Oh, no! EVs could cause beverage industry woes

Discussion in 'Fred's House of Pancakes' started by pilotgrrl, Apr 4, 2018.

  1. pilotgrrl

    pilotgrrl Senior Member

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    If drivers of electric cars aren’t stopping at gas stations to fill their tanks, the opportunities for impulse purchases inside at the convenience store could dry up.

    That’s a real possibility, according to Morgan Stanley analysts who wrote that convenience stores could see a hit to beverage sales as more electric cars hit the road.

    A Morgan Stanley report published Wednesday noted that electric vehicles make up a small fraction of all vehicles on the road today. But rapid growth in the future is not unreasonable.

    Not only would convenience stores that sell beverages take a hit, but so would beverage companies — the most vulnerable of which could be Monster Beverages, which boasts 63 percent of U.S. sales from gas and convenience stores, the analysts wrote.

    The report also noted that alcoholic drinks and tobacco products sold at convenience stores may not take the same hit. That’s because many customers getting gas buy beverages impulsively and to drink right away. And tobacco products are addictive enough to keep customers coming back.

    Lenard said fuel accounts for only 40 percent of profit for gas stations, meaning most money is made inside the store. Drinks make up a bulk of those sales: A survey by the National Association of Convenience Stores showed that nearly half of all convenience store customers mainly went into a convenience store to buy a beverage.

    Still, Lenard and others in the industry say electric cars won’t pose a major challenge to convenience stores until they are driven en masse. Statistics from InsideEVs show that from December 2010, when the Nissan LEAF and Chevy Volt models went on sale, to February 2018, there were 418,000 battery electric vehicle sales and 374,000 plug-in hybrid sales. In that time, the combined market share of all electric vehicles as a percent of new vehicle sales was 0.7 percent.

    Full article here: https://wapo.st/2GtGAxw

    Posted via the PriusChat mobile app.
     
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  2. Trollbait

    Trollbait It's a D&D thing

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    What is it about a plug and a battery make people less thirsty?
    I can see less drinks being bought locally, as people need to stop getting gasoline less and less often, but they still need to stop on long trips.
     
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  3. bisco

    bisco cookie crumbler

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    gas stations are going to have to rethink their whole business model, but probably not for another generation, so there's plenty of time to convert to charging stations and a cafe for waiting.
     
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  4. bwilson4web

    bwilson4web i3 and Prime

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    Well the auto-pilot drive home will help the late night bar business.

    Bob Wilson
     
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  5. KennyGS

    KennyGS Senior Member

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    There are still drive through beer distributors here in Pennsylvania. They're open-minded when it comes to alternately powered vehicles.(y)

    [​IMG]
     
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  6. JimboPalmer

    JimboPalmer Tsar of all the Rushers

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    I am not sure what they are smoking at Morgan Stanley, but EVs need to recharge more often than Gas cars need to refill. The Sayle Oil Station near me has 8 Tesla Superchargers, those folks are going to eat snacks and drink cokes like mad waiting for their cars to recharge. Good news, it has a Baskin Robbins.

    I tend to eat convenience store food and drink convenience store beverages when away from home, the local Double Quick is not where I spend money, but at a Marathon station 50 miles away. (Clean restrooms)

    It could just be me, does anyone eat and drink at local gas stations?
     
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  7. fuzzy1

    fuzzy1 Senior Member

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    I lean heavily towards real grocery stores. Much better selection, much better prices, and most have customer restrooms too.

    Certain big chains also have their own fuel pump islands, with lower fuel prices than the convenience stations too. But when traveling in new areas, this works best with a passenger with a smartphone. My spouse doesn't do smartphones, so this works well only when I'm riding shotgun.
     
  8. Tideland Prius

    Tideland Prius Moderator of the North
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    Charging stations can have convenience stores too. Man, someone's looking at too narrow a scope.

    People still need to stop for a drink or to use the restrooms so there still will be the need for rest stops and having charging stations could increase the likelihood of tourists using that rest stop.
     
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  9. Trollbait

    Trollbait It's a D&D thing

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    WaWa has good subs, but I don't remember getting a sub or coffee and refueling at the same time. I'm sure others do though.

    Selling gas is a somewhat recent business for WaWa. So if the convenience store is compelling enough for people to stop at without needing to fuel up, they should be fine with more plug ins on the road.

    True for stations along long trip routes, but stations that serve mostly locals will see less traffic as people charge at home or work. Those could be in trouble with a mostly EV fleet, but they'll also see a loss of gasoline revenue in addition to beverages.
     
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  10. bwilson4web

    bwilson4web i3 and Prime

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    Ahhhh ... 7-11 half-smoked with crispy skin from hours on the rollers with yellow mustard and sauerkraut.

    Bob Wilson
     
  11. srellim234

    srellim234 Senior Member

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    It's up to those food and beverage companies as well as the gas station companies to adjust to the marketplace or they won't survive. We may see a lot more places like this popping up along the highways. They happen to have gas as a supplement to the food and drink, not the other way around.

    EddieWorld - Yermo l Food, Drinks, Gas & the Cleanest Restrooms
     
  12. breakfast

    breakfast Active Member

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    There's an even greater scope here for beverage makers. There is no reason *any public charger* couldn't have an integrated beverage vending machine. I mean, the power's there, and the vending machine can already process payments... so why not have a Coca Cola-branded vending machine/Level 2 charger - for 2 or 3 bucks, get a 24 ounce Coke or Dasani and a 2 hour charge, right? What's more American than that? ;) :)

    [​IMG]
     
  13. fuzzy1

    fuzzy1 Senior Member

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    That is a lot of equipment (dispensing system and refrigeration) for something limited to a sales rate of just 1 potential impulse purchase per 2 hours. I'm not imagining enough sales volume to make it economically viable.
     
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  14. breakfast

    breakfast Active Member

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    Agreed - I'm thinking something more like 7 or 8 chargers in the middle of a parking lot surrounding a central pay station/vending machine
     
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  15. vvillovv

    vvillovv Active Member

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    If anyone can figger out how to make money the old fashion way, it Morgan Stanley

    I just had a coke, now I need to brush an floss :D
     
    #15 vvillovv, Apr 5, 2018
    Last edited: Apr 5, 2018
  16. Tideland Prius

    Tideland Prius Moderator of the North
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    Indeed but they do free up valuable land in urban areas for housing, commercial or recreational (e.g. park) use.
     
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  17. RRxing

    RRxing Senior Member

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    The only time I need to go inside is to get a gas receipt when the pump is out of paper - which is way too often... :(
     
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  18. Zythryn

    Zythryn Senior Member

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    Since I started driving electric, I have spent much less than I used to at convenience stores.
    In the last year and a half, when I moved to a location with no convenience stores directly on my route, I have spent nothing aside from 2 or 3 PowerBall tickets.
    I do spend the money elsewhere, but IMO, this will be an issue.
     
  19. Trollbait

    Trollbait It's a D&D thing

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    People making their coffee at home hasn't seemed to hurt Starbucks.
     
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  20. srellim234

    srellim234 Senior Member

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    It's actually happened here before. When I was growing up we often had a corner with four gas stations. Those who didn't adjust and start offering anything besides gas, tires and oil are all gone while the ones who diversified their businesses to include a convenience store, clean public restrooms, etc. both survived and thrived as the others went bye-bye. Those vacant corner locations have all been replaced by either a fast food place, a chain drug store or a small mini strip of multiple businesses.

    If it happens again, so be it. The marketplace will adapt and fill those voids.
     
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