According to an article by Sophie Quinton which appeared in a March 23, 2013 issue of The Atlantic.com, the average American retail cashier makes $20,230 per year. On the other hand, entry level employees at convenience store and gas station chain, Quik Trip start at an annual salary of around $40,000 plus benefits. As a result, Quick Trip’s sales per labor hour are two-thirds higher than the average convenience store chain and its sales per square foot of store space are more than 50 percent higher.
The article goes on to say, “Entry-level hires at QuikTrip are trained for two full weeks before they start work, and they learn everything from how to order merchandise to how to clean the bathroom. Most store managers are promoted from within, giving employees a reason to do well. ‘They can see that if you work hard, if you’re smart, the opportunity to grow within the company is very, very good,’ says company spokesman Mike Thornbrugh.”
The lesson here is that if you want to clean up in the convenience store business, you have to pay above the market so that you can attract and retain good people and you have to take good care of them. Pretty simple stuff.