opening a Forecourt Shop...where to start??

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I have recently been presented with the opportunity to lease a forcourt shop in my locality. The owner runs a petrol station, and for the last 20 years has lease the shop to a tenant who made a great success of it. The shop and pumps are run as seperate businesses.

The tenant had to give up the shop for health reasons, and the unit is now lying empty with a few fittings left behind such as ice-cream fridges, some shelving and the full counter/confectionary stand.

I am thinking of leasing the 2500 sq ft unit and re-opening the forecourt shop, and I am looking for some advice on where to start. I have some (limited) experience in the running of a forecourt shop, as I was a supervisor in one in my early 20's (ordering, returns, wages etc)

Should I opt for a franchise, or go it alone? What kind of capital would I need to raise to fit the shop out and stock etc. Can I lease equipment such as till systems, refridgeration units, deli counters etc? or do I need to buy them outright?

During early discussions with the landlord, we are looking at rent of 20k per year in rent (1st 3 months free), and 25k in years 3,4,5, with a get out clause in year 5. Also, rates are split 50/50 between the pumps and the shop, therefore I will be paying 5k per annum in rates. Am I getting a good deal here? I need some advice on whether it is worth my while even considering this! Thanks in advance!

highlandseoghan

Is the petrol station a brand at the moment eg: Texaco, Esso, Topaz?

How busy is the petrol station at the moment? is it in a good location, If it is in a good location and has good passing trade and businesses in the area a good shop and deli can be very profitable.

Cost to fit out the unit all depends on the condition of the unit at present. Is it just the fridges, till system, cash system and shelving that needs to be put in or does the whole unit need a complete fit out?

I know you can rent a lot of the equipment but I don't know if its possible to lease equipment. I would be looking at second hand equipment, there is some excellent value to be had and price can be very good on second hand equipment.

If the petrol station had a brand name I wouldn't go down the franchise road for the shop. The big brand name franchises have high charges and can leave very little profit especially starting out.

one last thing is payment for fuel made in the shop or is it done out at the pump. Forecourt shops get a lot of profit / sales because the customer comes into the shop to pay for fuel and makes a purchase on impulse.

bannerdb

highlandseoghan wrote: »

Is the petrol station a brand at the moment eg: Texaco, Esso, Topaz?

How busy is the petrol station at the moment? is it in a good location, If it is in a good location and has good passing trade and businesses in the area a good shop and deli can be very profitable.

Cost to fit out the unit all depends on the condition of the unit at present. Is it just the fridges, till system, cash system and shelving that needs to be put in or does the whole unit need a complete fit out?

I know you can rent a lot of the equipment but I don't know if its possible to lease equipment. I would be looking at second hand equipment, there is some excellent value to be had and price can be very good on second hand equipment.

If the petrol station had a brand name I wouldn't go down the franchise road for the shop. The big brand name franchises have high charges and can leave very little profit especially starting out.

one last thing is payment for fuel made in the shop or is it done out at the pump. Forecourt shops get a lot of profit / sales because the customer comes into the shop to pay for fuel and makes a purchase on impulse.

Hi there, it not one of the bigger franchises. It's a company called Great Gas. It's on the edge of town do its the first station met my those coming into town on the morning and the last one on the way home on the evening. The pumps are not as busy now since the shop closed.

The unit is in great condition. Just needs the cash register system, including phone credit and card machines, fridges and shelving and deli equipment (oven, sink unit and hot food counter).

The petrol is paid for separately at a kiosk outside which has been the way it has always been done. I will be negotiating a change in this system with the landlord however.

JuniorB

First question for any forecourt shop - Is it on the left hand side leaving town? If not forget about it...
Then look at access, parking etc .... how convenient is it? It's amazing how unconvenient some convenient shops are!

The Dagda

JuniorB wrote: »

First question for any forecourt shop - Is it on the left hand sideleavingtown? If not forget about it...
Then look at access, parking etc .... how convenient is it? It's amazing how unconvenient some convenient shops are!

What if it's on the left hand side coming INTO town?

Is it viable then? :rolleyes:

bannerdb

JuniorB wrote: »

First question for any forecourt shop - Is it on the left hand side leaving town? If not forget about it...
Then look at access, parking etc .... how convenient is it? It's amazing how unconvenient some convenient shops are!

It is on the left hand side leaving town. There is also ample parkIng at the unit.

So has anyone any ideas on how much I might need to raise to get it up and running again?

highlandseoghan

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