Uncharted Territory

As the novel coronavirus began its spread, convenience retailers changed course to protect employees and customers.

Uncharted Territory

May 2020   minute read

By: Kim Stewart

Coronavirus, a word that wasn’t in our lexicon just three months ago, now sticks to the tongue with a bitter taste. Stronger words like “resilient” and “pivot” have come alongside it as buffers, while the world waits for this unwelcome visitor to depart.

The COVID-19 pandemic has slashed the global economy, ravaged oil prices and upended what once passed as normal in our everyday lives, yet a determined spirit remains. And nowhere is this more evident than in the convenience and fuel retailing industry.

Deemed essential businesses in the United States by the Department of Homeland Security in March, convenience stores and gas stations across the country have rallied to support their employees, ratchet up safety and discover new ways to meet the needs of their customers. Entrepreneurship is the lifeblood of the industry, and in this period of phenomenal upheaval, we’ve seen operators small and large identify problems and devise solutions on the fly.

From Kenosha, Wisconsin-based Lou Perrine’s creating to-go meal boxes of grocery staples and special treats, to Tulsa, Oklahoma-based QuikTrip introducing a forecourt pickup service for household essentials, to the San Carlos 76 gas station in San Jose, California, pumping customers’ gas and delivering food and beverage purchases pumpside, retailers large and small are pivoting to shelter their businesses and supply their customers in this bewildering new age.

We are doing everything we can to keep stores open and stocked with the products local communities need, while also keeping customers safe.

Retailers were taking action in three key areas—human resources, operations and sales—in March and early April as the pandemic unfolded in the United States.

Human Resources

C-store employees are on the frontlines of the pandemic interacting with customers, and employers are supporting them with enhanced emergency leave, extended benefits, pay increases and free meals.

Travis Sheetz, president and COO, in an open letter to customers on March 13, called team members “the heart and soul” of Sheetz, stressing that “their safety and well-being is of top priority to us, and of particular concern.” He added, “While we are driven to remain open and available to you, we will not jeopardize anyone’s health or safety in that effort and must follow the direction of local, state and federal health agencies and officials. As a last resort, some stores could close. At a minimum, you may experience staffing shortfalls, so we thank you for your support of our team members.”

Casey’s, Enmarket, High’s, Kum & Go, Love’s Travel Stops and Country Stores, Pilot Company, RaceTrac, Rutter’s, Sheetz, VERC Enterprises and Wawa were among the chains paying an additional $2 to $3 per hour to associates. Many awarded bonuses to store managers and district managers. Love’s and other employers added free meals for employees during their shifts.

To keep employees and customers safe, managers watched for any team member showing signs of illness and directed them to go home and seek medical advice. “If an associate experiences any symptoms of COVID-19, we encourage them to be tested,” Kyle J. Krause, chairman and CEO of Kum & Go, said in a social media post in early April. “And regardless of their health coverage status, should there be a cost associated with testing, we will cover it.” He added that the Des Moines, Iowa-based company would compensate employees for their normal work schedules in case they need to self-quarantine for 14 days. 

As states imposed stay-at-home orders, retailers moved swiftly to issue access letters to identify c-store employees as essential staff in case law enforcement officers questioned why they were on the road.

Operations

Cleaning practices across the board were put on steroids because COVID-19 can remain on surfaces for days. Touchscreens, push plates, railings, switches, countertops, door handles and food contact surfaces received thorough cleanings. At Kwik Chek, for instance, stores that sell fresh prepared food were sanitizing every 15 to 30 minutes, and non-food stores a minimum of every two hours, CEO Kevin Smartt shared on Twitter. On the forecourt, employees at the Spicewood, Texas, chain were sanitizing fuel dispensers every 15 minutes, Smartt said in an early April tweet.

Gas stations across the country encouraged customers to use freely offered plastic gas mitts and hand sanitizer at the pumps, although some stores had to provide them on demand due to theft. In a national survey of U.S. convenience store owners conducted by NACS in late March to April 1, nearly one in three (31%) retailers said they were providing hand sanitizer at the pump, and 20% were providing gloves. The Spinx Company, for example, got “two thumbs up” from a customer on Twitter for “keeping the Purell filled” at one of the Greenville, South Carolina-based chain’s stores.

An early move at c-stores nationwide was to halt self-serve coffee, fountain beverages, bakery items and pizza slices. Roller grills switched off, and bring-your-own drink tumblers were banned. Grab-and-go and made-to-order food and beverages remained for sale. In-store seating areas were cordoned off to comply with state guidance to limit people congregating in groups bigger than 10 as governors in multiple states ordered bars and restaurants to close to dine-in patrons in an effort to slow the spread of the virus.

In the NACS survey, 66% of respondents said they had closed public seating and dining areas, and 45% had removed customer access to self-serve foodservice such as coffee, fountain drinks, bakery items and roller grill. (Note: Not all retailers surveyed had foodservice operations.)

The demands of constant cleaning coupled with staffing issues forced many stores—7-Eleven, Casey’s and Wawa among them—to adjust overnight hours. In a 24/7 industry, the change was unprecedented.

“At some locations we have reduced store hours to allow more time for cleaning, as well as to more provide additional time for our team members to take care of their families,” Casey’s said in a March 20 message on the Ankeny, Iowa-based c-store chain’s website.

Nearly two in three retailers (60%) surveyed by NACS indicated they have reduced store operating hours, due to less customer traffic or to deep clean and restock during overnight hours. “We are here for the public and their needs. We are taking every precaution to conduct business safely,” noted one retailer.

As social distancing became the norm, many stores installed footprint decals on their floors or signs and partitions to direct customers to queue up at least six feet apart. Then came plexiglass partitions and masks and gloves for store employees as the virus hits communities.

Irving, Texas-based 7-Eleven installed plexiglass sneeze guards at the front sales counters in its 9,000-plus locations in an effort to reduce the spread of COVID-19. “We are doing everything we can to keep stores open and stocked with the products local communities need, while also keeping customers safe,” Joe DePinto, 7 Eleven president and CEO, told customers in late March. “These new sneeze guards provide additional protection for customers, store associates and franchisees. We are monitoring the changing situation and CDC recommendations and will continue to prioritize the health of our customers, store associates and franchisees across America.”

To protect employees and customers, store cashiers at Parent Petroleum’s PRIDE chain, headquartered in Warrenville, Illinois, wear plastic gloves during their shifts, and the 24/7 stores close for two hours overnight for a deep sanitization inside. Gas pumps are cleaned multiple times throughout the day. PRIDE stores also have hand sanitizers by each door.

Sales

More than half of all retailers (52%) surveyed by NACS said their grocery sales have increased. Convenience stores traditionally sell immediate consumption items—83% of all products sold at a store are consumed within an hour—but they have pivoted to providing items that can be brought home: 52% said they have added more cleaning/toiletry items; 31% were emphasizing ready-to-heat meals; and 28% were showcasing multi-pack/bulk items.

With millions of Americans sheltering in place, delivery services and contactless delivery have become the new norms. In the NACS survey, 14% of retailers said they were offering a curbside pickup program; 13% had increased a focus on drive-thru; and 11% had added or increased delivery options.

QuikTrip is one chain that will deliver c-store orders placed via QT’s mobile app to customers in the forecourt. PRIDE stores switched to offering its restaurant menus for carryout and delivery via Uber Eats. “With many grocery stores being hit hard by consumers stocking up on products, our restaurants could continue to be busy because of the lack of options available, so we won’t be routing employees to other roles,” Mario Spina, owner and CEO, told NACS Daily.

Foxtrot Market, with locations in Chicago and Dallas, switched to a contactless delivery option to meet the wishes of both customers and delivery drivers to minimize human-to-human contact. Karma Convenience Stores in the Minot, North Dakota, area waived customer fees for grocery delivery during the pandemic. “We carry all of our customer’s needs: groceries, formula, frozen, fresh meat cut daily with a butcher on staff, as well as fresh deli and bakery daily,” Amanda Johnson of Karma Stores told NACS Daily. Wawa reminded customers that delivery was available at 70% of its store service areas through third-party providers like Door Dash, Uber Eats and Grub Hub.

RaceTrac Petroleum made it easier for customers to get the merchandise they need without social contact. The Atlanta, Georgia-based company’s gas stations are using the “night pay box” pass-through windows. Customers who want to make a purchase without going inside the store can approach the window and ask a RaceTrac team member to collect their merchandise for them. Another option is to call ahead and place an order, which is paid for and picked up at the pay box.

7-Eleven encouraged customers to use its 7NOW delivery app, available to more than 35 million households in 400 cities. 7-Eleven was offering free delivery on all 7NOW orders through April 30 with a promotional code. The app’s “contactless” delivery option lets customers choose to have their delivery left at the door by the driver.

Indeed, convenience and fuel retailers renewed their focus on mobile apps and payments to limit in-store contact as handing over cash or credit cards and entering numbers on a PIN pad grew riskier. Sheetz, for instance, added scan and checkout on its app so customers can bypass the cashier. Pilot Flying J reminded truck drivers of the mobile pay feature on its app so they could place orders and reserve showers at truck stops. High’s offered Skip, a self-checkout app, and Carroll Pay, which can activate a gas pump and allow customers to pay for merchandise from a mobile phone. And Casey’s asked customers to “pay online or in the app to reduce contact at checkout for pizza carryout and delivery.”

Editor’s note: By May, it’s our deepest hope at NACS that the pandemic has reached its zenith, and our communities—and industry—have begun the healing process. We recognize, though, based on government guidance, that the worst might lie ahead of us. COVID-19 may have dredged up uncertainty and heartbreak, but let’s not give it the last word.

Times They Are A’Changing

By Pat Pape

Don’t expect the convenience-store world to go back to the way it was pre-COVID-19, according to Kyle Lore, corporate R&D chef for Salt Lake City-based Maverik stores.

During the escalation of the pandemic, the guidance regarding food handling came from the local level, versus something like a lettuce recall issued by the Food and Drug Administration (FDA). Retailers responded to health department dictates on a city or county basis, which resulted in a patchwork of foodservice safety practices throughout the country. Despite the multiple versions of public health orders, Lore predicts many of those changes will be accepted practice by the time the pandemic ends.

“Customers now realize how they are exposed, and it’s going to change the environment from now on,” he said. “Individual packaging of things like donuts is not going to go away. People are going to think of it as a standard. When they come in and see self-serve [pastry] cases, they aren’t going to want to buy those items.”

In some areas, health departments have nixed self-service foods and require c-store employees to prepare and serve fountain drinks and what were once self-serve foods.

“It will be interesting to see how that plays out, especially with condiment bars and roller grills that have been shut down because they’re public facing,” said Lore. And if even if local authorities OK a return to self-serve foods, “will the public accept it? That’s the question.”

Since the coronavirus outbreak, Maverik has adopted an intense cleaning schedule for each store. “We’ve bought new sanitizers and alcohol swabs so we can instantly sanitize touch pads and touch screens,” Lore said. “The challenging thing about this particular virus is that most of the sanitizers approved by the CDC require a 60-second contact time. You apply it, wait a minute and then wipe it off. That slows customer service time, but we are committed to have a clean, safe store.”

Pat Pape worked in the convenience store industry for more than 20 years before a full-time writer. See more of her articles at patpape.wordpress.com

Kim Stewart

Kim Stewart

Kim Stewart is NACS editorial director and editor-in-chief of NACS Magazine. She can be reached at kstewart@ convenience.org.

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