We Get Stronger When We Share What Works
Sukhi Sandhu, NCASEF Chairman
Right now, there’s a lot of uncertainty in the economy, and that uncertainty is hitting our stores. Customers are spending less because they have less disposable income and are unsure about the future. We’ve heard it from SEI’s own team during our recent NCASEF Board meeting—consumer spending is slowing down, and that means we need to do more with less. The question we need to ask ourselves is: What can we do to stay profitable in this environment? The answer starts with one word—teamwork.
As franchisees, we’re all in this together. That means the best way to get through these tough times is to learn from each other. Sharing what’s working—and what’s not—is more important now than ever. During our first quarter Board and Affiliate Member meetings, we had conversations about vendor partnerships, local product opportunities, and ways to work smarter, not harder. The Affiliate Member meeting breakout workshops were packed with great discussions and ideas, and it’s up to us to take those ideas back to our FOAs and store teams. The truth is, there’s no silver bullet solution—but when we pool our best practices, we create a powerful resource that helps all of us weather this storm.
One area that deserves more attention is how we manage our finances—especially our Open Accounts with SEI. In an article in the last issue of Avanti, Todd Umstott laid out a great explanation of how the Open Account works and why it’s so important to monitor your store equity, cash levels, and inventory. As Todd said, “Every financial decision carries greater weight, as profit margins tighten under economic pressure.” Managing your Open Account isn’t just a numbers game—it’s about making your money work smarter. For example, if you have too much inventory, you’re paying interest on those dollars. If you keep excess cash in your personal account as opposed to your Open Account, it increases your liabilities. But if you grow your equity, you can reduce or even eliminate interest charges—and in some qualified cases, SEI will actually pay you interest up to a limited amount (please refer to the specifics of your franchise agreement for that amount).These are tools all of us should be using to keep costs down and improve our cash flow.
Besides managing our Open Accounts, we need to get creative with our product selection. Many customers are being more frugal with their money right now. According to a March 2025 report from the U.S. Bureau of Economic Analysis, consumer spending growth has slowed significantly, especially in retail. Households are pulling back on non-essentials, and many are trading down to lower-priced options. That’s a wake-up call for us. If our stores don’t offer affordable alternatives, we’re going to lose sales to someone who does.
One solution is to work with vendors and practice Retail Initiative to bring in new items that make sense for your store and your customers. If these items aren’t already recommended you can enter them as Store Supported Items (SSIs), which gives you more flexibility and control over your assortment. This came up during one of our breakout discussions at the Affiliate Member meeting, where franchisees shared how they’re setting up SSIs and working with local suppliers to bring in legal, unique snacks, beverages, or other products that customers want—without having to go through a long approval process. Regional top-selling items can also help differentiate your store from the competition, which is key when customers are looking for value and variety. This increases foot traffic and baskets, and goes a long way in retaining customers.
Another option is to look for products that are more affordable alternatives to what’s currently on your shelf. If your community is price-sensitive right now—and many are—then stocking items that cost less and meet the same need could help you hold onto more of your customer base. Again, this is where communication helps. Talk to other franchisees in your FOA. Ask what they’re selling that’s working. Share what items your customers are asking for. The more we talk, the more we can help each other succeed.
It’s also worth revisiting how we approach promotions. During the Board meeting, we emphasized the importance of getting involved in high-margin promotions to drive profitability. SEI is planning some strong regional beverage promos for P2, like 89-cent single drinks and mix-and-match single beer deals. These aren’t mere marketing fluff—they’re tested traffic drivers. If your store isn’t taking advantage of these promos, you could be leaving money on the table. High-margin promos help boost gross profits while offering value to customers, and that’s a win-win in today’s economy.
We also heard SEI talk about owning the snacking space, pushing proprietary items, and making a bigger regional push. That tells me they’re recognizing the need to be more nimble—and so should we. Maybe your store sells a lot of spicy snacks, or perhaps energy drinks fly off the shelves in your area. Lean into that. Talk to your FOA, talk to your field consultant, talk to your fellow franchisees. The more data we share, the more dialed in we can get with our merchandising strategy.
At the same time, the NCASEF officers and Board are actively working with SEI and our vendor partners to overcome the present challenges facing our stores. We’re also discussing ideas like hiring lobbyists who can help us get legislation passed at the local, state, and federal levels that support small business owners like us. Additionally, we are discussing bringing in subject matter experts to help stores strengthen their asset protection programs, which is essential these days with retail crime on the rise. Another area where shared knowledge can make a big impact is insurance. Franchisees can help keep claims low—and premiums under control—by exchanging tips on safety practices, staff training, and incident prevention. By working together and supporting our franchisee captive insurance program, we can maintain affordable coverage for everyone.
All of this brings me back to one simple truth: we are stronger when we share what works. That’s why I encourage every franchisee reading this to participate in FOA meetings, reach out to your colleagues, and be part of the conversation. Don’t wait until your sales dip to ask for help—start building your playbook now, while you still have options to test and learn. The most successful franchisees are planning ahead and leaning on their peers, and not just sitting back and reacting to the economy. While we continue to have discussions with our franchisor about ways to improve store sales and franchisee income, I also encourage you all to adjust your store and personal budgets. I’m doing it—although I would rather not—but the harsh reality is that we have to tighten our belts during these financially lean times.
The economy might be unpredictable, but the strength of our network doesn’t have to be. We’ve built something powerful in NCASEF—an organization full of dedicated franchisees, committed to helping each other grow. Let’s keep sharing best practices. Let’s keep learning. And let’s make sure no one is facing these challenges alone.