Arco AM/PM Stations are convenience stores paired with fuel stations in the United States. To be clear, Arco is the fueling station while AM/PM is the convenience store brand. These two brands have been in business since 1978 and continue fueling cars but also hungry tummies.
How much does it cost to open Arco AM/PM Station?
Good news! Arco AM/PM Stations are open for franchising. The financial requirements to open up this franchise start with a liquid capital of $800,000 to $1,200,000 and a net worth of $3,000,000. The initial investment range for this convenience store and fuel chain is $440,291 to $10,405,152 with a franchise fee between $40,000 and $70,000.
Financial Requirements and Fees
|Fees / Expenses||Financial Amount|
|Liquid Capital||$800,000 to $1,200,000|
|Total Investment||$440,29 to $10,405,152|
|Franchise Fee||$40,000 to $70,000|
Aside from the fees mentioned above, Arco AM/PM stations require royalty fees between 11% to 14%, in addition to ad royalty fees of 5.5%. The term of agreement to run this chain is 3 to 20 years and the franchise term is also renewable. Before you sign on with this franchise, make sure you’re comfortable with handing over as much as 19% of total revenue.
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Are you a veteran that’s served in the military? Arco AM/PM Stations also offer 50% off on franchise fees for veterans who would wish to apply as franchise operators with them. They offer in-house financing that covers startup costs and equipment costs.
Average Sales / Revenue per Year
Arco AM/PM Stations reported $1.6 billion in revenue in the year 2019. As to their numbers for 2021, not much official data is known.
Arco AM/PM Station Franchise Facts
|Subsector||Food and Beverage; Gasoline Stations|
Arco AM/PM Stations first opened their doors back in 1978 by the Atlantic Richfield Company. But instead of being just a motor fueling station, they added a convenience store alongside it calling it AMPM. The first store was located in Southern California.
Arco was then bought by BP America in 2000. The franchise now has more than 1,000 locations in the United States specifically in California, Oregon, Washington, Nevada, Arizona, Ohio, Illinois, Georgia, and Florida. They also have locations outside of the United States in Brazil and Costa Rica.
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AM/PM stores are best known for the broad selection of grab and go food that they carry. They have a bakery section that offers freshly baked breads and pastries. They also serve fresh sandwiches, burgers, corndogs, fruits, chips, nachos, pizza, and yogurt. Most location have more than 100 beverages to choose from, including brewed coffee with an extensive add-on section of creamers, iced drinks, and 24 flavors of slushies with over 40 drink combinations.
Arco AM/PM Station menu prices are affordable and they always have deals and specials that customers can check out from time to time. For instance, you can buy any size of their coffee and get a breakfast sandwich for only $1. The chain also offers all sorts of buy 1 get 1 deals on hot food items. Full meal deals such as a sandwich, a beverage, and chips costs around $4.
Once you’re accepted as an Arco AM/PM Station franchise operator, you’ll go through an intensive boot camp covering all aspects of convenience store marketing, food safety, inventory control, and customer service.
The company makes sure that even new franchisees will be ready to manage this fast-paced business. And with the commitment and devotion to running an Arco AM/PM Station, the brand says franchisees can expect the following perks:
- 25 years or more of industry recognition
- Performance driven business Model that’s also customer focused
- Brand awareness
- Support from corporate
- Access to Arco AM/PM Station’s worldwide network
- Marketing and advertising programs that are award-winning
- Continued education via their training programs
The goal of Arco AM/PM Stations is to become the leader in Petroleum and Convenience Store Industry. BP America is also geared up in getting more Gen Z and Millenial customers by adding CBD snacks, bitcoin-enabled ATMs, and increasing their marketing through social media.
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Arco AM/PM Stations is an ideal stop-over place for many wanting to fuel up their vehicles and grabbing a quick bite to eat. AM/PM has great deals with low prices and the variety of items on their food and drink menu is plenty that customers may find something new whenever they visit.
I used to be employed about two blocks from an AM/PM locations in Southern California and can confirm they are extremely convenient and cheap. I wasn’t getting paid much at the time and would frequently walk down to the convenience store for an afternoon pick-me-up or fast-lunch of sushi rolls or a hot dog.
How Much Does Arco AM/PM Station Make in Profit?
BizBuySell shows a San Diego County Arco AM/PM Station at $9 million in annual gross revenue. The C-store alone does $130,000 per month with a 0.35 profit margin. They also claim that its annual sales in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is over $450,000.
Please do note that these numbers can vary per store since every location’s sales depend on the area, economy, and competition surrounding it. Still this business listing offers some perspective into the incredible sales volume possible with this concept.
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Advantages of an Arco AM/PM Station Franchise
Before you decide to run a franchise, proper research must be done so you know what you’re signing up for. In this guide, we’ve listed down some of the advantages you can expect when you do run an Arco AM/PM Station in your area.
People rely on their mobile devices a lot and businesses have gone the extra mile to develop apps and loyalty programs to reach their customers to encourage customers to keep coming back. Arco AM/PM Station has done the same thing by releasing an app where customers can check for good deals and gather reward points that can be redeemed for free food, drinks, or discounts on gas.
To get customers to download the app, Arco AM/PM Station makes it clear that some deals are only available through the app. The company even hands out prizes.
Food and Beverage
As mentioned above, Arco AM/PM Station is mostly known for their food since they have a wide array of snacks and meals made available for customers. The choices don’t just range from chips to baked breads. You can get nachos and slices of pizza. You can also have breakfast sandwiches and burgers. They also release seasonal specials such as their Guava Pastry for the month of November.
So if you run an Arco AM/PM Station, you can expect customers will enter the store looking to fill their stomachs either with the signature treats Arco AM/PM Stations are known for or the organic brewed coffee and cold beverages the convenience chain offers.
Considering this food is low-cost, it appeals to consumers on the lower-end of the economic scale. Even during a recession, the c-store business could continue to thrive as employees fill-up with gas on their way to work.
Arco AM/PM Station is the very definition of a convenience store. One can easily buy their food and load up on gas and then be on the road in no time. The offers at the convenience store aren’t just the usual items either. They cover everything from meals, snacks to dessert. Their coffee bar is also a joy to explore with a variety of coffees from light roast to dark and of course dozens of sweeteners, creamers, and other flavors that can be added. Many stores are open 24 hours to serve customers around the clock.
Challenges of an Arco AM/PM Station Franchise
As with all other businesses, Arco AM/PM Station also has its challenges. Here are a few that you should expect before going into business.
Limited Non-food Options
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Arco AM/PM Station has a lot of food options but other general merchandises are hard to find. You’ll get the usual sunglasses, cleaning aids, and headphones. But the chain mostly stocks up on food such as snacks and beverages and not on other things.
Arco AM/PM Station has a mascot known as TOOMGIS which is short for their tagline “Too Much Good Stuff”. Though businesses are known for having a mascot to represent their brand and also to help market their business, Toomgis can come off scary and the design for the mascot can be overwhelming.
Toomgis is shown as being a 7’6” mascot with a body filled with chips and snacks, hands made out of cinnamon rolls, a beard that is consisted of cheese corn puffs, a hotdog for a mouth, a burger for a nose, and cookies for cheeks. The design may be intended to represent all things that Arco AM/PM Station offers but the brand could have done this better and not make Toomgis look so strange.
There seem to be a lot of crimes happening at Arco AM/PM Stations. Though this is not the chain’s fault, it cannot be helped that their name gets dragged into news reports. For instance, recent news of an assault just happened at an Arco AM/PM Station in Turlock.
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Another report is of a robbery in a location in Whittier. The crime rates could probably be because convenience stores are the only businesses that are open late at night. And if this could be the reason for it, it’s best to prepare extra security and safety measures when operating for 24 hours.
Reports of Bad Customer Service
There have been claims of bad customer service in Arco AM/PM Stations. A location in Mountlake Terrace in Washington has 2-star reviews of the place claiming that the staff at night was very rude. One customer claims he was overcharged.
If you were to franchise an Arco AM/PM Station, you’ll want to hire a self-motivated manager to oversee the operations of the store and make sure the business is operating on all-cylinders. This is extremely important if you run a 24-hour store since you won’t be able to be on-site all the time.
Is the Arco AM/PM Station Franchise Right For You?
An Arco AM/PM Station is ideal for you if you’re into franchising a fuel station and a simple food convenience chain. The basic operations of this business are simple, but that doesn’t it’s not a complex business to operate. There are all sorts of problems that could arise from gas pumps breaking down to theft.
What is an alternative Arco AM/PM Station franchise?
If you’re looking for more franchise options, check out 7-Eleven. They are recognized globally as a convenience store chain and some areas also include gas stations. The investment to open a 7-Eleven is estimated at $1,635,200. You may check out how much it will cost to start a 7-Eleven here.
The convenience store industry in the United States is huge especially when it’s partnered with motor fuel businesses. In 2020, overall convenience store sales in America reached $532.9 billion with $298.8 billion coming from motor fuel sales. So if you’re thinking of franchising a convenience store this is a concept that continues to thrive despite innovation in the automobile sector with electric vehicles. Hopefully, this guide helps you determine if owning a convenience store franchise is the right choice for you.