WWW.NATS O.

C O M MAR C H /APR I L 2 013

Hank Suerth, CEO of Orion Food Systems, addressed attendees at The NATSO Show

SUGGESTIVE SELLING BOOSTS PROFITS

THE NATSO SHOW RECAP

NATSO MEMBERS TAKE CAPITOL HILL

PRODUCT TRENDS IN TRUCKSTOP C-STORES TRENDS & PRIORITIES AFFECTING THE INDUSTRY
 THE MEMBER MAGAZINE OF NATSO, REPRESENTING THE TRUCKSTOP AND TRAVEL PLAZA INDUSTRY

Im in a long-term relationship with my truck.

My name is Bob Verdi. Im an owner/operator. Ive been driving a truck since 1977. Years ago I switched to Mobil Delvac diesel engine oil because I was told it would extend the life of my engine. I have over 1.7 million miles on this motor and Ill never put another oil in it. I guess you could say Im committed.

mobildelvac.com
2012 Exxon Mobil Corporation. Mobil and Mobil Delvac are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries. This proof of performance is based on the experience of a single customer. Actual results can vary depending upon the type of equipment used and its maintenance, operating conditions and environment, and any other prior lubricant used.

CHAIRMANS LETTER

I
TOM HEINZ CHAIRMAN OF THE BOARD

THE POWER OF KNOWLEDGE

am a rm believer in the power of knowledge, and I feel we all owe it to ourselves and our businesses to learn something new each day. Gathering information and then sharing it with each other keeps us moving toward a future that is full of promise. As an industry, we can collaborate with each other and share ideas that spur the innovation that will take us into tomorrow. NATSOs diverse membershiptruckstop and travel plaza operators and industry suppliers and service providerslends itself to the broad base of information that will uncover a multitude of opportunities. How we use that information is key, and it is up to us to grasp the opportunities we uncover. If you arent already taking part in all NATSO has to offer, I encourage you to discover the ever-evolving variety of resources the association makes available. The NATSO Show in February was an ideal time to learn from industry experts and cement relationships that will last for years, but NATSO also creates learning opportunities throughout the year. From webinars and blog posts to in-personal educational experiences, there is something for everyone. Visit www.natso.com to see some of what NATSO has planned this year. NATSO thrives on the action and input of its members, and I guarantee you that when you invest your time in NATSO, you will get something in return. We are all individuals, and our core strength comes from the successes we each achieve in our own operations. Yet we reinforce that core when we come together for the good of the industry. I hope you will make plans now to attend NATSOs Day on the Hill event May 6-8 (see related story on page 15). The November election means we have 97 newly elected lawmakers13 in the Senate and 84 in the Houseto meet with and share information on the importance of our industry not only to interstate commerce, but also to the nation

and the communities in which we operate. During the Day on the Hill event, you will meet face-to-face with lawmakers and Hill staff to share your rst-hand knowledge about our industry and how potential regulatory and legislative actions will affect our operations. NATSO staff will prepare you for your meetings, providing you with information on the issues to be discussed, such as tolling and rest area commercialization, and some helpful hints on how to conduct a successful meeting. Not only will you learn something new, you will be able to share your knowledge and make your mark on the legislative process. By working together, we can do more than any of us could do individually. Lets tap into the wide range of expertise we all bring to the table as we look for new ways to attract and serve our customers and protect our industrys interests. I look forward to working with you during my time as chairman. I Best regards,

Tom Heinz Coffee Cup Fuel Stops & Convenience Stores, Inc. NATSO 2013 Chairman
www.natso.com 3

WWW.NATSO.COM MAR/APR 2013

 THE MEMBER MAGAZINE OF NATSO, REPRESENTING THE TRUCKSTOP AND TRAVEL PLAZA INDUSTRY 

C OVE R STO RY
12 The NATSO Show 2013 Recap
Highlights from Savannah

FEATU R E S 08
SUGGESTIVE SELLING BOOSTS PROFITS WHILE BENEFITING CUSTOMERS SPURRING SMALL SALES CAN ADD UP TO BIG PROFITS.

11

TRAVEL PLAZA AND TRUCKSTOP INDUSTRY CONVENIENCE PRODUCT TRENDS HIGHLIGHTS OF THE MCLANENATSO FOUNDATION INDEX.
Editor Amy Toner Associate Editor Mindy Long

15

NATSO MEMBERS TAKE TO CAPITOL HILL TAKE AN ACTIVE ROLE IN THE LEGISLATIVE PROCESS AND PROTECT YOUR OPERATIONS.

20

CONNECTING WITH CUSTOMERS LEARN HOW TO KEEP UP WITH YOUR CUSTOMERS ON THE GO AND IN YOUR LOCATION.

Chairman Tom Heinz President & CEO Lisa J. Mullings

D E PARTM E NTS 03
Chairmans Letter THE POWER OF KNOWLEDGE

18

Stop Watch is published bimonthly by the NATSO Foundation, 1737 King Street, Suite 200, Alexandria, VA 22314. Copyright 2013 by the NATSO Foundation. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without written permission of the publisher. All editorial materials are acceptable and published by Stop Watch on the representation that the supplier is authorized to publish the entire contents and subject matter. Such entities and/or their agents will defend, indemnify and hold harmless Stop Watch and the NATSO Foundation from and against any loss, expense or other liability resulting from claims or suits for libel, violation of privacy, plagiarism, copyright or trademark infringement and any other claims or suits resulting from the editorial materials. Periodicals postage 024-723 paid at Alexandria, VA and other mailing ofces. POSTMASTER: Send address changes to Stop Watch, 1737 King Street, Suite 200, Alexandria, VA 22314

06

Great Ideas! DARREN SCHULTE OFFERS EASY-TOINCORPORATE TIPS FOR RETAIL THAT GET RESULTS

Foundation Update TRENDS AND PRIORITIES AFFECTING THE TRUCKSTOP AND TRAVEL PLAZA INDUSTRY

26

Operator 2 Operator WHO DO YOU LOOK UP TO IN THE INDUSTRY AND WHY?

24

Member Prole CARS, CARROTS AND CHRISTIAN FAITH IN GLENRIO, NEW MEXICO

We Want to Hear From You!

Do you have comments, ideas or suggestions? Dont hesitate to contact us. The NATSO Foundation 1737 King Street, Suite 200 Alexandria, VA 22314 Email: editor@natso.com / Phone: (703) 549-2100 http://www.facebook.com/NATSOInc / https://twitter.com/natso_inc

DARRENS GREAT
Darren Schulte, NATSOs vice president of membership and a retail expert, writes a biweekly retail column on NATSOs blog. We feature the best here in Stop Watch magazine. Join Schulte on NATSOs website at www.natso.com/great-ideas to read his digestible retail tips every other Thursday.

ONE DOZEN IDEAS TO REDUCE SHRINK AT YOUR TRUCKSTOP IMMEDIATELY

You have to accept that youre never going to eliminate shrink, but you can control it.

Cash loss, food loss and product loss, better known as shrink, are historically highest at this time of year. However, you will not nd out the impact of the loss until you perform your cost and retail audits. Many retailers in our industry will perform a full audit and inventory only once a year; consequently, they will not know the nancial impact until then.

Dont wait until after your audit results to take action. Below are a dozen things you can do immediately to reduce your shrink loss. Remember, paperwork errors typically account for 1 percent to 2 percent of your variation, customers 5 percent to 7 percent, vendors 7 percent to 10 percent and employees a whopping 80 percent to 90 percent. A busy, happy employee is usually less of an issue.

5 / Check in vendors one at a time,

allowing only one vendor at a time to be in your store.

6 / Do trash checks. 7 / Use clear trash bags. 8 / Catch someone on your security system doing something GOOD. Compliment them in front of others. They know you review them.

1 / Have an employee appreciation

ATTENDEES OF THE NATSO SHOW 2013

learned a lot more on shrink management in the bonus workshop. Download the slides at www.natso.com/bonusworkshopslides.

event, such as a friends and family sales event.

9 / Do not let employees wait on or

ring up family or friends.

2 / Do a daily cash audit on every shift. 3 / Have managers approve refunds,

over rings and employee meals.

10 / Track your entire food waste. 11 / Spot check measured food

portions.

4 / Make it mandatory to greet

12 / Calibrate coffee and brix your

fountain. I

every customer. A greeted customer is a noticed customer and thieves dont like to be noticed.

March/April 2013

HAVE A RETAIL MERCHANDISING, MARKETING OR OPERATIONS QUESTION? Reach out to Schulte

at dschulte@natso.com or (703) 739-8562 and hell answer your question in the next Darrens Great Ideas! for Independent Operators.

THREE ALTERNATIVE METHODS FOR RECRUITING STAFF

When it comes to advertising, operators and managers should consider their return on investment on the various options along with past methods that have worked.

Your employees are the most important part of the truckstop(s). Running a successful business requires having the right people doing the right job and consistently training them so they get better at what they do. Your people are what separate your location from the competition. Truckstop owners and managers need to focus on hiring quality people. Customers are willing to forgive you if dont have what they are looking for or if your price is a touch higher than your competitor, but they never forgive bad customer service. Your people are the front line to your customers and will shape the impression customers have about the business. If an employee upsets a customer, it reects badly on the whole operation. At the same time, if an employee makes a customer feel welcome and cared for, he will be a repeat customer even if you occasionally dont have an item in stock or have a slightly higher price.

FINDING CANDIDATES
The hiring process starts with nding new applicants. From reviewing current applications to advertising in print, there are several ways to get to the candidates you choose to interview.

2 / SHARE LEADS. Work with other businesses to share applications and candidates that you cant use.

3 / CREATE AN INTERNSHIP PROGRAM. Meet

with your local high school, community college or local college to develop internships or work-for-grades programs that provide students with real-world experience while also giving you a qualied employee. I

ADDITIONAL METHODS FOR RECRUITING STAFF

When it comes to advertising, operators and managers should consider their return on investment on the various options along with past methods that have worked. Some advertising methods are expensive and others may result in candidates that dont seem to stick around. While you dont want to rule out any method, you may want to expand your search with the following methods:

HUMAN RESOURCES
is an essential element in the success of any operation. To help NATSO members, NATSO offers a Truckstop and Travel Plaza Training Manual with items such as detailed job descriptions for key truckstop positions, a sample cash audit form and more. Purchase the Truckstop and Travel Plaza Training Manual at www.natso.com/trainingmanual.

1 / ATTEND EVENTS IN THE COMMUNITY. Attending job fairs or community group meetings gives you the opportunity to nd talent and gets your companys name out in the community. For example, you could ask to speak during church, YMCA or YWCA meetings.

www.natso.com

or cashiers at Stamart Travel Centers, increasing the average sale per customer has been as simple as asking if shoppers would like to take advantage of a 99-cent bag of licorice. While that 99-cent purchase may seem small, suggestive sellingthe process of recommending items to customers to spur an additional purchase has the potential to add up to large prots for the locations. Darren Schulte, vice president of membership for NATSO, said, It can often be in the hundreds of thousands of dollars for one single item. If your location has 900
March/April 2013

customer transactions a day and you had a 25 percent success rate of suggesting a $1.79 large candy bar to each customer, you would garner an additional $400 in sales for the day, $2,800 for the week, roughly $12,000 for the month and $147,000 for the year. Whats even better is that suggestive selling, also called upselling, can also improve shoppers overall experience at the location. Providing customers with money-saving opportunities or the information that allows them to make informed purchases increases customers perception that they received person-

alized attention and value at the location, which in turn can make them more invested in your location and repeat customers. As an added bonus, Schulte said suggestive selling can minimize theft. If youre suggestive selling, youre greeting customers when they come in, youre having conversations with them, and youre paying attention to merchandise, he said (see related article on reducing theft on page 6). Lisa Beach, retail operations manager for Stamart, said, We have the licorice by the till and the cashiers will ask our customers if they want to buy a bag, she said. A lot of times people

will take it and your average sale per customer goes up a little bit. For operators, suggestive selling is one of the easiest, most cost-effective ways to increase revenue, prot and customer satisfaction. Recently a Gallup Global Management study found it costs ve times as much to gain a new client than it does to serve an existing one. It is harder to get new customers, so you can focus on getting more money from those existing customers, Schulte said. Sam Roark, director of operations for Afnity Gaming, which operates a truckstop at Whiskey Petes Resort and Casino, said, You need to concentrate on the customer. Theyre there already and purchasing something from you. If the opportunity arises to upsell them into a better unit by listening to what they want, you capitalize on it. The top items for a suggestive selling program are those that easily t on the counter and are something cashiers have an easy time asking someone to buy. If it is a stand-alone program, candy works well. If it is an associated purchase, it makes it easier from a selling standpoint. If your program is lighters and your suggestive sell is every time someone buys cigarettes you suggest a lighter, that is an easy program, Schulte said. Schulte added that retailers need to be mindful of how many items they feature by the register. If your counter is cluttered with all kinds of items and you have an upsell item youre trying to sell there, you minimize the effectiveness of the program, he said. The recent licorice promotion isnt the rst time Stamart has turned to suggestive selling, and over the years Beach has learned what works and what doesnt. We know we have to

keep it simple and low priced, so food and candy seem to work the best, she said, adding that Stamart has had success suggestive selling items in the restaurant. We introduced a new meatloaf sandwich into our mix of food and some of our customers are choosing that for $3.99 over the $1.50 hamburger. The margin on the hamburger is 50 percent and the meatloaf is 56 percent. The meatloaf sandwich is very simple to make and there is not a lot of labor involved. Stamart has also introduced wraps for $1.29. We have a breakfast wrap and a chicken and hamburger wrap. Customers might grab a breakfast pizza, but they want a little bit more so they grab a wrap, too, Beach said. For Roark, suggestive selling electronics has proven to be the most protable. It is your highest retail ring and it is the easiest to upsell on. Whether it is a radar detector, a CB, laptops or tablets, theyre the easiest to close. The customer is already in there to get that specic item from you and its easier than you think, he said. Electronics are also higher ticket items. Gloves are a $7.99 ring versus a $200 ring in electronics. You get greater gross margin dollar production, Roark said. However, suggestive selling on electronics will only work if retailers understand the products. Roark said employees take time to read the product sheets and learn the features of each product. Don Paddock, vice president for KSG, said, With the big increase in hands-free devices or mobile phones, you generally have three itemsa entry level, midlevel and premium level. People will look at the entry level, but we let the personnel know about the features of the other devices so they

THE MANY FACES OF SUGGESTIVE SELLING

To boost sales, operators can implement one or more of the four different types of suggestive selling. They include: CONJUNCTION: Suggesting an item in conjunction with a current purchase, such as asking if the customer would like to add a bag of chips to his 20-oz. bottle of soda. PROMOTION: Suggesting that the customer take advantage of an item that is currently on sale. SUGGESTIVE SELLING: Suggesting customers take advantage of a larger size. For example, ask them if they would like to buy the king-size candy bar instead of the normal size. TARGET: Suggesting that the customer buys a certain item. This item is usually chosen by the manager and changes on a routine basis.

can help the customers nd what theyre looking for. Operators can also spur sales by offering multi-price discounts, and vendors may be able to help with point-of-sale signage to draw attention to specials. KSG offers displays and point-ofsale signage to spotlight discounts on DVD purchases. We see a 15 to 20 percent lift when we offer two for $20 pricing and a 35 percent increase when we offer four or ve DVDs for $20, said Paddock. Sometimes well also do buttons that say ask me about ______.
www.natso.com 9

QUICK TIPS FOR EFFECTIVE SUGGESTIVE SELLING

Help inuence customers to do more business with you with these four tips. TARGET SPECIFIC PRODUCTS: To increase a programs effectiveness, ensure any suggestive selling program is a focused program. For example, a location might have a dozen buy-one-get-one-half-off specials going on at one time, but it could be difcult for cashiers to remember every promotion. Management can choose two of the promotions they want cashiers to focus on and try to boost sales in those specic areas. KNOW WHAT YOUR CUSTOMERS NEED: Talking with your customers will help you understand the products they need and want to buy (see related story on page 20). By listening to what they have to say and paying attention to what theyre already buying, you can identify the suggestive selling opportunities that will provide value. SELL SOLUTIONS: By knowing what your customers need, you can offer them meaningful solutions that best meet their needs. For example, a driver that is picking up coffee may be receptive if the cashier recommends a pastry to go with it. A customer shopping for a GPS will appreciate an employee who can tell him about the features of the different options. EDUCATE CUSTOMERS: Shoppers looking at products with higher price points, such as electronics, will be able to make better buying decisions if they know the

advantages of the different options. By pointing out the features of products and helping shoppers determine the benets, employees have a better opportunity to make a larger sale and provide greater customer service.

Communication is the key to a sale, whether it is the cashier passing along info to a customer or a vendor passing along information to the location buyer. Kevin Puebla, national account manager, DAS, said his salespeople talk over new promotions with the travel plaza manager to boost the energy level surrounding a product. You have to show excitement to the manager. Too often it just becomes the same old same old and there isnt much discussion, he said. If we create excitement with the managers, theyll pass that excitement on to their people. By working together, vendors and operators can boost overall sales. Were partners with them so we have to act like were partners, Puebla said. DASs sales staff work to ensure store displays are set up correctly and that displays and yers are in high-trafc areas so customers can see the promotions. If were doing a promotion on an end cap, well
10 March/April 2013

have it planogrammed for the location. It shows where it should go and how it will look the best, Puebla said. The keys to any suggestive selling program are the front-line employees. To get them invested in the promotions, some locations offer contests. The main thing is to get them excited and taking part in it, Beach said. In the past, Stamart has offered a $50 Stamart gift card to the employee who sells the most of a particular item within a certain period of time. You have to give them a reason to do it and you have to make it fun, otherwise they feel like theyre bugging the customer, she said. Money is typically the best motivator for employees, Schulte said. Traditionally, employees sign into the register using their code and then the point-of-sale system tracks the number of units sold, he explained. Beach said cashiers should approach suggestive selling with a positive attitude. It is important

to train your cashiers to do it right. It takes managers getting involved and showing them how to do it and promoting the right priced item. Roark told Stop Watch employee training is important. You need to have that person with you on the oor when youre selling so they see you do it, he said. Schulte said he expects suggestive selling to become even more important as more and more people shop online. Everyone is nally realizing that when a customer comes into your store, you better try to get as much sell out of that person as you can. I even believe in the future, the registers will tell the cashier what to upsell, Schulte said. I
Join the conversation online! Schulte recently wrote on suggestive selling on NATSOs blog. Go to http://www. natso.com/blog/suggestive-sellingsuccess and share your ideas on what does and doesnt work for suggestive selling.

Travel Plaza and Truckstop Industry Convenience Product Trends

A dose of the quarterly analysis of weekly purchases of travel plaza and truckstops served by McLane.

2011
Foundation and McLane started collaborating to produce the McLane/NATSO

The year the NATSO

$20,714 59% 7

14%

Foundation Index, a quarterly tool to help NATSO members compare their weekly convenience store purchases with travel plazas and truckstops convenience stores served by McLane.

The average purchases per week per travel plaza and truckstop in 2012 in the Mid-Atlantic, the U.S. region with the highest weekly purchases.

The increase in purchases per week per truckstop and travel plaza of packaged beverages, such as energy drinks and bottled water, when comparing purchases in 2012 to 2011 purchases.

The percent of total purchase dollars spent on cigarettes, the largest category by a large margin. The next largest category, candy, clocks in at 6 percent.

The number of regions proled in the McLane/NATSO Foundation Index.

$16,545

The average total travel plaza and truckstop convenience purchases per week from McLane in 2012.

All data is from the 4th Quarter 2012 McLane-NATSO Foundation Index. Released quarterly, the index is produced to help NATSO members compare their own weekly category purchases against the trends reported in the index. Members may sign in at http://www.natso.com/mclanenatsofoundationindex to read the full report.
www.natso.com 11

Key leaders in the travel plaza industry and their suppliers came face to face at The NATSO Show 2013 in Savannah, Ga., in February, exchanging ideas and uncovering new solutions to improve their operations and plan for the future.

Chairmans Circle members hosted dinner at the Olde Pink House. Attendees donned their jerseys for Sunday nights Super Bowl party.

Attendees learned ideas to apply the day they got home in the early morning breakout sessions. During the keynote sessions, attendees interacted with thought leaders.

12

March/April 2013

The NATSO Show attendees collaborated in the Great Ideas! Workshop.

Team Randall Reilly took rst place in the NATSO Foundations Golf Tournament. Attendees connected during the meals on the show oor. Red Eye Radio interviewed truckstop and travel plaza operators and industry suppliers during The NATSO Show. James A. Jim Haslam II received the Hall of Fame award.

Jimmy Haslam of Pilot Flying J shared his outlook on the future of the industry.

Tom Kloza provided an update on the outlook of fuel.

Whether you soaked up every second of this years show or you watched and learned from afar, you wont want to miss The NATSO Show 2014. Save the date and make plans to attend next years show Jan. 2629, 2014, in Nashville, Tenn.

www.natso.com

13

NATSO THANKS OUR SPONSORS FOR THEIR SUPPORT OF THE NATSO SHOW 2013
PLATINUM

GOLD

CAT
SCALE

COPPER

THE NATSO FOUNDATION WOULD ALSO LIKE TO THANK THE NATSO FOUNDATION GOLF TOURNAMENT SPONSORS FOR THEIR SUPPORT IN SAVANNAH

PLATINUM

GOLD

COPPER

SPONSOR

NATSO thanks the North American Truck Stop Network (NATSN) for colocating the NATSN Board of Directors meeting with The NATSO Show 2013.
14 March/April 2013

NATSO MEMBERS

TAKE TO CAPITOL HILL

n May, NATSO members from across the country will assemble on Capitol Hill and meet face-to-face with their lawmakers to discuss the key issues facing the truckstop and travel plaza industry and protect the businesses theyve spent years building. Unfortunately our government is becoming more and more involved in our business. The only way to keep them from passing burdensome legislation is to personally go there and speak with them about the issues, said Bill Vollenweider, president of the Detroiter Travel Center. They say that you cannot ght city hall but that is not true. If your cause is good, they will listen. Tom Liutkus, marketing director for TravelCenters of America, said, As much as we struggle with our poor perceptions of Congress, this is how business gets done. He added, Operators should attend because it matters to them and their businesses. Delia Moon Meier, senior vice president of the Iowa 80 Group, said, This isnt just for people who like politics. In fact, I imagine every attendee would prefer to spend that day working at their truckstop. Unfortunately, America has shifted and a government takeover of our industry is a very real possibility. People just arent aware of how the truckstop industry works and how unfair and damaging the commercialization of rest areas would be. They arent aware of how many people we employ and our contributions to the local and state communities. For operators, the event is a chance to build new relationships with their elected ofcials and their staff and strengthen existing ones. Last year, Liutkus re-connected with an Ohio state legislator who had been elected to Congress. The lawmaker remembered attending open houses at two new TA sites in Ohio ve to seven years earlier. It taught me that even for a chain like ours, our legislators do listen, are aware of how things impact us and will consider all of the issues before they cast a vote, he said. Vollenweider said he has found that lawmakers enjoy speaking with their constituents. They are constantly talking with lobbyists but when they have a real small businessman take the time to come to see them, they really enjoy meeting us and talking with us. It is impossible for lawmakers to be experts on every industry or the unintended consequences legislation may have, so they rely on their constituents. It is our job to inform our legislators of those consequences so they can make a more informed decision on a vote. If we dont take the time to do that, we have no one to blame for those consequences but us, Liutkus said. All operators are encouraged to attend, even if theyve never met with their representatives before. Mark Augustine, president of Triplett Inc., said no one should feel intimidated by the process. Congressman are eager to meet their constitutes and learn about policies and issues that are affecting their lives, he said. Liutkus has been attending the Day on the Hill event for over ten years. After my rst year, I was hooked.
PLAN NOW TO ATTEND THE DAY ON THE HILL EVENT
May 68 in Washington, D.C. NATSO staff will prepare you for your meetings, providing you with information on the issues to be discussed and some helpful hints on how to conduct a successful meeting. Register for the conference and reserve your room at the Grand Hyatt Washington hotel at http://natsodayonthehill.com/. Contact Brad Stotler at (703) 739-8566 or bstotler@natso.com with questions.

Not only did I surprise myself and do quite well, I did have a sense of civic pride because this is how Congress works and a very effective way to get our companys and our industrys positions out on key legislation. At the end of the event, NATSO and its members host the annual pie reception, where operators and lawmakers have a chance to talk over a slice of pie. Last year at the Day on the Hill my Congressman, Tim Huelskamp, made an effort to seek me out at pie reception. I had a great time visiting with him and his staff, Augustine said. If you are going to stay in business, you have to consider going. To actually see what our representatives do and how the system works is truly amazing. It is not work, it is truly fun and exciting, Vollenweider said. It is an experience that you will enjoy and remember. I
www.natso.com 15

16

March/April 2013

NEW MEMBERS
NEW TRAVEL PLAZA MEMBERS
BEHMS TRUCK STOP
Pilot Dealer #550 3800 Hwy. 2 & 58 W. Minot, ND 58701 PHONE: (701) 720-8097 CONTACT: Paul Behm

GAS-N-GO #13
P.O. Box 616 Green River, UT 84525 PHONE: (801) 489-3888 CONTACT: Dustin Lunt

MR. FUEL #8
140 Holwager Spiceland, IN 47385 PHONE: (765) 987-1054 CONTACT: Kevin Manning

SAN FELIPE TRAVEL CENTER (FOUR WINDS TRAVEL CENTER)

26 Hagan Rd. San Felipe PB, NM 87001 PHONE: (505) 867-4706 CONTACT: Heather Willie

DOSWELL TRUCK STOP LLC

10222 Kings Dominion Blvd. Doswell, VA 23047 PHONE: (917) 362-8362 CONTACT: G. Singh

JONEZ TRAVEL CENTER

P.O. Box 608 Cameron, MO 64429 PHONE: (816) 632-1997 CONTACT: Steve Jones

NICE-N-EASY GROCERY SHOP #25

5565 Barten Rd. Brewerton, NY 13029 PHONE: (315) 676-2117 CONTACT: John MacDougall

STONY RIDGE TRAVEL PLAZA

1250 Hamilton Lebanon Rd. Monroe, OH 45050 PHONE: (513) 561-6633 CONTACT: Amy Westheimer

NEW ASSOCIATE MEMBERS

AMP AMERICAS LLC
19 N. Sangamon St. Chicago, IL 60607 PHONE: (847) 912-3840 CONTACT: Martin Hollander

IPIRANGA PRODUCTOS DE PETROLEO S/A

Francisco Eugenio St. #329 Rio De Janeiro, Brazil 20941-900 PHONE: (21) 2574-5111 (International) CONTACT: Raquel Monteiro Lopes

MARKHAM ENTERPRISES
1901 Jolly Rd. Okemos, MI 48864 PHONE: (517) 749-2907 CONTACT: Randy Markham

PORT OF ENTRY LLC

P.O. Box F Oakville, WA 98568 PHONE: (360) 273-9911 CONTACT: Paul S. Pariser

FOUR SEASONS PRODUCE

400 Wabash Rd. Ephrata, PA 17522 PHONE: (717) 721-2712 CONTACT: Ben Riggs

MUTUAL OIL COMPANY INC.

863 Crescent St. Brockton, MA 02302 PHONE: (508) 583-5777 CONTACT: Stephen Shaer

SABLE REALTY
P.O. Box 9028 Amarillo, TX 79105 PHONE: (406) 425-2074 CONTACT: Chris Storm

NEW ALLIED MEMBERS

CHAIRMANS CIRCLE MEMBERS

AIRCELL INTAKE SPACERS

2126 West Beebe Capps Expy. Searcy, AR 72143 PHONE: (888) 674-3835 FAX: (501) 279-3046 CONTACT: Larry Harrington EMAIL: save@aircelleet.com WEBSITE: www.aircelleet.com

FCTI INC.
1801 Avenue of the Stars Los Angeles, CA 90067 PHONE: 310-201-2535 FAX: 310-203-3009 CONTACT: Sharen Saedi EMAIL: ssaedi@fcti.net WEBSITE: www.fcti.net

KEYSTONE STRUCTURES INC.

705 Terminal Way Kennett Square, PA 19384 PHONE: 610-444-9525 FAX: 610-444-9540 CONTACT: Michael Dougherty EMAIL: michael.dougherty@ keystonestructures.com WEBSITE: www.keystonestructures.com

ORION FOOD SYSTEMS

2930 W. Maple St. Sioux Falls, SD 57107 PHONE: 605-336-6961 FAX: 605-336-0141 CONTACT: Hank Suerth EMAIL: hank.suerth@hs.com WEBSITE: www.orionfoods.com

BIG RIG TEES

6580 E. Skelly Drive Tulsa, OK 74145 PHONE: 918-663-8339 FAX: 918-663-8340 CONTACT: Jay Kennon EMAIL: jay@bigrigtees.com WEBSITE: www.bigrigtees.com

FIREKING SECURITY GROUP

101 Security Pkwy. New Albany, IN 47150 PHONE: 888-462-4382 CONTACT: David Gofnet EMAIL: davidg@reking.com WEBSITE: www.reking.com

STRATEGIC PARTNERS

RINALLIANCE INC.
10430 New York Ave., Suite F Urbandale, IA 50322 PHONE: 866-433-7467 FAX: 515-224-0502 CONTACT: Jeff Hove EMAIL: info@rinalliance.com WEBSITE: www.rinalliance.com

ACTION IMPORT MERCHANDISE

1201 West North Carrier Pkwy., Suite 106 Grand Prairie, TX 75050 PHONE: 800-433-7141 FAX: 972-602-1988 CONTACT: Mike Phillips EMAIL: mlpchrome@sbcglobal.net WEBSITE: www.actionimports.net

CORE STATES CORP.

4191 Pleasant Hill Road, Suite 400 Duluth, GA 30096 PHONE: 215-809-2125 FAX: 215-809-2124 CONTACT: Staci Nosheny EMAIL: snosheny@core-eng.com WEBSITE: www.core-eng.com

HUNTERS RESERVE INC.

12861 Industrial Park Blvd. Plymouth, MN 55441 PHONE: 612-750-9500 FAX: 763-383-1302 CONTACT: Debbie Schold EMAIL: dschold@huntersreserve.com WEBSITE: www.huntersreserve.com

SIGN OF THE TIMES

4950 South Santa Fe Ave. Vernon, CA 90058 PHONE: 323-417-4528 FAX: 323-581-0810 CONTACT: Mark Roginson EMAIL: markr@crystalartgallery.com WEBSITE: www.scottcrafts.com

ADD SYSTEMS (ADVANCED DIGITAL DATA)

6 Laurel Drive Flanders, NJ 07836 PHONE: 800-922-0972 FAX: 973-252-3803 CONTACT: Jack Kelly EMAIL: mcenteel@addsys.com WEBSITE: www.addsys.com

DOUBLETRAC BY OMEGAFLEX
213 Court St., Suite 1001 Middletown, CT 06457 PHONE: 860-704-6829 FAX: 860-704-6830 CONTACT: Don Effgen EMAIL: don@omegaex.com WEBSITE: www.doubletrac.net

INGRAM ENTERTAINMENT INC.

8779 Greenwood Place Savage, MD 20763 PHONE: 301-490-1166 FAX: 301-490-0031 CONTACT: Bill Crystal EMAIL: billcrystal@ ingramentertainment.com WEBSITE: www. ingramentertainment.com

SMOKEY MOUNTAIN SNUFF

668 Ziegler Lane Waco, TX 76708 PHONE: 214-914-5531 FAX: 254-836-1517 CONTACT: Richard Hunsberger EMAIL: rehsmc@aol.com WEBSITE: www.smokeysnuff.com

AMP AMERICAS LLC

19 N. Sangamon St. Chicago, IL 60607 PHONE: 630-235-9841 CONTACT: Steve Josephs EMAIL: sjosephs@ampamericas.com WEBSITE: www.ampamericas.com

www.natso.com

17

DEPARTMENT XXX FOUNDATION

UPDATE

TRENDS AND PRIORITIES

AFFECTING THE TRUCKSTOP AND TRAVEL PLAZA INDUSTRY
History shows that the offerings and business operations at truckstops and travel plazas shift as their customers needs change, and the most successful operations work to stay J\YYLU[VUPUK\Z[Y`[YLUKZHUKYLTHPUL_PISLLUV\NO[VHKQ\Z[HJJVYKPUNS`

o help operators stay current, The NATSO Show Advisory council tapped a number of trucking industry experts and truckstop operators to speak during The NATSO Show 2013 in Savannah, Ga. The experts said everything from driver health concerns and hours-of-service regulations to increased fuel efciency and changes in the length of haul are changing the way they operate.

Weve evolved because we had to. If you arent willing to change, you wont be successful.
Jimmy Haslam, chief executive ofcer of Pilot Flying J, while addressing attendees.

Hours of Service
Truckstop operators and carriers alike are waiting to see how upcom-

ing changes to the hours-of-service rule will affect them. Changes are slated to take effect on July 1, and will restrict how drivers can use the optional 34-hour restart to reset their weekly driving limits of 60 hours in seven days, or 70 hours in eight days. Drivers will be able to

use it only once every seven days, and it must include two periods from 1 a.m. to 5 a.m. The new regulation also requires drivers take a half-hour rest break before driving more than eight hours. Operators and trucking executives said the mandatory 1 a.m. to 5 a.m. rest periods could create parking challenges and additional trafc congestion as drivers hit the road at the beginning of rush hour. Due to a number of concerns, the American Trucking Associations is challenging the rule and asked the federal government to delay implementing changes until

18

March/April 2013

FOUNDATION UPDATE

three months after the groups current legal challenge ends. Were arguing the case on March 15. The compliance date is July 1, so that doesnt leave a lot of time for carriers or law enforcement to prepare if the court overturns or changes the rule, said Prasad Sharma, vice president and deputy chief counsel of American Trucking Associations, while addressing attendees at The NATSO Show. ATA anticipates that the court wouldnt issue its decision until late May or early June. Despite ATAs position that the delay would reduce confusion and unnecessary law enforcement training in the event that the rule changes, FMCSA denied the appeal.

Length of Haul
The average length of haul for carriers is changing, which is also shifting drivers needs. The average length of haul used to be 750 miles, now it is 500 miles and all of you make money from selling fuel to those people, said Bob Costello, chief economist at American Trucking Associations, during his keynote presentation at The NATSO Show. Costello said that shorter lengths of haul mean that most freight will not be converted to the railroad despite the railroads efforts to gain market share. Trucks and trains compete on a very, very limited basis. Truck freight is not going to be converted to the railroads if it doesnt go at least 500 miles and there are people out there who say it needs to go closer to 750, Costello said. For truckstop operators, Costello said one of the most important gures to look at is the number of miles being driven. Miles driven by large truckloads were down in 2012. I think that will pick up as the economy picks up, he said. Operators looking to benchmark their sales against the trucking industry should look at non-seasonally adjusted data, Costello said. The data reported is seasonally adjusted and takes into account weather, increased factory production, harvests, back-toschool sales However, it is harder to benchmark against that because Im talking about seasonally. You need to look at the non-seasonally adjusted dataand the trucking industrys miles, Costello said, adding that he releases those gures along with the seasonally adjusted data.

Fuel Efciency
In addition to shorter lengths of haul, carriers are becoming more fuel efcient due to diesel exhaust uid and new aftermarket equipment, such as trailer skirts. As a result, Jimmy Haslam, chief executive ofcer of Pilot Flying J, said, growing gallons may be a challenge. I dont know how much the pie is going to grow and I think it is going to shrink a little bit, he explained, adding that it is crucial to control costs. Haslam recommended his fellow operators focus on their niche. If you have one to two stores, what is your niche? Maybe youre in an oil eld area where things are growing quickly. It could be that you have an all-star restaurant or a great shop. Maybe youre in a state where you have gaming, he said. I think it is really important to nd your niche and determine what you do better than anyone else.

Driver Health
Chris Stephens, director of pricing for Bigg G Express, said driver health is a top priority for the carrier and he would like to see truckstops and travel plazas become more health conscious. The carrier holds weight-loss contests for drivers, giving cash prizes to those who lose the most weight in an eightweek period. We have an on-site exercise facility for our drivers. We have also changed out our vending machines to healthy food and beverage choices. We think that is a big issue for this industry, Stephens said, adding that the carrier would promote locations where drivers could exercise or walk outdoors if they wanted to. We do have drivers that will run and that may be something they could do in a designated area at a truckstop, he said.

Passenger Travel
Pete Pantusso, chief executive ofcer, American Bus Association, said bus travel is on the rise, which can result in increased business for truckstop and travel plaza operators. The bad economy over the last few years has been good for the bus community, he said. The industry has historically grown 5 to 7 percent a year. Pantusso said that when busses are out on the road, one of the things that attracts them to a travel plaza is passenger amenities. Whether it is a Burger King or Subway or clean restrooms or a maintenance shop that does small minor repairs, those are the things that appeal to them. They also like if you have easy access in and out of a major metropolitan area, Pantusso said. I
www.natso.com 19

CUSTOMERS
To better understand their customers,
TRUCKSTOP AND TRAVEL PLAZA OPERATORS ARE RELYING ON OLD-FASHIONED, FACE-TOFACE CUSTOMER SERVICE WHILE ALSO EMBRACING TECHNOLOGY TO INITIATE CONVERSATIONS AND ENGAGE WITH A CUSTOMER BASE THAT IS CONSTANTLY ON THE MOVE.

BY MINDY LONG

rom Facebook pages to smartphone apps, operators are staying in touch with professional drivers and the traveling public alike, and then greeting them with a smile when they walk through the door.

INSIDE THE STORE

Dan Alsaker, chief executive ofcer, Broadway Flying J Truck Stops, said, For us, we still embrace the good old fashioned way of interacting people with people. He added, We still nd it extremely important and gratifying
20 March/April 2013

to have full-service restaurants for example. You have to be a people person to be a waitress in a full-service restaurant or a fuel desk cashier because youre going to be talking to these folks or helping people solve a problem. Alsaker said ensuring employees interact well with customers starts at the top. We always believe it starts with leadership and it is showing and doing by example, he said. Prior to hiring, Broadway has management and mid-management candidates take a Kolbe testa skills-

Years ago when I was running a travel plaza, my friend Gordon showed me how to truly connect with the drivers... Gordon was always in the aisle with the drivers looking for ways to help them.
Darren Flitton, eet and truckstop manager for Sinclair Oil Corp.

assessment test developed by a woman named Kathy Kolbe. Alsaker said, It tells us if theyre the right t with our culture. Also, were looking for that human side of them. Are they regimented or do they have the exibility to take care of the person in need? To recognize employees who make a special connection with customers, Alsaker spotlights extra-mile stories that the company shares internally and often with the media. He explained, With our extra-mile stories, we continually remember that act of kindness that differentiates us from our competition. Darren Flitton, eet and truckstop manager for Sinclair Oil Corp., said there are a number of ways Sinclair employees connect with customers when theyre inside the location and added that customer service can boost sales (see related story on page 8). Our cashiers are fully trained to take care of the driver at the fuel desk with speed and accuracy and we get them out the door and on their way, but sometimes we wonder why the

merchandise sales do not follow the fuel sales, he said, adding that personalized attention from employees can make all the difference. Years ago when I was running a travel plaza, my friend Gordon showed me how to truly connect with the drivers. Gordon was always in the aisle with the drivers looking for ways to help them. Gordon would not just point to an aisle and go the other way, he took the driver to the item, Flitton said.

ON THE ROAD
A growing number of companies are using social media and technology to stay in touch with drivers in between their stops. Loves Travel Stops & Country Stores is using its Loves Connect mobile app, which has been downloaded 230,000 times to provide drivers with GPS-enabled store location information, offer real-time fuel pricing and route planning. Loves Connect app allows us to connect with drivers by providing them information they need on-the-

go, like location information, fuel pricing or loyalty account information, said Jerry Hamm, Loves corporate marketing manager of loyalty. We have also used focus groups and driver surveys to get feedback from drivers on how we can make their stops at Loves better and so we can better understand their needs. The app also allows drivers to share their thoughts using the anywhere, anytime customer feedback feature. This allows us to address customer service needs in a timely manner without drivers having to take the additional time to make a phone call to the customer service department. Hamm sees the app as a way to boost the customers overall experience and help garner repeat business. We are able to enhance our loyalty program through the app by providing real-time My Love Rewards loyalty account information and offer additional incentives to customer through our mobile Deal Alert coupons, which are pushed out directly to app users, he said.
www.natso.com 21

For us, we still embrace the good old fashioned way of interacting people with people...We still find it extremely important and gratifying to have full-service restaurants for example. You have to be a people person to be a waitress in a full-service restaurant...
Dan Alsaker, Chief Executive Ofcer, Broadway Flying J Truck Stops

CAT Scale Co. has an app that allows drivers to enter their location and nd their ve nearest CAT Scale locations. The app has been downloaded 10,000 times. Because we add locations often, it helps them in their route planning. It can also help them if theyre delivering in a new area theyre not familiar with, said Healther DeBaillie, marketing manager for Iowa 80 and CAT Scale Co. We did it to be helpful for the drivers. DeBaillie said it is important for operators to consider how they can make an app that is useful for drivers. If its not or you dont really have anything of value to put in the app, then I wouldnt spend the money to do it, she said adding that Iowa 80 doesnt plan to create an app for the truckstop side of its business.
22 March/April 2013

However, Iowa 80 Truckstop is connecting with drivers via Facebook. We get a lot of interaction on our Facebook pages. Social media seems to be the best way to reach drivers to pose a question or get their thoughts on something, DeBaillie said. You get a lot more eyes seeing it at one time versus just walking around and asking people questions in the truckstop. Before that drivers were on the road and there was no way to get to them. If you mailed them something it took a month to six weeks to get to them if they even saw it at all, DeBaillie said. She added, There is an expectation that companies with a large presence in any industry have a Facebook page and post something regularly. Regularly doesnt necessarily mean every

day. Maybe you post once a week, but make sure what youre posting is relevant, she explained. All forms of social media can allow an instant connection with customers. We can reach drivers in realtime and have two-way conversations with them on the spot, said Amanda Kuhlman, online communications specialist for Loves. We inform them on new store openings, new service offerings, new products and listen to their feedback while answering any questions or concerns they have. Social media also allows Loves to learn about its customers and connect with them on a personal level by listening to what they are talking about and what interests them, Kuhlman said. Kuhlman said social media can also keep drivers up-to-date on Loves locations during a crisis. For example, during Hurricane Sandy we provided drivers a heads up on locations that remained open during the storms and were very transparent on the standing of fuel supply at specic locations. The amount of positive feedback we received was outstanding; drivers appreciated being kept informed of what was happening and our honesty. A growing number of retailers are connecting with customers via mobile marketing. With more and more consumers using smart phones, companies can reach potential customers in a variety of ways. One of those ways is geofencinga marketing technique that allows advertisers to select a virtual fence around a certain geographic area and send customers an alert on their mobile device when they enter the area. Customers opt-in to the program and choose to share their location by turning on the GPS setting on their handheld device. I

KNOWLEDGE Ahead-of-the-Curve Experts

CONNECTIONS Good Advice from Fellow Operators

SOLUTIONS Great New Products and Services

INVEST IN YOUR TRUCKSTOP AND TRAVEL PLAZA BY ATTENDING THE NATSO SHOW.
www.natso.com 23

Register today! www.natsoshow.org

Cars, Carrots and Christian Faith in

GlenRio,
New mexico
Russells Truck and Travel Center 2 has it alla business built on Christian values, a one-in-a-million car museum, a family of owners skilled in grocery items and even a director of operations that sleeps on location. BY AMY TONER
other travel plaza and headquarters. They run all of these businesses with Christian values as the cornerstone. As Russell explained, We are a Christian company, valuing integrity, morality and treating people with respect. Our chapel is inside and is very nice. Our Christian faith is very important to the way we do business. They show their faith in many ways, such as encouraging donations from visitors to their car museum rather than charging an entrance fee. To date, the museum collection has amassed over $100,000 to feed the hungry in Amarillo. Russell said, One hundred percent of the donations received goes to feed the hungry. In addition to feeding the hungry, the car museum also attracts a lot of repeat business to the location. With the dream of starting the museum, Russells dad started collecting cars 30 years ago. When it became more than a dream, he got more aggressive with his collection. Russell says, The museum is an investment rather than a hobby. When my dad purchases a car, it is an investment. You might walk in and say, There are $2 million worth of cars collecting dust here, but it is actually an investment in our business. They continually change out the cars and even have vacationers who come in once or twice a year just to see what is different in the museum.

L
24

ocated 70 miles from Amarillo, Texas, on I-40, the Russell family added Russells Truck and Travel Center 2 to their portfolio of businesses, which includes grocery stores and another truckstop, two and a half years ago. Today, Mark Russell runs the location, his brothers run the grocery stores and his dad oversees their
March/April 2013

The car museum may feed a visitors intellectual soul, but the Russell family also literally feeds customers with their unique grocery items. With over 15 years in the grocery business, they know the right products for everyone and carry more grocery products than a typical c-store. The closest town is 16 miles away, and it doesnt have a grocery store. The closest grocery store is 36 miles away. Because of this, many local farmers and ranchers will come to us for daily items. They will call ahead and ask questions when looking for a particular item. They cater to those locals, but they also stock and price for truck drivers, avoiding what Russell called the typical high mark-up in other locations. Those highmarkups make it unaffordable for drivers to buy essentials. More and more drivers are making less and less and are having trouble just getting by. The family has owned grocery stores for 15 years. Russell explained, I was a district manager for our grocery chain that we had in the surrounding town. My forte has always been in grocery stores. He told Stop Watch it took him a bit to gure out the different needs of a truckstop versus a grocery store, but he quickly learned how

to best cater to RVers, truckers and the locals with their grocery items. For example, he has learned that they only need to carry one type of cake mix vs. the eight or nine in a grocery store. They also dont need to carry a lot of fresh fruit or vegetables, but they do carry some items such as potatoes, apples and seasonal fruit. They also have a lot of health and beauty line items, which has paid off. Ive had more and more people come up to me and tell me how appreciative they are of our grocery and health items, Russell shared. When asked whether he likes running grocery stores or truckstops better, Russell said, Probably working at the truckstop. You still have the thrill of business like in a grocery store because you see a lot of new people. It is a good thing Russell enjoys the truckstop business, because he lives right at the location in a mobile home during the week. It is a little different. Because we are out in the middle of nowhere, I live on the premise ve nights a week. Typically Ill work a 12-hour day but I am available 24 hours a day, because as I said, I am literally here, he said. It isnt atypical for me to do things at midnight. I start at 9 a.m. and am pretty much here until the restaurant closes at 9:30 p.m.

He shared with Stop Watch that while running the location is more fun, it is also more challenging in some ways because of the diversity of issues. There is always something new to tackle. Last night we had a problem with the projector in the museum where we show movies, so I had to spend several hours guring it out. This morning we had a truck run over a 12-foot long barrier. There is always something different going on. He tackles all of these challenges in a button-down shirt and tie. I want customers to be able to easily nd me and recognize me as a manager if there is an issue. I want to jump into problems as fast as I can, he said. Russell was quick to point out that he makes it all happen with a great staff. We have been blessed with very good help. We are fortunate to employ people that are educated in areas that they need to be, many of whom drive a fair distance to get there. It has been real pleasant. I

WHATS YOUR STORY? Being featured in Stop Watch is a wonderful way to promote your location and your employees. If you would like your truckstop or travel plaza to be the featured Member Prole in an upcoming issue of Stop Watch, please send an email to editor@natso.com.
www.natso.com 25

OPERATOR 2 OPERATOR

Who do you look up to in the industry and why?

ROBIN PUTHESSERIL, GREATER CHICAGO I-55 TRUCK STOP
I look up to other independent owner operators who are succeeding in their markets. There is such a uniqueness in what they do and they are really able to harness their individuality.

DAVE SHOEMAKER, SHOEMAKERS TRAVEL CENTER

Ive been fortunate to be in the middle of Bill Sapp (of Sapp Bros.) and Chuck Bosselman (of Bosselman Travel Center) and become good friends with them and know the people who work for them, like Don Quinn (of Sapp Bros.). We got to know each other from being in the same areaif someone is going through town theyll stop and say helloand then visiting with them at The NATSO Show.

ERNIE BRAME, KENLY 95 PETRO, KENLY, N.C.

Ive always looked up to the generation before me and the way they did things. The people before us laid the foundation. They were in on the ground oor. That is who I look up to. Weve had a chance to come along and rene what they started.

SCOTT PAULSON, TOMAHAWK AUTO TRUCK PLAZA

Both Pilot and Loves have earned everyones respect by knowing what they can do well, pursuing it and focusing on it.

WANT TO BE FEATURED IN THE NEXT OPERATOR 2 OPERATOR? Our next question to discuss is How are you involving your community to boost your brand with local customers? Submit your answers to Darren Schulte at dschulte@natso.com by April 17, 2013.
26 March/April 2013

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