A drive-thru convenience store is a kind of retail outlet that offers a small selection of products, such as packaged meals and medicines, and it usually opens late for the benefit of customers who want to drive-thru and make purchases. It is normal to find convenience stores close to a busy road, in a bustling neighborhood, in an urban setting, or close to a train station or other transportation hub.
The market size, measured by the revenue of the convenience stores industry, is $37.3 billion, and the industry is expected to grow by 1.8 percent.
Steps on How to Start a Drive-Thru Convenience Store
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Conduct Market Research
Conducting market research is essential to the success of any business. It offers information about your industry and competitive environment, and also informs you of how the target customers and prospects you want to reach feel about your company. With propper research, you can figure out who and where your consumers are, and the people who may likely buy from you. This will enable you to understand the mind of your target market and adjust to their needs, in order to win their loyalty and also win them over to your brand.
a. Who is the Target Market for Drive Thru Convenience Store?
Convenience stores cater to all clients in the region who want to make purchases, but they are pay more attention to those who need to go beyond regular business hours, such as swing shift workers and rapid shoppers in need of snacks and other associated things.
b. Is Drive Thru Convenience Store a Profitable Business?
Yes, the drive-thru convenience store is a profitable business. The average gross profit margin of a drive-through convenience store is about $450,000 and above.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the drive-thru convenience store business.
d. Who are the Major Competitors?
- Right-A-Way Drive Thru
- Big O Drive-Thru
- Fastlanedrive-Thru
- S&D Drive Thru
- Express Drive Thru
- Fast Lane Drive Thru
- Park Drive-Thru
- Country Corner Drive Thru
- Fresh Drive-Thru Dairy Stores
- A&D Beverage Station
- Route 170 Drive Thru
- Big Easy Drive Thru
- Wawa Drive Thru
- The Express Convenience Store
- Farm Stores Island Park
- OPIE Drive-Thru Grocery
- Eagle Express Drive Thru
- G 3 Drive Thru LLC
- RGV Texas Drive Thru
- Temo’s Stop N Drive Thru.
e. Are There County or State Regulations or Zoning Laws for Drive Thru Convenience Store Business in the United States?
Yes, there are county and state regulations and zoning laws for drive-thru convenience stores in the United States. FDA and the Tax and Trade Bureau of the Treasury Department have regulatory responsibilities for the sector. Note that FDA must register every retail store, so all drive-thru convenience stores are open to arbitrary, ad hoc inspections by the agency.
f. Is There a Franchise for Drive Thru Convenience Store Business?
Yes, there are franchise opportunities for drive-thru convenience stores, and here are some of them;
- Farm Stores Franchise
- Gateway Newstands
- Express G’s Drive Thru.
g. What Do You Need to Start a Drive Thru Convenience Store Business?
- A feasibility report
- Business and marketing plans
- Business licenses and permits
- A good store facility
- EIN (Employer Identification Number)/Federal Tax ID Number
- A corporate bank account
- Equipment
- Supplies
- Employees
- Startup capital.
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Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a drive thru convenience store business are;
Creative Drive Thru Convenience Store Business Name ideas
- Fast Track© Drive Thru Convenience Store, Inc.
- Shop Connect® Drive Thru Convenience Store, LLC
- Mike Piston© Drive Thru Convenience Store, Inc.
- Andy Scoles® Drive Thru Convenience Store, Inc.
- Mason Gray™ Drive Thru Convenience Store, Inc.
- Brescia Allies™ Drive Thru Convenience Store, LLC.
- All and Above© Drive Thru Convenience Store, LLC
- Jean Murphy® Drive Thru Convenience Store, Inc.
- Peter Princewill© Drive Thru Convenience Store, Inc.
- The Converge© Drive Thru Convenience Store, Inc.
- Charles Wilberforce® Drive Thru Convenience Store, LLC
- Uriel Richie® Drive Thru Convenience Store, LLC
- Emerson Group™ Drive Thru Convenience Store, LLC
- Tim Wisdom© Drive Thru Convenience Store, Inc.
- Larry Morgan® Drive Thru Convenience Store, Inc.
- Jerry Wits™ Drive Thru Convenience Store, Inc.
- Pally Dickens™ Drive Thru Convenience Store, Inc.
- Moving Zone© Drive Thru Convenience Store, Inc.
- One Stop® Drive Thru Convenience Store, LLC
- We Move™ Drive Thru Convenience Store, Inc.
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Register Your Business
a. What Kind of Structure is Best for Drive Thru Convenience Store Business?
There are several options as it relates to settling for a business structure for a drive-thru convenience store, but the one most players in this line of business usually consider is an LLC. This is because it is a norm for business owners to protect themselves from any kind of lawsuit.
b. Steps to Form an LLC
- Choose a name for your LLC
- File articles of organization
- Choose a registered agent
- Decide on member vs. manager management
- Create an LLC operating agreement
- Comply with other tax and regulatory requirements
- File annual reports.
c. What Type of License is Needed to Open a Drive Thru Convenience Store Business?
- General Business License
- Health and Safety Permit
- Food and Drinks Handlers’ License
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections
- A dumpster placement permit that specifies where you can put your trash dumpster outside your convenience store
- A valet parking permit if you plan to offer valet parking for customers.
d. What Type of Certification is Needed to Open a Drive Thru Convenience Store Business?
You don’t need any certifications to open a drive-thru convenience store business.
e. What Documents are Needed to Open a Drive Thru Convenience Store Business?
The following are legal documents that are required if you want to run a drive-thru convenience store in the United States;
- DBA
- EIN
- Business and Liability Insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Health and Safety Permit
- Food and Drinks Handlers’ License
- Business License
- Business Plan
- Operating Agreement for LLCs
- Insurance Policy
- Online Terms of Use
- Online Privacy Policy Document
- Memorandum of Understanding (MoU).
f. Do You Need a Trademark, Copyright, or Patent?
There is no need to register for trademark or intellectual property protection if you are starting a drive-thru convenience store business. The nature of the business allows you to manage the business without having any reason to sue anyone for using your intellectual property unlawfully.
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Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Drive-Thru Convenience Store Business?
The costs for a small to medium-scale drive-thru convenience store can range from $50,000 to over $250,000.
b. What are the Costs Involved in Starting a Drive Thru Convenience Store Business?
- The total fee for registering the business in the United States – $750
- Expenses for obtaining licenses and permits, as well as the accounting services totaling – $1,200
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for a total amount of $80
- The cost of hiring a business consultant – $2,500
- Insurance (general liability, workers’ compensation, and property casualty) coverage at a total premium – $2,400
- The cost of accounting software, CRM software, and payroll software – $1,500
- The cost of payment of rent for 12 months – $125,600
- The cost of facility remodeling – $25,000
- Other start-up expenses including stationery – $500
- Phone and utility deposits will cost – ($2,500)
- The cost of start-up inventory – $76,027
- Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
- The cost of counter area equipment (countertop, sink, ice machine, etc.) – $6,000
- The cost of store equipment (cash register, security, ventilation, signage) – $3,150
- The cost of launching the is website – $600
- The cost of the grand opening party – $3,000
- Miscellaneous – $2,500.
c. What Factors Determine the Costs of Opening a Drive Thru Convenience Store Business?
- The size of the drive-thru convenience store
- The choice of location
- The required licenses and permits
- The type of facility
- The type of products retailed in the drive-thru convenience store, and additional services offerings
- The cost of hiring and paying a business consultant
- The cost of branding, promotion, and marketing of the drive-thru convenience store business
- The cost of furnishing and equipping the drive-thru convenience store business – facility
- The cost of the insurance policy covers
- The cost of registering the business
- Source of supplies and ongoing expenses
- Cost of recruiting and training staff
- The cost of the purchase and customizing of uniforms, shoes, and caps for the employees
- The cost of the grand opening of the drive-thru convenience store business.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Building a new facility is not necessary for a drive-thru convenience store business, but it will help you if you have the funding. The idea is to construct a facility that will fit into your business goals and vision.
e. What are the Ongoing Expenses of a Drive Thru Convenience Store Business?
- Supplies (inventory expenses)
- Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees.
f. What is the Average Salary of your Staff?
- The store manager (Owner) – $45,000
- Accounting clerk – $30,630,000
- Sales boys/girls – $26,000
- Cleaners – $25,000
- Security guard -$24,000 Per year.
g. How Do You Get Funding to Start a Drive Thru Convenience Store Business?
- Raising money from personal savings
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank
- Source for soft loans from your family members and friends.
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Write a Business Plan
a. Executive Summary
Moving Zone© Drive Thru Convenience Store, Inc. is a neighborhood store that will be located in a centralized area, between a residential neighborhood and a busy business district in downtown East Liverpool, Ohio.
We conducted our feasibility studies and market survey, and we came to the conclusion that East Liverpool is the right location for us to launch our drive-thru convenience store. We will make sure that our customer service is unmatched throughout all of East Liverpool, Ohio, as well as selling quality and reasonably priced goods in our drive-through convenience shop.
We understand that our customers are the reason we are in business, therefore we will do our best to ensure that they are happy, and always get what they are searching for any time they visit our convenience store.
b. Products and Service
- Tobacco products
- Beer and wine
- Lottery tickets
- Non-alcoholic beverages
- Gas and automotive supplies
- Packaged snacks and candy
- Over-the-counter medication
- Eggs and dairy products
- Over-the-counter medications
- Dry and canned goods
- Meats and produce.
c. Mission Statement
Our mission is to establish a drive-thru convenience store, that will make available different types of products in the United States and other parts of the world, at every given time to our customers and a place where people can freely window shop.
Vision Statement
Our vision is to establish a standard and secured drive-thru convenience store business in East Liverpool, Ohio that will be the go-to place for all shoppers.
d. Goals and Objectives
The goals and objectives of a drive-thru convenience store business are to provide a retail outlet where customers can go to buy their groceries and other items at their own convenience.
e. Organizational Structure
- Shop Manager (Owner)
- Accounting Clerk (Cashier)
- Sales Girls/ Boys
- Cleaners
- Security Guard.
Marketing Plan
a. SWOT Analysis
Strength:
- A good location for a drive-thru convenience store business
- Experienced and qualified employees and management
- Access to finance from business partners
- Availability of different types of goods
- A reliable and efficient method of attending to customers without causing unwanted traffic.
Weakness:
- Financial constraints may restrict the publicity and branding of the business
- A new business that will be competing with well-established drive-thru convenience stores and franchises in the city
- Inability to retain our experienced and qualified employees longer than desired.
Opportunities:
- The increasing number of people who prefer the drive-thru concept of shopping within our market space
- Online market, services, technologies, and the opening of new markets.
Threat:
- The arrival of a new drive-thru convenience store business within our market space
- Economic uncertainty
- Liability issues
- The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict laws that can strangulate new businesses of this nature.
b. How Do Drive Thru Convenience Stores Make Money?
Drive-thru convenience stores make money by selling the following products;
- Tobacco products
- Beer and wine
- Lottery tickets
- Non-alcoholic beverages
- Gas and automotive supplies
- Packaged snacks and candy
- Over-the-counter medication
- Eggs and dairy products
- Dry and canned goods
- Meats and produce.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales and Advertising Strategies
- Introduce your drive-thru convenience store business by sending letters, alongside your brochure to corporate organizations, car owners, taxi companies, transport companies, households, sports organizations, gyms, schools, socialites, celebrities, and other key stakeholders throughout the city where your business is located.
- Advertise on the internet blogs and forums, and also on social media like Twitter, Facebook, and LinkedIn to get your message across.
- Create a website for your business, so as to give it an online presence
- Directly market your products
- Advertise your business in community-based newspapers, local tv and radio stations
- List your business on yellow page ads (local directories)
- Encourage the use of word-of-mouth marketing (referrals).
Financial Projection
a. How Much Should You Charge for your Product/Service?
The type of goods, quantity, and brand of the goods will determine the amount it will be sold.
b. How Much Profit Do Drive Thru Convenience Store Business Owners Make a Year?
A small to medium-sized drive-thru convenience store business owner, on average can earn anywhere from $60,000 to $160,000.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the drive-thru convenience store
- The types of products retailed in the shops
- The location of the drive-thru convenience store
- The management system of the drive-thru convenience store
- The business approach of the drive-thru convenience store
- The advertising and marketing strategies adopted by the drive-thru convenience store
- The number of years the drive-thru convenience store in business.
d. What is the Profit Margin of a Drive Thru Convenience Store Product/Service?
The profit margin of a drive-thru convenience store is not usually fixed. It falls between 15 percent (the lowest margin) and over 50 percent.
e. What is the Sales Forecast?
- First Fiscal Year: $320,000
- Second Fiscal Year: $450,000
- Third Fiscal Year: $540,000
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Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Drive-thru convenience store Business?
- The demography of the location as it relates to people who shop on a regular basis
- The demand for the products offered by drive-thru convenience stores in the location
- The purchasing power of businesses and the residents of the location
- Accessibility of the location
- The number of drive-thru convenience stores, and retail outlets in the location
- The local laws and regulations in the community/state
- Traffic, parking, and security et al.
b. What State and City are Best to Open a Drive Thru Convenience Store Business?
- Las Vegas, Nevada
- Los Angeles, California
- Brattleboro, Vermont
- Port Richey, Florida
- Silver Spring, Maryland
- Boston, Massachusetts
- Rowland Heights, California
- East Liverpool, Ohio
- Chicago, Illinois
- Richmond, Virginia
- Green Bay, Wisconsin
- Island Park, New York.
c. What Equipment is Needed to Operate a Drive Thru Convenience Store?
You should budget to buy POS and receipt issuing machines, storage hardware (bins, rack, shelves, food case), counter equipment (countertop, sink, ice machine, etc.), (Flat Screen TVs, sound systems, DVD players, deep fryers, deep freezers, blenders, and store equipment (cash register, security, ventilation, signage).
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Hire Employees
When hiring employees for a drive-thru convenience store, you should hire a competent shop manager (you can occupy this position), account clerk, sales boys/girls, cleaners, and security guard.
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Launch the Business Proper
No drive-thru convenience store opens without first planning an opening party to formally launch the business. If you have a limited budget, you may want to host a soft party.
If not, you may want to host a grand party for everyone at the location where your drive-thru convenience store will be located. With proper launching, you will officially notify the residents of your city that your drive-thru convenience store is open for service.
a. What Makes a Drive Thru Convenience Store Business Successful?
- Choose a good location and facility to launch the business
- Make sure your drive-thru convenience store is stocked with varieties of goods (give your customers options)
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your business
- Leverage all available online and offline platforms to promote your drive-thru convenience store business.
b. What Happens During a Typical Day at a Drive-thru convenience store?
- The store is opened, cleaned, and arranged
- Previously sold goods are restocked
- The goods are properly cleaned and arranged or displayed
- The drive-thru convenience store is set for services
- When customers drive-thru, they are attended to and the products they are looking for are sold to them
- The store is closed for the day, accounts are balanced and the workers go home.
c. What Skills and Experience Do You Need to Build a Drive Thru Convenience Store Business?
- Excellent customer services skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining skill
- Work experience in a retail environment
- Experience in managing people
- Experience in business administration
- Experience in identifying goods that are fast selling
- Experience in handling different types of retail software.