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Company: TravelCenters of America, Westlake, OH
Nomination Submitted by: Joele Frank
Company Description: TravelCenters of America Inc. (Nasdaq: TA) is the nation's largest publicly traded full-service travel center network. Founded in 1972 and headquartered in Westlake, Ohio, its more than 18,000 team members serve guests in over 275 locations in 44 states and Canada, principally under the TA®, Petro Stopping Centers® and TA Express® brands.
Nomination Category: Achievement Categories
Nomination Sub Category: Achievement in Organization Recovery
 Nomination Title: TravelCenters of America
- Which will you submit for your nomination in this category, a video of up to five (5) minutes in length about the nominated organization's customer satisfaction achievements since the beginning of 2020, OR written answers to the questions? (Choose one):
Written answers to the questions
- If you are providing written answers for your submission, you must provide an answer to this first question: Briefly describe the nominated organization's history and past performance (up to 200 words):
Total 199 words used.
TravelCenters of America Inc. is the nation's largest publicly traded full-service travel center network. Founded in 1972 and headquartered in Westlake, Ohio, its nearly 18,000 team members serve guests in 276 locations in 44 states and Canada, principally under the TA®, Petro Stopping Centers® and TA Express® brands. It provides diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, travel stores, car and truck parking and other services dedicated to providing great experiences for travelers along America’s highways. TA operates over 600 full-service and quick-service restaurants and nine proprietary brands. Since Jon Pertchik's appointment as CEO in late 2019, he has spearheaded a strategic transformation that is delivering tremendous returns for investors. The stock is up significantly since he joined (from $8.89 to ~$40) and its market cap has grown from $70M to north of $800M at the end of 2021. Prior to the appointment of CEO, Jon Pertchik, TA’s selling, general and administrative expense growth (SG&A) had significantly outpaced revenue growth for many years. The TA Transformation launched in May 2020 under his leadership, involved a multi-pronged strategy focused on improving guest experience, growing TA’s network and investing in alternative energy and sustainability.
- If you are submitting a video of up to five (5) minutes in length, provide the URL of the nominated video here, OR attach it to your entry via the "Add Attachments, Videos, or Links to This Entry" link above, through which you may also upload a copy of your video:
- If you are providing written answers for your submission, you must provide an answer to this second question: Outline the organization's achievements since the beginning of 2020 that you wish to bring to the judges' attention (up to 250 words):
Total 241 words used.
The TA Transformation launched in May 2020 under the leadership of CEO Jon Pertchik. The Company has grown dramatically under the transformation plan, with the stock increasing as much as tenfold. The market cap of the Company rose above $800M in 2021, a huge increase from $70M before Jon arrived. The stock has risen from around $8-9 to approximately $40 now. In 2021, TA produced full year adjusted EBITDA of nearly $220 million, the highest in the company’s history. The multi-pronged transformation included improving guest experience, growing TA’s network and investing in alternative energy and sustainability. TA has made significant progress to enhance guest experience through several initiatives including remodeling its travel centers nationwide, expanding food options and restaurant concepts, upgrading digital technology and enhancing its loyalty program. In October 2021 TA opened the first of more than 100 site refreshes planned over the next 12-18 months. Network growth is a key component of TA’s transformation. Since the beginning of 2020, TA has signed 40 new franchise agreements and opened 14 new franchise locations. The retailer anticipates 34 more franchise locations will begin operations by the third quarter of 2023, as it moves toward a target of more than 30 per year. Lastly, New business unit, eTA, was launched on Earth Day 2021. Through launching eTA, TA cemented its commitment to sustainability, by adding sustainable energy options for professional drivers and motorists, while leveraging alternative energy to support its own operations.
- If you are providing written answers for your submission, you must provide an answer to this third question: Explain why the achievements you have highlighted are unique or significant. If possible compare the achievements to the performance of other players in your industry and/or to the organization's past performance (up to 250 words):
Total 250 words used.
TA’s financial results and stock price reaction are indicative of the outperformance the Company has driven over the last two years. The Company operates in a highly fragmented industry, with the largest players being privately or family-owned. During the early stages of the pandemic, TA shut down 169 full-service restaurants, which helped to boost net income by 490%. Additionally, the Company transitioned from buying fuel in 30-million-gallon increments, to placing bulk orders of 750 million at a discount. Differentiated cost-saving practices were further bolstered by competitively bidding the uniforms for TA’s truck mechanics and converting to LED lighting. Furthermore, TA has been an early adopter within their industry to invest in EV charging stations. The Company is now focusing on key markets where states have put in incentives around EV. When it came to organizational recovery, no idea was too big or small. TA has achieved incredible success in an environment that has seen a major trucking/logistics boost, coupled with ongoing labor and supply-chain shortages. The pandemic shone a light on the importance of domestic infrastructure and travel, and that is where TA sits. TA also touches on a number of trends that are central topics right now, including the extraordinary surge in the demand for goods, which has prompted action at the federal level to alleviate port congestion and other supply-chain bottlenecks. The rise in e-commerce spending and increased B2C package volumes has led to a major trucking and logistics boom that has continued past the peak of Covid-lockdowns.
- Optional: Reference here any attachments of supporting materials throughout this nomination and explain how they provide evidence of the claims you have made in this nomination (up to 250 words):
Total 61 words used.
Attached you will find links to various press releases and webpages that further outline TA’s transformation. We hope these will provide greater color on TravelCenters' achievements in organization recovery.
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