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Buy Wawa's Store Locations Database. Convenience Stores. James Smith February 20, Hence the goose logo and mascots.
Soon enough, we became acolytes, won over by last-minute groceries and better-than-average coffee; my brothers, both now living far from Wawa outposts, still swear by its hoagies and breakfast sandwiches. But Wawa transcends local celebrity. And, like any all-night restaurant, the chain is always there to make fresh sandwiches for the closing-time crowd.
It's not just the sandwiches that win notice. In , Harvard Business Review singled out Wawa's rigorous employee training and the resulting strong customer service culture. That training was developed through a proprietary program with Philadelphia's St. Joseph's University; the company now handles training on its own.
Joseph's who worked on that program. Like Wegmans or In-N-Out, Wawa is usually described as a cult brand , a regional player--a Mid-Atlantic specialist confined to a narrow niche. That niche, though, is huge. Wawa also says it's profitable, though it won't discuss specifics or how much revenue comes from gas sales. As Wawa edges upmarket, executives and fans cite a key advantage: its workers, their role in that company culture--and their financial stake, since Wawa is now 41 percent employee-owned.
See below. Wawa asks employees to "fulfill lives, every day," and promote six core values --one of which is "embrace change. All seek to compete with the "quick-service restaurants" that make up one of the fastest-growing and most-competitive segments of the restaurant industry.
High-end chefs are spinning off fast-casual concepts; startups focused on salad and burgers and poke all vie to be the next Shake Shack; fast-food behemoths like McDonald's and Dunkin' Donuts are upgrading ingredients; grocery stores with prepared-food sections are becoming " grocerants. Yet while it tries to level up, Wawa's business still relies on volume and speed.
The company makes "very few partial pennies per customer," Gheysens says, "but for a lot of customers" million of them annually.
Bring people in for a cup of coffee or a tank of gas or to get cash at the store's fee-free ATMs, and they'll likely buy something else: a bag of chips, a Tastykake, a highly customized hoagie--or, since the prices are so low, all of the above.
Wawa's ability to sell so much so quickly relies on technology, tightly controlled supply-chain operations, and a "cluster" expansion strategy that establishes most new stores near other Wawas. The company introduced touchscreen ordering in , getting a decade-long jump on the iPad menus that many fast-casual restaurants now use reducing labor costs and making customized orders--and upselling--much easier.
Its distribution partner, McLane, runs what Wawa calls the supplier's only dedicated warehouse in the U. Last year, Gheysens oversaw the launch of an oil barge and tug to bring 7. A one-time Deloitte analyst who became CEO in , Gheysens took over in the midst of the company's push into Florida. He's continued that blitz while shifting his gaze to big cities: downtown Philadelphia, which the chain once neglected in favor of the suburbs and highways around them; D.
But Wawa has always been quietly reinventing itself. Constantly," adds Rich, who left a role at Coca-Cola and spent two years pulling shifts in hour Wawa stores before his dad let him into headquarters. Dick Wood remains bluntly unsentimental about family and business.
He and his brother George--also on the board--"decided a long time ago that what was important to the family was: 'What's the value of a share of stock, and what's my dividend? For the first years or so, that was a Wood. Wawa was nominally founded in , when Grahame Wood opened his first market in a rural suburb. But it really dates back to , when Grahame's grandfather George Wood opened the Wawa dairy farm, which would eventually supply that store. And to , when George's uncle David C. Wood opened the first of the New Jersey iron foundries that would eventually provide the capital to buy the dairy.
And to , when the first Richard Wood came from England to colonial Philadelphia at the same time as fellow Quaker William Penn and started building a dynasty. It went on to encompass textile companies, children's hospitals, the Pennsylvania Railroad, the Philadelphia Bank, and a dry goods business that, in the late s, outsourced some debt-collection work in Illinois to a young lawyer named Abraham Lincoln. The Woods also intersected with other local, politically-connected dynasties; the du Ponts, of chemical fame, and the McNeils, of Tylenol fortune, both have supporting roles in the Wawa story.
He returned with a plan to open three stores that would sell Wawa's milk and other perishables. She credits the company's management culture to "Uncle Grady's" paratrooper service during World War II: "There's this sense of building a team, where I'm relying on you for my life," she says.
In , Grahame hired his cousin's son, Richard D. Wood Jr. Which was perfect training. You're making short-term decisions, and we are focused on long-term decisions. Grahame named Dick to succeed him in and died in He wanted to check on the progress. Dick Wood spent the s and s expanding Wawa's product lineup beyond dairy and deli meats, gradually transforming Wawa from quasi-grocery to sandwich shop.
His early attempt at selling gas flopped; the second, in , succeeded, ushering in what Gheysens calls the era of "big gas" and suburban-focused expansion. Joseph's who's consulted for Wawa. Wawa spent a lot of the s learning from failure, like a short-lived attempt to sell products from Taco Bell and Pizza Hut--what The Wawa Way generously, if rather inelegantly, considers "ethnic food. Dick Wood also spent the s figuring out how to manage his family. Wawa ownership was mostly split between two separate family trusts, and one trustee started trying to force a sale or an IPO.
In , the company sold a stake to an investment group controlled by the McNeil family--the Tylenol heirs--who, within five years, tried to force Wawa to go public. Fortunately, Dick had a backup plan, one he'd started setting up in to reward longtime employees and start cashing out his family: an employee stock-ownership program, or ESOP.
The workers did. Fifteen years later, many are retiring as millionaires. Which is to say that Dick--who comes off as a warm, funny, and slightly fragile senior citizen, who carefully unbuckled his briefcase to share a glossy, seven-page family tree--is also a sharp and ruthlessly smart strategist. Wawa's six core values include the inoffensive "passion for winning.
But when he retired in , Wood instead appointed the first outsider CEO: Howard Stoeckel, a former human resources executive at the Limited, who joined Wawa in and rose to become its enthusiastically folksy marketer in chief. Du Pont "was smart, but values and culture mean more in this company than being smart," Dick says.
While not a family member, Stoeckel was a well-known quantity to Wawa employees. He approached the job with a healthy appreciation for Wawa's culture, and with a philosophy that continued laying the groundwork for Gheysens.
If you learn from failure, you're rewarded. Stoeckel's biggest practical goal was overseeing Wawa's first major geographic jump, to Florida, where Wawas started opening in While far from Wawa's supply chain and store clusters, the Sunshine State was otherwise welcoming: a big territory, affordable real estate, an established convenience-store culture, and many transplants from Wawa's home turf--including one Dick Wood.
At 59, when he became CEO, Stoeckel soon started looking for a successor. The board settled on Gheysens, who grew up working in his father's car wash. After graduating from Villanova, Gheysens went to Deloitte, where Wawa became a client. He jumped to the retailer in and worked his way up to CFO.
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