Image Credit – https://www.wawa.com/
Wawa Food Market, also known as Wawa, is a well-known convenience store that offers freshly prepared meals and beverages. It specializes in soups, snacks, made-to-order subs, freshly brewed coffee, hot breakfast sandwiches, and specialty drinks.
In 1803, in New Jersey, Wawa was founded as an iron foundry. However, the company switched to producing dairy products in 1902 in Pennsylvania’s Wawa region, giving the business its name. The first Wawa food market opened in 1964. Since 1902, it has expanded to over 950 locations around the country. They are located in Pennsylvania, New Jersey, Delaware, Maryland, Virginia, and Washington DC along the Mid-Atlantic coast. However, the business has lately opened an office in Florida. Over 750 of these establishments also sell gasoline, enabling clients to refuel their cars quickly and get fresh, personalized food and drink. Its stores are almost all open twenty-four hours a day. They are, therefore, a practical choice for a wide range of clients. Additionally, these shops are well known for offering surcharge-free ATMs.
Wawa is widely known for numerous things, but one of them is the chain’s dedication to the client experience. Wawa frequently receives favorable customer ratings and is known for its tidy, well-stocked stores and welcoming staff.
Many consider Wawa’s food selections superior to competing for convenience store brands. Additionally, this chain offers widespread availability throughout the Northeastern United States, which makes it a practical option for many customers.
Where is the biggest Wawa store?
You might be surprised to learn that Pennsylvania, in the United States, is home to the largest Wawa. This enormous convenience shop offers everything from made-to-order meals to all your favorite snacks and beverages, this enormous convenience shop is a whopping 10,000 square feet in size. Check it out if you’re ever in the area!
The Wawa franchise
A fantastic option to get started in the convenience store industry is to buy a Wawa franchise. It provides franchisees with a simple, dependable source of revenue with low overhead expenses, a well-known brand name, and the know-how of an accomplished staff.
Aspiring business owners considering joining the Wawa franchise family can anticipate fees, profit potential, total investment needs, training opportunities, operational limits, renewal terms, and return on investment expectations.
We’ll go over all of these specifics in this post so you can decide whether opening a Wawa franchise is the best course of action for your company. Continue reading to discover more about what it takes to run a Wawa store!
Also Read – Top 15 Most Profitable Franchises to Own In 2023
Can you own a Wawa franchise?
Wawa has been a privately held company since its founding in 1964. Since that time, the corporation has owned every Wawa location. The Wawa franchise has piqued the interest of many people. Although Wawa is not currently offering franchise opportunities, it may do so in the future.
Unfortunately, you cannot own the franchise. The business website has everything you need to learn about Wawa Franchise. Fill out the form on the website and submit it to the administrator with your inquiry. They’ll respond to your query.
However, potential franchisees who want to investigate franchise opportunities in the convenience store sector should evaluate similar companies, like 7-Eleven, which we will address below. This post will skim over some of the financial data that Wawa released and calculate the anticipated franchise fee from similar businesses in the convenience store sector if it were to be franchised.
Is Wawa profitable?
In 2021, WAWA did turn a profit. WAWA credited strong sales and cost-cutting strategies for its profitability. The company expects to continue investing in its stores and extending its product offerings to drive growth in the future. From $9 billion in 2016 and $10 billion in 2018, Wawa reported $11 billion in annual revenue in 2020. If the income were evenly distributed, each of its 950 locations would have brought in around $11.58 million. Convenience stores in America earned an average of $4 million per year, according to a 2018 industry report. This indicates that the average Wawa store generated much more money than the typical convenience store. The rising annual income of Wawa and the company’s above-average per-store revenues show that its recent ability to sell products has been exceptional.
Alternatives to a Wawa franchise
There are a lot of options available in the convenience store industry. Let’s look at some of the alternatives you can own instead of a Wawa franchise.
Also Read – 18 Cheapest Franchises to Open in 2023(Updated): Low-Cost Franchises
7-Eleven
When Joe C. Thompson started selling milk, bread, and eggs throughout his stores in 1927, 7-Eleven’s history officially began. Up until that point, they solely sold ice blocks. Joe Thompson soon had the opportunity to acquire Southland Ice Company thanks to the expanding success of the store’s invention and afterward changed its name to Southland Corporation. This business specializes in building convenience stores throughout the state. The number of locations using the new store format had considerably expanded by 1946.
Due to their success, the stores opened seven days a week from 7 am to 11 pm. Hence, the name of the store. After the Southland Corporation acquired an additional 126 licensed Speedee Mart convenience stores in California, franchising was launched in 1964. These business models are incorporated into the 7-Eleven business plan. Currently, 7-Eleven has more than 9,000 locations across the country. Added units are spread among multiple continents, including Europe, Asia, and Oceania. 7-Eleven’s main office is in Dallas, Texas. Currently, it is led by Joseph DePinto, who has served as the company’s President and CEO since December 2005.
An estimated $53,600 to $1,163,000 in total investment is needed to start (or take over) a 7-Eleven franchise. The upfront expenses of opening a 7-Eleven store include the fees listed below.
Based on the expected annual sales for franchise stores of 7-Eleven, it will take approximately nine years to return your investment at an average 5% profit margin. Compared to other franchise opportunities, this one is longer. You may not make a 5% profit margin, which would delay seeing a return on your investment.
You can generate money as the franchise holder of several 7-Eleven locations. Retail Goods & Services Industry owners enjoy an average multiple of.38 for businesses with over $5 million in annual sales. Therefore, the total sales would be $10,000,000 if you owned five 7-Eleven businesses. The going rate for that is $3,800,000. This is more than the $3,041,500 initial investment.
7-Eleven has a strong market position and solid financial standing in the USA. We advise speaking to at least 3-5 7-Eleven shop owners in your area to get the financials since they no longer provide franchise-specific financials. We also suggest doing that because different regions may be unable to support a 7-Eleven. Additionally, the average values may not accurately depict your area.
Circle K
A multinational chain of convenience stores, Circle K Stores, Inc. was established in El Paso, Texas, in 1951. Before being acquired by Canada’s Alimentation Couche-Tard in 2003, the company had filed for bankruptcy protection in 1990 and had been owned by several different parties. As of February 2020, Circle K operated 2,380 locations under franchise agreements internationally, in addition to 9,799 stores in North America (mainly the US and Canada), 2,697 stores in Europe, and 2,697 stores globally.
Circle K owns and runs locations in 47 states within the United States (the three states without Circle Ks are Utah, Wisconsin, and Nebraska). Arizona, Ohio, California, Florida, Colorado, Georgia, North Carolina, Illinois, South Carolina, Louisiana, and Texas have the highest concentration of Circle K locations.
For a newly constructed Circle K Business, the total investment required to open for business ranges from $2,134,250 to $4,718,250. Assuming you decide to run an optional car wash as part of the Franchised Business, the estimates range from $979,250 to $3,461,250 if you convert an existing convenience store and a gas station into a Circle K Business. In 2021, the average Circle K net sales amount will be $1,323,683.
Speedway
Gas station and convenience store chain Speedway (SuperAmerica) has locations mainly in the Midwest of the United States. They started in 1998. The business’s main office is in Enon, Ohio. The Speedway brand is under the Marathon Petroleum umbrella. Over 2,700 Speedway locations can be found in 21 states. Numerous services, such as gas, car washes, ATMs, restrooms, and food, are available to consumers.
Additionally, the business offers apparel, including T-shirts, hats, and other accessories. The cost of gas at Speedway is typically less than that of its rivals. The company attracts customers trying to save money on gas with its numerous discounts and promotions. When seeking petrol, snacks, and other necessities while driving, Speedway is an easy alternative. It is simple to locate a Speedway nearby because of the company’s diverse geographic presence. It’s a fantastic option for drivers on a tight budget because of its affordable pricing.
The Pantry Inc
Based in Cary, North Carolina, The Pantry, Inc. was a chain of publicly held convenience stores that also ran Kangaroo Express outlets. Sam Wornom and Truby Proctor, Jr. established The Pantry in 1967 in Sanford, North Carolina. It was the biggest independently owned and run chain of convenience stores in the Southeast. Through numerous acquisitions, The Pantry swiftly grew from the late 1980s into the 2000s. It was announced in 2008 that all Pantry locations would adopt Kangaroo Express as their primary operating banner. The business relocated its corporate offices from Sanford, North Carolina, to Cary, North Carolina, in 2009.
The Pantry gave your body and car energy if you’ve ever driven to Disney World or through the Carolinas on business. Aside from Kangaroo Express, the company also operates stores under the names Bean Street Coffee, Celeste, and Aunt M’s. Branded fuel is offered with names like ExxonMobil, Marathon, and BP. The shops provide a variety of goods, including cigarettes, drinks, candy, gasoline, and periodicals. Alimentation Couche-Tard of Canada paid $860 million to acquire the business in 2015.
The Pantry franchise is expected to cost between $450,000 and $600,000 to open. The license to operate a business under The Pantry trademark costs a one-time franchise fee of $40,000.
Casey’s General Store
Casey’s General Stores Inc (Casey’s) is a chain of independent convenience stores. The company’s product line includes grocery, food, and non-food goods. The menu options include pizza, doughnuts, dairy products, sandwiches, and beverages. Health and cosmetic items, as well as automobile supplies, are among Casey’s non-food offerings. The business offers convenience products like beer, water, soft drinks, and ice in addition to self-serve fuel sales. It provides services to people of smaller communities through general and convenience stores. In the US, the company has activities in Missouri, Iowa, Illinois, Minnesota, Nebraska, South Dakota, and North Dakota. The US city of Ankeny, Iowa, is home to Casey’s corporate headquarters.
The estimated investment needed to launch Casey’s franchise is between $500k and $1m. The initial franchise price for Casey’s franchise is $60,000. This sum includes the license charge for using Casey’s trademark in commercial operations.
Conclusion
Wawa locations cannot be franchised. But the general public can also purchase other franchises for convenience stores. Although you cannot open a Wawa franchise location, you should look at the options we have provided.
Wawa is still a privately held company, and the owners have yet to make plans to franchise the locations. The business recently revealed specific revenue-related financial data. It demonstrates how strong and growing Wawa’s capacity to sell goods in its stores has become in recent years. We hope the information provided above has been helpful.
