I don't think it's a secret if you're publishing it in the news. Just sayin'.
Also I think this whole article can be summed up as "providing a better experience for customers can increase sales".
Also I think this whole article can be summed up as "providing a better experience for customers can increase sales".
With the exception of places like Costco and large truck stops, the vast overwhelming majority of gas stations are franchises where the owner is just some local guy selling under the Chevron or Shell or whatever name. This has some promotional value, of course, but the owner sets the prices just like any other station operator. Ultimately, they all buy fuel from the same local refineries or wholesalers, regardless of the name on the fuel truck that delivers it.
Standard Oil encountered some legal issues back in 1911 by using its size and vertical integration to undercut competitors at the retail level. As a result the petroleum production industry is now intentionally very much NOT involved in retail fuel sales.
Growth example: Wawa entered Florida in 2012, according to Wikipedia. In 2019 it already had 167 and they expect Florida to surpass both PA and NJ, their traditional base, in 2021. Pretty sure the vast majority of the FL stores have gas, while many PA/NJ do not. Further, the number of pumps is generally much higher at the big chains, so 1 of their stores may equal 2-3 independent franchise stores in terms of customer count or gas sold.
https://www.mcall.com/news/local/mc-nws-pa-wawa-expansion-20...
Sheetz has 600+ locations and does $8b a year. All corporate owned and operated.
600+ seems like a big number until you consider that there are 168,000 gas stations in the US. Large chains have a LONG way to go until they are more than a statistical blip, and this doesn't even take into account the fact that the federal government has, for over a century, cast a very jaundiced eye at any single entity using its market presence to drive competitors out of the retail gasoline business via undercutting on prices. Looking at the FTC ruling on the acquisition of Sunoco's fuel retail locations by 7-11, they monitor competition in fuel retailing VERY closely, to the point of mandating a certain degree of competition in specific markets.
https://www.ftc.gov/news-events/press-releases/2018/03/ftc-a...
The store side is primarily where chains threaten independent operators because they can have a lower cost structure overall -- much more purchasing power on food/snacks/soda, more ability to offer fresh food (Wawa sandwiches, Racetrac frozen yogurt, etc), better stocking, and far more labor efficiency.
Your own number of 168k gas stations proves the point -- that number is from 2004, and is 40,000 less than a decade earlier. While there are many reasons why gas stations are closing, surely increased competition from brand-name mega-stores with 16, 24+ pumps each -- is one of those reasons.
Of course. Not in absolute terms (that's impossible), but on quality terms it is certainly possible.
Compare fast-food franchises where the chain actually evaluates their franchisees with rigorous detail like McDonald's to gas station franchises where the only thing the franchise provider is caring about is that the oil is sourced from them... it's relatively easy to provide a difference in quality as a franchisee simply by providing a decent experience for the consumers.
It's the little things that matter - is the toilet back in a shed full of graffiti, cold, or one of these ugly vandalism-resistent all metal things, or is it in the proper store, clean, brightly-lit and with proper toilet paper instead of 1-ply crap? Is the ground spotty all over the place from gas/oil residue and dirt, or is it cleaned regularly? Windows and other surfaces shining or full of dirt layers that haven't seen a scrub in decades?
All of this can be done by a single small store owner who cares about details compared to a corporate-run effort where everyone just cares that their paycheck arrives and the stores make a specific profit margin target.
That sounds all nice and good and very Zuccotti Park, but experience suggests the opposite. Wawa and Racetrac bathrooms (and McDonald's, and Buc-ee's, etc) are generally far cleaner, well-stocked and much more pleasant, than most independent or one-off gas stations. Many stations still lock their bathroom door.
Maybe it's because keeping the bathroom clean is one of the requirements that the corporation insists upon, in order to continue receiving those paychecks.
That, plus "be part of a community you can rely on for capital and labor." Despite the many struggles that immigrants face, they do seem to often benefit from being part of a close-knit community.
As an ordinary, middle-class, non-religious white American from a small family, I'm not sure where I'd turn to find such a network. Open to suggestions, though!
Right, but what does that actually mean. What is he actually doing to make the businesses more attractive to customers.