Stable, cohesive growth can be a significant challenge for convenience store operators when scaling operations. Let’s focus on one major variable in the equation: your people.
The average turnover rate for full-time employees in the industry can be substantial: as high as 130% in recent reports (NACS). Gallup polls show the lowest employee engagement in the U.S. in a decade in 2024, at 31% of employees engaged. Additional studies find that 70% of the variance in team engagement can be attributed to the manager. The estimated cost of a disengaged employee is 34% of their annual salary (Gallup). Employees can make or break growth and stability.
The Real World
For Jeff Small, the owner of a successful fuel distribution business and six owner-operated stores, the journey toward scalable operations began with recognizing these challenges and addressing them head-on. We’ll explore how Jeff and his team, led by Mike Crowell (Ops), Adam Spear (Food Service) and a team of store managers transformed their operations into a growth-ready framework.
Browns Corner Store
How it started
Jeff Small ran a thriving business with fuel distribution to dealers and six owner-operated stores. The ongoing success provided resources for growth, but the operational structure was not fully scalable to the desired level. Stores needed updates, turnover was high, teamwork was not as strong as needed, and the work required felt overwhelming. Owners and managers did not feel ready to take on new stores.
The fuel distribution focus of the family business did not fully align with the needs of the growing company-operated retail stores. A single store grew opportunistically into a chain but lacked chain-level cohesiveness. As the market shifted in 2020 due to the Covid impact and increased regional competition, it became clear that operational and food service changes were necessary to compete and grow.
The food service challenge was addressed by bringing in outside help. Adam Spear was a local restaurant operator with ties to the community. Small knew and respected Spear’s food service excellence and food-specific operations expertise. He decided to bring in the outsider and team Adam with Mike, an up-and-comer with a series of proven successes across several promotions. Jeff tapped Mike to lead the operational changes in tandem with Adam for the food area of operations.
Assignment
Mike Crowell was promoted through the ranks to run operations and prepare for substantial growth. Adam Spear was hired to bring a new level of food service to the stores. Adam and Mike worked together so that Food Service upgrades were incorporated into the operations along with the other changes.
Approach
To tackle the challenges, Jeff, Adam, and Mike implemented a clear, aggressive, and fair roadmap for growth. Their strategy included the following:
- Conducting key staff personnel assessments to identify strengths and gaps.
- Securing buy-in from staff at all levels.
- Implementing improved order management processes.
- Enhancing cash management practices.
- New store remodels including a kitchen to expand food service with each upgrade.
- Adding a large kitchen with modern design to the flagship store remodel.
- Adding incremental food quality and service offers to improve all stores with food service.
- Utilizing analytics to track progress effectively.
- Establishing a manager leadership certification program.
- Developing a well-defined compensation program to boost morale and retention.
Alignment
The first step in the change was to reset the operational priorities. Jeff, Adam, and Mike focused on team building and aligning goals with the company culture. Together, they created a shared view of priorities with store managers, their staff, and the leadership of the family business.
The commitment to these shared goals was formalized in a kickoff operations meeting in early 2024. During this meeting, each manager presented their store’s strengths and weaknesses along with their plans to achieve their goals. Company culture and branding were emphasized as key focal points, ensuring each store addressed its specific needs while supporting the overall company mission.
Results
The efforts yielded significant improvements across the retail segment:
- Ownership support, strategy, and funding.
- Operations and food service alignment through team building and strategy leadership with store managers.
- Increased store manager retention rates, reducing turnover.
- Robust and practical HR system for hiring and onboarding.
- Clear goals and responsibilities for all team members.
- A strong sense of team-supported operational accountability.
- Improved manager depth and strong recruiting capacity.
- Enhanced food service offerings and sales.
- A well-defined path forward for ongoing growth.
From Mike Crowell, Operations, Small & Sons:
“It took a lot of time and a commitment to delegate more, establish strong HR, reduce turnover, bad work performance, and the emergency mindset.”
Takeaways
Building a scalable operations team requires a mix of strategy, alignment, commitment, and courage. Jeff Small’s journey with his team illustrates the power of aligning operational priorities with a clear growth roadmap. By addressing key challenges such as turnover, operational inefficiencies, and lack of cohesion, the Small & Sons team set the stage for sustained growth.
When assessing your own operational teams, consider:
- Do all teams have a clear roadmap for growth?
- Do food service upgrades include management and leadership skillset acquisition or development?
- Are your managers aligned with shared goals – company and personal?
- Are your teams effectively using analytics to measure progress and make informed decisions?
BandyWorks Participation
Mike utilized BandyWorks for operational consulting, sales and control analytics, and a management certification program.
