Cherryville ABC Store Consistently Top 3 in Gaston County
By: Wise News Network Staff
CHERRYVILLE, NC (WNN) – Tucked in a corner on North Cherry Street lies a thriving business dedicated to ensuring safety, donating to charity and helping the City of Cherryville. Though it might come as a surprise to some, this business is the ABC store.
In recent months, the success of the Cherryville ABC Store has not gone unnoticed by residents and city government officials. The city council often cites the ABC store as a model and praises the Cherryville ABC Board for its generosity.
The frequent praise of the ABC store prompted the Wise News Network (WNN) to investigate its success. By delving into its operations and community impact, our investigation seeks to shed light on the factors driving its performance.
The store’s success is not random. It has involved hard work from the ABC board, employees and general manager, Allen Fraley.
WNN set out to answer questions regarding Fraley’s business strategies and the store’s contributions to the Cherryville community.
The ABC System
It is essential to have an understanding of the North Carolina ABC system to grasp the success of the Cherryville ABC Store. ABC stands for Alcohol Beverage Control. That is exactly what the ABC system seeks to do.
N.C. is one of 17 alcohol control states. While regulations regarding alcohol vary across the United States, N.C. employs the ABC system to control liquor. Liquor purchases are restricted to ABC stores, while wine and beer are available in grocery stores.
N.C.’s ABC system differs from other control states. While some states maintain control over both the distribution and retail sale of alcohol, N.C. employs a mixed model in which the state ABC Commission oversees distribution and local ABC boards manage retail operations.
The ABC system is considered beneficial for several reasons.
One advantage is that it allows for better regulation of alcohol sales. The ABC system reduces the likelihood of alcohol-related issues such as underage drinking, overconsumption or impaired driving.
Cherryville’s ABC manager is a proponent of the system.
The general managers do not own their stores. The store is owned by the ABC board and operated by the general manager.
Since an individual does not own the store, the ABC system eliminates personal selling incentives. Fraley provided an example.
“If you own the store and somebody came in to make a big purchase and you didn’t think they were old enough, you might not card them. We card anybody that looks like they’re not old enough,” said Fraley.
Moreover, the ABC system promotes responsible drinking by ensuring that staff monitor purchases and intervene, if necessary, in selling alcohol in a controlled environment.
“I’m not an advocate of drinking, but we’ve looked at the statistics, and we know that people are going to drink, but we think a controlled state and controlled atmosphere is far better,” said Fraley.
According to a study by Alcohol Justice, a non-profit organization that advocates for safe alcohol distribution, control states see a 14% decrease in spirit consumption compared to non-control states and a 7% decrease in liquor sales.
Additionally, control states display a lower frequency of binge drinking for the 12-25 age group, according to the same study.
While statistics show positive health outcomes regarding alcohol control states, the ABC system can make it challenging for craft alcohol or small businesses to break into the industry due to stricter regulations.
In N.C., some local breweries have faced challenges when attempting to sell beyond their locations because of restrictions on self-distribution. Breweries wishing to distribute alcohol beyond their locations must work with licensed wholesalers.
Although Cherryville does not have any local breweries, one bar, The Bourbon Barrel Saloon, serves liquor drinks. Two additional liquor-selling establishments, the Cherry Pit and Five Spur Steakhouse, will soon open in Cherryville.
Each establishment must open an account with the ABC store to purchase liquor to sell.
According to N.C. General Statute 18B-602(a)(4): “Food shall be available at all times that alcoholic beverages are being served.”
In N.C., restaurants must ensure that at least 30% of their gross receipts come from non-alcoholic beverages and food sales to qualify for liquor sales eligibility.
While the ABC system has advantages and disadvantages, proponents within Cherryville’s ABC system support its regulations.
Fraley’s opinion on the ABC system derives from his decade-long experience working at the Cherryville ABC Store.
Cherryville’s ABC Store
In March 2024, the Cherryville City Council convened for a regularly scheduled work session. In this meeting, Council Member Jon Abernethy, the city’s liaison to the Cherryville ABC Board, discussed the success of the ABC store under Fraley’s management.
He compared reports and found sales in February 2024 were 18% higher than in February 2023. Cherryville has an approximate population of 6,000, and its ABC store consistently outperforms others in Gaston County.
“To see how much they are ahead of last year and then everybody else in the state. I think year to date they are up 18% and most other ABC stores are up just 2-3%,” said Council Member Abernethy.
Out of six ABC stores in Gaston County, Cherryville outperformed five when comparing February 2023 and 2024 sales. Notably, Gastonia, with a population of around 80,000, saw a 5% increase from February 2023 to February 2024, compared to Cherryville’s 18%.
When comparing Gaston County’s ABC sales from March of 2024 and 2023, Cherryville also outperformed five other stores. However, when comparing April 2024 and 2023 sales, Cherryville only outperformed three stores.
Nonetheless, the monthly reports consistently rank the Cherryville ABC Store among the top three performers in the county.
“He is doing many things to push those margins,” said Council Member Abernethy.
Data analysis from the past ten years shows that the Cherryville ABC Store’s performance is exponential. In 2013, the ABC store made $961,432; by 2023, its revenue had increased to $1,653,818.
In 2013, Cherryville’s population was 5,762. Over the last ten years, the population has grown by approximately 500. While this population growth contributes to some of the store’s success, it alone does not account for the substantial increase in sales.
So, what is contributing to the store’s success?
Allen Fraley’s Management
Under Fraley’s leadership, the Cherryville ABC Store has implemented effective business strategies and fostered strong community relations. Fraley’s approach includes inventory management, customer service, and community engagement.
He has worked at the ABC store since 2010 and has been the manager since 2015. Before Fraley, the manager was Terry Fisher, who operated the ABC store since its conception in 1982.
Fisher trained Fraley, who served as the finance director at the time.
“In the state of North Carolina, if you do more than a million in revenue, the state requires you to have a budget finance officer and a general manager,” said Fraley.
Fisher showed him the ropes, ensuring Fraley could continue the ABC store’s success after retirement. When he felt confident in Fraley’s abilities, Fisher retired from the general manager position. However, he did not retire from the store.
“We flip-flopped positions; I took over as general manager, and he started doing part-time as the budget and finance officer,” said Fraley.
The pair worked together in this capacity until Fisher’s untimely death in 2020.
Fraley continued Fisher’s legacy of running a well-organized and community-focused store. Under Fraley’s leadership, the store maintained and exceeded previous performance benchmarks.
Fraley’s key to success is ensuring customer satisfaction. He achieves this by stocking shelves with products his customers enjoy, such as exceptionally high-quality bourbons. By paying close attention to customer requests and market trends, Fraley tailors the store’s inventory to meet their preferences.
An example of successful inventory management followed the launch of Crown Royal Blackberry in March 2024. During March’s work session, Council Member Abernethy praised Fraley for stocking up on cases of the new liquor.
“Crown Royal came out with that blackberry, and Allan got 20 cases; It was gone, and he had a limit on one [per customer],” said Abernethy.
Fraley’s strategy for successful inventory oversight revolves around getting to know his customers. He can learn what kinds of liquor they enjoy through communication with regular customers.
“I know if they’re asking here and I don’t have it, they’re going to the neighboring stores,” said Fraley.
He has many regular customers who enjoy high-end bourbons. By keeping up with his customers’ tastes and releasing new products, he can determine what has a higher chance of being sold.
The satisfaction of his customers speaks for itself. While investigating this story, WNN delved into the reviews for the Cherryville ABC Store. Out of 176 Google Reviews, eight are less than four stars, 40 are less than five stars, and not a single review is less than two stars.
The reviews reflect Fraley’s customer service, as many comments praise the Cherryville ABC staff.
His most recent review, from three weeks ago, read: “Great liquor. Friendly people.”
Fraley is open to stocking any liquor his customers want if they’re willing to buy it. While he avoids overstocking unpopular products, he is committed to offering various options for all tastes.
“I don’t have a bottle, and you’re telling me you’re gonna come in and buy it, then I’ll try to get it,” said Fraley.
He also attempts to stock the shelves with liquor from N.C. distilleries to support local businesses.
The Cherryville ABC Store attracts business from outside the city’s limits because of the relationships Fraley fosters. He provided an example of some individuals who drive into Cherryville to shop at his store instead of their local ABC store because he keeps their preferred liquor stocked.
“They’ll say, I can’t get [our ABC store] to sell me this certain bourbon, but you get it, and you sell it to me, so I’d rather come to business here,” explained Fraley.
Networking with regular customers is not his only strategy to attract out-of-town business. He also utilizes his relationships.
In the March 2024 work session, Council Member Abernethy mentioned that some of the ABC store’s success might be attributed to a purchase from the American Legion World Series organization in Shelby, N.C.
“The American Legion World Series bought all of their stuff for their big meeting from us,” said Council Member Abernethy.
The meeting refers to a dinner that coincides with the American Legion World Series Tournament, which takes place in Shelby. Fraley said the dinner honors important state leaders of various American Legion organizations.
Fraley’s friend, an American Legion World Series organization representative, bought liquor for the tournament dinner from Cherryville ABC Store to support him.
“He was nice enough to come here and make that purchase,” said Fraley.
He wanted to clarify that the liquor purchased was not sold to celebration attendees. It was purchased by the American Legion World Series representative and then distributed to adults over the age of 21 at the dinner.
The tournament takes place in Shelby every year, and Fraley mentioned that his friend consistently returns to the Cherryville ABC Store to show his support.
“He’s come the last couple of years and made that purchase, which I appreciate, but it’s not affecting our bottom line that much,” said Fraley.
The Cherryville ABC Store consistently earns over $100,000 a month in revenue, so no single strategy or relationship is more important than the others.
Council Member Abernethy declined to comment on his statement from the March 2024 work session regarding the American Legion World Series Tournament dinner.
In an email, he said, “I do not understand the need to name a customer in a story about the success of our ABC store. I think all customers have a right to privacy on their purchases and should not be named.”
While respecting the Council Member’s decision to decline comment, it’s worth noting that the customer’s identity was already disclosed during the work session. This statement is included to maintain transparency.
Giving Back to the Community
Regardless of the strategies utilized, Fraley’s management skills have immensely improved the ABC store’s revenue. A thriving ABC store benefits Cherryville more than just boosting its local economy.
The ABC system provides municipalities with revenue through taxes and profits generated by alcohol sales. This revenue can fund public services and initiatives, benefiting the community.
All ABC stores must give a mandated minimum percentage of revenue to their respective city or county. An auditor determines the specific figures by using a formula to calculate the required contribution based on the store’s total sales and expenses.
According to § 18B-805 of the N.C. General Statutes, a local ABC board must make several distributions from its gross receipts before any other distribution to its municipal body.
Gross receipts refer to annual revenue before deducting any expenses. ABC boards must give 5% of its gross receipts to law enforcement and 7% to alcohol education or treatment programs.
They divide the remaining capital for working capital expenses.
Fraley typically gives the necessary 7% to the local Shriners organization, a charitable organization of high-ranking Freemasons. Fraley helped the local Shriners acquire informative literature on underage drinking so they could lead programs to combat the issue.
“I got them a lot of material; They go, set up their booths and as they are raising money for the shrine club, they are also promoting with some of that money to try to prevent kids from drinking and driving and doing things that can cause some bad accidents,” said Fraley.
After allocating all the necessary distributions, they give the remaining money to the city.
ABC boards can give more than the required amount to the city or other entities and Cherryville typically does, according to Fraley. When he started at the ABC store, the board would give Cherryville around $15,000 a year. In 2023, it gave $51,000 to the city, including $6,000 to the police department.
“That’s the most ever in one year the store has given to the city,” said Fraley.
According to the city manager, Brian Dalton, funds from the ABC store typically go to the city’s general fund. He mentioned that a few years ago, these funds were used to purchase new Christmas lights for the city.
The Cherryville ABC Board expects to beat that milestone this year. During May’s work session, May 28, 2024, Council Member Abernethy gave Cherryville’s finance director a check for $30,000.
“We can expect another check to come after the state audit is done,” said Council Member Abernethy.
The required revenue allocations are another reason Fraley is a proponent of the ABC system, as it is a built-in way to give back to the community.
He wants the store to succeed because the more capital he generates, the more the store can give away.
Conclusion
This investigation into the Cherryville ABC Store reveals a narrative of success driven by effective management, community engagement, and support for the ABC system. Under Fraley’s leadership, the store has achieved growth in sales, outperformed expectations, and become a pillar of the community.
Since taking over as manager, Fraley has transformed the ABC store into a tailored experience for Cherryville residents. If the shelves don’t match your liquor cabinet wishlist, Fraley and his staff will help you find your ideal bottle. They might even order a case of your desired selection.
While the ABC system may seem complex, with regulations making alcohol procurement in N.C. more challenging than in non-control states, Fraley remains committed to upholding these regulations.
He believes that the ABC system keeps Cherryville residents and ABC store customers safe and allows him to give back to his community. This is reflected in the ABC board’s donations, which frequently go beyond the state-required minimum.
Fraley ensures the success of the ABC system through strategic store management. By upholding statewide regulations, he curates a responsible drinking environment for eligible adults in Cherryville.
“Every nickel is accounted for here,” says Fraley.
This success story showcases the potential of well-managed alcohol control models and shows their positive impact on the communities they serve. As the Cherryville ABC Store thrives, it stands out as an example of good management and a commitment to serving the public.
Although there are detriments to alcohol consumption, the ABC system mitigates risks and promotes safer drinking environments for North Carolinians.
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