Retailers Access Operations Toolbox to Improve Store-Level Execution
NATIONAL REPORT — Smart convenience store operators are always looking for ways to improve store operations and boost customer satisfaction. Improving staff training, using technology for better execution at the store level, adding self-checkout and ordering kiosks, and outsourcing expense management are all approaches being chosen by retailers today to achieve the goal of operational excellence.
"Everything we can do to try and make the employee better that fits our goal of total customer commitment is important to us," said Michael Deal, human resources director at Moyle Petroleum Co., based in Rapid City, S.D., and operating 30 Common Cents Stores.
To achieve excellence in daily store operations, training store employees is essential — both during onboarding and on an ongoing basis.
Training also can include advanced learning to assist employees in growing within the company, which aids in retention.
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"We use computer-based training over five days with initial hires, but then have different modules for ongoing training and for those who want to move up to second assistant manager, first assistant manager and store manager," said Deal, who shared that the company partners with Ready Training Online. "Selection of employees and training is important because retaining is easier than recruiting."
The biggest mistake c-store retailers make around training is focusing only on new hires and store managers, according to Tom Hart, director of business development and marketing at Ready Training Online, based in Elizabethtown, Pa. Ongoing training is crucial to maintain good store execution and offer employees the chance to advance their skills and grow within the company.
"How are you advancing your employees' skills and letting them know you care?" Hart posed. "When it comes to store execution and productivity, a productive team needs to care, and they need to know you care."
Whether it's how to operate the store on a daily basis, prepare foodservice items, de-escalation training or advanced skills such as category management for store managers to better understand a planogram, having a central training program ensures that all employees are on the same page no matter what location they work at or in what state, said Hart.
"We operate in four different states and have four different training directors who do recruiting and hiring, but they train the same way with the same curriculum to give us a consistent brand from location to location," Deal said, explaining that the retailer does all its training at the store level with employees paid for their time.
While Common Cents Stores has set modules for training, the chain will add training as necessary and as it becomes available. The retailer also creates its own training.
"We have done a lot of custom videos and had the Ready Training team come out and film as we rolled out our new pizza program to train employees how to make the pizza," Deal said. "They took our handwritten instructions and made a voiceover for the training videos."
In addition to training, Common Cents utilizes its loss prevention video systems to do virtual mystery shops and then rewards employees with cash incentives for great customer service. Every employee is mystery shopped within the first 30 days of employment and then quarterly after that.
"Our loss prevention manager mystery shops all 450 employees through the video cameras, and he does about 100 per month, including age-compliance shops to make sure ID is requested," Deal noted.
Saving Labor With Self-Service
After the COVID-19 pandemic hit and labor issues abounded, many c-stores turned to technology for help, including self-service devices. Today, they are widespread and accepted by many consumers. These devices not only save labor, but also increase efficiency and customer satisfaction by eliminating lines and allowing customers to exit the store faster.
Temple, Texas-based CEFCO Convenience Stores, operator of more than 190 locations, added in-store kiosks for foodservice ordering in partnership with software company Reji LLC and Olea Kiosks, eliminating the need for an employee to take orders.
"One of the big challenges in a c-store is labor, and they are often short on store-level employees, so the kiosk allows for self-ordering and while the customer waits for the food, they can shop the store," said Reji CEO Frank Yoder.
At its CEFCO Kitchen locations, the retailer prints out a receipt with a barcode for the customer to take to the checkout and pay. C-stores that do this offer their customers the opportunity to walk around the store and pick up other items while they wait, which they may not do if they already paid at the kiosk, noted Yoder.
"Kiosks have been proven in the QSR [quick-service restaurant] environment and we have seen for c-stores, the ticket lift is higher when they order through a kiosk — in some cases, by 20%-30%," he added, explaining that it is more guilt-free for customers when they order through a kiosk and add extras. The kiosk also prompts the customer to add on items.
Managing Operating Expenses
Every convenience store owner has numerous expenses to keep its stores operating, whether it's utilities, waste and recycling management, pest control or uniform rental.
When it comes to operations, an area where c-store operators can push more money to their bottom line is expense management. Many are paying hidden fees without realizing it.
"We call it a 'good contract, bad deal' with some of these suppliers because they will often turn it into a bad deal by constantly adding other charges to make them more profitable," said Rich Young, president at Fine Tune, a cost reduction consulting company based in Chicago.
He also noted that there is often a disconnect within c-store organizations between sourcing and procurement, who signs a contract, operators in the field, and accounts payable.
"There are sneaky ways suppliers will fatten their margins and profit, such as container overfill for the waste collector. This is often left to their discretion, so if a trash bag is spilling out over the top, they might mark that down as an extra percentage charged on the bill," Young said. "There are also unwanted service increases, such as a supplier changing to a name brand vs. off-brand material."
Using proprietary software, Fine Tune works with c-store operators to renegotiate a contract if necessary, and to find and fight the ways suppliers add to the bill. The company works on a contingency basis and takes a shared percentage of the spend decrease based on its services.
This is especially important for chains with a larger number of stores and those operating with leaner staffs that don't have the time to go line by line and store by store.