Meet Yesway: It’s the latest brand to hit the convenience-store scene, with a growth trajectory that surprises even its execs.
The relatively young BW Gas & Convenience Holdings LLC—an affiliate of Beverly, Mass.-based Brookwood Financial Partners LLC, with ambitions to acquire upward of 1,000 c-stores in the next several years—unveiled its new c-store brand and company identity with the mantra “Say yes to convenience” in July.
And just like numerous other convenience retailers, Yesway plans to fit its locations with an updated exterior and interior design, an enhanced foodservice offering and expanded product assortment—all with a focus on “a fresh experience,” said Brian Trout, Yesway’s senior vice president of operations, in a news release. A loyalty program is also in the works, and fuel will be branded either Yesway or Cenex.
While specific details of Yesway’s foodservice plans and loyalty program have yet to be released, the company did say it would spend approximately $6.7 million to upgrade and remodel its entire portfolio. That portfolio is rolling out with 31 c-stores, all found in Iowa. (The company will be based in West Des Moines.)
But if things go as planned, the Yesway brand will quickly cross borders beyond the Hawkeye state.
Midwest Rally
The Yesway brand will hit the market once its 21-store acquisition deal with West Des Moines, Iowa-based Kum & Go, is complete. The deal is BW’s second acquisition since acquiring 10 Country Store sites in late 2015, and more deals are expected yet this year. The company’s plan is to acquire 100 to 140 locations in 2016.
In an exclusive interview with CSP, Thomas Trkla, Yesway’s chairman and CEO, says he was surprised by the availability of suitable sites for BW’s growth, and that he fields “a tremendous amount” of unsolicited calls from small operators who want to sell their stores.
“Our original strategy was to have five to six regions with 150 stores; we didn’t think we would be able to acquire that many in one region,” says Trkla. “I’m very surprised, and very confident we can have maybe the entire company in the expanded Midwest.”
That realm includes Iowa, Illinois, Wisconsin, Colorado and as far west as New Mexico.
BW’s focus has been squarely on what Trkla calls “B-minus” sites in rural communities that are operating but “need TLC.”
“We are first and foremost real-estate experts,” he says. “That’s where we have cut our teeth and been very successful over the past two decades. So that defines our strategy: finding stores we can improve, and then applying best practices.”
The key, says Trkla, is to have ubiquity: “We won’t be a 4,000-square-foot Wawa. We don’t want to spend $5 million on a 5,000-square-foot store.”
Building the Team
Yesway has also spent the better part of this year building up its management team, many of whom have extensive experience in convenience.
Shortly after the company revealed its new brand, Yesway announced it had hired Joe Petrowski, former CEO of Cumberland Farms Gulf Oil Group, as its senior adviser. Petrowski was also appointed as a member of Brookwood Financial’s executive committee.
“The impetus for consolidation in the convenience and fuel retailing business creates major opportunities,” Petrowski said in a news release. “In Brookwood, I found the individuals who saw the industry as I did, who had a keen understanding of the drivers of value creation and who were willing to commit capital to realizing that goal.”
Petrowski will work with Trout and Mark Daniels, Brookwood’s managing director, to help manage the firm’s growth, improve operations and implement the firm’s business plan.
“Joe is a true legend in the convenience and fuel retailing space, and I am honored to have him join the Yesway team,” Trkla said in the same release. “His proven track record, decades of experience and industry connections will be invaluable to me and the rest of the senior management team as we execute our strategy to build a portfolio of up to 1,000 c-stores in the next several years.”
Petrowski led Framingham, Mass.-based Cumberland Farms Gulf Oil Group from 2005 to 2013. After leaving the company, Petrowski founded Mercantor Partners, a private-equity group focused on downstream energy distribution and retail convenience.
Petrowski “has been a driving force behind the evolution of the c-store and fuel retail space for over a decade, and we will all benefit from his experience and wisdom,” said Trout.
Brookwood has hired many veterans of several major convenience-store chains (see below) to complete its management team, including executives from Kum & Go, Delek U.S., Southwest Convenience Stores, 7-Eleven, BP and The Pantry.
“Our objective is to build a world-class company,” says Trkla.
Familiar Faces
Yesway may be new to the convenience-store industry, but its team sure isn’t. Here’s a glance at recent hires who have a bevy of retail experience:
- Lisa Dodson: Dodson is pricebook manager for BW Gas & Convenience Holdings. She previously was a center-store pricing and assortment manager for Dahl’s Foods and a pricebook manager for Kum & Go LC.
- Kolby Jones: As regional director of acquisitions for BW, Jones is responsible for acquiring additional gas stations and c-stores in the Midwest. He once was a real-estate development representative for Kum & Go.
- Greg Penman: Penman also was hired as a regional director of acquisitions. His experience includes real-estate manager for Wal-Mart and real-estate project manager for Delek U.S. He began his career with BP, where he identified and executed real-estate development strategies.
- Tony Sparks: The new vice president of merchandising for BW, Sparks previously was vice president of marketing for Southwest Convenience Stores, director of marketing for Family Express and national category manager for 7-Eleven.
- Rebecca Teiken: Teiken is now the senior IT manager for BW. Previously, she was IT program manager for BP.
- Joe Petrowski: Petrowski was CEO of Cumberland Farms Gulf Oil Group from 2005 to 2013. He is now senior adviser for Yesway and a member of Brookwood Financial’s executive committee.
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