NORTH KINGSTOWN, R.I. -- In July 2004, Ann and Ramzi Khoury unveiled a rebranded and thoroughly reimaged convenience store in North Kingstown, R.I., about 20 miles south of Providence. Today, their reshaped, 1,800-sq.-ft. Engine FoodLane store, which had been an underperforming XtraMart, stands among Rhode Island's most remarkable independent stores.
This location is unlike anything else around here, so in a way, we're almost competing with ourselves, Ann Khoury told CSP Daily News. That helps, but that also hurts because we have no one to compare ourselves [image-nocss] to. But at the end of the day, we can do anything we want at this store.
The Khourys' symbiotic relationship has enabled them to succeed where others have not. Ann and Ramzi, who first met in the United Arab Emirates nearly 20 years ago, appear to be perfect complements. He's the visionary. She's grounded. He's of the mind, Let's spend the money. She's more budget-conscious. He handles operations, while she takes care of most of the paperwork and bookkeeping. Where one is lacking, the other excels.
We're on the same page and we work in the same store, but we're doing different things, said Ann, a first-generation American born to Iraqi parents. It's nice for our relationship. You have to come from a happy home to create a happy workplace, and we've been able to maintain that happiness in both.
Before getting bit by the do-it-yourself bug in 2002, the couple operated a handful of Getty-branded stores in the area. They sold two of their three stations in 2002 and the remaining one in 2004. They closed on the deal for the North Kingstown property in February 2004.
In addition to the Engine FoodLane's unique branding in-store and out, the store has other distinguishing characteristics that have made it a dominant player in North Kingstown (pop. 23,000):
Drive-thru. Customers not wanting to get out of their cars can make purchases at a drive-thru window that services 75 to 125 customers per day. As of press time, the Khourys were finalizing a rental agreement with regional doughnut and coffee chain Honey Dew Associates. The agreement would help Engine FoodLane convert cigarette and gasoline regulars into drive-thru coffee customers. High-speed diesel. The road on which Engine FoodLane is situatedthe U.S. 1 corridorsees traffic of 37,000 vehicles per day. To cater to professional drivers, the Khourys added a high-speed diesel pump that dispenses 30 gallons a minute. When the Khourys took the site over, it had been doing 400,000 gallons a year. The Engine FoodLane did 1.5 million total gallons in its first full year of business. Diesel accounts for as much as 25% of total fuel gallons sold. Peg-bag snacks. When the Engine FoodLane first opened, it used traditional shelves to market snack items. It has since reset its snack section using peg racks. We're now doing five times the volume we did previously, Ramzi told CSP Daily News. It merchandises the product better. And as they say in the old country, you have to feast the eye before you feast the belly. Premium tobacco. Despite having to contend with the highest cigarette tax in the nation ($2.46 per pack), the Engine FoodLane has carved out a niche with a high-end cigarette offer featuring superpremium brands such as Djarum, Dunhill and Naturals, among others. Tobacco represents about 50% of the store's sales, though Ramzi would like to get that down to 40% by growing other categories while stabilizing cigarette volume. An in-store cigar humidor features a wide selection of premium cigars; some retail for as much as $17 each. Foodservice. From Oscar Mayer hot dogs to their own proprietary pizza, the Khourys have shown no fear of foodservice. They ran a Taco Bell Express in one of their old Getty stations, so they understand the importance of cleanliness and presentation. It's the most rewarding thing to see a mother come into a store and buy a hot dog or a piece of pizza for her child, said Ramzi. That's when you know you've succeeded.On top of the 1.5 million gallons it pumped in 2005, Engine FoodLane chipped in nearly $1 million in inside sales for the year. Those kinds of numbers have encouraged the Khourys to consider opening additional locations. Ann suggested they could probably handle five or more stores, but they wouldn't want to overstep and chance losing what has brought them success.
For us, this store is a prototype, said Ramzi. I'd like to have another store, but I don't want to lose that personal touch. We're still going to do more experimenting here. If another location were to come up, we'd consider it. But you're talking about a $2 million to $2.5 million investment, so we're really going to study it before going forward.
For more about the Khourys and their Engine FoodLane store, look for the June 2006 issue of CSP Independent magazine.
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