Looking for a convenience store gas station business plan? You're in the right place.
A store with fuel pumps has to answer questions that an ordinary shop never faces. How many cents a gallon does the fuel really earn once card fees are paid? What does the underground tank system cost, and who lends against it? How much cash does the shop need to survive a few weeks of slow traffic or a wholesale price spike? A blank template gives no feel for what a believable answer looks like.
This article walks through a full sample plan for a rural highway-exit store with pumps in Allensburg, Ohio, section by section, and finishes on the financials: funding, tanks and build-out, shifts, five years of profit and cash, and a weak-year case.
What the plan gives you to work from:
- The executive summary: see how to put the site, the raise and the first three years on one page, so a reader knows the ask within a minute
- The traffic and competition section: learn how to size a stop-off market from passing vehicles, and how to describe the station three miles away fairly
- The funding table: find out what tanks, canopy and build-out cost, and how a fuel-supplier note sits beside a bank loan
- The fuel margin work: spot why gallons and cents per gallon matter more than the revenue figure, and what a 3-cent squeeze does to profit
- The compliance and operating sections: see where tank testing, insurance and delivery schedules appear in the budget
- The five-year profit, cash flow and balance sheet: follow how stock, supplier credit and debt move the figures
- The weak-year case: have an answer ready for "what if traffic is 20% light?", with the steps the owner takes
If you are planning a store with pumps, read this before writing your own. The business is fictional, so keep what fits and change the rest.
In this plan
- Allensburg's Food and Gas at the Exit
- The Site, the Owner's Plan and the Rules
- Route Traffic and the Station Down the Road
- Who Pulls In and What They Buy
- Marketing: Getting Drivers to Take the Exit
- Pricing, Fuel Margins and the Sales Routine
- Running the Fuel Island and the Store
- Who Runs the Store and Who Advises It
- Funding, Fuel Margins and Five Years of Results
- Sources
To turn this example into your own convenience store gas station business plan, use the convenience store gas station business plan template.
Allensburg's Food and Gas at the Exit
Allensburg's Food and Gas is a convenience store with four fuel dispensers, a small deli and a produce case, on a leased plot beside the Allensburg exit of the state route that runs past the town, in Allensburg, Ohio. The plan treats the route as a commuter and farm corridor between two larger towns, and the nearest fuel today is three miles off the highway at the edge of Allensburg. The store opens in January 2027.
Fuel brings the traffic, and the shop sells it at a thin margin. The profit comes from what drivers buy once they are inside. The plan sets fuel at about 74% of Year 1 revenue but only 43% of gross profit, and it models the margin in cents per gallon after card fees. Net income is therefore low as a share of sales: 2.6% of revenue in Year 5, or 16% of gross profit. Because most of each sales dollar goes straight to the fuel supplier, gross profit and EBITDA per gallon are the more useful measures here, and the plan reports them beside the usual margins.
The business raises $1,142,000: $432,000 of founder savings, a $560,000 bank term loan and a $150,000 image-funding note from the fuel supplier. Tanks, pumps and canopy take $510,000, the store build-out $200,000, opening fuel and merchandise $130,000, and legal work, permits, pre-opening wages and the launch $102,000. The remaining $200,000 is held as cash.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $5,764,100 | $6,992,430 | $7,932,355 |
| Net income after start-up costs | ($56,567) | $137,382 | $183,085 |
| Closing cash | $202,150 | $339,915 | $464,456 |
Year 1 is a small operating profit that start-up costs turn into a loss. EBITDA is negative from January to March, while the exit finds its regulars, and positive from April. Net income is $137,382 in Year 2 and $230,276 in Year 5.
A weak-year case is built in. If volume runs 20% under plan, the owner never fills three positions, shortens hours, trims marketing, takes a pay cut and pays no distributions, and the shop still closes every year with cash, though only $90,101 at the end of Year 1.
The pitch is narrow. A commuter on the route can fill the tank, buy breakfast and pick up produce at the exit without driving three miles into town. The shop does not claim to beat anyone on fuel price.
The Site, the Owner's Plan and the Rules
Legal name: Allensburg's Food and Gas, LLC, an Ohio limited liability company taxed as a corporation. Owner: Robert Cole, 100%. Site: a leased plot beside the exit, with a 3,200 square foot store built by the landlord and a fuel island and canopy built by the tenant. Opening: January 2027. The lease is in draft and the bank has reviewed the plan but has not committed.
Why a store here
Robert spent eleven years in convenience retail, the last six as a district manager for a regional chain responsible for stores that sold fuel. In that job he saw where margin goes at the pump and what makes a store near a highway earn its keep. He lives in the county and has watched drivers pass through town on the way to somewhere else.
What the store sells
| Line | How it earns | Year 1 share of revenue |
|---|---|---|
| Gasoline | About 1,000,000 gallons at $3.25, 33 cents gross a gallon | 56% |
| Diesel | About 280,000 gallons at $3.70, 27 cents gross a gallon | 18% |
| Packaged goods, drinks and tobacco | About 135,000 transactions at $9.10 | 21% |
| Deli, breakfast and produce case | About 32,000 transactions at $7.80 | 4% |
Goals to the end of 2028
- Fuel volume of 1,540,000 gallons across gasoline and diesel in 2028.
- Deli transactions of about 44,000 in 2028, up from 32,000.
- Debt cover of at least 2.5x in 2028, once bank principal repayments have begun.
- A first full year of profit after tax in 2028.
Rules the store works under
An underground tank system is regulated federally and by each state. In Ohio the state tank regulator is the Bureau of Underground Storage Tank Regulations within the Division of State Fire Marshal. The plan quotes none of its fees or thresholds. The owner takes registration, leak detection, spill and overfill protection and financial responsibility to the bureau before the first delivery, and the bank's environmental consultant reviews the site first. A baseline environmental study is in the budget so that the shop has a record of the ground it took on. Pumps are likely to be subject to state inspection of their measuring accuracy, and tobacco sales and any beer and wine need licenses or permits from the issuing offices; the plan applies for each before opening and takes the exact requirements from those offices. Beer and wine are not in the revenue lines, so a permit would be upside. Lottery sales are applied for but earn no commission in the forecast. The tenant owns the tanks, and the lease leaves removal at the end of the term with the tenant; a lender will ask about that, and no removal reserve sits inside the five-year forecast.
Route Traffic and the Station Down the Road
What the exit has to work with
Allensburg sits where a state route is the main road through the area. The plan puts 8,000 vehicles a day past the exit, local trips included, a planning figure that a state traffic count would replace. The mix matters: commuters between the two larger towns in the morning and evening, farm vehicles and trucks in planting and harvest, and weekend travelers in summer. Year 1 needs about 320 fuel stops a day, 4.0% of passing vehicles, Year 3 about 440, 5.5%, and Year 5 about 480, 6.0%. The 8,000 figure is held flat, so that rise relies on the exit building regular customers and sits at the high end for a rural route.
Why the exit is open
The only fuel nearby is three miles away at the edge of town, which means a commuter has to leave the highway and double back. Roadside stalls along the route sell flowers, produce and baked goods in season but have no fuel and short hours. Supermarkets in the larger towns have wider ranges but are out of the way for someone heading home.
Who a driver could use instead
| Alternative | What it offers | Why a driver picks it | How the exit store differs by design |
|---|---|---|---|
| The station at the edge of town | Established local customers | Habit, and it is already in town | On the highway, with a deli and a produce case |
| Roadside stalls | Seasonal produce, flowers, baked goods | Freshness and a seasonal stop | Open every day with fuel and food together |
| Supermarkets in the larger towns | Wider range | Weekly shopping | Quick stop on the way, no detour |
| Fuel stations in the larger towns | Larger fuel areas, more brands | Price and brand loyalty | First fuel stop going either way |
The table describes categories, not a ranking. The plan quotes no competitor's prices because they change every week.
Strengths, weaknesses, openings and threats
| Strengths | Weaknesses |
|---|---|
| Only fuel stop at the exit | Thin fuel margin sets the profit ceiling |
| Operator with fuel retail experience | Single site and single supplier contract |
| Breakfast and produce under one roof | Slow first months while the exit builds |
| Openings | Threats |
|---|---|
| Farm and contractor fleet accounts | A rival station opening at the exit |
| Commuter breakfast | Wholesale price spikes that squeeze margin |
| Weekend summer travelers | Tank or pump failure and clean-up cost |
Who Pulls In and What They Buy
The morning commuter
The commuter heading to work on the route stops for gasoline and coffee, a breakfast sandwich and perhaps a lottery ticket or a pack of cigarettes. A visit is quick, the average ticket is $9.10 in the store, and the habit repeats most weekdays. This customer is the core of the deli line.
The farm and contractor account
A farm or contractor buys diesel by the tank and keeps a monthly account, paid on 15-day terms. The average diesel fill is 22 gallons, and fleet buyers can come in daily during harvest. They value an exit that trucks and trailers can turn around in, and the shop sizes the lot with that in mind.
The weekend and summer traveler
Summer weekend travelers fill up before or after a trip and buy drinks, snacks and produce. The case holds seasonal local produce from nearby growers, which few stations in the area sell.
The local resident
Allensburg's residents buy fuel, groceries and a lunch. They make up the steady background of the day rather than its peaks.
What every group asks for
A pump that works, a card reader that does not time out, a clean restroom and a short line.
Marketing: Getting Drivers to Take the Exit
Spend and what it should return
Year 1 marketing is $44,000: $20,000 of launch spending from start-up funds and $24,000 of running costs. That is 0.8% of Year 1 revenue; running costs alone are 0.3% from Year 2. The plan has no customer-acquisition cost in the online sense; the work is to turn passing vehicles into stops, and every percentage point of the 8,000 vehicles a day is worth about 80 stops.
| Item | Year 1 spend | What it should do |
|---|---|---|
| Exit and mainline signage (launch) | $8,000 | Make the stop visible from the highway before the exit |
| Roadside boards for the first three months (launch) | $6,000 | Tell drivers in both directions that fuel is at the exit |
| Opening-week fuel promotion (launch) | $6,000 | Pay for a price discount that gets first-time stops |
| Rewards app and card | $6,000 | Bring commuters back and measure repeat visits |
| Breakfast and coffee promotions | $5,000 | Build the morning habit that the deli depends on |
| Local sponsorships (school sports, the county fair) | $4,500 | Reach residents and farm customers |
| Fleet and farm account outreach | $3,000 | Win the first diesel accounts |
| Search and map listings | $2,500 | Appear when drivers look for fuel on the route |
| State exit signs where eligible | $3,000 | Cover fees for the highway's official signs, subject to the state program's rules |
Marketing milestones
- January 2027: store open, signs up and the opening-week promotion running.
- April 2027: about 23,000 gallons a week across both fuels and the first month of positive EBITDA.
- August 2027: peak summer month, gasoline revenue of $334,965.
- October 2027: diesel peaks at $122,698 with harvest traffic.
Pricing, Fuel Margins and the Sales Routine
Fuel is a price you do not set
Wholesale cost moves every day. The shop prices fuel within a cent or two of the station in town, resets prices each morning, and treats the cents per gallon it earns as the number to watch. The plan holds the pump price flat in every year so that fuel revenue shows volume alone. At 33 cents gross on gasoline, card fees of about 6 cents and the brand fee of 2 cents leave about 25 cents; diesel earns about 18 cents on the same arithmetic. Each cent of gross margin is worth about $12,800 in Year 1 and $17,400 in Year 3.
Where the profit sits
In-store lines earn about 36% gross margin against about 16% on the whole sales mix. Packaged goods, drinks and tobacco carry 31% gross margin, and the deli 60%. The store pushes breakfast, a fresh-made counter and the produce case because these earn the highest margin per transaction.
Routine
- Check the fuel price against the town station and the wholesale quote each morning.
- Run the breakfast line from 5 a.m., with the deli cook prepping before the first shift.
- Reorder fast-moving drinks and snacks twice a week and deli goods daily.
- Reconcile fuel inventory against deliveries and sales every day.
- Call farm and contractor accounts monthly and bill them on 15-day terms.
Running the Fuel Island and the Store
The site
The 3,200 square foot building holds the sales floor, the deli line, a walk-in cooler, a small back office and a storeroom. Outside, a canopy covers four dispensers, or eight fueling positions. Three underground tanks hold 24,000 gallons of gasoline across two tanks and 12,000 of diesel; three of the four dispensers sell gasoline and the fourth is a high-flow diesel dispenser on a wide lane for trucks. In August the shop sells about 3,300 gallons of gasoline a day, so the gasoline tanks hold about a week; diesel at its October peak sells about 1,070 gallons a day against a tank of 12,000.
Fuel deliveries and stock
A supplier delivers gasoline two or three times a week in peak months and diesel about once a week. Tank levels are read every morning, and the automatic tank gauge feeds the leak-detection records. The shop pays for fuel within about 2 days, usually by electronic transfer. Opening fuel is $60,000, opening merchandise $70,000, and stock on the balance sheet runs from $178,279 at the end of Year 1 to $204,448 at the end of Year 5.
Environmental compliance
Tank testing, leak monitoring and compliance cost $11,000 in Year 1 and rise to $13,500. A repair reserve starts at $4,000 and grows to $20,000 as equipment ages. Insurance of $38,000 in Year 1 includes general liability, property and pollution cover for the tanks. Any release would be reported to the state regulator and the insurer immediately, and the baseline study at purchase protects the shop against claims for earlier contamination. The plan does not model a major clean-up; that risk is carried by insurance and by the state's financial-assurance arrangements, which the owner confirms with the bureau.
Payments and shrink
Card fees are the second-largest cost after payroll: $116,908 in Year 1. Pay-at-pump readers must meet the card networks' security rules, which the processor confirms, and a fuel-loss and shrink allowance of $19,880 covers theft, spoilage and gauge variance.
Software and suppliers
A point-of-sale system linked to the pumps, an inventory system and accounting software cost $7,000 in Year 1. Merchandise comes from a regional wholesaler and a snack and drink route distributor; the deli buys from local suppliers and the produce case from nearby growers in season.
Who Runs the Store and Who Advises It
Robert Cole, owner-operator
Robert has an operations background in convenience retail and no experience building a fuel site, so the plan buys that knowledge. He manages the store, handles ordering and the fuel price, and takes $62,000 a year.
Staff
Robert and five full-time staff open the store: an assistant manager, three cashier shifts and a deli cook, with three part-time cashiers for weekends, the rush hours and relief cover. A part-time second deli cook joins in month 14 and an evening lead in month 27. Wages start at $29,000 for full-time cashiers, with 3% annual raises from Year 2.
Where the team is thin
Robert has not borrowed at this size, has not run a tank-compliance program himself and has not negotiated a supply contract. The plan covers these with an accountant who reviews cash and fuel margin monthly, a petroleum equipment contractor on a service agreement and a lawyer who reviews the supply contract and the lease before they are signed.
If Robert is out
The assistant manager can run the store for a few days, which is why the role is full-time. Fuel ordering is the single task that would suffer, so a second person is trained on the ordering platform in the first month.
The lenders
The bank takes a personal guarantee and a lien on the equipment, and receives quarterly accounts. The fuel supplier's note is repaid through the supply contract and carries a minimum-volume clause. The terms in the plan are planning figures, and counsel reviews both contracts before signature.
Funding, Fuel Margins and Five Years of Results
Everything below traces to one five-year model, monthly detail for 2027 and a single column per year after that. The funding and site figures come first because on a fuel site the capital is most of the story.
What the site costs and who pays for it
| Use of funds | Amount |
|---|---|
| Underground tanks, piping, leak detection and four dispensers | $360,000 |
| Canopy, lighting, brand signage and card readers at the pump | $150,000 |
| Store build-out: coolers, shelving, deli line, point of sale | $200,000 |
| Opening merchandise and deli stock | $70,000 |
| First fuel delivery to fill the tanks | $60,000 |
| Tank registration, pump permits, tobacco and lottery licensing | $14,000 |
| Legal, environmental baseline study, engineering and loan closing | $42,000 |
| Wages and training before opening | $26,000 |
| Launch: exit signage, highway boards, opening week fuel promotion | $20,000 |
| Cash reserve for the ramp and the fuel price swings | $200,000 |
| Total uses | $1,142,000 |
| Source of funds | Amount |
|---|---|
| Robert Cole's savings and home-equity proceeds | $432,000 |
| Bank term loan | $560,000 |
| Fuel supplier image-funding note | $150,000 |
| Total sources | $1,142,000 |
The site needs $1,142,000. Robert Cole puts in $432,000 of savings and home-equity proceeds, 38% of the total. A bank lends $560,000 over 15 years at 9.75%, interest-only for the first six months, secured on the equipment and a personal guarantee. The fuel supplier advances $150,000 toward the canopy, signage and dispensers as an image-funding note at 3%, repaid over ten years through the supply contract. Supplier programs differ widely and often carry a minimum-volume clause and a repayment trigger if the shop leaves the brand, so the figure is a planning figure, and the bank is told about the contract before it commits. The bank rate is likewise an example figure, not a quote. The $200,000 reserve is sized to the weak-year case below, where month-end cash falls to roughly $70,000 at its lowest, because the shop cannot tell in advance how fast the exit fills, fuel suppliers to a new independent often want payment within days, and wholesale fuel can move several cents between the order and the pump price. A larger raise would only sit idle as cash.
Pump, counter and cost figures behind the forecast
- Gasoline sells 1,000,000 gallons in Year 1, about 2,700 a day, rising to 1,470,000 in Year 5. Diesel sells 280,000 gallons, rising to 440,000, for farm equipment, contractors and trucks. The plan puts 8,000 vehicles a day past the exit, local trips included; a state traffic count would replace that figure. On it, the shop makes about 320 fuel stops a day in Year 1 (4.0% of passing vehicles) and 440 in Year 3 (5.5%), counting 9.5 gallons a fill for gasoline and 22 for diesel.
- Pump prices are held flat at $3.25 a gallon for gasoline and $3.70 for diesel in every year, so revenue growth in fuel is volume only and the model measures the shop in cents per gallon. Gross margin before costs is 33 cents on gasoline and 27 cents on diesel, a planning figure that real wholesale prices would replace. Card fees take 1.9% of fuel sales, about 6 cents on gasoline and 7 cents on diesel, and the brand contract costs 2 cents a gallon. That leaves about 25 cents a gallon on gasoline and 18 on diesel, or $298,566 on 1,280,000 gallons in Year 1.
- In-store sales are counted in register transactions. Packaged goods, drinks and tobacco run 135,000 transactions at an average of $9.10 in Year 1, about 370 a day, rising to 191,000 by Year 5 at 3% price rises. Deli, breakfast and the produce case run 32,000 transactions at $7.80, growing to 60,000. Together that is about 460 register transactions a day against 320 fuel stops, which depends on local residents and walk-in breakfast trade as well as drivers who fuel. In-store sales are 26% of revenue in Year 1 and, with gross margin of about 36%, 57% of gross profit. Beer and wine are not in the lines, so a permit would add to them.
- Cost of goods is 69% of packaged-goods sales and 40% of deli sales. The forecast applies the Year 1 blended cost of goods rate (83.8%) to every year, so the later years do not credit the shop for the shift toward in-store sales. Working out each line separately would add about $36,000 of gross profit in Year 3 and $83,000 in Year 5, so Years 2 to 5 are conservative.
- Card fees on in-store sales run at 2.4%. Shrink, spoilage and fuel loss take 1.2% of in-store sales and 0.05% of fuel sales. Farm and fleet accounts pay on 15-day terms, and the allowance for bad debt is $2,000 in Year 1. Card settlements average 3 days of receivables. Fuel is paid for within about 2 days, since a new independent has no trade history to earn longer terms, and merchandise suppliers are paid on short terms as well. The shop carries about 1% of cost of goods in stock on top of the $130,000 opening fill.
- Insurance is $38,000 in Year 1 for general liability, property and pollution cover for the tanks; workers' compensation sits in the 27% payroll on-cost. Testing, leak monitoring and compliance run $11,000 a year, and a $4,000 repair reserve for pumps, tank hardware and line fixtures rises to $20,000 as the equipment ages. The pollution cover and the state financial-responsibility requirements are for the insurance broker and the state tank regulator to confirm before the lease is signed. The plan sets no reserve for removing the tanks at the end of a 15-year lease, which falls outside the forecast.
- Payroll adds 27% to wages for payroll taxes, health contributions, workers' compensation and paid leave (15% for part-time roles). Wages in the shift table are launch rates, and 3% pay raises are charged as a separate line from Year 2. Robert draws $62,000 as operator and manager.
- Rent is $8,000 a month in Year 1 for the land and a 3,200 square foot building that the landlord builds, with 3% annual increases under a 15-year lease. The tenant owns the tanks, pumps, canopy and store build-out. Utilities run $52,000 in Year 1 because of refrigeration, lighting and canopy power.
- Ohio is generally understood not to levy a corporate income tax, so the model charges the 21% federal corporate rate only. Start-up costs are left out of the tax calculation, which overstates tax slightly. A commercial activity tax on gross receipts applies in its place; the plan models 0.26% of receipts above $3,000,000 plus $1,500 of local fees. That is a cautious figure, because the exclusion amount has changed over time and may now be higher, and part of fuel receipts may be treated differently, so the real charge may be lower and the CPA confirms it. Ohio municipal income taxes may also apply, which the CPA confirms. An S corporation election would move the federal tax to the owner's return.
- Owner distributions of $60,000, $120,000 and $170,000 start in Year 3, only after cash and retained earnings can cover them. The bank loan and the supplier note run their full course, so the shop holds cash while it still owes the lenders.
Revenue by product line
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Gasoline | $3,250,000 | $3,900,000 | $4,387,500 | $4,615,000 | $4,777,500 |
| Diesel | $1,036,000 | $1,258,000 | $1,443,000 | $1,554,000 | $1,628,000 |
| Packaged goods, drinks and tobacco | $1,228,500 | $1,480,934 | $1,679,829 | $1,829,662 | $1,956,247 |
| Deli, breakfast and produce case | $249,600 | $353,496 | $422,026 | $477,303 | $526,738 |
| Total revenue | $5,764,100 | $6,992,430 | $7,932,355 | $8,475,965 | $8,888,485 |
| Growth on prior year | – | 21% | 13% | 7% | 5% |
Fuel is 74% of Year 1 revenue and 43% of gross profit, which is why the revenue line says little about how well the shop is doing. Gasoline is the volume anchor, diesel adds about a fifth of the gallons at lower margin, and the in-store lines bring in 57% of gross profit on 26% of revenue. Deli is the fastest-growing line, from $249,600 to $526,738 by Year 5, because breakfast and the produce case build on a regular morning stop.
Month by month in 2027
| Month | Gasoline | Diesel | Packaged goods, drinks and tobacco | Deli, breakfast and produce case | Total revenue | EBITDA |
|---|---|---|---|---|---|---|
| Jan 2027 | $179,423 | $53,986 | $63,423 | $11,995 | $308,827 | ($14,170) |
| Feb 2027 | $185,154 | $55,622 | $67,905 | $13,575 | $322,256 | ($11,988) |
| Mar 2027 | $223,176 | $68,359 | $83,211 | $16,026 | $390,772 | ($860) |
| Apr 2027 | $249,811 | $86,004 | $93,443 | $18,185 | $447,443 | $8,344 |
| May 2027 | $281,037 | $99,325 | $105,366 | $20,631 | $506,359 | $17,913 |
| Jun 2027 | $307,488 | $91,496 | $116,698 | $23,170 | $538,852 | $23,191 |
| Jul 2027 | $328,060 | $91,169 | $124,534 | $24,200 | $567,963 | $27,919 |
| Aug 2027 | $334,965 | $99,746 | $127,143 | $24,689 | $586,543 | $30,937 |
| Sep 2027 | $319,611 | $115,685 | $122,617 | $24,867 | $582,780 | $30,325 |
| Oct 2027 | $308,590 | $122,698 | $118,389 | $24,575 | $574,252 | $28,940 |
| Nov 2027 | $286,548 | $84,135 | $108,523 | $23,990 | $503,196 | $17,399 |
| Dec 2027 | $246,137 | $67,775 | $97,248 | $23,697 | $434,857 | $6,300 |
Fuel follows the driving season. Gasoline revenue is $179,423 in January and $334,965 in August; diesel peaks at $122,698 in October with harvest traffic. EBITDA is negative from January to March while the exit is still finding its regulars, then positive from April to December. Month-end cash is lowest in Apr, roughly $113,000 before the build-up of stock and supplier balances is counted, after the first quarter's losses.
Shift and payroll schedule
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Owner-operator and manager | $62,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Assistant manager | $40,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Cashier, early shift | $29,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Cashier, day shift | $29,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Cashier, closing shift | $29,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Deli cook and prep | $32,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Weekend cashier (part time) | $16,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Rush-hour cashier (part time) | $16,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Relief cashier (part time) | $16,000 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Second deli cook (part time) | $17,000 | Month 14 | – | 0.5 | 0.5 | 0.5 | 0.5 |
| Evening lead | $33,000 | Month 27 | – | – | 1 | 1 | 1 |
| Total payroll incl. on-costs | $335,870 | $353,791 | $390,345 | $397,330 | $397,330 |
Robert and five full-time staff open the doors, covering the 5 a.m. to 11 p.m. trading day: three cashier shifts, an assistant manager and a deli cook and prep position, with part-time weekend, rush-hour and relief cashiers. Robert works the floor and the books. A part-time second deli cook joins in month 14 as breakfast grows, and an evening lead in month 27 as late-day traffic rises. Part-time roles show as 0.5 and carry the salary actually paid.
Profit and loss
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $5,764,100 | $6,992,430 | $7,932,355 | $8,475,965 | $8,888,485 |
| Cost of goods (fuel at wholesale, merchandise and deli food) | ($4,827,905) | ($5,856,732) | ($6,643,996) | ($7,099,314) | ($7,444,833) |
| Gross profit | $936,195 | $1,135,698 | $1,288,359 | $1,376,651 | $1,443,652 |
| Payroll incl. on-costs | ($335,870) | ($353,791) | ($390,345) | ($397,330) | ($397,330) |
| Rent | ($96,000) | ($98,900) | ($101,900) | ($105,000) | ($108,100) |
| Utilities | ($52,000) | ($54,000) | ($56,000) | ($58,000) | ($60,000) |
| Marketing | ($24,000) | ($22,000) | ($22,000) | ($23,000) | ($24,000) |
| Insurance | ($38,000) | ($40,000) | ($42,000) | ($44,000) | ($46,000) |
| Professional fees | ($12,000) | ($12,500) | ($13,000) | ($13,500) | ($14,000) |
| Software subscriptions | ($7,000) | ($7,500) | ($8,000) | ($8,400) | ($8,800) |
| Card processing fees (fuel and in-store) | ($116,908) | ($142,028) | ($161,224) | ($172,578) | ($181,296) |
| Brand and supply-contract fees (per gallon) | ($25,600) | ($30,800) | ($34,800) | ($36,800) | ($38,200) |
| Ohio commercial activity tax and local fees | ($8,687) | ($11,880) | ($14,324) | ($15,738) | ($16,810) |
| Tank testing, leak monitoring and environmental compliance | ($11,000) | ($12,000) | ($12,500) | ($13,000) | ($13,500) |
| Tank and pump repair reserve | ($4,000) | ($8,000) | ($12,000) | ($16,000) | ($20,000) |
| Shrink, spoilage and fuel-loss allowance | ($19,880) | ($24,592) | ($28,138) | ($30,768) | ($32,999) |
| Farm and fleet account bad debt | ($2,000) | ($3,000) | ($3,500) | ($3,800) | ($4,000) |
| Repairs, cleaning and snow removal | ($14,000) | ($16,000) | ($17,000) | ($18,000) | ($19,000) |
| Equipment replacement (coolers, deli line, point of sale) | $0 | ($4,000) | ($8,000) | ($12,000) | ($15,000) |
| Phones, supplies, dues and training | ($5,000) | ($5,400) | ($5,700) | ($6,000) | ($6,300) |
| Annual pay raises (3% a year) | $0 | ($10,614) | ($23,772) | ($36,843) | ($49,868) |
| EBITDA | $164,250 | $278,693 | $334,156 | $365,894 | $388,449 |
| Depreciation | ($48,000) | ($48,000) | ($48,000) | ($48,000) | ($48,000) |
| Interest | ($58,740) | ($56,792) | ($54,403) | ($51,800) | ($48,961) |
| Income tax | ($12,077) | ($36,519) | ($48,668) | ($55,880) | ($61,213) |
| Net income before start-up costs | $45,433 | $137,382 | $183,085 | $210,215 | $230,276 |
| Start-up costs expensed at opening (legal, permits, pre-opening wages, launch) | ($102,000) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($56,567) | $137,382 | $183,085 | $210,215 | $230,276 |
Year 1 earns $45,433 after depreciation, interest and tax and loses $56,567 once the $102,000 of start-up costs is expensed. From Year 2 net income runs from $137,382 to $230,276 in Year 5. Income tax is $12,077 in Year 1 because the model does not deduct start-up costs. Margins on revenue are low because about 72% of Year 5 sales are fuel: EBITDA is 2.9% of revenue in Year 1 and 4.4% in Year 5, and net income is 2.6% in Year 5. Against gross profit, Year 5 EBITDA is 27% and net income 16%. EBITDA per gallon of fuel sold is about 13 cents in Year 1 and 20 cents in Year 5, a figure that also carries the in-store profit. Fuel earns 18 to 25 cents a gallon after fees on a price above $3, so the net margin on revenue stays low whatever the owner does, and it would take a much larger in-store share to lift it. Payroll is 36% of gross profit in Year 1 and 31% in Year 5 once pay raises are counted. A 3-cent drop in the margin per gallon in Year 3 would remove about $52,200 of gross profit, about a sixth of that year's EBITDA.
Cash in and out
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($207,768) | $170,635 | $219,801 | $251,688 | $273,323 |
| Tanks, pumps, canopy and store build-out | ($710,000) | $0 | $0 | $0 | $0 |
| Funding received | $1,142,000 | $0 | $0 | $0 | $0 |
| Debt principal repaid | ($22,082) | ($32,871) | ($35,260) | ($37,863) | ($40,702) |
| Owner distributions | $0 | $0 | ($60,000) | ($120,000) | ($170,000) |
| Net change in cash | $202,150 | $137,765 | $124,541 | $93,825 | $62,621 |
| Closing cash | $202,150 | $339,915 | $464,456 | $558,281 | $620,903 |
Closing cash is positive in all five years, starting at $202,150. Principal on the supplier note starts at once and on the bank loan in month 7, which totals $22,082 in Year 1. The tank, canopy and build-out spending of $710,000 is paid from the raise in month 1. Separately, Year 1 operating cash is negative by $207,768, which covers the opening stock fill, start-up costs, the first-quarter losses and receivables. Distributions begin in Year 3 and total $350,000 over Years 3 to 5.
Balance sheet, tank stock and supplier credit
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $202,150 | $339,915 | $464,456 | $558,281 | $620,903 |
| Accounts receivable | $47,376 | $57,472 | $65,197 | $69,665 | $73,056 |
| Fuel in the tanks and stock on the shelves | $178,279 | $188,567 | $196,440 | $200,993 | $204,448 |
| Tanks, pumps, canopy and store build-out (net) | $662,000 | $614,000 | $566,000 | $518,000 | $470,000 |
| Total assets | $1,089,805 | $1,199,954 | $1,292,093 | $1,346,940 | $1,368,407 |
| Fuel and merchandise supplier balances (accounts payable) | $26,454 | $32,092 | $36,405 | $38,900 | $40,794 |
| Debt (bank term loan and fuel-supplier note) | $687,918 | $655,047 | $619,788 | $581,925 | $541,223 |
| Paid-in capital | $432,000 | $432,000 | $432,000 | $432,000 | $432,000 |
| Retained earnings | ($56,567) | $80,815 | $203,900 | $294,115 | $354,390 |
| Total liabilities and equity | $1,089,805 | $1,199,954 | $1,292,093 | $1,346,940 | $1,368,407 |
Break-even, cents per gallon and debt cover
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | 2.9% | 4.0% | 4.2% | 4.3% | 4.4% |
| Net margin (before start-up costs) | 0.8% | 2.0% | 2.3% | 2.5% | 2.6% |
| Payroll incl. pay raises as share of revenue | 6% | 5% | 5% | 5% | 5% |
| Revenue per full-time equivalent at year end | $768,547 | $874,054 | $881,373 | $941,774 | $987,609 |
| Average monthly revenue | $480,342 | $582,703 | $661,030 | $706,330 | $740,707 |
| Monthly revenue needed to cover operating costs | $396,068 | $439,711 | $489,581 | $518,598 | $541,402 |
| Debt service cover (EBITDA / interest + principal) | 2.0x | 3.1x | 3.7x | 4.1x | 4.3x |
Operating costs are covered when average monthly revenue exceeds the "Monthly revenue needed" row in the table: Year 1 averages $480,342 against $396,068 needed, and Year 3 averages $661,030 against $489,581. Once interest and principal are added, about $80,800 in Year 1, the monthly revenue needed rises to about $437,500, which leaves a cushion of 9% in Year 1 and, with debt service of about $89,700, 19% in Year 3 (revenue needed about $535,600). Cost of goods is about 90 cents of every dollar of gasoline sales and 93 cents of diesel, so the break-even is a volume and margin figure more than a revenue one. Debt cover is 2.0x in Year 1 and 3.1x in Year 2.
Traffic and volume 20% short
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $4,611,280 | $5,593,944 | $6,345,884 | $6,780,772 | $7,110,788 |
| Net income before start-up costs | ($88,181) | $9,492 | $79,173 | $85,937 | $99,270 |
| Net income after start-up costs | ($190,181) | $9,492 | $79,173 | $85,937 | $99,270 |
| Closing cash | $90,101 | $104,572 | $188,717 | $280,298 | $383,457 |
This case cuts every revenue line by 20% in every year, which means about 65 fewer fuel stops a day in the first year than the base case plans for. The response: the second deli cook, the rush-hour cashier and the evening lead are never hired, hours are trimmed by an hour a night, marketing falls by 20%, Robert takes a 20% pay cut, stock is bought to the smaller sales line, replacement spending is halved, and no distributions are paid. The shop loses money in Year 1, earns $9,492 in Year 2 and ends every year with cash in the bank, at no less than $90,101 at the end of Year 1; month-end cash is lowest at roughly $70,000 in the spring of Year 1. Net income and closing cash are lower than the base case in every year. Year 5 cash looks closer to the base case only because the base case pays $350,000 of distributions and this case pays none. Equity ends Year 1 at $241,819, so a bank net-worth covenant would need to be discussed in advance. Debt cover is 0.2x in Year 1 of this case and 1.3x in Year 2, which would breach a typical covenant, so the owner would ask the bank for a longer interest-only period or add equity. A 3-cent fall in fuel margin on top of the volume loss would take about $37,000 of gross profit in Year 2 and turn that year's small profit into a loss, which the Year 2 cash of $104,572 can absorb. A 20% fall in volume might also trip a supplier minimum-volume clause, which this model does not charge.
Sources
- U.S. Environmental Protection Agency, underground storage tank program (40 CFR Part 280): federal technical standards for tank systems, including leak detection, spill and overfill protection and financial responsibility. The plan quotes no thresholds from it.
- Ohio Department of Commerce, Division of State Fire Marshal, Bureau of Underground Storage Tank Regulations: administers the state tank program. The plan quotes no fees or financial-responsibility amounts; the owner takes them to the bureau.
- Ohio Department of Taxation, commercial activity tax: a tax on gross receipts, which the plan models with a cautious rate and exclusion to be confirmed by a CPA.
- The traffic count, pricing, fuel margins and staffing figures in this plan are the example business's own. No third-party market statistics are quoted.
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