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Gas Station Feasibility Study Challenges

Updated: Dec 27, 2023

Location and Traffic Counts.

Well, yes, these factors matter. But its not so simple. If ever gas station within 1-mile captured 3 percent of the traffic, then a market could absorb 33 gas stations, right?

Physical Limitations

No. We all know that is not possible. Also, there are physical limits to how many gallons can be sold a day due to operating hours and how long a cue of vehicles can be supported. If you see one of those Race Trac gas stations on a highway exit with rows of pumps, it is designed for high volumes. So, then why not just build more pumps and capture more and sell more?


Again, not so simple. 60,000 vehicles a day a long a highway still has a measure as to logistics - where are they going to or coming from? If it is a stretch of highway like I-5 going through a small town, the last gas station was 100 mile ago, then perhaps more vehicles will stop to fuel up or for a break thereby making a purchase in the convenience store.

If the highway passes through a city it is likely there are patrons, but if the residential areas are 15 minutes from the Central Business District and most of the vehicles are derived from those nearby residential pockets, the capture rates will be less than the aforementioned stations.

Also, gas stations that are clustered statistically, do better than that standalone station in the logistically less sound location.

Measuring Gallons Sold Potential

How many gallons will a new station sell? Logistics! that is the answer. In our gas station feasibility studies, we include our in-house survey which we compiled over 25-years based on how gas stations actually preform in different logistical settings.

The number of gallons sold is the magic number! It also has strong and direct influence on how many sales will be made in the convenience store, Quick Service Restaurant (QSR) or car wash, etc. We have seen traffic count capture on a road with only 4,300 AADT in Salton City, California whereas the gas station sold the same volume of gallons as a gas station situated along I-10 with 60,000 ADDT. Logistically, the Salton City location was set in an area that has a moratorium set by the city restricting more gas station development, thus a scarcity of land and it was on two trucking routes that intersected about 100 miles from travel centers.

This project is evidence that traffic quality, not quantity must be evaluated.

Gas Station Feasibility Study
Gas Station Feasibility Study


We can consider this factor as land area available, land costs and the potential of future job and population growth in a market to help understand if the site cost can be supported. If a project is to have a reasonable rate of return on the equity that is needed to put the project together, the land cost is vital to this analysis.

Why Get a feasibility study for a gas station?

If you are ordering a gas station feasibility study, interview the consultant. Ask for references and talk to their past clients to see how realistic their projections were. We all know, everyone wants a cheap and fast gas station feasibility study, but that is the wrong way to do business. Seek a qualified and experienced gas station feasibility study consultant with a track record of success.

Publisher Details: Gas Station Feasibility Studies: SBA Feasibility Study Consultants: USDA Feasibility Study Consultants: Feasibility-Study.com

Unlock the potential of your business with, the ultimate destination for comprehensive feasibility studies, empowering you to make informed decisions, maximize profitability, and shape a prosperous future. Join us in revolutionizing your business strategy today!

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