Bustling Times in Foodservice at GPM

RICHMOND, Va. — What hasn’t been going on at Richmond, Va.-based GPM Investments, which in the last year launched a new frozen flavor and chicken sandwich, worked on enhancing foodservice, expanded a loyalty program, extended a master supply agreement with Core-Mark and entered into a $1 billion real-estate agreement—and more.

Here are a few examples of happenings at the seventh-largest convenience-store chain in the United States, according to CSP’s 2021 Top 202 ranking of chains by store count.

GPM’s c-store brands include Fas Mart, Shore Stop, Scotchman, BreadBox, Young's, Li'l Cricket, Next Door Store, Village Pantry, Apple Market, Jiffi Stop, Admiral, Roadrunner Markets, Jiffy Food Marts, E-Z Mart, 1 Stop and TownStar.

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A fresh flavor at GPM c-stores, the Tangerango frozen beverage, rolled out in 823 c-stores carrying Frazil slushie machines. GPM introduced the flavor, a limited-time offer, to celebrate expansion of the machine to GPM stores, which now numbers more than 900 units.

The company also began focusing on a remodeling program with enhanced foodservice as a key feature.

“We believe we have significant embedded opportunities to optimize our store base and invest capital prudently for remodeling stores,” said Arie Kotler, chairman, president and CEO of ARKO Corp., parent company of GPM. The company identified 700 stores as candidates for remodeling and plans to spend an average of $1 million per store over the next three to five years.

GPM in May signed an extended 32-month master supply agreement with Core-Mark International Inc. as part of a consolidation of the retailer’s wholesalers and its ongoing growth strategy.

The deal boosts from 865 to 1,055 the number of GPM c-stores for which Core-Mark provides service. It will continue to be GPM’s largest supplier.

A new fried chicken filet sandwich hit the menu at 150 GPM locations last spring.

“It’s a fried crispy and juicy all-breast meat chicken filet with Southern homestyle breading on a bun with two slices of pickle,” said Ray Zeiher, senior category manager of foodservice at GPM.

The company’s fas Rewards loyalty program grew in May, when GPM doubled from 2% to 4% the maximum of what swiped cards can earn in loyalty points.

Customers can start redeeming rewards when they enroll and can earn 10 points for every $1 spent in the store and 5 points for each gallon of gas purchased. Points convert to an award of $1 in fas BUCKS or 5 cents off each gallon of fuel for up to 20 gallons. Since the program relaunched in November, there are nearly 100,000 new enrolled members.

Real-estate investment firm Oak Street Real Estate Capital LLC and GPM forged a deal in May where Oak Street agreed to buy and lease to GPM real estate associated with acquisitions of c-store brands and fueling stations.

Oak Street committed up to $1 billion to the program for a year whereby GPM will own and operate the related acquired businesses, and Oak Street will own the real estate and lease it to GPM.

Amid all this strategizing, GPM in May closed on the acquisition of 61 c-stores with gas stations in Michigan and Ohio operating under the ExpressStop banner.

The acquisition complements GPM’s existing 165 stores in Michigan and nine in Ohio.

“Michigan and Ohio are important geographies for us, and we believe that ExpressStop is a highly regarded brand there,” Kotler said. “We look forward to welcoming those associates to the GPM family while providing ExpressStop customers with the same great quality products and services they’re used to.”

Parent company ARKO Corp., in its first earnings call as a publicly listed U.S. company, reported “strong financial results in the midst of a challenging operating environment” for the 2020 fourth quarter and fiscal year ended Dec. 31, 2020.

New York-based Haymaker Acquisition Corp. II, a publicly traded special-purpose acquisition company (SPAC), and Arko Holdings Ltd., an Israeli public holding company with a controlling stake in GPM, completed a business combination in December 2020 and have combined under a new company, ARKO Corp.