Wednesday, December 20, 2023

Gas Stations -> Convenience Stores -> Restaurants?

Gas stations have always offered complementary services. In the 40s and 50s it was mechanic services, in the 60s, and 70s, it was wiper and oil changes, and in the 80s and 90s it was convenience store items. Pay-at-the-pump may have given drivers less of a reason make in-store purchases. Ease of substitution across gas stations makes the search for higher margin complements a profitable strategy.


However, the current trend is for more gars stations/convenience stores to offer fresh food. This may be the result of declining demand in convenience store mainstays - cigarette smoking is steadily declining and more fuel efficient cars go longer between fill ups.Perhaps the transition from selling packaged Slim Jims and Corn Nuts to preparing fresher foods is to get a leg up on the transition to EVs.

But a shift to electric vehicles should go well with the food business if it means consumers spend longer stretches of time charging their vehicles. 


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