SBK Research

1. SBK Research • Objectives: Gauge overall awareness of MTGo and Shweetz at SBK stores Assess SBK impact on bakery and food purchases at Sheetz Assess SBK impact on purchases of other products at Sheetz (coffee, MTO, beverages, snacks, etc.) March 09 • Methodology:Surveys were conducted March 3rd through March 10th, prior to the March 11th bakery price change in the SBK stores. Online survey to Shweetz customers n=566Online survey to SBK Made-to-Go customers n=241

2. SBK Research Bakery Target audience: Sheetz e-database members who in the past said they purchased bakery products anywhere, not just Sheetz. Invitations were sent to 1,700 customers generating 566 responses and a response rate of 33%.There were only 16 people who said they buy bakery, but not at Sheetz. MTGo Target audience: Sheetz e-database members who said in the bakery screener they were aware of MTGo items at Sheetz. Invitations went to 430 respondents generating 241 respondents and a 33% response rate . March 09 This feedback reflects Sheetz customers who had some prior exposure to Sheetz bakery , so “% of new bakery customers“ is most likely understated. It does not account for new “outside” customers brought in the store by the new bakery offer, or those who had no prior bakery affiliation at Sheetz.

3. Summary Bakery Awareness: - While more than half of respondents were aware that something had changed (usually referencing a specific product or item), only 29% were aware that Sheetz bakery was completely new. Bakery Impact: - The new bakery is a success in customers’ minds with 85% saying it was a positive change. - Furthermore, 65% said they are buying more bakery at Sheetz. 6% of those started buying bakery at Sheetz as a result of the new offer. Several mentioned they returned to buying bakery at Sheetz. - The quality, freshness, and taste of products are the main reasons for the increase in purchases. But special price and combo deals were also instrumental in driving trial and attention to bakery. Impact on Other Items at Sheetz: - Coffee benefited the most from the new bakery, though customers said they bought other beverages more often as well.----------------------------------------------------------------------------------------------------------------Key Take-Aways: - Great response to new bakery! The presentation of the product, price and quality were all influential in improving customers perception of Sheetz bakery. - The biggest sales opportunity according to customers is keeping the product available throughout the day (In –Stock). - Some product opportunities may exist in the cookie category. March 09

4. Summary MTGO Awareness: - High awareness of MTGo. Higher than Shweetz awareness by roughly 14%. This does not mean they are aware of the entire MTGo offer. MTGO Feedback: - Quarter of the respondents have not tried anything yet, but are willing to do so. - Satisfaction among those who have tried and purchase regularly is very high. - Having product available during all times of day, is one of the key reasons that kept the ratings from all “5”. - Customers find the area exciting, new interesting products, helpful in a hurry, and a source of “healthier” food items at Sheetz. - Some price sensitivity, but not huge. Customers kept saying “prices on some items are a bit high”. Impact on MTO: - While 7% said they buy less MTO, nobody said they stopped buying MTO altogether. - Majority said this has not changed their MTO products, MTGO is in addition to their regular MTO purchases. ---------------------------------------------------------------------------------------------------------Key Take-Aways: - Great response to MTGO! Most say they use it when in hurry and don’t have time to wait for MTO. - Biggest immediate sales opportunity is availability of product throughout the day. - Customers offered lots of other very specific suggestions. March 09

5. SBK Research BAKERY Online survey to Shweetz customers n=566 March 09

6. Respondent Profile Respondents skew female, but males are just as likely to purchase bakery at Sheetz. Any differences in results by gender will be noted. When looking at bakery products in general, females buy more often. However, since males shop c-stores more often, they buy bakery at Sheetz more often than females.

7. Respondent Profile (Continued) Sheetz gets the majority of respondents bakery purchases. When looking at bakery products in general, females buy more often. However, since males shop c-stores more often, they buy bakery at Sheetz more often than females.

8. Sheetz Purchases

9. Awareness of Any Changes in Sheetz Bakery While more than half had noticed that something was different, only 29% said they were aware the Sheetz made a complete change of the bakery offer. Majority of the changes mentioned were positive. Only those highlighted in Blue were describing disappointment.

10. Consumer Perception of Change Customers think the new bakery is a very positive change for Sheetz Apple Fritter customers were significantly more likely to be happy about the change. (Almost 10% difference) Also, females were more likely to be happy about the change. (About 6% difference.)

11. Impact on Sheetz Bakery Purchases An amazing 65% of respondents are either buying more bakery, started to buy bakery or tried new bakery items at Sheetz as a result of the change.

12. Reasons for Change in Bakery Buying at Sheetz Taste, product quality and price are the main reasons they are buying more of Sheetz bakery. For the small group that said they buy less, it was because they don’t like the new donut.

13. Impact on Other Products at Sheetz Coffee area has benefited the most from the new bakery offer. Some impact can be seen on other beverages as well.

14. Bakery Attribute Importance and Sheetz Performance Customers are very satisfied with their SBK bakery experience at Sheetz. Females score everything slightly higher (importance and Sheetz performance) Selection/variety of items to choose from more important to lower income (under $25,000) Filled donuts and cookies has the lowest “in-stock” scores. Customers rated how important each of these attributes were to making their bakery purchase decision. They used a scale of 1-5, where “5”=extremely important. In the next question they were asked how satisfied were they with Sheetz performance on these attributes. They used a scale of 1-5, where “5”=extremely satisfied.

15. What It Takes to Reach 100% Satisfaction with Sheetz Bakery • “Out of stock” is by far the biggest opportunity for Sheetz bakery.

16. What It Takes to Reach 100% Satisfaction with Sheetz Bakery (Continued)

17. Sheetz Bakery Non-Users The small percent of respondents who don’t buy bakery at Sheetz, could be encouraged to try it with some kind of a special or a coupon.

18. SBK Research MTGo Online survey to MTGo customers n= 241 March 09

19. MTGo Respondent Profile Even though respondents skew female (more female invitations than male), females are only slightly more likely to purchase MTGO products compared to males. Compared to bakery customers the MTGo users are also more likely to have kids under the age of 18 in the household.

20. Awareness and Usage of MTGo General aided awareness of MTGo is very high compared to Shweetz awareness that was 10-15% lower. This does not mean they are aware of the entire product line in MTGo. Roughly a quarter of customers have not tried anything from the cold case.

21. Satisfaction with Sheetz MTGo High satisfaction rating with MTGo offer. Keeping product in stock is the number one area of complaints Pricing perceived a “bit” high on some items”

22. Other improvement areas each mentioned once

23. Impact on MTO Purchases Majority have not changed their MTO habits as a results of the cold case.Only 7% said they buy less MTO as a results of their MTGO purchases. Mostly because of the convenience of MTGO when in a hurry. Nobody said they stopped buying MTO altogether.

24. SBK Intercepts at Moon Township Sheetz, #379 An additional 42 intercepts were conducted with SBK customers at store #379, but only 32 customers buy bakery products out anywhere.Though the sample was very small, answers from the 32 respondents were consistent with those obtained during online interviews:Bakery: - Large majority like the bakery change and consider it an upgrade. - Some say they’ve started buying bakery at Sheetz again, or buy more bakery items than before. - The increase in their bakery purchases has also caused an increase in how much coffee they purchase at Sheetz. MTGO: - Twelve (12) of the 32 have also tried the MTGO products. - Satisfaction almost at 100%. - Looking for lower prices and more variety of items.