november/december 2013 t h e v o fourth quarter ... -...

T H E V O I C E O F 7 - E L E V E N F R A N C H I S E E SNovember/December 2013

www.ncasef.com

Visit the National CoalitionWebsite,

Fourth Quarter Presidents’ ReportsPage 54

Mark Your Calendar!NCASEF 2014 CONVENTIONJuly 12-16,20144

The National Coalition:Then And NowDifficult Issues For NBLCDiscussionOpen Letter To New Chairman Joe GaleaPre-Paid Gift Card FraudVendor Promotions The Challenge Of Change

Legislative IssuesA New Chairman,Promises To Keep

Hot Foods ChallengesFederal Cigarette

Excise Tax IncreaseA Simple Strategy

Background Checks

37 The National Coalition—Then & Now By Bruce Maples, Chairman, NCASEF

41 Difficult Issues For NBLC Discussion By Jivtesh Gill, Executive Vice Chairman, NCASEF

43 An Open Letter To New Chairman Joe GaleaBy Arnold J. Hauptman, Esq., General Counsel,

NCASEF

49 Pre-Paid Gift Card FraudBy Jay Singh, Vice Chairman

51 Why Are Vendor Promotions Accepted?By Roger St. George, Vice Chairman, NCASEF

53 The Challenge Of Change By Jas Dhillon, Vice Chairman, NCASEF

T H E V O I C E O F 7 - E L E V E N F R A N C H I S E E S

Contents

Member News.....................................................127-Eleven Leads Foodservice, Franchisees Start Library In Store, Op-Ed Against Ciga-rette Tax Hike, Swipe Fee Settlement, North Carolina Lottery Online, Smart Shelves, EastVillage 7-Eleven Closes, Holiday Shopping At C-Stores, Wal-Mart C-store Format, Oba-maCare, C-Store Penetration, Restaurant Nutrition Info, Dunkin’Donuts, Dollar General’s Cigarette Sales, New Product Trials,Beer Consumption , Debit Cards Vs. Credit Cards, Couche-Tard,Dairy Alternative Beverages

Legislative Update....................................... 20Federal Minimum Wage Hike, NJ Minimum Wage Increase, Mass Raise MinimumWage Increase, Federal Gas Tax, Olympia Bans Plastic Bags, Menu-Labeling Leg-islation, San Fran Soda Tax Proposals, Bloomberg's Soda Ban Appeal, NYCRaises Smoking Age, NY County Tobacco Purchase Age, Utah Smoking Age,D.C. Smoking Age Fray, Chicago Mayor Cuts Cig Tax Hike, States To RegulateAnd Tax E-Cigs, NY City E-Cig Ban, Conn E-Cigs Ban

SEI News.......................................79Big Xbox One Giveaway, More Fine Wines In 7-Eleven, 7-Eleven CNG Stations, Chicago Meal Donation Program

Bits & Pieces................................................22Vendor Focus..............................................83Franchisee Calendar..........................................................86

DEPARTMENTS

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 3 11

November/December 2013

Fourth QuarterPage 54

22 A New Chairman, New Challenges,And Promises To KeepBy Dennis Lane, President, New England FOA

28 Hot Foods ChallengesBy Romy Singh, President, Eastern Virginia FOA

30 Legislative Issues: 2014By Jason Miko, Russell Com-munications and NCASEF

34 Invisible Casualties Of A Federal Cigarette Excise Tax IncreaseBy Jack W. Rugen, Vice President, UFOLI

68 Cementing The Bond: A Simple Strategy Is SoughtBy Jay Brar, President, Sacramento FOA

76 The Importance Of Background Checks From The Lockton Companies

Mark Your Calendar!

NCASEF 2014 CONVENTION

July 12-16,2014Page 14

NCASEF Donates$100,910 To Susan G. KomenPage 16

7-Eleven FOAC SupportsChicago Children’s HospitalPage 18

San Diego FOA Donates To Toys For TotsPage 26

NCASEFAnnouncesNew Executive OfficersPage 12

AVANTI is published by the National Coalitionof Associations of 7-Eleven Franchisees for allindependent franchisees, corporate storemanagers, area licensees and interested par-ties. National Coalition offices are located at3561 East Sunrise Drive, Suite 135, Tucson, AZ85718. For membership information, call 520-577-8711, e-mail [email protected] fax to 520-577-4688. AVANTI Editorial andAdvertising Offices are located at 116 Belle-vue Ave., Suite 304, Langhorne, Pennsylvania19047. For advertising information, callSheldon Smith at 215 750-0178 or fax to215 750-0399; on-line, send messages [email protected].

12 AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 3

NATIONAL COALITION OF ASSOCIATIONS OF 7-ELEVEN FRANCHISEESNATIONAL OFFICERS

Bruce MaplesNATIONAL CHAIRMAN

520-577-8711 • [email protected]

Jivtesh GillEXECUTIVE VICE CHAIRMAN


Arnold J. HauptmanGENERAL COUNSEL


Roger St. GeorgeVICE CHAIRMAN


Jatinder SinghVICE CHAIRMAN


Jas DhillonVICE CHAIRMAN


Anas AbboudTREASURER


CONVENTION CHAIRPERSON

[email protected]

John RiggioMEETING/TRADE SHOW COORDINATOR


Sheldon SmithAVANTI PUBLISHER

ADVERTISING MANAGER


The Voice of 7-Eleven FranchiseesNovember/December 2013

©2013 National Coalition of Associations of 7-Eleven Franchisees

Avanti Magazine is the registered trademark of The National Coalition Of Associations Of 7-Eleven Franchisees.

Sheldon SmithPUBLISHER & ADVERTISING SALES

215 750-0178

[email protected]

John SantiagoASSISTANT EDITOR

215 750-0178

[email protected]

Tricia KesslerGRAPHIC DESIGN

KESSLER DIGITAL DESIGN

Report Shows 7-ElevenLeads In Foodservice 7-Eleven leads all convenience storechains measured for foodservice patron-age, according to a recent Technomic sur-vey, which found two-fifths (39 percent)of c-store foodservice users have pur-chased a foodservice item from 7-Elevenin the past two months. The study—Con-sumer Brand Metrics (CBM): Conven-ience Store Shopper Insights Report—alsorevealed that Wawa's foodservice programreceived the highest composite scoresacross 11 food and beverage attributes,such as food quality, foodservice varietyand the craveability of its menu items.

The report further found that 9 out of10 c-store foodservice users said the qual-ity and taste of the food are among the im-portant factors when deciding whichc-store to visit. Additionally, c-stores ap-pear to be driving traffic from restaurants,especially QSRs. A third of consumers (34

percent) said they would have visited arestaurant if they had not purchased pre-pared foods from a c-store on their mostrecent visit; 26 percent say they wouldhave visited a fast-food restaurant.

Franchisees Start Library In Their Store 7-Eleven franchisees Sushil Prakashand Josephine Kiran have started a libraryin their new Fresno, California store to getneighborhood kids excited about reading,reported the Fresno Bee. In order to enticethe kids to the little book section in theirstore, the franchisees offer a free Slurpeeor hot chocolate for every book read and

summarized in a short bookreport. Kiran, an avid reader,came up with the idea for thelibrary—the first of its kindin 7-Eleven stores nation-wide. She told the newspaper

SEI’s vice president visited recently to ex-plore how other libraries might be addedin 7-Elevens around the country. The library, which has about 200books and has been open since August,provides a valued service to the commu-

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“A new survey reveals 7-Eleven leads all c-storechains measured for foodservice patronage.”

NCASEF ANNOUNCES NEW EXECUTIVE OFFICERSThe National Coalition held elections for the positions of Chairman, Executive Vice Chair, andTreasurer during its fourth quarter Board meeting in late October in Dana Point, California. As a

result, San Francisco/Monterey Bay FOAPresident Joe Galea was elected as theNCASEF’s new Chairman, Jivtesh Gill wasre-elected as Executive Vice Chair, andManinder Walia, president of the PacificNorthwest FOA, is the new Treasurer. Con-gratulations Joe, Jivtesh and Maninder,and thank you Bruce Maples and Anas Ab-boud for your service to our organization.

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nity since Fresno’s public library is too faraway for neighborhood kids to visit regu-larly. Nearby Hamilton Elementary Schoolhas helped the franchisees’ effort by donat-ing $300, and teachers at the school volun-teer to label books by grade level, which hashelped deter older youths from reading farbelow their grade level as a ploy to snag aneasy Slurpee.

North Carolina Lottery Begins Online Sales The North Carolina Education Lot-tery recently started selling tickets onlinefor some games, offering online subscrip-tion service for Powerball, Mega Millionsand Carolina Cash 5, reported WFMYNews 2. Lottery officials said they hope thenew service will help increase sales in thosethree jackpot games and raise more moneyfor education in the state. Lottery playerscannot use the service to buy a single drawticket or to buy instant scratch-off tickets,the most popular game the lottery offers. Asubscription to at least two weeks of draw-ings for one of the three games is requiredfor any purchase. North Carolina joins atleast 11 other state lotteries in the coun-try—including Virginia and Georgia—thatalready provide a subscription service totheir lottery players.

Federal Judge ApprovesSwipe Fee Settlement A federal judge recently approved anestimated $5.7 billion class-action settle-ment between merchants and Visa andMasterCard over credit card swipe fees, be-

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We’re taking the convention to the Magic Kingdom in 2014! Join usfor five days filled with business-building opportunities and fun for theentire family. We’re still in the planning stages but more information iscoming soon, so check www.ncasef.com often! As with the last conven-tion, franchisees and vendors will be able to register for the event, makehotel reservations, and make payment online at ncasef.com.

The award-winning Walt Disney World Dolphin is located in theheart of Central Florida's greatest theme parks and attractions. Discoverthe resort’s 17 world-class restaurants and lounges, including steak,seafood, Italian, sushi, poolside dining venues, and 24-hour room serv-ice. Other amenities include the luxurious Mandara Spa, five pools, in-cluding a grotto pool with a water slide and waterfalls, a white sandbeach, two health clubs, tennis, jogging trails, watercraft rentals, twogame rooms, and a supervised children’s activity center. At the end ofthe day, the Walt Disney World Dolphin’s sophisticated guest roomsand suites offer the perfect retreat.

We look forward to seeing you all there!

“Two Fresno, CA franchisees havestarted a library in their newstore to serve neighborhood kids.”

lieved to be the largest settlement in a U.S.antitrust class action, reported Reuters. Agroup of merchants and retailer associa-tions first sued Visa and MasterCard in2005, accusing the two companies of fixingthe interchange fees and preventing mer-chants from steering customers to cheaperforms of payments. The settlement— de-creased to $5.7 billion from roughly $7.2billion after thousands of merchants optedout of the deal—provides for cash pay-

ments to merchants nationwideand lets them begin charging cus-tomers an extra fee when they useVisa or MasterCard credit cards. Around 8,000 merchants, ac-counting for about 25 percent ofthe transactional volume at issue inthe case, opted out of the settle-ment because of a broad litigationrelease in the settlement that forces all mer-chants who accepted Visa or MasterCard to

give up their right tosue the credit cardcompanies in the fu-ture. The objectors alsoargued that the settle-ment offered meaning-less reforms that wouldnot help them controlthe costs of accepting

credit cards. Shortly after the judge issuedhis order, retailers and trade associationsthat opposed the deal including 7-ElevenInc., NACS, Wal-Mart, Amazon.com, andBarnes & Noble Inc. filed notices that theywill appeal the decision.

FOAC VP Pens Op-EdAgainst Cigarette Tax Hike 7-Eleven FOAC Vice President KenPatel recently wrote an op-ed in theChicago Sun-Times detailing how aChicago cigarette tax increase would hurt7-Eleven and other c-stores in the city.Lawmakers there were considering a 75-cent-per-pack increase, which would havebrought Chicago’s cigarette tax to $7.42per pack and made it the highest in thenation. More recently, Chicago MayorRahm Emanuel reduced his proposedhike to 50 cents. In any case, Patel arguedthat a cigarette tax increase would hurt 7-Eleven franchisees in the form of lost cus-tomers “who know they can buy farcheaper cigarettes beyond the city limitsor even beyond the state line. The ciga-rette tax in Indiana is only 99 cents perpack, making that short drive an attrac-tive option for many.” Patel also made theargument that “the surge of cigarette cus-tomers leaving Chicago will create a neg-ative revenue result for Chicagotaxpayers—far from the $10 millionbudget windfall being hoped for.”

NCASEF Donates $100,910 To Susan G. Komen For The Cure In commemoration of Breast Cancer Awareness Month, the National Coalitionof Associations of 7-Eleven Franchisees (NCASEF) in October made a $100,910 dona-tion to Susan G. Komen Southern Arizona. The funds were raised during the NCASEF’s38th Annual Convention and Trade Show in July in Las Vegas, and came from both live and silent auc-tions as well as a charity raffle. “For the second year in a row, we are honored to be able to make a donation to Susan G. KomenSouthern Arizona,” stated Bruce Maples, chairman of the National Coalition. “Many in our 7-Elevenfamily across the country have been affected by breast cancer, and by making this donation to SusanG. Komen Southern Arizona we are tangibly working to fight this terrible disease.” “We are truly overjoyed by the generosity of the 7-Eleven family,” said Connie Melton, ExecutiveDirector and Mission Director of Susan G. Komen Southern Arizona. “It is inspiring to accept this giftknowing the NCASEF has chosen to partner with us in our mission here at Komen Southern Arizona,providing lifesaving funds to local breast cancer programs and investing in research to find a cure.” Maria Maken, a 53-year-old woman diagnosed with Stage IV breast cancer, is a recipient of aKomen Southern Arizona grant through St. Elizabeth’s Health Center. Maria, a mother of two, is receiv-ing ongoing chemotherapy. Her treatment, medications and a mastectomy were covered by herhealth insurance when she was diagnosed three years ago. Six months ago, when she lost her job,Maria turned to St. Elizabeth’s for help.

“I didn’t qualify for Medicaid,and I couldn’t afford to con-tinue chemotherapy treat-ment after I was laid off.Susan G. Komen funds arecritical to me and so manyother women who don’t haveany other way to pay for lifegiving treatment,” said Maria.This donation marks a fittingend to breast cancer aware-ness month for the KomenSouthern Arizona Affiliate.Donations are accepted yearround at www.komensaz.org.



“A federal judgerecently approvedthe multi-billion-dollar swipe feesettlement.”

NCASEF Chairman Bruce Maples presents a check toConnie Melton, Executive Director and Mission Director,Susan G. Komen Southern Arizona.

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Mondelez Develops ‘Smart Shelves’ Mondelēz International is building“smart shelves,” new display units located bycheckout counters that will use sensor tech-nology to identify the age and sex of thewould-be snacker, analytics to determinewhat type of guilty pleasure best appeals, anda video display to deliver custom advertise-ments, reported the Wall Street Journal.“Knowing that a consumer is showing inter-est in the product gives us the opportunityto engage with them in real-time,” the com-pany said. The smart shelvesrepresent the latest exampleof the so-called Internet ofThings, where everyday ob-jects, outfitted with sensors,can tell businesses moreabout their customers andhow their products are beingused. Gartner Inc. predictsthat net revenue generatedby the Internet of Things willtop $1.9 trillion dollars in2020. Mondelēz’s smart shelf,now in prototype, goes pub-lic in 2015.

Consumers To Increase HolidayShopping At C-Stores The final numbers aren’t in yet, but aconsumer survey released by NACS indi-cates harried consumers seeking to com-plete their holiday shopping will rely moreon convenience stores this year for quicksnacks, stocking stuffers, party items and

cash from ATMs. The NACS survey re-veals that one in three consumers said theyplan to buy snacks and other food items(32 percent), and coffee and other bever-ages (31 percent), from c-stores more oftenwhile shopping this holiday season. Additionally, consumers said they will

be increasingly using c-stores to pur-chase holiday gifts or related items.More than one in five consumers saidwhen it comes to making purchases atc-stores, they will be buying more gift

cards more often (23 percent), small pres-ents or stocking stuffers more often (21 per-cent) and more small items like tape andbatteries more often (22 percent).

NYC East Village 7-Eleven Closes A New York City 7-Eleven store lo-cated in the hipster haven of St. Mark’sPlace closed recently, just 18 months after


7-Eleven FOAC Supports Children’s Hospital of Chicago The Franchise Owner’s Association Chicagoland (FOAC) recently donated $40,000 to the Ann andRobert H. Lurie Children’s Hospital of Chicago at a “big check” presentation. The donation comes fromthe proceeds raised during the association’s 23rd Annual Charity Golf Outing, held at the St. Andrew’sGolf and Country Club this past August. 7-Eleven vendors, FOAC members , corporate donors and indi-viduals all participated in the golf outing by paying a fee to participate, which went toward the dona-tion. The formal presentation of the check was made to Beth Wolcott, Senior Development Officer,Corporate Gifts, by Jim Bayci, FOAC Merchandising Director.

The donation is a part of a multi-year commitment the FOAC has made to the Children’s Hospitaland follows on a recently completed three-year commitment in which the association donated$120,000 to the facility. This past August a plaque honoring the FOAC for their multi-year commit-ment was placed in the Snow City Arts Wing of the hospital, where children are able to play, learn and

relax prior to their appointments.

“The 7-Eleven family of Franchise Owner’s Associations hasa long history of giving back to the communities in which we liveand work, and the FOAC is proud to continue that tradition,”stated Jim Bayci, Merchandising Director for the FOAC. GaryLoughridge, FOAC Golf Committee Chairman, added, “Our com-mitment to the Ann and Robert H. Lurie Children’s Hospital ofChicago is now in its fourth year and we are honored to be a partof this life-saving and life-transforming Chicago institution thatserves our children and their families.”

“We are thrilled to receive this donation from our 7-Elevenfriends and the FOAC,” said Beth Wolcott, Senior Development Of-ficer, Corporate Gifts, Ann and Robert H. Lurie Children’s Hospitalof Chicago. “Their long-term commitment to the Ann and RobertH. Lurie Children’s Hospital of Chicago has been an encourage-ment and an inspiration, and has allowed us to continue to pro-vide world-class treatment to critically ill and injured children.”

“Mondelez is building smart shelvesto collect data about customers.”

Jim Bayci, FOAC Merchandising Director,and Beth Wolcott, Senior Development Officer, Corporate Gifts, Ann and Robert H. Lurie Children’s Hospital of Chicago.


claiming the prime East Village spot, re-ported the New York Post. Residents andneighboring business owners have foughtthe store before it even opened, fearing itwould hurt mom and pop shops and turnthe surroundings into suburbia. A localblog, “no7eleven,” sprang up to organize ral-lies and a boycott. According to the articletheir efforts stymied sales, leading to thestore’s closure.

Small Businesses React To ObamaCare When the Affordable Care Act wassigned into law, President Obama said itwould help small businesses by giving themmore control and making it easier to findbetter, less expensive coverage. However, anew survey by Public Opinion Strategies re-veals that 64 percent of small business fran-chise owners (such as owners of fast foodand retail stores) believe the law will have a"negative impact" on their business, whileonly 5 percent expect a "positive impact," re-ported the Wall Street Journal. For non-franchise businesses the ratio was 53 percentnegative and 12 percent positive. Only onein 12 agree with the President that thehealth-care law will "help" their business. The poll also finds 27 percent of fran-chise businesses and 12 percent of non-franchises have already replaced full-timewith part-time employees in anticipation ofthe law's employer mandate. Additionally,more than one in four businesses (28 per-cent) say that in 2015, when the employermandate is scheduled to take full effect, it is


Massachusetts Senate Moves To Raise Minimum WageThe Massachusetts Senate recently voted to raise the state’s minimum wage from $8 an hour

to $11 an hour over three years, giving a boost to nearly 600,000 workers and putting the state ontrack for the highest such pay in the nation, reported The Republican. Under the bill,

amended during debate, the minimum wage would increase to $9 an hour on July 1,$10 an hour on July 1, 2015, and $11 an hour starting July 1, 2016. The bill would

also index the state’s minimum wage to inflation. Starting in 2016, the minimumwage would rise each year at the same rate as the consumer price index for theNortheast. The bill now moves to the state House of Representatives, which isunlikely to vote on a minimum wage bill until sometime next year.

The minimum wage in Massachusetts last increased to $8 an hour in January2008. Supporters of the measure have said the increase is needed because somecompanies are making strong profits, but lower wage workers are falling be-

hind. Opponents, including some business leaders, said that an increase would hikecosts for businesses and could prompt layoffs.

New Jersey Voters Approve Minimum Wage IncreaseDuring its November state elections, New Jersey voters overwhelmingly approved a constitu-

tional amendment to raise the minimum wage by $1 to $8.25 an hour and add automatic cost-of-living increases each year, reported the Asbury Park Press. The new minimum wage goes into effectJanuary 1. The cost-of-living adjustments will take place every September 1.

The vote was a victory for Democrats in the state Leg-islature, who put Public Question 2 on the ballot to achievethrough referendum what they were blocked from doingby Gov. Chris Christie. He vetoed a bill last year that wouldhave raised the minimum wage to $8.50 an hour with an-nual inflation adjustments. New Jersey’s minimum wagehas been at the federal minimum since 2009.

Democrats Push For Federal Minimum Wage HikeAfter a previous minimum wage increase bill was voted down by Republicans in the House in

March, Democrats are once again trying to increase the minimum wage to $10.10 an hour, re-ported the New York Times. Rep. George Miller (D-CA) and Sen. Tom Harkin (D-IA) recently intro-duced a bill—known as the “Fair Minimum Wage Act”—that would raise the minimum wagefrom $7.25 to $10.10 in three stages of $0.95 each in two years, and then give annually increasesto match inflation. The final version of the measure will likely include small business tax breaks tohelp offset the wage hikes, a concession some Democrats wanted. The federal minimum wage, ex-cluding wages for tipped workers, was last raised under George W. Bush in 2009.

Bill Seeks To Increase Federal Gas TaxA House bill introduced in early December aims to raise the federal gasoline tax by 15 cents

per gallon in order to close a major gap in transportation funding, reported the Washington Post.The measure would raise the federal tax on gas to 33.4 cents per gallon and on diesel to 42.8 cents.The tax has not been increased since 1993 and the Highway Trust Fund, into which the revenueflows, has suffered because the tax has not kept pace with inflation and improvements in vehiclefuel economy have reduced consumption.

According to the bill’s sponsor, Rep. Earl Blumenauer (D-Ore.), the trust fund no longer drawsenough money to pay for the nation’s highway and transit bills. Although states levy their own gastaxes—the average combined gas tax bill was 30.4 cents per gallon at the

“New Jersey voters haveapproved raising theminimum wage by $1 an hour.”




Legislative Update

A New Chairman, New Challenges, And Promises To KeepBy Dennis Lane, President, New England FOA

With every new Chairman comes a new era for the National Coalition.There is always unfinished business from the previous administration, relo-cating and staffing the new office, and Coalition meetings on the horizon.There are relationships to build with FOA presidents, our vendor community,and SEI. And most importantly, there are promises to keep.

The 2013 Candidates Forum on October 20th in DanaPoint, California, gave every candidate the opportunity topresent their vision for the future of the National Coali-tion. It is the most important event of the election season,and in many ways the Candidates Forum sets the stagefor the final outcome of our national elections. All na-tional candidates have made promises, and the winnershave made promises that they need to keep.

Our incoming Chairman has committed to:

Our incoming Chairman made some very important commitments to the Board—and ulti-mately to the franchise community—during the Candidates Forum.Judging from the positive reaction of the FOA leadership in the room,these promises delivered a vision of the future that the Board em-braced. Now the words spoken at the Candidates Forum are promisesthat must be kept. n


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SEI President and CEO Joe DePinto has beennamed chairman of Brinker InternationalInc., the casual-dining restaurant operatorowner of the Chili’s Grill & Bar and Maggiano’sLittle Italy chains, reported CSNews Online. De-Pinto joined Brinker’s board in August 2010. •Amazon.com is experimenting with usingdrones to deliver packages. In an interviewwith “60 Minutes,” Amazon.com founder JeffBezos said the program—named Prime Air—is still years away from becoming reality. • Resi-dents of the city of SeaTac, Washington recentlyvoted to raise the minimum wage to $15 anhour for hospitality and transportationworkers in and near Seattle-Tacoma Interna-tional Airport, reported CNNMoney. The currentminimum wage in Washington State is $9.19. •The U.S. Postal Service is moving into Sta-ples stores in an effort to boost businessthrough partnerships with retail giants, reportedthe Washington Post. The USPS plans to openpilot units at 82 Staples locations throughoutthe nation. • Dollar General beat Walmartfor lowest prices on products in 21 cate-gories by 12 cents, offering more proof thatdollar stores are becoming an increasingly main-stream shopping alternative, reported MarketingDaily. • C-store chains 7-Eleven, Wawa andQuick Chek are targeting north New Jerseyfor expansion because it is home to largenumbers of their most coveted demographic—the time-starved consumer, reported The Record.• The FDA has begun a process that will takeartificial trans fat—also known as par-tially hydrogenated oils or vegetableshortening—entirely out of the food sup-ply, reported USA Today. The agency said it wasresponding to science that proves trans fat pro-vides no known health benefit and has no safelevel of consumption. • Sporting two wind tur-bines, nearly 850 solar panels and a geothermalsystem burrowed 550 feet into the ground,Wal-


• Never make any critical decisions impactingfranchisees or the National Coalition withoutthe permission of the Board.

• Make the relationship with franchisees, theBoard and our vendor partners a top priority.

• Maintain a healthy relationship with SEI andthe National Coalition Executive Board bybeing totally transparent. All high level meet-ings with SEI will always include at least twomembers of our Executive Board.

• Work to make Asset Protection a real asset tothe franchise community and change the per-ception in the franchise community that AssetProtection has become a police department.

• Never forget that every franchisee in the sys-tem is entitled to due process.

• Bring to closure the DVR remote monitoringissue in a manner acceptable to the NationalCoalition Board and in the best interests ofthe franchisee community.

• Never let SEI forget that franchisees are firstand foremost independent businessmen andwomen.

• To involve franchisee leadership in the devel-opment of the 2019 franchise agreement thatwill be the renewal agreement for the manyfranchisees on the current 2004 agreement.

DENNIS LANEcan be reached at

[email protected]

“The 2013 CandidatesForum on October20th in Dana Point,California, gaveevery candidate the opportunity to present their visionfor the future of theNational Coalition.”


"likely" they will drop their insurance cov-erage and pay the penalty of $2,000 a yearper employee. These are the plans employ-ers and employees were promised theywould be able to keep.

Few Diners Read Restaurant Nutrition Info More fast food and chain restaurantsare posting calorie countson their menus, but a newstudy shows only one inthree diners reads that in-formation, reportedReuters Health. However,most consumers who doread calorie counts take

them into consideration when decidingwhat to order. Some U.S. cities requirechain restaurants to post calorie counts fordiners. As part of the Affordable Care Act,chains with at least 20 locations nationwidewill have to list nutrition information ontheir menus. The new study, conducted by the Na-tional Center for Chronic Disease Preven-tion and Health Promotion, reveals that

about 36 percent of peoplewho saw calorie informa-tion at chain restaurantsread it. Of them, 95 per-cent reported using theinformation at least some-times. Respondents whowent to fast food and

chain restaurants three or more times perweek were less likely to read calorie countsthan those who went less often. Womenwere more likely to read calorie countsthan men.

C-Store Penetration Rebounds in Q3 2013 Less volatile gas prices, along with dis-count, rewards and loyalty retailer pro-grams, attributed to a rebound inconvenience store penetration in the thirdquarter ending September 2013, reportsThe NPD Group. The percentage of indi-viduals who made a c-store purchase (in-cludes gas and product purchases) in an


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average 30-day period in the quarter in-creased to 55.5 percent compared to 54percent in the same quarter year ago, ac-cording to NPD convenience store re-search. Penetration growth wasexperienced among major oils, tradition-als, and small/independent c-store chains.Along with penetration, both c-store trafficand reach grew in the third quarter thisyear compared to same quarter last year.Total product purchase visits to c-stores ina 30-day period were up 1 percent in thethird quarter compared to the same quar-ter a year ago, finds NPD.

Wal-Mart Tests New C-store Format Wal-Mart Stores is building a conven-ience store in Bentonville, a first for the re-tail giant, reported the Northwest ArkansasBusiness Journal. A company spokespersontold the newspaper the store will be openby the spring, and that it paid $4.5 millionin September for the 2.01-acre site. Thestore will offer customers a quick and easy

solution for gas, snacks and beverages, andother staples like milk, bread and eggs. “Weknow this type of convenience store is pop-ular with customers,” a companyspokesperson said. “We’re excited about theopportunity to test a new store and learn.”The spokesperson added that there are noplans to build additional stores like this.

Dunkin’ Expands In CA Dunkin’ Donuts has plans to expandto California’s Central Valley and CentralCoast—including Fresno, Bakersfield,Sacramento, and Santa Barbara—and toopen as many as 1,000 restaurantsthroughout the state, reported QSR Maga-

zine. The company is recruiting multi-unitoperators to open both traditional restau-rants and a wide range of non-traditionalvenues, including colleges and universities,casinos, military bases, supermarkets, air-ports, and travel centers. In January 2013,Dunkin’ Donuts announced plans to enterLos Angeles, Riverside, San Diego, SanBernardino, Ventura, and Orange countiesin California, and it has since executedfranchise agreements to develop more than70 new free-standing restaurants in thesemarkets, which will begin to open in 2015.

Dollar General’s CigaretteSales Boost Profits Discount chain Dollar General’s fiscalthird-quarter profits rose 14 percent,thanks in large part to cigarette sales, re-ported Forbes. The company said the addi-tion of tobacco products resulted in strongcustomer traffic growth throughout thequarter. Last year Dollar General an-nounced its foray into cigarette sales, say-ing it would offer tobacco for the first timein all of its stores by the middle of 2013.Shares of the chain are up 39 percent thisyear and 20 percent in the last six months.In the third quarter, the number of peoplebuying more than just cigarettes grew to 44percent as cigarette-only purchases de-clined to 26 percent.

New Product Trials Increase at C-Stores Although Nielsen data indicates newproduct introductions were down in c-stores in 2012, c-store retailers that partic-ipated in Convenience Store News’ exclusive2013 New Products Scorecard researchsaid they have been testing more new mer-chandise this year, reported CSNews On-


The San Diego FOA recently donated $7,117.11 to Toys For TotsSan Diego. The donation came from proceeds raised during theFOA’s 20th Annual Charity Golf Tournament, held at the Salt

Creek Golf Club on June 6. Attendees of theevent included 7-Eleven vendors, San Diegofranchisees, and SEI representatives.

The FOA also signed up for the Toys ForTots “Toy Drive,” and asked area franchisees,vendors and SEI local management to bring anew unwrapped toy to the FOA’s October andNovember Board meetings and to its HolidayParty for the drive. During the Holiday Party,held at Harrah’s Rincon Hotel and Casino on De-cember 7, the San Diego FOA made a formalcheck presentation to Toys For Tots, representedby Captain Evita Mosqueda-Chapman and Cap-tain Sandro Luna of the U.S. Marine Corp.


Captain Sandro Luna, Carmen Hiebing (vicepresident), Bic Sidhu (president), CaptainEvita Mosqueda-Chapman, Coordinator

www.ncasef.com



When it comes to hot foods,our guests today are lookingbeyond cheesy, greasy andfried temptations. No doubtour products are within ourguests' everyday budget, but

there are several challenges to our hot foodsprogram we must overcome before we canreach SEI’s goal of 20 percent of sales by 2015. For one, there has been a sharp declinein the quality of our hot food offerings thisyear, and that is really impacting fran-chisees. For instance, the size of the chickenwings and tenders has changed—last yearwe had bigger chicken wingsand tenders, now they aresmaller. Also, the smallerchicken wings and tendersdon't last more than twohours. Further complicatingthe situation, SEI just recently changedthe chicken tender vendor and now theproduct is too greasy and the guests do notalways like it. Additionally, because of thesize inconsistencies, the chicken tenders arenot cooking properly with the current heatsettings. It’s either burning or not cookingthe inside. Some stores have already stoppedcarrying the chicken tenders because ofthese shortcomings.

The centerpiece ofthe hot foods program isthe Turbo Chef, which is also becoming achallenge. What I have learned is that itseems the Turbo Chef is not being main-tained properly by maintenance. Preventivemaintenance needs to be performed often,at least once a year. If the ovens are not

cleaned, the heat-ing sensors mal-

function and then the food is not cookedproperly, even if the heat settings are correct. Another challenge is that there is no nu-tritional information available on our hotfood products. It needs to be advertised, orwe need POP in our stores providing this in-formation, even though it is not presentlymandatory for c-stores to do so. Consumersare more health conscious these days and

I’m certain they would ap-preciate this information.

Making fresh and hotfoods 20 percent of our salesis a good goal to strive for,especially given the growingpopularity of these productswith customers. However,in reality, every store’s de-mographics are different

and many stores simply will not be able toachieve 20 percent of sales because of this.As a remedy, SEI should perhaps evaluateeach store separately in regard to hot foodssales expectations. One more challenge is that we have toomany hot food products coming out. We al-ready have three kinds of pizza (cheese,meat and pepperoni) cheese steaks, eggrolls, four types of wings, mini tacos, andthe list goes on. It seems every month SEIintroduces a new hot foods item. I have twohot food cases, so I'm okay. But franchiseeswith only one case struggle with what tocarry and what not to carry. I suggest SEIprove the new items in trial stores in differ-ent Zones to see how they sell. If the itemdoes well, then the company should intro-duce it to all stores. As it is we have limitedspace and too many items offered. The bottom line is, if we want quantitywe must improve our quality. We have strongfaith in the hot foods program, but we needthe right tools to introduce it correctly. If weare not getting a quality product and have todeal with faulty equipment, then there will beproblems. We cannot afford to offer bad foodto our guests because they will not continueto buy from us. SEI must put our foot down

when we negotiateabout the quality

of the hot foodproducts. n

Hot Foods Challenges

“We have strong faith inthe hot foods program,but we need the righttools to introduce it

correctly.”

By Romy Singh, President, Eastern Virginia FOA

ROMY SINGHcan be reached at

[email protected]

“If we are not getting a quality productand have to deal with faulty equip-ment, then there will be problems.”


The legislative cycle does not sleep nordoes it stop, and 2014 will present yet againmore battles for franchisees to fight. Let’stake a brief look at some of the issues wecan expect to face throughout the year.

Sugar And Soda Taxes “Big Sugar” or “Big Soda”—as some arecalling it—will continue to be a “big issue”facing Americans and franchisees in 2014.We can expect to see numerous ballot ini-tiatives to tax sodas and other sweetenedbeverages, whether they are outright taxeson sugar or on the beverages. Californiawill lead the way with an all-out fight in 14of its cities. Dr. Jeff Ritterman, the citycouncilman in Richmond who led the 2012fight against soda, has vowed to see 14 cities

have ballot initiatives in2014 under the theory thatthe beverage industry andthose who support them willnot be able to win every one.We can also expect recentlyelected New York City

Mayor Bill de Blasio to continue to fight 16oz. sodas as did his predecessor, MichaelBloomberg. Shortly after being elected, deBlasio stated, “I’m not ever afraid to dis-agree with Mayor Bloomberg when I thinkhe’s wrong ... But I believe the mayor is righton this issue. We are losing the war on obe-sity ... It’s unacceptable. This is a case wherewe have to get aggressive.” And the fight is not limited to Califor-

nia and New York City. Forbes recently re-ported that lawmakers in Vermont, Texas,Rhode Island, Mississippi, Oregon, Hawaiiand Connecticut are considering similarbills. So, whether you operate a store in Cal-ifornia or Connecticut or anywhere in be-tween, expect to see these initiativesintroduced either as ballot measures in thefall or through city council proposals.

Tobacco In 2014 we can expect smokers to con-tinue to be stigmatized and tobacco productsto continue to be taxed at ever-higher rates aslocal and state governments step up their at-tempts to legislate behavior and raise fundsto fill ever-widening budget gaps. A numberof cities and states have succeeded in raising

taxes on cigarettes and other tobacco prod-ucts (or ages for purchasing) this year, andwe can expect more of the same in 2014. In addition, as the popularity of e-ciga-rettes grows we will continue to see govern-ments take a long and hard look at how toregulate them. Several federal Representa-tives and Senators are looking at e-cigs and,as we go to press, the White House is cur-rently reviewing an FDA proposal. We canexpect the FDA to issue its own rules andregulations on e-cigs this year as their posi-tion evolves, to use a politically appropriateterm. Already, however, universities, busi-nesses and other establishments are issuingtheir own regulations on where and how e-

www.ncasef.com


Legislative Issues: 2014By Jason Miko, Russell Communications and NCASEF

“What can we do as franchisees to fight against the continuing push for more taxes, more regulation andmore restrictions? The first answer is stay informed.

The second answer is be involved.”

greens recently cele-brated the officialopening of what is believed to be the na-tion’s first net zero energy retail store, antici-pated to produce energy equal to or greater than itconsumes. • December 1 marked the 100thanniversary of the modern gas station. • U.S.private-sector franchise jobs increased by 25,060during the month of October 2013, according tothe ADP National Franchise Report. • Electroniccigarette dollar sales grew 156.3 percent inthe period ending September 28, 2013, whilecategory sales in the c-store channel were $42.2million during the same period, according to datapresented by e-cig manufacturer Fin. • Big-boxchain Target not only uses its state-of-the-artforensics lab to catch shoplifters in its stores,but it also lends its high-end technology and pro-fessionals to law enforcement agencies free ofcharge, often on high-profile cases, reported Min-nesota Public Radio. • Fuel economy for newlight-duty vehicles in the United States hasmore than doubled since the 1970s andshould increase by another 50 percent by 2040,according to a new report by the Energy Informa-tion Administration. • Coca Cola is launching ahigh-end fashion line dedicated to its iconicbrand heritage, partnering with vintage-mindeddesigner Dr. Romanelli—aka DRx, reported Ad-Week. The collection features items like biker jack-ets and vests ranging between $450 and $1,650,and T-shirts for $35-$50. • Starbucks recentlyopened its first Teavana tea store in New YorkCity, offering sweets and other food including flat-breads, salads and small plates ranging in pricefrom about $3 to $15, reported the AssociatedPress. • The Millennial generation is expectedto outspend Baby Boomers by 2017, yet retail-ers underestimate the size and purchasing powerof this consumer, according to a new researchstudy by Berglass + Associates and Women’s WearDaily. • McDonald’s has revamped its Dollar Menuand renamed it Dollar Menu & More—addingpricier items to its value offering, reported Adver-tising Age. The new lineup has three price tiers and


continued on page 32continued on page 32


cigarettes and other nicotine delivery sys-tems can be used.

Lottery The issue for franchisees now is the ex-pansion of the lottery into the online world.Some states have implemented online ticketsales, some states are looking into it andsome states, perhaps surprisingly, are sayingno, not at this time. While the direction anystate takes with respect to public policy islargely guided by who is elected and theirphilosophy, it may be safe to assume that, aslegalized forms of gambling have expanded,so will online lottery ticket sales, all ofwhich seems like bad news for franchisees.

Alcohol From Sunday laws to restrictions onwhere beer, wine and liquor can be sold(and by whom), alcohol will continue to bea target for legislators around the country.While we can expect taxes on alcohol to goup, there may be pro-active battles we canwin when it comes to the issue of where andby whom alcohol can be sold. We have al-

ready fought some of these battles in somestates with varying degrees of success, butmore such battles loom on the horizon. Itcan be gratifying to know that we can bepro-active (instead of always reacting) inworking to create conditions where theguest wins with greater choice and lowerprices.

Fair Franchising The issue of fair franchising is an im-portant one for franchisees, and currentlyfour states are actively pursuing it: Califor-nia, Maine, Massachusetts, and Pennsylva-nia. All four states currently have billsaddressing the issue in various committees,and each one may advance in each state’slegislative session next year.

Activism So what can we do as franchisees tofight against the continuing push for moretaxes, more regulation and more restric-tions? The first answer is stay informed.The second answer is be involved. Just asthe phrase, “If you see something, saysomething,” is becoming a part of our lexi-con with respect to homeland security, thephrase also applies to you as business lead-ers in your neighborhood. The best way tofight against new taxes, increased regula-tions and new restrictions is to be involvedin your community, listening for the latestnews about what is happening from CityHall to the State Capitol to special interestgroups. When you do hear of news in whichyou, as a small business owner, may be af-fected negatively, please let your FOA lead-ers and the NCASEF know so that we canwork with you, with other allies and withSEI to create a unified plan of action. Oncewe have a plan of action in place, we are atleast equipped with the tools necessary tomake our voices heard, protect our inter-ests, and the interests of our guests.


“When you do hear of newsin which you, as a smallbusiness owner, may beaffected negatively, pleaselet your FOA leaders andthe NCASEF know so thatwe can work with you,with other allies, and withSEI to create a unifiedplan of action.”

includes sandwichesthat range from $1 to$2 and items like a 20-piece McNugget aroundthe $5 mark. • Oregon is implementing a con-troversial plan to tax motorists based on thenumber of miles they drive, FoxNews.com re-ported. The move comes as the existing per-gallongas tax hits a point of diminishing returns, withAmericans driving less and vehicles becomingmore fuel-efficient. • A study conducted by stu-dents at Connecticut College found thatOreocookies are just as addictive as drugs to labrats, reported FoxNews.com. Researchers alsofound that eating the cookies activated even moreneurons in the rats’ brain “pleasure centers” thanthe addictive drugs. • New York City MayorMichael Bloomberg’s name has been drawninto the debate over a proposed 8-cent perliter tax on sugary soft drinks in Mexico, re-ported the Associated Press. Those opposing themeasure have adopted the slogan “No to theBloomberg Tax.” • The Maine Franchise OwnersAssociation (MFOA) was recently launched torepresent franchise owners who invest in Maineand to facilitate additional franchise expansion.Franchise members are affiliated with variousbrands and in many different industries—fromfast foods to professional services. • A recent sur-vey by the National Confectioners Association re-veals that 72 percent of all candy spendingthis Halloween was on chocolate. The studyalso states that more than $12.6 billion was spenton chocolate in 2012, 3.8 percent more than theprevious year. • Of the 16 million victims notified in2012 that their payment card information wascompromised in a data breach, more than 25percent of them also suffered identity theft, ac-cording to the new study by Javelin Strategy & Re-search. • Husky Corporation has developed anautomatic refueling system that uses a robotto pump gas, reported Fox News. The roboticpump uses cameras to locate the fuel door on thecar and guide the nozzle into the hole. • Dunkin’Donuts announced it is planning to grow itspresence on college campuses around thecountry and is offering restaurant models to suitany university, including full retail shops and



www.ncasef.com


Legislative Issues: 2014 continued




Regrettably, New Yorkers are no strangers to extraordi-nary taxes. Legislators at all echelons of our state and local governments routinelyescalate current levies and construct new ones to fill budget gaps or finance newspending programs. A study by George Mason University’s Mercatus Center foundthat by a significant margin, New York State has the uppermost taxes in the coun-try—a state and local tax rate of 14 percent of income. In addition, at about 8.5percent, we pay the seventh highest combined state and local sales tax rate in thenation. Considering our elevated sales, income tax rates, and our highest-in-the-nation state cigarette excise tax, it should come as no surprisethat New York has the dubious distinction of being the mosttaxed state in the country. New Yorkers have grown accustomed to the steady flowof tax-and-spend policies that have made their way from thestate legislature and the governing bodies of cities, townsand local municipalities throughout the state directly intotheir bank accounts. Now, in an all too familiar fashion, ameasure in President Obama’s fiscal year 2014 budget pro-posal would raise the federal cigarette excise tax to finance new spending on pre-school education programs. The President has proposed expanding earlyeducation through a state-federal partnership to which the federal governmentwould contribute $75 billion over ten years. The federal government would raiseits portion of the funding by increasing the federal excise tax on cigarettes from$1.01 to $1.95. The states who choose to participate in the program would beobligated to pay approximately 10 percent of the program’s cost in year one, butby year ten, the states would be on the hook for 75 percent of the cost. No one questions themerits of this program, butits funding mechanism andthe radical shift in fundingresponsibility to the statesdeserves scrutiny. Tobaccotax increases are historicallyunreliable sources of rev-enue. They often have theeffect of increasing blackmarket activity, which hurtslaw-abiding retailers anddeprives government of taxrevenue. New York City,which currently has the na-tion’s highest state-localcigarette tax rate, $5.85 per pack, has become groundzero in the war on illegal cigarette trafficking.Criminals often use the I-95 corridor to transportcigarettes bought in Virginia and North Carolina to

New York. A 2011 study of littered cigarette packs in New York City showed just howserious the problem is—just 39 percent of the packs collected bore the proper citytax stamp. Almost three-fourths of the out-of-state packs were from Virginia. Thismeans New York City only received the appropriate taxes on two of every five packsof cigarettes sold in the city. This is an acute problem on Long Island and the upstateregions of the state as well due to the proliferation of Native-American Indian to-bacco outlets. All this illegal activity damages legitimate retailers. Moreover, the selling of contraband products reaps huge profits for organized

crime syndicates and damagesthe honest retailers who sellcigarettes bearing the appropri-ate tax stamps. Illegal cigarettetrafficking is not limited to localand national criminal organiza-tions—it has also been linkedto international terror groupssuch as Hezbollah, Hamas, and

al Qaeda. The then-ranking member on the U.S. House Committee on HomelandSecurity, Seaford’s own Peter King (R-NY) launched an investigation into the tiesbetween cigarette smuggling and terror a few years ago. The ensuing report onthe issue documented several examples of the links between domestic cigarettesmugglers and terrorist organizations. Increasing the federal tax burden on ciga-rettes will only increase the profit motive for trafficking illegal or counterfeit ciga-rettes into high-tax jurisdictions like New York. It will provide criminals with evenmore money with which they can finance their other illegal operations. Cigarettes tax increases have grave consequences for the retail industry andfor the law enforcement organizations tasked with combating the black marketactivity that often follows enactment. In the case of the President’s new program,there could also be consequences for taxpayers. As is often the case with govern-

ment spending programs, the actual costs of implementing and running theprogram end up being significantly more than initial projections. This coupledwith the unreliable nature of tobacco tax increases—it is estimated that fed-eral and state governments lose $5 billion annually to the diversion of to-bacco products—could leave New York with a much greater bill than itwas expecting. State level tax increases or budget cuts could be necessaryto fulfill New York’s end of the bargain.

At its core, the President’s early learning initiative is a great idea—itjust relies on a flawed funding mechanism. Mr. Obama and Congressshould find a more reliable way to fund this program in order to ensurethat it is implemented and run effectively from start to finish instead ofputting it on the backs of law-abidingtobacco retailers—the invisible casu-alties on this issue—because every-

one on this side of this issue knows theobvious, unintended consequences. n

Invisible Casualties Of A Federal Cigarette Excise Tax IncreaseJack W. Rugen, Vice President, UFOLI

JACK RUGENcan be reached at

[email protected](631) 744-5124

“Tobacco tax increases are historically unreliable sources of revenue. They oftenhave the effect of increasing black marketactivity, which hurts law-abiding retailers and deprives government of tax revenue.”

“The President has proposed expand-ing early education through astate-federal partnership to whichthe federal government would contribute $75 billion over ten years by increasing the federal excise tax on cigarettes from $1.01 to $1.95.”

Sell 29 times more in dollar sales when you stock Duracellthan when you stock only 7-Select Private Label!


The National Coalition—Then And NowBY BRUCE MAPLESEXECUTIVE CHAIRMAN, NCASEF

If you go back ten years and comparethe National Coalition then to the Na-tional Coalition now, you can see drasticchanges in the Coalition’s makeup, lead-ership, and organization. No longer canwe be seen as a social club that gets to-gether a few times a year to talk about is-sues. Today we are a group looked uponfor support and guidance throughout ourindustry. We are viewed as an organiza-tion that stands up for franchisee rightsand interests, and one that communicatesfranchisee issues at the highest levels in-side the 7-Eleven system. Four years ago a relatively newNCASEF executive team sat down to cre-ate a plan that would move the Coalitionforward and develop a recognizable brandto help form a foundation for the Coali-tion’s future. How we interact with 7-Eleven, how we are viewed in the industry,how we deal with our vendor partners,and how the National Office operateswere all topics up for discussion. When Ilook back at a timeline of the goals andobjectives that we set to move the NationalCoalition forward, I must thank all of theNCASEF officers for the team effort thatbrought us to where we are now. Today the vendor community, 7-Eleven, Inc. and the industry view us as awell-organized, professional organizationthat not only addresses franchisee issues,but takes a leadership role in the c-store in-dustry. From day one our group tackled na-tional legislative issues like credit and debitcard interchange reform, cigarette excise

tax increases, thesoda sugar tax, on-line lottery, healthcare reform and en-vironmental issues,to name a few.

We held regular meetings with the 7-Eleven executive team to discuss long-termsystemic issues that affect every franchisee.Honest and open dialog about franchiseeissues led to long debates with 7-Eleven upper management aboutwhat was best for franchisees andthe franchise system. Spirited dis-cussions about the DVR securitysystem and remote access, fran-chise contract changes, franchiseerights, franchisee profitability, low volumestores, hot foods profitability, gasoline in-

come and protecting our independent con-tractor status were all among the concernsdiscussed with 7-Eleven top managementon an ongoing basis. Improvements to the system—includ-ing EBT integration, elimination of CDCflat fees, and significant changes to the LABusiness Transformation Pilot that led tothe development of the Hybrid BTmodel—are a direct result of clear andopen communication between the fran-chisees and leadership of the FOA of

Greater Los Angeles, the Na-tional Coalition executive team,

and 7-Eleven upper management. Although it seems like yesterday, four

years ago when the National Office cameto Tucson, we sought to create a profes-sional environment by putting an officestaff in place to lead a coordinated effort toincrease accountability and transparencyat every level of the national franchisee or-ganization. A website with a well-devel-oped back room for convention and boardmeeting registration, and an office systemwith checks and balances that led to in-creased financial accountability was the re-sult. We are fully satisfied that this system

can be transferred to and utilized by thenewly elected chairman and his staff. Hiring a public relations firm to helpus navigate through a complicated politicalsystem and ensure we were always goingdown the right path was critical. Develop-ing a public website that would keep fran-chisees up-to-date on time-sensitive issuesin almost real time resulted in a best-in-class product that franchisees can be proudof. After months of planning and develop-

“Today the National Coalitionis looked upon for supportand guidance through-

out our industry.

BRUCE MAPLES CAN BE REACHED AT

520-577-8711 [email protected]


“We’ve had honest and open dialogue about franchisee issuesthat have led to long debates with SEI upper management aboutwhat is best for franchisees and the system.”

ment we ended up with a back room data-base that stores information about everystore in the system. It also captures andsaves data from every meeting participant,every convention exhibitor and sponsor,and every convention attendee. All wereintegral steps to achieving our goals. In our charity work, the Coalitionembarked on a mission to give back tothe communities that we serve. Over thepast four years, the National Coalition,on behalf of franchisees and in collabo-ration with 7-Eleven, Inc. and our vendorpartners, will have donated over $1 mil-lion dollars to charity. Well deserving or-ganizations such as MDA, St. Jude’sChildren’s Hospital, Susan G. Komen ForThe Cure, and Hire Heroes USA bene-

fited from the generosity of franchisees,7-Eleven, Inc. and our vendor partners. I am happy to say that franchiseesfrom around the country continue to playintegral roles in the communities theyserve. Through our local FOAs we con-tinue to give back to our neighborhoodsthrough everything from golf tourna-ments, picnics and holiday parties, to acommunity-wide pancake breakfast. The National Coalition has made alot of progress in the last four years dueto the hard work of an executive teamthat is dedicated to improving the systemfor the benefit of all franchisees. The Na-tional Coalition is strong and continuesto grow as a result of the hard work anddedication of franchisees all around the

country. Today, franchisees belong to anorganization that is well respected andone they can be proud of. As another holiday season ap-proaches it is a good time to reflect backon what is most important in our life, thetime we spend with family and friends. Iwould like to take this opportunity tothank all the people who have supportedme over the last four years, for giving methe encouragement to do what is rightand the tools to succeed. It has been an honor and a privilegeto serve as chairman of the greatest fran-chisee organization for the past four years.The friendships I have developed withfranchisees, vendor colleagues and 7-Eleven, Inc. will last a lifetime, and I willcherish them forever. I would like to wisheveryone in the 7-Eleven family a MerryChristmas, a happy holiday season and ahealthy and prosperous New Year.

The National Coalition—Then And Nowcontinued from page 37

“The National Coalition is strong and continues to grow as a result ofthe hard work and dedication of franchisees all around the country.”


One of the many tasks performed dur-ing our quarterly National Coalition Boardmeetings is to gather information fromBoard members about the concerns and is-sues affecting their FOA members so theycan be brought to SEI’s attention via theNCASEF or through the National BusinessLeadership Council (NBLC), of which I ama franchisee representative. The way theNBLC is structured, an issue is sent over toa committee within the Council and it basi-cally becomes a project wherein we lookfor—and work on—the desired resolution.Along the way, we provide status updates tothe National Coalition and FOAs to dissem-inate to their franchisees. One of the main issues we've discussedin the NBLC is communication. We havediscussed the role of Retailer Initiative (RI)and Zone Leadership Council (ZLC) meet-ings, and how we can improve both meet-ings so they can be more beneficial in

growing our business. Although the meet-ings vary from Market to Market and Zoneto Zone in terms of structure, more oftenthan not the RI meetings consist of a Pow-erPoint presentation on the top five hot foodstores, the top five or ten stores that sold themost Danishes, or the top ten stores with 90percent GEA (cleanliness). I can understand that the idea behindthis is to acknowledge the franchisees whohave done well, but unless we get into a littlemore detail on how each goal was achievedand share those action steps, no one is learn-

ing from the experi-ence and we're missingthe purpose of why weget together for thesemeetings. The NBLC

decided that we need to have a more consis-tent and standard RI meeting structure na-tionally, and it is being developed. One hot topic that has been discussedat the NBLC is our 90-day policy. Recently,a majority of the stores in the system werehit with back-charges related to invoices thatnever got booked. Some of these related todeliveries that were made more than a yearor eighteen months ago, and the chargesranged from a few hundred dollars to a few

thousand dollars. A lot of questions wereraised around the 90-day policy, especiallyhow can we let a vendor come back after ayear to collect, but franchisees can’t settle anoutstanding credit or bill after 90 days? TheNBLC’s Store Facilities and Processes Com-mittee is conducting an in-depth review ofthe policy, looking at all of the ins and outswith the objective to make the impact to thevendor and franchisee consistent and fair. That same committee is also lookinginto the issue of S18 reports and invoice fac-toring. We all have S18 reports, which aregenerated when certain items on an invoiceget factored rather than retailed at a recom-mended or set price, basically throwing offthe store's inventory and causing lots ofproblems. Accounting and Merchandising

are working on a resolution and are goingto address internal processes to resolve sys-tem issues and communicate how we aregoing to fix the factoring issue. The fresh food category has been achallenge for a couple of years, especiallyprofitability. Stores are struggling with or-dering enough to still make money afterwrite-offs. The Food Service Committee islooking into how we can reduce costs infresh and hot foods to increase GP so we canafford to order more. Cost counting versus retail counting onthe Fresh Food Category also has been ahuge issue for a long time. Top Accountingfolks at SEI are involved and they've pro-duced a first draft resolution, which is beingreviewed by the Food Service Committee.We’re hoping that at least for the fresh foodcategory, we are making positive changes. Many stores are being hit with charge-backs from coupons because somethingwent wrong with the submission. TheNBLC has been working on getting a stan-dard protocol for coupon processing devel-oped, which will include verification thatthe coupons were submitted and receivedand a report available to the store to indicateif there is a short or other variance. Slowly but surely, we are makingprogress. We'd like to resolve the issues in amuch faster pace but we’re tackling a few ata time to find solutions that benefit the en-tire system and grow sales and profits. I’d like to congratulate our new chair-man, Joe Galea. Joe has been a friend andneighbor for many years, and I look forwardto working with him over the next twoyears. I’d also like to thank Bruce Maples forhis service to the National Coalition. I havemuch respect for Bruce, and I have learnedmuch from him over the past four years. Ibelieve Bruce has impacted our Coalition ina positive way, and I wish him much luck infuture endeavors.

Difficult Issues For NBLC DiscussionBY JIVTESH GILL, EXECUTIVE VICE CHAIRMAN, NCASEF

JIVTESH GILL CAN BE REACHED AT

209-481-7445 [email protected]

“The NBLC is working on many issues, but one of themost important is communicating with franchisees.”


Dear Joe: Congratulations on your election aschairman of the National Coalition—orshould I say, you have my sympathies. Having served as general counsel forthe Coalition for six years, I know all toowell the many challenges that you will befacing as the point person for the Coalition,and particularly the difficult interactionwith SEI that comes with your job. As alongtime franchisee, and as a former exec-utive vice chairman, you also know the dif-ficult, and likely frustrating, tasks that youare taking on. The path for you will un-doubtedly be rocky and rarely downhill, butall who know you are confident that you areup to the job. Far be it for me to give you any unso-licited advice, but I will do it anyway. Joe,the biggest challenge for you—and one thatcannot wait too long to be resolved—is theissue of encroachment. No one disagreesthat the growth of the 7-Eleven brand cer-tainly benefits SEI, and can also benefitfranchisees, but only if the growth is re-sponsible, logical and takes into considera-tion the welfare of franchisees. All too oftennew stores are built or acquired irresponsi-bly, illogically, and without any concern fora nearby store to generate a decent incomefor its owner. This has to stop! The agreement, as you know, expresslypermits SEI to build a store anywhere itwants, even adjacent to an existing store.Since it will be hard for you to argue that SEIis violating the store agreement, your job willbe to convince SEI that unrestricted en-croachment all too often results in a de-pressed bottom line which hurts not onlythe affected franchisee, but also depresses

the value of thestore—which also ef-fects the value of the7-Eleven trademark.One possible solution

is discussing some sort of formula to com-pensate franchisees for lost income untilbusiness returns to at least its state prior tothe encroachment. What do you think? Joe, here is another biggie. You will re-member that the 2006 version of the storeagreement introduced the tiered 7-Elevencharge (commonly called “The Split”),which radically departed from the 50-50split that the 2004 agreement provided tomost franchisees. The tiers were tied to thechanging gross profit of a store, but failedto take into consideration increases in the

cost of living which, in turn, increased grossprofit, but without a concurrent increase inthe amount of products sold. As the cost ofliving increases, the 7-Eleven charge growsand, guess what, the franchisee makes lessmoney. This challenge can only intensify instrength as time goes by. Once again, youand your executive board must use yourpowers of persuasion to convince SEI thatwhile SEI deserves to make a profit for itsshareholders, franchisees deserve to make

a living for his or her family. A fair split ben-efits everyone. Depressed already? How about theever-increasing franchisee fees? If feesweren’t high enough already, starting withthe 2012 version of the store agreement, SEIdecided that rather than using the timehonored formula for determining franchisefees based on gross profit or market aver-ages, stores would henceforth be sold forwhatever SEI thought it could get based ona number of factors (sales, age of location,and many other factors). Not only that—as

to new stores, corporate stores, or acquiredstores, SEI could hold auctions to franchisea store to the highest bidder. Okay, I agree that anyone can andshould be able to sell anything (including afranchise) for whatever the market will bear.That is the American business model. Butshouldn’t some consideration be given tofranchisees who will experience the good-will values of their stores decrease because

An Open Letter To New Chairman Joe GaleaBY ARNOLD J. HAUPTMAN, ESQ.GENERAL COUNSEL, NCASEF

“The new chairman’s biggest challenge is the issue ofencroachment. All too often new stores are built or acquiredwithout any concern for a nearby store’s ability to generate adecent income for its owner.”

continued page 46

“The 2006 version of the store agree-ment introduced the tiered 7-Elevencharge tied to the changing grossprofit of a store. As the cost of livingincreases, the 7-Eleven chargegrows and, guess what, thefranchisee makes less money.”

ARNOLD J.HAUPTMAN CAN BE REACHED AT

516-541-7200


of higher franchise fees? After all, it was andremains the time, effort, and money of only7-Eleven franchisees that increased thevalue of stores and created potential fran-chisees willing to pay these huge fees. Isn’tit reasonable to demand that current fran-chisees somehow share in this windfall toSEI? Here’s my suggestion: when a store issold for goodwill, the seller should receivea part of the franchise fee being charged tothe purchaser. Such a program would besimilar to the Long Term Tenure RebateAmendment that SEI awarded to fran-chisees in 1991 and would make up for atleast some of the lost goodwill money. Don’tyou agree that such a solution would be fair? Let’s not forget the remote access DVRdispute that you inherited. Joe, in my view,it is imperative that you do whatever is nec-essary to ensure that the purpose of the sur-veillance system in the stores remains thatof protection for franchisees, and not forspying on franchisees and their employeesby SEI. How demoralizing and humiliatingit is to understand that SEI has so little trustand confidence in its franchisees that is feelsthe need to peek over their shoulders 24hours a day—and without the knowledge orconsent of the franchisee. In this case, how-ever, I firmly believe that you have the pro-visions of the store agreement on your side.Check out paragraph two of every version

of the store agreement. It states clearly thatthe franchisee is an independent contractorresponsible for the day-to-day operations ofthe store and his or her employees. Fran-chisees need to be trusted to carry out thoseresponsibilities without the prying eyes ofSEI. It is unfortunate that litigation may be-come necessary to enforce these rights, butJoe, I advise you to keep SEI’s feet to the fireon this one. So, I would think that you can solve theabove challenges in the first six months ofyour tenure as Chairman. But there will be

no time to rest on your laurels. There is stillmuch to be done. Start with the ridiculouspenny and a half commission per gallon ofgas. Something has to be done to help gasstores who, if lucky, break even selling gaso-line while SEI reaps huge profits. It is simplynot fair and equitable and I know that youand your team can get SEI to increase thecommissions to a reasonable sum.

Taking care of the gas situation willprobably take you another month or two.Then I suggest that you start paying atten-tion to the job of reducing the 85 percentrecommended vendor requirement to per-haps 65 percent or 70 percent. By gettingsuch a reduction, franchisees will be able topurchase more products from non-recom-mended vendors at a lower cost and also be

able to purchase inventory specificallysuited to the needs and wishes of their cus-tomer base. That should take you anothermonth, which gives you plenty of time todeal with the recent and excessive issuanceof unnecessary and improper LONs andbreaches and, after that, you can work onthe ever-increasing costs and ever-decreas-ing gross profit of 7-Eleven stores. Joe, if you take on and resolve the abovechallenges in the first year of your term, youwill have earned a well-deserved rest duringthe second year. Good luck.

“When a store is sold for goodwill, the seller should receive a partof the franchise fee being charged to the purchaser.”

kiosks that are perfect forcampus centers, studentunions and dining commons. • Walgreens an-nounced that its nationwide Healthcare Clinicshave received certification from the Accredi-tation Association for Ambulatory HealthCare, which is a symbol of quality recognizingthat each Healthcare Clinic operates in compliancewith nationally recognized standards of care. • Cir-cle K Stores Inc. recently purchased 13 PIXfuel/c-store stores from Publix Super MarketsInc., of which 11 are located in Florida and two inGeorgia. • Burger King plans to streamline therollout of new products with “fewer and more im-pactful” menu items in order to ensure franchiseescould execute the menu items easily and prof-itably, reported The Nation’s Restaurant News. •McDonald’s plans to sell its coffee in super-markets next year, reported the AssociatedPress. The hamburger chain said it will test sellinga variety of packaged ground and whole-beancoffee at supermarkets and other retail outlets in2014. • A new study by The NPD Group finds thatAmericans are shifting to healthier, simplerdiets and that has helped to stabilize obesitylevels.The report claims Americans are consum-ing more fruit, bottled water and yogurt than theydid a decade ago. • OfficeMax announced thatBoard member and SEI President Joe DePintowill not seek to be appointed to the new Board ofDirectors following the proposed merger of Of-ficeMax and Office Depot. • ADP announced itsADP Mobile Solutions app—which gives em-ployees all the tools needed to access their HR in-formation—surpassed 1.5 million users.Thenumber includes over one million app downloadsfrom Apple iTunes and over 450 thousand appdownloads from Google Play. • The HersheyCompany recently announced a $100,000 do-nation to Wounded Warrior Project to helpsupport numerous programs, which are address-ing the urgent needs of this generation’s injuredservice members. • A ballot initiative in Washing-ton state that would have required labeling offood with genetically engineered ingredi-ents was shot down by voters in November be-cause it would have raised food prices by hundredsof dollars per consumer each year and was viewedby many as a mini-tax. • Starbucks has an-



An Open Letter To New Chairman Joe Galea“It is imperative to do whatever is necessary to ensure that thepurpose of the surveillance system in the stores remainsthat of protection for franchisees,and not for spying on franchiseesand their employees by SEI.”


Vice Chairs’Forum

PRE-PAID GIFT CARD FRAUD BY JAY SINGHVICE CHAIRMAN, NCASEF

Most of our stores carry differenttypes of pre-paid load cards, re-charge-able phone cards, and gift cards. Fromour phone card business we receive a de-cent gross profit and repeat customers,while with gift cards we only get a set feewith a heavy risk attached if a transactionturns into a fraudulent load. Many stores are getting phone callsfrom con artists all over the country toload gift cards, Visa cards, Green Dotcards, or other kinds of cards over thephone for up to $500, resulting in hugelosses to franchisees. These callersknow our system very well andpretend they work for 7-Eleven, Inc. Unfortunately,they end up successfullyconvincing the sales asso-ciate to load these pre-paid cards over thephone by telling themthe cards will expire and they need to testif the cards really work, or some other ex-cuse. In most cases, this money is trans-ferred to another account within minutesof these fraudulent transactions. Stores thatreport this loss to law enforcement end upnowhere because the police are unable tolocate these calls and trace the money. In-Comm representatives are also unable tohelp stores, as they have no answer to thisloss. SEI’s Asset Protection department andfield staff have no explanation, except for arepeated answer to train store employeesnot to load these cards over the phone. Yes,

the best and onlysolution so far is totrain store employ-ees not to load thesecards over thephone and to let

them know that SEI’s employees do not callstores during the night. This issue has been raised with SEI inNational Coalition Board meetings, and asa result from mid-December onwards a

warning will appear on our cash reg-isters not to load any pre-paid cardsover the phone or if the customer is

not in the store. This is a small stepin the right direction, but a lotmore needs to be done. We sell a

lot of cards that have a loadrange of $15 to $500 like

Green Dot, Vanilla Re-

load Network, Net Spend, Vanilla Visa andeven cards like Kindle Fire, Karma Koin,and a few others. These high-ranging loadamounts do not make any sense at all. Weare not Best Buy, Wal-Mart or other bigbox chains, where customers buy big-ticket items. If the category manager forthese cards conducts a fair analysis and re-moves all the fraudulent loads and trans-

actions, they will probably find only one ortwo genuine $500 loads. The same type of fraud occurred inour stores—especially in the Las Vegasarea—approximately six years ago when7-Eleven gift cards had a $500 max limit.Con artists visited our stores to get five orten of these cards and loaded them usingskimmed credit cards. Within hours thesecon artists would go to other 7-Elevenstores to buy cigarette cartons with thefraudulently loaded gift cards, resultingin losses to both stores. The issue wasraised at that time also, and SEI updatedtheir technology and lowered the highlimit on gift cards to $100. It is time again to think seriouslyabout this scam. I recommend that SEInot promote any pre-paid load card ofmore than $100, and that all these giftcards or pre-paid cards not be loadedwith credit cards in order to reduce theloss to franchisees. Some other conven-ience sores have programmed their regis-ters to ask for a supervisor’s ID tocomplete the transaction if it is more than$50 for gift cards. This sounds like an-other good step to reduce the fraud. No doubt franchisees need to traintheir employees not to load these cardsover the phone, but storeowners shouldalso take other precautions to prevent thistype of loss. These pre-paid or gift cardsare not required items, so it is entirely upto franchisees whether to carry them or

“Pre-paid or gift cards arenot required items, so it isentirely up to franchiseeswhether to carry them ornot. It might make senseto carry $25 gift cards, butnot $500 gift cards.”

“With phone cards we receive a decent gross profitand repeat customers, while with gift cards we geta set fee with a heavy risk attached if a transactionturns into a fraudulent load.”

JAY SINGHCAN BE REACHED AT

[email protected]



Vice Chairs’Forum

WHY ARE VENDOR PROMOTIONS ACCEPTED? BY ROGER ST. GEORGEVICE CHAIRMAN, NCASEF

The vendor community has a verytight relationship with franchisee leader-ship, and many times will talk about theirfrustrations with our franchisor and evenask for our help with SEI. Our vendorpartners are charged by their bosses toachieve sales goals and execute promotionswith assigned retailers. Only the largestsuppliers have a sales representative dedi-cated to 7-Eleven; most work not only withother convenience store groups,but also other channels. Manytimes, senior management de-velops the promotional sched-ule and pricing, and the salesrep is expected to sell the pro-gram to all of their customers. Obviously, because of thesize and familiarity of the 7-Eleven brand, we are many times the firstchain considered for these manufacturerpromotions and deals. Having been inbusiness for 87 years, and having seen sucha large share of the promotional activitycoming from manufacturers, SEI has cer-tain expectations before engaging in any

promotional activityto its stores. We asfranchisee leaderscontinue to hearfrom our representa-tives in the supplier

community about how they need morecommunication from corporate, becausemost often they are left to guess how theirinitiative must mesh with SEI’s objectives. There are several types of promotionsthat usually land in our stores. There are the“Buy One, Get One” deals, free fills, “2 for $”promos, new product samplings, “First, Bestand Only,” and many others. Sometimes thepromotion is simply a tagline in an ad or acommercial that the product is available at

the local 7-Eleven, and othertimes it may be free productavailable at 7-Eleven to ourcustomers. There’s no ques-tioning the value these pro-motions have on franchiseebottom lines, because theyhelp attract customers to ourstores.

SEI has made it broadly known thatpromotions must be fully funded to makeboth corporate and the franchisee whole inthe gross profit dollars earned in a promo-tion. Too often, however, vendors expressfrustration when category managers turndown promotions with little or no explana-tion about how a promotion could bechanged to be palatable to franchised stores. Worse yet, we hear often from manu-facturers that SEI will not acknowledgethey have even considered a manufac-

turer’s promotion. In exasperation, thevendor then offers the promotion to acompetitor and we are selling against it instores around town. It is difficult for fran-chisees to understand why SEI will noteven consider approving a 7-Eleven tag toan advertised product that is already rec-ommended in our stores. Adding insult toinjury is the vendor’s inability to get an-swers after repeated phone calls and emailsthat simply ask for a response from the cat-egory manager so the representative fromour vendor partner can fulfill their respon-sibility to their company. So here are my questions: What is therationale for accepting some vendor promo-tions and not others, and how can we asfranchisees help our vendor partners in thissituation? It is especially difficult for the ven-dor to ask for help from the franchise com-munity to spur a response from SEI.

ROGER ST. GEORGECAN BE REACHED AT

[email protected]

“There’s no questioningthe value vendor promo-tions have on franchiseebottom lines, becausethey help attract cus-tomers to our stores.”

not. Yes, it might make sense to carry$25 gift cards, but not $500 gift cards.This is only a suggestion, but you couldtell the gift card reps not to leave cardswith high amounts in your mix. Also, if

you already have the high-limit cards inyour stores, you might want to removethem and put them in your office to behandled by your well-trained employeesand not by the night cashiers, as most of

these phone calls hit the stores duringthe late hours. In the meantime, train allyour sales associates not to accept creditcards for high amount gift cards just tosave you from back charges until the sys-tem is fixed. All of these suggestions are only tominimize our loss. Ultimately, the deci-sion is yours to protect your income.


“Train all your sales associates not to load ANY pre-paidcards over the phone or if the customer is not in the store.”

Vice Chairs’Forum


The national elections are over, butour work has just begun. It has been ahard and grueling season of hope andpromise. Each of the candidates whostood for an executive office, from chair-man to executive vice chair to treasurer,was motivated by a sincere desire to seethe day-to-day burdens of franchiseeslessened and to make the future brighter.Although I ran for the position of execu-tive vice chair and lost, I totally respectthe outcome of the National Coalitionelection and the choices made by my fel-low franchisees. As a 7-Eleven franchisee, today morethan ever, I’m in survival mode. CharlesDarwin said it best, “It is not the strongestor the most intelligent who will survivebut those who can best manage change.”Today, I struggle to survive and adapt tolive with credit card fees, loss of gasolineincome, the graduated 7-Eleven charge,loss of lease, a BCP conversion across thestreet or 8/10 of a mile away, governmentregulation, and/or ObamaCare. When I purchased my first 7-Eleven

store, I thought I bought myself into a sys-tem that would offer me support, guid-ance, and protection from competitors.Amazing how I am “challenged tochange”: I can compete against any other

c-store, but notagainst another 7-Eleven. Today, I’min survival modeand must makedrastic changes—Isell coffee at $1,

beer at near cost, CRP on other products,and so on and so on … why? Because Icannot compete against that newer 7-Eleven. No matter how much I scrub theshelves, walls and floors, they will neverbe sparkling clean. Now more than ever, we as a groupmust come together as one solid voice andfight for the future of 7-Eleven. We mustband together to ensure that not only willthis business model be successful today,but that it continues to be a success. Wemust come together, as one, to protect ourindependence as individual storeowners. Where we must come together is asfranchisees standing and defending thosevery things that make this system suc-cessful. We do NOT need the unity ofthought and opinion; we need the unitythat comes from our diversity. We needthe unity of the pursuit of freedom, thefreedom to make each 7-Eleven a specialand unique place that is decidedly gearedtowards being “my 7-Eleven” in the mindof our guests. Yes, we must have a consis-tent high quality brewed coffee, but we

also must have a premier enchilada ortamale for our large Latino customerbase. What is NOT needed is a one-size-fits-all solution from well-meaning cate-gory managers in Dallas. We asfranchisees, and our employees, are thefrontline decision-makers who shouldhave the ability to select and order itemsour customers want, need and demand.Remember, it was franchisees who pouredthe first cup of coffee, steamed the first hot

dog and dispensed the first cold fountainsoda. Initially, 7-Eleven’s response was,“You can’t do that.” We must shed themantra of “You can’t do that” and return tothe days of “How can we help you betterserve the guests?” Finally, let’s not con-tinue to pushthe politics

of the electionover the next twoyears. The oppo-nent is across the parking lot, or down thestreet, not in our meeting rooms. Futiledisputes over power and prestige will onlycause us to divide into factions. When thathappens, we as franchisees lose and every-one else wins, including the conveniencestore down the street. Those are my thoughts. I would loveto hear yours.

THE CHALLENGE OF CHANGE BY JAS DHILLONVICE CHAIRMAN, NCASEF

“Each of the candidates whostood for an executive of-fice, from chairman to exec-utive vice chair to treasurer,was motivated by a sinceredesire to see the day-to-dayburdens of franchisees lessened and the futuremade brighter.”

JAS DHILLONCAN BE REACHED AT

818-571-1711 or

[email protected]

“We must shed the mantra of ‘You can’t do that’ and return to thedays of, ‘How can we help you better serve the guests?’”

New England FOADennis Lane, President As we end 2013, franchisees in NewEngland are looking forward to a better, lesscontroversial, more profitable 2014. The les-son learned from 2013 is that our brand andour franchisees can and will survive andsucceed in even the most difficult of times.

We are the original convenience storebrand, and stores in New England are oper-ated by many of the best franchisees in the

system. With all of thenegative media in2013 it became all tooeasy to forget the hon-est, hard workingmen and women inNew England andacross the countrywho protect the brandevery day by doingwhat they do best—run great stores.

The New Eng-land Franchise Own-ers Association would

like to wish every FOA, every franchisee, andthe new National Coalition administration avery successful 2014.

Eastern Virginia FOARomy Singh, President On November 7, our FOA met withfour market managers and Zone LeaderBrian Voss. There was a presentation fromCDC operations, as well as an open discus-sion. Franchisees raised their concerns aboutthe gas pricing strategy, hot foods quality, ac-counting, and CDC deliveries. Brian an-swered franchisee concerns and promised tolook into ongoing issues. Our FOA is tryingto resolve our issues within our zone. We are

AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 3 5554 AVA N T I N O V E M B E R | D E C E M B E R 2 0 1 3

NOV•DECserving our members and non-memberfranchisees the best we can. The EVAFOA is having its Christ-mas Party on December 7 in VirginiaBeach. Besides franchisees and theirfamilies, our Zone Leader, all marketmanagers and all field consultants areinvited and are expected to join us. Ourtrade show will be held on March 17 atthe Virginia Beach Convention Center.Vendors may visit www.evafoa.com formore information.

San Francisco/Monterey Bay FOAJoe Galea, President Peak summer sales saw an increase ofabout 3 to 4 percent on average. Summer isbehind us. Stores are experiencing the samesales trend as 2012. Looking into 2014, weare anticipating more stores getting the hotfoods program. Our trade show will beMarch 1, 2014 at the Airport Marriott inSouth San Francisco. We've had a goodworking relationship with SEI in 2013 andwe look forward to that continuing in 2014.We have our holiday party coming up onDecember 6. Some of our members have al-ready registered for the 7-Eleven Experi-ence in Las Vegas on January 28-31, 2014.The stores have received information aboutit; it is on the ISP and field consultants havetalked about it. It will be interesting to seewhat the turnout will be for this SEI event.

Cal-Neva FOARichard Rose, President September 30 was the end of our 100Days of Summer. So how was this summerfor Cal-Neva franchisees? For the summermonths, the Reno-Tahoe market was uparound 3 percent and we were one of the fewareas that had franchisees make more thanlast year. As mentioned in my previous Pres-ident’s Report, we have had two stores re-turned to SEI—one because of competition

and the other because the franchisee couldnot sell the store. With the ever-increasingnumber of competitors moving into ourarea, I believe franchisees will be looking atthe stores with a more realistic eye and judgefor themselves if it is in their best interest tomaintain their stores. Our franchisees aretrying to remain competitive, but are “fight-ing with one hand tied behind their backs,”

since 7-Eleven, our parent company andpartner, is unwilling to remodel our storesor to do simple maintenance. This summer we also had our 11th An-nual Louis Magnotti Golf Classic, with arecord number of golfers participating. Weenjoyed great weather, camaraderie, renewedand made new friendships, and yes, playedgood golf (or in some instances questionablegolf). If we were playing baseball with oddslike that, we would be batting over 600 per-cent. Monies raised from this golf tourna-ment again more than met our expectations.

All of us—franchisees and guestsalike—should feel proud that we couldpresent these monies to our two majorcharities, MDA and the fight againstbreast cancer.

In October, we thought pink again.In the second local annual fundraisingevent, our 7-Eleven stores in the Reno-Tahoe area encouraged customers todonate money for local breast cancerawareness and prevention programs.Employees at participating stores wereencouraged to wear sweatshirts withthe “Save the Ta-Tas” logo to help pro-

mote the cause. Our goal this year was toraise more than the $12,000 we donated lastyear. It was hoped that each store would beable to raise at least $500. Many stores wentabove and beyond the $500 quota, with afew reportedly raising over $3,000. As ofOctober the month-long fundraising effortsended, and I am proud to announce that wehave raised a whopping $20,000! The

monies collected havebeen donated to theRenown Medical Centerto help the Reno-Tahoearea directly. TheRenown Medical Centerwill make these fundsavailable for women inthe Reno-Tahoe area, giv-ing free mammograms tothose in need. Thank youfranchisees and thankyou to all the wonderful

community of Reno and Tahoe for caringand supporting a worthwhile cause.

Northeast FOANeil Shah, Vice President In New England we are concerned thatSEI is not doing much for our low volumestores, which need remodeling and a boostin revenues. In the past year, the companyhandpicked a few stores in Boston for AQIP,

“Asset Protectionneeds to define

their role and letfranchisees know

what we can expect.”

—Jivtesh Gill, Executive Vice

Chairman

November/December Dana Point, California

NCASEF Chairman Bruce Maples scheduled anafternoon for the Board to talk about the DVR,

security and remote access.

San Diego Board members and franchisees at the candidate’sforum included (front row) Gary Singh, Cindy Keller, Gurpal Paintal,Bobbie Villagrana, Carmen Heibling, Gene Villagrana, and (backrow) Bic Siddhu, Tony Singh, JV Mahal, and Bhupinder Mann. continued on page 56

“The SSI issue is notcompletely solved inthe BT hybrid model.”

—Bob Price, President, Texas FOA Vice Chairman Jay Singh urged fran-

chisees to fight for greater profitability.

The Election Committee included BillHuffman, President, Columbia PacificFOA; Jerry Sahnan, Committee Chair-man and President, Phoenix FOA; andJoe Rossi, President, FOA Chicagoland.


NOV•DECand in total nine stores in our area got AQIPthis year. There was no formula used to pickthe stores, and we believe this is unfair tofranchisees. We keep hearing that every storeis going to get hot foods and new coffee barsthrough AQIP, but I don't know when it isgoing to happen. There has been little expansion in theBoston area, and SEI is not awarding multi-ples to struggling franchisees. The new storesthat have been opened are struggling, and ex-isting franchisees are questioning why thecompany is opening expensive new storesthat they have so much trouble franchising.One store in Cambridge closed down lastmonth because the most recent new storeshave been low volume, yet when an existingfranchisee asks for a new cooler or somethingnew, we are told it is not in the budget. Butwe have a budget to build a brand new storea half a mile away from the existing store? Our FOA is planning a trade show anda newsletter in 2014 that we are really excitedabout. I want to wish everyone in the fran-chise community Merry Christmas and

Happy Holidays. Let’s all have a great year in2014. The franchisees of the Northeast FOAwould like to offer our congratulations tonew chairman Joe Galea, Executive ViceChairman Jivtesh Gill, and new TreasurerManinder Walia for their success in the re-cent National Coalition elections.

Suburban Washington FOAPete Gragnano, President Sales in Market 2543 have been flat, with$4,724 APSD in 2013 vs. $4,727 in 2012.Food sales are also flat, as shown by $884APSD in 2013 compared to $880 in 2012.Both of these can be attributed to a decline inguest counts, which are down 37 APSD or 3.1percent. Our region was significantly im-pacted by the government shutdown and hasbeen slow to recover, as consumers are notconfident in the economy. FOA leaders, NBLC members and sev-eral other local franchisees met with ZoneLeader Jim Summers on November 14. Top-ics discussed included the following:• Large $ Pre-books on Pay-By-Scan Items—

Pressure to participate. Stores need to

know the “shrink rate” in order to make aneducated decision.

• GEA Evaluations—The process is being re-vised to lower the number of questions andadjust the grading system.

• Chicken Tenders—The uneven size/poorquality of the items from the new vendorare reducing sales. Zero retail on fresh fooditems was requested.

• E-Cigs—Dallas working on an e-cig plan-o-gram so as not to interfere with cigarettecontracts. It was suggested to stay with largemanufacturers who will likely be able towithstand expected federal and state gov-ernment regulation.

• Change in Asset Protection Function—AssetProtection seems more involved in protect-ing 7-Eleven’s assets (issuance of FIWs, etc.)than in helping the stores, as evidenced by arecent spate of robberies in which the storeswere not notified, thus having merchandisetaken that could have been secured.

• Unexplained Late Charges—All franchiseeswere upset with Accounting’s chargeback tothe stores at the end of October without anynotice or ability to question the charges. Wewere told corporate stores in the Zone wereimpacted similarly in July.

• Breach Process—It is Zone policy to dis-cuss/coach before issuing a LON or Breach.Breaches given for out-of-stock conditionshave very vague language, like “violates cor-porate image.”

• Advertising—Billboard ads for the $5.55pizza deal and bus shelter advertising inWashington D.C. are the focus.

Randy Johnson of General Mills showedoff the new Chex Chips and PillsburyCookies.

SEI Senior VP Merchandising Bob Cozenssaid companies are changing becauseconsumers are making all the decisions.

FOA of Greater LA President Kathy Yorksaid that franchisees have lost a lot ofcommunication with SEI.

“There needs to be a

better process to

get local vendors

recommended.”

—Sam Younes,Delaware Valley FOA

Southern California Franchisee JawadUrsani said under BT, sales are up andinventory variations are down. continued on page 58



It’s hard to believe that four years have come and gone soquickly. What an honor and a privilege it has been to serve as presi-dent of one of the largest FOAs in the country. Looking back, I can honestly say that I am truly proud of whatwe’ve been able to accomplish. Thanks to an incredibly dedicatedBoard of Directors—men and women who were as committed tohelping our fellow franchisees as I was—we made tremendousstrides over the past four years. Sure, there were some challengesalong the way, and there were some differences of opinionsamong Board members, but when it came to our role of servingour franchisees and helpingthem become as successful aspossible, we were always on thesame page. For that, I am ex-tremely grateful. I am also grateful to SEI andour local management team. Aswe all know, it’s not always easyto find a common ground, but through hard work, perseveranceand a shared goal (to always do what’s best for our franchise com-munity), we were able to partner in so many ways for the benefit ofour franchisees. I am very appreciative for their support and am con-fident that the spirit of trust and cooperation will continue. I’d also like to mention the solid relationships we’ve built withour vendors over the past four years. Believe me, I know how veryfortunate we are to have secured such strong bonds with our ven-dor partners. Not only have they continually supported our annualtrade shows, our holiday trade shows and party, and our charitygolf outings, but they have also taken part in our monthly Boardmeetings and our general meetings. It’s been a partnership in

every sense of the word, and I am confident that the mutual re-spect and desire to work together will continue long after myterm as president comes to an end.

Coming into 7-Eleven as a “White Hen Guy” wasn’t so easy. Iwas comfortable with White Hen. I knew my business inside andout and I wasn’t all that eager or excited to learn a whole new sys-tem. But, as often is the case, change can be good. In my case,good came out of the change. Starting off as an FOAC member, and then becoming an FOACBoard member and eventually being elected president gave me an

incredible opportunity to make adifference. It gave me a chance toshare my knowledge, to work withand learn from my fellow Boardmembers, and to communicatewith SEI for the benefit of our fran-chisees. These past four years havebeen extremely rewarding and I

am so very proud of what the FOAC has been able to accomplish. I’d like to extend my sincere appreciation to the members of theFOAC Board of Directors, especially to my Vice President Ken Patel,and to my past Vice President Sajid Ahmed. And to the franchisees, Ithank you for the show of support over these past four years andfor your active involvement with the FOAC. I’ve enjoyed getting toknow you and helping in any way I could. I will continue to take anactive role in ensuring that all franchisees are treated fairly andhave the greatest opportunities for success. I will always be just a phone call away. Being president of theFOAC has truly been a privilege and an experience for which I ammost grateful. n

“The past four yearshave been extremelyrewarding and I amso very proud of whatthe FOAC has beenable to accomplish.”

IT’S BEEN A GREAT FOUR YEARS By Joe Rossi, FOAC President

NOV•DEC• Audits—Inaccuracy of audits being done by

RGIS.• Encroachment—Real Estate must approvesites through the Market Manager, with ZoneLeader involvement if they cannot agree ona site. SEI expects to build 30 stores in theZone in 2014. On the legislative front, the Mont-gomery County Council has passed a bill in-stituting an $11.50 minimum wage in thecounty by 2017, despite opposition frommany small businesses. Adjacent PrinceGeorge’s County is expected to pass an iden-

tical bill. This legislation, combined with therecent passage of a law regulating 24-hourconvenience stores, will have a significantand detrimental impact on our businesses.

San Diego FOABic Sidhu, President Sales in the three San Diego markets areas follows: 2111—plus 0.7 percent YTD; 2112—plus 2.7 percent YTD; and 2131—plus 0.9percent YTD. Fresh food sales: 2111—$465,plus 2.2 percent, plus $10 APSD; 2112—

$386, plus 4.6 percent, plus $17 APSD; and2131—$537, plus 3.1 percent, plus $16 APSD. Hot Foods is being taken out of some


“Franchisees don’tbelieve there is anyROI on the GEAsurveys, which needto be redone.”

—Bruce Maples,NCASEF Chairman


stores with sales less than $45 per day. The av-erage per store day sales is at $55—much lessthan 2012, which was at $71 per store day. Our area is soon to go live on BusinessTransformation. This is the calendar of events:• December—Week of 12/16/13, Market

2131—25 Pilot stores go live on ElectronicCheck In (ECI)

• January—Week of 1/13/2014, Market

2131—Pilot Stores go live on Scan Audits topopulate their 'I' Item Inventory

• January—Week of 1/20/2014, Market2131—Remainder of stores go live on ECI

• February—Week of 2/16/2014, Market2111—Stores go live on ECI

• February—Weeks of 2/23 to 3/7/2014, Market2131—Remainder of stores go live on ScanAudits to populate their 'I' Item Inventory

• March—Week of 3/10/2014, Market2112—Stores go live on ECI

• March—Weeks of 3/16 to 4/4/2014, Market2111—Goes live on Scan Audits to populatetheir 'I' Item Inventory

• April—Weeks of 4/7 to 4/25 Market 2112—Goes live on Scan Audits to populate their'I' Item Inventory

Currently, all three markets all haveGRAs (Go Live Readiness Advisors) in thefield to coach and support stores as they pre-pare for the various phases of Business Trans-formation. There are BT Kick Off Meetingsfor all three markets, and at these meetingsthere is a lot of information given. Some franchisees are having a hard timeadjusting to the twice-a-week McLane order-ing. They are being forced to make these orderseven though they find it unnecessary and withadditional cost of over $700 per year. Orderwindows are being changed without any com-

munication to the franchisee. Vendors arebeing told not to deliver if an order has notbeen placed in the system—for example, RedBull is instructed to only deliver orders placedon the GOT. Franchisees feel they are losingtheir Independent Contractor Status becausethey are being told what to order, when toorder, how to order, where to put it(cooler/door handle) how many facings, etc.

We are being told to have at leastone beer display, how many SKUsof an e-cig to have, and we are di-recting store staff.

Newsways, our majormagazine vendor, has pulled outof most stores, and is now re-quiring a minimum.

Stores have an issue withtheir phone lines being used for

SEI's equipment. They should have their ownphone line or pay for the store’s existingphone line. We have had incidents where astore employee was in danger, and the em-ployee was unable to use the store’s phoneline because there was a download beingdone at the same time. Our Christmas party is on Saturday, De-cember 7 at the Harrah's Rincon Hotel andCasino. Our trade show with the FOA ofGreater Los Angeles is scheduled for January15 at the Pechanga Hotel and Casino inTemecula. Our Charity Golf Tournament isslated tentatively for early May at the SaltCreek Golf Club.

Washington, D.C. FOAMark Chiochankitmun,President 7-Eleven’s good reputation and publicimage can be here today and gone tomorrowat the speed of digital headlines on socialmedia. Some of these stories may be based ontruth, lies or a mixture of both, which is oftenwhat happens as information goes viral andmultiplies. For the past few months franchiseeshave been dealing with nightmare news and


NOV•DEC NOV•DECdrama coming from all sides of our opera-tions—cooperation with SEI on the I-9issue, giving proper and correct informationto our guests and media about the New Yorkand Virginia illegal immigration investiga-tions, SEI suing a couple of franchisees forallegedly siphoning money from theirstores, and a group of New Jersey storeown-ers suing corporate for allegedly misclassi-fying its relationship with them (in-dependent contractors vs. employees). Withall these distractions within our system,both SEI and franchisees have not been ableto focus on what matters the most in ourbusiness, and that is our bottom line. Our sales in the Washington, D.C. areahave been flat, with GP percent dancingaround 40 percent. All in all, our GP percentcould be better if we did not get charged backwhen SEI made the mistake with our vendorson CPM, LDU, and bill-backs without properbackup documents prior to the process. A Washington, D.C. lawmaker has beentasked with writing a bill to raise the city'sminimum wage from the current $8.25 perhour to $11.50. The nearly 40 percent jumpwould be realized over three years: on July 1,2014 the city's minimum wage would in-crease $1.25 to $9.50 per hour. A year later itwould become $10.50 per hour, and on July1, 2016 the city’s minimum wage would reach$11.50. We believe our neighbor lawmakersin Maryland and Virginia are trying to passthe same $11.50 minimum wage. Watch out,it is coming to the city near you.

Kansas City FOAFaisal Asad, President Kansas City has been chosen for morecommerce by many companies like BNSFRailway, Google Fiber, Unilever, Cerner,Ford, Garmin, and many others pouring bil-lions in the local economies! For major corporations, business andcost of living in Kansas City is cheaper thanon the east and west coasts. Kansas City,Kansas and Kansas City, Missouri has aggres-sive plans, like introducing street cars and

many projects that will make Kansas City at-tractive for more businesses and families tomove in! St. Louis is also in a growth mode. As we continue to sail with under 38 lo-cations in Kansas City—out of which 27 are30-plus year-old stores—the head winds arestrong and we seriously need tail winds in theform of investments in our current stores andupgrading our image. Our competitive land-scape has changed very much, and KansasCity regional players are now in Dallas andmany other areas around the country. No onethought these regional players would enterthese markets.

We should invest in our assets, and buymore assets in Kansas City and St. Louis so wecan strengthen our brand footprint andimage. Another opportunity is to partner witha major grocery store for gas cents-per-gal-lon-off program. I know a local grocery storechain (HY VEE) knocked on our door a cou-ple of years ago for same kind of program(like our competitors) at HY VEE’s expense. For the third quarter 2013, total storecount is 76. Merchandise Sales are down($79) APSD. Merchandise GP is down ($27)APSD—32.50 percent 2013 vs. 32.54 percent2012. Guest counts are down (#19) APSD. In-ventory Turns: July 2013 at 15.9 vs. 16.6 2012,August 2013 at 16.1 vs. 15.9 2012, September2013 at 15.6 vs. 15.4 2012. Inventory turnsalso improved from last year. We were the87th market last year and now we are the77th market in Inventory turns. I believe thatwith BT it will improve more.



Rocky Mountain President Wayne Matthewsspoke for transparency in National Coalitiondecision making and accounting.

Shamrock Farms’s Chris Perry presentednew deals on Rockin’ Refuel real milk with30 grams of protein.

Senior Project Manager Linda Flemmingsaid the first rollout of the new CHD on-line will commence in January 2014.

Greater Bay FOA President Ray Dhaliwalcommented during the discussion on sup-porting franchisees with legal problems.

“The primary goal of CHD onlineis to make it easier for storeswhen they have a problem.”

—Linda Flemming, Senior ProjectManager, Shared Services,7-Eleven, Inc.

“The BT Hybridbeing rolled out in

Los Angeles is aperpetual

inventory systemthat audits

item-by-item.”—Daniel Garcelon,

Senior IT Director, BT

Delaware Valley FOA President Al Haffarwants 7-Eleven stores to be considered afresh and hot foods destination.

Pacific Northwest FOA Pres. ManinderWalia said franchisees are embracing theBT being rolled out in Washington state.

“Franchisees are afraidto go to Asset Protection. We shouldnot be banged on forsharing information.”

—Overheard at theNovember meeting

NOV•DEC

Pacific Northwest FOAManinder Walia, President This fourth quarter of 2013 has been achallenge for stores in our markets. Sales havebeen relatively flat for the last two months,and gasoline gallons are down by about 12percent to 15 percent compared to last year.The hot foods program was installed in 50more stores in our area. The $5.55 pizza pro-motion has helped increase fresh food salesin stores, with some stores averaging about20 pizzas PSD. Average hot food sales in ourarea are $85 PSD. BT is being launched in 25 pilot storesbeginning the second week of December,and the rest of the stores will be online inearly February 2014. Franchisees and em-ployees are being trained on the new deliverysystem and electronic check-in of store de-liveries. We are hoping this rollout will besmooth and franchisees and their employeeswill have minimum issues. Issues like accu-rate delivery check-in, damaged product re-turns, paper invoices, etc., were discussedwith SEI team members. Franchisees arecomplaining about holiday pre-books worththousands of dollars being sent to storeswithout their approval.

During the November elections a ballotmeasure was approved by voters to raise theminimum wage of airport workers and thoseworking in hotels and restaurants by the Sea-Tac airport to $15 per hour. The hourly min-imum wage for all workers in WashingtonState will increase to $9.32 per hour startingJanuary 2014. Our annual FOA holiday party was cele-brated on December 6 in Kent, WA and fran-chisees enjoyed the evening with food, drinksand entertainment. The Pacific NW 7-ElevenFOA Board wishes all franchisees across thecountry a prosperous and happy new year.

UFOLIJack Rugen, Vice President On the legislative front, we are taking astiff stand against President Obama's pro-posed increase in the federal cigarette excisetax by $0.95, bringing the federal tax on ciga-rettes to almost $2. We are working with theSave Our Stores coalition and Forum Strate-gies (P.R. firm for Altria). 7-Eleven fran-chisees as tobacco retailers need to participatein the regulatory process through their localFOA or NCASEF to thwart this effort, albeitthe revenue generated goes for a good cause.We need to insist that government find an-other means of generating this revenue. Governor Andrew M. Cuomo signedlegislation into law to reform New York's Un-employment Insurance System. The Unem-ployment Trust Fund did not have enoughmoney to pay the cost of benefits during therecent recession. Employers are paying back

$3.5 billion that was borrowed from the TrustFund, plus interest. Reform will pay back thatdebt more quickly and save employers an es-timated $400 million. Minimum Wage Increase—The statebudget contains a provision to increase theminimum wage over three years from $7.25to $9 per hour in 2016. The provision also in-cludes a minimum wage tax credit for busi-nesses that hire teens and subsidizes theminimum wage for these businesses througha tax credit. Downstate gas stations are legislativelymandated to install back-up power plants. The Save Our Stores coalition andUFOLI provided strong attendance and ex-pert testimony at the initial hearing on MayorBloomberg's cigarette display ban, minimumprice of $10.50 per pack and e-cig jurisdic-tion, and raising the legal age to purchase to21. We were successful in eliminating the cig-arette display ban, and e-cigarettes inclusionand adding increased penalties for retailerswho evade tobacco taxes. Problems: Some of the information onthe data sheets is incorrect. The Coca-Cola



Fin reps Rick Torgalski and JenniferHunter described the introductory bill-back offer of $36 on each SKU.

SEI VP Franchise Systems Frank Gambinasaid we are here to help each other growour businesses.

Vice Chairman Jas Dhillon said inventoryvariation reduction is huge under BT.

San Diego FOA President Bic Sidhuwarned about employee safety if the landline is used for money orders and security.

“Franchisee morale isdeteriorating becausetrust is starting todisappear.”

—Mark ChiochankitmunPresident, Washington, D.C. FOA


2-$2.50 promo GP% was mis-stated at 29.7percent when, in actuality, it was 11.7 per-cent. We need more accurate details on GP%on promos so as to make an informed busi-ness decision. Who knows what other infor-mation coming out of Dallas HQ is faulty. Wemoved this up through the BLC, also. Negative Effects: On sales, Retailer Ini-tiative is all but dead. Corporate makes itmore and more difficult to carry what ourcustomers want and almost impossible tomanage and order. The recent change inThanksgiving McLane delivery schedule did-n't help. This needs to change before BT isrolled out here in the North Atlantic Zone. Our annual Holiday Party was held onDecember 4th. We had 190 attendees. Our

treasury is back up to above Tariq Khan lev-els. Our Board is run like a fine-tuneddemocracy ... a far cry from the totalitarian-ism of the previous President.

Central California FOASunny Chauhan, President Month to date through November 25,Merchandise Sales are soft and are trendingat 1 percent due to cooler weather. Thanks-

giving was a week earlier last year along withBlack Friday, so we should see a sales bumpby the end of this week. We are projectingthat we will finish positive at 2.5 percent bythe end of November 2013.

There has been significantgrowth in PSA 17 (Food Serv-ice) in our market since the roll-out of hot foods in several stores.Our market is currently leadingthe country in Whole Pizza Salesat 10.1 APSD, and franchiseeswith hot foods stores the local

consultants and the market manager are veryproud of this accomplishment. Many new stores are opening in ourmarket area in December. One in Modesto,one BCP in Watsonville, one in Atwater, andone in Fresno in January 2014. Additionally,there was a father/son changeover in Taft andfive more changeovers (franchisee-to-fran-chisee, and Corp-to-franchisee) scheduled inDecember, and one more franchisee-to-fran-chisee changeover in January.

Our market area was visited by SVP(West Coast) Ina Williams and Zone LeaderNancy Taylor. During this visit they stoppedat several stores, spoke to franchisees, andgave them feedback on their stores. They alsolistened to our issues and concerns regardingCDC and Accounting, and took notes andpromised to get back to us and help removesome of the obstacles.

Columbia Pacific FOAWilliam Huffman, President

The Columbia Pacific FOA has wel-comed five new Board members this year.They are: John (Harbarjon) Ghotra, JunaidAkhtar, Stan Singh, Tim Jewsbury, and SuzyHo. Both Stan and Tim are on the NBLC, sowe have great representation on our Board. Sales in Oregon and Southwest Wash-ington for the first six months of 2013 are up4.95 percent. Gross income is up 5.3 percent,and net income is up $1556 for this six-month period. Current issues affecting franchisees areI-9s, maintenance charges, underperformingstores, “Red” scores on the multiple qualifi-cation scorecard, and pressure by field con-sultants to comply with the ever-changing7-Eleven Business System. Stores in SouthernOregon are dealing with soft sales due tothick smoke and severe unhealthy air qualityconditions caused by the tremendousamount of forest fires throughout the region. Market 2363 has a new Market Manager,Chris Bill, who has been an outstanding field


NOV•DEC

Virginia FOA President Waqar Sheikh saidhis FOA is giving $500 to each franchiseewho attends the 7-Eleven Experience.

Vice Chair Roger St. George remindedthe Board that ecigs are selling but theFDA will soon rule on health concerns.

Rehan Hashmi, VP Alliance of 7-ElevenFranchisees FOA, asked for better account-ability and response from SEI accounting.

Aaron Choate from Swedish Matchdescribed a no-risk free trial roll via billback on Swedish Match SNUS.



consultant for almost 20 years in Market2361, and we welcome her to our market.Our John Wilkerson Memorial Golf Tourna-ment was held August 2nd in Salem, with al-most 100 golfers attending. The weathercooperated and a great time was had by all.Our next event is a General Membershipmeeting October 10th in Portland.

FOA Of Southern CaliforniaNachhatar Bhullar,President The FOASC had a very dynamic year,thanks to the ceaseless efforts of the entireBoard and other members. With their hardwork, perseverance, relentless efforts and pas-sionate support we were able to achieve manymilestones in 2013. In 2013, the FOASC had nine StatedMeetings with excellent participation fromvendors, members and SEI. Our meetings at-tendance averaged around 120-150, andthere was terrific vendor support. SEI man-agement gave presentations on Promotions,Sales Plans, New Store Real Estate, Franchis-ing System, and the Multiple Criteria forFranchisees. There were also multiple presen-tations given on Human Resources andLabor Law issues. The FOASC Trade Show was held onMay 22, 2013 at the Pasadena ConventionCenter. We had over 104 booths where vari-ous vendors displayed their fine products.

The SEI team also came out with full support.They displayed food and drinks at one of thebooths. The FOASC recognized the fran-chisees who have been with the 7-Eleven sys-tem for more than 25 years with gifts,regardless if they were members of theFOASC or not. There were also many raffleprizes given away to the various attendees. The 27th Annual Joe Saraceno FOASCCharity Golf Tournament was successfullyheld at the Pacific Palms (Industry Hills) Golf

Club on August 14, 2013. We strongly believein helping the needy in whatever way we can.We donated $ 20,711 to the Los Angeles Chil-dren's Hospital. It was possible due to thetremendous support of our vendors and ourmembers. The FOASC Holiday Party held at Ararathall, Mission Hill on December 7, 2013 endedthe year with a bang. It was attended by morethan 600 people, which included vendors, SEImanagement teams and franchisee members.What a way to end the year. We are looking forward to 2014. I amsure with all the help from vendors, membersand SEI management it's going to be betterthan previous years. For us the sky is thelimit. We still have a ways to go, and this will

only be possible with your continued sup-port. Thank you.

Chesapeake Bay FOAStuart Walters, President The Chesapeake Bay FOA hopes this re-port finds everyone doing well. It's tough tomanage a business amidst the turmoil oflower consumer spending, increased govern-mental obstacles, and just dealing with theeveryday aspects of the convenience storebusiness. Our group has continued to focus on thethings that are within our control. Two exam-ples of this include vendor relations and fran-chisee/franchisor relations. We as a group, aswell as each of us as individuals, try to betterthe deals that we have with our suppliers andvendors. When we approach vendors, I en-courage each person to think about thingsfrom the other side. That is, what does thevendor really want to accomplish. While weautomatically think they want a higher cost,that might not be the case. Sometimes costisn't their objective. Their objective could bevolume or location of their products. I recall one vendor negotiation in whichI was able to negotiate a lower cost in returnfor giving the vendor exclusive vendor status.The vendor wasn't immediately excited aboutoffering us his products at a lower cost andthus lower profit for him. However, when wediscussed his objectives, he really wanted toexpand his operation. I asked him what heneeded to expand and we discovered that he

FM’s Trevor Foster and John Pavia urgedall franchisees to sign on to www.FM24-7.com to solve problems.

Central Florida President Fari Ishani saidhot foods need markup and should bechanged on M01s.

Board members heard presentationsfrom a dozen manufacturers on day threeof the meeting.

“Franchisees takingadvantage of Work

Opportunity Tax Creditfrom the company TaxBreak are not out-of-pocket on any fees.”


NOV•DEC

“Stores are receiving higher GEAscores, but guests are not getting abetter experience due to the waythings are scored.”

—Rich Rose, President, Cal-Neva FOA


really needed a larger portion of my business.By talking with the vendor, I was able to getwhat I wanted—a lower cost—and he gotwhat he needed, more business. Oftentimes vendors need our accept-ance of new products to attain their salesgoals or new product introduction goals. Ourtrade show, which is scheduled for April 29,2014 at the Virginia Beach Convention Cen-ter, has in the past created a good venue for

vendors and franchisees to interact. Ourtrade shows of past have brought vendorswith new and hot products, vendors withproducts that have discounts negotiated fortrade show participants, and franchisees whoare ready and willing to work together for asuccessful event. In improving franchisee and franchisorrelations, the basis is simple. We need to havemore, effective and time appropriate commu-nication. Just as with the vendor example, ourfield consultants are more time-crunchednow than before. They are being pushed tohit the numbers, gain more acceptance ofnew products, and of course, deal with all theother stuff. The other day, a franchisee told me theirfield consultant was texting her and hermanager late into the night and early morn-ings "reminding" them of the weekly push,to order new items, etc. I asked the fran-

chisee how she felt getting texts at 10pm. Shesaid, "If it were something important, some-thing new or something I forgot, I would bemore accepting of being awoken." I askedher if she asked the field consultant to stoptexting her. She told me that "she did not feelcomfortable." The field consultant is tryingtheir best to improve sales, hit their num-bers, etc., and they are in most cases doingwhat they think is right. But, back to the

right time ... I encouragedher to talk to the field con-sultant about her feelings,her situation and if resolu-tion was not achieved then Iwould help.

I think this is the caseacross our FOAs. As technol-ogy improves, so does theneed to think about its use.Most have smart phones thatreceive email, text and ofcourse, voice mails. Most use

this technology as a primary means of com-munication. However, isn't face-to-face com-munication the best?

Virginia FOAWaqar Sheikh, President I'm encouraging franchisees to attend theupcoming 7-Eleven Experience. I look at it likea family reunion, and we want franchisees tohave the opportunity to meet together at leastonce a year. The event is being held again inLas Vegas. It is a little difficult for the east coastfolks to travel and spend large amounts ofmoney on the tickets, but there are savings onthe hotel accommodations. I have requestedto have this event on the east coast next yearand to move it to the summer time so wecould have better weather conditions. Forthose of us on the east coast, we would prefera spring or summer event. SEI promised they

would look into having the event on the eastcoast next year. From the perspective of franchisees, wehave to look at the future to see what thecompany has planned us and what is new.The 7-Eleven Experience gives us this oppor-tunity and allows us to prepare ourselves andadapt to the new culture and the things thatare coming. It also gives franchisees the op-portunity to meet each other and see whatour common problems and issues are, andhow we can address them.

“If your FC can’tanswer your

question, yourMarket Manager

needs to take yourproblem to

another level.”

—Joe Galea, President,

SF/MB FOA

Northeast FOA President MohammedIskandar said not enough franchisees inMassachussets are receiving AQIP.

Southern California FOA Vice PresidentPaul Lobana said the franchisee relation-ship strongly favored the franchisor.

The representative from Tax Break saidfranchisees can save thousands of dollarsby applying for employee tax credits.

We also get to see what new technology7-Eleven has in store for us. At the last 7-Eleven Experience we had the opportunity tosee a lot of new things that are coming. Onthe last night, there was a wonderful concertwith great music. It gave us a chance to enjoyourselves with the 7 Eleven executive team.Mr. DePinto was there and we were happy tosee him, like we are all a family. What we did last time in our FOA waswe gave about 25-30 franchisees tickets to goto Las Vegas to attend the function. This year,since we have limited resources, we are offer-ing $200 towards the purchase of a ticket toLas Vegas to our members. The cost of a 7-Eleven Experience ticket is about $500. I con-sider this to be one of the most importantevents of the year, the other being theNCASEF Convention. We always encouragefranchisees to attend both of these events andwe will do the same this year.

In regard to our FOA, we have our tradeshow coming up on March 27, 2014. We have aholiday party planned for December 31st. Icongratulate Mr. Joe Galea on becoming theChairman of the National Coalition. He's a verygood friend and I know he reaches out to thefranchisees and visits. He's been to Virginia sev-eral times. Any time we have an issue, we wouldcall him and he would offer his assistance. I'mlooking forward to working with him.

Delaware Valley FOAM. Al Haffar, President Sales figures in most stores are about neg-ative 2 percent. Many stores had welcomed theaddition of hot foods program, but overallsales was not as expected. In many stores, ittook away from fresh foods and grill sales. Weare not being thought of as a destination forfood in the Delaware Valley, while our main

competitor Wawa is considered a prime des-tination for food with a diverse selection ofboth hot and cold offerings supported bystrong advertising. Many stores in our regionare available for sale, while demand for fran-chising is pretty low. Our last local meetingwas very well attended; we hosted three ven-dors. Sales had some improvement due to re-cent weather conditions.

SEI Director Franchise Relations EricDeFrancisco said a new plan is beingdeveloped to step up communicationswith franchisees.

NOV•DECNOV•DEC continued from page 65

“Technology today puts the buying decision in thehands of the well-informed consumer.”—Bob Cozens, Senior VP, Merchandising, 7-Eleven, Inc.



line. New Nielsen data for 2013 is not yetavailable, but 57.5 percent of retailers re-sponding to CSNews’New Products Score-card survey in October said they haveincreased the number of new productsthey’ve added to their shelves this year,compared to 50 percent who did so in2010, the last time CSNews conducted itsnew products study. In comparison, only11.3 percent said they decreased new itemsthis year (down from 13.8 percent in 2010),while 31.2 percent said they are carrying“about the same” number of new items.

Couche-Tard’s SecondQuarter Results Show Gains For its second quarter of fiscal 2014,Canadian c-store retailer and Circle K par-ent company Alimentation Couche-Tardannounced net earnings increased 26.8percent to $229.8 million. The companyalso said it’s same-store merchandise rev-enues increased 4.5 percent in the U.S., 1.9percent in Europe and 3.2 percent inCanada. Merchandise and service grossmargin stood at 32.8 percent in the U.S.,at 39.9 percent in Europe and at 33.2percent in Canada. Road transportationfuel gross margin stood at US 21.56¢per gallon in the United States, atUS 11.43¢ per litre in Europe,and at CA 6.67¢ per litre inCanada.

U.S. Beer Consumption Rises The beer industry saw gains in bothdollar and volume in 2012 after a three-year downturn, according to the recentlyreleased Beverage Information Group's2013 Beer Handbook. Well-marketed new

products andslight improvements in the unemploymentrate contributed to the beer industry'soverall growth. Although the second halfof the year didn't fare as well from an eco-nomic standpoint, the industry was stillable to see an increase of 0.8 percent to 2.9billion 2.25-gallon cases.

Super-premium, Craft, Imported andFlavored Malt Beverages out-performedthe industry overall, as there is increasingdemand for higher-priced beer. Super-pre-mium and Premium increased 1.6 percent,and Craft increased 13.7 percent to reach185.2 million 2.25-gallon cases. This is thelargest increase for Craft beer in more than


Cementing The Bond:A Simple Strategy Is SoughtDuring each and every National Coalition election, Board members may not agree on

the choice of leaders, but they do agree in finding the solutions to the most common, but pressing, issues.Each FOA president often carries the message from his or her association’s members in regard to the mostimportant issues, concerns, and problems, with the expectation of finding answers to their questions.

Now that the elections are over, we lookforward to the National Coalition’s new leadershipusing its best abilities to resolve old challenges.

I have served on the National CoalitionBoard through the terms of at least four Chairmen,each of who have shown their communication

skills, strong leadership, and commendable performances in bridging the gap between Dallas and the fran-chise community nationwide. My hat is off to all of them! However, franchisees today want to see muchmore done in terms of resolving issues like the franchisee fee, encroachment, DVR remote monitoring, andmany others. Franchisees have very high expectations from the newly elected leadership group. Franchiseestoday want answers. Lame excuses do not calm their anxieties.Franchisees don’t want to expect “a much delayed” answer to the“much anticipated hopefulness.”

There is a definite need for a speedy solution to existing prob-lems, a full-throttle push to extinguish the burning issues, and keep-

ing the unity among the franchise communities. Now,just bridging the gap between the franchise commu-nity and SEI should not be good enough. We need to

cement the bond that we have been carryingfor a very long time. Franchisees, indeed,

work hard for their livelihoods, yet smiles aremissing on their faces. In brief, franchisee morale is

down. Although a new shift in approachis sought from the new leadership, let

time be the judge of it.

The new leadershipseems to be well aware of the issues. All we need to do is to support

and keep our faith to work in unity. n

www.ncasef.com


“Franchisees today wantanswers. Lame excuses donot calm their anxieties.”

“Just bridging the gapbetween the fran-chise communityand SEI should notbe good enough, butwe need to cementthe bond that wehave been carryingfor a very long time.”


By Jay Brar, President, Sacramento FOA


www.ncasef.com


start of the year—they count on Washington for about half of their trans-portation funding. To fund the current federal transportation bill, whichexpires next year, Congress transferred more than $50 billion from generaltax revenue.

Olympia Council Bans Plastic BagsThe Olympia, Washington City Council recently voted to ban thin plas-

tic, grocery-style bags from city retailers starting in July, reported TheOlympian. The ban will apply to all retailers, but mostly affect supermar-kets, many of which use the so-called “t-shirt bags.” Shoppers will eitherhave to bring their own reusable bags to stores or pay 5 cents per paperbag. The money will go directly to stores to offset their costs. Other plasticbags, such as the thin bags used for meat or produce and the thickerplastic bags used by department stores, are exempt fromthe ban. Newspaper bags, doggie bags and drycleaning bags are also exempt.

New Menu-Labeling Legisla-tion Favors C-Stores

New legislation introduced in the U.S. Senate—theCommon Sense Nutrition Disclosure Act (S.1756)—in-cludes language that would exempt most convenience stores from the Af-fordable Care Act’s (ACA) menu-labeling requirement, reported NACSOnline. Under the regulations implementing this requirement chain restau-rants, “similar retail food establishments,” and vending machines with 20 ormore locations must provide specific nutritional information like calorie-counts on menus, menu boards and drive-thru boards.

The bipartisan legislation introduced by Senators Roy Blunt (R-MO)and Angus King (I-ME) limits ACA’s menu labeling provision to establish-ments that derive 50 percent or more of their revenue from food that is in-tended for immediate consumption or prepared and processed on-site.Prepackaged food would not be considered in this equation. Given that 17percent of convenience stores’ in-store revenue dollars is derived fromprepackaged food, according to the NACS State of the Industry Report of2012 Data, most c-stores would be exempt under the new legislation.

San Francisco Hit With Two Soda Tax Proposals

Shortly after San Francisco Supervisor Scott Wiener unveiled a pro-posal for a 2-cents-per-ounce sugary beverage tax, Supervisor Eric Marannounced his own tax proposal, reported the San Francisco Chronicle. Thetwo proposals are remarkably similar—both target sugary-drink distrib-utors, both impose a 2-cents-per-ounce tax, and both would use the esti-mated $30 million a year for health and nutrition programs to fightdiabetes and other health issues associated with sodas, energy drinks andother sugary beverages.

Where the proposals differ is how the money would be spent. Wiener

has proposed giving one-third to the school district, one-third to theRecreation and Park Department, and one-third to the Department ofPublic Health. Mar is focused on making sure the people most affected byconsuming sugary beverages—namely, people of color and those withlow incomes—get the majority of the funding. Ultimately, the supervi-sors said, they plan to work together to boil down both proposals into onepiece of legislation to put before city voters next November.

NY Court To Hear Bloomberg’s Soda Ban AppealNew York state’s highest court recently agreed to hear New York City

Mayor Michael Bloomberg’s appeal of a decision striking down a ban onlarge sugary drinks in New York City, setting up the final showdown over

one of the outgoing mayor’s most controversial policies, reportedReuters. The law would have barred restaurants, movie theaters,food carts and other businesses regulated by the city’s health de-partment from selling sodas and other sugary beverages larger

than 16 ounces (473 ml). In March, just one day before it wasto take effect, a state judge found the policy to be illegal, rul-

ing that the city’s mayoral-appointed health board had ex-ceeded its authority when it approved the new regulation.

Bloomberg said he expects the state’s top court to overturn the lower-court rulings, arguing that the lower appeals court had ignored decadesof case law establishing that the health board has unique powers to regu-late public health.

NYC Raises Smoking AgeNew York City Mayor Michael Bloomberg recently signed a bill into law

raising the legal age to buy cigarettes from 18 to 21, reported the New YorkDaily News. This makes New York the first major city in the country to enactsuch a restrictive law.Bloomberg said thenew law, which kicksin on May 18, 2014,“will prevent youngpeople, we think,from experimentingwith tobacco when they are most likely to become addicted.” Bloombergalso signed a bill to set a minimum price of $10.50 for cigarettes, prohibitdiscount offers, and step up enforcement against evasion of cigarette taxes.

NY County To Increase Tobacco Purchase AgeLawmakers in Suffolk County, New York plan to introduce legislation

in January that would raise the age to purchase tobacco and electroniccigarettes from 19 to 21, the Times Beacon Record reported. Inspired byNew York City’s landmark legislation doing just the same, the SuffolkCounty Board of Health unanimously endorsed sending a letter to theLegislature just one day after Mayor Michael Bloomberg signed New York

Legislative Updatecontinued from page 20

“New York City has raised the legal ageto buy cigarettes from 18 to 21.”



www.ncasef.com



a decade. Imported beer also increasedfor a third year, up 1 percent largely dueto consumer demand for a wider selec-tion of products.

The Lucrative Dairy Alter-native Beverage Market The dairy alternative beverage mar-ket—which includes soy milk, almondmilk, rice milk, etc.—is projected to reacha value of $14 billion by 2018, accordingto the report "Dairy Alternative (Bever-age) Market—Global Trends & Forecastto 2018." In 2012, Asia-Pacific was thelargest market for dairy alternative bev-erages. The report also shows that soymilk dominated the dairy alternativebeverage market, and that the market isprojected to grow with continued sup-port from the government and health as-sociations in different regions.Additionally, the leading players in thedairy alternative beverage market prefernew product launches and expansionstrategies to strengthen their position inthe market, and continue to invest onR&D to launch new products in differentflavors, types, pack size, etc.

Debit Cards Vs. Credit Cards The more than 20-year trend thathad debit card purchase volume andpurchase transactions gaining share ver-sus credit cards ended in 2012, accordingto The Nilson Report. Credit cards ac-counted for 52.82 percent of spending in2012 compared to 47.18 percent for debitcards. In 2011 credit cards accounted for52.63 percent and debit cards accountedfor 47.37 percent of $4.301 trillion inpurchase volume. In 2017, 54.72 percentis projected to be generated from creditcards and 45.28 percent from debitcards. The company reported spendingfor goods and services on general pur-pose and private label consumer andcommercial credit, debit, andprepaid cards reached$4.633 trillionin 2012, and isprojected toreach $7.285trillion by2017.

nounced a strategiccommitment to hire vet-erans and active dutyspouses in response to record growth and in anticipa-tion of a 500,000 person future global workforce. • Cir-cle K parent company Alimentation Couche-Tardannounced it has signed an agreement with Albu-querque Convenience and Retail to acquire 23 storesin New Mexico. The company said it has also signedan agreement with Publix Super Markets to acquire 13stores—11 in Florida and two in Georgia. • Ama-zon.com is working with the U.S. Postal Serviceto deliver packages on Sunday, starting in theLos Angeles and New York metropolitan areas. Thecompany said it plans to roll out this service to a largeportion of the U.S. population in 2014. • Iowa’s ciga-rette tax revenue has dropped 9 percent over thepast six years, following a statewide ban on smoking inmost public places and a federal tobacco tax increase,reported the Des Moines Register. • According to a newNielsen survey, 84 percent of global respondents saidthey are more likely to visit retailers that offer a loyaltyprogram. • E-cig maker Mistic recently aired itsfirst television commercial, which highlights thevalue of its product compared to traditional tobaccocigarettes. The new ad premiered on November 1 andfeatured a creative short story using whiteboardanimation video. • Powermat Technologies re-cently launched a pilot program with specialtycoffee and tea chain The Coffee Bean & Tea Leafto bring Duracell Powermat wireless phone charging toconsumers in the Los Angeles area. • Supermarketchain Kroger announced recently it was named the2013 Retailer of the Year by Wine Enthusiast Maga-zine for its “dynamic growth, dedication to wine, abilityto foresee trends and customer service.” • Farmer’sFridge has begun offering a unique healthy vendingconcept in the Chicagoland area, offering fresh salads,sides and snacks made from scratch each morning, re-ported Vending Times. • Gap Inc. is reporting im-proved sales and profits, thanks to its efforts to“omnify” its online and brick-and-mortar experi-ences to sustain momentum, reported Women’s WearDaily. • Three in five (62 percent) consumers want tosee more hybrid-electric vehicles over the nextdecade, two in five (43 percent) want to see more bat-



Join The National CoalitionThe strength of an independent trade association lies in its ability to promote, protectand advance the best interests of its members, something no single member or advi-sory group can achieve. The independent trade association can create a better under-standing between its members and those with whom it deals. National Coalitionoffices are located in Tucson, Arizona. All queries and requests for information shouldbe directed to:

National Coalition of Associations of 7-Eleven Franchisees3561 East Sunrise Drive, Suite 135Tucson, AZ 85718Office 520-577-8711Fax 520-577-4688E-mail: [email protected]




tery electric vehicles andone in three want to seemore fuel cell (34 percent), natural gas, (31 per-cent) or flex fuel vehicles (30 percent), accordingto a new consumer survey conducted by NACS. •Stan Sheetz, chairman of Sheetz ConvenienceRestaurants, was recently inducted into the Con-venience Store News Hall of Fame in recogni-tion of his accomplishments in the convenienceretail industry. • Texas-based c-store retailer SusserHoldings recently announced it has acquiredall of the c-store assets and fuel distribution con-tracts of Sac-N-Pac Stores and 3W Warren Fuels.Sac-N-Pac owns and operates 47 c-stores in theSouth Central Texas corridor, and 3W Warren Fuelssupplies motor fuel to those locations. • A newstudy conducted by researchers at Harvard Univer-sity has found that raising the cost of high-calo-rie beverages by a few cents—andhighlighting calorie content in places where theyare sold—decreases sales, reported USA Today. •Among adults, water (both tap/filtered and bot-tled) is the top beverage consumed throughout theday, according to research by The NPD Group. Start-ing with the snack occasion between breakfast andlunch, water represents 46 percent of drink-ings and is also the top beverage at lunch anddinner. • Forty-nine percent of shoppers planned tomake Black Friday purchases from their smart-phone, according to a pre-Thanksgiving survey byAsurion. Additionally, 46 percent of respondentssaid the smartphone would be their shoppingassistant, and 35 percent said they would usetheir smartphone to find discount codes andcoupons. • Nearly 30 percent of Americansplanned to sit down to a Thanksgiving dinnerthat included at least one prepared ready-to-eatdish from a retailer, restaurant or caterer, accordingto a recent Technomic survey. This proportion hasgrown from 23 percent in 2011. • According to theRetail Gift Card Association, 74 percent of con-sumers planned to give one or more gift cardsthis holiday season, and nearly 30 percent sur-veyed noted they planned on giving five or moregift cards. • Walgreens Healthcare Clinics will soonoffer mobile appointment scheduling chain-



City’s bill into law. The measure’s author, William “Doc” Spencer,believes the legislation is needed to protect youth, citing scien-tific studies that show young people are “a lot more susceptible toaddiction.”

Utah Lawmakers Propose Raising Smoking Age

Two Utah lawmakers want to raise the legal age to buy to-bacco from 19 to 21, which would match the minimum age fordrinking alcohol, reported the Deseret News. Rep. Kraig Powell (R-Heber City) and Sen. Stuart Reid (R-Ogden) presented the proposal to the Health and HumanServices Interim Committee on November 20. In addition to cigarettes, the bill would raise theage for buying smokeless tobacco and e-cigarettes. Utah would be the first state to raise thetobacco-buying age to 21 should the proposal become law. Several other states, including NewJersey and Hawaii, are considering doing the same.

D.C. Jumps Into The Smoking Age FrayWashington, D.C. is moving toward banning the sale of tobacco products to adults under

the age of 21, reported U.S. News & World Report. D.C. Councilman Kenyan McDuffie recentlyintroduced legislation to raise the age limit with at least four of his 12 council colleagues as co-sponsors. “Raising the minimum age to purchase tobacco products from 18 to 21 will decreaseaccess to cigarettes, and, more importantly, may decrease the rate of smoking in young adults,”the councilman said. Unlike the New York City law, D.C.’s proposed legislation does not banelectronic cigarettes for young adults.

Chicago Mayor Cuts Cigarette Tax HikeChicago Mayor Rahm Emanuel recently shaved a quarter off his 75-cents-a-pack cigarette

tax hike to appease aldermen concerned about street corner sales of loose cigarettes, reportedthe Chicago Sun-Times. To make up for $2 million in lost cigarette tax revenues, the fine forparking at a fire hydrant will be raised to $150, instead of $100. Another $1 million will comefrom “indirect services” the city’s corporate fund provides to O’Hare and Midway airports thathas not been “fully captured.” The newspaper stated Emanuel’s decision to reduce the tax from75 cents to 50 cents a pack continues his pattern of tinkering at the margins of his city budgetsto appease critics without giving away too much.

States Move To Regulate And Tax E-CigsWith federal regulation lacking, many states are pressing ahead with their own agendas

on electronic cigarettes, reported USA Today. Heading into legislative sessions next year, law-makers are expected to tackle how to classify, regulate and tax the relatively new products. Thedebates in states come as the FDA is considering classifying e-cigs as “tobacco products,” which

would extend its reach and potentially subject the devices to ahost of rules and regulations that apply to tobacco cigarettes. Aproposed rule was expected to be released for public comment inNovember, but was delayed by the government shutdown and isstill pending.

In the meantime, more than half the states have banned thesale of e-cigs to minors, but others have no restrictions. Currentlyfour states—Utah, North Dakota, Arkansas and New Jersey—havelumped the products in with tobacco under indoor smoking bans,

“Many statesare pressingahead with theirown agendas toregulate e-cigs.”


“Chicago’s mayor

has dropped his

proposed cigarette

excise tax hike by

25 cents.”

Legislative Update

Who to hire is an impor-tant decision. Your employeeswill be handling cash, workingwith inventory and interactingwith customers. A back-ground screening programcan help you find thebest employees and re-duce your exposure tounreliable employees, criminal behavior andworkplace violence.

The Benefits Of A Background Check:• Reduces turnover—and hiring costs—by iden-

tifying potentially questionable employees. • Reduces losses from theft and helps protect

your data and assets.• Increases safety by reducing the chance of

workplace violence.

What Is Included In A Background Check Some of the more common backgroundcheck searches are for criminal records, sexoffender records, and social security numberand address verifications. Different companiesoffer different background check productsand services. It is best to check with eachcompany and find out what they offer.

Background Screenings At A Special Rate One benefit of the 7-Eleven insurance pro-gram managed by the Lockton Companies isaccess to discounted background checks. As

part of the program, Lockton isteaming up with Allied Insur-ance to offer IntelliCorp’s plat-inum background checkpackage at a special rate of

$12.95* per search. Theplatinum package includessearches for criminal andsex offender records, and

verification of who may be using a certain so-cial security number.

Lockton is apartner of National Coali-tion of Associations of 7-Eleven Franchisees.Through its sponsorship,Lockton is able to offerimportant property and

crime coverages, and additional benefits for 7-Eleven franchisees.

For More Information To learn about the 7-Eleven business insur-ance program and the special background checkoffer, contact Tanya Sanders with Lockton at214-969-6742 or email [email protected].*Subject to the terms and conditions of the offer negotiated betweenAllied Insurance and IntelliCorp



wide through the newiTriage app, which willalso allow patients to identify symptoms and ac-cess a directory of nationwide medical providers. •“Made to Order: The Sheetz Story” is a newbook tracing the history of Altoona, PA-based c-store chain Sheetz. • Altria has increased the listprice of its Philip Morris cigarette portfolio by 7-cents per pack. • C-Store chain Wawa recently an-nounced a statewide partnership with theNew Jersey Lottery to offer self-service ticketmachines at all 210 Wawa stores in the state byMemorial Day. • Online retailers saw theirsales soar on Cyber Monday, reportedBloomberg. The day’s sales were up 19 percent overlast year, according to data from IBM. • KrispyKreme Doughnuts reported its third quarter offiscal 2014 revenues increased 6.7 percent, samestore sales rose 3.7 percent—the twentieth con-secutive quarterly increase—and adjusted net in-come rose 33.8 percent. • Nevada-based internetretailer, TAG Solutions LLC, recently announced itsnew online store at www.TAGsolutionsonline.com is open for business, offering a variety ofe-liquids for electronic cigarettes. • Recentlylaunched Shweebo is a unique new packageforwarding company that lets people from allover the world shop in their favorite U.S. stores andhave their purchases delivered right to their door fora low cost fee. • Consumer packaged goods(CPG) companies are underestimating the e-com-merce channel’s growth potential, according to aDeloitte study. The report shows that companiesexpect 35 percent CPG sales growth in the next yearand 76 percent growth in three years, while con-sumers expect their online CPG purchases to in-crease by 67 percent in the next year and 158percent in three years. • Despite the growth in e-commerce, Americans still prefer to make mostholiday gift purchases in stores close to home,according to a recent national survey conducted forFamily Dollar. • Soft drink giants PepsiCo andCoca-Cola have both teamed with biotech compa-nies to find a way to make a tasty, low-sugar soda,reported Advertising Age. • SmartMetric Inc. re-cently unveiled itsOne Card Digital Wallet solu-



www.ncasef.com


A TRUSTED INSURANCE AGENT Trust is critical when choosing an insuranceagent. That is why dozens of 7-Eleven franchiseesturn to Tanya Sanders to secure coverage and ask forbusiness insurance advice. Over the last 10 years,Sanders has established strong relationships withfranchisees and franchise owner associations. Shebuilds trust and uses her experience to create specialinsurance packages for 7-Eleven stores. As an accountexecutive for the Lockton Companies, Tanya is the pri-mary insurance contact for franchise owners. You cancontact Tanya at 214-969-6742 or [email protected].

“One benefit of the 7-Eleven insurance program managed bythe Lockton Companies is access to discounted backgroundchecks. As part of the program, Lockton is teaming up withAllied Insurance to offer IntelliCorp’s platinum backgroundcheck package at a special rate of $12.95* per search.”

The Importance Of Background ChecksHire The Right Employees To Help Your Business SucceedLockton Companies


MORE FINE WINES IN 7-ELEVEN SEI has added four high-demand A-listers to its lineupat its top wine-sellingstores—"A" as in wines thathave scored 89-90 points inoenophile publications likeWine Spectator andWine En-thusiast. The ultra-premiumvarietals—La Crema Char-donnay, Louis MartiniCabernet Sauvignon, KimCrawford Sauvignon Blancand Wild Horse Pinot Noir—not only score high in quality,but also in value. The WildHorse is the best seller in thepinot noir varietal at a $19.99price point and most recently rated 89. Theother three are rated 90 points on a scale of100, and all have a suggested retail price ator below $19.99 at the participating 7-Eleven stores. A study by The Beverage InformationGroup shows that American wine con-sumption increased by 21 percent between2001 and 2011 and is now almost neck andneck with beer drinking. The growthshows no signs of stopping, with thegroup's 2013 Wine Handbook reportingthat the wine industry grew almost 2 per-cent in 2012 alone.

7-ELEVEN LICENSEE PLANSMORE CNG STATIONS A 7-Eleven licensee’s experiment withcompressed natural gas has been such a suc-cess that the company plans to offer the fuelat other Oklahoma City locations, reportedThe Oklahoman. Jim Brown, CEO of 7-Eleven Stores, which owns the 7-Eleven lo-cations in the Oklahoma City area, told the

newspaper he was not convincedabout the future of CNG at first. “Atthe time we did it, we weren't excited

about what we were seeing as far asconsumer demand,” Brown said.“I wouldn't have anticipated thatit would have been so well re-ceived here. But now that it has,we see an opportunity there, es-pecially given the way the prod-uct is priced in the market.” At88.9 cents per gasoline gallonequivalent, the 7-Eleven inMoore is one of the least expen-sive, publicly available CNG lo-cations in the country. Brownsaid he now thinks the demandfor CNG will continue to grow in

central Oklahoma.

BIG XBOX ONE GIVEAWAY While temperatures were dropping, thetraffic on www.slurpee.com was heating up asSlurpee fans entered to win the much-antici-pated Xbox One Entertainment System. SEIgave away 58 of the all-in-one enter-tainment systems—one eachday through January 2,2014. Customers whopurchased a MountainDew Game FuelSlurpee drink—thefeatured Slurpee fla-vor during the contestperiod—or any otherSlurpee flavor, were ableto enter their cup code toearn Slurpee Rewards pointsat www.slurpee.com and usethose points to enter the contest, up tofive times each day. Each entry required twoSlurpee Rewards points. In addition to the 58 Xbox One enter-tainment systems, more than 150 Instant

Win prizes were awarded each day. Prizesincluded Xbox 360 arcade games, one-month and 12-month Xbox Live Goldmemberships, Xbox Digital Promotionalgift cards and $200 Visa gift cards. XboxOne winners were drawn at midnight eachnight CST from November 6 to January 2.Instant Win prizes were awarded through-out the day.

GIFTS FOR THE MILLENNIALFROM TOYS TO TECH 7-Eleven stores' variety of gift optionsthis holiday season was a pleasant one. Toappeal to Gen Y or millennial-age (born be-

tween 1980 and 2000) shoppers, the selec-tion was heavy on pop culture, pro

sports, tech and toys, gadget-y stocking stuffers, video

games, DVDs and giftcards. Perhaps an evenbetter surprise was thecompetitive pricing 7-Eleven offered onmany of its hottest gift

items. Comparable tobig-box retailers and even

online retailers, 7-Eleven'sprices allowed customers to

shop easily without paying a premiumfor convenience. Millennials value convenience morethan their Baby Boomer parents, according


SEI teamed with loyalty platform

company Belly to launch "Give A Little & Do Great," a joint mealdonation program that ran fromNovember 22 to December 2 at participating Chicago 7-Eleven stores.




to "Trouble in Aisle 5," a study of groceryshopping patterns by Jefferies investmentbank and AlixPartners business advisoryfirm. This age group is more willing toshop a variety of retail outlets rather thanrelying on the traditional supermarkets.That includes convenience stores, where ahigher number of Gen Y shoppers pur-chase everyday essentials and fresh foodsthan boomers. Coming of age in the recentrecession, this up-and-coming purchase-power generation is also more price-sensi-tive than boomers. They expect value, butnot at the expense of quality.

MEAL DONATION PROGRAMLAUNCHED IN CHICAGO SEI teamed with loyalty platformcompany Belly to launch "Give A Little &Do Great," a joint program that ran fromNovember 22 to December 2 at participat-ing Chicago 7-Eleven stores. During theprogram, the two companies donated ameal to the Greater Chicago Food Depos-

itory each time aBelly memberredeemed the10-Point Re-ward for thiscause. Foundedin 1979, The Food Depository works with650 pantries, food kitchens, shelters, chil-dren and adult programs across thegreater Chicago-area's Cook County toaddress the root causes of hunger. By collaborating with the GreaterChicago Food Depository, Belly offered itsmembers an easy way to do good by do-nating their reward points to a charitableorganization, rather than redeeming themfor food items and other in-store goods,services and experiential rewards. Theprogram made it easy for anyone to par-ticipate. Every time a member accumu-lated 10 points (two visits) and redeemedthe "Give A Little" reward on the Bellytablet inside a 7-Eleven store, Belly andSEI donated a meal to the GreaterChicago Food Depository on that mem-ber's behalf.


tion, which stores oneor many cards’ infor-mation in a smart card protected by biomet-rics. User authentication for unlocking the wallet isperformed by simply swiping the finger on theswipe sensor. • Intellicheck Mobilisa has created asmartphone app called barZapp that checks theauthenticity of an ID by reading and verifyingthe information encoded in the bar codes on a dri-ver’s license or other form of ID. • For the fourthstraight month at least three in five consumers (61percent) say they are pessimistic about eco-nomic prospects, despite relatively low gasprices, according the latest monthly NACS Con-sumer Fuels Survey that examines how gas pricesaffect consumer sentiment. • In Nielsen’s C-Storechannel (roughly 70 percent of Monster Energy’sU.S. sales), Monster delivered +17.3 percentdollar sales growth over the 4-week periodthrough November 23, 2013. • Tennessee lawmak-ers recently announced an expansion of the state’sAnti-Smurfing Campaign, which aims to increasepublic awareness about the criminal enterpriseknown as “smurfing”—the practice of pur-chasing cold and allergy medicines contain-ing pseudoephedrine on behalf ofmethamphetamine criminals.n


www.ncasef.com


even as research about possible ill-effects from second-hand vapor smokeremains limited. Some local governments have taken similar steps on theirown, enacting rules for e-cigs that sometimes go beyond those in place atthe state level.

Connecticut May Add E-Cigs To Public Smoking Ban

Connecticut lawmakers are pushing legislation to extend the state’snon-smoking policy to e-cigarettes, making it illegal to use them in publicplaces, reported the New Haven Register. State legislators argue that theimpact of e-cigarettes on health is not yet known—as safety and effec-tiveness have not yet been studied—nor are the ingredients known.State Sen. Edward Meyer told the newspaper lawmakers are currentlyasking if the definition of smoking real cigarettes should be expanded to

the electronic devices. He added that he is currently drafting a bill ban-ning e-cigarettes from public places, which he expects would be passed inthe upcoming legislative session. The Connecticut Department of PublicHealth has not yet taken a position on the relatively new vaporizers.

NYC City Council Ponders E-Cig BanA New York City Council committee recently held a hearing on a pro-

posal to ban electronic cigarettes anywhere smoking of real cigarettes is pro-hibited—like restaurants, offices, parks and other public places, reportedCBS News New York. The ban is being considered because the effects of e-cigarettes on health remain unknown, the city’s health commissioner said. Ife-cigarettes are banned like regular cigarettes, the city Department ofHealth and Mental Hygiene said it would give businesses and restaurants ayear to put up signs indicating there is no smoking or vaping allowed.

Legislative Updatecontinued from page 74

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Hershey's Launches New LancasterBrand The Hershey Company recently an-nounced it is launching a new confec-tionery brand called Lancaster, whichfeatures a line of caramel soft crèmes thatwill roll out nationwide in January 2014.The surprisingly soft, rich and creamy Lan-caster Soft Crèmes provide a moderncaramel taste experience available inthree flavors—Caramel, Vanilla andCaramel, and Vanilla and Raspberry.Each flavor will be offered in 8 oz.bags that retail for $3.99 and 4 oz. bags that re-tail for $2.49. The introduction of the Lancaster brand marksa significant milestone for The Hershey Company,as it is the first time the company has launched anew brand that is not a brand extension or ac-quisition in the past 30 years. The new brand isrooted in Hershey's heritage and is inspired byMilton Hershey's original confection company,The Lancaster Caramel Company. Rollout of Lan-caster Soft Crèmes will be supported by a robustintegrated marketing campaign that will begin inthe first quarter of 2014.

Limited EditionSticky SweetsCigarillo

Swisher introduces its firstSwisher Sweets limited editioncigarillo just in time for the holi-days, Swisher Sweets StickySweets. The cigar is unmistak-ably Swisher Sweets with aunique flavor—sweet caramelfused with juicy peach—andan equally pleasant aroma.Sticky Sweets comes in a reseal-able 2-count pouch with the

“Sealed Fresh” guarantee.Additional limited flavors areexpected throughout 2014.

This flavor of Swisher Sweets Sticky Sweets is available only whilesupplies last. For more information or to place an order, contact yourSwisher representative at 1-800-874-9720.

Energems’ New Look Energems has released an updated look and packaging. The deli-cious energy supplement made with real milk chocolate can befound in new, sleek boxes with new updated graphics. A special en-ergy blend with B-12 vitamins and caffeine makes each 15-caloriegem a tasty alternative to energy shots and drinks. In addition to realmilk chocolate, Energems are made with peanut butter and natural

mint flavor, ensuring an authentic taste for even the most dis-criminating palate. Three Energems are equivalent to one cup of

OBERTO’S NEW PACKAGING & BRANDING

Oberto Brands recently unveiled updates to its popular Oh Boy!Oberto All Natural Jerky line, marking the largest brand overhaul inthe company's 95-year history. Spearheading the rebrand is a re-freshed logo—"Oh Boy!" is being removed from the moniker—along with new packaging that is targeted at active consumersand boasts Oberto's new mantra to "Eat Excellent. Be Excellent."The packaging—previously dominated by all redgloss wrapping—now features a clean whitematte bag emblazoned with a prominent stylized"O" with black and white sports photographywithin its borders, capturing all manners of activeendeavors—from running to rock climbing—thatappeal to the target consumer. Fueled by brands like Oberto, jerky has re-cently captured the snacking spotlight as a pro-tein-rich food option that keeps people goingand helps minds and bodies perform at theirbest. Since switching its core jerky line to anall-natural recipe made with simple, whole-some ingredients, Oberto's sales are up nearly50 percent. In fact, in March 2013, Oberto wasnamed the number-one tasting jerky by aleading consumer magazine. Oberto's popular jerky is available in2.5 oz. and 3.25 oz. bags and includes eight flavors: Original BeefJerky, Teriyaki Beef Jerky, Peppered Beef Jerky, Spicy Sweet BeefJerky, Hickory Beef Jerky, BBQ Pork Jerky, Teriyaki Turkey Jerky, andthe newly launched Bacon Jerky.



Lancaster Soft Crèmes, Hershey’sfirst entirely new brand in 30 years.

Since switching to an all-natural recipe,

Oberto's sales are upalmost 50 percent.

New Swisher SweetsSticky Sweets is availablefor a limited time only.

coffee and with three servings in eachbox, people can control when andhow much caffeine they want. Over 500,000 samples of En-ergems have been distributed throughmusic festivals, athletic competitions,conferences and social media initia-tives. The feedback has been overwhelm-ingly positive from moms, college students,business executives and other on-the-goconsumers who appreciate the tasty, low-calorie alternative that allows them to conveniently power up their daywhen needed.

New Smirnoff Ice Peach Bellini

Smirnoff Ice has introduced new Smirnoff IcePeach Bellini, a flavor inspired by the fastestgrowing wines and sparkling cocktails.

FMBs, including the new Peach, along withSmirnoff Ice Original and Screw-driver Sparkling 24-ounce flavors,appeal to women and multiculturalconsumers, who drive 60 percent of

Smirnoff Ice sales. The new Peachallows consumers to enjoy theirfavorite sparkling drink on evenmore occasions.

FMBs outperform in His-panic markets, and the His-panic community in the U.S. isprojected to grow 167 percentby 2050. FMBs penetrate 53percent of Hispanic households, twice the rate

of wine or spirits. FMBs are projected to have the secondhighest growth among Hispanic drinkers, and FMB dollar sales are up50 percent vs. two years ago in Hispanic markets. According to Nielsen

Scantrack, FMBs have shown an 18.8 percent dollar growthin the last three months. Order through your Diageodistributor or call Dave Castle at 714-414-2527.

Mars Bites 2 for$3 Through FebTo continue the momentum of theBite-Size segment, which has grown 80 percent since

2009, Mars is offering 7-Eleven franchisees 2 for $3pricing on King-Size items

regularly priced up to $1.89.The offer includes Snickers(SLIN 140439), Milky Way(SLIN 140548), Milky WayCaramel (SLIN 142931)and Three MusketeersBites (SLIN 142930) avail-able through McLane. TheBite-Size segment hasgrown faster than theChocolate Category over thelast five years, with high re-peat rates!

TGI FRIDAY’S BAKED SNACKS

SPICY DUO OFFER Inventure Foods has announced a special limited timeoffer that is sure to drive profitable incremental impulsesales: a 12-count Clip Strip Bundle that contains six eachof TGI Friday’s 2.5 oz. Extreme Heat Crunchy Fries and2.25 oz. Cheddar Cheese Jalapeno Poppers. Enjoy a $.60case allowance with this special deal. TGI Friday’s ExtremeHeat Crunchy Fries and Jalapeno Poppers Snacksadd substantial spice to the already successful lineof snacks inspired by the popular bar and casualdining restaurant menu. Going beyond mildly hot jalapenos and chipo-tles, Extreme Heat Crunchy Fries are exactly as thename implies, extremely spicy. The crunchy friesprovide the perfect treat for

the daring, fla-vor-seeking

snacker.Jalapeno PoppersSnack Sticks arebaked to perfec-tion, offering alight, crunchysnack option withthe savory, yetspicy flare foundin one of Amer-ica’s favorite ap-petizer items.



Energems has a sleek new look.

Get a $.60 case allowance when you order the new TGI Friday’s

12-count Clip Strip Bundle.

FMBs outperformwith women and inHispanic markets.

Anheuser Busch.......................7Aon Risk Services ..................38Blu Ecig..................................21Coca-Cola .......................Cover 2Dean Foods............................73Diageo Guinness USA ............63Dr Pepper Snapple Group ......15Duracell .................................35Ferrero .....................................9Good To Go.............................57Haribo....................................59Heineken ...............................10Hershey .................................25Hot 'N Spicy ...........................33

Insight Beverages..................29Just Born Inc. .........................17Kellogg's..................................6Kretek International ...............................................39,78,Cover 4Lockton..................................81Logic Ecig .........................44-45Mars Chocolate......................27Mars Ice Cream......................31Maruchan ..............................47McLane..................................77Modern Smoke......................82Mondelez ..............................13National Tobacco ...................50

Nestle Waters...........................8Perfetti Van Mele...................23Precise Nutrition....................42Shamrock ..............................24Snyder's .................................69Specialty Brands....................75Sunny-D ................................71Swedish Match ...................5,36Swisher International............48Unilever Good Humor/Breyers ...............................................3,4,40Whitewave Foods..................19Wrigley ..........................Cover 3Windsor .................................52

Chesapeake Bay FOAVendor Trade ShowVirginia Beach Convention CenterVirginia Beach, VirginiaApril 29, 2014Phone: 757-650-2929

7-Eleven FOAC Trade ShowOdeum Expo CenterVilla Park, IllinoisMay 1, 2014Phone: 847-971-9457

San Diego FOACharity Golf TournamentSalt Creek Golf ClubChula Vista, CaliforniaMay 8, 2014Phone: 619-713-2411

Southern California FOATrade ShowPasadena Convention CenterPasadena, CaliforniaMay 21, 2014Phone: 818-357-5985

Rocky Mountain FOACharity Golf TournamentCountry Club At Cheyenne MountainColorado Springs, ColoradoAugust 6, 2014Phone: 719-282-9141

Rocky Mountain FOATrade ShowHotel EleganteColorado Springs, ColoradoAugust 7, 2014Phone: 719-282-9141

7-Eleven FOACCharity Golf OutingSt Andrew's Golf and Country ClubWest Chicago, IllinoisAugust 13, 2014Phone: 847-971-9457

7-Eleven FOACHoliday Trade Show & PartyHoliday Inn North ShoreSkokie, IllinoisNovember 5, 2014Phone: 847-971-9457

foa events

LOGIC Secures #2 Spot In C-Store E-Cig Category LOGIC Technology, makers of premium electronic cigarettes, announced the results of the lat-est unit share report from Nielsen's C-Track Database and Wells Fargo Securities, LLC indicatingLOGIC has secured the number two spot for electronic cigarettes in conveniencestores nationwide. LOGIC has seen a steady increase in recent months and is nowthe top ranking independent electronic cigarette company. LOGIC now commands19.8 percent of the category, as one of three key players within the in-dustry. This news follows a recent report issued by the Goldman SachsGlobal Investment Research Division stating that the market appearsto be consolidating relatively quickly into three e-cig brands, includ-ing LOGIC, and that retailers have embraced the electronic cigarettecategory, seeing double-digit to triple-digit sales growth.

Setting The Record StraightThe second to last paragraph of ViceChairman Jivtesh Gill’s article about theDVR mediation in the September/Octo-ber issue of Avanti stated, "… the JusticeDepartment suspended mediation due toits investigation on the East Coast mat-ter." This is inaccurate—at no time wasthe Justice Department involved in theDVR mediation, and at no time did theJustice Department request that the Na-tional Coalition and SEI delay mediation.

Play The Name Game!Look carefully at each page in

this issue. Somewhere in this maga-zine a line is hidden that contains the words$Name Game Winner + person’s name +city$. If you find this line, and it contains yourname, call AVANTI’s Offices at 215 750-0178before the next magazine is published, andwin this issue’s total. NCASEF Members only.

Advertisers Index

San Diego FOA & FOA Of GreaterLA Trade ShowPechanga Resort and CasinoTemecula, CaliforniaJanuary 15, 2014Phones: 619-726-9016/619-713-2411

Central Florida FOAGolf Tournament & Trade ShowOrange County National, Panther LakesCourse & Rosen Plaza HotelFebruary 26-27, 2014Orlando, FloridaPhone: 407-683-2692Email: [email protected]

San Francisco/Monterey Bay FOAThe Guardian Trade ShowSan Francisco Airport Marriott WaterfrontBurlingame, CaliforniaMarch 1, 2014Phone: 510-754-1113/510-692-1492

Eastern Virginia FOATrade ShowVirginia Beach Convention CenterVirginia Beach, VirginiaMarch 17, 2014Phone: 757-506-5926Email: www.evafoa.com

Central Valley FOA/Northern California FOATrade ShowThunder Valley CasinoLincoln, CaliforniaMarch 21, 2014Phone: 209-939-0679

Baltimore FOATristate FOSE Trade ShowMartins WestBaltimore, MarylandMarch 26, 2014Phone: 262-275-3086

Delaware Valley FOAGreater Philadelphia Trade ShowSpringfield Country ClubSpringfield, PennsylvaniaApril 9, 2014Phone: 610-306-7119

Pacific Northwest FOAAnnual Trade Show(location to be announced)April 17, 2014Phone: 253-861-6737

Columbia Pacific FOATrade Show(location to be announced)April 18, 2014Phone: 503-984-1398

Texas FOACharity Golf TournamentCowboys Golf ClubGrapevine, TexasApril 22, 2014Phone: 972-896-3590

Texas FOATrade ShowIrving Convention CenterIrving, TexasApril 23, 2014Phone: 972-896-3590

Southern Nevada/Las Vegas FOATrade ShowCashman CenterLas Vegas, NevadaApril 24, 2014Phone: 702-249-3301

Phoenix FOAArizona 7-Eleven Golf ClassicWhirlwind Golf ClubChandler, ArizonaApril 25, 2014Phone: 602-703-0711

foa events NCASEFboardmeetings

National Coalition

Board of Directors MeetingMarriott City CenterDallas, TexasFebruary 19-21, 2014

National Coalition

Board of Directors MeetingWalt Disney World Dolphin HotelOrlando, FloridaJuly 10-11, 2014

National Coalition

2014 Convention & Trade ShowWalt Disney World Dolphin HotelOrlando, FloridaJuly 12-16, 2014


National Coalition

Affiliate MeetingMarriott City CenterDallas, TexasFebruary 17-18, 2014

november/december 2013 t h e v o fourth quarter ... -...

Documents