Absentee-Owned Gas Station With Property In Tunica, MS

Description

Gas station and convenience store for sale with the underlying real estate included. The business combines inside convenience-store sales, prepared food, fuel commissions and ancillary income from an ATM and air machine.

Inside sales

• Average inside sales: approximately $70,000 per month
• Summer inside sales: approximately $90,000 per month
• Reported inside gross margin: approximately 35%
• Deli sales: approximately $15,000 per month

The store includes a commercial kitchen with a vent hood, grill and salad bar, allowing the current operation to generate a meaningful portion of revenue from prepared food.

Fuel operation

• Average fuel volume: approximately 32,000 gallons per month
• Average stated margin: approximately $0.18 per gallon
• Average monthly fuel profit: more than $5,700
• Jobber agreement: 50/50 commission structure
• Approximately 16 years remaining on the current jobber contract

The seller states that the jobber currently pays fuel-related credit card processing fees and is responsible for maintenance and repairs on the fuel equipment. Buyers should review the complete jobber agreement, including termination, assignment, branding and volume requirements.

Other income

The ATM and air machine together generate approximately $1,000 per month according to the seller.

The store does not currently sell lottery products, leaving that as a possible additional revenue source if approved and licensed.

Profitability and management

• Reported net profit: more than $14,000 per month
• Payroll included in that calculation: approximately $12,000 per month
• Current manager compensation: $15 per hour
• Current ownership: absentee
• Owner reportedly visits approximately once per week

The seller estimates that an active owner-operator could potentially earn more than $20,000 per month by replacing management labor and increasing sales. This should be treated as a seller projection rather than current operating income.

Real estate

• Building size: approximately 3,120 sq. ft.
• Real estate included in the transaction
• Seller-stated capitalization rate: approximately 10%

Because both the operating business and property are included, buyers should evaluate the real estate separately from business cash flow. The stated cap rate should also be recalculated using independently verified property income, expenses and purchase allocation.

Location

The property has access to US-61 and serves local customers as well as traffic traveling through the Tunica casino corridor. Memphis is less than an hour away, while Southaven is reported to be under 40 minutes from the property.

The seller also notes nearby schools, hotels and a relatively limited selection of restaurant competitors. Demographic, traffic and competitive claims should be independently confirmed if they are material to the purchase.

Customer base

The store has an existing local customer base, and the seller reports a Google rating above four stars.

Growth

• Add lottery sales, subject to approval
• Expand deli and prepared-food sales
• Increase summer merchandising and inventory
• Improve local and roadside marketing
• Increase owner involvement
• Review additional convenience and food-service categories

Reason for sale

The seller states that the business is being sold because of plans to return to their home country.

Due diligence

Buyers should verify inside sales, fuel gallons, fuel margins, net income, payroll, deli margins, ATM and air-machine income, inventory, equipment ownership, employee arrangements and historical tax returns before closing.

Particular attention should be given to the 16-year jobber agreement, fuel-supply obligations, environmental history, underground storage tanks, leak-detection records, fuel-system compliance, real estate title, property taxes and any required Mississippi permits or licenses for fuel, food service, tobacco, alcohol or lottery products.