What equipment are c-stores investing in to support beverage alcohol sales?
The countdown is on for Ontario licensed c-stores to get their ducks in a row, from reconfiguring their layouts to the installation of new equipment and fixtures.
McCowan Design & Manufacturing “is receiving an influx of inquiries regarding our offerings that support alcohol sales,” says Chris Soucie, director of sales and marketing at the Toronto-based provider of modular fixture solutions. “There’s a palpable buzz in the industry. The enthusiasm is evident in the conversations we're having with business owners and our corporate partners—they're clearly excited. Many see this as a prime opportunity to attract new customers to their stores.”
While there’s plenty of excitement for Sept. 5—when sales of alcoholic products open to the c-store sector—Soucie says retailers are being strategic about their investments.
“We’re observing cautious planning and moderate investments in fixtures, as this is an unknown market for Ontario,” he says. “The resounding challenge we hear is being ready in time, but our quick lead times on fixtures are solving that issues for clients.”
Investments being made by stores include four to six feet of new fixtures. Some locations are also planning to add McCowan’s pass-through box pay windows for sell through over night.
This is a product the company strongly recommends for 24-hour sites.
“Since stores cannot sell alcohol past 11 p.m., you either need to remove it from the shelves or face a significantly increased risk of security incidents with unsellable products remaining visible to late-night customers,” Soucie explains. “Consider the potential challenges—it's not a conversation you want to have with a customer who's been out partying all night.”
As for bigger store changes, he says “until the industry obtains concrete data on the impact of these changes in their stores, we don’t anticipate significant modifications to fixtures or layouts.”
“Keep it simple and stick to the basics,” advises Soucie. “There's no need to invest in over-designed displays and intricate solutions. Ensure product is displayed on clean, visible and durable shelving units. The durability is extremely important for the heavy bottles and cans in this category.”
Keeping things cool
Refrigeration providers are also seeing increased sales activity.
“Operators across Ontario have expressed a rapid expansion of demand for the infrastructure required to sell beer and wine in convenience stores,” says Rafay Murtaza, technical sales manager, controlled environments at Norbec. He says some stores having ordered “walk-in coolers and insulated metal panels on an emergency basis to quickly add these new products to their stores.”
While the sector could face supply chain issues related to coolers and other insulated metal panel products, Norbec’s new Insulated Metal Panel Manufacturing Plant in Strathroy, Ont. is scheduled to have its grand opening on Sept. 19. “This facility will enable Norbec to offer quick delivery of insulated metal panels, walk-in coolers and freezers to the Central and Western Canadian markets,” says Murtaza.
He suggests c-stores coordinate with suppliers early and order in advance. “Additionally, I would urge c-stores to dedicate adequate floor space, ideally 200 to 300 sq. ft., to make a statement with their new beverage alcohol products.”
The Solution Foodservice Group “has also seen an increase in requests for c-store refrigeration,” says Sandra MacInnis, head of sales – Eastern Canada for the Concord, Ont.-based company. “We recommend glass retail with rear walk-in access for easy restocking. Smaller operations are opting for retail merchandisers, usually double doors.”
In addition to taking up less space, MacInnis says upright refrigerated merchandisers or counter-height displays at point of sale also provide “more oversight [of staff], minimizing thefts.”
The foodservice connection
But just because some c-stores are set to sell alcohol, doesn’t mean they’re looking to develop restaurant-like foodservice, at least not yet.
“We’re seeing an uptick with quality HMR from pizza to rotisserie-style chicken, but not yet with seating areas,” says MacInnis. “The biggest challenges in delivering hot made-to-order foodstuff is with staffing and risks around food safety. While there is demand for this market, many c-store operators are reluctant to expand this segment given the peripheral expenses like workstations, hand sinks, prep areas, etc.”
“The opportunity to sell alcohol, however, is an easy segment to develop short term,” she says, with various leasing opportunities for refrigeration solutions available at The Solution Foodservice Group, including a rent-to-own concept.
Distex M&M, a Montreal-based distributor of commercial refrigeration brand New Air, has several models in its warehouse ready for Ontario c-stores. “Our well-planned inventory and logistics systems allow for us to ship quickly to different locations,” says Dao Riopel, chief visionary officer at Distex M&M.
She recommends New Air’s grab and go open merchandiser and/or the full-glass door merchandiser, noting “New Air is already a well-established brand in the commercial refrigeration sector across Canada.”
However, Riopel cautions the fulfillment of very large orders “can take up to four months for production and delivery.”
