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On-Campus Gas Station Feasibility Study

This document discusses a study assessing the feasibility of constructing a gas station on a university campus. It would address the university's interests in profits from leasing or franchising the gas station and allocating revenues to campus. It would also benefit students through convenience and accompanying facilities like shops, restaurants and ATMs. Most importantly, the study would evaluate the gas station's social role as historically active zones for gatherings essential to cultural development, especially for advancing organizations. The scope is limited to the university's North Lebanon campus to assess services compared to existing options.

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dannyelachi
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22 views3 pages

On-Campus Gas Station Feasibility Study

This document discusses a study assessing the feasibility of constructing a gas station on a university campus. It would address the university's interests in profits from leasing or franchising the gas station and allocating revenues to campus. It would also benefit students through convenience and accompanying facilities like shops, restaurants and ATMs. Most importantly, the study would evaluate the gas station's social role as historically active zones for gatherings essential to cultural development, especially for advancing organizations. The scope is limited to the university's North Lebanon campus to assess services compared to existing options.

Uploaded by

dannyelachi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

INTRODUCTION

Since its emergence in September 5 1885, gas stations has been both, opposed and applauded.
Opposed by those against automobile culture and its effect on the environment, and applauded
by Modernist visionaries, street culture enthusiasts, as well as entrepreneurs. Despite the global
investments in countless studies searching for an alternative, gas remains the ultimate source of
energy that is heavily consumed by people on a regular basis. In this sense given the inevitability
of gas consumption, we ought to recognize the advantages at hand, and make use of them within
a controlled environment, as an attempt to minimize its disadvantages.

STATEMENT OF THE PROBLEM


The purpose of this study was to assess the feasibility of constructing an on campus gas station,
identify its potentials, and the methods through which we can employ them within a particular
setting, a university in this case.

SIGNIFICANCE OF THE STUDY


The study concerns a university’s two major components, management and students, addressing
three major interests of theirs. First of which is, profits that can be gained by investing in a gas
station through either leasing or franchising, and in return, allocating the revenues elsewhere on
campus. Second of which is, its convenience, as besides the time and money saving it allows,
students can also benefit from facilities that accompanies gas stations, such as commercial shops,
restaurants, and ATMs. Finally, and most importantly, the study evaluates gas station’s social
approach. They have been historically identified as the center of contemporary life, as their
function goes beyond a temporary stop. Besides their technicality, gas stations are socially active
zones for gatherings that are essential for the cultural fabric of any organizations, especially for
those advancing.

SCOPE OF THE STUDY


This study was limited to NDU-North Lebanon Campus located in Barsa, El koura, as to assess
the feasibility of constructing an on campus gas station, and evaluate the services it offers
compared to existing ones.
REVIEW OF RELATED LITERATURE
Siegel (2014), the financial consultant and founder of BizBen for advertisement and marketing,
Dublin, California, states that investing in gas stations is one of the world’s most profitable
businesses, given the appropriate conditions (Location, License, Infrastructure). He explains that
no matter how people try to cut back on certain items, gas remains a necessity as long our
societies remain car-based, there will always be demand on gas stations, hence their growing
numbers. Although, some might consider researches and developments that have been conducted
by the fuel industry in order to introduce new alternative fuel options for automobiles, as a threat,
Siegal disagrees, claiming that it’s a threat for gasoline itself rather than to gas stations, “sources
of energy might differ, stations are here to stay”.
Katz (2018) writer at Boston Herald, The Atlanta Journal Constitution and MTV,
describes gas stations as an opportunity for phenomenal cash flow. A business that is still on the
rise, the US alone accommodates more than 150,000 gas stations, with an average annual income
that ranges between $60,000-$500,000, varying from small businesses to mega oil companies.
One of its major strengths is that no expertise is required for operation, you can even lease it for
big corporations to run them for you. You can also lease the convenience stores to food outlets;
123,000 out of the 150,000 in the US.
Feldman (2016), Founder of Feldman Consulting Enterprises, states that over the past
decade, entrepreneurs have always displayed their interest in the fuel industry whether in
founding their own companies or purchasing existing ones. Speedway Petroleum has bought all
Hess’s gas stations for over $2.6 billion. And Pilot bought all gas Flying J. gas stations in 2009.
Not to mention fuel retailers such as Love’s who expanding rapidly. He further explains that for
gas stations to thrive, they must adopt one of the three following, the Truck Stop model, Middle
of Nowhere, and the Busy Main Street in Town. The first involves choosing to build a gas station
on a large, but inexpensive land. The focus in this model is to sell large quantities of fuel at a
very low price. The second model chooses to serve people in remote areas at higher prices as
they have no other choice. Whereas owners in the third model chooses to serve people in
crowded urban cities and concentrates on advertisement and exposure. All three strategies are
successful as long as the site and financial analysis is done properly.
Giovannoni (2016), professor in the department of architecture at Florence University,
Italy, has emphasized the social role of gas stations within its surrounding setting. In his article
“The Social Life of Gas Stations”, he explains how these are more than spaces to fill up your
tanks, they are spaces bound to social life. Giovannoni conducted further research on gas
stations, or “non-places” as identified by French urbanist, through analyzing several. One
prototype was Total. Erg Petroleum located in south-west of Florence. The station included a
resto/bar and was surrounded by a population of 60,000 people. The study was built on five
criteria 1. Owner Ship (budget and scale) 2. Control (supervision) 3. Civility (maintenance and
wellbeing) 4. Physical Configuration (exposure) 5. Animation (the nature of activities).
The results demonstrate that more than 40% of visitors came for reasons other than filling up
their tanks, such as, eating, drinking, and simply hanging out. However, the rate of visitors
varied throughout day times and days of the week, reaching its peak during weekends. In this
sense, Giovannoni interpreted his findings in terms of two basic principles. The first is
Publicness, as these spaces are free of “active control”, exposed and easy to access, and hence,
conveys a sense of security. The second is the Spatial and Social Relationship between gas
stations and their setting, as they tend to lend themselves to be used as a neighborhood facility.

Common questions

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A university must evaluate considerations such as potential profitability from leases or franchises, environmental and community impact concerns, convenience and safety for students, alignment with institutional goals, and logistical issues like site selection and integration with campus infrastructure .

Siegel argues that while alternative fuels might replace gasoline, they do not threaten the existence of gas stations, as the infrastructure, strategic location, and continued consumer demand for refueling services will persist regardless of the fuel type used .

Katz justifies their lucrativeness by highlighting their significant cash flow potential, the large number of gas stations operating as profitable enterprises with varying income scales, and the lack of required specialized expertise or direct management, making them accessible investments .

The key factors contributing to gas station profitability include strategic location, operational model (e.g., truck stop, urban, or remote), management efficiency, and diversified offerings beyond fuel, such as food outlets and convenience stores, which maximize foot traffic and revenue .

Businesses like Speedway Petroleum and Pilot Corporation expand through acquisitions and strategic geographic positioning. Speedway bought Hess’s stations to strengthen its presence, allowing operational and market scale benefits, while Pilot expanded by acquiring Flying J., optimizing regional market coverage .

Constructing an on-campus gas station offers various benefits, such as potential profits from leasing or franchising that can be allocated to other campus needs, convenience for students who can save time and money, and additional facilities like commercial shops and ATMs . However, challenges include managing environmental impacts and community concerns about promoting automobile culture .

Giovannoni notes the importance of the spatial and social relationship, where gas stations serve as accessible neighborhood facilities that encourage social interactions, providing public spaces that inspire community security and involvement without active control, emphasizing their integrative community role .

Giovannoni highlights gas stations as significant social spaces within communities, often utilized for more than refueling. They serve as hangout spots offering amenities like bars and restaurants, attracting visitors for social interactions. He underscores their public nature, being easily accessible without active control, hence enhancing security and community engagement .

Feldman identified three gas station models: the Truck Stop model focuses on selling large quantities of fuel at low prices in sprawling areas; the Middle of Nowhere model serves remote locations with little competition at higher prices; the Busy Main Street model targets urban settings, concentrating on marketing and accessibility . Each caters to distinct demands—bulk fuel for highways, necessity fuel for isolated areas, and convenience for city users.

The document describes location as integral to gas station success, with factors like strategic site selection aiding in customer accessibility. Models focus on varying contexts, from highways to urban centers, ensuring relevance and profitability based on consumer patterns .

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