Hy-Vee is selling its 21 standalone Fast & Fresh-branded convenience stores, opening the door for a 78-year-old family-owned, Nebraska company to expand to Iowa.
Bosselman Enterprises, which operates six brands in the travel-service sector, will rebrand the Fast & Fresh stores under the Pump & Pantry name, which it uses at 48 locations in Nebraska, it announced Friday, June 5.
The companies did not disclose the purchase price for the 21 stores. Fifteen are in the Des Moines metro, two are in Davenport and one is in Marion. Of the other three, two are in the Omaha metro and one is in Lakeville, Minnesota.
Hy-Vee spokesperson Tina Potthoff said the West Des Moines-based grocery giant will move out of the standalone convenience store business it entered in 2018. The 168 Fast & Fresh stores adjacent to Hy-Vee grocery stores and distribution centers will remain, Potthoff said.
Hy-Vee can now turn its attention to further expansion.
“We’re ready to start building Hy-Vees again,” Potthoff said.
Rebranding to occur in July
The Pump & Pantry rebranding will go into effect in July, beginning July 15, and will be completed by July 26, Pump & Pantry said. The companies said the sale will result in no layoffs, with most current Fast & Fresh employees to be hired by Pump & Pantry. A small percentage will shift to other roles within Hy-Vee, Potthoff said.
The high-end feel of the Fast & Fresh locations fits the Pump & Pantry business model, said Kinsey Bosselman, director of operational planning for Bosselman Enterprises. Visitors to the new stores can expect some changes, though. Fast & Fresh locations offered grocery store items, including some produce.
“We operate a little differently,” Bosselman said. “We won’t have a ton of grocery options. We hope to bring to the market some new offerings.”
Pump & Pantry to bring new food offerings, maintain Hy-Vee rewards
Pump & Pantry has licenses with the submarine sandwich brand Quiznos and Cinnabon, and its online menu includes extensive hot and cold to-go items, pizza and sweets, including ice cream. It also will retain the side-by-side coffee offerings at 12 of the Fast & Fresh locations ― five of them Starbucks and seven, Smokey Row.
Bosselman said customers at the new Pump & Pantry stores will still be able to use their Hy-Vee Fuel Saver points. Pump & Pantry offers its own rewards program, too, with an annual sweepstakes that offers prizes including free fuel for a year.
The Nebraska convenience chain is entering a competitive convenience store market in the Des Moines metro and the rest of Iowa, with Casey’s, QuikTrip, Kwik Star, Maverik, Git N Go and others already dotting its street corners.
“That might step on Casey’s toes,” Bosselman said, “But we’re ready to be a Nebraska-Iowa company. Iowa is a thriving market.”
Pump & Pantry says Fast & Fresh culture works with business model
Bosselman said her company had been eyeing opportunities for more than a decade in Iowa, and Fast & Fresh employee culture meshed with its business model, which emphasizes a sense of ownership among its workers.
With 69 total stores after the acquisition, it plans to expand further into the state, building its own stores, she said.
How will Pump & Pantry separate itself from the competition?
“We are the hometown experience,” Bosselman said. “We serve our community beyond the store. We’re the store you go to refill the cup you’ve had all week. When I go into a store in Nebraska, they know my name, they know the farmer’s name who comes in to get their coffee before 6 a.m.”
The change is the second big shift in the Des Moines convenience store scene in recent years. Salt Lake City’s Maverik bought the Des Moines-based Kum & Go chain in 2023 and completed its rebranding last year.
The Fast & Fresh locations being sold are:
Israel Schuman covers retail for the Des Moines Register. Reach him at ieschuman@registermedia.com.
This article originally appeared on Des Moines Register: Hy-Vee selling 21 Fast & Fresh stores to Nebraska-based chain
Reporting by Israel Schuman, Des Moines Register / Des Moines Register
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By Israel Schuman, Des Moines Register | USA TODAY Network
