Industry Analysis & Industry Trends
The Gas Stations industry has experienced a moderate amount of volatility over the past five years. As more Americans returned to work, total vehicle miles increased, bolstering purchases of gasoline. Additionally, as per capita disposable income continued to improve, some consumers traded up to premium fuel, which is priced higher than lower-octane fuel. However, significant drops in the world price of crude oil resulted in substantial revenue loss in the latter half of the period. Looking forward, oil prices are expected to rise and flow through to retail prices, driving up revenue, and consumers are anticipated to absorb price increases as they return to the road. Nevertheless, volume sales of gasoline are forecast to decline, threatening industry growth... purchase to read more
Industry Report - Starting a New Business Chapter
The primary barrier to entry for the Gas Stations industry is the declining state of the industry. Due to volatile input costs and swipe fees, many establishments have operated in the red over the past five years, causing the number of enterprises to decline. Additionally, operators have struggled to drive traffic to their locations due to the growing competition from gas stations that operate on-site convenience stores and retailers that offer vehicle fuel.
The large capital investment required to establish an operation represents a barrier to entry. While the level of capital investment depends on whether the prospect chooses to franchise a station or open an independent business, both business models are costly... purchase to read more