January 2016 Happy Birthday GHRA page 6 Creating Life-long Customers PAGE 10 Pain-Free Payroll PAGE 13 January Storefront Set-Up JANUARY Posters JANUARY Spanner Boards 20 ft. 15 ft. Mtn Dew 1-Liter Bottles Retail 2 for $2.00 Invoice Cost $11.06 Minute Maid 15.2oz Bottles Retail 2 for $3.00 Invoice Cost $22.56 Your spanner shipper now includes approved cooler signs Sunny D Core Power 16oz Bottles Retail 2 for $2.22 Invoice Cost $9.80 11.5oz Bottles Retail Buy 1 Get 1 FREE Invoice Cost $11.52 JANUARY STOREFRONT 2 Vol. 3 Issue 1 GHRA BOARD President’s Notes Dear GHRA Members, Zulfikarali Maknojia President Ahmed Hasora Senior Vice President Rafique N. Ali Negotiation - Chairman Vice President Sherali Haiderali Honorary Secretary Mahemood K. Momin Treasurer Lehjatali M. Momin Warehouse Chairman On behalf of our Board of Directors, CEO, staff and membership, I would like to wish you a very happy New Years, and a prosperous 2016! The economic outlook for next year is a positive one. It is likely that the overall global economy will be favorable, despite some destabilizing political and diplomatic factors. The forecast tells us that the industry trends we saw in 2015 will generally continue into 2016. It will also be a year where our country is tested to see whether or not it is capable of implementing its growth strategy in a consistent manner to ensure its economic recovery. Under these conditions, we want you to be aware that the economic tide may change this year. For the past few years and more, there has been an overabundance of money due to excess liquidity under a situation of ultra-low interest rates, and this has supported high growth in many areas. GHRA has benefited from this growth as members built new locations and tried new concepts without the burden of interest. However, it is also likely that interest rates will rise as the country begins to grow faster. We will carefully monitor this situation and we encourage you to do the same. Take a proactive approach to these changes, and do not let them effect you negatively. We want you to take these changes as an opportunity and allow them to lead you to new business. Shamsuddin Maredia Director Asif Davwa Director In order to achieve sustainable growth with limited resources, we must optimize our management resources; in other words, we must further improve our category and product portfolio. We need to continue to replace less efficient assets with more efficient and profitable ones, while raising the standards for existing categories and product lines. Rahim Maknojia Director Tajddin Momin Most importantly, commitment is key. Commit yourselves to excellence and to your organization’s initiatives. Committing is simply making sure you keep your promises and in doing so, we can overcome anything that comes our way in 2016. Director Mubarak Dhukka Director Zulfiqar Kurjee Director Nizarali Momin Director OFFICE 12790 South Kirkwood Rd., Stafford, TX 77477 Ph. 281.295.5300 Fax. 281.295.5399 www.ghraonline.com Vol. 3 Issue 1 GHRA’s opportunities are expanding. Our company is playing a large role in the economy of the southeast region with the establishment of our warehouse and distribution center. At the same time, we want to fulfill the missions and roles expected of our community, and contribute back to the development of the business architecture. Let us continue to strive as a team to achieve our goals for 2016 with lofty aspiration and a challenging spirit. We would like to wish you all and your families another healthy and successful year. Sincerely, Zulfikar Maknojia Vol. 3 Issue 1 3 In This Issue In Balance................................................................................5 Feature Story.........................................................................6 Food Service...........................................................................7 Technology..............................................................................9 Education.............................................................................10 Safety......................................................................................11 Human Resources.............................................................13 Industry News....................................................................14 Business Services Update..............................................15 Community..........................................................................16 Government Relations....................................................17 Warehouse Update...........................................................18 New Member Introductions.........................................19 Announcements.................................................................20 Promotions In Action......................................................21 4 2016 Cooler Reset Form................................................22 Vol. 3 Issue 1 In Balance H appy New Year! And what a year 2016 will be for all of us here at GHRA! In the coming months, we will be bringing many important projects to our members. As we get our Warehouse & Mike Thompson Distribution Center Chief Executive Officer up and running in the first quarter we will continue to focus our efforts on food service, store training, safety programs and more. worked best in 2015 and expand on, or better develop, these ideas. Just as important though, we should also look at what strategies did not work and find ways to improve upon, or remove, those things from our businesses. With the new year, there will also be many challenges. Volatility in the oil industry has a large impact on fuel prices, which in turn influences how consumers spend their money in our stores. Our local economy is heavily influenced by the health of the oil industry, and although Houston has benefited recently from a strong oil GHRA continues to look for more market, we need to keep our stores opportunities to help Members build their business volume while delivering prepared for an uncertain future. Additionally, our local governments the tools necessary to operate c-stores safely and efficiently. January are going through changes in leadership. We will continue to work is the best time to take a fresh look with local and regional government at your store, and reflect on what leaders, and law enforcement officials, to find ways to increase store safety. Lastly, I want to encourage every GHRA Member to keep in the spirit of working together. Collectively we have accomplished many things and we have much, much more left to do. Working together and supporting each other is the most important aspect of our recent successes. Supporting GHRA, and its objectives, makes all of our businesses strong and competitive. Stay involved and let us know what we can do to improve our services for our Members. I wish everyone the best for 2016 and pray this is the most prosperous year for your business and your family. The future is bright for GHRA! The following is a paid advertisement THANK YOU FOR YOUR BUSINESS The PepsiCo Company and Frito lay wish to thank the members of GHRA for a terrific 2015 & we look forward to a strong partnership in 2016! Below is the outlines for our 2016 program. Frito-Lay representatives will be in your store in January to assist you with this programming, Thank you for your business. Store >$300 WSA All Stores FEM or Minimax w/ Side Baskets • 1st Position • Closest to the Register 2nd FEM or Minimax w/ Side Baskets • High Traffic Location Gondola • 8’ – 16’ Across from Cold Vault • 1st Position 3 in 1 Rack With Monthly Shipper Program • Primary Lobby Position • Monthly PPW and CF shipper to hang on sides of rack Vol. 3 Issue 1 Optional Solutions Available: Magnetic Gondola Riser Under The Counter Rack 5 Feature HAPPY BIRTHDAY GHRA! "Happy birthday GHRA! Here’s to 17 years of fantastic growth and many great accomplishments! Birthdays happen every year. Every person and organization has Bill Pitocco GHRA Vice President them whether they’re celebrated or not. At GHRA we aren’t just experiencing the inevitable passage of time, we are celebrating something much more, something bigger than all of us as individuals! This organization is made up of experienced and dedicated store owners and managers. Owners and managers who work very hard every day and who have had a vision for GHRA’s future since its inception. When you think about it, that vision is a relatively young one; 17 years isn’t a very long time in the grand 6 scheme of things. Our vision is a young and aggressive one with much hope and potential leading the charge. That hope is fueled by the character of this great company. A character that displays self-control, quick and unquestioning obedience to duty, and zest in difficult and arduous undertakings. There is power in this character because it is a formula that is tried and true; it’s a formula we attribute to our current leadership and the leadership before them. If we simply work hard, good things will come to us. And good things have come to us here at GHRA. Just like the original vision for GHRA 17 years ago, we will see the GHRA Warehouse and Distribution Center grow and prosper throughout the coming years. Do you remember the passion? Do you remember that hope for what GHRA would become? The only thing larger than the potential for our warehouse is the hope we have in it; that same hope we had 17 years ago. We know that hope is the engine that drives us all to action, and this organization is continually “In Action.” Whether it is working at a store, at a function, at GHRA or volunteering, GHRA members are moving forward knowing that our work defines us and will leave its legacy on the next generation. That hope is fueling a future that we know will be secure. What started as a few convenience store owners coming together is now an organization that is over 100 employees strong. What began as a million-dollar business could soon become a billiondollar business. As we celebrate our 17th year, remember that we have a strong future, a long future, a future that is built on a very small concept called cooperation. We’ve mastered it, and in doing so have formed the most successful cooperative in the U.S with many great years ahead… Vol. 3 Issue 1 Food Service Breakfast Brawl By Jamie Hartford Y our mother was right, breakfast is the most important meal of the day —though not just because it boosts metabolism. It can also build sales. Since 2001, the away-from-home breakfast market has swelled from $57.5 billion to more than $90 billion, according to market research firm Technomic. But in the battle for breakfast dollars, convenience stores are coming up short. Consumers are frequenting quick-service restaurants more than two to one over convenience stores for their weekday morning meals, according to a Technomic study released in January. Lump in fast-casual restaurants, donut, coffee, bagel and smoothie shops, and convenience stores are getting creamed 20 to three at breakfast time. Over all dayparts, foodservice traffic at convenience stores has fared better than in restaurants, which have suffered seven consecutive quarters of decline, noted Bonnie Riggs, restaurant industry analyst with market researcher the NPD Group. But convenience store foodservice traffic growth has been driven largely by lunch and snack occasions. "The morning meal is still weak for convenience stores," Riggs said. "There’s a definite opportunity there, but they’ve got their work cut out for them against the burger guys who have a lot more marketing clout." Declines in restaurant breakfast traffic and sales during the recession have also heated up competition. Restaurants introduced 460 new breakfast Vol. 3 Issue 1 offerings in 2009 —more than in either of the two prior years —according to market intelligence firm Mintel. With most consumers indicating that they don’t expect to buy breakfast more often this year, convenience store operators looking for a bigger slice of the breakfast pie are going to have to steal share, predicts Technomic’s Darren Tristano. "They’re going to have to be competitive and find a way to stand out and drive their share of traffic." To stay in the fight, convenience stores must improve their offerings and perhaps lift a page or two from the QSR breakfast battle plan. Quality Coffee Starbucks revolutionized coffee culture in the United States by bringing bolder brews and fancy drinks to nearly every street corner. McDonald’s changed the game again by doing it cheaper. The result: McCafe©, where even costconscious consumers are now coffee connoisseurs. "Breakfast is the only daypart where beverage choice drives a lot of the purchase decision on where to get the food," said Dennis Lombardi, executive vice president of foodservice strategies for retail and foodservice consultancy WD Partners, which counts Wawa and Circle K among its clients. "You have to have an outstanding coffee program; if not, you’re nothing more than second class." QSRs like Burger King and Subway have already upgraded their drip-coffee brews to compete with McDonald’s, and some convenience chains have followed suit. To keep their coffee programs competitive, other convenience stores would be wise to do the same, said Andrew Hetzel, a Hawaii-based coffee industry consultant. "Find a good regional or national roaster that has a better-rated product than the guys who are also selling you your toiletries," Hetzel said. "Your cost per cup will only increase a few pennies, potentially increasing your selling price, and you’ll be giving customers a cup of coffee they’ll come back for." Counteract the Drive-Thru One offering QSRs have that most convenience stores do not is the drivethru. Instead of ordering from the comfort of their cars, convenience store customers have to park, get out and enter the store to make a purchase. The entire act can be inconvenient. Convenience stores would be wise to entice customers who are filling up at 7 Food Service the pump in the morning to come in and make a purchase. For starters, ensure a high level of customer service and pleasant in-store displays. Offering opportunities for customization is another attraction. "You can offer different creams or flavor shots that they can add to their coffee," Lombardi said. "Or in addition to the traditional egg, protein, slice of cheese sandwich, allow them to throw something else on there, like Tabasco sauce or mushrooms or Swiss cheese. The option for the customer to tailor that product creates an advantage." Retailers such as Wawa, Rutter’s and Sheetz —all based in Pennsylvania — have touch-screen ordering kiosks that enable customization, giving customers the option to choose their toppings and sides with their breakfast orders. And while convenience stores don’t have drive-thrus, they do have the upper hand when it comes to product variety. For instance, QSR breakfast customers typically have to choose among the house coffee, milk and orange juice, or drink a soda with their breakfast. Convenience stores can offer a variety of coffee drinks —both brewed and bottled —along with teas, juices and cooler doors full of additional beverage options. What convenience stores lack in the speed of a drive-thru, they can make up for in selection. Bundle of Tastiness QSRs pioneered the combo meal, bundling food and drink items for less than it costs to purchase each separately, but they’re not the only ones who can package up a deal. Sara Lee Foodservice provides promotional materials to help convenience stores that serve its Jimmy Dean break-fast sandwiches bundle 8 the product with a coffee in the morning daypart. Research shows such deals can increase check averages by up to 10 percent and raise basket size by more than 15 percent, according to the company. Sara Lee Foodservice provides promotional materials to help convenience stores that serve its Jimmy Dean break-fast sandwiches bundle the product with a coffee in the morning daypart. Research shows such deals can increase check averages by up to 10 percent and raise basket size by more than 15 percent, according to the company. The practice can drive new purchasing behaviors, says Catherine Porter, Sara Lee’s senior customer marketing manager for convenience stores. For instance, pairing the company’s premium sausage, egg and cheese biscuit with a coffee can encourage consumers to trade up from the cheaper sausage biscuit. Bundling can also get consumers to purchase high-margin items, such as potato sides, that might be considered optional, says Rafi Mohammed, author of the pricing strategy book, The 1% Windfall. Rutter’s uses its touch screen ordering kiosks to suggest a bundle with hash browns and a coffee when a customer orders a breakfast sandwich. The upsell seems to work, as Weiner says nearly half of all breakfasts sold are combo meals. To use bundling successfully, Porter suggests pairing items that are a natural (e.g., coffee and a pastry) and change deals frequently so customers don’t get too attached. Can’t Beat 'Em? Join 'Em Convenience store operators intimidated by the legwork required to build a breakfast program from scratch, or whose sales aren’t up to par, can consider partnering with rather than competing against QSRs. Partnering with a nationally recognized brand can lend credibility to a convenience store’s foodservice program, says Shultz Hartgrove, senior vice president of convenience development for sandwich chain Quiznos, which in March debuted a national breakfast program to court convenience stores. "It gives [customers] that comfort in the c-store operator," Hartgrove said. "It’s perceived to be cleaner, safer and a better value because the consumer doesn’t have to make an extra stop." Hartgrove says when convenience store operators open a Quiznos franchise on site in-store sales can improve, too. "People are clearly coming in and buying other stuff," he said. But Steve Rosen, chairman and CEO of franchise consultancy FranNet, says partnering with a QSR doesn’t guarantee killer breakfast sales. Because so many breakfast offerings are similar across the chains, it’s important to choose a quick-service partner that has made a name for itself in the daypart. There are costs —including equipment, franchise fees and ad contributions —to consider, and the franchisor likely won’t grant exclusivity rights. "You might find yourself spending a couple million only to find out they’re building another store right across the street," Rosen said. Before signing on, operators should do their homework. "It comes down to how much that brand is worth," Rosen said. "Ask yourself, 'Will it bring more people into the store? What am I adding to the menu that I couldn’t do for myself? Am I going to be getting enough to justify what I have to give up?’" Jamie Hartford is a freelance writer based in Hood River, Oregon. She specializes in covering the business of food. ■ Vol. 3 Issue 1 Technology Opportunities and Risks on the New Frontier of Mobile Commerce Retailers across channels putting new emphasis on mobile projects, study says By Angel Abcede BOSTON -- As the need to connect with customers through mobile devices grows, retailers have begun to prioritize new and upgraded mobile apps and websites as a critical step, according to a recent study. The 2015 BRP Special Report: Mobile Commerce—The Future of Retail reveals that mobile commerce has become a valuable revenue stream for retailers; however, retailers need to address security risks and privacy concerns as they prepare for the anticipated shift of fraud from stores to e-commerce and mobile-commerce sites. “The mobile device is the cash register of the future, the sales associate of the future and the wallet of the future– or rather the now,” said Ken Morris, principal, Boston Retail Partners (BRP), Boston. “The opportunities for mobile to influence retail sales—via direct sales through a mobile website or app or through in-store possibilities to influence sales—clearly represent the new frontier transforming retailers’ operations.” Like their counterparts in other channels, convenience-store retailers should also consider their mobile strategies, but not at the expense of existing infrastructure, according to Marty Whitmore, vice president of BRP. Whitmore told CSP Daily News that convenience stores want to pull customers into the store to buy highmargin items and can use display screens Vol. 3 Issue 1 in their pumps to do just that. “In effect, the gas pumps are the mobile extension for c-stores and present a unique opportunity to promote special offers to consumers while they are pumping gas that will, hopefully, inspire them to enter the store and shop,” Whitmore said. “Some c-stores are now offering lower cost per gallon of gas based upon an in-store purchase." According to the BRP report, new or upgraded mobile apps and websites are top commerce priorities for surveyed retailers. Drawing from the firm’s 2015 E-Commerce Benchmark Survey, officials said mobile devices are creating many potential opportunities and risks for retailers to consider: Mobile websites, apps. While a mobile- responsive website is a requirement for all retailers with e-commerce, a well-designed mobile app can elevate the shopping experience and increase customer loyalty and sales. In-store possibilities. Beyond line busting, there are many other mobile opportunities for retailers to enhance the customer experience and drive incremental sales, such as customer identification, geolocation, guided selling, customer Wi-Fi and crosschannel transactions. Security risks. History has shown that when EMV (Europay, MasterCard Visa) is implemented in a country, store fraud is reduced and online fraud rises dramatically. Now that many retailers have implemented EMV, the focus should be on locking down security for e-commerce and m-commerce. Privacy concerns. Retailers are concerned over how best to protect their customers’ privacy while still gathering location, preference and purchase data. Integration challenges. With the addition of mobile channels, the integration, dissemination and consolidation of all pertinent data is compounded, making it more challenging for retailers to provide customers a seamless experience with the brand. A shift from silos to a holistic paradigm must occur as retailers upgrade their mobile capabilities. ■ 9 Education Study: Kid-Friendly Products Can Hook Long-Term Customers Early Children under age 9 are particularly influential. Published in CSNews, December 2, 2015 ROCKVILLE, Md. — The way to develop long-term customers is to hook them early in life. Children under the age of 9 are a particularly influential demographic for food and beverage marketers, as lifelong dietary habits are established during this time period and brand loyalty begins, according to a new report by market researcher Packaged Facts. Today’s kids are more marketing savvy and make more nutritionally conscious choices than any prior generation, and they have input on the foods and beverages their parents buy for them, the report noted. According to Packaged Facts, kidfriendly food is qualified as such when it has a taste kids love, nutrition kids need or entertainment kids seek. Taste alone, though, is not sufficient to qualify a product as being for kids. With its research based on seven food and beverage categories in which marketers have a strong tendency to target kids — dairy products, snacks, frozen food, beverages, cereal, shelfstable meals and produce — Packaged Facts projects sales for the $25-billion kids’ food and beverage market will grow to almost $30 billion by 2018. Growth will be driven by continued economic recovery, strong new product development, and increased demand for health and wellness products suitable for growing kids. 10 Packaged Facts' research also found that: • Marketing strategies must go beyond simple kid-appeal and focus on gaining parent approval. Although targeting the child demographic is largely accomplished through formulation, packaging and marketing, kids are the end user and not necessarily the decision maker when it comes to product purchase. • Obtaining parent approval is most often achieved through healthy brand positioning and socially responsible efforts. Brands that have a strong alignment with health are in a good position to succeed in appealing to the parent demographic. • Kids’ food is more about marketing claims such as natural, organic, gluten- free and no preservatives/additives, and less about diet monikers like fat, calories and sodium. • Transforming “healthy” offerings into fun and interactive products creates more appeal among younger demographics while still catering to parents’ desires for good nutrition. • Many marketers find ways to associate themselves with health, even if their products may not have a great nutritional profile. Although the product itself may deter parents away, by promoting child exercise and health/ wellness programs, the marketer may reflect positively on the product by instilling ideas of a balanced lifestyle while providing kids with the products they want. ■ Vol. 3 Issue 1 Safety Attorney Generals Calling for Adoption of More Secure Chip and Pin Technology Published in CSP Daily News HARTFORD, Conn. -- Eight state attorney generals joined Connecticut Attorney General George Jepsen in urging leadership of the nation’s largest credit-card issuers to speed up implementation of chip-and-PIN (personal identification number) technology, which is widely considered a more secure means of processing credit-card transactions than traditional magneticstripe payment cards and the Europay MasterCard and Visa (EMV) chip chipand-signature card process they are now rolling out. In a letter, the AGs asked leaders at companies including MasterCard, Visa, Discover Financial Services, Bank of America, Capital One, Citigroup, American Express and JP Morgan Chase--who have collectively begun the nationwide transition to a chip-andsignature card--to move to full chip-andPIN technology as soon as possible. The AGs said that doing so would be in the best interest of consumers, who are now routinely impacted by breaches involving credit and debit cards, and of local businesses, which are at risk of increased financial risks as well as harm to their reputations and loss of consumer trust if they experience a breach. “Over the last few years, breaches at major retailers that involved credit and debit card information have really shown a giant spotlight at the inherent weakness and vulnerability of magnetic-stripe cards even when the cards are lost or stolen,” said Jepsen. “We know, based on experiences in other countries, that chip and PIN cards offer greater security Vol. 3 Issue 1 to consumers--security that I believe far outweighs any initial burden or confusion that always comes when we need to get used to a new way of doing things, like using a credit card. Consumers in Connecticut and across the country deserve access to the absolute best that the industry has to offer. Right now, that is chip and PIN, and I believe it’s my responsibility to advocate on their behalf for it.” The AGs said that while the ongoing implementation of chip-enabled cards in the United States is “imperative in order to provide stronger payment security and assurance to consumers,” most chip cards currently being issued in the country rely on a signature, rather than a PIN, as the secondary form of verification. “There can be no doubt that this is a less-secure standard, since signatures can easily be forged or copied or even ignored at the point of sale,” the AGs wrote. “In order to better protect consumers, the chip-enabled cards issued in this country must be reinforced with the requirement that consumers enter a PIN to verify the transaction. … Absent this additional protection, your customers and our citizens will be more vulnerable to damaging data breaches. This is something we cannot accept, and nor should you.” “I am not calling for chip and PIN or any other particular technology to be codified in federal or state law as a legal mandate on card issuers,” Jepsen said. “Rather, I am urging credit-card issuers, as good corporate citizens, to voluntarily expedite the implementation of a technology that exists now and offers substantial security benefits and to continue to adapt and improve security as quickly as possible as newer and even better technology arises in the future. No technology will prevent all credit card fraud, but chip and PIN promises to substantially curtail lost and stolen card fraud and the disruptions it causes to consumers and businesses. I 11 Safety The following is a paid advertisement recognize that issuers should consider and minimize disruptions to consumers and retailers as they implement new technology to improve security, but I believe they can and should do more to expedite implementation of chip-and-PIN technology.” In addition to Connecticut, AGs from Illinois, Maine, Massachusetts, New York, Rhode Island, Vermont, Washington and the District of Columbia joined in signing the letter. “This is further proof that top law enforcement officials and security experts agree that continued reliance on an illegible scrawl isn’t good enough to protect American consumers when the technology of a secret, secure PIN is readily available,” said Mallory Duncan, senior vice president and general counsel of the National Retail Federation (NRF). “Banks and credit-card companies should heed the advice being given them and immediately implement chip-and-PIN. That’s the standard used around the world, and U.S. consumers deserve nothing less.” The U.S. Federal Bureau of Investigation (FBI) has issued a warning to law enforcement, merchants and consumers that credit cards with the new chip can still be the target of fraud. When using the new cards at a point-of-sale (POS) terminal, consumers should use the PIN instead of a signature to verify the transaction. ■ 12 GOURMET 100% ARABICA COFFEE + DELICIOUS CREAMY CAPPUCCINO Vol. 3 Issue 1 Human Resources Pain-free Payroll By CSD Staff D irect deposit isn't an option for unbanked employees, meaning they're left paying lofty fees at checkcashing facilities to gain access to their hard earned money. And retailers, who are steadily trying to turn their employees to electronic payment options, are left creating paper checks for a large portion of their labor force. Today more and more businesses are turning to reloadable payroll cards to reduce operating costs and provide employees greater flexibility in how they receive their pay. Denny's, a large family dining chain in the U.S., is one of the thousands of companies that have turned to Visa-branded payroll cards. It considers "the convenience factor" one of the best reasons for jumping on board. "We have 27,000 company employees nationwide, with 30% of them using direct deposit," says Debbie Atkins, director of public relations for the Spartanburg, SC based company. "We introduced the payroll card as an additional option to direct deposit, and today we have 3,100 employees participating in the program. [Employees] no longer have to stop by the restaurant for a paycheck, and our restaurant managers can spend more time focusing on customers rather than turnover. Interested companies would forge an agreement with an issuing bank. The bank provides the employers with enrollment materials to be distributed by their human resources department, which explains the benefits of the payroll card. The employee then signs up for the card, providing their name, address and distributing paychecks." Social Security number to the employer From an employer standpoint, studies to give to the issuing bank. This triggers indicate it costs a company $1.50 to issue the creation of a Visa payroll card in the a paper check, not including inefficiencies employee's name that is mailed to his/ like processing and distributing in a her home. The employee then activates timely fashion. More than 4 million the card, and has his/her pay directly payroll checks are lost or stolen every deposited into an account at each year, according to the American Payroll payday. There's nothing different for Association. Generating replacement employers than if they were signing up for checks and checks for exception pay (i.e. a direct deposit account. holiday pay, bonuses and overtime) can While the payroll card is still a relatively cost employers an average of $12 per new concept and there are a number check. Visa payroll cards reduce the time of options popping up in the market, needed to process payroll, increasing Denny's found an added benefit with its administrative efficiency. Employers can Visa-branded program (usa.visa.com). help reduce payroll costs by reducing "Our employees were more aware of lost or stolen check replacements, bank Visa than some of the other cards on the processing and handling fees, check market," says Atkins. "We chose the Visa fraud, check printing costs and check product because of brand awareness and reconciliation costs. And their ease of its strong marketing program. It made it setup and processing make payroll cards much simpler approaching the employees especially attractive in industries with high about it and explaining it to them." ■ COMING UP: FEBRAUARY PROMOTIONS Spanner Board: Dr. Pepper 20oz bottles Poster #1: Poster #2: Poster #3: Dasani 1-Liter Snapple 16oz Monster 16oz Vol. 3 Issue 1 13 Industry News Three Reasons Chocolate Sales Are Rising in C-Stores 81% of Americans are eating chocolate, and that number is growing By CSD Staff ROCKVILLE, Md. -- The U.S. chocolate candy market is bullish. With 81% of American consumers eating chocolate, sales of chocolate candy in the United States are expected to exceed $26 billion by 2018, a first for the industry, said Convenience Store Products online, citing a Packaged Facts report. In 2015, sales will hit $22 billion. That leaves roughly $4 billion for the taking, of which convenience stores should expect a piece. Given the strong pace of innovation and an influx of creative new suppliers, stores should see a steady flow of new products to engage their customers. Here are just three factors behind chocolate’s sweet success, according to Rockville, Md.-based Packaged Facts’ report, Chocolate Candy in the U.S., 10th Edition: The market has continued growing despite the volatile economic climate, proving customer devotion. The sentiment around chocolate is that it’s an accessible luxury and allows customers to trade up to more premium products at minimal expense. Research supports cocoa as a superfood with multidimensional nutritional benefits. Consumers perceive that chocolate is a guilt-free indulgence, which will ultimately drive more consumption. ■ The following is a paid advertisement 14 Vol. 3 Issue 1 Business Services Update G reetings and Happy New Year to our valued members. As we look out at the coming year and reflect on the past, many of us are thinking about our businesses and personal Jeff Thompson goals. Maybe you Research/Development and had some things Business Services Manager you wanted to accomplish this year that you weren’t able to accomplish for whatever reason. Here at GHRA, we’ve been focused on our Warehouse which is now just weeks away from completion. There was a time when the GHRA Warehouse and Distribution Center was a dream – simply a sketch on paper. Our goals are like that. They start off as ideas, and then we take action. At some point the results of those actions begin to bear fruit, and before long, our goals have been realized. In the Business Services arena, we continue to evaluate our supplier relationships and look for opportunities to make improvements in every category in the coming new year. We continuously watch the Credit Card industry for opportunities to improve the retailer’s position while sifting through the distractions from the real threats to our data security. I think everyone should have at least one big goal for each year. A goal that is perhaps beyond reach, or a bit unrealistic. I have both business and personal goals this year. What are yours? Maybe it’s time to remodel your store? Perhaps it’s time to add financial services? Or is it time to upgrade your store security – new cameras, lighting, or armored car pick-ups for your daily deposits? Whatever your goal is, know this: at GHRA, the work we do is about adding value and profitability to your stores. We work best when we know what your goals are. Stay in communication with us and continue to let us know about what your needs are. Many of you have called and given me your feedback about what you want and need in the realm of credit card processing. Through your Board of Directors, I have a clear idea of what our goals are once the warehouse opens. Remember that even your biggest, most “blue sky” goals are possible if you lean on this strong community and our strong organization. There is an African proverb that speaks to this: “If you want to go fast, go alone; if you want to go far, go together.” There’s no limit to where we can go, if we go together. Let’s make 2016 an amazing year for all of us. ■ The following is a paid advertisement We take pride in offering our GHRA customers a great selection of products to meet your market needs. Please call us today (323) 786-7865 (this is a local call) Vol. 3 Issue 1 15 Community Art exhibit review: Doors Without Keys The Aga Khan Museum’s latest exhibit focuses on homey architecture from multiple countries By Reut Cohen S tepping inside the Aga Khan museum has an immediately calming effect. The ceilings are high, the walls are muted shades of white and grey, and the subtle hymn of a muezzin plays over the loudspeaker. Abbas Kiarostami’s Doors Without Keys has just opened to the public, and as the first exhibition by a solo artist at the museum, it certainly sets a high bar. Meticulously curated, the multidimensional exhibit combines its visuals with lighting and sound to create a fully immersive experience. To create this installation, Kiarostami took photographs of abandoned doors in his home country, Iran, as well as France, Italy, and Morocco. This past August, Kiarostami flew to Toronto to supervise the painstaking process of printing each photograph on life-size canvasses. Meanwhile at the museum, over 800 hours of labor were put into creating the installation’s structure. The walls that were being constructed needed to be freestanding, but weighty enough to hold the artwork on both sides. Now, the exhibit has been arranged into a labyrinth-like formation, compelling the viewer to seek out the doors for themselves. Each door is different. They are made of different materials, and are shown in different seasons. Some doors are locked; some doors are not. It’s impossible to identify which country each door belongs to, save for stickers with Farsi and Arabic slogans on a few. What each has in common, however, 16 Door 3 by Abbas Kiarostami. Courtesy Aga Khan Museum. is that it is abandoned; that seems to be the point. The overdubbed soundtrack of indistinct conversations and children playing force us to imagine a life behind each one. Who lived there? Where did they go? The exhibit’s approach is far more visceral than trying to extract meaning from an abstract painting hung on a white wall. I find myself filling in the gaps, imagining the world that surrounds each door. Other walls are decorated with snippets from Kiarostami’s poetry. The poems exude themes of melancholy, solitude, and exclusion. “The bell is broken, please knock at the door,” one reads. Lines like these appear to be the most overt messages of the exhibit. They seem to demand action and engagement from the reader. Interspersed in the maze of doors are a number of hammock-like daybeds on loan from the Lahore Tikka House, a halal restaurant in the east end of the city. When I try to perch on one to take notes, I am forced to lie back. There’s no way to sit here distractedly; every aspect of the exhibit is crafted to ensure viewer participation. While I lie back, I read a transcript of Kiarostami’s interview with journalist Nazzy Beglari conducted in August. In it, he explains how he wanted to create “a neighbourhood” with this exhibit. He has done just that. I visited the Aga Khan museum hoping to gain some insight into Iran, the country from which my grandparents fled, and that I may never see. When asked why he always returns to Iran after long periods away, Kiarostami says, “I appreciate myself inside Iran.” Through his latest exhibit, this statement rings true. Doors Without Keys is showing at the Aga Khan museum until March 27, 2016. Admission to the museum is free on Wednesdays from 4:00 – 8:00 pm. ■ Vol. 3 Issue 1 Government Relations Government Relations: News Update By Steve Koebele – Attorney & Government Relations Counsel Austin, Texas – Soon a new product will likely be available for sale in Texas: powdered alcohol. An alcoholic mixed drink is produced when powdered alcohol is mixed with water or other drinkable liquid, such as a cosmopolitan, daiquiri, or margarita. On the federal level, in March 2015, the United States Alcohol and Tobacco Tax and Trade Bureau approved notice labels for a product called “Palcohol” that, when added to water, produces an alcoholic beverage. This action made sales of Palcohol legal in the United States, unless otherwise prohibited. That is where various laws by individual states become relevant. During the last two years, a fast trend has developed by states to ban powdered alcohol and prohibit its sales before, or as, the market develops. As of today, 27 states have enacted laws that ban powdered alcohol, while three other states regulate Palcohol like they would any other product containing alcohol. Texas has yet to move with this trend. Approximately 12 months ago, as state lawmakers convened for their regular session at the Texas Capitol in Austin, legislation was filed that would have stopped any manufacturing, importing, selling or possessing of powdered alcohol in Texas. Supporters of the bill (HB 1018) included the Texas Package Stores Association, the Wholesale Beer Distributors of Texas, and Total Wine and More. Ultimately, however, the author of the legislation decided not to proceed with moving his bill into law. Those who support the legal sale of powdered alcohol tout the ease of use and convenience of carrying the product, say, during a hike in the forest and later mixing it with water from a creek or brook. On the other hand, opponents of powdered alcohol say that children may wrongly obtain the product, individuals may eat the product, or consumers will mix the powdered alcohol with other alcohol to create even more potent drinks. At least one company, the Galveston-based Lt. Blender’s Cocktails in a Bag, is working to obtain the appropriate state and federal license approvals to bring its proposed powdered alcohol products for sale in Texas. After experience in the Texas market in 2016, stakeholders can advocate their position and the topic can be revisited by the legislature during its next scheduled regular session that begins about 12 months from now, in January 2017, back in the Texas Capitol. ■ The following is a paid advertisement Please support the following Blue Bunny Distributors Outside Houston Pete Dimas Enterprises LLC. 281-227-0033 Vol. 3 Issue 1 For Service Call Inside Houston Tastee Kreme Ice Cream 713-290-0123 17 Warehouse Updates Five Common-Sense Rules for Inventory Management As you all know, managing inventory in your stores is a critical part of your daily success. Our Warehouse Board of Directors, and office staff, have spent many hours planning for every aspect Nick Gibbon of our Distribution GHRA Warehouse Manager Center’s inventory. Recently I read an article on inventory management, and the 5 common-sense rules to ensure we are using the best industry techniques and practices. 1. If you don’t know where you are going, no road will take you there. To manage inventory proactively, you must know projected inventory levels for the future. Our team has spent many hours reviewing our stores’ product assortment, and selling velocities, to project the inventory levels needed to fill for our opening orders. 18 We need to calculate appropriate safety stock levels for all products based on forecast error, supply variability, restock lead times, quantity increments, and a number of other less tangible variables. The ability to take these factors into account when planning your target inventories is critical to effective inventory management. 2. Buy what you can sell. Inventory is not an independent variable - it is the direct result of supply and demand. The less accurate the forecast, the more inventories we will have on hand which is not "working" capital, but "non-working" capital. This means it is costing you money but not contributing to your bottom line. Careful attention is necessary to improving the forecast and to ensuring that the right inventory is on-hand, and in the right place at the right time. 3. If you can’t sell it, stop buying it. If demand for your product does not materialize, you need to identify that gap quickly to avoid a buildup of non-moving inventory. Numerous mechanisms can be put in place to identify such trends. We will have an effective standard operating process at the warehouse that includes the ability to identify these deviations and allow for re-planning. 4. Safety stock is not a paperweight. Our leaders have been asking the question, "What level of inventory should we never fall below?" Our answer is zero. Safety stocks are only useful if they are used. The whole point of safety stock is to protect against expected variations in demand and supply. If we never use your safety stock, we have too much. 5. You can’t improve what you can’t measure. Metrics are essential to a wellrun supply chain. Metrics for their own sake, however, are worthless. The purpose of a metric is to drive change when the variable you are measuring trends in the wrong direction. At GHRA we will have the best metrics in place to ensure we are providing a world class service at the lowest possible operating cost. ■ Vol. 3 Issue 1 New Member Introductions Welcome Members On behalf of the board of directors and staff at GHRA, please welcome our newest members as of January 2016: Fuel Depot #36 • Houston, TX Ed's Country Store • Van Vleck, TX 24 Seven #9 • Houston, TX V & D Food Store • Texas City, TX Wheelock Express • Wheelock, TX L & J Market • South Houston, TX First Stop Food Store • Houston, TX 2016 GHRA Annual Membership Renewal The 2016 GHRA Annual Membership Renewal deadline has passed. It is available on the GHRA Members Portal. Please complete the online application and submit all required documents. Only Authorized Representatives are able to renew each store membership and access stores under their log in. Oasis Tidwell • Houston, TX 24 Seven #17 • Houston, TX Snappy's Market • Columbus, TX Niko's Corner • Oyster Creek Timber Creek Food Mart • Houston, TX A & T Food Mart • Beaumont, TX 2978 Express • Magnolia, TX Fairmont Food Mart • La Porte, TX Only Authorized Representatives will have access to the renewals on their member portal. 1. Visit http://www.ghraonline.com/ 2. Log into the member portal 3. Click on Membership Renewal and start the renewal process. 4. Please have the Authorized Representative DL, Tobacco Permit, and Beer License on hand, as you will need those required documents to complete your membership renewal successfully. Vol. 3 Issue 1 19 Announcements Industry News CAREER OPPORTUNITIES Lehjatali Momin | Warehouse Chairman NOW HIRING WE’RE ONLINE WWW.GHRAONLINE.COM All GHRA announcements and publications will be posted online. Various positions available Please visit ghraonline.com for a complete listing of all available positions TCEQ Manadatory Underground Storage Tank (UST) A/B Operators Training GHRA is excited to provide this online training, for the price of only $65. Members are encouraged to visit the GHRA website on a regular basis for up to date information and latest publications. GHRA ONLINE CLASSIFIEDS WWW.GHRAONLINE.COM • Members purchasing online training will receive a unique code from GHRA. • This training takes about 4-6 hours and must be completed within 30 days from start of training. • Payment options: Money order or deduct $65 from your quarterly rebate. Under Other Services Absolutely FREE for GHRA members. Members can now list businesses or equipment for sale on the GHRA Website! REGISTRATION FORM IS AVAILABLE at www.ghraonline.com GHRA CERTIFICATION CLASSES Learn2Serve: Food Safety Principles Training + Texas Food Safety Manager Bundle Package To register for this Health class please visit www.learn2serve.com/ texas-food-safety-certification Learn2Serve: TABC Seller-Server Training Exam To register for this TABC Class please visit www.learn2serve.com/ online-tabc-certification Sales/enrollment: 1-888-395-6920 20 Vol. 3 Issue 1 Promotions In Action January 2016 Vol. 3 Issue 1 21 22 Vol. 3 Issue 1 The following is a paid advertisement FRITO LAY Promotional Dates: 1/1 - 1/31 Package:$2.00 Package Cost: $1.47 Promotional Discount: $0.05 Net Cost: $1.42 Suggested Retail: $1.89 Retail Margin: 24.86% GHRA All-in-one Rack $2.00 Value Line Shippers on Sides Nut Harvest Harvest Shipper $1.49 Pre-Packed Weekender SHIPPERS INCLUDE: $1.49 Pre-Packed Weekender Cost $62.40 | Margin 30.20% Vol. 3 Issue 1 $1.99 Nut Harvest Holiday Shipper Cost $92.88 | Margin 35.18% 23 The following is a paid advertisement PEPSI Promotional Dates: 1/1 - 1/31 Package:12pk Package Cost: $8.70 Promotional Discount: $1.35 Net Case Cost: $7.35 Suggested Retail: 2 for $8.00 Retail Margin: 21.1% Any Variety! All 12 packs CSD 2 for $8.00 throughout the month of January 24 Vol. 3 Issue 1 The following is a paid advertisement BRISK Promotional Dates: Package: Package Cost: Promotional Discount: Net Case Cost: Suggested Retail: Retail Margin: 1/1 - 1/31 1-Liter Bottles $15.50 $5.51 $9.99 2 for $2.00 39.2% All 1-liter Lipton Brisk drinks are 2 for $2.00 In January Vol. 3 Issue 1 25 The following is a paid advertisement AQUAFINA Promotional Dates: Package: Package Cost: Promotional Discount: Net Case Cost: Suggested Retail: Retail Margin: 1/1 - 1/31 1-Liter Bottles $15.50 $5.51 $9.99 2 for $2.00 39.2% All 1-liter Aquafina bottles are 2 for $2.00 In January 26 Vol. 3 Issue 1 The following is a paid advertisement DR PEPPER Promotional Dates: Package: Package Cost: Promotional Discount: Net Case Cost: Suggested Retail: Retail Margin: 1/1 - 1/31 20oz Bottles $9.00 $.85 $8.15 2 for $2.22 41.4% New item from Dr. Pepper Imported from Mexico!! Vol. 3 Issue 1 27 The following is a paid advertisement SNAPPLE Promotional Dates: Package: Package Cost: Promotional Discount: Net Case Cost: Suggested Retail: Retail Margin: 1/1 - 1/31 16oz Bottles $11.00 $2.36 $8.64 2 for $2.44 47% Wishing everyone a Happy New Year! We appreciate your partnership & business Thank You! 28 Vol. 3 Issue 1 The following is a paid advertisement NEURO Promotional Dates: Package: Package Cost: Promotional Discount: Net Case Cost: Suggested Retail: Retail Margin: 1/1 - 1/31 14.5oz Bottles $18.75 $1.75 $17.00 2 for $4.22 38% Hot Price 2/$4.00! New item from Dr. Pepper Imported from Mexico!! Vol. 3 Issue 1 29 The following is a paid advertisement HENRY'S HARD SODA Promotional Dates: Package: Package Cost: Net Case Cost: Suggested Retail: Retail Margin: 1/1 - 1/31 16oz $32.80 $1.37 2 for $3.50 22% Henry’s Hard Soda: Big Opportunity with C-Store Shopper Bet on Henry’s Hard Sodas – Orange and Ginger Ale • Hard Sodas are growing fast with c-stores +115% in sales* • Henry’s offers the right flavors: orange & ginger ale sodas are 3x the volume of root beer soda sales • Henry’s offers the right packs for c-stores: 16oz can and 6pk bottle. Singles are 62% of flavored beer category sales at c-store** Get On Board Early • Make your store the go-to destination for Henry’s Hard Sodas by getting it on the shelf quickly • Two flavors are better than one! Stores with two flavors from one brand sell 3.7x more*** 30 NEW! Vol. 3 Issue 1 The following is a paid advertisement Vol. 3 Issue 1 31 The following is a paid advertisement. This product is not endorsed by GHRA. 32 Vol. 3 Issue 1 The following is a paid advertisement $20 Off All Services For January 2016 GEO’s Recipe for GHRA members To avoid unreasonable fines: $20 Off All Services For January 2016 Stage-II decommissioning has been approved by TCEQ!! Geo will decommission each Gilbarco MPD (minimum 4 MPDs) for $550 including the following services: 30 Day decommissioning notification to TCEQ; Replacing Stage II nozzle/ hose with non-vac nozzle/ hose; Replacing P/ V vent cap; Conduct Pressure Decay Test. *Sign up with Geo for Monthly Inspections and avoid TCEQ Citations For $100/ Month Make Sure you have: Current Delivery Certificate Current Pollution Liability Insurance Current Inventory or SIR reports Current Employee Training Certificate Current Annual and 3 year testing 60 day rectifier inspection and 3 year CP testing by a certified inspector Current calibration stickers on dispensers GEO Environmental Consultants 40 Lyerly Street, Houston, TX 77022 Tel.: (713) 695-4708 | Fax: (713) 695-5736 www.geoenvconsultants.com Vol. 3 Issue 1 33 The following is a paid advertisement The following is a paid advertisement “Integrity backed by Experience” Specializing in the removal of….. Services include….. Termite Inspections Termite Treatments WDI Reports Residential Commercial Ants Roaches Fleas Bees Mice Termites …and any other pest that need to be put under ARREST! Checks and Credit Cards welcome Serving Greater Houston and surrounding areas Call today to make an appointment!! 281-580-5618 www.arrestapestinc.net 34 Vol. 3 Issue 33 1 The following is a paid advertisement CERTIFIED PUBLIC ACCOUNTANT C-Store Accounting Exp. Since 1992 Business Tax (1120, 1120S, 1065) Personal Tax (1040) Business Financial Statements Audits Service(Sales Tax and IRS) Payroll Services Bookkeeping (All type of businesses) Mahjabeen Samnani Samir Karowalia Salim Momin T – 713-988-2243 F – 713-988-0800 6200 Savoy Dr. Ste 400 Houston TX 77036 The following is a paid advertisement LOCATED INSIDE GHRA OFFICE 12790 SOUTH KIRKWOOD RD HOUSTON TEXAS, 77477 COMMERCIAL HOME AUTO Property, Liability, Workman’s Comp, Underground Tank, Flood, Windstorm and Many more YOU WILL BE PLEASED WITH OUR SERVICE AND PRODUCTS, SO CALL US TODAY CALL MOIZ MERCHANT TODAY FOR YOUR FREE QUOTE AT 281-295-5380 Cell: 832-283-4246 Fax: 1-888-506-6022 36 12790 South Kirkwood Rd., Stafford, TX 77477 Ph. 281.295.5300 • Fax. 281.295.5399 www.ghraonline.com Vol. 3 Issue 1