The northern California convenience retailer prepares to tackle the next phase of its future.
By David Bennett, Senior Editor
Arguably, California sports its own version of what may be perceived as the gold standard: the California Gold Rush, the state’s rich citrus industry, the Golden Gate Bridge, Beverly Hills and maybe even the Golden Warriors’ Stephen Curry.
However, it’s the image of California as the land of opportunity that is something Robinson Oil Corp. sees for its chain of Rotten Robbie Gas Stations, based in Santa Clara, Calif. When asked recently if California defines the style of Rotten Robbie, Tom Robinson, company president and CEO, laughed.
“The question is Rotten Robbie adaptable to California? We try to be. What I mean by that, California brings all sorts of unique challenges. It’s a difficult state to operate in—both at the state level and at the local level. With that said, California also has a whole lot of people, high traffic counts, a good economy, and so it brings a lot of opportunity from a sales standpoint.”
While the company has also adapted to California’s stringent compliance climate, which has impacted the company’s robust tobacco category over the years, not to mention its fuel business, the c-store chain currently is carrying out a plan to develop other areas of its operation, targeting specific areas of opportunity including merchandising and an expanded food offering—all packaged within the concept of a more effective brand.
“A couple of years ago, we looked up and said ‘we need to do a better job with our brand,’—how we present ourselves to our customers, how we present ourselves to our employees,” Robinson said. “What do we want to look like going forward?”
The motivation came from evaluating what other companies were doing in terms of modern conveniences and operational efficiency. The company now is in the process of evaluating all of its locations, upgrading some sites and totally rebuilding others.
“I won’t say that we have thrown ROI out the window,” Robinson said. “We’re going through locations and saying ‘we need to upgrade them.’”
In 2014, Rotten Robbie enlisted 360 Design Group, based in Indianapolis, to revamp its image through new design schemes and colors, a new logo and other aesthetic qualities. The 34-store chain also developed a tagline that reflects the company’s casual style. The new tagline is simple and straightforward, which is also printed on every employee’s nametag: “Trying to be good.”
“I believe companies make a mistake when they say ‘we’re perfect.’ That’s hard to live up to. We are Rotten Robbie, so have a bit to overcome anyway.”
BY THE BAY
The fourth-generation family business was established in the town of Watsonville in 1938 as a combination gas station, bulk plant and oil warehouse, which operated small l bobtail-type trucks to service agriculture and other commercial customers. Robinson Oil today still operates a commercial fueling business as part of its portfolio.
“The Monterey Bay is a significant agricultural area still,” Robinson said.
In fact, several industries flourish in this area, making for a diverse clientele. Figuring out the best merchandising mix for all the communities Rotten Robbie serves is also a challenge. Just ask Reilly Robinson Musser, Tom’s daughter and category manager for the c-store chain.
Musser oversees all of the categories in the center of the store—grocery, candy, salty snacks, alternative, automotive, general merchandise, coffee and e-cigarettes. That includes doughnuts and pastries.
“In our area there is not a chain of bakeries or a distributor that we could use to get product to all locations,” Musser said. “We have to buy from separate doughnut shops for separate stores.”
One is a local bakery that specializes in Mexican pastries, which it delivers to a store daily. Located in the vicinity of Levi’s Stadium—new home to the San Francisco 49ers, the location boasts a mixed bag of patrons who just so happen to enjoy Mexican pastries.
“The area is, however, very industrial; we do a ton of gas volume at that location and a ton of in- store sales,” Musser said. “We get a lot of landscapers/construction types.”
BETTER CHOICES
Of course man does not live by doughnuts alone. Robinson explained the company has followed the industry trend of making up for lagging cigarette sales by offering more foodservice options. In that quest, the retailer saw the opportunity to align those in-store opportunities with its reinvigorated brand.
It is part of Rotten Robbie’s effort to increase in-store sales though a robust coffee program and better foodservice items, which are being developed in concert with constant employee feedback.
One decision, Robinson said, was to offer customers more healthy food choices such as sandwich wraps, salads and other nutritious options. Convincing patrons to associate Rotten Robbie with the idea of choice has paid off in more in-store sales, including its decision to expand its packaged beverage and beer selections.
The company president said the new approach would fall flat without the commitment of dedicated employees, who are encouraged to buy into the company’s goals, which over a short time has become a culture.
“Our turnover is fairly low and our employee longevity is fairly long, and I think that’s important,” Robinson said. “We set up a lot of our programs where we reward employees.”
Rotten Robbie has enacted a shopper program rewarding employees for good customer service, upselling and meeting company goals. The retailer has also instituted programs which empower managers and assistant managers, while soliciting worker feedback along the way.
“I think we could always do a better job,” Robinson said.