What It Takes to Run a Gas Station: Inside the Business Beyond the Pump

To most drivers, a gas station is just a pit stop. In, out, swipe, go. But behind the pump canopy and the flickering LED price sign is a highly active business model—one that blends logistics, retail, compliance, and cash management in ways few people ever realize.

If you’re thinking of owning or lending to a gas station, here’s what actually goes into running one day to day.

1. Equipment and Infrastructure: You’re Not Just Selling Gas

Before you ever sell a gallon, you’re managing:

• Underground Storage Tanks (USTs) – Steel or fiberglass tanks (typically 10,000–30,000 gallons) that hold gasoline or diesel. These require annual inspections, leak detection systems, and spill prevention plans.

• Dispenser Pumps and POS Systems – Each pump has embedded electronics, meters, and safety cutoffs. Pumps must be calibrated, tested for vapor recovery, and integrated with your payment system and loyalty networks.

• Convenience Store Infrastructure – Includes refrigeration, shelving, freezers, coffee stations, lottery terminals, ATMs, and often hot food equipment.

• Security Systems – 24/7 video surveillance, panic buttons, anti-skimming technology, and strong perimeter lighting.

💡 Startup costs for a new gas station with C-store: $1.2M–$2M+, depending on real estate and whether you’re brand-affiliated (Shell, Chevron, etc.) or independent.

💼 2. Daily Operations: It’s More Than Keeping the Lights On

A typical station opens at 5 or 6 a.m., and if it’s not 24/7, closes around 11 p.m. Here’s what happens in between:

• Opening Shift: Cash drawers counted, pumps turned on, food machines cleaned, temp logs started for refrigeration.

• Inventory Restock: Tobacco, beverages, snacks, coffee, and fuel levels monitored daily.

• Trash, Restrooms, Cleaning: Critical for customer retention—clean stations sell more.

• Regulatory Checks: Staff monitor for spills, make logbook entries, and handle hazardous materials (like oil-soaked rags).

• Price Watching: Station managers adjust fuel prices, sometimes multiple times per day, based on competitor signs down the street and market spot prices.

• Cash Handling: Some stations deposit up to $15,000/week in cash. That means armored car pickups or nightly drops.

👥 3. Staffing: Lean Team, Broad Responsibility

You don’t need a big team—but the people you have matter.

• Staff size: 4–10 people depending on hours and store volume.

• Roles: Most are cashiers, but they also:

  • Stock shelves and coolers

  • Clean pumps and store

  • Handle hot food or coffee counters

  • Monitor restrooms and safety

  • Handle minor disputes (e.g. pump prepay complaints)

• Turnover is high, and night shift is hard to fill. Many owners work shifts themselves to save payroll.

💡 Target labor cost: 10–15% of gross revenue.

🧾 4. Fuel Sales: High Volume, Low Margin

Fuel might bring the customer in—but it’s not where you make your money.

• Typical margin on fuel: 5–10 cents per gallon

• Volume benchmarks:

  • Strong urban stations: 100,000+ gallons/month

  • Average suburban/rural: 40,000–60,000 gallons/month

• Profit on a $50 fill-up? Maybe $2–3 after credit card fees.

Branded stations have fuel supply contracts that:

• Lock in wholesale cost + freight

• Require minimum monthly volume

• Sometimes mandate station branding and promotional materials

💡 Smart operators sell high-margin upgrades: premium fuel, additives, car washes.

🛍️ 5. Convenience Store Sales: The Real Profit Center

This is where gas stations make their money.

• C-store margins:

  • Beverages/snacks: 25–35%

  • Tobacco: 10–20% (volume driver, low profit)

  • Lottery: 5–6% on ticket sales, 1% on redemptions

  • Prepared food/coffee: up to 50% gross margin

• Inventory cycle:

  • Vendors restock soda, beer, chips

  • Employees stock candy, shelf goods, tobacco, and restrooms

• Hot food programs:

  • Branded (Subway, Hunt Brothers Pizza, Krispy Krunchy Chicken)

  • In-house (taquitos, breakfast sandwiches, fried chicken)

  • Requires food handling licenses, regular inspections

💡 C-store average monthly revenue: $40,000–$80,000, with targets of 35–45% gross margin.

🧠 6. Owner Responsibilities: The Real Job Description

Even if you don’t work the counter, here’s what you will do as an owner:

• Daily reconciliation of fuel and cash sales

• Vendor orders and contract management

• Hiring, payroll, and shift scheduling

• Insurance compliance and tank monitoring

• Marketing, loyalty programs, and digital listings

• Compliance with EPA, OSHA, and Weights & Measures rules

Most independent station owners work 50–70 hours a week in or on the business.

💰 7. Financial Metrics and Lending Insight

• Startup cost: $1M–$2M+ (new build); $400K–$1M (acquisition)

• Average gross revenue: $1.5M–$4M annually

• Net profit margin: 2%–8%, depending on fuel margins and store mix

• Break-even timeline: Often 18–36 months

• DSCR benchmark: ≥1.30 for SBA/CRE lending

🏁 Final Word: It’s Not Just Gas, It’s a Retail Machine

A gas station is part fueling hub, part convenience store, part compliance operation. It’s a real business, not a side hustle—and the ones that succeed are run like one.

If you’re evaluating or supporting a borrower in this space, look at:

• Fuel volume and pricing power

• Store product mix and margin strategy

• Owner involvement and operational systems

• Environmental compliance history

The pumps may draw them in—but it’s the inside sales and the systems behind the scenes that turn a gas station from a pit stop into a profit center.