LPT Retail Management Services, LLC Central Plano ...lptservices.com/wp-content/uploads/2017/09/LPT-Info-Packet.pdf · fraud, and administrative errors. LPT's Inventory Control System

LPT Retail Management Services, LLCCentral Plano Executive Suites

555 Republic Dr. 2nd FloorPlano, TX 75074

Phone: 972-338-4025Email: [email protected]

8/31/17 Copyright 2010-2017 - LPT Retail Management Services, LLC - All Rights Reserved 1

Who we are and what we do.

LPT Retail Management Services is a retail management service company that offers a unique management service in theconvenience store industry. The company manages and operates convenience stores, car washes, truck stops, quick lubes and fastfood restaurants for financial lending institutions, oil companies, individuals, local & national wholesalers, and receivershipsanywhere in the United States including Alaska and Hawaii.

The company's founders are experienced professionals in the convenience store industry with over 150 years of combinedexperience with clients such as Shell Oil, BP, ExxonMobil, Morgan Stanley and GMAC. LPT is ready to step in and offer turnkeyservices consisting of operating a convenience store, car wash, and truck stop anywhere in the U.S., within a moment’s notice, for aslong as its services are needed. These services include Operations, Marketing, Fuel Management, Survey Analysis, Accounting,Payroll, I.T. to existing sites, the reopening of closed locations, and opening of new locations.

In addition to operating businesses for its clients, LPT RetailManagement Services also owns and operates a chain of conveniencestores, fast food restaurants, and truck stops in multiple states in theUS. LPT currently operates locations in New Mexico, Arizona, Texas,Florida, Oklahoma, Michigan, North Carolina, South Carolina,Washington, Oregon, California, Nevada, Alabama and Minnesota,Pennsylvania. Having locations in multiple States gives LPT anadvantage in reducing the operating cost for our clients by using LPT’scurrent resources and infrastructure setup in these states. Because ofthis unique advantage, LPT has been able to expand and increase itsstore count greatly in the past 5 years with plans to expand in morestates.

8/31/17 Copyright 2010-2017 - LPT Retail Management Services, LLC - All Rights Reserved 2

LPT’s Story

8/31/17

Headquartered in Texas, LPT Retail Management Services was formed to offer a unique retail management serviceto its clients. The company manages and operates convenience stores, car washes, truck stops, quick lubes and fastfood restaurants for financial lending institutions, oil companies, individuals, local & national wholesalers, andreceiverships.

LPT’s founder and President, Kevin Gandy, has established an extensive successful career with over 30 years ofexperience in the convenience store industry. For the past 30 years, he has successfully operated thousands ofstores in the retail management service sector across the U.S. for large clients such as Shell Oil, BP, ExxonMobiland many individual private investors. Over the last 30 years, he has built a proven management system of highlytrained team members with over 150 years of combined industry experience. This team is mobile and ready to stepin to completely take care of your company’s every need. This involves everything in operating conveniencestores, car washes, and truck stops anywhere in the U.S., within a moment’s notice, for as long as our services areneeded.

Kevin Gandy is well recognized in the industry, making LPT the most experienced andbest choice for our clients. LPT’s competitive advantages are its flexibility, lack ofcompetition, low overhead, and strong industry experience. LPT has the flexibility tooperate any amount of sites, anywhere in the U.S., for any length of time needed. LPTcan cater to contracts of all sizes, as it has personnel mobilized to adjust to the volumeof work needed. LPT is able to offer the same level of service with significanteconomies of scale, resulting in significant cost savings to our clients on an ongoingbasis. Kevin Gandy, President

Copyright 2010-2017 - LPT Retail Management Services, LLC - All Rights Reserved 3

8/31/17

LPT Retail Management Services can provide several options for your business. Over the last 20 years, our executive team has managed and operated thousands of convenience stores throughout the U.S. Our retail management system has been developed as a result of many years of experiences working in a variety of unusual business circumstances and different client needs. Each service package is unique to our clients need. As every clients needs can vary, we're confident our tried and true retail management system will work for you. Below are some of our most popular services.

Oil CompaniesLPT currently operates locations with the following oil companies. Exxon, BP, Shell, ConocoPhilips, Valero, and Texaco, LPT maintain an excellent rating with all companies.

Quick Serve RestaurantsLPT currently operates QSR’s with the following brands: Hardees, Arby’s, Subway, Popeye’s Chicken & Biscuits, Noble Roman’s Pizza, Tuscano’s Italian Style Subs, Cooper’s Chicken, Krispy Krunchy Chicken and maintain an excellent rating with all companies.

Convenience StoreLPT Retail Management Services provides our clients with a complete operational package. This means on the day of takeover, our assigned takeover team of professionals will transfer all employees, local and state licenses, utilities, inventory purchases, fuel purchases, any and all agreements held by vendors, equipment services, and maintenance services. This will ultimately remove all of our clients day-to-day operational responsibilities.

What we can do:


What we can do:

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Truck StopLPT Retail Management Services has been a very successful service used in all different aspects of the convenience store industry. Although Truck Stops can appear as just another gas station, in most cases they have many different profit centers. These profit centers are usually operated as a separate business with-in a business. Some of these profit centers are multiple fuel pumping stations for gas and diesel, multiple franchise restaurants, hotels, gift shops, repair shops, and car truck washes. Although truck stops can be more complex, our retail management services will meet your company's needs.

Quick Lube ServiceLPT Retail Management Services is an established and current franchisee with many companies and can operate Quick Lube facilities at a moments noticed anywhere in the US. LPT currently operates multiple locations for name brand companies. Our extensive experience with many different company brands has given us the ability to develop proven and successful systems in improving the bottom line.


What we can do:

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Fast Food RestaurantLPT Retail Management Services is an established and current franchisee with many fast food chains and can operate any restaurant at a moments notice anywhere in the US. LPT currently operates multiple franchise fast food restaurants with several popular restaurant chains. Our extensive experience with fast food restaurant has given us the ability to develop proven and successful systems in improving the bottom line.

Full Service Car WashLPT Retail Management Services provides our clients with over 30 years of operating and managing experience in this industry. LPT currently maintains relationships with all National Car Wash Equipment manufactures and Chemical Vendors, giving us the edge needed to maximize the bottom line.

The car wash business can be a very profitable business if operated efficiently. Without important systems and programs to manage expenses, labor adjustments due to weather changes can diminish the ability to earn a profit. Our extensive experience has given us the ability to develop proven and successful systems in improving the bottom line.


How we do it:

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Understanding your business is key to the success of our services. Our company’s goal is to find the absolute best solutions thatworks for your business. Over the last 20 year, our service programs have been constantly updated staying ahead of the industry’slatest challenges. Keeping up with technology is paramount. Combining our industry knowledge, along with todays technology, hasgiven us a huge advantage against any company trying to duplicate what we do. We’re proud to say, we are the best at what we do.Many have tried, where we have succeeded.

Client lease program may also be an option foryou. We found that some clients do not wishnor have any interest in the day-to-dayresponsibilities and just want to remainproperty owners. LPT is in business to grow,we are constantly looking for new locations toadd to our group.

The diagram shows a breakdown of the day-to-day financials side of our services. Everythingis handled in-house and provided on a monthlybasis.


8/31/17

POS Back Office SystemTechnology has advance in this industry by leaps and bounds. LPT’s founders realized this and started the company at the mostopportune time. While many companies had invested so much time and money to old, obsolete technology, making it very difficult to abandon, LPT saw the opportunity and ran with it. In 2010, LPT was able to partner up with PETROSOFT, the leading back office service provider in the c-store industry. We see the value of what they provide and use them exclusively in all our locations.

Because this system is on the cloud, we’re able to maintain and manage a clean price book with over 15,000 SKU’s that can be downloaded into any stores POS system within minutes. This advantage insures that all items are being scanned with the correct retail upon takeover of any amount of stores at a time. All these benefits translates to capturing saved margin from day one.

Payroll SystemAfter many years of providing in house payroll we found another advantage in using technology on the cloud. Payroll today has become so complex that maintaining the strict record keeping guidelines and proper tax withholdings, as well as keeping up with ACA, we find using a professional service is the way to go. Selecting Paycom as our Payroll service provider is very important in maintaining a secure and transparent system for our clients. Employee’s have to clock in/out on a secure access point, which uploads to the cloud and monitored daily, preventing any unauthorized labor expense.

Log In Screen

How we do it:


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LPT provides many in house services that we use for both our company owned stores and client service programs. Theseservices have been designed to work for any client whether it’s one location or one thousand locations. As every clients needscan vary, we're confident our tried and true retail management system will work for you. Below are some of our most popularservices.

Inventory ManagementOne of the biggest challenges in any retail business is controlling inventory. According to the National Retail Security Survey, retail losses hit $41.6 Billion last year alone, which translates into 1.61% of lost sales. The convenience store industry's losses on average have been over 4% of sales (avg. $30,000 per year, per store). The cause of inventory shrinkage is attributed to employee theft, shoplifting, vendor fraud, and administrative errors.

LPT's Inventory Control System is a combination of an advanced back office computer system that tracks register sales at item level and processes all vendor purchase at item level via our accounting processing center. Taking this extra step to insure that all negotiated costs with vendors are correct while entering these invoices is very important. While applying these great measures, it is also as important to perform monthly inventory audits at item level. This ability gives us a true indicator of any issues or problems the store may have by month.

How we do it:


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Sales and Use TaxesFiling and collecting sale and use taxes for convenience stores can be a very complicated process if you’re not set up correctly at point of sale. With as many as 15,000 SKU’s and over 50 different product categories, making sure you collect the correct sales taxes is a difficult process. In addition, every state, county, and city has different tax rates, as well as different products, that should collect sales tax. LPT’s price book is setup with Departments and Categories that can easily handle as many as 7 different tax rates, which is more than what is required for any state in the US.

Permits and LicensesAs any business owner understands, it is one of the most important responsibilities in the operation of your business, yet, many find this to be difficult because of the unknowns. You really don’t know what you don’t know until you get a visit from an enforcement officer. Unfortunately, telling them you forgot or did not know you had to file for a permit does not help your case. Depending on the officer or the type of permit, penalties can result in fines or your business to be temporarily closed. Failure to maintain licenses on categories such as alcohol beverages and tobacco product can affect loss of sales by over 50%. In addition, reapplying for expired licenses becomes problematic and in some cases take as long as 12 months to get re-approved.

As part of our service, LPT insures all permits and licenses are filed on time and kept current.

How we do it:


8/31/17

Marketing LPT provides a full marketing program. This program consist of over 25 years in best practices in conjunction with new technology and long term partnerships with many vendors. While the average size store can tie up over $75,000 in product inventory, LPT uses its many resources to determine the correct selection of inventory and minimize the purchase of slow moving items. LPT uses plan-o-grams (POG’s) to set up every store. Every plan-o-gram is continuously updated against sales by ranking.

Ordering systemIn addition to setting up each section with POG’s, every shelf is set up with product labels for weekly reordering. The hand held ordering system also provides a history of how often this product was ordered and suggested quantity order ensuring no out-of-stock.

Accounting ServiceLPT has a full service accounting department with book keepers and certified public accountants. LPT provides a complete set of financials every month, by store and by company. This includes Balance Statements, Profit & Loss Statements, and full general ledger report.

How we do it:


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How we do it:

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Floor Plan (Store Layout)During every store initial reset, a store layout is created to identify the final section of every POG. This process is just as important as creating plan-o-grams. Creating these store layouts insures the proper use of the stores space by vendors and maintains control and consistency of the store appearance.

Point-of-Purchase (signage)LPT creates and provides every store with POP signage. All art work and signage material are done in house and distributed to every store. Promotional retails/prices are negotiated and set up with each vendor by the marketing department during the initial setup of the store and are maintained monthly.

Point-of-Purchase (Assignment)All POP Signage is customized to every location and assigned at a specific window/door to maximize promotion exposure.

Cooler doors POP assignment Front door POP assignment Fuel Pump


Testimonials

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LPT's founder and President, Kevin Gandy, has established an extensive career with over 30 years experience in the convenience store industry. For the past 20 years, he has successfully operated thousands of stores in the retail management service sector across the U.S. for clients such as Shell Oil, BP, ExxonMobil, and GMAC.

The key element in the need for Retail Management Services and the value of our service is when the property owners (Client) are left with an abandoned convenience store due to a failing owner/operator, who no longer wants to operate the business. It is at this moment, when our clients find themselves in desperate need for our services, and when they are impressed with our ability to respond within hours of the call anywhere in the U.S. It's been the regular industry practice for lending institutions or oil companies to allow the existing operator to continue operating the business until a solution has been decided. In most cases, this gives the store operator more time to pilfer through the business in an attempt to retrieve their losses. Our services is now something that can be used to protect and inforce any existing lease agreement/debt obligation held by the property owner and its clients.

LPT's Retail Management Services has become an important "Plan B" option, which our clients have never had before. Now, when financial institutions or property owners fall into a failing store operator, they can count on LPT's Retail Management Service to secure their million dollar asset until a solution has been planned out without duress.

Closed

Re-Opened


Questions & Answers:

8/31/17

Why consider LPT?Transitions can easily go from profitable to costly when unexpected delays come into play, especially if you are not equipped with an operating infrastructure. Whether an oil company is in between dealers or a financial institution is flipping property, LPT Retail Management Services provides 360 degrees of interim management services. These services including operations, marketing, fuelmanagement, survey analysis, accounting, payroll, and I.T., for one easy set fee.

Does LPT have the experience to manage our site(s)?Yes, the LPT team has over 150 years combined experience in the industry, specializing in site management. From managing existing sites, re-opening closed locations, and/or opening new sites from the ground up, our references and recognition from past projects speak for themselves.

What is the typical lead time until LPT will be ready to take over the operation of my site(s)?Lead time can vary, transitions can take from a 24 hour notice to a 30 day notice. LPT’s only time limitations are how long it takes to get the required licenses and permits.

Who is responsible for liabilities and problems associated with having employees, selling alcohol and tobacco products, etc.?LPT Services employs all personnel needed to operate the site(s). In addition, LPT Services applies for and holds all permits and licenses associated with the site(s), thereby removing all responsibilities from the client.

Can you work with Receiverships, Foreclosures, or Bankruptcy sites?Yes, LPT can and does work with any type of legal entity. LPT can also act as a Receiver taking care of all facets of court reports and communications.

Will you operate just one site?Yes, LPT Services will operate and manage any amount of site(s), anywhere in the U.S., for any amount of time needed.


The C-Store Industry

8/31/17

The convenience store industry is America's primary source for fuel. Overall, 83.5% of convenience stores (127,588 total) sell motor fuels, a .7% increase (960 stores) over 2013. The growth of convenience stores selling motor fuels is nearly double theoverall growth in the industry, as fuels retailers added convenience operations and convenience retailers added fueling operations.

Convenience stores are everywhere. There are 152,794 convenience stores in the United States — one per every 2,095 people. Other competing channels have far fewer stores, such as supermarkets (41,529 stores), drugstores (41,799 stores), and dollar stores (26,572). (Source: Nielsen, as of December 31, 2014)

Consumers are embracing convenience stores like never before. An average store selling fuel has around 1,100 customers per day, or more than 400,000 per year. Cumulatively, the U.S. convenience store industry alone serves nearly 160 million customers per day, and 58 billion customers every year.

Highlights•The U.S. convenience store count increased to 154,195 stores as of December 31, 2015, a 0.9% increase (1,401 stores) from theyear prior, according to the 2016 NACS/Nielsen Convenience Industry Store Count.•Overall, 80.7% of convenience stores (124,374 total) sell motor fuels.•The convenience retailing industry continues to be dominated by single-store operators, which account for 63.1% of all convenience stores (97,359 stores total).

Additional Highlights•The convenience retailing industry has roughly doubled in size over the last three decades. At year-end 1985, the store count was 90,900 stores, at year-end 1995 the store count was 101,100 stores and at year-end 2005 the store count was 140,665 stores.


Contact Info

8/31/17

As the company’s founder, Kevin Gandy, in his 30 year successful career, has had the pleasure of working with incrediblepeople. In 2010, when he decided to venture out and start LPT, he was able to hand pick an exceptional, highly experiencedteam that he’s worked with for over 15 years. This team left promising careers, believing in Kevin and his new business venture.As the team came together, one-by-one, he was convinced that LPT would be very successful and offer the best retailmanagement services to it’s clients. His team was also convinced and is a proud, highly motivated group, with over 150 years ofcombined retail experience.

Kevin proudly admits this team is the best group of hard working people he has ever had the pleasure of working with.

LPT Retail Management Services, LLCCentral Plano Executive Suites

555 Republic Dr. 2nd Floor Plano, TX 75074Office 972-338-4025 / [email protected]

Thank you for your interest in LPT

Please feel free to contact us with any questions.

Kevin GandyPresident

Office: 972-338-4025 x 205 - Cell: 512-567-2263

[email protected]


Documents

LPT Retail Management Services, LLC Central Plano ...lptservices.com/wp-content/uploads/2017/09/LPT-Info-Packet.pdf · fraud, and administrative errors. LPT's Inventory Control System