Company News

QuikTrip 'Invades' Tucson

1st local QuikTrip sets up shop; 3 more set to open before May
TUCSON, Ariz. -- QuikTrip opened its first convenience store in Tucson, Ariz., Wednesday night, reported The Arizona Daily Star. It was supposed to open Thursday morning, but "we were just standing around taking pictures, we were ready to go, and finally we just took the barricades down and let them in...about 9:00 p.m." Wednesday, Troy DeVos, QuikTrip's director of real estate, told the newspaper. DeVos has been living in Tucson the last two years preparing for QuikTrip's "invasion."

This is the first of the Tulsa, Okla.-based convenience chain's four combination [image-nocss] gas station and convenience stores set to open in Tucson before late April, said the report. But there likely are many more to come, it added.

QuikTrip, a privately held company with 537 stores in nine states, has opened 70 stores in the Phoenix area since 2000, company spokesperson Mike Thornbrugh told the Daily Star. He said he could not comment, for competitive reasons, on the company's Tucson expansion beyond the first four stores, but he said QuikTrip typically comes in to "build as many as the market will hold."

Construction is already under way on new stores, the report said.

Out front are eight pump islands, each able to serve two vehicles, and ample parking on both sides of the building. At other QuikTrips, there may be as many as 10 pump islands.
Inside, the new 24/7/365 store is a "shrine to guilty food" and a "fair amount of healthful fare," said the report.

It has about 18 feet of roller grills slowly spinning hot dogs, sausages, taquitos and other tubular foods; cases of fresh-made doughnuts, muffins and other pastries; banks of smoothie, milkshake and Freezoni machines; five coffee blends; flavored cappuccino dispensers; and a dock-sized soda fountain featuring Coca-Cola products.

It also has fresh fruit, yogurt and granola cups and freshly made sandwiches on whole wheat, honey wheat or even berry wheat bread (260 to 340 calorie count).

The point of selling gasoline is not just to bring people in to make money on the stuff they buy inside, nor to just make money on huge volumes of gasoline sales, Thornbrugh said. "They're both profit points. We're not a not-for-profit business. We do sell a lot of gas. We sell almost 1.8% of the gasoline sold in the United Statesjust shy of $8 billion sales revenue for fiscal 2008. But we have really concentrated on the inside. We spend an awful lot of money on our inside presentation," he told the paper.

Gasoline sales have been driven by more than price at QuikTrip, said Thornbrugh, who added that the company's compliance with the auto manufacturers' "Top Tier" rating system (for gasoline additive standards) makes its gasoline a draw. Top Tier is a rating endorsed by Audi, BMW, GM, Honda, Toyota and Volkswagen. And QuikTrip is actually listed in those manufacturers' owners manuals.

There is also a companywide guarantee that QuikTrip will make good on damages caused by substandard gasoline bought from its pumps.

Thornbrugh declined comment on c-store competitors, except to say being privately held allows QuikTrip to do some things the others may not be able to do. QuikTrip management is "not interested in impressing investors on Wall Street," he said.

He said QuikTrip provides health and other benefits, including a matched 401(k) plan, to all full-time employees.

"Our average manager of a store is getting close to $70,000 a year. And what we consider the average store employeea 2A, or second assistant managerin the upper thirties," Thornbrugh said.

But DeVos said the company asks a lot of its employees. They look sharp, and they get incentives based on snap inspections of their facilities, including the usually dreaded restroom checks. QuikTrip's, DeVos said, are expected to be clean.

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