CORPUS CHRISTI, Texas -- With Susser Holdings Corp.'s recent master limited partnership (MLP) initial public offering (IPO) spinoff of its Susser Petroleum Partners LP petroleum arm, it finds itself flush with cash, further opening the opportunities for new-store growth. CEO Sam Susser noted during a recent earnings call that there were a couple of new markets the company is "looking at and working on," but for competitive reasons, would not identify them.
Now, as reported in a Raymond James/CSP Daily News Flash, Susser Holdings has begun construction of the first of several Stripes Convenience Stores in the Waco, Texas, area.
"Part of why we executed the MLP IPO is we thought we would end up with a long-term lower cost of capital that we would be able to employ into a growing market, and we do expect to use that capital to be more aggressive organically as we build more stores, both in Stripes and our very valuable dealer network," Sam Susser said in February.
The Stripes Team officially kicked off the new market entry with a groundbreaking celebration Tuesday, April 16 at the first Waco location.
The company has plans to build five stores, three of which are already in the works. It expects the first store to be up and running by July 2013.
Susser plans to offer up to 30 new jobs per store, resulting in a total of 240 new jobs for the area.
"Waco is such a great community," said Steve DeSutter, Stripes president and CEO. "The people are friendly, the community is steeped in history, and we think it will be a terrific place to do business. We knew our stores would be a great match in the Heart of Central Texas."
The Laredo Taco Co. restaurant in each Stripes store is the chain's signature, featuring homemade tortillas and salsa made fresh each day.
"The secret sauce for us is food," DeSutter told KXXV-TV. "We make three promises to customers: first is a fast and friendly experience. Second, it's gotta be clean. It's gotta be safe and well lit. Third it's the taco. It's all in tortillas, we say. Hot, fresh and delicious food and it's a value."
The company has a history of active community participation. A long-time supporter of the Children's Miracle Network, Stripes made a special presentation to McLane Children's Scott & White Hospital.
"Partnering with our communities, we have contributed significantly to improving the lives of children through improved health and education," said DeSutter. "We look forward to working together with Waco to continue this tradition."
The chain is also looking at Temple and Killeen locations in the next year or so, reported KXXV. Stripes is making a $20 million investment first in Waco, it said.
Earlier this week, Susser Holdings and Susser Petroleum Partners provided partial operating results for first-quarter 2013. Susser Holdings said it expects to report same-store merchandise sales growth of approximately 4.2%; retail average per-store fuel volume growth of approximately 4.1%.
Susser Holdings opened four new Stripes stores during the first quarter and closed one store that is being rebuilt with the company's larger footprint. It operated 562 Stripes stores as of the end of March, 355 of which included an in-store restaurant offering.
It added five new dealer sites in the wholesale segment, and discontinued five sites in the first quarter for a total of 579 contract branded sites as of March 31, consisting of 92 consignment locations and 487 other independent branded dealer contracts.
Susser Holdings is a third-generation, family-led business based in Corpus Christi, Texas, that operates more than 560 c-stores in Texas, New Mexico and Oklahoma under the Stripes banner. Restaurant service is available in approximately 355 of its stores, primarily under the proprietary Laredo Taco Co. brand. Susser Holdings also is majority owner and owns the general partner of Susser Petroleum Partners LP, which distributes more than 1.4 billion gallons of motor fuel annually to Stripes stores, independently operated consignment locations, c-stores and retail fuel outlets operated by independent operators and other commercial customers in Texas, New Mexico, Oklahoma and Louisiana.
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.