset because in this

I stores were affected by the new BCP format the auditors do not provide a updated security system for store openings. printout for every three-foot section.

S all stores, but not the big- Business Transformation remains Franchisees are concerned about brother system that watches E a “work in progress.” At the last BT the new structuring of SEI and feel accounting meeting, SEI declared that communication will be lost with everything we do.” R that the stores already in BT had a 10 several departments in the future, percent increase in their income. since many departments will now P The franchisees involved in the pro - work out of Dallas. Amusement Park. The date has not gram that I have talked to say their been determined. labor costs have increased and they Sales were relatively flat in our SAN FRANCISCO/ area. We’ve had an unusual amount MONTEREY BAY of rain, which has hampered our Store employees may FOA sales. I think the market was slightly up, but the amount of rain we re - have a 2 percent payroll Joe Galea, President ceived has really affected our sales. tax deduction in 2011 The San Francisco/Monterey Bay During the planning meeting we FOA had its annual planning meet - because payroll taxes talked about the organizational ing in January in Scotts Valley. The change within the company, and have gone down. Board met for two days and outlined continued on page 80

78 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 79 continued from page 78 m a r c h ~ a p r i l “Board members questioned there is some concern about the ef - how NBLC members who ficiency and how it will filter down don’t attend local FOA or to the store level. Our association is going to take a National Coalition meetings more pro-active approach to local can represent franchisees.” legislative laws that are being pro - hopes of working together, so we posed. We are seeing a lot more to - can concentrate as a collective team bacco and cigarette restrictions to build our sales and create more being adopted and proposed. income for all franchisees. We have a new market manager Our FOAC is excited for our up - in Market 2367 who has been at - coming annual Charity Golf Outing tending the majority of our meet - on Wednesday, August 24th. This ings, and the communication and year’s golf outing will be held at the

S feedback regarding our issues is Gleneagles Country Club and we being accomplished in a timely are anticipating another record T and efficient manner. It’s a great year. Our FOAC is a proud sponsor

R asset for both sides to be able to of Children’s Memorial Hospital General Mills’s Randy Ayers announced a discuss our common concerns and and Gift of Hope: Organ and Tissue new franchisee contest and multiple new O grow our business. Network. I personally extend an in - cereal products. vitation to anyone who would like to P join us for a round of golf, lunch

E 7-ELEVEN FOAC and dinner on a hot, sunny Chicago Joe Rossi, President day. For further details, you may R FOAC members came together visit our website at www.7-eleven - to kill the proposed $1 a pack ciga - foac.com. ’ rette tax hike. It was incredible to

S see our franchisees pull together, jump to action, and call the state COLUMBIA PACIFIC T senators. We have also worked dili - FOA Central Florida FOA Vice President Fari gently on credit card reform, and N Ishani reported solid growth in both Bill Huffman, President we are keeping the pressure on our Florida FOAs. The first quarter of 2011 has pro - E officials to not repeal all that we duced sales increases of about 1 per - have accomplished.

D cent for Oregon. A 10-cent The FOAC Committee Chairs

I minimum wage hike, increasing have been extremely busy trying to credit/debit card fees, and a winter

S fix such problems as gas commis - that was even soggier than normal sions, and are doing everything pos -

E sible to get this number to a point for the northwest made it difficult where stores are not losing money for franchisees to operate their R on each and every gallon of gas. It is stores with positive financial results.

P Billbacks for fountain and Kellogg’s Mark Gramlich presented the also their objective to make sure SEI/Vendor/Coalition cause-equity pro - that 7-Eleven gas prices are equally Slurpee syrups were not paid in Jan - gram to benefit Hire Heroes USA. competitive as their gas station uary and February for the stores that counterparts. purchased syrup from local Pepsi dis - One of my goals as we move for - tributors. Charge-backs of Mainte - ward is to have the FOAC join forces nance items continue. The good with other top retailers—including news is if stores contest the billbacks, McDonald’s, Subway and Dunkin’ they are usually reversed. Magazine Donuts—to tackle government af - sales have slowed enough that many fairs issues as a group. Along this stores are removing the magazine same vein, I have reached out to rack and only carrying the titles that management and other 7-Eleven sell from the sales counter. Reaction FOA Chicago President Joe Rossi said a FOAs in the Great Lakes Division in tiered rebate program would encourage continued on page 82 franchisees to buy from the CDC.

80 AVANTI MARCH | APRIL 2011 continued from page 80 away at our USE was the Power of m a r c h ~ a p r i l to the consolidation of 7-Eleven sup - One—or getting our guests to pick port staff to Dallas has been strong up one more item than they intend - among franchisees. Many franchisees ed to purchase, thus increasing our question how "Central Planning" bottom line. They also talked how 1 from Dallas and "Retailer Initiative" degree in temperature can make a will work once all buyers are in Dallas. difference between just hot water to take advantage of the fully funded On a positive note, most everyone and boiling water that can power a items or first-fill-free items. The vault likes the new backroom scanners. locomotive with the steam. Another seems to be buzzing with “2 for” and Merchandise reports are much more big focus at our USE was treating our “3 for” deals that our guests are lov - current with the scanners. As I write guests RIGHT, specifically when it ing. Also, in fresh foods we are puls - this report, the Marlboro price pro - comes to greeting, appearance, sug - ing in different focus items at .99 motion has just begun. It is my hope gestive selling, and inviting back. We cents or bundling items together that this attempt by Philip Morris to all have our strengths and weakness - that make for an easy sell to our S control and regulate cigarette pric - es when it comes to these points, but guests. ing fails. If it does not, all franchisees T if we don't step up our game our There are big changes coming will be in for some very difficult from Dallas as several de - R times. partments are being re-lo - cated to headquarters and O Divisions are being re -

P CENTRAL aligned to Zones. Our VALLEY FOA beloved NorthPac Division E led by Larry Hughes will Sukhi Sandhu, Vice President R now turn into the Northern While ending the first quarter with Cal/Reno Zone headed by less than stellar ’ Norm Hower. While we are numbers, we have Swedish Match’s Aaron Choate told franchisees that excited to work with Norm, S jumped into Spring OTP is the number one we are grateful for the brief much stronger— growth sales driver. T opportunity we had to work with starting off the sec - competition Larry and wish him the best of luck

N ond quarter with will steal our as he stays in the Oregon/Washing - double digit sales

E guests away. ton Zone. We know there will be increases. Margin Seasonal re - bumps along this road of change, continues to hold D sets are in full but we hope that it is for the better - strong, even in this I swing, as we ment of the system. At the end of the tough economic day what matters most is getting our

S take this oppor - environment. tunity to spruce guests what they want, when they Weather was defi - E up our assort - want it, and as much as they want of nitely not our Chairman Bruce Maples questioned ment and it! Happy selling! R friend in the first how putting ordering and pricing in change things quarter, but even the hands of employees would not P up a bit on with the rainy and cause problems. the sales floor. SUBURBAN cold days and lower T-counts, it helps One major change on the sales floor to be ready by focusing on in-stock WASHINGTON FOA was moving the energy shots into the opportunities, suggestive selling and Elias Woldu, President first position of HABA. This energy focus items. The Chesapeake Division is in shot trend seems to be taking over We continue to focus on fresh high gear to launch the Concentrat - the nutritional bar craze of the past, Foods, de-cluttering/cleanliness, ed Market Rollout (CMR) in four and is supplementing our lucrative and guest service. These were some markets: 2541, 2543, 2544 and 2546. energy drink sales. of the topics covered during our In January the Division held Town Spring/Summer brings a lot of local USE this year. It's always nice to Hall meetings—hosted by Jesus Del - exciting promotions inside of the see old friends, share ideas, and hear gado-Jenkins, SVP Merchandising store. We encourage all franchisees about new trends. One powerful take continued on page 84

82 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 83 S

T continued from page 82

R and Logistics, and Bill Engen, VP John Ehrie told board Chesapeake Division—in each mar -

O members that accounting ket to introduce the plan, which in - will only process credits and P cludes a merchandising strategy, installation plans (AQIP), training, overages for up to 90 days. E and marketing support. continued from page 34 R In these sessions, we learned that el by visiting www.greenopolis.com. Addi - are considering lowering them, instead, In the new state budget recently adopted stores in those markets will have the out the new image, as well as the new tionally, the more bottles and cans people reported the Associated Press. The states by Governor Cuomo and the state Legisla - ’ FOA of Greater Los Angeles Vice Presi - same look, the new coffee bar, the coffee and hot foods programs. Most recycle in Dream Machines, the more sup - hope that by reducing their cigarette taxes ture, the fee has been rolled back to $300

S dent Kevin Nijjar said to wait for the BT hot foods program, and a clean and importantly, the company intends to port PepsiCo provides to the Entrepre - they will attract smokers from other states per store per year. financial update to find out if BT is viable. friendly environment. As part of the inform the public at large about our neurship Bootcamp for Veterans with and increase revenue. The New Hamp - The tobacco registration fee was initially T marketing strategy, SEI will intro - new and better 7-Elevens with full- Disabilities (EBV), a national program of - shire state House recently passed a bill that raised from $100 per store per year

N duce Known Value Items (KVIs), that fledged advertising in the local mass fering free, experiential training in entre - would cut the tax rate 10 cents to to either $1,000, $2,500 or preneurship and small business man- $1.68 per pack, while Rhode Is - $5,000 (depending on total

E is, discounting a few value items to at - media. Hooray! This is an action that tract new and current customers we waited forever to occur. agement to post-9/11 U.S. veterans with land introduced a bill that gross sales) in an effort by

D more often to our stores. Following For so long, franchisees have asked disabilities. would cut its tax by $1, to public health advocates to I the town hall meetings, SEI conduct - SEI to revamp our stores in order to $2.46 per pack. New Jersey force 40 percent of the state’s last year considered reducing tobacco retailers out of the S ed market strategy training sessions lift the image, and to advertise our its cigarette tax 30 cents, to tobacco trade. But the New in each market to assist in-store team goods and services to attract new cus - Victory Petroleum Acquires E 47 Florida 7-Eleven $2.40 per pack, but has not York Association of Conven - Diageo Guinness presented the new Jer - preparation. tomers. We take this move very posi -

R followed through on it. A Uni - ience Stores (NYACS) and emiah Weed Malt Beverage available in According to SEI, in the summer tively, as it will expand our customer Mobil Locations New Hampshire, three flavors. versity of Illinois at Chicago three other retail associa - P of 2011, those four markets will roll base and grow our business. Miami-based Victory Petroleum Inc. re - economics professor told the Rhode Island and tions—including the 7- cently signed a definitive purchase agree - newswire service that it is very Eleven United Franchise New Jersey are con - ment to acquire from SEI the real-estate unusual for states to lower Owners of Long Island— interests in 38 Mobil-branded gas stations their cigarette tax, since the sidering lowering filed a legal challenge, ob - Workplace Injuries... and distribution rights to nine dealer- increase in sales is not enough cigarette taxes. taining a court order continued from page 67 owned sites, reported CSP Daily News. All to offset the drop in state tax temporarily freezing the fee emphasize the safety and well being of your the stores are located in Broward and revenue. at $100 pending a final decision. With so employees and customers. Palm Beach counties in Florida. Victory much at stake, NYACS and its allies then No one wants to think their employee Petroleum will retain the Mobil brand at decided to pursue legislative action could strain their back from lifting a bag-in-a- the stations purchased. Colorado Beer Bill Defeated rolling back the fee rather than risk los - box, fall off a milk crate used as a step stool, The Colorado House defeated an at - ing the case. or be injured from a robbery attempt, but tempt to let the state’s grocery stores and these can and do happen. We must learn Maryland Raises convenience stores sell full-strength beer, from the accidents and work harder on pre - Alcohol Sales Tax reported the Durango Herald. Although Walmart Banks vention. House Bill 1284 failed by a wide margin, It Despite our best efforts, an injury can Make a Muscle Maryland lawmakers recently voted to On Smaller Stores occur. In this case, controlling costs involves increase the sales tax on alcohol 3 percent, was the furthest any bill to allow food Walmart is planning to add hundreds reporting the injury to your insurance car - Make a Difference to 9 percent, beginning July 1, the Wash - stores to sell beer has made it in the Legis - of small stores to its chain after previously lature in four years of trying. However, a rier within 24 hours and working closely Put you r musc le, you r strengt h an d your co mmi tment be hind MDA. ington Post reported. The alcohol tax in - forecasting a conservative launch of just 30 crease is expected to raise an estimated similar bill is still alive in the Senate—Sen - with the claims adjuster to maintain good Toget her, we can provid e hop e, help and greate r unde rstan ding in to 40 such outlets, reported the Wall Street communication. $85 million a year, with about $47 million ate Bill 194 would let convenience stores, th e fig ht agai ns t th e mus cle disea ses that af fec t chil dren an d adults . Journal. The company's new small stores, There are many tools and resources to going to school construction in the first but not grocery stores, sell beer. It is sched - Be the nex t to fle x, th e next to join in the fig ht. to be called Walmart Express, will have a help you maintain a high level of safety in year and $15 million set aside to help the uled to be heard on the Senate floor. 15,000-square-foot format—a fraction of your store. We’ll talk about these and other developmentally disabled. Governor Mar - the size of the company's Supercenters. cost control techniques in an upcoming arti - tin O’Malley said he would sign it. The mini Walmarts will begin to open in cle. Lastly, consider the risk control expertise TO M B ERGE RON PPrrooudud mmemberember New York C-Stores Win the second quarter of this year in urban from your insurance carrier, broker and SEI MD A Mu sc le Team and rural locations, including some near Loss Prevention to help you prevent injuries Tobacco Fee Rollback Battle States Consider the company's headquarters in Ben - and accidents. n After more than two years of court bat - Lowering Cigarette Taxes tles, New York convenience store opera - tonville, Arkansas. The company plans to test different mixes of products in the ini - Mitsui Loss Control Manager (800) 572-1717 New Hampshire, New Jersey and tors have managed to defeat an John Harp can be reached at ww w.mda .org Rhode Island are going against the na - astronomical tobacco registration fee hike tial stores as it fine-tunes the new conven - [email protected] or 908-604-2951 . tional trend of hiking cigarette taxes and enacted in 2009, reported NACS Online. ience-style formula.

84 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 85 Sell 29 times more in dollar sales when you stock Duracell than when you stock only 7-Select Private Label!

86 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 87 7-Eleven’s Worldwide Store and part-time store associates are em - Illinois Tollway Oases Count Passes 40,000 ployed by each store in the U.S. and overseas, infusing dollars into the local Converted To 7-Elevens Some 40,871 7-Eleven stores are op - economy. In total, more than 30,000 Conversion of 7 Chicago-area Illi - erating around the world as of the end new jobs and business opportunities nois Tollway oases fuel stations from of March 2011, an increase of 2,865 net are created each year as a result. 7- Exxon Mobil's On the Run to the 7- stores over March 2010, according to Eleven has 500,000 store associates Eleven brand were completed in April, data released by SEI. The confirmed around the world and global sales of according to Tollway store number data also shows that 7- $62.7 billion. This contribution to local officials. The conver - Eleven opened 803 net new stores economies has been recognized sion required that worldwide in the first quarter of 2011. through numerous awards and honors the fuel stations As revealed by the data, the total given to 7-Eleven for the positive im - and c-stores be number of North American stores pact on the communities served. closed briefly to allow for system inte - stands at 8,454 as of the end of March, gration and the verification of 7- broken down as follows: Eleven's new software infrastructure. Fuel stations have retained the Mobil 7-Eleven, Inc.—Franchise and 5,906 SEI Chooses Lend Corporate gasoline brand, allowing customers to Lease's Multi-Site Business continue to purchase Mobil-brand fuel 7-Eleven, Inc.—Canada 465 For Store Growth 7-Eleven, Inc.—White Hen 7 and use the ExxonMobil credit card 7-Eleven, Inc.—BCP Stores 258 7-Eleven, Inc. has chosen at the gas pumps and inside 7-Eleven, Inc.—Sub Total 6,636 Lend Lease’s Multi-Site the stores. In addition, the Licensed—U.S. 578 Group to be its construc - “7-Eleven’s convenience stores now offer consumers 7- Licensed—Mexico JV 1,240 tion service provider of world-wide store their new construction Eleven’s signature prod - count reached 40,871 Internationally licensed 7-Eleven portfolio across the ucts, such as Slurpee and stores total 32,417. Japan has the most at United States and Cana - as of March 31, Big Gulp beverages, 13,233, Thailand is second with 5,962 da. SEI plans to add at 2011.” fresh foo ds, self-serve cof - stores, and Taiwan comes in third with least 500 stores in the U.S. fee and a wide variety of cold 4,753. The rest of the list includes: and Canada this year through drinks, along with standard con - traditional growth (individual store venience store items. South Korea 3,404 leases-purchases), business conversions China 1,714 and acquisitions. The Multi-Site Malaysia 1,235 Group's three-year agreement with SEI DDN Signs ABC Regional Philippines 577 calls for the company to immediately Sports For 7-Eleven TV Singapore 550 assume responsibility for service deliv - ery for 7-Eleven's new-store construc - Digital Display Networks, Inc., cre - Australia 441 ator and operator of the fast-growing 7- Sweden 186 tion, which is spread across the U.S. and Canada. SEI said its outsourcing Eleven TV, has signed ABC Regional Norway 172 Sports and Entertainment Sales as the Denmark 163 agreement with Lend Lease provides several benefits, including an increased exclusive advertising sales representa - Indonesia 27 tive for the digital out-of-home network In a released statement commemo - pipeline to achieve annual store-devel - opment targets, end-to-end process im - expected to reach 200 million shoppers rating the milestone number of stores, monthly by June 2012. The agreement, SEI said approximately 10 to 11 full- provements, streamlined methods and geographic flexibility. continued on page 90

88 AVANTI MARCH | APRIL 2011 Bits&Pieces.. .continued from page 56 it clear that he is against the sale of beer at gas stations and c-stores because he continued from page 88 special Slurpee flavor developed for the effective immediately, covers a wide occasion was aptly named Blue Light - believes it encourages drinking and driv - array of advertising opportunities avail - ning Blast, a thunderous blend of rasp - ing. The report states that the official has able as 7-Eleven TV expands its current berry and tangerine flavors made by Dr been actively working to get the ban 24/7 operations in 1,100 convenience Pepper. Thor marks the eighth time in as passed. • Seventy percent of U.S. diners stores to more than 6,200 locations next many years that 7-Eleven has partnered say they want more information about year. At scale, 7-Eleven TV will become with Marvel on a movie featuring one of the sourcing and nutritional value of their larger-than-life Super Heroes. one of the largest digital out-of-home tel - their meals when dining out , with near - evision networks in the United States. ly two-thirds (64 percent) agreeing they 7-Eleven TV programming is cus - tomized for demographics, locations and A Year After ‘Undercover Boss’ would choose healthier meals if more infor - mation was provided, according to day parts, with content that includes na - SEI president and tional and local weather, plus news and en - CEO Joe DePinto never Unilever Food Solutions’ new tertainment. Up to 20 ads run hourly, in imagined his participa - World Menu Report, “What’s in 7-to-15 second formats, pro - tion in a pilot for a new Your Food?” moting in-store and out- reality TV show a year of-store brands. Each ago would have such a “7-Eleven TV store features two huge impact on him for 7-Eleven in Florida. will become one of strategically placed and 7-Eleven. In an interview with the the largest digital out- LCD HDTV moni - • Phil Shearin, who did his best to train Dallas Morning News recently, DePinto DePinto at 7-Eleven's Bakery Express of-home TV net - tors and directional said one of the effects of his going un - works in the audio to attract cus - Mid-Atlantic, is selling some of his art - dercover for the show is that he is still work commercially, thanks to DePinto's U.S.” tomers to the network. trying to figure out how to get more un - encouragement. used food into the hands of the needy. Additionally, SEI has created a program Thor Thunders Into 7-Eleven that identifies people who are ready for 7-Eleven stores recently kicked off the advancement and pinpoints the ones SEI Names New VP Slurpee high season with a special pro - who need extra training, and there is SEI has named Scott McCombs vice motion tied to the upcoming Marvel Stu - now a greater emphasis on maintaining pres ident of merchandising operations. dios movie, Thor. Running throughout and servic ing the stores—a big issue for His new responsibilities include strategic the month of April, the Thor in-store franchisees. pricing, vendor cost-of-goods manage - promotion featured 10 different col - Catching up with the employees who ment, space planning and optimization, lectible cups created by 7-Eleven for its trained Joe DePinto on “Undercover Boss”: as well as operations, logistics and mer - Slurpee and Big Gulp beverages, includ - • Igor Finkler, the overnight delivery - chandise intelligence. McCombs joined ing two limited edition molded plastic man in North Texas who emigrated from 7-Eleven in 1996 as a Senior Financial mugs featuring Thor and the Destroyer, Kazakhstan with only $50 in his pocket, Analyst, advancing into the roles of Man - one of the villains in the movie. Exclu - has his own 7-Eleven. ager of Budgeting and Forecasting, Re - sive spoon-straws featuring four movie • Dolores Bisagni, coffee queen of the 7- tail Operations Manager, Manager of characters—Thor, Destroyer, Loki and Eleven in Shirley, N.Y., is recuperating Strategy and Efficiency, Director of Mer - Sif—in action-figure form were also cre - from a kidney transplant. chandise Planning, Senior Director of ated for the promotion, selling for a sug - • Waqas Nabi, who threw out the dough - Pricing, Merchandise Intelligence and gested retail price of $1.99 each. The nuts in New York, was promoted to a Consumer Research and Senior Director guest/customer experience consultant of Analytics.

90 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 91 VBLAST! READY TO TAKE tion in the cap, it remains fresh much longer than when it 7-ELEVEN BY STORM is diluted in water (up to a year). Available May 2, in VBlast! Vitamins & Spring Water by Strawberry Kiwi, Wild Berry, Orange, Grape, Pomegran - New York Springs has tested well in 9 ate-Cherry, Peach Tea, and Acai & Berry, VBlast! also Virginia 7-Eleven stores, which are aver - uses pure spring water bottled at the source in upstate aging sales of two cases per day! Unlike New York. other vitamin enhanced water, VBlast! Vitamins & Spring Water is sugar free BEN & JERRY’S ANNOUNCES JIMMY FALLON-INSPIRED FLAVOR s and has no calories, no carbs, and no e

7-Eleven test stores in Virginia are e caffeine. What makes the newly recom - Ice cream company Ben & Jerry’s has teamed with s selling two cases of VBlast! a day. i mended VBlast! truly unique is the vita - NBCUniversal Television Consumer Products Group and h c mins, botanicals, and other beneficial ingredients placed into a “Late Night with Jimmy Fallon” to introduce the new flavor en - n a titled “Late Night Snack.” The unique new flavor features a rich r special reservoir in the patented cap. When a customer decides F

to drink VBlast!, they twist the cap to activate the benefits of 100 vanilla bean ice cream with a salty caramel n e percent potent vitamins. By storing the liquid concentrated solu - swirl and crunchy fudge-covered potato v e chip clusters—the perfect mix l E of salty and sweet for a late - 7

INTERNATIONAL DELIGHT COFFEEHOUSE night snack. The concoction r o f INSPIRATIONS PC CREAMER was inspired by a “Late Night s

with Jimmy Fallon” skit in e

The #1 creamer brand in 7-Eleven now comes in a new shelf-sta - c i

which Fallon and house band v

ble half & half portion control cup. International Delight CoffeeHouse r

Ben e The Roots performed an & Jerry’s teamed with Inspirations is a real dairy half & half creamer that provides an up - s original song, “Ladysmith Jimmy Fallon for a new scale option for the coffee bar guest. This new half & half will replace Late Nigh d Snack Mambazo,” about t Snack. n a

the current Land O Lakes half & half with a FOD of May 9. Availability

Ben & Jerry’s ice cream. s will be through both the CDC (SLIN: 230240) and t c

McLane (SLIN: 230239). u DETOUR LAUNCHES LEAN d o

Coffee bar consumers report that r

MUSCLE HIGH PROTEIN SHAKE p creamer is critically important, second

Nutrition bar company Forward Foods, LLC, the w

only to the coffee itself. In a poll, 72 per - e

maker of the award-winning N cent of consumers rated the “ability to Detour bar, recently an - customize” most appealing. Also, the por - Inspirations nounced the addition of the New CoffeeHouse tion control delivery option is preferred 2 to half & half creamer. Detour Lean Muscle high 1 over other methods, as it is viewed most protein shake to its exist - sanitary. Additionally, 78 percent of consumers preferred unflavored ing line of Detour protein creamers and nearly 50 percent of those insist on real dairy. bars. With 32 grams of International Delight CoffeeHouse Inspirations half & half is high quality protein, the shelf stable and requires no refrigeration or ice. This benefit meets Detour Lean Muscle shake important consumer safety needs and addresses local health de - is designed to help athletes partment requirements. With 88 percent brand awareness national - build and maintain lean le ly, International Delight CoffeeHouse Inspirations will help attract muscle. Detour's Lean Mus - Detour Lean Musc colate new coffee consumers. shakes in Milk Cho cle shake is fortified with 26 vita - lavors. and Vanilla Bean f continued on page 94

AVANTI MARCH | APRIL 2011 93

continued from page 93

mins and minerals and provides 1,000 mg of healthy Omega 3s per chocolate. Peeps Chocolate Dipped Chicks will allow fans to con - serving. The Detour Lean Muscle high protein shake will launch in nect with their past while experiencing the newest Peeps treat. two flavors, Milk Chocolate and Vanilla Bean. Each shake contains Each package contains three Peeps Chocolate Dipped Chicks. 260 calories and is lactose free. SNAK CLUB’S NEW CHEDDAR PEEPS EXPLORES A NEW CHOCOLATE SNACK MIX AND POG OPTIONS FRONTIER Snak Club is offering a new product and two Peeps are going where no Peeps have gone before to offer fans new POG options designed to increase snack sales. an unsurpassed chocolate experience. Mixed with, or dipped in, The company’s latest introduction to the "Dry rich milk or dark chocolate, new Peeps Peepsters and Peeps Choco - Salty Mix" category is Cheddar Snack Mix. This item late Dipped Chicks are sure to be a big hit with customers. will be available in 6-pack open stock cases, but Peeps Peepsters offer a high quality chocolate experience only the display shipper will have an intro promo - Snak Club has with layers of quality milk or dark chocolate enveloping a marsh - tional allowance, which new Cheddar Snack Mix and mallow-flavored crème center. In - runs from May 1 to June two POG options. dividually wrapped to 30, 2011. Cheddar Snack create a unique and deli - Mix will be line-priced the same as all the cious bite-sized indul - other Snak Club Best Value item offerings, gence, Peepsters are and will be available via McLane. These available in 11 oz. bags are not pre-priced. bags of milk or dark Snak Club’s two new POG options chocolate. will create incremental sales and GP for d Peeps Peeps Chocolate your store! The POGs occupy minimum Peeps Peepsters an hicks capitalize on Dipped Chicks give a wonderful space under the front checkout stand slat Chocolate Dipped C Peeps brand. the popularity of the new look and taste to the iconic yel - wall, and could maximize profit dollars. low chick that has been around for over 56 years. Just Snak Club’s bags are only 4.5 inches wide, Born has taken the beloved and classic Peeps Chick shape, taste uniform in size, and all top sellers! POG and texture and dipped it in creamy milk chocolate or rich dark continued on page 96

PIT BULL ENERGY BARS LAUNCH IN FLORIDA 7-ELEVEN STORES Energy Lane, Inc. recently announced that its Bar is the only bar on the market with caffeine, ginseng, Pit Bull Energy Bar will launch in Florida exclu - guarana, taurine, protein, fiber and vitamins sively in 7-Eleven stores (available in in a modest 2oz/56g size. the Florida 7 Eleven MIP May of As part of the launch, Energy Lane is offer - 2011). Pit Bull Energy Bar provides 4 ing one free sleeve to franchisees on their ini - to 8 hours of energy compared to 2 tial order. The product launch will be supported cups of coffee, energy drinks and energy by an extensive advertising campaign shots. What sets this bar apart from the throughout the Florida region featuring bill - everyday energy product is that it is boards, bus posters, in-store ads, radio ads also a meal replacement and con - and promotions—all tagged with the 7 Eleven sumers will not experience a crash. logo so customers will be directed to purchase at Pit Bu Available in Double Mocha Crisp and ll Energy Bar will b their local 7 Eleven for $1.99, the exclusive MSRP F e available in lorida exclusively t Pomegranate Raspberry, Pit Bull Energy o 7-Eleven stores. for 7-Eleven Florida.

94 AVANTI MARCH | APRIL 2011 continued from page 94

Option #1 contains 11 items—Salted Pistachios, Salted Cashews, Raw Almonds, Salted Mix Nuts, Energizer Trail Mix, Tropical Trail Smokey Mountain announced that SEI has re - Mix, Yogurt Nut Mix, Fancy Trail Mix, Toffee Peanuts, Hot & Spicy duced the cost of its Snuff Classic and Wintergreen Peanuts, and Oriental Mix. POG Option #2 has 14 items—Salted flavors to $2.99 per can every day! Additionally, Pistachios, Salted Cashews, Unsalted Cashews, Raw Almonds, Smokey Mountain is offering $0.50-per buy-down pro - Salted Mix Nuts, Energizer Trail Mix, Tropical Trail Mix, Yogurt Nut motions later this summer and fall. Look for promo - Mix, Fancy Trail Mix, Cajon Savory Mix, Toffee Peanuts, Hot & Spicy tion announcements in Avanti, and e-mail blasts thru Peanuts, French Burnt Peanuts, and Oriental Mix. FOAs and SEI. The company further announced that its All items can be ordered through McLane. For more informa - national spokesperson and NFL Hall of Famer Randy tion, please call Snak Club National Marketing Director David Pa - White will be attending the National Coalition conven - ganucci at 916-804-8500. tion and trade show in Las Vegas in July!

INTRODUCING A ‘TANGY TWIST’ FROM Tangerine, Lemon, Pink Grapefruit, Cran-Grape, WELCH’S FRUIT SNACKS Cherry and Green Apple (SRP $2.99 for 10- The makers of Welch’s Fruit Snacks are adding a new twist to count box). Like all Welch’s Fruit Snacks, new their lineup of Fruit Snacks varieties with the launch of Tangy Fruits. Tangy Fruits is made with real fruit and fruit Available through McLane, Welch’s Tangy Fruits Fruit Snacks offer juices, contains 100 percent of your daily a combination of deliciously tangy, burst-in-your-mouth flavors— value of Vitamin C, and 25 percent of Vitamins A and E. All Welch’s Fruit Snacks are fat free, gluten-free and con - Contact Dave Castle at 714-414-2527 tain no preservatives. Welch’s HIGH GROSS PROFIT ON SALADO Burst in your mo for more information! Fruit Snacks are produced, market - uth SALES SUMMER PRODUCTS Welch’s Tangy Fruits ed and distributed by The Promo - Fruit Snacks. Salado Sales is now offering high- tion In Motion Companies, Inc., a quality summer products that deliver leading manufacturer and marketer of fruit snacks, up to 55 percent gross profit margins confections and other quality foods for 30 years. For and will keep your customers coming more information visit www.welchsfruitsnacks.com. back for more: Charcoal, Lighter Fluid, Condiments MARUCHAN UNVEILS RAMEN and Dips, Foam, Paper SOUPER 6-PACK and Plastic Plates, Plas - tic Forks and Spoons, Maruchan has made it easy to stock one of the Plastic Cups, Plastic most commonly purchased U.S. grocery Bowls, Beef Jerky. items with the development Salado Sales, a subsidiary of of the Ramen Souper 6- Pack. Packaged in a McLane, researches, develops and distrib - Salado Sales Summer convenient container, utes quality control label products to re - products generate up it's the perfect "grab tailers. The cost to you is low, so you can to 55 percent gross profit margins. and go" item for both offer attrac - families and individu - tive prices to your customers while als. Maruchan Chick - keeping gross margins and penny en Flavor Ramen profits high. To learn more, Versatile and popular noodle soup typically ranks visit www.saladosales.com. men Maruchan Ra ck. Souper 6-Pa continued on page 98

96 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 97 continued from page 96 in the top 20 of most commonly sold grocery items in America, regardless of seasonality, and Maruchan is America's top selling ramen noodle FREEDOM SMOKELESS E-CIGARETTES soup brand. All Maruchan Ramen, Instant Lunch Freedom Smokeless—a U.S.-based manufacturer of premium cups, and Yakisoba products are made in the brand electronic cigarettes—has introduced its Elite series U.S.A. with the finest of ingredients. Maruchan rechargeable starter kits with new attrac - Chicken Flavor Ramen is also a very versatile tive packaging the size of a pack of ciga - product that can be a delicious meal in itself or rettes. This product was designed a tasty ingredient for a world of delicious specifically for the convenience store in - recipes. Available through McLane. For more dustry with a suggested retail price of only information on the 6-Pack program, contact $24.99. It carries a full 6-month factory Aria Bishop at (512) 437-4826 or visit warranty and is available in tobacco and www.maruchan.com. Freedom Smokeless menthol flavors. Refill Elite series rechargeable cartridge packs, the re - signed BOOST YOUR SALES starter kits were de curring revenue stream specifically for the WITH UPTIME c-store industry. for the retailer, are priced Uptime Energy Pills are the at $9.99 per pack and leading energy pills in America, each is equal to approximately 4 packs of tra - and have been #1 with con - ditional tobacco cigarettes. Freedom Smoke - sumers for over 18 years. With less also provides Health and Safety Code Energize your your customers and gas prices soaring and con - compliant high quality acrylic locking display ime. profits with Upt sumers watching how they cabinets, overhead signs, and window posters spend their money, Uptime Energy Pills as promotional collateral for each new store offer the best price for the same long-lasting ener - installation. gy found in any 2-oz. shot—and are also nutrition - Freedom Smokeless’ line of e-cigarettes al. Uptime Energy Pills can be merchandised in a and cartridge products are made in the USA. convenient counter display or pegged in your HBA For further information, contact Glenn Kassel set. SRP is $1.49. or Brad Milinski at Freedom Smokeless 800- 918-5271 or email at [email protected]. KRETEK’S NEW LAGUNAS PREMIUM CIGARETTES Kretek Inter - Greece, blended for smoothness, enriched taste, and unique ac - national, Inc. has announced the cents and characteristics. Lagunas is available in two styles— U.S. launch of Lagunas brand Smooth Select and Menthol Select—and comes in a wide premium imported cigarettes European style 20-stick flip-top box with double bundled sections by Djarum. The Lagunas blend of 10-sticks each, and 10 boxes per carton. The new brand is priced was developed by an inter - at a slight premium to major brand cigarettes, but slightly below national team from Djarum specialty brands. and Kretek over a two-year Lagunas premium cigarettes comply with all LIP/FSC regulations period. Lagunas’ taste is char - in applicable states, with proper FSC markings on packs, cartons, acterized by a truly unique and cases. The FTC has reviewed the brand and has given its ap - combination of tobaccos from proval for the Surgeon General Warnings (SGW) rotation plan. Re - New Lagunas premium the U.S., Brazil, Indonesia, Turkey, and um. quired FDA ingredient submissions for new or modified products imported cigarettes by Djar continued on page 100 98 AVANTI MARCH | APRIL 2011 continued from page 98 have also been made. For more information on Lagunas premium that of the con - cigarettes, call your Phillips & King representative or 1-800-53-cigar. toured Belly - Washers and IN ZONE BRANDS WOWS WITH Tummy Tickler NEW PRODUCT PACKAGING Tots bottles, In Zone Brands—makers of BellyWashers, which is a TummyTickler, and TummyTickler Tots chil - perfect grip dren’s beverages—recently unveiled new shape and product packaging that is sure to “wow” size for chil - customers. dren’s small One new packaging feature is a hands. transition of the TummyTickler brand Bottle graphics of the three brands have also been revised from an 8 oz. bottle to a 6 oz. bottle. As to clearly identify and communicate brand product attrib - recommended by the American Acade - utes—healthy 100 percent juice, flavor identification, no spill, my of Pediatrics (AAP), the serving size and in the case of TummyTickler Tots, 40 percent less sugar. These changes instantly speak to mom, letting her know that will better serve the beverage needs of pre - shers, New packaging for BellyWa ickler she is choosing a healthy beverage, with the fun and flavor her school children, ages 3-5. In addition, the TummyTickler, and TummyT es. TummyTickler package shape now matches Tots children’s beverag kids love. All products are available in singles and multi-packs. continued on page 102

JACK LINK’S NEW SASQUATCH BIG STEAK Jack Link’s Beef Jerky recently extended towers over the competition. A flavorful new option, hot its popular Sasquatch Big Snacks line and spicy profiles are the best-selling flavor in the sticks with the new Sasquatch Big Steak. At segment of the meat snack category. Launched in 2010, over 16 inches in length, the Sasquatch Sasquatch Big Sticks are available in Big Steak is 20 percent larger than the Angry (original) and Happy (mild). next largest beef steak product on the Jack Link’s currently offers retailers a market. An excellent source of protein, the variety of display options, including a 12- portable Sasquatch Big Steak is available in count caddy, a 24-count countertop mug two flavors—Angry (original) and Zen (teriya - display in the shape of Sasquatch’s over- ki). Steaks are currently the third largest seg - sized fist, a 48-count countertop display ment within the meat snacks category. Jack unit and an award-winning 38-count Link’s Sasquatch Big Steak was developed to Sasquatch floor display. Sasquatch Big meet consumer needs for a portable, conven - Sticks are also available in a 24-count ient jerky high in protein and more substantial caddy, 48-count caddy penny tray in the than most other salty snacks. Each bold- and shape of Sasquatch’s foot and an award- brightly-colored package includes an image of winning 72-count Sasquatch floor display. the elusive Sasquatch, star of Jack Link’s now iconic Sasquatch Big Steaks retail for $2.99 Messin’ With Sasquatch advertising campaign. per 2.4-ounce steak (SRP). Sasquatch Big Jack Link’s has also expanded its existing line of Sticks retail for $2.49 per 2.2-ounce stick Sasquatch Big Sticks to include “Furious,” a new, hot and (SRP). For more on the entire Jack Link’s spicy-flavored stick that, at 18.25 inches in length, also product line, visit JackLinks.com.

100 AVANTI MARCH | APRIL 2011 continued from page 100

SKINNY COW INTRODUCES P&G STEPS UP ITS CHOCOLATE CANDIES C-STORE OFFERINGS Skinny Cow moves to the candy aisle with the introduction of two new chocolate candies— Procter & Gamble has introduced new three Dreamy Clusters and Heavenly Crisp. Consumers, new products for the c-store channel designed to especially women, love lift your health and beauty category sales. Skinny Cow ice cream Head & Shoulders 6.8 oz —Head & Shoulders products, and their sales is the #2 brand in shampoo and the leading anti- are through the roof. dandruff shampoo. Get your fair share of the hair Skinny Cow loyalists category by stocking this new convenience size in chose chocolate both SKUs: Head & Shoulders Classic Clean (UPC 3700051439) and Head & Shoulders 2N1 Smooth & Silky (UPC 3700051440). Unit cost for each SKU is $2.20, and Sk SRP is $3.99. Head & Shoulders 6.8 oz will return a higher penny profit inny Cow Dreamy Cl usters and Heavenly Crisp hit the than lower priced competitive brands. First Ship Date is May 09, 2011. candy aisle in May. Pepto Bismol Cherry Chewable Tablets 30 candy as a top brand extension opportunity. count —Another on-the-go option in a great cherry fla - Dreamy Clusters and Heavenly Crisp outper - vor for those who find it difficult to swallow pills. Pepto- formed 80 percent of chocolate initiatives tested Bismol chewable tablets with cherry by BASES on key metrics including overall flavor relieve heartburn, indigestion, liking, repurchase intent, and performance upset stomach, nausea, and diarrhea. versus expectations. Available in 72-count Pepto has an 18.7 share of the stomach remedy category, side kicks (SLIN—142657), Dreamy Clus - and Pepto Bismol is 7-Eleven’s #1 antacid. SRP is $5.29. ters and Heavenly Crisp have a cost of Tampax Plastic Pearl Regular Unscented 20 $35.28 and SRP of $78.48, generating GP$ count —Tampax enjoys a 48.6 share of the feminine of $43.20, Net GP% of 55 percent. care category, and Tampax Pearl is the #1 item within this category. SRP is $6.99. COCA-COLA HEATS UP SUMMER WITH NEW FANTA SLURPEE FLAVOR FRESH TO GO PIZZA STICK 2/$1 DEAL Coco-Cola recently introduced Heat up your fresh food sales with Nestle Professional’s new Fresh Fanta Lime Vanilla Cream Sorbet as To Go Pizza Stick 2 for $1 value deal! With a 53 percent margin, this the Fanta flavor behind Summertime offer will get customers into your store. Pizza Stick is available in Pep - Lime. Slurpee rules among frozen peroni and Cheese—the no.1 flavor—and is customized for porta - beverages, and Coca-Cola flavors bility to satisfy a wide range of are the most desired, so drive sales consumers. It also has easy and margins on the number one heating instructions for Coca-Cola’s Fanta Lime fruit flavored beverage, Fanta. Deliver Vanilla Cream Sorbet. microwaves, and is a high consumption incidence with a great meal at a value powerful teen recruitment brand that has high appeal to Hispan - price that encourages 2/for purchas - Fresh To Go Pizza Stick ics (21 percent of the Fanta Orange incidence; number one pref - 2/$1 value opportunity. es. Order through McLane today and at - erence). Order today through McLane (UIN 556290, SLIN tract customers looking for a value meal! 130662)! 102 AVANTI MARCH | APRIL 2011 Franchise Owner’s Association Events Want your FOA event listed here? National Coalition Board Meetings Franchisees and vendors are invited to participate in FOA activities. Send it to AVANTI at Join the National Coalition Board of Directors at a meeting in your area. [email protected] Member Franchisees are welcome to attend Board Meetings as observers. or call 215 750-0178 San Diego FOA Greater Bay FOA So. Nevada/Las Vegas FOA s Call 520-577-8711 for exact times, meeting location and hotel phone number. Charity Golf Tournament Charity Golf Tournament 12th Annual Golf Tournament t (Location and exact date to be Hiddenbrooke Golf Club Sierra Gold Tavern Greater Hampton Roads FOA National Coalition National Coalition n s announced) Vallejo, California Las Vegas, Nevada Holiday Party Board Of Directors Meeting Affiliate Meeting

e May 2011 June 13, 2011 September 23, 2011 (Location to be announced) Chicago Marriott Downtown Magnificent Mile Disney’s Grand Californian t Phone: 619-291-1809 Phone: 510-589-2575 Phone: 702-769-2301 v December 9, 2011 Chicago, Illinois Anaheim, California Phone 757-870-6709 May 5-7, 2011 October 25 & 26, 2011 E 7-Eleven FOAC Metro New Jersey FOA Greater Hampton Roads FOA

n 2011 Trade Show Summer Picnic Trade Show Suburban Washington FOA f National Coalition National Coalition Odeum Expo Center Merrill Park, New Jersey (Location to be announced) Holiday Party Board Of Directors Meeting

o Board Of Directors Meeting Villa Park, Illinois June 25, 2011 October 13, 2011 (Location to be announced)

e Paris Resort and Casino Disney’s Grand Californian May 4, 2011 Phone: 732-500-8194 Phone 757-870-6709 December 10, 2011 r Phone: 312-501-4337 Las Vegas, Nevada Anaheim, California Metro New Jersey FOA Metro New Jersey FOA Phone: 301-572-6811 a July 15-17, 2011 October 27-29, 2011 v Trade Show So. Nevada/Las Vegas FOA Golf Outing So. Nevada/Las Vegas FOA

d Borgota Hotel and Casino Trade Show Colts Neck Golf Club Holiday Celebration National Coalition Sierra Gold Tavern Colts Neck, New Jersey Atlantic City, New Jersey n

E Sierra Gold Tavern 2011 Convention And Trade Show October 20, 2011 Las Vegas, Nevada June 30, 2011 Las Vegas, Nevada Paris Resort and Casino e May 12, 2011 Phone: 732-500-8194 Phone: 732-500-8194

l December 16, 2011 Las Vegas, Nevada Phone: 702-769-2301 f Phone: 702-769-2301 July 17-21, 2011

a San Francisco/Monterey Bay FOA 7-Eleven FOAC Greater Bay FOA Charity Golf Tournament Holiday Trade Show & Party C Annual Trade Show (Location to be announced) Holiday Inn Skokie

o Embassy Suites Seaside July 11, 2011 Skokie, Illinois

Monterey, California Phone: 650-906-7936 November 10, 2011 May 14, 2011 Phone: 312-501-4337 Columbia Pacific FOA r Phone: 510-589-2575 John Wilkerson Memorial So. Nevada/Las Vegas FOA FOA Of Greater Los Angeles Golf Tournament Table Top Trade Show McNary Country Club Sierra Gold Tavern a 14th Annual Golf Tournament Monarch Beach Golf Club Keiser, Oregon Las Vegas, Nevada Dana Point, California August 5, 2011 November 11, 2011 Phone: 702-769-2301 d May 18, 2011 Phone: 541-290-0331 Phone: 951-766-7490 Pacific Northwest FOA Metro New Jersey FOA TriState FOSE Association Charity Golf Tournament Holiday Party n Trade Show The Club At Newcastle (Location and exact date to be announced) Martins West Newcastle, Washington December 2011 Baltimore, Maryland August 10, 2011 Phone: 732-500-8194 e May 26, 2011 Phone: 253-861-6737 Columbia Pacific FOA l Phone: 301-572-6811 7-Eleven FOAC Annual Holiday Party Arizona FOA Charity Golf Outing Embassy Suites, Portland Airport Portland, Oregon a 20th Annual Golf Tournament Gleneagles Country Club Ritz Carlton at Dove Mountain Lemont, Illinois December 2, 2011 Marana, Arizona August 24, 2011 Phone: 541-290-0331

C June 10, 2011 Phone: 312-501-4337 San Francisco/Monterey Bay FOA Phones: 520-906-8691 TriState FOSE Association Holiday Party 602-703-0711 Charity Golf Tournament Santa Clara Marriott Santa Clara, California San Francisco/Monterey Bay FOA (Location to be announced) December 9, 2011 The Guardian Trade Show September 14, 2011 Phone: 510-657-0672 Santa Clara Marriott Phone: 301-572-6811 Santa Clara, California June 11, 2011 Phone: 510-657-0672

104 AVANTI MARCH | APRIL 2011 AVANTI MARCH | APRIL 2011 105 Franchise Owner’s Association Regional Board Meeting Dates The following dates show planned regional FOA meetings. All franchisees and vendors are invited. To attend, please call or e-mail ahead to verify meeting dates, times and locations. 7-Eleven FOAC Suburban Washington FOA Greater Bay Phone: 847-971-9457 Phone: 301-572-6811 FOA May 26, 2011—Board Meeting June 30, 2011 Phone: 510-589-2575 June 9, 2011—General Meeting September 29, 2011 May 10, 2011 June 30, 2011—Board Meeting June 14, 2011 July 28, 2011—Board Meeting So. Nevada/Las Vegas FOA July 12, 2011 August 18, 2011—Board Meeting Phone: 702-324-0828 August 9, 2011 September 8, 2011—General Meeting May 26, 2011—Meet & Greet September 13, 2011 September 22, 2011—Board Meeting June 9, 2011—Board Meeting October 11, 2011 October 20, 2011—Board Meeting June 23, 2011—Meet & Greet November 8, 2011 November 17, 2011—Board Meeting August 11, 2011—Board Meeting December 15, 2011—Board Meeting August 25, 2011—General Meeting FOA Of Greater Los Angeles September 8, 2011—Board Meeting Phone: 951-766-7490 Greater Hampton October 6, 2011—Board Meeting May 17, 2011 Roads FOA October 20, 2011—Board/ June 21, 2011 Phone: 757-870-6709 Planning Meeting July 19, 2011 June 16, 2011 August 16, 2011 August 18, 2011 Columbia Pacific FOA September 20, 2011 September 19, 2011—Vendor Luncheon Phone: 541-944-0170 October 18, 2011 October 20, 2011 June 17, 2011 November 15, 2011

Southern California FOA San Francisco/Monterey Phoenix FOA Phone: 818-357-5985 Bay FOA Phone: 602-703-0711 May 19, 2011 Phone: 650-996-9479 May 11, 2011 June 16, 2011 May 10, 2011 June 8, 2011 August 18, 2011 June 14, 2011 July 13, 2011 September 15, 2011 July 12, 2011 August 10, 2011 October 20, 2011 August 9, 2011 September 14, 2011 November 19, 2011 September 13, 2011 October 12, 2011 December 15, 2011 October 11, 2011 November 9, 2011 November 8, 2011 December 14, 2011

ADVERTISER INDEX Dr Pepper Snapple Group 6-7 Kellogg's ...... 4 Nestle Confections Siemens/Vertical, Inc...... 84 Edy's/Dreyer's ...... 13 Kraft/Nabisco ...... 21 and Snacks ...... 28 Supreme Protein ...... 11,57 Anheuser Busch ...... 79 Ferrero ...... 27 Kretek ...... Cover 4,62 Nestle Professional ...... 19,31 Swedish Match ...... 5,36 Aon Risk Services ...... 38 Frito Lay ...... 66 Living Essentials ...... 54 Nestle Waters ...... 9 Unilever Good Humor Borden ...... 101 General Mills ...... 14-15 Lonestar Plastics ...... 99 New York Spring Water ....83 Breyers ...... 3,8,58 Cadbury North America ....10 Gulf Coast Software ...... 33 Mars Chocolate ...... 22 Perfetti Van Melle ...... 24 United Brands ...... 95 Coca-Cola ...... Cover 2 Heineken ...... 16 Maruchan ...... 71 Pit Bull ...... 91 Uptime Nutrition ...... 108 Dean Foods ...... 65 Hershey ...... 77 McLane ...... 52-53 Procter and Gamble ....40,44 U.S. Nutrition ...... 61 Detour ...... 103 Hot 'N Spicy ...... 46 MillerCoors ...... 12 Promotion in Motion ...... 89 Whitewave Foods ...... 45 Diageo Guinness ...... 97 Insight Beverages ...... 48 National Tobacco ...... 73 Ruiz Foods ...... 50,51 Wrigley ...... Cover 3 DM Imports ...... 81 Just Born Inc...... 35 Navajo ...... 92 Salado Sales ...... 39

106 AVANTI MARCH | APRIL 2011 108 AVANTI MARCH | APRIL 2011