The Top 50 Fuel Brands

By Keith Reid

We look at who excelled last year in five key areas of success.

The Top 50 fuel brands tend to be a fairly consistent group year to year. That does not mean they fall into a specific profile, as they range from operators with 31 sites to nearly 6,000, are regionally diverse and go to market with a variety of formats, ancillary profit centers and key offers. What makes them consistent is that they have figured out how to operate their fueling programs in a highly efficient manner that is integrated with their full business models. They also, undoubtedly, have a deep insight into the competitive markets in which they operate and know how to effectively execute on this knowledge.

FMN covers five critical performance factors for the Top 50 brands in partnership with the Oil Price Information Service (OPIS) with data from its OPIS Top 250 Retail Power Brand Report. The full report provides more granular and typically localized detail in a number of additional categories and is available for purchase.

Our 2023 report (based on 2022 data) sees six new companies entering the Top 50, with some making significant jumps from their positions outside the Top 50 in 2021. They are Ohio-based Truenorth (82 to 49); California-based Fastrip Food Stores (81 to 41); Ohiobased United Dairy Farmers (78 to 46); California-based Rotten Robbie (66 to 35); California-based We Got It (65 to 25); and Georgia-based Parker’s (53 to 42).

There were some similarly significant movements within the Top 50. However, the top five were highly consistent:

1. Pennsylvania-based Wawa (ranked 1 last year)

2. Pennsylvania-based Sheetz (ranked 3 last year)

3. Oklahoma-based QuikTrip (Ranked 2 last year)

4. Utah-based Maverik (ranked 5 last year)

5. Georgia-based RaceTrac (ranked 6 last year)

ECONOMY OF SCALE VS. SPEED AND FLEXIBILITY

Economies of scale give the larger players in the industry a range of advantages, such as favorable purchasing power, broader brand recognition and often greater cashflow/credit and human resources to apply to initiatives. Countering the economies of scale, smaller operations tend to have more flexibility to pursue opportunities, can be better focused on their markets compared to broader operations and can increasingly take advantage of powerful but affordable technologies that help level the playing field where efficiency is concerned.

The top five tend to be midsize chains (relatively speaking).

Size, Top 5 Brands

Four companies on the full list operated over 1,000 stations (with an additional one a handful short), yet generally ranked toward the middle of the pack. On the larger side, 56% of the brands ranged in size from nearly 6,000 sites to slightly over 100 sites and included the top five performers. The remaining 44% ranged in size from nearly 100 sites to 31 sites.

The ability to operate efficiently regardless of size is illustrated by comparing the 10 largest brands to the 10 smallest. A perfect example is found at the extremes with Arizona-based Circle K (nearly 6,000 sites) and New Yorkbased Delta Sonic (31 sites). The companies are ranked similarly, with Circle K coming in at 28 and Delta Sonic trailing by a few positions at 32.

10 Largest Chains

10 Smallest Chains

Pricing Strategies

The industry draws customers to its sites through a variety of offers. Operators look to differentiate themselves and win the market through foodservice, car wash offerings, beverage programs and packaged goods—to name a few. However, the traditional traffic driver (though not necessarily a top profit generator except for unusual years) is motor fuels. NACS research has shown that consumers have a strong emotional attachment to the price of fuel and will often endure inconveniences such as driving extended distances to save a few cents. In a string of unusual years, 2022 was no exception. Gas prices have been high (though now receding) due to the impact of the Russia-Ukraine war on crude oil and refined product. Margins at all levels have been high, and they stayed high longer than is typically the case. How have the Top 50 responded in their markets?

All the top five brands price lower than their market averages.

Price Differential, Top 5 Brands

Higher Price Leaders

Some 62% of the Top 50 brands price below the average for their competitors in their market, compared to a near even split in last year’s report. The impact of the RussiaUkraine war has led to significant increases in fuel prices, which is likely having an impact on competitive pricing decisions.

Topping the list for a lower-than-market-average price were Fastrip Food Stores and Rotten Robbie, at 30.3 cents and 19.4 cents respectively. It should be noted that these two companies, along with We Got It at 11.1 cents below market, made dramatic jumps into the Top 50 this year.

Lower Price Leaders

Attracting Customers

A look at the OPIS Consumer Market Share data (an overall national gasoline market share based on visits to a chain’s properties measured through cellphone location tracking), reveals once again that while the report is focused on many efficiency factors, scale can come into play in this category. As was the case with the previous two Top 50 brand reports, the top rated companies were a mix of some of the largest operators in the industry and dynamic midsized operators.

Consumer Market Share, Top 5 Brands

*Overall national gasoline market share based on visits to the chains’ properties through cellphone location tracking.

Note: Figures in red are below market averages.

Among those in the Top 50 that priced above their markets, California-based ExtraMile topped the list at 18.2 cents.

Consumer Market Share Leaders

*Overall national gasoline market share based on visits to the chains’ properties through cellphone location tracking.

Attracting Fleet Customers

OPIS tracks an overall national gasoline market share based on WEX fleet card gallons sold. The scale of an operation can be a significant factor favoring midsize and larger companies. Fleets (in many cases) appreciate a widespread availability of sites in their business area for drivers to access.

Fleet Card Market Share, Top 5 Brands

*Overall national gasoline market share based on just WEX fleet card gallons sold.

Fleet Card Market Share Leaders

*Overall national gasoline market share based on just WEX fleet card gallons sold.