PENSACOLA, Fla. -- Rick Richardson said increased state regulations regarding gasoline tanks were the final straw that led him to exit the convenience-stores industry after 25 years, according to a report in the Pensacola News Journal.
"I really realized that you need a bigger operation to be able to handle the obligations of this business," said Richardson, who sold his 13 Groovin Noovin stores in Florida to Alimentation Couche-Tard this past week. His company, Richcor Inc., will continue to operate and grow a chain of pizza restaurants under [image-nocss] the Santino's Pizza and Grinders banner.
The sale of the c-stores to Couche-Tard's Circle K Inc. is expected to be completed in February, Stephane Gonthier, senior vice president, told the newspaper.
The sale includes 10 stores with quick-service restaurants (QSRs), nine of which have a proprietary deli doing business as Down Home Deli, and one that is a branded Subway location operated under a franchise agreement.
Circle K has agreed to "look out for our employees and customers, and maintain our Down Home Delis, and Shell brand of gasoline," Richardson, who has run c-stores for 25 years, told the newspaper.
He said some 220 employees of Groovin Noovin will remain in their current jobs as part of the deal. "We're real pleased because we care so much about this business and we are passing it along to someone who will improve it," Richardson said.
Gonthier said all the Pensacola Groovin Noovin stores will be converted to the Circle K brand. Circle K spokesperson Mike Strubel said once the deal is completed, Circle K plans to remodel all Groovin Noovin stores.
While Richardson is leaving the convenience-store business, he said he has plans to expand his Pensacola-based Richcor Inc. holdings of its three Santino's Pizza restaurants in Pensacola.
"We want to take and expand the Santino's brand and develop that brand name," Richardson said.
Meanwhile, Couche-Tard continued its growth in Florida by purchasing the properties where two of its convenience stores are located in Volusia County. It also has acquired two Shell stations it plans to convert to Circle K stores, according to the Daytona Beach News-Journal.
Circle K paid Second Convenience Store Properties Corp. about $2.1 million for the properties in DeLand and Port Orange, Fla., where it has stores.
The company paid Motiva Enterprises, which operates Shell gas stations and convenience stores, $1.75 million for Shell stations in Orange City and Port Orange, Fla. That purchase was part of an earlier deal where Circle K bought a total of 236 sites from Motiva.
The company-operated sites will be converted to Circle K stores but will continue to sell Shell motor fuel pursuant to supply agreements signed with Shell and Motiva. The agreements provide for the conversion of about 250 existing Circle K sites to the Shell brand.
The company plans to invest $45 million over the next five years in upgrading the stores it acquired from Motiva, according to the newspaper.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.