Margate330

Down here where I live, they would have to mow something down to put in a big gas station. Lol

And I imagine that might happen some day.

link13

Many gas stations here in SoCal have a service bay or two. Some do repairs and some do smog inspections only. It's probably less than 40% of gas stations that have either. The more common model now is a convenience store that also happens to have a gas station. A lot of malls etc. have charging stations. The Main Place Mall closest to me has a lot of Tesla chargers. I see a lot of gas stations where EV charging stations would likely work very well. Providing something to do while charging is important even if the driver only charges for 15-20 minutes.

Mike728

Isn't Mother Nature already helping with that?

Margate330

Good one! Haha

Yeah, sometimes we get hurricanes.

But, but, but, it stays warm and toasty which I love so that's the only reason I'm here if I had to be honest.

The Walmarts and big box stores would be prime for EV charging, they have lots of extra parking spaces already.

spwolf

there is article about profitability, and it is getting there these days.

Having actually ability to spend money conveniently will be a thing for them. I skip charging locations that are not around gas station in highway, because then I can not drink a coffee or get a meal while on a trip.

But forget everything else, worldwide, 30% less new petrol powered cars this year. There is going to be significantly less need for petrol pumps every year now.

RNM GS3

Again the bulk of the revenue is from gas otherwise they would not spend hundreds of thousands of dollars on the land, pumps etc for the gas business. There is huge Capex costs plus regulatory oversight especially places like NYC. If they were generating zero profit then they would not sell gas at all. Most good operators make small margins that pays the fixed costs and then the convenience store generates the bulk of profits but only bec the gas portion pays for the real estate and all expenses…

I would not want to own any gas stations going forward, definitely not a growth business for the future.

SW17LS

How many people have to tell you how this works before you believe us?!

There is a concept in business called a loss leader. Gas is a loss leader, it brings people in but profitability depends on convenience store sales, car washes, repair shops etc. I’ve seen the P&Ls myself.

RNM GS3

LOL - nobody cares about wasting oil.

Globalization has put it into overdrive and now with cloud computing, AI and who know what else is next - energy production is going to continue to be increasing.

This EV change is a drop in the bucket compared to all other emission related industries.

RNM GS3

Ok how do gas stations get financing for their real estate and equipment?
Have you analyzed any financials for a company that operates gas stations?
They typically own more than 1 and have been around for some time. If you go to a lender without being able to show sufficient ability to repay the loan from your Main operation - not selling coffee - nobody will lend you a cent.

These companies have significant Capex and they also need to have sufficient working capital financing to buy the fuel from their suppliers. You need to be PROFITABLE for any lender to provide you financing.

SW17LS

Yes, I represent three gas station owners. I already said that.

They typically do not own the land, it’s usually on a ground lease. The fuel distributors usually do the build out and then the operator pays them back out of their profits. It’s financed by the fuel distributor, they normally don’t need to secure any outside financing. Owning the land under gas stations is a good gig.

The operator then makes their profit off of what’s left over after the franchise costs and the wholesale cost of the fuel, profit per gallon in about .08-12 cents per gallon. The revenue mainly comes from the ancillary services, and operators actually sometimes rent those out. For instance the car wash at a station might be rented by a second person and the equipment inside it belongs to them, same with a repair shop.

BayeauxLex

I can’t remember the last time I’ve gone inside of a gas station to buy something. I learned after I first started driving that the Skittles and snickers in Walmart ($0.50) is a lot cheaper than it is at the gas station🤣. Bucees only gas station I will go inside and the closest bucees to me is over 2hr 30 min away. Otherwise I’m a pay at the pump and gone guy.

SW17LS

Thats you, but that doesn't change the reality of where gas stations get their revenue.

I would pay 5 times what something costs just not to have to go to Walmart, and I refuse to go to Walmart lol

link13

I am also a pay at the pump and go guy. If I get a see cashier, I leave and go to another gas station most of the time. However, it does look like many people go into the store and come out with stuff. That adds up. There are times when I need fuel and some beers when people are coming over. I know I can get a better selection and lower prices many other places, but I am willing to pay if it saves me from another stop and standing in a longer line. Cha Ching. The store makes money on convenience and availability.

I also have a talent of finding the line in grocery stores or Target where someone ahead in line has some transaction difficulty. They may be arguing about whether they bought the organic vegetables or they need a price check. Perhaps, they just don’t know how to pay, which is astonishing. The line in a convenience store is usually 1-2 people deep and most people are familiar with the payment process. So, the convenience store makes money on me because they spare me some annoyance.

I used Shell a lot in Europe. All stations had stores. If you need to use the restroom, you have to go through the store. People buy stuff in the store sometimes just to make change for the restroom, since they are almost all pay to pee. It may be 1 EUR at a time, but it adds up. Gas stations with EV chargers will have to improve offerings in the store. Better coffee, food options, etc. and not just candy bars and chips.

SW17LS

I typically also just get gas and go, I think most people do. Sometimes if I'm thirsty I will go in and get a drink or a snack.

They wouldn't be building all of these Sheets and Buc'ees and Wawas and Royal Farms everywhere if everybody always just got gas and went lol. EV chargers are a great option in those places and a lot of them already have them. I can stop for 25 minutes to charge and have lunch and all, thats great. Way better than stopping in a Walmart parking lot to charge

AMIRZA786

The Shell near my work has a Car wash run by Loop, and I get discounted car washes and every 5th one free. Occasionally I'll pick up an energy drink, which I also get discounted and accumulate points through my Loop card