http://community.csdecisions.net/ Convenience Store Decisions Community Forum: Ask the Experts en Tue, 13 May 2008 21:04:00 +0000 http://community.csdecisions.net/topic/22#post-42 Wed, 19 Mar 2008 02:14:47 +0000 CaseySmith 42@http://community.csdecisions.net/ <p>Hi Dimitris--</p> <p>Is that Greek? Because if it is, so am I! (Greek name is Katarina Costaverro, however, I am also known as Casey Smith--In reference to your breakfast stuff and counter pizza, have you considered looking into Hot Stuff Foods? We take care of equipment, supplies, teach you how to do financials, have a trainer to help you and your staff get on board, etc...please give me a call at 605-336-6961 at ext. 2206 and we can talk about it. If I can't help you, I am certain I can find someone within our organization to help.</p> <p>Thank you so much Dimitris,</p> <p>Casey (Katarina) Smith </p> http://community.csdecisions.net/topic/23#post-41 Thu, 06 Mar 2008 11:31:06 +0000 MMoore 41@http://community.csdecisions.net/ <p>Hi, I am looking for a resource for operating cost data.<br /> Specifically; electricity, gas, water, waste disposal.<br /> Can anybody point me in the right direction? </p> http://community.csdecisions.net/topic/29#post-40 Wed, 05 Mar 2008 02:48:21 +0000 hadasb 40@http://community.csdecisions.net/ <p>I'm looking for the avarge number of inventory turns per industry, I'm mainly intrested in the system market.<br /> In addition I would like to know the calculation method which was used.</p> <p>Thanks! </p> http://community.csdecisions.net/topic/23#post-38 Wed, 23 Jan 2008 14:29:11 +0000 RonPSanticola 38@http://community.csdecisions.net/ <p>The economics of C-Stores are , in my view, most sensitive to the price of fuel. Inside sales are less sensitive in overall volume than say, a specialty retailer would be.<br /> The overall traffic driver, fuel, has gone up in price so much that the average consumer, who knows they are spending more money at your store, thinks they are helping you. </p> <p>Most consumers have very little idea of the real margins in gasoline sales, and would be shocked how little the retailer actually makes. </p> http://community.csdecisions.net/topic/26#post-36 Sun, 30 Dec 2007 16:23:26 +0000 admin 36@http://community.csdecisions.net/ <p>I need to identify chains with 5 to 50 c-stores that sell fuel/gas.</p> <p>Where can I get a list by state for the headquarters location??</p> <p>thanks </p> http://community.csdecisions.net/topic/25#post-35 Sun, 30 Dec 2007 16:22:48 +0000 admin 35@http://community.csdecisions.net/ <p>Hi There,</p> <p> I am planning to build a brand new gas station/convenient store in Ga. I am looking for local suppliers who can help me</p> <p> buying new equipment such as, fiber glass tanks, MPDs, canopy and all other related stuff. I have located general contractors who</p> <p> can do the bulding construction. I need this info "ASAP. Please respond .</p> <p> Thank You</p> <p>psharam </p> http://community.csdecisions.net/topic/24#post-34 Sun, 30 Dec 2007 16:22:29 +0000 admin 34@http://community.csdecisions.net/ <p>I need to find someplace that can help me research how many sales are possible for a given product. I am working on a sales forecast for a new store and need some data. Anything will help.</p> <p>Thanks in advance! </p> http://community.csdecisions.net/topic/23#post-33 Sun, 30 Dec 2007 16:22:10 +0000 admin 33@http://community.csdecisions.net/ <p>Hi AC, you might want to look at the report by David Bishop - it doesn't answer your question directly, but it will provide you with some insight.</p> <p><a href="http://www.csdecisions.com/Content/Site701/Whitepapers/01_01_2000/TheStateofFoods_00000043484.ppt" rel="nofollow">http://www.csdecisions.com/Content/Site701/Whitepapers/01_01_2000/TheStateofFoods_00000043484.ppt</a></p> <p>If you have troubles with the link, you can go up to to the home page on CSDecisions.com and go to the link in the Foodservice Show and (click on the David Bishop Foodservice 2007 and beyond).</p> <p>All my best,</p> <p>--BJG </p> http://community.csdecisions.net/topic/23#post-32 Sun, 30 Dec 2007 16:22:06 +0000 admin 32@http://community.csdecisions.net/ <p>Hi, I was wondering if anyone had any info or best guess on how much of c-store sales is related to the current economic conditons. I am pretty sure that a good majority of C-store sales are pretty sensative to the economy but I was wondering if anyone know exactly how much</p> <p>thanks</p> <p>AC </p> http://community.csdecisions.net/topic/22#post-31 Sun, 30 Dec 2007 16:21:47 +0000 admin 31@http://community.csdecisions.net/ <p>Hi evryone</p> <p>Great site with great advises..I am new to the convenience store "world" but I am very interested in opening one close to were I live in Chicago. I have found an amazing I belive location. The store front is in the ground level of a 370 unit building and is around 2200 sf. The lanlord is asking $4000 plus another $3-$4 per sf for CAM and taxes. As I said is a corner unit in a high populated area in new neighborhood. The closest White hen pantry is about 7 blocks from that location. Now the storefront is situated in one of the busiest streets in the neighboorhood with constant traffic. Right 2 blocks away is a School with around 5000 students or more, and accross from the store is a huge police academy bulding, a fire department, a salvation army headquatrers. and a park near by. Also right to the back of that bulding is another building with around 150 condos as well as other residential buildings and homes. I will like to use the same concept as the white hen/711 but I am still trying to evaluate the start up cost. I am thinking to have 10-12 doors for beverages and another 2-3 freezers. Coffee station with fravor coffes and pop machines etc.I will also carry deli meat to prepare paninis, sandwiches, as well pre made breakfast stuff and counter pizza. I am thinking that I will need around $150.000k to start. Is that a good estimate? what kind of lease should I sign? should I lease the equipment? The landlord said he will give me 4 months free rent to fix the place up. Do you have any good suggestions to advise.. I just dont want to loose this spot because I am 99% that the location is awsome for a C-store. Thank you in advance.</p> <p>Dimitris </p> http://community.csdecisions.net/topic/21#post-30 Sun, 30 Dec 2007 16:21:22 +0000 admin 30@http://community.csdecisions.net/ <p>i am considering renting a vacant store for soft serve and limited convenience store. it is in an area of about 2000 families on a road that is moderately busy. it only has a total of about 7 parking places. rent would be 1250 a month. it is across the street from a private lake that the community can join to bring kids to swim or the residents can have a motor boat on. i would have to quit my job yet bring in the same salary to survive of about 3000./month. do you think i could cover this? </p> http://community.csdecisions.net/topic/20#post-29 Sun, 30 Dec 2007 16:20:36 +0000 admin 29@http://community.csdecisions.net/ <p>I purchased a liquor store 3 years ago. It has not been updated since the 70’s. I am curious if a remodeling a store will translate into more sales? The store is as clean as possible and I work 7 days a week open to close with help and the customers I believe appreciate this. None of the other stores within 10 miles are any better looking. What would be the best updates to get the most bang for my buck?? </p> http://community.csdecisions.net/topic/19#post-28 Sun, 30 Dec 2007 16:20:11 +0000 admin 28@http://community.csdecisions.net/ <p>I have seen a lot of discussion on gift cards. Do any of them cost less than the face value? Are they just being offered in C-stores to drive traffic? </p> http://community.csdecisions.net/topic/18#post-27 Sun, 30 Dec 2007 16:19:50 +0000 admin 27@http://community.csdecisions.net/ <p>Mike are you looking at purchasing an existing business ? If so what do there numbers look like ?</p> <p>I have run a profitable c-store with no gas with 11,500 vpd. more info on location is really needed.</p> <p>population 1 - 2 mile radius, business accessibility,local zoning regulations on signage, any competition.</p> <p>Scott </p> http://community.csdecisions.net/topic/18#post-26 Sun, 30 Dec 2007 16:19:46 +0000 admin 26@http://community.csdecisions.net/ <p>I am looking at a convenience store (no gas) on a fairly busy road but in a rural location. The traffic count states over 17,000 vehicles/day. Will this be enough to sustain a business as there will be no pedestrian business?</p> <p>Thanks -Mike </p> http://community.csdecisions.net/topic/17#post-25 Sun, 30 Dec 2007 16:19:15 +0000 admin 25@http://community.csdecisions.net/ <p>Should I be considering gift cards as a long-term profit center? What kind of future does this SKU have in c-stores?</p> <p>---</p> <p>Gift cards are a segment with still a lot of upside potential for retailers. First, according to the National Retail Federation (NRF), gift cards are now the third most requested gift behind media products and apparel. Second, the gift card industry is growing at an explosive rate driven by broader retail availability and wider consumer usage. In fact, a recent survey conducted by the NRF revealed that holiday sales are up approximately 34% versus last year and that nearly eight out of ten consumers planned to purchase at least one gift card this holiday. There is also less liability with gift cards as retail shrink is mitigated by the fact that the cards' value is not present until they are scanned by a cashier. </p> http://community.csdecisions.net/topic/16#post-24 Sun, 30 Dec 2007 16:18:23 +0000 admin 24@http://community.csdecisions.net/ <p>I am getting killed by taxes and Native American smoke shops. Should I expect anymore manufacturer price hikes on cigarettes or smokeless tobacco?</p> <p>---</p> <p>Based on recently announced program changes in cigarettes and the competitive dynamics at play now in moist smokeless, it's reasonable for retailers to expect additional price increases in both categories. In cigarettes, we'd expect that RAI would be motivated to follow PMUSA's decision to reduce promotional funding. In moist smokeless, we'd expect Conwood to take another list price increase on Grizzly, which would likely trigger USSTC to match the increase on its Husky brand. </p> http://community.csdecisions.net/topic/15#post-23 Sun, 30 Dec 2007 16:17:34 +0000 admin 23@http://community.csdecisions.net/ <p>Can anyone point me to some good web sites or pages where I can learn about ethanol? </p> http://community.csdecisions.net/topic/14#post-22 Sun, 30 Dec 2007 16:17:07 +0000 admin 22@http://community.csdecisions.net/ <p>I have worked in th c-store industry for almost 20 years (15 as a manager), and no matter how carefull you are, how many backround checks you do, which by the way only tell you that the person has not been caught doing anything wrong, you need to set policies in place and follow through, termination is not enough they will just go to the next place and keep doing it, we explain up front during the interview that the cameras are not for decoration and that we do watch the videos and if you still want to take the chance of doing something wrong you will be arrested and charges will be brought against you no matter how small you may think the theft is. </p> http://community.csdecisions.net/topic/14#post-21 Sun, 30 Dec 2007 16:17:03 +0000 admin 21@http://community.csdecisions.net/ <p>I recently caught an employee stealing and fired him on the spot. I’m wondering now how most managers handle this situation and what I can do to prevent it from happening again?</p> <p>---</p> <p>It’s a well-known fact that employee theft accounts for most shrink and the most common remedy is termination. Unfortunately, the strategy of firing employees for stealing has turned out to be mostly ineffectual for three reasons: (1) It sends a message to present employees that, if you get caught stealing, the worst that will happen is termination; (2) the terminated employee and your present employees get a little smarter about how best to abuse the system; and (3) the person you fired can just go down the street and get hired at another store.</p> <p>Why does this scenario play out over and over again? Because there is no real consequence for stealing and because subsequent employers either don’t bother to check references or, when they do try to check, find that previous employers feel they are under company policy “gag orders” that prevent them from discussing how former employees performed on the job.</p> <p>An interesting recent development has been the willingness of more and more companies to take a hard line on employee theft by actually prosecuting offenders. As you would expect, those that have employed this measure have since seen a dramatic reduction in shrink.</p> <p>Before matters end up in court, however, your first line of defense should be screening job applicants for honesty (learn how to position applicants to tell you the truth and ask honesty questions in the interview process, test for values and work ethics). Your second line of defense is thorough reference, criminal background and credit checks. Finally, when new employees come on board, have them sign a Reference Release form. This document authorizes your company to share job performance information with future employers. It is a “hold harmless” statement that lets your new employees know that the past can indeed come back to haunt them.</p> <p>You’ll find more information on interviewing for honesty and a sample Reference Release form in my book, "Hire Tough, Manage Easy," which is available at <a href="http://www.melkleiman.com." rel="nofollow">www.melkleiman.com.</a><br /> Mel Kleiman CSP<br /> President of Humetrics<br /> <a href="http://www.melkleiman.com" rel="nofollow">www.melkleiman.com</a><br /> <a href="http://www.humetrics.com" rel="nofollow">www.humetrics.com</a><br /> <a href="mailto:mkleiman@humetrics.com">mkleiman@humetrics.com</a> </p> http://community.csdecisions.net/topic/13#post-20 Sun, 30 Dec 2007 16:15:22 +0000 admin 20@http://community.csdecisions.net/ <p>I completely concur with James’ advice to never interview from a resume and to require every applicant to complete your application form. That form should include a clause that makes it clear that any lies or omissions on the application and/or on any supporting documentation are grounds for immediate dismissal. (If you have a completed application on file for this person, review it to see if a clause like this is on it before you talk with him.) Also check to see if the supposed lie was reflexed in the application blank.</p> <p>Then, before you decide to take the risk of keeping him on, ask yourself why he is telling everyone he lied to get the job? Is this something he is proud of and, if so, what else is he lying about? Have you considered the fact that you will be setting a precedent that may come back to haunt you? And, finally, I’ve seen it be the case too many times where the dependable, presumably honest, and well-liked person turns out to be the employee from hell.</p> <p>Mel Kleiman CSP<br /> Mel Kleiman CSP<br /> President of Humetrics<br /> <a href="http://www.melkleiman.com" rel="nofollow">www.melkleiman.com</a><br /> <a href="http://www.humetrics.com" rel="nofollow">www.humetrics.com</a><br /> <a href="mailto:mkleiman@humetrics.com">mkleiman@humetrics.com</a> </p> http://community.csdecisions.net/topic/13#post-19 Sun, 30 Dec 2007 16:15:16 +0000 admin 19@http://community.csdecisions.net/ <p>I just found out that one of my best and most popular employees lied to on his resume and in his interview. He is never late, his drawer is never short and he is looked up to by all the other employees. But what bothers me is that he told everyone he lied.</p> <p>---<br /> '<br /> You do not say in your question what your employee lied about. If he is a convicted murderer, sexual predator, bank robber, etc., he should obviously not be retained. However, you will find that most applicants lie on their resumes and many lie in their interviews to get hired. Further, hiring should not be done from resumes, rather he should be filling out your application. This makes misrepresentations much easier to spot. In your situation, unless his lie is so bad that you cannot keep him on the payroll, I suggest you have a meeting with him in private and explain that you are retaining him despite the fact that you know he misrepresented himself during the hiring process. But you are retaining him only because of his performance. </p> http://community.csdecisions.net/topic/12#post-18 Sun, 30 Dec 2007 16:14:31 +0000 admin 18@http://community.csdecisions.net/ <p>For conversion to E-85, checking with the manufacturer of the tank, piping, and dispensers to ensure that they are compatible with alcohol isn’t enough. Until the manufacturer’s equipment is specifically UL listed for use with E-85, using the equipment may cause your liability insurance carrier to drop you! </p> http://community.csdecisions.net/topic/12#post-17 Sun, 30 Dec 2007 16:14:26 +0000 admin 17@http://community.csdecisions.net/ <p>I recently read a story in Convenience Store Decisions that there is a considerable cost for upgrading tanks to accommodate ethanol products. Can you explain what the different requirements are for gas with a 10-15% ethanol versus E85 and a rough estimate.</p> <p>---</p> <p>For converting an existing gasoline tank to 10-15% ethanol the main objective is to ensure that the tank doesn't contain any water or debris. For conversion to E-85 you must ALSO check with the manufacturer of the tank, piping, and dispensers to ensure that they are compatible with alcohol. The cost to remove water and debris from your tank will vary according to the size and condition of the tank and the local contractor availability, but may be around $1000 plus waste disposal fees. The cost for thorough tank cleaning for E-85 conversion may be higher. If your tanks are fairly new and don't contain much water or debris your costs could be lower. </p> http://community.csdecisions.net/topic/11#post-16 Sun, 30 Dec 2007 16:13:10 +0000 admin 16@http://community.csdecisions.net/ <p>In Ideas 2 Go, NACS has profiled a few stores that do either catering or delivery, and do it very well.</p> <p>For delivery, the best example I can cite is Manley’s Mighty Mart, based in upstate New York: <a href="http://www.manleysmightmarts.com." rel="nofollow">www.manleysmightmarts.com.</a></p> <p>For catering, NexStore MarketPlace in Boca Raton, FL does catering to such a high end that it even caters weddings: <a href="http://www.nexstoremarket.com." rel="nofollow">www.nexstoremarket.com.</a> And The Market, based in Charlottesville, VA, also does high-end catering: <a href="http://www.tigerfuel.com." rel="nofollow">www.tigerfuel.com.</a> </p> http://community.csdecisions.net/topic/11#post-15 Sun, 30 Dec 2007 16:12:59 +0000 admin 15@http://community.csdecisions.net/ <p>What opportunities exist in the market place to package existing deli menu items into a catering business? Any thoughts on delivery? Are there selling opportunities in the convenience market place to offer a catering and delivery service?</p> <p>---</p> <p>I am not familiar with C-stores that offer a catering and delivery service. With the right deli items, it seems that catering would be a natural addition to sales. I would strongly recommend that you talk with other catering companies before you set this up. Try to find someone who is not going to be in direct competition with you. They probably have a trade association.</p> <p>I'm no expert in delivery, but would hope that you would test this to see if it is profitable. Pizza places and Chinese restaurants seem to do OK with it, but that doesn't mean that a deli would make money with delivery - unless it is done right!</p> <p>With every part of your business, "Customer Service" is the most important ingredient. Make sure you deliver "Service With Shazzam!"</p> <p>Good luck!</p> <p>Mark Mayberry<br /> <a href="http://www.MarkMayberry.com" rel="nofollow">www.MarkMayberry.com</a> </p> http://community.csdecisions.net/topic/10#post-14 Sun, 30 Dec 2007 16:12:08 +0000 admin 14@http://community.csdecisions.net/ <p>More and more supermarkets and hypermarts are getting into the gasoline business and are undercutting our margins. Is this trend ever going to slow down?</p> <p>---</p> <p>All items that has frequent repeat sales such as groceries, prepared food and gasoline is "trending" into every retailer's assortment. This trend has the same magnetic appeal to supermarkets and supercenters as it does to c-stores and it isn't apt to slow down. Big retailers have developed a variety of marketing schemes to capitalize of the appeal of their "cheaper" gasoline. Kroger's plan of selling fuel for 10 cent a gallon off regular price to its customers based on their grocery purchases appears to be quite effective. The trend of adding gasoline to big retailers' assortments will continue without remorse until fossil fuel gives way to some other energy source. May c-stores offer "it" first. </p> http://community.csdecisions.net/topic/9#post-13 Sun, 30 Dec 2007 16:10:55 +0000 admin 13@http://community.csdecisions.net/ <p>We have a number of items on our menu that feature spinach, but we are afraid to make that spinach available because of the recent outbreak. Is washing spinach enough to make it safe or should I avoid spinach products entirely for a while?</p> <p>----</p> <p>There are a couple of options for you to choose:</p> <p>1. Hold on offering spinach based menu items for a while. It is going to take some time before concerned consumers return to this product.</p> <p>2. Make a big deal out of washing all of your fruit and veggies that are included in recipes. Tell your customers what you do to insure that your menu is not only tasty and nutritious, but also safe for consumption. </p> http://community.csdecisions.net/topic/8#post-12 Sun, 30 Dec 2007 16:09:53 +0000 admin 12@http://community.csdecisions.net/ <p>Please tell me what is the industry average is for inventory turn in the basic categories such as, Foodservice, Beer/Wine,Cigarettes, Grocery,Tobacco,Soda. We seem to be keeping to much inventory on hand. We have 15 stores and keep a very tight control on inventory.</p> <p>---</p> <p>Apart from monitoring product movement, gross margin dollars and gross margin percentages, managing inventory levels can make or break a category. There are several key metrics to consider with regard to the management of inventory and overall working capital:</p> <p> 1. Inventory Turns (Inventory Turnover): The number of times that a company's inventory cycles or turns over per year.<br /> 2. A frequently used method is to divide the Annual Cost of Sales by the Average Inventory Level. Example: Cost of Sales = $6,000,000. Average Inventory = $1,000,000. $6,000,000 / $1,000,000 = 6 Inventory Turns<br /> 3. Gross Margin Return on Inventory Investment (GMROI): This measure of inventory productivity expresses the relationship between your total sales, the gross profit margin you earn on those sales, and the number of dollars you invest in inventory. GMROI is expressed as a percentage or a dollar multiple, telling you how many times you've gotten your original inventory investment back during one year. The formula for finding GMROI percentage is: GMROI (%) = gross margin (%) x [sales ÷ average inventory @ cost]<br /> 4. Aged Rebates: Days outstanding in vendor rebates – number of total days of vendor rebate receivables</p> <p>Industry averages for each of these can vary widely from chain-to-chain and year-to-year due to the following reasons:</p> <p> 1. The chain’s promotional focus on product – i.e. promote coffee and the inventory turns faster.<br /> 2. Significant changes in to consumer buying patterns – i.e. cigarette price increase that adversely impacts volume.<br /> 3. SKU Management – i.e. reduced SKU’s can turn inventory faster but risks out-of-stocks; customer preferences.</p> <p>That being said, here are some general inventory turn ranges that NACS has reported over the years:</p> <p> * Tobacco: 9 to 16 times a year<br /> * Beverages: 12 to 18 times a year<br /> * Beer: 12 to 24 times a year<br /> * Wine: 7 to 15 times a year<br /> * Automotive: 4 to 8 times a year<br /> * Grocery: 5 to 10 times a year<br /> * Foodservice (depends on what falls into this category): 19 to 38 times a year </p> http://community.csdecisions.net/topic/7#post-11 Sun, 30 Dec 2007 16:08:25 +0000 admin 11@http://community.csdecisions.net/ <p>It is understnadable to be frustrated about fuel prices, and customers do need a vent at times. Sometimes you just have to grin and bear it, but I have never been afraid to point out to a customer, especially one who doesn’t seem to want to quit, and who may be buying soda or, God forbid, bottled water, if he might think about sometime what he is paying for that. It usually at least makes them think in a different perspective. </p>