Like us on FacebookFollow us on Twitter
Back To News/PR Index
|
National Association of Convenience Stores
|
NACS: Happy Birthday, Self-Serve Gas
|
An innovation introduced on June 10, 1964, forever changed fueling.
|
Alexandria, VA – June 2018 / Newsmaker Alert / Today more than 123,000 U.S. convenience stores sell fuel, and self-serve is available in 48 states. But back in 1964, allowing customers to pump their own gas was unheard of, and also was prohibited in most of the country because of state fire codes. Self-serve visionary John Roscoe changed all that when he added remote fueling to one of his Big Top c-stores in Westminster, Colorado, more than 50 years ago.

Roscoe’s stores with self-serve were soon selling an average 4,500 gallons per week. By making the investment in remote fueling, “we effectively got the gasoline business from full-serve gas stations without their labor expenses,” he said. “If you could sell 1,000 gallons of gasoline with a 10-cents-a-gallon margin, you could double your margin without adding much to your expenses.” As state regulations changed and Roscoe’s success caught the attention of others in the industry, self-service became more widely accepted among c-store operators.

Not all were immediately won over, however. “Some convenience store owners thought it was ridiculous, that no one would want to pump their own gas,” said Fred Lowder, who co-owned the Jiffy c-store chain with his father. But as it turns out, cost-conscious customers loved the idea from the start and flocked to c-stores for fill-ups.

There also was the concern about losing store traffic. “Some people thought it was a stupid idea because customers wouldn’t go inside the store anymore, and in-store sales would drop,” said Scott Negley, director of global produce management for Wayne. “But what they found was the opposite: Sales went up because the experience inside the store was better without gas-only customers clogging up the line.”

Fast forward a half-century, and the self-service world continues to evolve. To learn more, read the NACS story about how remote fueling transformed the retail landscape, and watch a video of self-serve pioneer John Roscoe sharing his insights.

The History of Self-Serve Fueling

The introduction of remote fueling in 1964 revolutionized the industry, while a number of events before and after its introduction helped make its growth possible.

1920s: Some coin-operated stations exist, such as Gasamat stations in the Rockies, which continued through the 1960s.

1930: The 20-store Hoosier Petroleum Co. attempts self-serve fueling, but the California fire marshal deemed the practice a fire hazard and put a stop to it.

1939: Socony-Vacuum Oil Co. develops the shut-off valve, which is the forerunner of today’s cut-off valves.

1947: Frank Urich opens the first modern self-serve gas station at the corner of Jilson and Atlantic in Los Angeles, California. With the slogan “Save 5 cents, serve yourself, why pay more?” Urich’s station sells more than 500,000 gallons in its first month. Urich adds to the excitement by driving empty tankers up the station, making it seem like supply was constantly being replenished to meet heavy demand. A number of other independent stations begin to offer self-serve, primarily in California, the Southwest and the Southeast.

1957: The first automatic hold-open latch/shut-off valve was approved by the NFPA Sectional Committee on General Storage of Flammable Liquids and later by UL (Underwriters Laboratories). This innovation allowed fueling to continue while attendants took care of the drivers’ other needs, such as washing the windshield or checking the oil. It also set the stage for self-service by reducing the likelihood of spills if fuel is pumped by untrained drivers.

1964: On June 10, the Supertron Remote Control Gas Station system is installed at John Roscoe’s Big Top convenience store in Westminster, Colorado. Within a month the store is averaging nearly 500 gallons per day. Previously, self-service required an attendant to reset the pumps after each fueling and also collect the money at the fueling island. By November, Supertron units are operating in seven states. The units allow retailers to sell fuel at a lower price, typically two to four cents less than other stations.

1965: Several major oil companies say that they would try self-service, generally coin-op, but cannot legally do so because of state fire codes.

1966: Estimates put the number of self-serve stations between 500 and 1,000 sites, mostly in the West. A major oil company, American Oil Co. (later named Amoco) tests it at two sites, but closed them both after it conducted the test to gain more information. Only 17 states permit self-serve fueling, and there are also many local ordinances prohibiting it.

1966: The first self-serve unit opens in New York at a Clay Oil station in Poughkeepsie, New York, coincidentally next to a firehouse.

1966: About 50% of stations in Stockholm, Sweden, are self-serve, and there are 2,000 self-serve stations in West Germany.

1967: The New York Supreme Court rules in March that local ordinances barring self-serve fueling are illegal. The case relates to the city of Yonkers passing an ordinance prohibiting self-serve unless the fueler had a “certificate of fitness.” The decision paves the way for others states to similarly eliminate full-service mandates.

1968: The City of London (U.K.) permits the use of unattended fueling. British Petroleum announces that it will open units within the city.

Twenty-three states continue to ban self-service, according to the Colorado Petroleum Marketers Association.

1969: In May, a revision to an amendment in the National Fire Protection Code is clarified at its annual meeting. The Fire Marshals Association of America has a heated discussion at its annual meeting on self-serve. It approved the recommendation to allow it, as long as there is an attendant on duty during hours of operation. The move was advocated by the National Self-Service Gasoline Association, which was formed April 1, 1969.

1969: Humble Oil & Refining Co. kicks off a multi-state campaign to test self-serve.

1970: Self-service is now at 4,600 stations in 33 states, according to Dresser-Wayne, up from 2,500 in 1969, 1,500 in 1968 and less than 1,000 in 1967. An estimated 75% of these locations are in the West and Southwest.

1972: The Los Angeles Fire Department’s Fire Commission, with much controversy, recommends permitting self-serve at the city’s 7,000 stations. Estimates put self-serve operations at 7,500 of the 220,000 stations throughout the United States.

1973-74: OPEC announces an oil embargo against countries (including the United States) that supported Israel during the October 1973 Yom Kippur War. Arab nations establish strict supply quotas and oil prices to shoot up nearly four-fold. This oil price shock led consumers to find ways to save on their fill-ups, such as using self-serve. And it led to a big increase in convenience stores selling self-serve gas. In 1973, only 13% of convenience stores sold gas. In a decade, that percentage quadrupled — to 52% in 1983. Today, 80% of convenience stores sell fuel.

Today: More than 123,000 convenience stores sell fuel, and self-serve is available in 48 states except for New Jersey and Oregon. New Jersey’s full-service law was enacted in 1949; Oregon’s in 1951. Oregon does allow limited self-service in certain instances, such as some rural locations during specific hours.

About NACS
National Association of Convenience Stores (NACS) advances the role of convenience stores as positive economic, social and philanthropic contributors to the communities they serve. The U.S. convenience store industry, with more than 154,000 stores nationwide selling fuel, food and merchandise, serves 160 million customers daily—half of the U.S. population—and has sales that are 10.8% of total U.S. retail and foodservice sales. NACS has 2,100 retailer and 1,750 supplier members from more than 50 countries.

NACS Contact:
Jeff Lenard
V.P., Strategic Industry Initiatives
703-518-4272

|
Publishing Dates: 06/12/18 – 08/12/18
|
Back To News/PR Index
|
Hospitality Newsmaker Alert