Retailers discuss their strategies for developing a successful culture.
On Monday, March 27, the National Advisory Group (NAG) Conference got underway at the JW Marriott in Austin, Texas, with educational sessions on developing your corporate culture and forecasting future foodservice demand.
NAG Executive Director John Lofstock welcomed attendees to the conference.
John Lofstock
“What makes NAG special is that this is truly your association. The educational sessions and information exchange topics were selected directly by the board of directors,” Lofstock said. “When you leave here, you will be a better retailer. The friendships and networking you do over the next few days will be building blocks as you move your company into the future.”
This year’s conference features speakers from more than 20 leading convenience store chains.
“NAG has been around for more than 30 years because of the retailers we serve. We enjoy a following of small, mid-sized and family-owned convenience store chains that are concerned about their future and want to network with other industry leaders who share their same passion for the industry,” he said. “NAG focuses on providing outstanding educational sessions, real-world insights and an opportunity to network with other leading convenience store operators and suppliers, and we have a lot of fun doing it.”
Lofstock announced that while this is his 12th NAG Conference as executive director and his 16th as an attendee, it will also be his last as executive director. “It has been my distinct honor to lead this organization and CStore Decisions for nearly 18 years,” he said. “After 27 years in the trade press, I have a new calling that allows me to stay in the industry and continue working with the retailers that I so much admire.”
Vernon Young
NAG Chairman Vernon Young, president of Young Oil, also welcomed attendees to the conference. “Adding to what John has already said, we have a great agenda on board. NAG is a great, helpful group. One of the things I really enjoy about it is any question you’ve got, you’ll probably get a good answer. If you have a burning issue you need an answer on, someone here will be glad to help you with that.”
Developing Your Corporate Culture
In a burning issue session on “Developing and Refining Your Corporate Culture,” speakers Greg Ehrlich, president, Beck Suppliers; Kevin Smartt, CEO TXB Stores; and Stephanie Stuckey, CEO, Stuckey’s, discussed how they have been successful in defining and developing the culture at their chains and their advice for how other chains can start the process.
Stuckey shared the history of Stuckey’s. Once a renowned brand started by her grandfather, Stuckey’s changed after her father sold the company and outside owners didn’t do a good job maintaining the brand. Stuckey repurchased her family’s brand three years ago, and she is now reinventing the brand and culture.
Stuckey said she likes to start her mornings working on the front lines beside employees and connecting with her team. Listening to employees can go a long way.
“It’s amazing if you’re on the front lines working with them how they’ll open up and tell you things in the company they’d like to see be better,” Stuckey said.
Smartt shared his vision as he began the Texas Born (TXB) brand, celebrating the values and diversity of Texas, and the evolution from Kwik Chek to TXB.
“Buildings change, logos change, but who we are doesn’t change, and that’s what we want (employees) to know,” he said.
“We use the word family… and we mean it sincerely,” he said. “Most employees spend 50-60% of their time with their work family. It is important that people believe and connect to company values.”
Smartt said, in his opinion, how you lead is your culture. Knowing your leadership principles and ensuring consistency are key, he said. Smartt discussed his strategies for developing the company culture from the hiring process to training and beyond.
Ehrlich discussed the process of building a culture, and the journey FriendShip Stores has been on for the past six years when FriendShip decided to refresh its core brands and introduced the FriendShip Kitchen concept.
“Culture is so much more than vision, mission and core values,” Ehrlich said. “If you have a great place to work culture, you’ll make decisions you would never make if you didn’t make that the moral compass of where you were headed.”
Ehrlich posed questions to attendees to help them assess their culture. He stressed that alignment from upper management to the front lines on what is important is key to maintaining culture. He also shared the process of including the next generation in decisions to ensure a seamless transition of culture between generations.
Overall, developing and enforcing the culture must be a priority for the new culture to succeed. Leadership and teamwork standards must be in alignment and creating trust is crucial if the culture is going to succeed.
Foodservice panelists discuss innovation in food.
Understanding Foodservice Customers
In a session on “Understanding Foodservice Customers: Forecasting Future Demand,” speakers Ernie Harker, brand therapist, Ernburn Brands; Brian Scantland, vice president fresh food and proprietary beverages, BP; Derek Thurston, director of food service operations, Cliff’s Local Markets; and moderator Jessica Williams, founder and CEO, Food Forward Thinking shared insights on foodservice innovation.
Scantland discussed the importance of creating space for new, forward-thinking ideas. Foodservice is an important area of innovation for c-stores today.
Harker pointed to the changes impacting the industry as electric vehicles (EV) grow.
“In order for us to survive with the electric vehicle (EV) model we have to turn our model upside down. What if our model now is we need to spend 30 minutes with each customer to charge? And why would they come to a c-store vs. a mall or nail salon, etc., where they already spend 45 minutes to an hour?” Harker said. “We have to come up with other reasons to get people to our stores, and that means food. … C-stores have an opportunity to have products our quick-service restaurant (QSR) competitors don’t have.”
Thurston highlighted Cliff’s Local Market’s foodservice offerings, which include made-to-order foods, such as pizzas, wraps, sandwiches and salads. Everything is made in house. The chain also has a robust gran-and-go business.
“Right now, 60% of our sales are from grab and go and 40% are made to order,” Thurston said.
Cliff’s features 20 convenience locations in upstate New York. Thurston looks to what is working for other c-stores, through reading the trade press and attending events. At the Young Executives Organization (YEO) conference at Nouria, Thurston had the chance to spend time in Nouria’s test kitchen, which provided valuable insights.
Paying for a professional food photographer and food stylists to take photos of Cliff’s food offerings has helped the chain to drive stronger engagement among customers and employees. “Our staff is so proud. When we bring out a new product, you can feel the energy and excitement,” he said.
Harker agreed that high-quality photography can take your food program to the next level.
“I just need to see how beautiful (the food) is,” Harker said. “The big boys do this all the time, and we think it’s unobtainable… it’s not. That level of photography … now anyone with an iPhone can do it, if they know how to do the lighting and ingredient substitutions (that film well).”
“One photographer I spoke with said you need to be able to hear the food,” added Williams. “That’s what QSRs are doing really well, and that’s what c-stores need to step up and compete on with some of your products,” Williams said.
Keeping foodservice simple can still be a great place to start.
“When we think of foodservice, we go right to elaborate food, and that can be very intimidating for a small operator,” Harker said.
He suggested taking what you usually offer and spicing it up. Harker shared an example of a store that took hot dogs to the next level. “We can take normal mundane things and add better branding to it. …” he said.
He added, “If we focus on everything, we focus on nothing.”
Overall, it’s important for c-stores to believe in their foodservice products and convey that to the customer in how they go to market.
Information Exchanges & Store Tours
Following the educational sessions, retailers had the chance to participate in information exchanges — which are considered the heart and soul of NAG — to share ideas and gain advice on burning issues from non-competing retailers.
In the afternoon, attendees boarded buses and embarked on store tours around the Austin area, including TXB, Buc-ee’s and SparkCognition HyperWerx. In the evening, attendees had free time to explore Austin.
The NAG Conference continues through Wednesday, March 29.
