The Convenience Top 101 and More

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Powered by CSPedia, the c-store industry’s online business intelligence database, CSP’s editors ranked the largest c-store chains by store count—owned/operated and franchised locations—in the United States and Canada.

But we didn’t stop at store counts. We also tapped CSPedia to recognize some of the industry’s most fascinating leaders in the retail arts: foodservice, green operations, social-media marketing, employee-focused, family-operated and more. Welcome to the c-store yearbook for 2014.

Growth Notes

No surprise here: 7-Eleven Inc. is at the top of the CSP Top 101 list, followed by Alimentation Couche-Tard and CST Brands. (For more on CST, see CSP’s exclusive cover story on the newly spun-off retail chain.)

Expect the big to get bigger. According to Dennis Ruben, executive managing director of Chicago-based NRC Realty & Capital Advisors LLC, large players such as 7-Eleven and Couche-Tard have been relatively quiet in 2013 but are looking to grow.

While execs from Dallas-based 7-Eleven Inc. declined comment on 2014 growth plans, company spokesperson Margaret Chabris shared the following with CSP: “7-Eleven Inc. plans to continue adding stores in the U.S. in 2014 through organic and acquisition growth with a disciplined approach designed to take advantage of opportunities we find.”

Another area of activity: retailers connected to master limited partnerships (MLP) such as Susser Petroleum Partners, Lehigh Gas Partners LP and Energy Transfer Partners (ETP) LP. Indeed, in November 2013, Susser picked up nearly 70 sites in Texas, while ETP grabbed Mid-Atlantic Convenience Stores’ 300-site network.

And following longer-term trends, major oil has shrugged off its retail ties while refi ner-marketers such as Marathon Petroleum and Valero are poised for a growth spurt. “I think they’ll maybe really ramp up again,” Ruben says of the latter.

“Over the three-year period of 2014 through 2016, Speedway currently plans to add approximately 60 to 65 new-build or rebuild stores each year, with the majority being new-build stores,” Speedway president Tony Kenney told CSP. “On average, Speedway plans to invest more than $300 million per year in capital expenditures over that same three-year time period.” There is no ideal mix of acquisitions vs. new builds, he says; it instead depends upon the value the investment would bring. “Our capital is focused on organic projects in our existing and new contiguous markets. We will always look at high-quality, opportunistic acquisitions.”

Beyond the Top 101 ranking, which tapers off with companies in the range of about 60 to 70 stores, Ruben expects a great deal of M&A activity among midsize operators. “These are generational companies,” he points out, with retirements for company elders looming in the distance. “Smaller guys have a harder and harder time competing with some of the bigger players.”

Hot spots in the industry’s growth geography: Florida, Texas and a “ridiculous level of interest in California,” says Ruben, with astronomical prices and multiples making those stores more valuable.

Late-Minute Maneuvers

CSP confirmed site counts for the entire Top 101 just before going to press, but of course the numbers are always in flux. Case in point: Several acquisitions took place as we were finalizing the list. They include:

• Western Refining: +237 (Northern Tier Energy/SuperAmerica)
• Susser Holdings (Stripes): +67 (Sac-NPac Stores Inc.)
• Alimentation Couche-Tard: +36 (Albuquerque Convenience & Retail, Publix)
• TravelCenters of America: +31 (Minit Mart LLC)

See Page 2 for the complete 101 list.

Download a pdf of the complete story below for numerous lists and details of the Top 101.

The Convenience Top 101: The List

The following ranking of the Top 101 Chains reflects combined company-operated and franchised store counts in the United States and Canada as of Nov. 15, 2013. It does not include licensed or dealer locations.

Up Next: Market Share by Fuel Brand

The Convenience Top 101: Market Share by Fuel Brand

Major oil may have shuttered most of its company-ops, but the names are still the biggest brands in fuel. According to figures from OPIS for the year ending Nov. 15, 2013, the top four by share of fuel volume are led by Shell Oil Products U.S. Source: OPIS

Popularity Contest

Who is the most popular in the c-store industry? Based on searches of CSPedia from Jan. 1, 2013, through Nov. 24, 2013, here are our most popular peeps:

Top 3 Most Searched Companies

Top 3 Most Viewed Company Records

Top 3 Most Searched People

Top 5 Licensors

Top 5 Franchisors

Up Next: The 'Greenovators'

The Convenience Top 101: 'Greenovators'

Whether building green, offering alternative fuels and/or revving up recycling, many c-store retailers are cleaning up their communities. Here are some of the most notable industry “greenovators.”

Kwik Trip Inc.

It’s full steam ahead for this LaCrosse, Wis.-based chain, a pioneer in retailing compressed natural gas (CNG). Joel Hirschboeck, alternative fuels superintendent for Kwik Trip, says the company is ready to add eight to 10 more CNG fueling sites to its 439-store network in 2014 after finishing 2013 with 26 total locations.

“We started looking at it holistically from a commercial-fuels perspective, where it makes sense,” he says. “We want to cover our operating footprint with the right locations to make sense for fleet activity. What are we focused on for 2014? Where are the gaps in coverage? Where do we expand the footprint a little and get improvement in coverage?

“It’s an extremely exciting industry to be a part of: late-breaking news about new technology, advancements, fleets converting over, who’s getting into the business.”

Kum & Go

This West Des Moines, Iowa-based operator of 427 sites is known as a leader in LEED, or Leadership in Energy & Environmental Design, an energy-efficient and environmentally friendly building standard. The chain has committed to building all new sites as candidates for LEED certification, with 66 certified locations so far and 16 under construction. Seven of the sites are gold LEED certified, the second-highest level achievable, with 34 certified silver.

According to Adam Hammes, Kum & Go sustainability manager, such green initiatives are “all about playing a positive role in the community. It’s part of the brand and who we are. We are committed tobeing a good neighbor.”

Beyond LEED, Kum & Go is expanding its alternative-fuels offer with two CNG sites in 2014 and is evaluating locations for Level III electric-vehicle charging stations.

“I want to be where I can make a difference,” Hammes says. “The best way to make a change is [to provide] an example to follow.”

Other Notable ‘Greenovators’:

• Thorntons Inc. Besides being a longtime retailer of E85, this Louisville, Ky.-based Top 101 chain is a past winner of CSP’s Environmental Stewardship award thanks to its LED canopy and cooler lighting,  recycling receptacles and green cleaning products.
• United Oil Co. In 2012, this Gardena, Calif.-based c-store operator and fuel distributor for Valero, ConocoPhillips and Shell installed solar panels on the canopy of its Cerritos, Calif., site. The Panasonic HIT Double panels are expected to supply 75% of the store and pumps’ annual energy demand.

Up Next: Foodservice Leaders

The Convenience Top 101: Foodservice

Food is a focus for many of the industry’s c-store retailers, but some operators have had a huge head start. Here are operators who have led the pack, followed by their signature offer.

Foodservice Leaders

Up Next: Employee Focus

The Convenience Top 101: Employee Focus

Employee ownership, extended health benefits, free fitness centers for employees: The c-store industry has a wealth of great companies to work for, with great benefits. Here are some of the best.

“QuikTrip exists so that employees can grow and succeed.”

Chester Cadieux II, founder of No. 15 QuikTrip Corp., Tulsa, Okla., named to Fortune’s list of 100 Best Companies to Work For in America for the past 11 years. Employees own nearly one-half of QuikTrip stock, and the company enjoys one of the lowest turnover rates in the industry.

“It’s not just a smart thing to do--it’s the right thing to do.”

Ari Haseotes, president and COO at No. 19 Cumberland Gulf Group, on the company’s 2013 decision to expand health-care coverage to 1,500 more employees, converting them from part-time to fulltime status, in advance of the Affordable Care Act.

“We try to do a lot to thank them for what they do for us.”

Bill Young, director of compensation, benefits and risk for No. 24 Sheetz Inc., which built its Center for Schwellness, a health-and-wellness facility available free of charge to employees. The company, which also is expanding health-care coverage for all employees, is routinely ranked among the best places to work in the states in which it does business.

“The feeling of teamwork has been stronger than ever since the announcement.”

Andrea Myers, president and great-granddaughter of the company founders of Kocolene Marketing, a Seymour, Ind.-based chain of 28 stores that established an employee stock ownership plan (ESOP) in 2010. Today, 47% of company stock is owned by employees.

Up Next: Big Givers

The Convenience Top 101: The Big Givers

As successful as these Top 101 retailers are, they recognize the individuals in the communities are largely responsible for their ongoing success. Perhaps as a result, many operators make it a central part of their business to give back to said communities through various charitable causes. Here’s just a small sampling of some of the philanthropic organizations these retailers support.

Giving Holiday Cheer

While there are certainly individuals in need all year long, the holidays are a special focus for many of these givers. Todd Jenney, CEO of Carmi, Ill.-based Huck’s Convenience Stores, says the company’s own Karing for Kids program—which raised nearly half a million dollars this year—started almost a decade ago with a grass-roots campaign at the store level to raise funds to provide local needy children with Christmas shopping excursions.

“Since then, we put in some corporate programs to really put it on steroids, so to speak,” he says. He was recently approached by a store employee who benefited from this program as a child. “Here’s an individual who went shopping with us as a young child and is now hopefully going to make a career with our organization.”

Other Givers to Services

• The Pantry (Kangaroo Express) raised nearly $2.7 million for Salute Our Troops in 2013.
• Alon Brands has raised significant funds for the USO, including a 2011 partnership with BIC Consumer Products USA to sell military-themed lighters and donate a portion to the organization.

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