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Circle K: Building a Global Brand?

Circle K: Building a Global Brand?

With scale and synergy mastered, does Alimentation Couche-Tard’s retail brand need a personality?

Originally Published in CSP Magazine
Angel Abcede, Senior Editor/Tobacco, CSP

Too Big To Fail? — Despite competitive challenges, the momentum building from Circle K’s strengths is contagious. Amin Chitalwala, CEO of Gas Express, Atlanta, chose to expand his business by becoming a Circle K franchisee in 2013. In the c-store business since 1994, he and his CFO partner, Shams Nanji, now have 22 stores.

Initially opening his stores as Food Mart, Chitalwala wanted uniformity and a clean, crisp look for the sites. After researching other brands, he chose Circle K because it gives him several advantages: a consistent look, global insights, significant buying power, newfound respect from vendors, and the marketing and training tools to be successful.

His agreement with Circle K eventually gives him up to 45 stores in the Atlanta area, and he was appointed a regional adviser to any area operator wanting to convert to Circle K.

Admitting Circle K’s foodservice program is “not extravagant,” Chitalwala appreciates its simplicity and calls it “easy to manage.” He has been privy to Circle K’s test kitchens and is launching Krispy Krunchy Chicken through a Circle K program, but he believes he’ll have to expand his internal foodservice team in the future if he wants to go further.

Chitalwala likes hearing about Circle K’s acquisitions. The bigger the footprint, the stronger the brand, he says. More importantly, he appreciates how Circle K is also an operator, able to bring him firsthand experiences and solutions.

“They’re an efficient and well-run organization,” he says. “They gave me a platform to grow.”

With 13% of Circle K’s portfolio being franchised or “other affiliated” stores as of its fiscal 2015 report, franchisees are a smaller aspect of Circle K’s growth strategy but still a viable one. Jeff Kramer, managing director for NRC Realty & Capital Advisors, with corporate offices in Phoenix and Chicago, says a franchisee model shifts costs such as health care and other regulatory expenses to those independent business leaders. That said, growth via acquisition is one of Circle K’s most successful strategies.

This includes overseas, where Circle K has been quite active. Its recent acquisition of Dublin-based Topaz and its 162 company-owned and 302 dealer-operated locations drove analysts with BMO Capital Markets, Toronto, to improve their projected stock price for Couche-Tard to $66 from $64, which five years ago was about $30. (At press time, the price was $60.50.)

More activity in the area “would further validate the European rollup thesis,” according to a BMO report from analyst Peter Sklar, who then rated the shares to “outperform.”

Many industry experts say that on a per-store basis, Circle K is a good, not great, performer. But its strength lies less in rivaling the Sheetzes and QuikTrips of the world. Rather, Circle K’s muscle is in incredible store count, operational efficiencies, unit density in core and growth markets, and the ability to tweak its retail just enough to keep consumers interested.

“They’re a good example of how well scale works,” Kramer says. “They have been able to reduce overhead and simplify systems to make their acquisitions work, where being a stand-alone company might not be as efficient.”

“Wall Street loves Circle K’s balance sheet, and they’re shrewd operators,” says the consultant, describing the company’s decentralized structure—while not ideal—as a “stable” model.

To continue down this road of dipping your toe in the water on foodservice will be a risky proposition, but in the long term, they will figure it out.


$1.02 billion — Couche-Tard’s net earnings less acquisition expenses in fiscal 2015 vs. $766 million in 2014
14,900 — Number of stores globally
Source: Google Finance, February 2016; Alimentation Couche-Tard

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Circle K Awards Master Franchise Agreement to Gas Express

Circle K Awards Master Franchise Agreement to Gas Express

Originally Published in CSP Magazine

ATLANTA — Circle K has inked a partnership with Atlanta convenience store chain Gas Express. On Oct. 10, 2012, Circle K awarded Gas Express a master franchise agreement, allowing Gas Express exclusive Atlanta-area rights to the Circle K brand for Clayton, Cobb, Coweta, DeKalb, and Fulton counties.

This marks Circle K’s return to the area after shifting its business focus a decade ago to other regions. Gas Express has committed to branding 42 Atlanta metro area stores.

A store in North Atlanta will serve as the flagship store under this new partnership. The companies expect it to open late in the fourth quarter of 2012 with other stores to follow in 2013.

“On behalf of Circle K, I want to say how excited we are to be expanding our brand in the Atlanta marketplace with Gas Express,” notes Dennis Tewell, vice president of Circle K Franchise Operations. “We are proud to have our brand on these quality assets and especially proud to be working with the leadership of Gas Express. We find them to be progressive, service-minded professionals that are focused on supporting and contributing to the communities they serve. We strongly believe our relationship will be mutually beneficial to Gas Express, Circle K, and our customers.”

Gas Express co-owner Amin Chitalwala said, “Circle K is going to provide leadership and buying power that, as a local business, we don’t always have. Such savings will be forwarded to the consumers, offering them more competitive pricing and improving their shopping experience in our stores; however, we will still be individually owned. And as a part of our business and community philosophy, as we grow with the help of Circle K, we will help others in our community climb through being able to hire more employees and offer them better incentives and benefits.”

Gas Express is an independently owned c-store chain offering brands including BP, Shell, Texaco, and Chevron. Beginning in 2012’s 4th quarter, Gas Express will exclusively utilize Circle K as its sole convenience store brand. Business partners Shams Nanji and Amin Chitalwala began Gas Express with a single store in Riverdale, Georgia, in 1994. It has since grown into a reputable business operating more than 15 sites in five metro-Atlanta area counties. The Gas Express team recognizes the diverse demographics of Atlanta and aims to offer unique, but always dependable service tailored to each market. Gas Express offers unique services such as Growler purchases/refills, a wide selection of wine, a huge selection of Craft beer with Rob’s rating, and beer caves within select stores.

Laval, Quebec-based Alimentation Couche-Tard Inc.’s network includes approximately 6,100 c-stores throughout North America, including about 4,500 stores with fuel. It has agreements for the supply of motor fuel to 357 sites operated by independent operators. Its North-American network consists of 13 business units, including nine in the United States covering 40 states and the District of Columbia (under the Circle K banner) and four in Canada covering all 10 provinces (under the Couche-Tard and Mac’s banners). The stores feature Premium Circle K Coffee, ThirstBuster fountain drinks, beer, snacks, candy, ATMs, Talk And Go Mobile prepaid wireless phones, gift cards, money orders, and general merchandise.

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Park & Roll 2017 Sponsorship

Park & Roll 2017 Sponsorship

Gas Express is proud to support outstanding programs within our community and excited to announce our Blackbelt Level sponsorship of Park & Roll Jiu Jitsu In The Park this summer.

Park & Roll Jiu Jitsu In The Park promotes a lifestyle of wellness, fortitude, and balance by shaping a space for martial artists to gather. Park & Roll brings the grappling community together to share experiences and insights by providing outdoor open mats, hosting special events, and featuring exclusive seminars.

For more information about Park & Roll and a schedule of upcoming events, please visit their website by clicking here.

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2017 Aga Khan Foundation Walk/Run

2017 Aga Khan Foundation Walk/Run

Gas Express, LLC, Circle K Atlanta is excited to announce our sponsorship of the 2017 Aga Khan Foundation Walk/Run, and to be joining other community supporters in helping raise money for such a worthy cause.

This year, we have set an aggressive goal, which we hope to attain alongside our partners, customers, and members of our team, our friends, and our families. We invite all to help us raise $250,000 this year by joining us for the walk on September 17, 2017 at Stone Mountain Park.

Registration Information: Click here to register with our team. Select Circle K on the website in order to join our team.

We thank all of our sponsors from last year and invite all our friends to help us take our capacity to another level this year. We will unite against global poverty. We will have solidarity with people who struggle for food, education, livelihood, and human connection. We will join forces, in all ways possible, with those whose access is limited because of economic, political, and cultural conflicts. Circle K is dedicated to social justice, and so is our community, our friends, our allies that make such a commitment manifest into hope for others. You are that hope. Let’s make the new world together in 2017.

 

What Is The Aga Khan Foundation (AKF)?

The Aga Khan Foundation works in over 30 countries around the world. It employs approximately 80,000 people, the majority of whom are based in developing countries. The Aga Khan Development Network seeks to ensure that children and young people are equipped with the knowledge, skills, attitudes, and values to help them interact effectively with their world and be contributing members of a pluralist society. The AKDN has five leading organizations in education that work together to promote a continuous ladder of lifelong learning, starting from early childhood and extending well into adulthood.

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Gas Express Forms New Company, Acquires 25 Southeast C-stores

Gas Express Forms New Company, Acquires 25 Southeast C-stores

Originally Published in CS News

ATLANTA — MAS Capital LLC, a new company established by the principals of Gas Express LLC (GX) and Synergy Capital Investments, has successfully closed on its acquisition of a portion of the gasoline service station and convenience store network formerly owned and/or controlled by Circle K Stores Inc. in the southeast region of the United States.

The acquisition includes 25 Circle K, Kangaroo Express, or Flash Foods branded retail sites that are located in Georgia, Tennessee, and South Carolina. The entire network is company-operated, and MAS Capital will convert the pre-closing motor fuel offering to the Chevron brand.

GX was established in Atlanta in 2002 by principals Amin Chitalwala and Shams Nanji, and is the largest Circle K franchisee in the United States and a CITGO, ExxonMobil, and ChevronTexaco branded wholesaler. GX currently operates approximately 135 locations in Georgia, Alabama, Arkansas, Louisiana, Tennessee, and South Carolina.

Atlanta-based Synergy, controlled by Malik Karimi, is a private equity firm that specializes in investing in small to mid-market businesses with extensive experience in the convenience and gas station industry.

Petroleum Capital and Real Estate LLC (PetroCapRE) acted as the exclusive financial advisor to MAS Capital LLC.

“We would like to thank everyone involved in the transaction, the GX team, Synergy, and especially PetroCapRE for guiding us through the myriad of complexities needed to complete this acquisition,” said Chitalwala.

PetroCapRE provided professional assistance in the initial competitive bidding and financial due diligence process, acquisition modeling, contract negotiations, and procurement of the capital required to close the overall transaction.

“We are excited that our firm could support MAS Capital throughout this transaction process,” said John Flippen, managing director and principal of PetroCapRE. “This was a great opportunity for our client to acquire a large number of locations within GX’s current retail footprint that complements its existing network of locations.”

Laval, Quebec-based Couche-Tard operates in 26 countries and territories, with close to 14,200 stores. Its banners include Couche-Tard and Circle K.

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MAS Capital Acquires 25 Retail Sites

MAS Capital Acquires 25 Retail Sites

Brands include Circle K, Kangaroo Express and Flash Foods

Originally Published in CSP Magazine
Greg Lindenberg, CSP

ATLANTA — MAS Capital LLC has closed on the acquisition of a portion of the gas station and convenience-store network in the Southeast formerly owned or controlled by Circle K Stores Inc. The acquisition includes 25 Circle K, Kangaroo Express, or Flash Foods branded retail sites in Georgia, Tennessee, and South Carolina.

The entire network is company-operated, and MAS will convert the motor fuel offering to the Chevron brand.

The principals of Gas Express LLC (GX) and Synergy Capital Investments established MAS Capital in 2021 to facilitate the acquisition and smooth transition of the 25 retail sites from Circle K Stores to the newly formed company. Amin Chitalwala and Shams Nanji established GX in Atlanta in 2002. GX is the largest Circle K franchisee in the United States and a CITGO, ExxonMobil, and ChevronTexaco branded wholesaler. GX currently operates approximately 135 locations in Georgia, Alabama, Arkansas, Louisiana, Tennessee, and South Carolina.

Atlanta-based Synergy, controlled by Malik Karimi, is a private equity firm that specializes in investing in small to mid-market businesses with extensive experience in the convenience and gas station industry.

Petroleum Capital and Real Estate LLC acted as the exclusive financial advisor to MAS Capital and provided professional assistance in the initial competitive bidding and financial due diligence process, acquisition modeling, contract negotiations, and procurement of the capital required to close the overall transaction.

“This was a great opportunity for our client to acquire a large number of locations within GX’s current retail footprint that complements its existing network of locations,” said John Flippen, managing director and principal of Richmond, Va.-based PetroCapRE, which provides buy-side, sell-side, refinancing, and capital restructuring services for clients exclusively in the downstream multi-site retail and wholesale petroleum industry.

Circle K forged a partnership with GX in 2012. It awarded Gas Express a master franchise agreement allowing Gas Express exclusive Atlanta-area rights to the Circle K brand for Clayton, Cobb, Coweta, DeKalb, and Fulton counties.

Couche-Tard is No. 2 on CSP’s 2022 Top 40 Update to the 2021 Top 202 ranking of U.S. c-store chains by store count. Watch for the full 2022 Top 202 ranking in the June issue of CSP magazine. Laval, Quebec-based Alimentation Couche-Tard Inc.’s 26-country global network includes approximately 9,300 c-stores in North America, with more than 7,100 in the United States under the Circle K and Holiday Stationstores banners in 48 states, and approximately 2,100 in Canada under the Circle K, Mac’s, and Couche-Tard banners. It has a worldwide total network of approximately 14,200 stores.