4 ms·

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 experienc

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".

bitexploder 7y ago
This over-simplifies the nuance. Each business is a little different and it is useful to see exactly how and what is being done. It’s like hiring a business consultant and they tell you a bunch of “obvious” things you are not doing. But you start doing them and your business improves. Maybe you learned something along the way.
- tyingq 7y ago
  I suspect his hiring strategy plays into it. He hires immigrants from his own church. That probably plays into workers that will do all the little stuff that makes the difference, even at gas station wages.
  - DylanDmitri 7y ago
    I attended a service at St Mary's, and the people were both friendly and compassionate.
listenallyall 7y ago
But you're missing the nuance that exemplifies the risk. Will sales (on a low-margin product) improve enough to cover the renovation's cost (hundreds of thousands, to million+)? And the additional ongoing costs of running a "spotless" store? Gas station pumps don't wipe themselves down. And can a guy who owns a few dozen stores compete with chains that own hundreds?
- dunmalg 7y ago
  > can a guy who owns a few dozen stores compete with chains that own hundreds? 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.
  - listenallyall 7y ago
    I admit to not having many actual statistics. I agree that most are franchises as you mention. But I strongly suspect that the percentage owned by major chains -- Wawa, Sheetz, Speedway, etc, is growing rapidly. 10 years from now, I believe the independent franchiser (under 10 stores) will be very rare. 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-20190408-jkvyfplwubbn7e6etuadp6jz6i-story.html https://www.mcall.com/news/local/mc-nws-pa-wawa-expansion-20...
  - TylerE 7y ago
    There are plenty of exceptions. WaWa has already been mentioned. Sheetz has 600+ locations and does $8b a year. All corporate owned and operated.
    - dunmalg 7y ago
      >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-approves-final-order-imposing-conditions-7-elevens https://www.ftc.gov/news-events/press-releases/2018/03/ftc-a...
- mschuster91 7y ago
  > And can a guy who owns a few dozen stores compete with chains that own hundreds? 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.
  - listenallyall 7y ago
    >> a corporate-run effort where everyone just cares that their paycheck arrives 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.
megablast 7y ago
> "providing a better experience for customers can increase sales". Right, but what does that actually mean. What is he actually doing to make the businesses more attractive to customers.
aga98mtl 7y ago
A key point is that he gets a reliable stream of motivated immigrant labor to take good care of his stations. Normal owners who hire american teenagers will get worse results. This is why Shell is giving him the red carpet treatment to acquire underperforming gas stations.
thatsenough 7y ago
> this whole article can be summed up as "providing a better experience for customers can increase sales" 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!

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".

bitexploder 7y ago

This over-simplifies the nuance. Each business is a little different and it is useful to see exactly how and what is being done. It’s like hiring a business consultant and they tell you a bunch of “obvious” things you are not doing. But you start doing them and your business improves. Maybe you learned something along the way.

tyingq 7y ago
I suspect his hiring strategy plays into it. He hires immigrants from his own church. That probably plays into workers that will do all the little stuff that makes the difference, even at gas station wages.
- DylanDmitri 7y ago
  I attended a service at St Mary's, and the people were both friendly and compassionate.

listenallyall 7y ago

But you're missing the nuance that exemplifies the risk. Will sales (on a low-margin product) improve enough to cover the renovation's cost (hundreds of thousands, to million+)? And the additional ongoing costs of running a "spotless" store? Gas station pumps don't wipe themselves down. And can a guy who owns a few dozen stores compete with chains that own hundreds?

dunmalg 7y ago
> can a guy who owns a few dozen stores compete with chains that own hundreds? 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.
- listenallyall 7y ago
  I admit to not having many actual statistics. I agree that most are franchises as you mention. But I strongly suspect that the percentage owned by major chains -- Wawa, Sheetz, Speedway, etc, is growing rapidly. 10 years from now, I believe the independent franchiser (under 10 stores) will be very rare. 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-20190408-jkvyfplwubbn7e6etuadp6jz6i-story.html https://www.mcall.com/news/local/mc-nws-pa-wawa-expansion-20...
- TylerE 7y ago
  There are plenty of exceptions. WaWa has already been mentioned. Sheetz has 600+ locations and does $8b a year. All corporate owned and operated.
  - dunmalg 7y ago
    >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-approves-final-order-imposing-conditions-7-elevens https://www.ftc.gov/news-events/press-releases/2018/03/ftc-a...
mschuster91 7y ago
> And can a guy who owns a few dozen stores compete with chains that own hundreds? 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.
- listenallyall 7y ago
  >> a corporate-run effort where everyone just cares that their paycheck arrives 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.

megablast 7y ago

> "providing a better experience for customers can increase sales". Right, but what does that actually mean. What is he actually doing to make the businesses more attractive to customers.

aga98mtl 7y ago

A key point is that he gets a reliable stream of motivated immigrant labor to take good care of his stations. Normal owners who hire american teenagers will get worse results. This is why Shell is giving him the red carpet treatment to acquire underperforming gas stations.

thatsenough 7y ago

> this whole article can be summed up as "providing a better experience for customers can increase sales" 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!