The level of technological advancement available to convenience store retailers is reaching new heights. With artificial intelligence (AI) being the talk of the tech scene in a way it never has before, c-store operators are actively researching how the technology can help them increase efficiency.
C-store operator Re-Up came onto the playing field already discussing how it can harness AI and use it to manage its stores.
“(The c-store is) a great place for retail tech innovation to happen. It’s easier for us to implement these crazy things. …” said Michael Salafia, co-founder and CEO for Re-Up, which operates nine sites in Florida, Mississippi, Alabama and Georgia.
For its implementation of and vision to use AI in its stores, such as the development of a robotic kitchen, and its dedication to investing in technology down the line, CStore Decisions is recognizing Re-Up with a Tech Innovation Award.
Embracing Technology
Re-Up, headquartered in Miami Beach, Fla., hasn’t been on the scene for long. It opened its first six sites in 2023, and an additional three locations so far in 2024.
Salafia and Co-Founder and President Narendra Manney worked together to develop Re-Up and both brought strong backgrounds in technology to the table. Manney, with over 20 years of experience in the gas station and convenience store industry, has owned 50-plus stores throughout his career.
The Re-Up team has made integrating AI a strong part of its mission.
“Re-Up applies multiple types of AI-powered technologies to automate processes within stores and guide business decisions,” said Salafia.
For example, Re-Up uses proprietary AI predictive analytics tools in the business to assist with site selection and sales forecasting.
“We have our own proprietary algorithm for scoring these stores and figuring out a very high-level business plan. That’s how we’re able to sort through the market so fast and make all of these acquisitions the way we’re doing it because we’re very good at analyzing the property, coming up with a business plan and sticking to a disciplined framework as to what will work and what will not work,” said Salafia.
Recently, Re-Up has also been preparing to open a self-contained, fully autonomous store in Miami. The chain has been providing input to the company responsible for the technology, and the store will be ready to launch in the next couple of months.
At the store, customers will tap a credit card, which preauthorizes them to enter. They can then begin to shop for the items they’re looking for.
“The ceiling has like a million cameras that all have this AI visual recognition technology. We’re clocking 98% accuracy rate on this,” said Salafia.
On a smaller scale, Re-Up decided to initiate a pilot program for a fully automated coffee machine that gives the customer the barista experience in 40 seconds.
“We’re very confident, if they’re a Starbucks customer, once they try (this new machine), if it’s more convenient, they’ll just go to the Re-Up,” said Salafia.
Rallying For Robotics
One of the largest endeavors Re-Up is currently in the process of is the installation of robotic kitchens in its stores.
The company partnered with Nala Robotics, which has spent years in research and development on solutions for touchless equipment. Re-Up was involved in many of the test runs, visualizing how to integrate the technology into the c-store space. And, in one or two months, the robotic kitchen equipment will be in Re-Up stores.
“This can go only in selected stores. It depends on the size of the store, and there’s other logistics involved. Apart from that, we want to do as much as possible in all the stores,” said Manney.
“The beauty of the way we’ve designed our program is that it’s agnostic to the food product. Any individually flash-frozen food product can go. Anything that you put in the deep fryer can be prepared using our robot. So for our Re-Up food program, we focus on the gas station tried-and-true: french fries, fried chicken tenders and chicken wings,” added Salafia.
The first site with a robotic kitchen is in the process of being built inside of a self-contained food trailer in the parking lot of its Melbourne, Fla., site. Live ordering will be an option for customers, but a food warmer will be inside of the established Melbourne location, allowing customers to choose pre-prepared items.
“In this case, we’re really confident that people will drive up for the food cart experience, and we don’t have the square footage inside of the store. Now we’re starting our pilot project with solving a real challenge,” Salafia elaborated. “How can you add additional EBITDA (earnings before interest, tax, depreciation and amortization) to a gas station that has a tiny convenience store?”
In addition to the robotic kitchens, another of Re-Up’s goals is installing humanoid robots at the checkout counter.
The idea is that humans can focus on managing the store while the robot completes menial tasks.
“It’s a crazy idea, but we will allow (the robot) to test at one of our counters to help the checkout guy. And this will also drive a lot of traffic to us. … So we are confident about our business improvement,” said Manney.
