It’s fitting that ice should play an important role in the operation and profitability of today’s convenience stores. The c-store concept itself originated in 1927 at the Oak Cliff, TX ice dock owned by Southland Ice Company. The ice dock was open 16 hours a day, 7 days a week during the summer months to meet demand for the 25-lb blocks of ice purchased during that time to keep perishables from spoiling. The Oak Cliff operator began to stock a few grocery staples in response to customer requests, turned a nice profit on these staples, and the rest is history. Southland Ice Company, later known as 7-Eleven, began today’s c-store industry - an industry which now numbers more than 130,000 locations across the United States alone.

Ice is still a staple in today’s c-store. Ice is required for c-stores’ profitable fountain drink programs and is also sold as packaged, bagged or “party” ice. Fountain drinks and bagged ice are among the most profitable items offered in c-stores, with both delivering about a 60% profit margin according to figures released by Convenience Store News.

Fountain drink dispensers
When c-stores first began to offer fountain beverages, the ice and beverage dispensers available were small, manually loaded countertop units with as few as four valves. Ice from an ice maker in the back room was loaded by bucket into the dispenser. A lot has changed since that time.

Virtually all of today’s c-stores have a fountain program and promote it heavily because of the high profit margins it delivers - 60% compared to about 30% for canned and bottled sodas. Larger equipment, with more capacity and valves, has evolved to support the increased importance of this category. Today’s stores routinely offer 8, 10, 12, 16, or even 20 valves. And, faced with today’s tight labor market and concern for labor savings and employee safety, more operators are moving from manually loading the dispensers to automatically loading them from a top mounted or remote ice maker.

Today’s c-store operators have a number of decisions to make before selecting the type of ice and beverage dispenser that will best meet their needs:

• Automatic versus manual load
• Storage capacity and number of valves
• Integral beverage cooling or separate, mechanical cooling system
• Location of dispenser in store
• What kind of ice is desired

Automatic versus manual load
While automatically loading their ice and beverage dispensers has become increasingly popular with c-store operators, there can be valid reasons for manually loading these dispensers. With manual load applications, however, the dispenser type should be evaluated carefully to maintain efficiency and safety.

Consider that a countertop beverage dispenser itself can be as tall as 38". When placed on a standard 36" high counter, manual loading takes place at 74" (more than 6 feet) above the floor. This obviously requires a step stool or ladder and is potentially a safety hazard for c-store staff. Employees will need to carry a bucket with 20 lbs or more of ice up this ladder and more than seven such trips would be required to fill a dispenser that stores 150 lbs of ice.

Operators who want a manual load beverage dispenser - perhaps because they already have an ice machine in the back room - should investigate beverage dispensers that sit in the counter rather than on it and store ice below the counter rather than above it. This type of beverage dispenser allows safe, easy manual loading at waist height, eliminating the need for a ladder or stool. Click here to view an ice and beverage dispenser with undercounter ice storage. A cart to transport the ice from the back room should also be considered to improve employee efficiency and safety. Click here to view an ice transport cart that allows easy transfer of 75 lbs of ice (in three 25-lb ice totes) at one time from the back room ice machine to the ice and beverage dispenser.

Operators who want to eliminate the need to manually load the ice and beverage dispenser have two ways to automatically load the dispenser with ice. An ice maker can be mounted on top of most countertop ice and beverage dispensers, or the operator can select a Satellite-fill ice maker that can transport ice to a countertop or undercounter dispenser from up to 20 feet away.

Ice makers that can be used on top of dispensers come in a wide range of production capacities - producing from 200 to 1600 lbs of ice in a 24-hour period. Some manufacturers of beverage dispensers have their own line of cube ice makers that will work with their beverage dispensers. Other ice dispenser manufacturers offer dispenser top kits that allow another manufacturer’s ice maker to be mounted on top. Ice made by the top mounted ice maker drops by gravity into the storage area of the dispenser and is then dispensed when the lever or button for ice is pushed.

While this seems to be an easy solution, there are some drawbacks. Cleaning of the dispenser storage area is often very difficult since the ice maker covers the majority of the dispenser top and there is little room for cleaning access. A second drawback is size - the combination of dispenser and ice maker together can result in a unit with a height of 73" or more. When placed on a standard 36" counter, the unit towers 9 feet above the floor. This means that the dispenser must be placed against a side or back wall to avoid obstructing the view within the store. And since fountain beverages are often an impulse purchase, placing the dispenser far from the front door can result in fewer impulse sales or the selection of a bottled product with smaller profit margins.

To avoid the problems associated with top mounted ice makers, operators can select a Satellite-fill ice machine that can fill a dispenser from a location under a counter, in the back room (with the bag-in-box system, for example), or anywhere up to 20 feet from the dispenser. This ability to remotely fill the dispenser provides a number of advantages. Because the ice maker is not physically mounted on the dispenser, the top of the dispenser is not obstructed and cleaning of the dispenser storage area is much easier and faster. Without an ice maker on top, the dispenser is not as tall and can be located within the center of the store without obstructing the view. And finally, the heat and noise associated with making ice is removed from the customer area.

Before selecting any ice maker to automatically fill your beverage dispenser, it is recommended that you review the section on ice types. There are substantial differences in operating costs and efficiencies between machines that make cube ice and those that make compressed nuggets. These differences have can have a significant impact on the bottom line of the operation.

Sizing the dispenser - capacity considerations
Nowhere is “more is better” the rule than in number of valves selected for today’s fountain beverage programs. Where six valves were plenty 15 years ago, 10, 12, 16 or even 20 are common today. As syrup companies have brought out more flavors to try to maintain market share, convenience stores have followed suit by offering more valve flavors in their fountain programs. Operators obviously prefer to sell fountain beverages with 60% margins than bottles and cans at 30%, so having a good selection at the fountain area is critical to profitability.

If you’ll be manually loading your ice and beverage dispenser from an ice maker in the back room, the dispenser storage capacity will probably be determined by how many valves you want and how often you are willing to fill the dispenser. More valves require wider dispensers and that means more storage. As long as your backroom ice maker capacity is adequate, you can refill the dispenser as many times as necessary to keep up with demand. Be sure to consider other uses for ice, for example bagging ice programs, when deciding whether your current ice maker has enough capacity to meet your needs.

You can calculate your ice consumption by determining your average size cup and multiply its capacity by .40. Using this formula, for a 24-oz cup you will use a little less than 10 oz of ice. Different areas of the country will have patterns of use. Store location may affect the amount of ice used. For example, stores in the South generally use more ice than stores in the Northeast.

To estimate how much ice you’ll need each day, multiply your average cup size by the number of beverages you expect to sell and multiply that figure by .40. Then multiply that figure by 1.2 to give yourself a 20% “safety” factor. This will give you the amount of ice that will be dispensed into customer cups each day.

But you’re not quite done…

You must cool the syrup lines to avoid foaming and to maintain the quality of the delivered drink. Most operators choose ice in the dispenser (integral beverage cooling) to cool their syrup lines rather than a separate mechanical cooling system. (See beverage cooling section) An integral beverage cooling system - whether a cold plate or an ice-waterbath system - can use up to 50% of the ice in storage to cool the syrup lines. So, if you will not be using a separate mechanical cooling system you must double the amount of ice that will be used in the cups to find your total ice needs for your traffic patterns.

For example, if you expect to sell 200 beverages, your average cup size is 24 ounces, and you'll be using dispenser ice to cool your beverage lines:

• Ice for beverages = 24 x .40 x 200 = 1920 oz or 120 lbs.
• Safety factor = 120 lbs x 1.2 = 144 lbs.
• Integral beverage cooling = 144 x 2 = 288
• Daily capacity requirement = 288 lbs of ice

Location of the dispenser
Dispensed beverages generally return a 60% profit margin, considerably more than canned or bottled beverages at 30%. Because of this, most operators want the beverage center to be highly visible and easily accessible to promote the sales of dispensed beverages. Because fountain beverages are often impulse purchases, the closer to the front of the store the fountain is, the more sales an operator can expect.

Before deciding on the type of ice and beverage dispenser to be used, consider carefully where it will be located and whether the size of the unit will compromise the aesthetic appearance and/or restrict visibility to other areas in the store. Remember that a countertop ice and beverage dispenser with a topmounted ice maker can result in a height of 73" or more. When placed on a standard 36" counter, the unit towers 9 feet above the floor. It must, therefore, be placed on a side or back wall, far from the front counter where impulse purchases are made.

To avoid the problems associated with top mounted ice makers, operators can select a Satellite-fill ice machine that can fill a dispenser from a location under a counter, in the back room (with the bag-in-box system, for example), or anywhere up to 20 feet from the dispenser. This ability to remotely fill the dispenser provides a number of advantages. Because the ice maker is not physically mounted on the dispenser, the top of the dispenser is not obstructed and cleaning of the dispenser storage area is much easier and faster. Without an ice maker on top, the dispenser is not as tall and can be located anywhere in the facility without detracting from the facility appearance or obstructing the view. And finally, the heat and noise associated with making ice is removed from the customer area.

Another alternative is to select ice and beverage dispensers that sit in the counter rather than on it and store ice below the counter rather than above it. Ice and beverage dispensers with undercounter ice storage are available in manual and automatic load models and can extend as little as 20" above the counter height. This low-profile design allows the dispenser to be placed in an island at the front of the store, to stimulate impulse sales, without compromising the appearance of the facility or restricting visibility to other areas. Click here to view an ice and beverage dispenser with undercounter ice storage.

Packaged ice
According to figures released by Convenience Store News, packaged ice constitutes about half a percent of the average convenience store’s total sales volume but the fact that it delivers a whopping 60% profit margin makes it an important item in any c-store mix.

Convenience stores have the option of buying packaged ice from a supplier or bagging it themselves. Buying ice from a supplier is as easy as picking up the phone. There’s no need for an ice maker in the back room and no labor demand on employees. But purchased ice does not return the same profits as bagged-in-store and stock-outs can cut deeply into profits. An empty ice merchandiser on Saturday could mean substantial profit losses by Monday.

In-store bagging obviously requires back room icemaking and storage equipment. And it can be very labor intensive if employees are required to scoop ice from a bin into bags, weigh the bags, tie them and move them to the merchandiser. But mechanical dispensing bins can make bagging ice fast, easy and economical for the c-store operator. Mechanical ice dispensing and in-store bagging can make bagged ice up to 75% more profitable than buying ice from packaged ice suppliers.

Mechanical dispensing bins
Mechanical dispensing bins are elevated, insulated ice storage bins with internal agitators and drive augers that deliver ice to a front chute. Storage capacities generally range from as little as 300 lbs to 5000 lbs or more. Widths range from 30" to more than 100". Models are available with stainless steel exteriors and either stainless or interior polyethylene liners. Stainless exteriors and poly liners represent the highest quality equipment since the stainless exterior stands up well to abuse without rusting and poly liners are easy to clean and do not rust or stain.

Mechanical dispensing bins are compatible with most commercial cube and cubelet ices. Depending on the manufacturer and model, features and options may include automatic agitation cycle to prevent ice bridging inside bin, button and/or foot pedal actuation, coin operation, and bagging accessories.

This type of equipment is produced by independent manufacturers of ice storage equipment.

Advantages of mechanical dispensing bins:

• Sanitation - Ice drops directly into bags with no handling of the ice. This eliminates potential contamination by scoops. And because ice is dispensed from the bottom of the bin, the first ice in is the first ice used. This ensures a constant turnover and aeration of ice and means that there will be no old ice sitting in the bottom of the bin developing an unpleasant taste, odor and appearance.
• Efficiency - Mechanical dispensing of ice is much faster than scooping. One model, for example, dispenses at 120 lbs of ice a minute into bags and allows employees to easily produce eight to 10 bags of ice a minute.
• Safety - The elimination of repetitive scooping reduces the risk of employee back injuries and slippage.
• Capacity - Storage capacities from 150 lbs to 5000 lbs mean that these systems are available for virtually any c-store regardless of the volume of ice storage required.