How to open a branded fuel station
27 Jun 2023
In 1913, the first ever Gulf Oil branded gas station opened in Pittsburgh, USA. Today, we have an ever-growing international network of over 1,200 Gulf branded fuel stations in over 15 countries , including in Europe, the Middle East, South America, Asia and Canada. Establishing a Gulf fuel station provides our partners with an excellent commercial opportunity – with a growing number of Dealer Owned Dealer Operated (DODO) businesses are keen to use and benefit from leveraging the Gulf brand. So, let’s take a look at how you too can open a fuel station:
What are the benefits of fuel brand licensing?
Fuel stations are a vital element of modern life and transportation. In Europe alone, they refuel more than 300 million vehicles and refresh over 760 million people with drinks, snacks and household essentials.
At Gulf Oil, our fuel station licensees are our partners - and we don’t use the word partner lightly. Your success is our success, so we support you with our strong international brand, leading lubricants and excellent service offering. We help our licensees develop their customers’ shopping experience, provide Gulf-branded merchandise and enable them to leverage our global partnerships with brands such as McLaren Automotive and Williams Racing.
How do you open a gas station?
Like any successful business, opening a gas station begins with good planning. A business plan is more than just an outline of your goals - it will help you identify, describe and analyse the specifics of your fuel station business and secure funding. There are a number of key elements your gas station business plan will need to include:
Location
The location of your fuel station has perhaps the greatest influence on your success and should be your first priority. Whilst there is a comprehensive network of gas stations across most territories of the world, there are still many strong opportunities in most countries to provide the petrol, gasoline or diesel motorists need.
Road access is of course critical, with a high volume of passing or local vehicles eager to stop and refuel. This could be near or on a motorway, highway, freeway, expressway, toll road or other major route.
Industrial parks can be profitable locations as they contain many commercial vehicles such as trucks and semi-trailer trucks which need to refuel. Up-and-coming neighbourhoods are another area to consider. They are often situated on the outskirts of major towns or cities where residents need petrol, gasoline or diesel for their longer commutes. The cost of land or real estate can also be lower.
The level of existing competition is an important factor. Rural areas often have lower competition and it is wise to avoid situating your fuel station in locations where supermarkets use discounted fuel to attract customers.
However, the presence of an existing busy gas station can be a sign that the area needs more places for motorists to buy their petrol, gasoline or diesel.
Recruiting staff is important for your fuel station, so consider the availability and commuting distance of potential employees.
Services
In reality, refilling your vehicles’ fuel tank is something which most motorists seek to do as easily as possible. A packed fuel station with long queues can eventually put customers off. Adding more petrol, gasoline and diesel pumps makes the gas-filling process more convenient and can attract more customers to spend their money. In addition to choosing the right number of fuel pumps to best serve your customers, you need to consider which other products might boost your profits.
As well as sourcing a fuel supplier, modern gas stations provide their customers with a range of services and many also operate as convenience or grocery stores.
Gulf Oil lubricants are available in over 100 countries and are a trusted brand associated with a long history of quality and motorsport success. With Gulf, your fuel station can stock our range of engine lubricants which further assist in supporting customer needs.
Choose the right franchise or brand license agreement
Many Dealer Owned Dealer Operated (DODO) fuel stations choose opt for fuel brand license to leverage an international brand like Gulf. This can have a number of advantages, including benefiting from the popularity of the Gulf Brand, becoming part of the Gulf family and operating within a proven business model.
Getting started
Starting a fuel station requires investment to purchase property, build facilities, stock up on supplies, pay employees and comply with regulations. Start-up costs include:
• Purchasing the location
• Building the fuel station
• Installing fuel tanks and pumps
• Security system
• Securing a fuel supplier, franchise or brand licenses
• Licenses, permits and insurance
• Recruiting, training and paying employees
• Initial inventory (fuel, lubricants, stock)
• Installation of related services, such as car wash, grocery store etc
A complete and well-structured business plan for your fuel station will be a major asset when convincing future financial partners to invest in your business. Depending on the country in which you establish your gas station, there are likely to be a number of statutory and legal requirements which may include:
• License to sell fuels
• Fire safety inspections
• Water discharge rules
• Licensing for the sale of alcohol or tobacco
• Restaurant and food safety regulations
The next step is creating a marketing strategy for your fuel station. When looking for petrol, gasoline or diesel, many drivers simply want to find the nearest gas station, fill up and continue their journey. Clear and vibrant signage can capture drivers’ attention and boost traffic to your pumps, especially when it features a brand as recognisable and trusted as Gulf.
Become part of the Gulf family
Though subject to modest margins, fuel stations can deliver a sizeable and sustainable profit when carefully planned and well supported by the right brand. With a trusted and growing international network, Gulf Oil is a highly recognised and successful name, with the further benefit of exciting partnerships with winning brands such as McLaren Automotive and Williams Racing. We provide our partners with a license to use our brand. If you’d like to discuss establishing a Gulf Oil gas station we’re keen to help.