2008 - Greater Houston Retailers Cooperative Association, Inc.

Greater Houston Retailers Cooperative Association, Inc
Chronicle
Texas Secretary of State:
Hearing the GHRA Pro-Business Message
Year 2008
By: Steve Koebele
Austin, Texas – On Thursday,
September 18, the State of Texas
conducted a swearing-in ceremony of the
new Texas Secretary of State, Esperanza
“Hope” Andrade, in the State Capitol
Building. Delivering the oath of office
in the House Chamber, Governor Rick
Perry said, “Hope’s dedicated public
service and business savvy have made
her an indispensable asset to the state of
Texas.” He added, “I look forward to
working with her to continue to make
Texas the greatest and most prosperous
state in the nation.”
In addition to serving as the chief
business liaison for Governor Rick
Perry, Secretary of State Hope Andrade
has many official duties: administering
elections, publishing government rules
and regulations, managing the repository
for official and business records, and
providing counsel to the Governor.
Working as a successful businesswoman
before taking her office, Secretary
Andrade experienced first-hand how to
run a small business. Accordingly,
GHRA Board members anticipate
traveling to Austin in the coming weeks
to meet with Secretary Andrade and
express the business challenges and
opportunities of GHRA members. That
meeting will include communications by
the GHRA to appropriate legislators and
government offices, including concerns
regarding gas pump mandates, taxes, and
hurricane planning.
members of the
GHRA Board
hosted then-
Secretary of State
Phil Wilson in the
GHRA Board
Room.
“On behalf of our
membership
throughout the
Houston area,” said
Zulfiqar Dhuka,
President of GHRA,
“it is important to
showcase our
collective business President Zulfiqar Dhuka and former Texas Secretary Wilson
success, but also
directly discuss our economic and
operating concerns with leaders of Texas
government.” GHRA Vice President
Iqbal Manji, Sr. added, “we value our
warm friendship with Governor Perry
and Secretary Wilson, gentlemen who
have worked toward positive community
and business achievements.”
Secretary Wilson talked about the Texas
Business
Portal
(http://business.texasonline.com/) and
the on-line business application process,
officially called the “Consolidated
Business Application.” The State of
Texas developed this process to make it
easier to open convenience stores and
other retail businesses. The web-based
application provides information about
licenses, permits, and registrations that
are required by state agencies to operate
a business in Texas. Specifically asking
for input from the GHRA, Secretary
Wilson asked for the GHRA to give him
comments and feedback on the
experience of our membership in using
the on-line Consolidated Business
The directors briefed Secretary Wilson
on GHRA’s mission and services,
including education offerings for
members. Secretary Wilson remarked,
“I applaud the jobs and opportunities that
your association helps to create in
Texas.” He added, “by providing
effective association benefits, the GHRA
is helping both its members and the State
of Texas.” Secretary Wilson learned
more about convenience store business
operations, potential antitrust activity by
competitors, and government oversight
concerns. President Dhuka thanked
Secretary Wilson for traveling to
Houston, delivering his comments to the
Board, and learning more about the
members of the GHRA.
The GHRA and our aligned Texas trade
associations will expand the
development of coalition relationships
with government leaders, state agencies,
and other business associations. The
GHRA Board is optimistic about
achieving success in advancing the
business interests of all GHRA members.
The GHRA Board seeks to maintain
forward momentum with the Office of
the Governor and Secretary of State. For
example, on Wednesday, May 21, Application.
The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives. 1

Annual General
Body Meeting 2008
By: Irfan Patel
The year 2007 was another productive
year for the Greater Houston Retailers’
Cooperative Association, Inc. As
required by the By-laws of a cooperative
association, an annual general body
meeting was held on March 11, 2008. In
light of this meeting, several events took
place, the most important being the
presentation of the financial statements
by the treasurer. The meeting was
attended by 371 member-store
representatives, in the presence of the
Election Committee for GHRA: Mrs.
Shenila Momin, Chairperson, Mr.
Zulfiqar Umetiya, and Mr. Shoukat
Mohammed. In connection, a few
members of the Independent Financial
Committee for GHRA, and Dr. Amirali
Popatia of the Southwest Council of the
Untied States were also present. In this
article, the flow of the meeting will be
explained.
The meeting started with the National
Anthem and then a welcome address by
the President: Karim Dhukani, in which
he touched on several issues. The
president highlighted the strengths of the
association and its initiatives and
endeavors, which included safety
measures programs, captive insurance
initiatives, branding programs and
advertisement/marketing revenue
initiatives. In addition, the Association’s
support toward initiatives led by the
Left to right: Iqbal Manji, Kaiser Kasimali, Zulfiqar Dhuka, Karim Maknojia, Karim Dhukani,
Aziz Maredia, Nasruddin Ali, Amir Dosani, Shoukatali Marediya, Nizar Mohammed, Akbar R.
Momin and Hamid Gilani
Economic Planning Board, Interfaith
Ministries, Crime Stopper Program, Red
Cross, and City of Houston was
acknowledged. In light of the upcoming
expiration of the tenures of the President
and two other directors, the President
concluded his address by highlighting
the core achievements, initiatives, and
outlooks of the association in the year
2007, and from a futuristic viewpoint he
added the new leadership will take
charge even better of all opportunities
and challenges yet to come this way. The
next speaker on stage was the Southwest
Council President-Dr. Amirali Popatia.
Dr. Popatia started his address with a
thank you note to the GHRA for all
efforts for community development. To
explain such efforts, is beyond the scope
of this article.
The next speaker on stage was the
GHRA Treasurer: Akbar R. Momin, who
started his address by acknowledging the
efforts of the Independent Financial
Committee. The Treasurer then,
explained the Balance Sheet and Income
Statement for the year 2007. Mrs.
Shenila Momin took the stage and
explained the election results in which it
was declared there were 6 Open Seats: 3
directors elected without contest, and the
other 3 open seats will be filled by the
Board.
The Master of Ceremony and Director:
Kaiser Kasimali, presented growth
statistics of the last few years.
Furthermore, he discussed new products,
services, and programs which are now
being introduced or pursued by the
GHRA. A few of such initiatives are as
follows: Icelandic Glacial Water, Pre
Pro- a transaction processing company,
coffee programs, and branding and
advertisement initiatives. Closing
remarks were finally made by the Senior
Vice-President of the GHRA-Nasruddin
Ali. In connection, the Senior Vice-
President thanked all GHRA members
and staff for their support and hard work.
The meeting ended with a question and
answer session in which members were
allowed to ask questions based on any
GHRA operations which included
vendor issues, rebate issues, and
financial statement clarifications. This
was the flow of the Annual General
Body Meeting 2008.
In this photo: GHRA Members seen listening to the presentation at the Annual General Body Meeting
The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives. 2

Opportunities in the
Coffee Industry
By: Kaiser Kasimali,
GHRA Honorary Secretary
It’s breakfast time and I am sipping on
my morning coffee while writing this
article. Coffee is the first thing I drink
when I wake up in the morning, along
with the other 108 million Americans
nationwide (nacsonline). The notion of
the morning cup of coffee has never
really been about “just something that
you drink,” but rather an indication of a
habit for most Americans. For some,
coffee acts as the morning punch to kickstart
your day, while for others it carries
the idea that their cup will aid them in
enhancing work performance for the day.
Along with this, the majority of morning
commuters have the habit of consuming
a breakfast food, like doughnuts for
example, along with their morning cup
to hold their appetites through to
lunchtime. Bottom line for the coffee
consumer is that: We need a betterroasted,
aromatic coffee in the
morning.
According to the National Association of
Convenience Stores, roughly 18.3% of
the total cups of coffee purchased for
consumption in the year 2005 were
bought at a convenience store. In 2006
alone, convenience stores sold more than
$5.7 billion in coffee nationwide, which
comes to an average sale of $40,000 per
store (nacsonline). So my question to all
our GHRA member stores is: Are you
selling that much coffee in your
individual stores
The US economy is in a slump and we
have all started to feel the pinch. Even
the Big Coffee Chains are shutting down
stores to make sure that only the stores
that are profitable exist. On one side,
convenience stores have less competition
as far as coffee is concerned, but on the
other side the consumers are spending
less. Consumers are looking for
bargains even when it comes to pricing
good quality coffee. Big fast food chain
stores are now serving coffee at a
competitive price.
Lets convert this economy slump factor
to our advantage and start thinking about
what an individual convenience store can
do to increase their coffee sales. For
starters, we all need to change the coffee
station image at our convenience stores
in order to gain sales from these big
coffee chain stores that are closing
down. It is once again time to think
outside the box to set ourselves apart
from our competitors. These fast-food
chain stores may have burgers to serve in
their menu, but they do not offer
gasoline, a variety of soda pops and the
convenience of making a one-stop-shop
for the basic necessities of life. We are
ahead of the game but let us not give our
competitors a chance to enjoy a bigger
slice of the pie.
We at GHRA have yearly contracts with
a few of the elite coffee vendors. In
working with one of our vendors of your
choice, start the change if you believe
that you can increase coffee sales in your
store. These
vendors will
not only assist
you by
providing good
quality coffee,
but will also
consult with
you in making
sure that you all
can enjoy
loyalty from
our coffee
drinkers. We
need repeat
business and
thus repeat
customers.
And now, as I
finish the last few sips of my morning
coffee, I leave you with this final
thought. We should all believe in selling
a lot more coffee this spring and make
sure to retain the increased customer
base and maintain it for the New Year
and beyond.
nacsonline:
http://www.nacsonline.com/NACS/News/FactShee
ts/Pages/Coffee.aspx
Secure the Future of
Your Family with an
Estate Plan
By: Faisal Kajani, Attorney-At-Law
As a small business owner, your life is
typically full of chaos. Every day is
different and filled with new challenges.
Planning for what will happen to your
family and your business after your
death is probably the last thing on your
mind. However, this is one of the most
important things you can do for your
family.
If you are a small business owner, and
you die, what happens Your failure to
have a proper estate plan in place could
end up destroying much of the hard work
you spent during your lifetime building
your business and your wealth, while
throwing the lives of your loved ones
into turmoil. Without an estate plan, all
sorts of problems can arise upon your
death or incapacitation, including the
following:
• Your business might have to be
shut down if no one knows how
to run it, what to do, who your
important contacts are, what
accounts you have and so forth.
• You will not be able to control
who will inherit your assets.
• You will not be able to control
who should act as a guardian
for your minor children.
• You will not be able to control
who will be making medical
and financial decisions for you
if you are incapacitated.
As a business owner, it is likely that a
significant portion of your wealth
(including your family’s source of
The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives.
3

income after your death) is tied up in the
family’s business. The success of your
estate plan will depend on a proper
transition of the business to the next
generation or a sale to someone outside
the family for a fair price. Either result
takes years of preparation and planning.
As a result, it is never too early to start
planning for what will happen to your
business and your family when you are
no longer alive.
An estate plan is a plan of action for how
you want your assets distributed and
loved ones cared for should you pass
away. The main parts of your estate plan
include the following:
1. A Will or a Living Trust. In a will
you state who you want to inherit
your assets and name a guardian
to care for your young children
should something happen to you
and the other parent. Also, if you
desire to leave specific assets to
certain individuals or charitable
organizations, you can express
these wishes in a will. If you die
without a will, a court will have to
decide, based on state law, who
will inherit your assets. This could
lead to a result that is contrary to
your wishes and will create
problems and expenses due to
probate laws, state laws, and
court-appointed strangers making
family decisions. A living trust is
a separate entity that you create to
control what happens to your
assets. Since the trust owns your
assets, the probate process can be
avoided upon death.
2. Life Insurance. Not all small
businesses are cash cows. Many
contain no value once the owner
is gone. If this is the case, how
will your family survive One
solution is life insurance. Having
adequate life insurance will
enable your loved ones to have
enough money to buy a home, pay
for a wedding, go to college, and
pay debts.
3. Buy-Sell Agreements. This type
of agreement is especially
necessary when several
people/partners own your
business. Without this type of
agreement, your loved ones may
get stuck owning a business they
don’t want and can’t sell, or your
partners may get stuck with
partners (your family members)
they didn’t expect. This type of
agreement can require that upon
certain conditions (like the death
of a partner/shareholder), the
parties to the agreement must sell
their shares to the other parties at
a fair market price.
4. Health Care Directives; Financial
Power of Attorney. Writing out
your wishes for health care can
protect you if you become unable
to make medical decisions for
yourself. You can also give
someone you trust the power to
make medical decisions for you if
you are unable to do so. Also,
with a power of attorney for
finances, you can give a trusted
individual the authority to handle
your finances and property if you
become incapacitated and unable
to handle your own affairs. This
person will be able to do things
such as manage your assets,
access your records, or pay bills.
5. Minimizing the Estate Tax. One
of the most important parts of the
estate planning process is
minimizing the estate tax hit for
your heirs. This estate tax (also
known as the “death tax”) is
currently as high as 45% and is a
charge levied on the deceased’s
entire estate, regardless of how it
is disbursed. It is a tax imposed on
the transfer of assets, including a
business, from a deceased person
to his or her heirs. While married
individuals are generally allowed
to leave their financial holdings to
their spouse free of estate tax,
when the surviving spouse dies,
his or her heirs could face a huge
tax bill if a properly planned
estate plan is not in place.
6. Gifting. This is a method
available to help you decrease
your tax burden and reduce the
size of your estate. The annual gift
exclusion allows gifts of cash or
assets of up to $12,000 per
person/recipient per year, to be
free of federal gift taxation.
7. Protect Your Children’s Property.
It is a good idea to name an adult
to manage any money and
property your minor children may
inherit from you. This can be the
same person as the personal
guardian you name in your will.
8. File Beneficiary Forms. If you
name a beneficiary for bank
accounts and retirement plans,
these accounts generally become
“payable on death” to your
beneficiary and allows the funds
to skip the probate process. Also,
in almost all states, you can
register your stocks, bonds, or
brokerage accounts to transfer to
your beneficiary upon your death.
9. Succession Plan. As a small
business owner, you will need a
plan in place so that your heirs
know how to either run things
without you or sell the business.
What the business owns, owes,
important contacts, bank account
information, and so forth must be
laid out in a clear manner. If you
want a particular family member
to run or own the business, you
need to discuss this with that
person and teach him or her what
they need to know.
10. Choose Your Executor. Settling
an estate is a complex process that
often spans many months.
Choosing a trustworthy executor
or personal representative who is
knowledgeable and will be
available to settle your estate is
extremely important for you and
for the security of your loved
ones.
11. Store Your Documents. Your
attorney-in-fact and/or your
executor (the person you choose
in your will to administer your
property after you die) will
probably need access to the
following documents:
• Will
• Insurance Policies
• Certificates for Stocks, Bonds,
Annuities
• Information on Bank Accounts,
Mutual Funds, and Safe Deposit
Boxes
• Trusts
The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives.
4

• Real Estate Deeds
• Information on Retirement Plans
• Information on Debts, Credit
Cards, Mortgages, Loans,
Utilities, Taxes
It is imperative to start your estate
planning early. The later you start
implementing an estate plan, the closer
your estate may come to costly tax
consequences. A qualified estate
planning attorney can help you examine
your estate and determine which
techniques or methods of reducing or
transferring your estate might be helpful
or appropriate to help you meet your
goals.
Faisal Kajani
Kajani and Associates, P.C.
Telephone: (713) 777-7727
10 Ways to Get
Yourself Out Of
Debt
By: Economic Planning Board (EPB),
Southwest Council for USA
Getting out of debt will usually take you
much longer than it took you to get into
it. Stay calm and be patient. You should
review the simple steps below and
contact your local EPB for further
assistance.
1. Be Committed. The first step you
and all decision makers in the
family must take is to make a firm
commitment to get out of debt. If
everyone is on board, recovery
becomes easier and shorter.
2. Track your spending regularly. This
can really help you save money.
Simply record all expenses that you
incur every month. This exercise
will also help you identify areas
where you can cut back.
3. Then, plan to systematically cut
down on your expenses.
a. First review your unnecessary
regular consumption expenses.
Consider simple things first: how
much would you save if you did
not have that extra soda for a
dollar each day Perhaps you
could shift from a monthly to a
daily membership on your health
club. You could consider shifting
your multiple phone plans to a
single plan that includes landlines,
Internet, TV and mobile phones.
Remember: be frugal and prudent,
but do not do it at the cost of your
health or your education.
Everything else should be up for
review.
b. Next review your larger planned
consumption expenditures and see
what can be deferred. Delay
buying the new TV or buy a used
one. Use extra savings to pay off
a car or furniture loan.
c. Third, review your planned
investment expenditures. For
instance, review your insurance.
There may be scope to switch out
of expensive life insurance into
cheaper term-life policies.
by reducing interest rates or
extending the life of the loan to
lower monthly payments.
6. Use only cash for all your daily
expenses including food, groceries,
and gas. Not only will this serve as a
physical reminder of the money you
have left for the month, but will also
help you think twice before
spending.
7. Consider ways to increase your
income. Perhaps someone in the
family can take a second job or ask
for more hours at work.
8. Prioritize Debt. The financial rule is
to pay off debts with the highest
interest rates first then work down
but some experts say it is best to
tackle debts one at a time and pay
off the ones with the smallest
balances first to give yourself a
sense of accomplishment.
9. Pay yourself first. Before you pay
anyone else set aside 10% of your
net income and put it away in
savings. Then live off the rest. If
you have debt, take this 10% and
pay off your debt.
10. Seek advice from a free debt
counseling service such as National
Debtline or the Consumer Credit
Counseling Service.
Getting out of debt will take you much
longer than it took you to get into it. Stay
calm and be patient. You are not alone.
Millions of people in this country are in
the same boat you are. Follow the simple
steps laid out above and contact your
local EPB for further assistance.
4. Armed with information from the
above steps, it is now time to create
a budget for the family. But do not
make the budget too tight or else no
one will follow it. But do not go
over budget.
5. Finally, refinance your debt. The
ongoing credit crisis is adversely
impacting lending institutions.
Banks would rather charge you less
in interest and fees than have you
default. Most large firms are
working with borrowers to modify
loans to make them more affordable
Coping with the
Economic Downturn
By: Economic Planning Board (EPB,
Southwest Council for USA
The U.S. economy is experiencing a
severe slowdown, resulting from the
slump in housing and the freezing up of
credit markets. It is likely that the current
downturn will be longer than expected,
extending into 2009.
The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives.
5

Here are some measures you can take to
prepare for the ongoing slowdown:
1. Reduce personal expenses by
cutting back on unnecessary
expenditures, such as on
entertainment and avoid extravagant
living.
2. Keep liquid savings of at least six to
twelve months of living expenses.
This can be achieved by setting
aside a small percentage of your
monthly income in a savings
account.
3. Be proactive, not reactive. For
instance, if you have trouble
meeting mortgage or credit card
payments, contact the bank
immediately.
4. Evaluate what financial risks the
downturn poses for you, determine
in advance how you will tackle
them, and act according to your plan
if problems arise be they job losses,
sharp increases in debt payments or
large declines in business revenues
or stock market investments.
5. Those of you who are in jobs should
make yourselves invaluable at work.
Be willing to take on extra tasks and
complete projects on time. Keep
your resume and your list of
contacts up to date at all times.
Network with those who are in the
same profession to learn about what
opportunities are available. If you
are laid off, file immediately for
unemployment benefits.
6. Use both formal and informal
alliances as a strategy to manage the
downturn. For example, existing
alliances such as trade associations
can be leveraged to jointly negotiate
with vendors to cut inventory costs.
Additionally, employers can
collaborate with their employees to
come up with ways to help improve
sales and save costs.
Finally, reach out to the EPB for advice
and guidance. We have professionals
who can evaluate your situation and help
you identify solutions. Contact the EPB
help desk or council corner for
information.
Remember, slowdowns always open up
opportunities for those well positioned.
Therefore, prepare yourselves to be in a
strong financial condition so that you can
benefit from the opportunities when they
arise and from the upturn when it comes.
TABC Corner
Inspections by TABC Personnel
By: Stephen Jaffe
From time to time a TABC Agent or
TABC Auditor may visit your
establishment for the purpose of
conducting a routine inspection. This
does not mean your personnel have
committed any violations or TABC has
received complaints against your
establishment.
These visits are normally made to help
the establishment comply with the
TABC Code and to provide assistance.
One of the items we check for is the
display of the alcoholic beverage permit
or license as required by TABC Code
Sec. 11.04. The permit or license should
be prominently displayed. Most
permittees and licensees display the
permits and licenses on a wall near the
cashier’s area. This would tell the
general public and most specifically law
enforcement personnel that the
establishment does have a license or
permit to sell alcoholic beverages.
There are several different signs the
TABC Code requires permittees and
licensees to prominently display in their
establishments. They are:
can be easily seen by the public. Near
the front door or cash register is usually
the best location.
Weapons Signs – Section 11.041
requires these signs. These signs are blue
and white. They are meant to notify
someone if they are carrying a weapon
illegally (i.e. handgun without a license
to carry); they could be arrested if law
enforcement personnel catch them. The
blue and white signs are required for
licensees and permittees whose alcoholic
beverage sales are less than 50 % of
gross sales. These signs are available in
English and Spanish.
Health Risks Warning Sign – Section
11.042 requires this sign to be posted on
each restroom door. These signs inform
the public of the risks of consuming
alcoholic beverages during pregnancy.
Previously, all on premises
establishments had received blue and
white warning signs (stickers), which
were to be posted in each restroom.
These stickers have been replaced by a
new sign, which is larger and is in black
and red lettering. The signs contain the
English and Spanish translation. As
noted, the signs should be posted on the
restroom doors.
All of these signs are meant to inform
the public about health and safety issues.
They are available at no charge and may
be obtained at the local TABC office.
Should you have any questions, please
contact The Texas Alcoholic Beverage
Commission at (713) 426-7900.
NATA
NEWS
HOUSTON, TX: OCTOBER 2008
NACS Show 2008 was held in Chicago,
IL from 4 th to 7 th October 2008. In total
about 62 Directors/Members from
different Trade Associations attended the
Show. All these members were offered
Complaint Sign - Section 5.53 and Rule
7. Do not rush into new commitments. 31.4 require this sign. The sign is posted
Be conservative in your approach. to inform the public of their right to discounted registration passes by NACS
Seek professional advice, ensure complain about the sale of alcoholic management. NATA Marketing &
proper contractual compliance and beverages at the establishment. This Promotions Committee members met
always be principled in all your sign is black and white and with many vendors. All these attendees
business dealings.
approximately 6 inches by 3-1/2 inches were invited to dinners by Midwest
and should be place in an area where it Business Alliance, PepsiCo, Frito Lay on
The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives.
6

different evenings. By attending this
Show, the members developed network
amongst them, attended various relevant
seminars and workshops to the industry
and became abreast with new products
and services.
NATA is pleased to inform all members
that Mr. Aziz Khoja has joined NATA as
its Chief Operating Officer (COO). Mr.
Khoja brings with him vast experience of
working in c-store industries and will
take NATA to its next height.
Gasoline Theft at
Convenience
Stores
When gas prices increase, many gasoline
retailers report an increase in gasoline
theft, or "drive-offs."
While most retailers now require
prepay, gasoline theft is still a $100
million-plus problem.
per gallon profit (at best), a retailer
would need to sell an extra 3,000
gallons to offset each $60 stolen.
• Gasoline theft tends to be a problem
in densely populated metropolitan
areas and near interstates where
there's a greater anonymity; in these
areas, retailers have reported losses
as much as $1,500 per store per
month. At stores in communities,
where everyone tends to know each
other, the problem generally is not
as significant.
• Gasoline theft is not a "Robin Hood"
crime of robbing the rich -- retailers
typically make pennies a gallon on
the sale of gasoline. In fact, they can
often make as much, or more, from
the sale of a 12 oz. cup of coffee
than a 12 gallon fill-up.
• The increase in gasoline theft is
directly related to price increases, as
opposed to high prices. Theft
generally increases every time
prices increase.
We are also proud to report about the
appointment of Mr. Karim W.
Dhukani, the ex President of Greater • Gasoline price volatility
Houston Retailers Cooperative traditionally leads to a significant
Association (G H R A) as one of the increase in gasoline theft, brought
Board of Directors of National on by misdirected consumer anger at
Association of Convenience Stores. Mr. higher prices. However, more
Dhukani will be serving on the NACS retailers now require prepay to stop
Member Services Board Committee
the problem that had gotten out of
control.
Given below is the extract of the Press • Nationwide, in 2007, gasoline theft
Release issued by NACS:
cost the industry $134 million, a
sharp decline from the $300 million
The profile of a typical gasoline
“NACS announced the election of four reported in 2005 and the $237
retail members to serve on its Board of million reported in 2004. (Theft
thief has evolved.
Directors. The new Board members totalled $122 million in 2006.) The
assumed their positions during the average loss per store was slightly • Typically, convenience stores can
NACS Board of Directors meeting on more than $1,000, and that figure is experience a few gasoline thefts a
October 7 during the NACS Show in conservative, since it is based on all week; however, when prices
Chicago. The NACS Show is ranked one convenience stores that sell increase, some stores see several gas
of the 50 largest annual tradeshows in gasoline, including those in states thefts a day. With retailers making a
the United States.
that mandate full-serve (New Jersey penny or two profit on the sale of
and Oregon) and stores in areas gasoline, a retailer needs to sell
where prepay in the norm, such as thousands of additional gallons of
The NACS retail members elected to
serve on the Board of Directors are:
California and many major gasoline just to make up for the loss.
metropolitan areas including New Oftentimes, it only takes one $50
York, Las Vegas, Chicago and theft a day to significantly erode --
• Brad Call, executive of marketing,
Atlanta. There is no way to or wipe out -- a retailer's daily
Maverik Inc. (North Salt Lake, UT) determine what the loss was at gasoline profits.
• Karim Dhukani, President and
stores that do not require prepay, but • Gasoline theft has always been an
CEO,W&J Investments Inc. (Spring,
the figure is likely double that or issue for the industry, and was often
TX)
more.
teenagers taking a few dollars of
• Fran Duskiewicz, senior executive
• The problem of gasoline theft would gasoline for a thrill. Today, the
vice president, Nice N Easy Grocery
have been even greater since problem of theft is across all
Shoppes Inc. (Canastota, NY)
September 2005 if so many retailers demographics, and the cars involved
• Warren Wilmot, CEO, 7-Eleven
hadn't begun to mandate prepay in with the crime are everything from
Stores Pty. Ltd. (Mt. Waverly,
after Hurricane Katrina when "junkers" to late-model SUVs.
Victoria, Australia) “
gasoline prices reached record levels • Just as the frequency of gasoline
of $3.06 per gallon, and when theft increases, so does the size of
The Executive Committee and Board of gasoline prices again topped $3 per the fill-up stolen. And with higher
Directors of NATA extend their heartiest gallon in every year since then.
prices, the amount lost from just one
congratulations to Mr. Karim Dhukani • With convenience stores reporting gasoline theft can easily top $100
and wish him every success in his future total motor fuels sales of $408.9 when an SUV in involved.
endeavors.
billion in 2007, that means that, on • A disturbing trend over the past few
average, one in every 3,300 fill-ups years is the emergence of gasoline
was gasoline theft. While this is not theft rings, in which specially
a "conga line" of theft, at two cents designed trucks are used to siphon
fuel from stations' underground
The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives.
7

storage tanks. Members of a theft
ring operating in Florida were
arrested in June 2005 for using
trucks that could siphon upwards of
1,000 gallons of fuel undetected.
Also in June 2005, a man in
Cottondale, AL, was severely
burned in an explosion while
allegedly trying to siphon hundreds
of gallons of fuel from a station.
The problem of gasoline theft can
be addressed by mandating
prepay -- but it comes at a cost.
• Requiring customers to prepay for
their fuel would virtually eliminate
the problem of gasoline theft.
However, consumers, wanting
convenience, will usually choose to
go to another retailer that does not
require prepay if one is close. Even
so, the problem of gasoline theft in
2006 led to a record number of
retailers mandating that customers
prepay for their fuel.
• The town of Mt. Pleasant, SC (a
suburb of Charleston), enacted an
ordinance in early 2004 that
mandates that all retailers require
prepay. Similar laws have since
been enacted in Twin Falls, ID (late
2004), Myrtle Beach, SC (July
2005), Bowling Green, KY (January
2006), Kansas City, MO (July 2006)
and Flower Mound, TX (Oct. 2006).
These are believed to be the only
laws of their kind in the United
States, although in some areas of the
country prepay is the norm,
especially California. Other areas of
the country have looked at
mandating prepay, including
Conway, AR; Fayetteville, NC;
Topeka, KS and Milwaukee. In
February 2008, British Columbia
became the first – and only –
Canadian province to enact such
restrictions.
• Besides the risk of losing customers,
retailers usually elect to require
prepay as a last resort, since
generally customers will
underestimate their gasoline
purchases because they don't want to
have to go back in the store for
change. Also, they tend to shop less
inside the store, where margins are
healthier, because they have already
been inside the store once to prepay
and find going back inside to be
inconvenient. There also are
concerns that mandating prepay
could lead to cash customers instead
paying by credit card at the pump to
avoid the inconvenience of prepay.
Since credit card fees are 2.5 to 3
percent, that means that retailers
could incur an additional 7 to
9 cents per gallon in fees when
gasoline is $3.00 per gallon.
• Usually, retailers will look at
requiring prepay for certain pumps
or certain hours before requiring it
all the time at a store.
Gasoline theft makes a bad
situation worse for retailers.
• Retailers are being hit hard by the
higher gasoline prices. During
periods of price increases, retailers'
wholesale costs rise faster than they
can recover them at the pump so
profit margins are down
significantly. NACS reports that
gasoline margins in 2007 were 5.2
percent, the lowest level since 1983,
and much of the reason for declining
fuel margins is price volatility for
gasoline.
• Because theft is typically linked to
elevated prices, gasoline theft
usually hits retailers when the value
of that stolen property is at an alltime
high.
• In addition to reduced profit margins
on gasoline, more customers pay for
their gasoline by credit card
(approximately 60 to 70 percent of
gasoline customers in 2007). The
processing fees for credit cards (as
much as 3 percent) further shrink
already reduced margins to the point
where retailers often make less per
gallon than the credit card
company.
Gasoline theft also negatively
impacts consumers.
• Law-abiding customers must pay
the cost of the theft in higher prices.
• Some drive-offs leave the gas island
at unsafe speeds to avoid being
caught, creating a more dangerous
environment.
• An increase in the incidence of
gasoline theft makes more retailers
consider mandating prepay, which
consumers do not prefer to have as
their only option. If more areas
mandate prepay, it will be one less
product available to consumers on
the "honor system" where they can
obtain a product before they pay for
it.
What do stores do to stop gasoline
theft Technology may play a role.
• Low-tech solutions can be effective.
Simply greeting all customers --
whether by intercom or in person --
can be effective. This takes away the
feeling of anonymity.
• Technologies like the patented
program developed by Pump-on
LLC largely protect the customer's
convenience and still ensures that
theft is eliminated. With this
program, cash customers use their
driver's licenses (where basic
identification information is read) at
the pump to authorize dispensing.
As of January 2007, a number of
retailers have committed to work to
further develop this program,
including Sheetz, Wawa, RaceTrac
and QuikTrip. In fact, QuikTrip has
been using this type of program to
great success in a number of cities.
If customers fill up and fail to pay,
their names are turned over to
police. In Tulsa and Kansas City,
gasoline theft was "reduced to a
trickle," QuikTrip reports.
www.nacsonline.com
Posted: April 1, 2008
Updated: April 30, 2008 21:51 EST
MEMBERS
CORNER
"What’s on your
mind”
ASK GHRA Board of
Directors. We will
publish answers to all
members’ questions
here in this SECTION.
The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives.
8

Coffee Corner
An industry update provided by: Global
Coffee Company
Profits from coffee sales continue to
increase as the coffee culture grows
throughout the U.S. In the prior year, the
coffee market was valued at $44 billion
and surpassed the soft drink industry for
the first time as the most popular
beverage after water. Based on a recent
study, the coffee market will grow to an
estimated $59 billion by 2012. The most
recent industry reports note the
following:
‣ Americans consume 400 million cups
of coffee per day making the United
States the leading consumer of coffee
in the world.
‣ Over 50% of Americans over 18 years
of age drink coffee every day. This
represents over 150 million daily
drinkers.
‣ 30 million American adults drink
specialty coffee beverages daily, which
includes cappuccino and frozen/iced
coffee beverages.
‣ 65% of all coffee is consumed during
breakfast hours, 30% between meals,
and the remaining 5% with other
meals.
‣ Among coffee drinkers, the average
consumption in the United States is 3.2
cups of coffee per day.
‣ Daily coffee drinking has increased
for the 4 th consecutive year
Providing a strong coffee program is a
key success factor, as it enables a
business to capitalize on the huge
consumer demand for high quality
regular and specialty coffee. Every
business has the opportunity to profit
from people’s love of coffee by
providing a satisfying brew at a
welcoming coffee station. According to
the National Coffee Association, a
convenience store is the ideal stop for
coffee drinkers. These are several
reasons for this:
‣ Approximately 17% of consumers
purchase coffee at a convenience store
‣ 99% of convenience store customers
purchase coffee at a convenience store
over any other retail format
‣ The number one item purchased with
coffee in a convenience store is a
packaged sweet snack, such as donuts,
snack cakes, muffins, and pastries
To satisfy each coffee drinker and
increase repeat purchases, our team has
identified the critical components of a
successful coffee program:
THE BREW. Freshness is key to having
a quality coffee product. It is essential to
work with a coffee supplier who can
provide you the freshest roasted
products, which are sustained by proper
vacuum-sealing.
AVAILABILITY. Coffee is not just a
morning beverage anymore. Always
have fresh coffee readily available for a
quick, convenient pick up at any time of
the day.
THE LOOK. Marketing your coffee
through appealing, clean, and organized
coffee stations will increase your
competitive advantage. If it looks good,
the coffee will taste that much better to
your buyer!
EMPLOYEE TRAINING. It is
essential that your store employees know
how to brew the proper amount of
coffee. Ask your coffee supplier for tips
on how to brew the best coffee. Also
have employee learn how to successfully
cross-sell. For example, have your
employee ask, “Would you like coffee
with that muffin” A little
encouragement always helps!
Coffee is one of America’s favorite
drinks. Therefore it is essential that
every seller have a strong and
competitive coffee program.
At Global Coffee Company, it is our
goal to provide our customers with the
best and most competitive coffee
programs.
Find a customized coffee solution that
works best for your business; the results
will be well worth it!
Visit www.GlobalCoffeeCompany.com
today to learn more.
**Source: The Learning Exchange,
Willard Bishop Consulting
The following is a paid advertisement
The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives.
9

The following is a paid advertisement
The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives. 10

The following is a paid advertisement
The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives. 11

Greater Houston Retailers Cooperative Association, Inc.
The following is a paid advertisement
13003 Southwest Freeway, Suite 150
Stafford, TX 77477
Office Hours: Monday-Friday 9:00am to 5:00pm
Phone: 281-295-5300 Fax: 281-295-5399
E-mail: info@ghraonline.com
GHRA Chronicle Team
Communication and Publication:
Kaiser Kasimali and Karim Maknojia
Editor:
Romina Mohammed
Writers:
Irfan Patel, Kaiser Kasimali, Steve Koebele, Faisal Kajani,
Design, Layout & Printing
Romina Mohammed
Legal Services are now available at GHRA
office
GHRA approved legal consultants will be available to
assist GHRA members with any legal matters. The
consultation will be for general legal advice given to a
GHRA member in one setting relating to TABC,
Immigration and business transaction. Members are
requested call GHRA office to schedule an appointment
to seek any legal advice.
Consultation service fee is $25 per consultation.
The following is a paid advertisement
PROTECT YOURSELF AND YOUR ASSETS WITH
PRASLA INSURANCE AGENCY
Call 281-295-5380
Moiz Merchant
We can handle all your personal and commercial insurance needs. We can write following coverage:
• Auto Insurance
• Home Insurance
• General Liability
• Property
• Workers Compensation
• Pollution Liability
• Professional Liability
• Liquor Liability
• Commercial Crime
• Bonds
• Flood
• Equipment Breakdown
Conveniently located inside GHRA office
The content of article only express views of individual authors and not necessarily the views and opinions of GHRA and its representatives. 12