Sheetz to open first central Ohio store in Delaware
Hey Sheetz freakz: The wait is nearly over.
The first Sheetz store in central Ohio will open Tuesday in Delaware, marking the beginning of what is expected to be a big rollout in the region by the Altoona, Pennsylvania-based restaurant, convenience store and gas station company. At least a dozen stores are expected to open over the next year and 50 stores by 2025.
The move into Columbus comes at the requests of fans, affectionally referred to as Sheetz freakz, said Travis Sheetz, the company’s president and chief operating officer.
“We just think it’s a great opportunity for our brand,” he said of the move into Columbus. “Customers have asked for us here.”
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Sheetz has a number of stores along Interstate 70 in eastern Ohio extending into Pennsylvania, but central Ohio is its farthest push west.
“It’s a natural extension for us,’’ Sheetz said.
What’s with the Sheetz obsession?
What is the fascination with the store? After all, it’s just a place where drivers can fill up the car and get something to eat. Most convenience stores offer that now.
“It’s just kind of the way we do it,” he said. “It’s the culture. It’s the brand. It’s technology.”
What makes the difference is what goes inside the store, Sheetz said.
“It’s one of the things you have to experience and you have to experience it over time,” Sheetz said. “It’s a bit cultish.”
What can you expect at the new Sheetz in Delaware
Shoppers in the Delaware store will be greeted with an area where they can grab something quick, such as soup, a sandwich or edible cookie dough.
Then there’s a kiosk where customers can order from a menu more akin to a typical fast-food restaurant including subs, burgers, pizza and chicken. Orders can be customized down to the sauce and bread.
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Breakfast food can be ordered for dinner; burgers can be ordered for breakfast.
“That’s something many people don’t want to take on,” Sheetz said of the expansive menu. “But once you take it on and build that food brand, it’s a great draw.”
Beyond that, the store offers coffees, sodas, milkshakes and frozen drinks, a beer cave and restrooms that Travis Sheetz says are as nice as those found in hotels.
A typical Sheetz store will have 30 to 40 seats for those choose to eat inside. The stores provide free internet access.
Unlike other restaurants that have reduced hours during the pandemic, Sheetz stores have continued to operate 24 hours a day, seven days a week.
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Technology is critical to the store. Beyond the ordering kiosk, customers can self-scan their purchases or scan them with an app on their phone. The stores also offer curbside delivery.
The technology already was in the works before the pandemic, but it allowed the company to capitalize on customers’ desire to be in and out of stores quickly.
Sheetz to offer competitive fuel rates
Initially, during the pandemic, sales of gasoline plummeted, but after that, the company did well, Sheetz said. In many markets where Sheetz operates, it was the only place open, he said.
Sheetz’s arrival in central Ohio will bring a big competitor to the region’s 651 gas stations and convenience stores at a time when gasoline sales remain below pre-pandemic levels.
“They are very formidable,” said Tom Kloza, global head of energy analysis for the Oil Price Information Service, which tracks fuel sales at gasoline stations.
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Speedway, with 85 stores, has the biggest market share in central Ohio with nearly a third of the sales of gasoline, according to OPIS. Duchess, with 65 stores, is second with 13.5% of the market.
Sheetz is a highly efficient retailer, Kloza said. By that, he means that a typical Sheetz sells four times as much fuel as what would be expected from an average store, largely because of the strength of its inside sales.
Sheetz has high shares of markets its operates in, including a 21.8% share in Pennsylvania, Kloza said. By comparison, Speedway has a 27.3% share in Ohio.
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Kloza compared Sheetz with another station that has a similar fan base in the East, Wawa.
“Wawa has as much of a cult following that Sheetz has. … Both are terrific operators,” he said.
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Sheetz and Wawa have store sales much stronger than other gas stations, Kloza said.
“A typical Sheetz or Wawa might get many times more profit from prepared food than competitors,” he said.
Both stores suffered early during the pandemic, Kloza said. Both are places where customers would stop on the way to work for a cup of coffee and a breakfast sandwich.
“They kind of lost breakfast in those trips,” he said. “They did cater a lot to commuters.”
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Inside sales at gas stations vary considerably, Kloza said.
“They range from just a few thousand dollars per month for a kiosk-type store to hundreds of thousands per month for some of the better prepared food folks,” Kloza said.
Sheetz to open additional locations in Ohio
The next central Ohio Sheetz store will open in Obetz, followed by stores in New Albany, Circleville, Hilliard, Reynoldsburg and another store in Delaware this summer. This fall, a second store will open in New Albany, along with a store in Groveport and the first stores in Columbus on Stelzer Road and at Westland Mall.
In the winter, Sheetz plans to open stores in Columbus on North Meadows Boulevard, Roberts Road, Hilliard Rome Road East and Cassady Avenue.
In five years, Sheetz expects to have 1,600 or 1,700 employees in central Ohio – 30 per store plus other workers to support them.
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Sheetz has received opposition to some of its stores, and backed out of plans to build one in the Worthington Hills area.
Sheetz, which dates to 1952, has about 600 stores, located primarily in Ohio, Pennsylvania, North Carolina, Virginia, West Virginia and Maryland. Its current Ohio stores are mostly in Akron, Cleveland and Youngstown.
Travis Sheetz said the buildout in Columbus is especially aggressive, unlike anything the retailer has done before.
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There had been plans before to come to Columbus, but those plans got put on hold while the company expanded in the Carolinas instead, Sheetz said.
Sheetz said he expects low gasoline prices at the new store in Delaware will lure people inside the store to see what that it’s like.
“In a new market you have to build that trust with people we know that we have to do here.”
@BizMarkWilliams
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