cumberland farms mystery shop profile

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CSP August 2014 40 CSP August 2014 41 Audits for the 2014 Mystery Shop were conducted from April 24, 2014, to June 4, 2014. All audits were carried out between 11:30 a.m. and 7:30 p.m., any day of the week. Mystery shoppers completed a survey following each visit, with each response receiving equal value. What follows is the list of chains shopped, and how often each chain was visited during the mystery shop. Number of stores Number of shops Cumberland Farms 574 99 Kwik Trip 452 104 Maverik 264 87 Nice N Easy Grocery Shoppes 78 68 Pump N Pantry 17 24 Rutter’s 60 59 QuikTrip 685 121 Sheetz 466 98 Speedway 1487 91 Thorntons 172 86 CSP/Service Intelligence Mystery Shop [mystery shop] Cumberland Farms 95.0% Kwik Trip 94.6% Maverik 93.9% Nice N Easy Grocery Shoppes 93.6% Pump N Pantry 92.8% OVERALL PERFORMANCE BY BRAND For the first time, Cumberland Farms sits at the top of the list overall, edg- ing out four-time winner Kwik Trip by four-tenths of a point. Cumberland Farms transforms from an ’80s chain into an industry leader By Melissa Vonder Haar and Abbey Lewis || [email protected], [email protected] Photographs by Jarrod McCabe FOR THE TEAM BRANDS SHOPPED T alk about an upset! Had Vegas placed odds on the 10th annual CSP/Service Intelligence Mystery Shop, Cumberland Farms’ unseating of two-time defending champ Kwik Trip would have been as preposterous as the long-cursed Boston Red Sox winning the World Series before 2004. Much like its hometown team, the Framingham, Mass.-based chain readily admits it had not kept pace with the best of the pack. “Most of our stores were built in the ’80s and early ’90s. It had been nearly two decades since we did anything really big to our stores,” says Randy Boutell, a store manager of 25 years. Amid constant threats of takeovers, plus battling the universally declining spi- ral of cigarettes and gas, the Cumberland Farms of 10 years ago, despite its scale as the largest c-store chain in New England, was a midlevel performer in industrywide Open for Business: One of Cumberland’s newest stores, in Auburn, Mass., promotes fresh pizza and the price of milk at the entrance.

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Page 1: Cumberland Farms Mystery Shop Profile

C S P August 201440 C S P August 2014 41

Audits for the 2014 Mystery Shop were conducted from April 24, 2014, to June 4,

2014. All audits were carried out between 11:30 a.m. and 7:30 p.m., any day of

the week. Mystery shoppers completed a survey following each visit, with each

response receiving equal value. What follows is the list of chains shopped, and how

often each chain was visited during the mystery shop.

Number of stores

Number of shops

Cumberland Farms 574 99

Kwik Trip 452 104

Maverik 264 87

Nice N Easy Grocery Shoppes 78 68

Pump N Pantry 17 24

Rutter’s 60 59

QuikTrip 685 121

Sheetz 466 98

Speedway 1487 91

Thorntons 172 86

CSP/Service Intelligence Mystery Shop

[mystery shop]

Cumberland Farms 95.0%

Kwik Trip 94.6%

Maverik 93.9%

Nice N Easy Grocery Shoppes 93.6%

Pump N Pantry 92.8%

OVERALL PERFORMANCE BY BRAND

For the first time, Cumberland Farms sits at the top of the list overall, edg-ing out four-time winner Kwik Trip by four-tenths of a point.

Cumberland Farms transforms from an ’80s chain into an industry leaderBy Melissa Vonder Haar and Abbey Lewis || [email protected], [email protected]

Photographs by Jarrod McCabe

FOR THE TEAM

BRANDS SHOPPED

Talk about an upset!

Had Vegas placed odds on

the 10th annual CSP/Service

Intelligence Mystery Shop,

Cumberland Farms’ unseating

of two-time defending champ Kwik Trip

would have been as preposterous as the

long-cursed Boston Red Sox winning the

World Series before 2004.

Much like its hometown team, the

Framingham, Mass.-based chain readily

admits it had not kept pace with the best

of the pack.

“Most of our stores were built in the

’80s and early ’90s. It had been nearly two

decades since we did anything really big

to our stores,” says Randy Boutell, a store

manager of 25 years.

Amid constant threats of takeovers,

plus battling the universally declining spi-

ral of cigarettes and gas, the Cumberland

Farms of 10 years ago, despite its scale as

the largest c-store chain in New England,

was a midlevel performer in industrywide Open for Business: One ofCumberland’s newest stores, inAuburn, Mass., promotes fresh pizzaand the price of milk at the entrance.

Page 2: Cumberland Farms Mystery Shop Profile

C S P August 201442 C S P August 2014 43

MYSTERY SHOPPERS SAY ...

INTERIOR AND EXTERIOR CLEANLINESS

WERE THE PUMP ISLAND AND ITS PUMPS CLEAN?

WAS ALL EXTERIORSIGNAGE IN

GOOD CONDITION?

WAS THE RESTROOM CLEAN?

Kwik Trip 100%

Maverik 100%

QuikTrip 100%

Kwik Trip 100%

Maverik 100%

QuikTrip 100%

Pump N Pantry 100%

Rutter’s 94.5%

Cumberland Farms 93.8%

rankings such as the mystery

shop.

So what changed in 2014?

A conscious reset, not just in

operations, but also in culture.

With a new store prototype

that shifts attention from

tobacco to foodservice and a

genuine companywide philos-

ophy that puts associates first,

Cumberland is undergoing the

kind of transformation rarely

seen among larger chains.

“There’s a dramatic change

that’s felt from top to bottom,”

says vice president of market-

ing Gwen Forman. “People

get a bit of a high [when] you

know you’re going places.”

Boutell agrees. “It’s a whole

different business now,” he

says. “Seeing us at the top of

the awards list, instead of the

middle, it just shows what

we’ve achieved as a team over

the last five or six years.”

It was six years ago that

Ari Haseotes took the reins as president

of Cumberland Farms. While Haseotes

(who recently added the title of CEO of

Cumberland Gulf Group) set the pace,

for him, success begins and ends with the

Cumberland team. Were it just about him,

Haseotes would keep quiet.

“As a private company, we tend to

shy away from media attention,” he

says. “But frankly, I couldn’t pass up the

opportunity to showcase the great work

of our team. It feels really good to be

able to have them get some credit for the

tremendous work they do.”

The following is the story of

how one chain, long considered

standard and “in the box,” is

working to create a team-first

business culture that portends

an auspicious future.

The Power of PositivityChanging the philosophy of

a historic, family-run com-

pany—especially one of Cum-

berland’s size—is no easy task.

“We’re 75 years old,” says

customer service manager

Jamie Hill. “[But] five years ago,

[we recommitted ourselves] to

offering exceptional service.

And we’ve taken that direction.”

But before that, Cumber-

land thought first about its

5,550 workers in the stores.

“We’re trying to change our

culture to be team-centric for

them to believe in being cus-

tomer-centric,” Forman says.

That means emphasizing

the positive. Boutell recalls that, in his

earlier years with the company, scoring

23 out of 25 points on an internal mys-

tery shop would prompt superiors to

fixate on the two points missed. “That

was just the culture and how things

WERE ALL THE LIGHTSYOU SAW IN THE STORE

WORKING?

Nice N Easy 100%

Rutter’s 100%

Speedway 96.7%

“One pump island had dirt caked on the island. The diesel pumps were filthy.”

“Someone’s undergarments were left in the stall.”

“A nice consideration ... was two immaculate water bowls for canines.”

were done,” he says.

It wasn’t so much a negative focus

but a different way of looking at things,

Haseotes says: “Our people for so long

were conditioned to fix problems. They’d

see something wrong and want to attack it.

“It’s less due to any desire to be nega-

tive, and more to fix an issue. But when

you do that, and you don’t ever talk about

the positive, it really comes across that

you only point out the problems.”

That’s something Cumberland is

working to change. “Now it’s, ‘Wow, you

got 23 out of 25! Great job!’ ” Boutell says.

“There’s definitely been a shift. We’re in a

much more positive direction.”

The philosophy plays out in the store.

When there is a problem or employee

error, it is tackled on the spot. “When

we do see something negative, we don’t

leave the store without addressing it,” says

Haseotes. “We try to treat the staff with

dignity and respect.”

Haseotes learned this lesson years ago

when he was running a store. Some senior

executives visited his location and, upon

seeing he was out of a certain grade of milk,

they reported Haseotes to his superiors.

“I felt somewhat humiliated,” he

recalls. “Had the executive asked me, they

would have found out that the ordering

system wasn’t working; I’d followed it to

a tee. But I wasn’t given the opportunity

to have that exchange.”

Such a scenario is unlikely to play out

under the current atmosphere. “Now,”

says Boutell, “when people make mis-

takes, there’s a little jabbing, but they real-

ize it’s a fun environment and it’s OK to

do something wrong from time to time.

Throw it in the garbage and move on. It’s

about getting people to the right level and

not worrying about the mistakes they

make along the way.”

Though Boutell describes this shift

as one that started at the top, Haseotes is

quick to give credit to the store associates,

the shareholders and the board of direc-

tors. “It’s more about our people than me,”

Haseotes says. “My role is to help establish

goals and give them the tools and the

resources needed to make it happen.”

Attracting and Keeping TalentCorporate aphorisms are trite unless

manifested at the store level. That is the

beauty of the mystery shop: Your worst

employee can sink your best intention.

It should come as no surprise, then,

that Haseotes lists Cumberland’s team

members as the company’s biggest focus

moving forward, a focus that extends

Pie Times: Nikole Nault prepares pizzas as Abby Smith and Josh Magorian

assist customers at the register.

Chillin’: A young customer customizes his frozen beverage.

Page 3: Cumberland Farms Mystery Shop Profile

C S P August 2014 45

New research was added this year to address that today’s c-stores have embraced foodservice, and that to be taken seriously they must be able to compete against QSRs. A fundamental staple of QSRs is the combo meal. Yet while some offered combos acrossall stores, others scored only in the 30th percentile.

FOOD COMBO DEALS

Kwik Trip 100%

Maverik 97.7%

Cumberland Farms 93.9%

Maverik 100%

Kwik Trip 99.0%

Cumberland Farms 96.8%

DID THIS LOCATION HAVE FOOD COMBO DEALS?

WAS THERE ANYPROMOTIONAL MATERIAL FOR

THE FOOD COMBO DEALS IN THE STORE (E.G., SIGNAGE, EMPLOYEES

WEARING BUTTONS, ETC.)?

beyond just competitive compensation,

encapsulating training, benefits and

engagement as well.

“We believe in the philosophy that, as

the company wins, our team members

should win,” Haseotes says. “We’re look-

ing for discretionary effort out of our

people, and we think performance at that

very high level should allow them to par-

ticipate in the prosperity of the company.”

Or as senior vice president of retail

operations Dave Merriam puts it, “For

us, it’s all about, ‘Happy employees make

happy customers.’ ”

Some of the bigger incen-

tives in recent years include

monthly bonuses based off

internal mystery-shop per-

formance (something Boutell

calls “free money” for his team)

and an unheard-of policy that

gives even part-time employ-

ees the benefit of paid time off.

These kinds of perks have

made it easier to recruit solid

employees—and retain them.

“With all the competition

in town, it’s not just about

getting the right employees,

but keeping them,” Boutell says. “While

everyone’s paying the same rate, we have

so many more benefits in place now that

help keep them.”

“We put money where our mouth is,”

Merriam says. In 2013 alone, Cumber-

land paid out about $10 million in store

incentives. “Depending on the stores,

team members can earn a substantial

increase in their hourly rate, so they’ve

got a lot of skin in the game.”

Then came the big news: While

much of the retailing world lambasted

Obamacare—more formally known as

the Affordable Care Act—and aggres-

sively pared down employees’ hours,

Cumberland Farms embraced it.

In spring 2013, Haseotes went on

record to say that Cumberland would

expand its health benefits package.

“That’s something not too many

people on the street have done,” says

Boutell. “A lot of retailers went the other

direction; they cut everybody back. When

you’re making $8.50 an hour, losing one

shift is a big deal.”

And the employees have taken note:

In 2013, 80% of Cumberland’s employees

Coffee Talk: Nikole Nault changes an urn and catches up with a friend over coffee.

Page 4: Cumberland Farms Mystery Shop Profile

C S P August 2014 47

DAIRY COOLER

Rutter’s 100%

Speedway 98.9%

Cumberland Farms 96.0%

Cumberland Farms 100%

Kwik Trip 100%

Pump N Pantry 100%

Rutter’s 100%

Sheetz 100%

WERE THE PRODUCTS INTHE DAIRY COOLER WITHIN THEIR EXPIRATION DATE?

DID THIS LOCATION HAVE A PROCEDURE FOR TAKING THE DAIRY COOLER TEMPERATURE?

WAS THE TEMPERATURE WITHIN THE RANGE OF 32°F TO 41°F (0°C TO 5°C)?

were considered full time, with 20% part

time; today it’s closer to half and half, with

about 35% of employees now receiving

health-care benefits, Merriam says.

Beyond the compensation is the com-

munication hierarchy. Perhaps hearken-

ing to Haseotes’ earlier experiences as a

store manager, store associates are given

multiple opportunities to share their per-

spectives and ideas to better the company.

“A lot of things are learned from our

people. They’re the ones actually working

the stores,” says Paul Freeman, vice presi-

dent of retail operations. “We encourage

our people to tell us like it is.”

A major outlet for this communica-

tion has been the Cumberland Farms blog.

Started several years ago, the blog features

posts by Haseotes and other top execu-

tives on a variety of issues. Also, employees

across all levels can start a conversation on

a given issue through the blog’s comments.

And they have.

“It’s a great tool to find out quickly if

there is something that’s affecting a lot of

the team members out there,” Haseotes says.

“People have challenged me directly on the

blog. We’re not afraid to cover the good and

the bad in those blog conversations.”

One team member, for example,

brought up the issue of leaves of absence

and the effect they have on incentive pay.

Haseotes recalls that, via blog comments,

several associates voiced dissatisfaction

with the policy and thoughtfully broke

down why it didn’t make sense.

“I remember reading it and going,

‘Boy, we’re really doing that?’ ” he says.

“We discussed it as a team and agreed

it had to change. There have been many

examples of this happening, where we’ve

revisited a policy or procedure and made a

change for the better [based on commen-

tary].” Store associates are also encouraged

to share feedback face to face.

“After a new store is opened, the man-

agement team does a kind of post-audit,”

says Freeman. “We poll the employees

about what we could make better or what

we could make easier.”

Ideas big and small are considered,

something as simple as changing the size

of the wastebaskets in the coffee area

because customers tend to dump liquid

into those receptacles. It’s a little thing

that will save the employees at Cumber-

land’s newest Auburn, Mass., store a big

mess, and the kind of insight Haseotes

calls “invaluable” to operations.

It also shows employees at every level

that their views are important. “It’s great

when my associates are not only heard,”

Boutell says, “but also see that change.”

This communication is so valued at

Cumberland that the personal cellphone

numbers of every executive, including

Haseotes, are made available to every

employee.

“I can tell you that, in six years, you

could count on one hand the amount of

calls I’ve received directly from someone in

Kwik Trip 96.2%

Cumberland Farms 90.9%

Pump N Pantry 90.9%

Rutter’s 88.1%

Sheetz 82.7%

On a Roll: Nikole Nault tests the temperature of the roller dogs.

Page 5: Cumberland Farms Mystery Shop Profile

C S P August 201448

FOUNTAIN DRINKS

WERE ALL FLAVORS ON THE FOUNTAIN DRINK MACHINE

OPERATIONAL?

Rutter’s 100%

Cumberland Farms 99.0%

Nice N Easy 98.5%

MYSTERY SHOPPERS SAY ...

“Both members of the crew are excellent at multitasking. Between

customer runs, they were cleaning the counters, as well as other chores.”

“Sometimes you will have drops of drinks on the counters, but this

store stays on top of it. The counters were not sticky. Very nice.”

a store,” Haseotes says, chuckling. “And in

at least two of those occasions, it was a bet

that I wouldn’t actually answer or return

the call.”

“We don’t just do it to feel good,” Mer-

riam says of the communication push.

“It’s functional for us to feel what’s going

on in the stores and get back to the stores.

We want team members to have access to

management, and we do what we feel we

can to communicate our direction to the

company.”

More than that, it goes back to the

optimism-first philosophy. “If you treat

people like they make a difference and are

responsible, they actually will make a dif-

ference and be responsible,” Haseotes says.

Whether with benefits you can see on

paper (such as bonuses and health care) or

the less tactile benefit of a respectful work

environment, these efforts are paying off.

“In the last several years, we’ve seen

a significant drop in turnover; people

are getting stickier,” Merriam says. The

company this year and last has had only

a 10% turnover rate for its approximately

600 store managers. “If you have stability

there, and you’ve got good store manag-

ers who attract and retain good people,

you’re always going to have good customer

service. You’re not in a constant training

mode and can rectify problems that arise.”

Haseotes credits the employee-centric

programs for the lower turnover rate, as

well as the company’s improved ranking—

and promises there’s more on the horizon.

“That philosophy of hard work, per-

severance and humility is all a part of the

family’s heritage,” he says. “It very much

applies to the philosophy that says we focus

on hard work and efforts of our people that

are meeting and greeting the customer

every day. If we take care of them, the busi-

ness will thrive.”

CUMBERLAND FARMS BY THE NUMBERSFounded: 1938

Headquarters: Framingham, Mass.

Company Mascot: “Cumby” the Cow

States of Operation: Connecticut,

Delaware, Florida, Maine, Massachu-

setts, New Hampshire, New Jersey,

New York, Pennsylvania, Rhode Island,

Vermont

Store Count: 574

Percentage of Legacy vs. “New

Format” Stores: 35%-40% new,

60%-65% legacy

Average Store Size:

2,500-4,000 square feet

Store Associates: 7,000 (3,000 part

time, 4,000 full time)

Store Managers: 600

Average Monthly Fuel Sales:

62 million gallons

Sources: CSPedia, Cumberland Farms

Page 6: Cumberland Farms Mystery Shop Profile

C S P August 201450

COFFEE

WAS THE COFFEE MACHINE AND AREA CLEAN?

WAS ALL THE COFFEE EQUIPMENT OPERATIONAL?

DID THE LOCATION HAVE A WORKING THERMOMETERTO TEST THE TEMPERATURE

OF THE COFFEE?

Pump N Pantry 100%

Rutter’s 94.9%

Maverik 92.0%

Pump N Pantry 100%

Maverik 98.9%

Speedway 98.9%

Cumberland Farms 94.9%

Speedway 91.1%

Kwik Trip 90.4%

Managing and MeasuringAkin to any successful franchise, Haseotes

views Cumberland’s executive team as the

behind-the-scenes managers, looking to

the data and stats to ensure the team’s

success at the field (or store) level.

“We stand true to the philosophy that

what gets measures gets managed,” he

says. “We hold ourselves responsible.”

Based on Haseotes’ previous com-

ments, it comes as no surprise that

employee engagement ranks as one of

the most crucial stats being tracked by

Cumberland’s data gurus.

“Engagement is the most meaning-

ful part of what I’m measuring,” says

Haseotes. “I hold myself and all of the

leadership team here equally accountable.

A huge chunk of how I’m measured is

engagement.”

When employee engagement is high, it

pays out for Haseotes and the leadership

team, as well as the store associates: It

was through engagement surveys that

bigger issues (such as health care) and

smaller but important issues (such as an

employee discount card) are fleshed out

and brought to fruition.

“These are programs that cost us

millions of dollars on an annual basis,

but our team members have said they’re

very important to them, and we listen,”

Haseotes says. “We hear they appreciate

it and have seen improvements in our

engagement levels.”

Cumberland Farms believes these

improvements to employee morale have

had a direct effect on the consumer expe-

rience. “If you invest in employees, they’re

happier, more proficient at their jobs and

deliver service that makes the custom-

ers happier,” says Forman. “You can have

the best marketing [strategies], but the

customer experience is where the rubber

meets the road, and the impression is cre-

ated when the customer and employee

interact in the store.”

It’s a truth the data backs up, evident

in Cumberland’s impressive mystery-

shop scores, along with its own internal

metrics. Besides twice-monthly com-

pany mystery shops of every location,

in which customer service manager Hill

says 12 different questions are measured,

there are also mystery audits by area sales

managers and regional managers to cover

food safety and operational standards an

everyday guest might not notice.

Embracing the best of 21st century

tools, Cumberland is now leveraging tech-

nology to encourage its consumers to share

feedback, such as a new “GSAT” online sur-

vey for guest satisfaction that mirrors the

questions asked in internal mystery shops.

Merriam says that as many as 7,000

GSAT surveys have been filled out in

FoodserviceFaves

We polled Cumberland’s team on

their favorite snacks from the com-

pany’s revamped foodservice pro-

gram. Their top picks include:

▶ Ari Haseotes, CEO: “I love our

frozen Chill Zone beverages. Prob-

ably the flavor I like most is Sucka

Punch.”

▶ Paul Freeman, vice president

of retail operations: “I really like

our breakfast pizzas. They’re al-

most as good as my wife’s!”

▶ Randy Boutell, store manager:

“The new cheese pretzels are fabu-

lous. I dip them in a little marinara

sauce.”

▶ David Merriam, senior vice

president of retail operations:

“My daily favorite is our line of fruit

cups, whether it be strawberries,

grapes or mixed fruit. The serv-

ing size is perfect for a refreshing

morning or afternoon snack. The

product is fresh all of the time and

keeps you coming back for more.”

▶ Jamie Hill, customer service

manager: “The mac-and-cheese

bites bring me back to eating mac

and cheese as a kid, but better:

The crunch of the breading and

then the gooey goodness in the

middle hits it out of the park.”

Page 7: Cumberland Farms Mystery Shop Profile

C S P August 201452

SANDWICH COOLER

WERE THE SANDWICHES WITHIN THEIR

EXPIRATION DATE?

DID THE SANDWICHES LOOK APPEALING (FRESH AND

ATTRACTIVELY PRESENTED)?

Rutter’s 100%

QuikTrip 99.1%

Kwik Trip 99.0%

Cumberland Farms 100%

Kwik Trip 100%

Nice N Easy 100%

QuikTrip 100%

“I was very impressed with the sandwich cooler and the amount and variety of sandwiches available. They also had salads, fruit, cheeses, wraps, yogurt, pasta and macaroni salad.”

the past three months, with links on gas

receipts and QR code promotions direct-

ing customers to the website.

“If the mystery shopping is coming

back high in greetings but we don’t see

that in customer data, we’re not measur-

ing the right thing,” Forman says. “And we

want to be really clear about measuring

things that truly impact the customer

experience. In order to balance that pro-

cedure, we go to the customer and ask

them what they think.”

These metrics help the company

gauge the modern customer, as well as

the bigger picture over time, extending

from larger issues of performance to the

value of a simple hello.

“Is it important to guests, or do they

just not want to be bothered?” Hill says.

“We took a pulse from our guest satisfac-

tion survey [on] how important it is to

be greeted in any retail establishment. In

my opinion, it was important, but opin-

ions vary; 85% of guests expressed it was

important or extremely important. We

brought that information to the field.”

From 2011 to 2013 (when the “greet-

ing” statistics were shared), Cumberland

Farms went from having 17% of its

customers describe store associates as

“completely” knowing and greeting them

to 33%, Forman says. There’s certainly

room for improvement, but “the key is

that it’s doubling. It says to me we’re mak-

ing good progress there.”

Perhaps unlike a sports team, Cum-

berland also collects stats on its off-the-

field executives. “Just as we do mystery

shops and consumer surveys in the stores,

we have a whole bunch of people who

have internal customers,” says Haseotes.

“Every department is dealing with

another department, the field staff or the

stores, so we give our ‘internal custom-

ers’ the chance to effectively do a mystery

shop or evaluation of every department.”

These measurements, dubbed “succeed

together” surveys, are conducted through-

out the year to evaluate how various teams

within the company are providing service

to their “internal customers.”

“To me, it’s only fair,” Haseotes says.

“We’ve put a lot of emphasis, even a lot

of compensation, on the stores’ ability to

deliver to the consumer. We want to do

the same thing internally.”

A Whole New BallgameThese measurements have proven all the

more vital as Cumberland Farms has

embarked into the unchartered territory

of foodservice.

“Five years ago, if you ever told me I’d

be selling mozzarella sticks, I never would

have believed you,” muses Boutell. “Not at

Cumberland Farms. I never saw it coming.”

MYSTERY SHOPPERS SAY ...

Chew on This: The addition and consistent execution of foodservice has contributed to Cumberland’s success.

Page 8: Cumberland Farms Mystery Shop Profile

C S P August 201454

EMPLOYEE FOCUS

HOW LONG DID YOUWAIT IN LINE?

DID THE CASHIER GREET YOU?

Pump N Pantry 93.7%

Rutter’s 90.8%

Maverik 88.5%

Rutter’s 89.0%

Kwik Trip 88.1%

Pump N Pantry 85.7%

Kwik Trip 98.8%

Cumberland Farms 95.0%

Sheetz 92.5%

DID THE CASHIERMAKE YOU FEEL LIKE AVALUED CUSTOMER?

Cumberland Farms is far from alone

in this transition. As gas and cigarette

sales continue to decline, foodservice has

become something of a beacon of hope

for the convenience channel. There’s a

reason this year’s mystery shop exten-

sively tracked foodservice operations: So

vital to the industry’s future, it’s an area

in which many retailers—Cumberland

included—have failed in the past.

“People would ask how long I was

going to ‘try’ foodservice,” Haseotes

says. “My answer was that we’re going

to do this until we make it work. That

mindset, I think, has helped people to

understand there’s no going back.

“When you take that approach, it says

to everybody, ‘Forget about trying to

prove how it’s not going to work; we’re

not going there,’ ” he continues. “We’re

going to make it work because the alter-

native is a grim one for us as an industry.”

Make it work they have, scoring

above average in every one of this year’s

foodservice-centric mystery shop sec-

tions and, in some cases, outscoring

long-established foodservice retailers

such as Kwik Trip and Sheetz.

The importance of foodservice is all

the more apparent when you walk into

newer stores, which dedicate substantial

square footage and in-store advertis-

ing to a foodservice program that now

includes a full-scale pizza program and

made-to-order sandwiches.

To say the Cumberland Farms team

has changed the game would be an

understatement. Shifting from a tradi-

tional gas- and tobacco-centric retailer

to a quality foodservice operator is not

asking employees to learn a new style of

play—it’s a new sport altogether, per-

haps more akin to asking a football team

to try its hand at marching band.

“Initially, it can be a shock to some of the

team members,” Haseotes says of the move

from a traditional legacy store to a new,

foodservice-focused location. “The amount

of work and the pace is markedly different.”

However, the difference has organi-

cally fostered the kind of team play being

emphasized throughout the company

under Haseotes’ leadership. Merriam

points out that, while older stores needed

(at most) just two associates on the clock

Munchies: David Merriam (left), Ari Haseotes and Gwen Forman take a snack break.

Page 9: Cumberland Farms Mystery Shop Profile

C S P August 201456 C S P August 2014 57

Kwik Trip 92.8%

Pump N Pantry 91.7%

Rutter’s 90.4%

Cumberland Farms 100%

Kwik Trip 100%

Maverik 100%

Nice N Easy 100%

Pump N Pantry 100%

QuikTrip 100%

Sheetz 100%

Speedway 100%

WOULD YOU RECOMMEND THIS STORE TO OTHERS?

WERE ALL ON-DUTY EMPLOYEES WELL GROOMED?

at any given time, a foodservice program

requires a team in the truest sense.

“When working in those stores, along-

side three, four, maybe five people,” he

says, “there’s more of a team effort.”

As a member of such a team, Boutell

says the challenge has been one the

majority has thrived on, marking an

improvement from the “old days.”

“We’ve found that people like to stay

busy; the go-getters love this job, and they

have a lot of fun with it,” he says. “It’s not

the old-school job, sitting at a register or

refilling the milk. Those days are gone.”

Instead, associates resemble a restless

crew, communicating continuously with

each other, checking off tasks, sometimes

switching from the register to restocking

the condiment bar and cleaning up the

forecourt area. They’re all positions of

equal importance to the endgame.

“It starts with the clean pumps,”

says Boutell. “We sell a lot of gasoline.

If your pumps are filthy and the trash

is overflowing, people aren’t going to

come in to get food.”

As challenging as this brave new world

is, it’s one that has improved Cumber-

land Farm’s bottom line and, surprisingly,

the store’s turnover rates. Turnover for

hourly employees is less than half of what

it was 10 years ago.

“Ultimately, we’ve seen that [the new-

format] stores have been able to have

more longevity on their staff,” Haseotes

says, estimating that roughly 35% to 40%

of Cumberland Farms’ current locations

fall under the “new format” description

and that it’s “only a matter of time” before

100% of its legacy locations are retrofit-

ted to the new prototype.

But why? Yes, as Boutell says, it’s a

more fun and rewarding team experience

for “go-getters.” Perhaps the truth comes

down to a familiar concept for any sports

fan: People like playing for a winner.

“Team members accept the intensity

in exchange for being able to participate

on a high-performing team and knowing

that they are looked at as the clear choice

for the local market,” Haseotes says of

the new format stores. “That means a

lot to people. Nobody wants to play for

a losing team.”

“[They’re working hard] not because

we’re paying them to do it or a mystery

shopper is coming in the door: They’re

proud of working for Cumberland

Farms,” Forman says. “That pride wasn’t

as strong in the past.”

It’s that pride that Haseotes describes

as the most rewarding part of his job.

Beyond mystery-shop accolades, beyond

other awards, beyond even the bottom

line, it’s this positive shift, which begins

and ends with his team members, that has

Haseotes optimistic about the company’s

future.

“I have so much pride and confi-

dence in my team,” he says. “When I’ve

extended a hand, they’ve returned it

with a firm handshake.

“When the team members have made

major commitments and investments

in their personal efforts, we have in turn

sought anywhere and everywhere we can to

make investments back into what it means

to be on the Cumberland Farm team.” n

—Additional reporting by Angel Abcede

Meet Cumby’s Newest “Baby”: Want a glimpse of Cumberland’s latest store prototype? Head to www.cspnet.com/CumbyFirsthand for editor Melissa Vonder Haar’s firsthand account of the company’s Auburn, Mass., location.

Page 10: Cumberland Farms Mystery Shop Profile

C S P August 201458

T his year Service Intelligence took

advantage of the latest trends in

mobile data collection to com-

plete our annual petroleum-convenience

benchmarking study with CSP.

Thrilled with the results, we wanted to

give you a look at these trends, and some

insights into how you can adopt them

to measure your performance and drive

improvement across your locations.

Trend: Crowd-SourcedMystery ShoppingBusiness Goal: Collect feedback about

in-store performance

How It Works: Crowd-sourced mys-

tery shopping sends an open call to a large

database of potential customers, notifying

them of a survey to complete the next time

they visit a location. It is unlike traditional

mystery shopping, for which professional,

trained shoppers are assigned specific

shops, locations and due dates.

When the customers finish their

shop, they open an application on their

phone or tablet and answer a few ques-

tions about their experience. Companies

can use this opportunity to collect feed-

back about their in-store experience and

customer service levels.

The benefi ts are many:

▶ Cost-Effective: Crowd-sourced

mystery shopping targets individuals

who are already patronizing your loca-

tions and therefore require less incentive

for completion. The survey is shorter

and does not require editing or proofi ng,

making it a cost-effective way to gather

key information about your in-store

performance on an ad-hoc basis.

▶ Relevant Feedback: While a

standard mystery shopper is a profes-

sional shopper completing an assign-

ment, crowd-sourced mystery shopping

gives you access to a large database of

consumers, likely to be in your target

market. So the feedback received is

more a picture of your average customer

experience vs. specifi c feedback from a

trained shopper looking only for certain

standards.

Take the following example. The

question “Did the cashier greet you?”

was on both the 2013 and 2014 surveys.

The results, however, are very different.

Tulsa, Okla.-based QuikTrip, for exam-

ple, scored a 96% in the 2013 mystery

shop. Yet, based on the crowd-source

model of 2014, its score fell to 88.8%.

A similar decline was found at Sheetz.

Last year’s mystery shop gave the Penn-

sylvania retailer 99%, while this year’s

crowd-sourced score was 92.5%

Why the drop? And which one is

more representative of the chain’s true

performance?

When performing a standard mys-

tery shop, all shoppers are provided

training on standards and criteria on

how to respond to each question. This

is different from crowd-sourced mys-

tery shopping, in which respondents

answer based on their interpretations of

their experience. The lower scores in the

crowd-sourced model may suggest that

while technical standards are being met,

untrained customers—and remember,

these are your shoppers—have higher

expectations from you.

▶ Big Picture: Due to the lower cost

and larger database available, you can

collect a large number of responses in a

relatively short time, yielding data points

across multiple experiences instead of just

Making the Most of Mobile Trends

While technical standards

are being met, untrained

customers have higher

expectations from you.

CAMERON WATT is president and CEO of In-Touch Insight Systems. Reach him [email protected].

[mystery shop]

Shop Talk: Crowd-sourced mystery shopping allows for a personal interpretation of a store experience.

Page 11: Cumberland Farms Mystery Shop Profile

C S P August 201460

one mystery shop per month. This also

gives you the opportunity to ask opinion-

based questions (including Net Promoter

Score) and pick up on trends sooner.

For instance, in this year’s crowd-

sourced study, we collected 71% of

assignments within the first five days of

launching the study, and 91% in the first

week. In comparison, it took us roughly

six weeks to collect the information.

Among other benefits we see in crowd-

sourced surveys is the ability for retailers to

change questions frequently without rais-

ing the costs. And, in an age of Facebook,

Pinterest and Twitter, the crowd-sourced

approach embraces the positive qualities

of social media feedback, while offering

companies structured, qualitative data

regarding their brand.

Trend: Mobile AuditingBusiness Goal: Measure execution of

standards, flag and ensure opportunities

are resolved, identify training needs and

operational follow-up required.

How It Works: Performing a mobile

audit is not the newest trend in retail

management, but the software available

to support mobile auditing is improving

enough to have a significant effect on

your business.

Mobile auditing draws on mobile

technology to complete and submit

audits. This is sometimes called “forms

automation” because it applies to check-

lists and other data collection in addi-

tion to audits. Some solutions also allow

for aggregation and reporting of the

information collected. As an evolution

of pen, paper and data input, mobile

data capture decreases processing time,

and it may offer the ability to create and

send reports with minimal effort.

In the past, mobile data collection was

an enterprise-level IT decision, requiring

setup costs and a lot of internal resources.

This is still true for complex systems

with notifications, reporting and other

business improvement features. Forms

automation, however, is now available

on a very cost-effective basis, though it

comes only with aggregation and report-

ing features.

With advancements in mobile tech-

nology, there is a growing trend towards

Software as a Service (SaaS) applications

targeted at mobile use. The next genera-

tion of mobile audit software will be much

more affordable and provide benefits not

available in a form automation engine.

Features in an easy-to-setup SaaS

mobile auditing software should allow

businesses to set triggers and notifica-

tions when issues are found, assign and

address questions around follow-up,

and report not just on issues and resolu-

tion but also the organization’s ability to

address them. Put simply, the software

should track performance and help

improve performance.

▶ Benefits Without the Bucks: New mobile auditing software allows

programs and organizations to be set

up without the need for internal IT and

lengthy customization.

▶ Improve Productivity: It reduces

not only the time it takes to manually

enter data, but also the time to get value

from the data collected. With improved

reporting, triggers, notifications and col-

laboration features built right in, newer

mobile audit software can automate

recurring processes, prioritize informa-

tion and allow users to address what’s

most important to them, without having

to dig around to find it.

▶ Improved Adoption: Newer

applications hitting the market seem to

be designed with users in mind, with

better-looking interfaces, intuitive work

flows and other user-driven features.

Employees may actually enjoy using the

software and see the direct benefits in

their roles.

▶ Better-Run Operations: Through

the use of annotated photography, blog-

like comment strings and other features,

issues can be identified and tracked

through to resolution. Benchmarking

features will ensure that the team being

measured focuses on improving.

Final ThoughtWhen you are looking at the current

ways you measure your operations

(covert, overt or external feedback),

pause and ask if mobile technology and

software may have something to offer.

Is it time to let go of an old method and

move toward something that can pro-

vide more value? n

Software SolutionFinally, there is software that al-lows you to find, fix and report on the operational compliance issues across your organization without having to go through a large en-terprise software buy.

OpsMatrix is an affordable so-lution with no setup fees or inter-nal IT resourcing required to get started. It knows who you are and where you are, and it gives you the tools in your palm to be more ef-fective with any of your operation-al compliance audits or checklists. It also has excellent reporting and aggregation features.

Check out OpsMatrix.com for a demonstration and free trial.