Winnipeg | West Broadway Area | Development

[Bdog]

Originally Posted by Authentic_City

Who says smaller gas stations are no longer feasible? My local go to gas station is a smaller Husky with maybe 8 pumps and it’s always busy. Same goes for the West End Husky on Ellice and Arlington. These operations seem appropriately scaled for older neighbourhoods. I think there is a corporate preference on the part of Coop to develop huge stations, while the smaller Husky stations may be owner operated franchises. Also, Domo seems to survive with very small stations. I think gas stations can adapt to a variety of forms, including small format.

Gas stations are a low margin business. The profit isn't in selling gas, but in the extras. The more customers you can churn through your convenience store buying high margin hot rods, windshield washer fluid, chocolate bars, and car washes, the more profitable your location. Yes, there are still 4 pump gas stations that survive, but almost no new ones being built. Dozens of small gas stations, including Domos, have shut down over the past 30 years.

[Authentic_City]

Originally Posted by Bdog

Gas stations are a low margin business. The profit isn't in selling gas, but in the extras. The more customers you can churn through your convenience store buying high margin hot rods, windshield washer fluid, chocolate bars, and car washes, the more profitable your location. Yes, there are still 4 pump gas stations that survive, but almost no new ones being built. Dozens of small gas stations, including Domos, have shut down over the past 30 years.

Sure, of course there are bigger profits in the convenience store items, but somehow Domo has managed to survive with a business model that doesn't rely on having a huge footprint. They still operate 17 or 18 locations in Winnipeg, this is a far cry from 'not feasible.' All I'm saying is, if we want smaller gas station is urban areas, we have to zone for that, and the gas companies will find a way to make it work if they want in.

[Bdog]

Originally Posted by Authentic_City

Sure, of course there are bigger profits in the convenience store items, but somehow Domo has managed to survive with a business model that doesn't rely on having a huge footprint. They still operate 17 or 18 locations in Winnipeg, this is a far cry from 'not feasible.' All I'm saying is, if we want smaller gas station is urban areas, we have to zone for that, and the gas companies will find a way to make it work if they want in.

Yes, like I said, there are still legacy sites that survive. Drive down any major road to see how many have since closed compared to the amount that remain. The point about feasibility is that it's not feasible to build these small operations today. Most of those Domos are decades old. None that I know of have been built recently. Like Bomberjet said, the margin on fuel is cents on the litre for the operator. You need volume to make a go of it.