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 A UNITED STATES 
 DEPARTMENT OF 
 COMMERCE 
 PUBLICATION 
 
 
 
 URBAN 
 
 PROFILE 
 
 CONVENIENCE 
 STORES 
 
 U.S. 
 
 DEPARTMENT 
 
 OF 
 
 COMMERCE 
 
 Economic 
 
 Development 
 
 Administration 
 
 Office of 
 
 Minority Business 
 
 Enterprise 
 
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For sale by Superintendent of Documents, U.S. Government Printing Office 
 Washington, D.C., 20402 - Price 25 cents 
 
URBAN 
 
 BUSINESS 
 
 PROFILE 
 
 CONVENIENCE 
 STORES 
 
 SIC 5411 
 
 April 1972 
 EDA-72-59586 
 
 Prepared for 
 ECONOMIC DEVELOPMENT ADMINISTRATION 
 
 in cooperation with 
 OFFICE OF MINORITY BUSINESS ENTERPRISE 
 
 U. S. DEPARTMENT OF COMMERCE 
 - Washington, D.C. 20230 
 
 Peter G. Peterson, Secretary 
 
 Robert A. Podesta, Assistant Secretary 
 §•• for Economic Development 
 
 o John L. Jenkins, Director 
 
 Office of Minority Business Enterprise 
 
This report was prepared by Boise Cascade Center for Community 
 Development, Washington, D.C., under contract with the Office of 
 Economic Research, Economic Development Administration. The 
 statements, findings, conclusions, recommendations, and other data 
 in this report are solely those of the contractor and do not necessar- 
 ily reflect the views of the Economic Development Administration. 
 
FOREWORD 
 
 As part of a continuing program to provide encouragement and 
 assistance to small business ventures, the U.S. Department of Com- 
 merce is issuing a series of Urban Business Profiles. 
 
 It is hoped that these reports will serve as a meaningful vehicle 
 to introduce the prospective small urban entrepreneur to selected 
 urban-oriented businesses. More specifically, a judicious use of 
 these profiles could: provide a potential businessman with a better 
 understanding of the opportunities, requirements, and problems 
 associated with particular businesses; provide guidelines on types 
 of information required for location-specific feasibility studies; 
 assist urban development groups in their business creation activities. 
 
 <t .^V^Cx^^ 
 
 Robert A. Podesta 
 Assistant Secretary 
 for Economic Development 
 
Table of Contents 
 
 Recommendation 
 
 Description of the Industry 
 
 Business Activities — Industry Characteristics 
 
 Page 
 
 1 
 1 
 
 Industry Growth 3 
 
 IV. Location 3 
 
 V. Investment 4 
 
 Plant and Equipment — Inventory 
 
 VI. Operating Information 7 
 
 Gross Margin — Price Differentials — Operating 
 Ratios — Productivity Measures 
 
 VII. Ownership and Franchising 8 
 
 VIM. Starting a New Operation 9 
 
 Location — Organization — Affiliation 
 
 BIBLIOGRAPHY/TRADE ASSOCIATION 
 
 OFFICE OF MINORITY BUSINESS ENTERPRISE (OMBE) AFFILIATES 
 
 URBAN BUSINESS PROFILES 
 
URBAN BUSINESS PROFILE 
 Convenience Stores 
 
 (SIC 5411) 
 
 I. Recommendation 
 
 The convenience store is a fast-growing segment of the retail food 
 business which provides an attractive opportunity for independent 
 business ownership and management. The industry is relatively easy 
 to enter, and with some training and experience in foodstores, an in- 
 dividual has adequate opportunities to achieve business success. Al- 
 though certain aspects of the business are complex, a new store 
 owner or manager can secure help in buying and in resolving man- 
 agerial problems through franchise operation, membership in a coop- 
 erative, or affiliation with a voluntary wholesale organization. While 
 convenience stores have expanded rapidly throughout many subur- 
 ban areas, their growth has not been as great within the inner city, 
 and appropriate locations in these areas offer minority entrepreneurs 
 a favorable opportunity to establish themselves in the industry. 
 
 II. Description of the Industry 
 
 The National Association of Convenience Stores describes the con- 
 venience store as a shop oriented towards convenience goods, lo- 
 cated to serve a neighborhood, occupying 1,000 to 3,000 square feet, 
 and with space to park five to 15 cars. Most convenience stores op- 
 erate for long hours — usually from 7 a.m. to 11 p.m. — and some 
 stores operate 24 hours per day. Convenience stores provide a serv- 
 ice supplemental to other types of retail firms, such as supermarkets 
 and discount centers specializing in fill-in items. Convenience stores 
 stock only those frequently demanded items needed by the house- 
 wife between major supermarket shopping trips. However, conven- 
 ience stores are classified as retail grocery stores, Standard Industrial 
 Classification (SIC) 5411. 
 
Table 1 gives some of the characteristics of the convenience store: 
 
 TABLE 1 
 Convenience Store Characteristics, 1967 
 
 Characteristics 
 
 Gross area of building (square feet) 
 
 Investment (excluding inventory) 
 
 Inventory (number of items) 
 
 Employees 
 
 Hours open per day (7 days per week) 
 
 Parking spaces available 
 
 Sales per customer 
 
 Average customer shopping time 
 
 Customer trips per week 
 
 Percent of customers living within half a mile 
 
 Percent of customers living more than 
 
 1 mile away 
 Percent of customers who drive to store 
 Weekly sales 
 Gross margin 
 Income before tax 
 
 Mean 
 
 Range 
 
 2,400 
 
 2,000 to 4,000 
 
 $50,000 
 
 $40,000 to $120,000 
 
 2,500 
 
 1,500 to 3,000 
 
 2.5 
 
 2 to 7 
 
 15 
 
 12 to 24 
 
 11 
 
 5 to 15 
 
 $1.25 
 
 
 4 minutes 
 
 2 to 12 minutes 
 
 4 to 5 
 
 2 to 6 
 
 50% 
 
 30 to 75% 
 
 20% 
 
 to 40% 
 
 85% 
 
 
 $3,000 
 
 $1,700 to $5,000 
 
 25% 
 
 20 to 30% 
 
 3.5% 
 
 2 to 6% 
 
 A brief glance at the table indicates that the convenience store is a 
 very small scale operation, requiring only minimal investment. While 
 operating with sophisticated sales and stocking techniques, the store 
 is, in fact, based on a rather simple concept and can be adequately 
 controlled by one person with some training. Some businessmen 
 have seen the convenience store as a return to the "mom and pop" 
 days of food shopping. However, this is not the case, since the only 
 resemblance is in size. In all other characteristics the convenience 
 store now closely resembles the supermarket, although there are im- 
 portant differences. It will be noted that the inventory is on the aver- 
 age only one-fifth the size of that of a supermarket. Weekly sales are 
 being compared to the smallest supermarkets, but gross margins and 
 income are higher (income as much as two to three times higher). 
 This may be attributed to the charging of higher prices for the high 
 degree of convenience offered by the long business hours and the 
 elimination of waiting time. Convenience stores are usually more 
 personal, friendly, and neighborly than supermarkets. Employees are 
 usually recruited from the neighborhood served by the shop. On the 
 average, 50 percent of the customers live within half a mile of the 
 shop and pass it three or four times per day on other trips. Above all, 
 the convenience store is convenient. 
 
III. Industry Growth 
 
 The convenience store is undoubtedly filling a wide gap in the 
 retail food market, and the growth has been spectacular. Industry 
 statistics indicate that the number of convenience stores increased 
 600 percent in the 1960's. 
 
 TABLE 2 
 Growth of Convenience Stores in the U. S., 1957-70 
 
 
 Number 
 
 
 
 Percent 
 
 
 of 
 
 
 Average 
 
 of U.S. 
 
 Year 
 
 shops 
 
 Total sales 
 
 sales 
 
 grocery sales 
 
 1957 
 
 500 
 
 $ 75,000,000 
 
 $150,000 
 
 .2 
 
 1960 
 
 2,500 
 
 375,000,000 
 
 150,000 
 
 .7 
 
 1962 
 
 3,500 
 
 525,000,000 
 
 150,000 
 
 .9 
 
 1965 
 
 5,000 
 
 750,000,000 
 
 150,000 
 
 1.1 
 
 1967 
 
 8,000 
 
 1,300,000,000 
 
 151,000 
 
 1.7 
 
 1968 
 
 9,600 
 
 1,625,000,000 
 
 169,000 
 
 2.1 
 
 1970 
 
 13,600 
 
 2,673,000,000 
 
 196,500 
 
 3.0 
 
 The convenience store started its growth in the late 1950's in Flor- 
 ida and Georgia as a drive-in store with an open front. Since then, the 
 phenomenon has spread to all regions of the United States as con- 
 venience store chains have developed and thrived. 
 
 The enormous gap in average customer shopping time between the 
 supermarket (22 minutes) and the convenience store (4 minutes) is 
 the key to the success of the convenience store. The higher prices, 
 margins, and income available to the convenience store are, there- 
 fore, a function of this changing trade-off between time and money. 
 In addition, the convenience stores are discovering new opportuni- 
 ties for selling to the male customer when he shops for cigarettes or 
 beer or is running a one-item errand for his wife to supply the miss- 
 ing ingredient in the dinner she is cooking at the time. (It has been 
 estimated that two-thirds of the items bought in convenience stores 
 are used within 2 hours, and 50 percent of the customers are male.) 
 
 IV. Location 
 
 Convenience stores are oriented towards single-item or fill-in mer- 
 chandise with a very short trip time. They are, therefore, highly neigh- 
 borhood-oriented, even in the suburbs, and can often be found on 
 single-store sites, on street corners, or in small convenience-type 
 shopping centers in company with a barbershop, a drycleaning outlet, 
 and a carryout. In the urban areas, convenience stores have not flour- 
 ished as much as they have in the suburbs, largely because there tend 
 to be convenient places in which to shop already located in urban 
 neighborhoods. These are the small "mom and pop" grocery stores 
 which stay open 7 days a week, long hours each day, and have no 
 
waiting line. Moreover, there are the difficult problems of urban 
 areas associated with rundown neighborhoods, high insurance costs, 
 high crime rates, and the like. Inner-city convenience stores experi- 
 ence two or even three times the pilferage rates of the suburban 
 store, for instance, and net profit margins are necessarily affected. 
 Nevertheless, as the traditional small grocery store phases out of the 
 city, and as new neighborhoods are created through urban develop- 
 ment and low income housing, opportunities are presented for 
 minority entrepreneurs to establish convenience stores. Almost any 
 city neighborhood of 10,000 to 15,000 people not having a conven- 
 ience store or a convenience store substitute could be a potentially 
 good location. An existing supermarket need not be a problem, but 
 care should be taken to make sure there is no significant competition 
 from chain drugstores selling beer, cigarettes, and some food items. 
 
 V. Investment 
 
 The total investment needed for a convenience store is small rela- 
 tive to that required for a supermarket or grocery store. Total invest- 
 ment required will depend heavily on the cost of the facilities, if an 
 established business, or of the land and building, if a new venture. 
 Land may cost $40,000 to $50,000 in an urbanized location, and the 
 building investment will probably be between $35,000 and $40,000. 
 New equipment costs usually range from $10,000 to $20,000. If the 
 building is already built and equipment can be leased, building and 
 plant costs can be markedly reduced. The cost of the 2,500 items of 
 inventory considered to be about average for a convenience store 
 would range from $12,000 to $15,000. Operating licenses cost about 
 $500, and cash needs may be $2,500 at the commencement of busi- 
 ness. If the new owner/manager decides to become a franchisee of 
 one of the larger national chains, the initial investment would be 
 raised by about $10,000. A common financing plan for the new inde- 
 pendent convenience store uses about $40,000 of owner's equity in- 
 vestment to secure a bank loan of from $60,000 to $100,000 of long 
 term debt. 
 
 Inventory constitutes a large proportion of total investment (15 to 
 20 percent), and the choice of items is, therefore, very important 
 both in terms of getting the best investment for one's dollar and in 
 terms of the future operating ratios of the store — in particular its 
 profitability. 
 
 Nationally advertised brand name items predominate. Because the 
 store is small and is catering to convenience, the operator must ad- 
 here to a policy of stocking only the most frequently demanded items 
 of the family grocery budget, with the constraint that the items have a 
 speedy turnover and a high unit margin. Surveys of some of the chains 
 show the proportion of items carried in each subcategory. 
 
TABLE 3 
 Types of Items Carried 
 
 Convenience Store (Typical) 
 
 Total 
 
 Grocery 
 
 Nonfoods 
 
 HaBa* 
 
 Baked goods 
 
 Dairy 
 
 Meat 
 
 Frozen goods 
 
 Produce 
 
 * HaBa = Health and beauty aids. 
 
 48 to 53% 
 
 19 to 23% 
 
 12 to 15% 
 
 2 to 
 
 4% 
 
 3 to 
 
 5% 
 
 1 to 
 
 3% 
 
 1 to 
 
 3% 
 
 1 to 
 
 2% 
 
 2,000 to 3,000 items 
 
 TABLE 4 
 What Convenience Stores Sell 
 
 Product % Handlinj 
 
 Bread 100% 
 
 Butter 100 
 
 Cheese 100 
 
 Eggs 100 
 
 Milk 100 
 
 Soft drinks 100 
 
 Lunch meats, pkg 100 
 
 Health and beauty aids 100 
 
 Tobacco 100 
 
 Frozen foods 98 
 
 Light bulbs 98 
 
 Stationery 95 
 
 Beer 90 
 
 Baked foods 90 
 
 Produce, bulk 87 
 
 Toys 87 
 
 Frozen seafood, pkg 85 
 
 Housewares 82 
 
 Frozen poultry, pkg 75 
 
 Frozen red meats, pkg 75 
 
 Candy, boxed 75 
 
 Product % Handling 
 
 Ladies' hosiery 75% 
 
 Soft goods 70 
 
 Ice cubes 60 
 
 Radio tubes 60 
 
 TV tubes 60 
 
 Pet rack 60 
 
 Greeting cards 60 
 
 Produce, packaged 55 
 
 Garden supplies 45 
 
 Gourmet foods 45 
 
 Records 40 
 
 Fresh poultry, pkg 35 
 
 Wine 27 
 
 Fresh red meats, pkg 25 
 
 Liquor 18 
 
 Fresh seafood, pkg 15 
 
 Small appliances 15 
 
 Fresh poultry, service 4 
 
 Fresh red meats, service 4 
 
 Fresh seafood, service 4 
 
 Over 80 percent of the items are in the following categories: "gro- 
 cery/' "nonfoods/' and "HaBa." Most of these items are delivered to 
 the store prepackaged, and goods handling and preparing is cut down 
 to a minimum in order to save on labor costs. This is the basic reason 
 why so few produce, meat, baked and frozen items are carried in 
 convenience stores. Perishables involve higher costs both in labor and 
 equipment, and profit contribution is generally not worth the extra 
 
cost involved in carrying them. Even when perishables are carried, 
 they are usually prepackaged at the warehouse or central distributing 
 plant. 
 
 On the average, a supermarket has four to five times as many items 
 as a convenience store, the quantity varying in difference from as 
 much as 15 times more in the produce section to one to five times as 
 much in the nonfoods section. Thus, the choice of inventory is a criti- 
 cal one for the convenience store and one which requires much skill 
 and judgment, both in terms of the item's contribution to net profit 
 and as it relates to the tastes and values of the neighborhood cus- 
 tomers. 
 
 The details of contribution of items to total weekly sales are inter- 
 esting. A 1967 study published in Progressive Grocer reveals the fig- 
 ures in Table 5 and Table 6. The grocery department contributes over 
 60 percent of the sales dollar for only 50 percent of total items, while 
 the dairy department, with 12 percent of total sales, makes up only 
 5 percent of total items. 
 
 
 TABLE 5 
 
 
 
 Contribution to Total Sales (Weekly) 
 
 
 Store (Average) 
 
 $3,292.5 
 
 100.0% 
 
 Grocery 
 
 $1,995.9 
 
 60.7% 
 
 Dairy 
 
 385.6 
 
 11.7% 
 
 Baked goods 
 
 272.0 
 
 8.3% 
 
 Meat 
 
 178.5 
 
 5.4% 
 
 Produce 
 
 29.0 
 
 .9% 
 
 However, it should be kept in mind that soft drinks are included in 
 the dairy department, and there is no breakdown of grocery items, 
 which includes beer and nonfoods, for instance. The actual "Top 10" 
 best sellers, contributing 64 percent of total sales, were as follows: 
 
 
 TABLE 
 
 6 
 
 
 
 "Top 
 
 10' 
 
 Best Sellers 
 
 
 
 Beer (all brands) 
 
 
 
 
 $ 561 
 
 
 Cigarettes 
 
 
 
 
 399 
 
 
 Soft drinks 
 
 
 
 
 206 
 
 
 HaBa 
 
 
 
 
 175 
 
 
 Milk 
 
 
 
 
 160 
 
 
 Candy 
 
 
 
 
 159 
 
 
 Bread 
 
 
 
 
 153 
 
 
 Snacks 
 
 
 
 
 135 
 
 
 Ice cream (etc.) 
 
 
 
 
 107 
 
 
 Sandwiches 
 
 
 
 
 73 
 
 
 Total 
 
 $2,128 
 
 64% (80% of total 
 
 
 
 
 
 
 profit) 
 
VI. Operating Information 
 
 Convenience stores operate on more generous margins than do 
 supermarkets, largely because they can charge higher prices for the 
 convenience component of their sales; while the range of margins on 
 products in supermarkets is 5.5 percent to 34.8 percent, the range in 
 convenience stores is 23.8 percent to 42 percent. The price differen- 
 tials between convenience stores and supermarkets are varied but, if 
 prices differ, they are almost always greater in convenience stores. 
 The range is as follows: 
 
 TABLE 7 
 Range of Price Differentials — Convenience Stores and Supermarkets 
 
 
 Convenience 
 
 
 
 
 stores 
 
 Supermarkets 
 
 Differentials 
 
 Coffee (regular) (lb.) 
 
 990 
 
 790 
 
 200 
 
 Ice cream (gal.) 
 
 — 
 
 — 
 
 100 
 
 Ice cream (qt.) 
 
 — 
 
 — 
 
 100 
 
 Cola (6-pack, 10 oz.) 
 
 590 
 
 490 
 
 100 
 
 Flour (2 lb.) 
 
 430 
 
 310 
 
 120 
 
 Baked beans (16 oz.) 
 
 250 
 
 190 
 
 60 
 
 Cigarettes (king, filter) 
 
 350 
 
 300 
 
 50 
 
 Bread (regular) 
 
 290 
 
 270 
 
 20 
 
 Milk (qt.) 
 
 310 
 
 310 
 
 — 
 
 Margin comparisons reveal quite startling differences. Table 8 
 shows these in terms of "penny profits" per dollar ($) of sales, per 
 item sold by major departments: 
 
 
 
 TABLE 8 
 
 
 
 
 Penny Profit Differentials 
 
 
 
 Convenience 
 
 
 
 
 stores 
 
 
 Supermarkets 
 
 Differentials 
 
 Frozen foods 
 
 17.00 
 
 
 9.70 
 
 + 7.30 
 
 Dairy 
 
 10.90 
 
 
 6.10 
 
 + 4.80 
 
 Nonfoods 
 
 13.20 
 
 
 17.30 
 
 — 4.10 
 
 Produce 
 
 9.40 
 
 
 5.40 
 
 + 4.00 
 
 Baked goods 
 
 7.10 
 
 
 5.40 
 
 + 1.70 
 
 Meat 
 
 16.60 
 
 
 15.10 
 
 + 1.50 
 
 Grocery 
 
 7.80 
 
 
 6.30 
 
 + 1.50 
 
 Average 
 
 8.90 
 
 7.40 
 
 + 1.50 
 
The operating ratios for a typical convenience store are thus some- 
 what different than for the supermarket. These data are derived from 
 Progressive Grocer's 1968 Annual Retail Survey. The survey shows the 
 following: 
 
 $150,000 
 
 25.4% 
 
 — 20.2% 
 
 — 1.5% 
 
 + .3% 
 
 = 4.0% 
 
 1.8% 
 
 = 2.2% 
 
 TABLE 9 
 Operating Ratios for Convenience Stores 
 
 Total annual sales 
 
 Average gross margin 
 
 Operating expenses (costs) 
 
 Other overhead 
 
 Net other income 
 
 Total income before taxes 
 
 Taxes 
 
 Net income = 2.2% ($3,300) 
 
 Measures of productivity are less important in these small scale op- 
 erations than in supermarkets. In general, labor productivity is low 
 because of the long business hours involved. The typical store re- 
 quires at least 250 man hours per week to operate; sales per man- 
 hour are seldom more than $4. Sales per square foot average between 
 $1 and $2, again much lower than in the supermarket industry. Sales 
 per transaction average about $0.90 to $1.25, again a low figure com- 
 pared to supermarket averages. An interesting comparison, however, 
 is in terms of sales per customer shopping time in the store. For 
 supermarkets the average time is 22 minutes, and average purchases 
 equal $5.75, 26 cents per minute. For convenience stores the average 
 time is 4 minutes and $1.07, an average of 27 cents per minute, al- 
 most identical to the supermarket. 
 
 VII. Ownership and Franchising 
 
 Of the approximately 14,000 convenience stores now in operation, 
 about 15 percent are owned by individual small companies (with less 
 than 10 stores each), 65 percent by corporations (mostly large chains) 
 and 20 percent are franchised. Because of reduced risk and higher 
 profitability, the trend is towards franchise and away from corporate 
 ownership; almost all the large chains are turning toward the fran- 
 chising method. 
 
 One typical chain is corporation-owned, highly neighborhood- 
 oriented, with stores of fairly large size (up to 6,000 square ft.) which 
 are open 7 days per week for 16 hours per day. The average manager 
 is 36 years old. He has between three and six employees. Supervision 
 by the corporation is exercised by intensive training of the manager, 
 a target of "profitability after 1 year," and a long-range goal of 
 $250,000 sales per year. Monthly goals are also set. Strict productivity 
 orientation is typical. 
 
 8 
 
A major franchising operation features store sizes of 50 feet by 50 
 feet with 12 parking spaces. The stores carry an inventory of 3,000 
 nationally advertised items. These stores are open from 7 a.m. to 12 
 midnight and return an average profit of Vk percent (net before 
 taxes). The firm reports that a typical franchisee makes $17,000 per 
 year from his operation. Total franchisee investment is about $25,000 
 (though only one quarter of this has to be in the form of a cash down- 
 payment). The franchising costs after the initial investment are: 
 
 1% of gross sales for royalties; 
 
 2% of gross sales for services (legal, accounting, 
 supervision, business training and help); 
 
 1% of gross sales for advertising (including a grand 
 opening and the distribution of 2,000 hand- 
 bills per week in the neighborhood). 
 
 Another franchising operation operates on a similar basis. How- 
 ever, in this case, the typical franchisee investment is $13,400, which 
 is broken down as follows: 
 
 Inventory $11,000 
 
 Deposit 1,600 
 
 Cash register 200 
 
 Supplies 400 
 
 License 200 
 
 Total $13,400 
 
 In this case the company does not supply the equipment, which 
 must be provided by the franchisee. 
 
 Experience in food retailing is a valuable ingredient in the profit- 
 able convenience store. A new entrepreneur may find that, for $3,000 
 to $10,000 in basic franchise fees, he can enter in partnership with a 
 successful food retailing operation. It is strongly recommended, how- 
 ever, that the prospective entrepreneur obtain actual store manage- 
 ment experience before entering into a franchise agreement or ac- 
 quiring a store of his own. 
 
 VIII. Starting a New Operation 
 
 The individual attempting to start a new convenience store opera- 
 tion in the inner city should attempt to find an appropriate location 
 first. An elaborate statistical survey is not absolutely necessary, but 
 inspection of the proposed neighborhood should be made to learn: 
 
 a. The number of people within a short walking distance of the 
 proposed location; 
 
 b. The amount of competition, particularly from stores that will 
 be selling the same kinds of items during the same hours of 
 operation; 
 
c. The quality of the competition, in terms of number of items 
 carried, appearance of store, number of hours open, etc. 
 
 Small commercial space which might be available in connection 
 with new housing in the inner city may be ideal for the establishment 
 of a convenience store. 
 
 The potential businessman should investigate the various franchis- 
 ing, cooperative, and voluntary wholesale organizations he might 
 join. A careful study should be made of the advantages of each, the 
 special services each provides, and the cost. 
 
 Before deciding whether or not to affiliate with an organization, he 
 should determine detailed financing requirements, particularly for 
 franchise fees, equipment, and inventory. If a lease guarantee is re- 
 quired this should be noted, too. This material, along with a detailed 
 analysis of the proposed site, should be assembled and discussed with 
 local banks or development organizations specializing in providing 
 financial and technical assistance for the purpose of promoting mi- 
 nority enterprises. Many of these organizations can help direct quali- 
 fied applicants to sources of financing. Potential applicants can dem- 
 onstrate their qualifications by the care and thoroughness with which 
 they prepare their preliminary studies and estimates and by the 
 amount of their own funds they are willing to invest in the proposed 
 venture. 
 
 It should be recognized by the new entrepreneur that successful 
 convenience stores usually require 6 to 12 months to break even and 
 about 2 years for profitable operations. Enough financing is needed 
 for the new store so that initial operating losses can be adequately 
 covered without impairing service. 
 
 10 
 
BIBLIOGRAPHY 
 
 Convenience Store Journal 
 
 September 
 
 1968 
 
 PP 
 
 6+ 
 
 September 
 
 1968 
 
 PP 
 
 14+ 
 
 September 
 
 1968 
 
 PP 
 
 18+ 
 
 September 
 
 1968 
 
 PP 
 
 26+ 
 
 September 
 
 1968 
 
 PP 
 
 32+ 
 
 September 
 
 1968 
 
 PP 
 
 34+ 
 
 January 
 
 1969 
 
 PP 
 
 15+ 
 
 April 
 
 1969 
 
 PP 
 
 1 + 
 
 August 
 
 1969 
 
 PP 
 
 6+ 
 
 August 
 
 1969 
 
 PP 
 
 10+ 
 
 August 
 
 1969 
 
 PP 
 
 18+ 
 
 August 
 
 1969 
 
 P 
 
 24 
 
 September 
 
 1969 
 
 PP 
 
 4+ 
 
 September 
 
 1969 
 
 PP 
 
 10+ 
 
 Progressive 
 
 Grocer 
 
 
 
 Annual 
 
 1967 
 
 
 October 
 
 1967 
 
 Rep 
 
 rint 
 
 November 
 
 1967 
 
 PP 
 
 62+ 
 
 May 1968 pp 78+ 
 
 April 1969 pp 55+ 
 
 April 1969 pp 88+ 
 
 May 1969 pp 190+ 
 
 June 1969 pp 46+ 
 
 'Trade Winds" 
 
 'The State of the Industry" 
 
 "The People Pleasing Pedens" 
 
 "A Mini-Study: Non-Foods" 
 
 "Movement" 
 
 "Advertising" 
 
 "The Shopulation Study" 
 
 "The State of the Industry" 
 
 "Convenience Store Franchising' 
 
 "Trade Winds" 
 
 "Beer Merchandising" 
 
 "Personalized Service for the 
 
 Affluent" 
 "Trade Winds" 
 "Food Distribution Conference 
 
 Emphasizes Convenience" 
 
 Chapter III — 2nd Book of Progress 
 
 "Convenience Stores Carve 
 
 Out Larger Niche" 
 "Inside the Convenience Store" 
 "The Billion-Dollar Part-Time 
 
 Shopper" 
 "Push Button Convenience Store 
 
 Offers Grocery Shopping Plus 
 
 Car Care" 
 "U.S. Grocery Sales Reach $77.73 
 
 Billion, up 7.3% Over Previous 
 
 Year" 
 "Convenience Stores Show 
 
 Continued Strong Growth" 
 "Shopping in the Round Part of 
 
 'Difference' at Park-It Market" 
 "The Supermarket" 
 
 11 
 
Supermarketing 
 
 PP 
 
 
 May 1969 
 
 25+ 
 
 May 1969 
 
 P 
 
 37 
 
 May 1969 
 
 PP 
 
 44+ 
 
 June 1969 
 
 PP 
 
 13+ 
 
 "Marsh — Coming of Age in 
 
 Indiana" 
 "Retailing Diversifies to Satisfy 
 
 Customer Needs" 
 "Retailers Find Happy Hunting in 
 
 Bantamland" 
 "Food Industry Reviews 1968 
 
 Performance" 
 
 United States Government, U.S. Department of Commerce, Busi- 
 ness and Defense Services Administration, Washington, D.C. 20230. 
 U.S. Industrial Outlook. "Grocery Stores," 1969. 
 
 Bank of America Small Business Reporter, "Convenience Food 
 Stores," San Francisco, 1970. 
 
 Convenience Food Stores, Research Brochure No. 25, Stanford 
 Research Institute, Menlo Park, California 94025. October 1969. 
 
 "The State of the Industry," 1970. Convenience Store Journal. 
 
 TRADE ASSOCIATION 
 
 The National Association of Convenience Stores 
 1835 K Street, N.W. 
 Washington, D.C. 20006. 
 
 12 
 
OFFICE OF MINORITY 
 
 BUSINESS ENTERPRISE 
 
 (OMBE) AFFILIATE ORGANIZATIONS 
 
 Albuquerque 
 
 National Economic Development 
 
 Association (NEDA) 
 1801 Lomas, N. W. 
 Albuquerque, N. M. 87104 
 508/843-2386 
 Victor M. Casaus, 
 
 Regional Vice President 
 
 Atlanta 
 
 Atlanta Business League (NBL) 
 
 329 Walker Street, S. W. 
 
 Atlanta, Georgia 30314 
 
 404/524-5449 
 
 Franklin F. O'Neal, Executive Director 
 
 Wendell White (OMBE Representative) 
 
 404/526-6304 
 
 Baltimore 
 
 Morgan State College Minority 
 
 Business Enterprise Project 
 2108 North Charles Street 
 Baltimore, Maryland 21218 
 301/685-0610 
 Ralph J. Ross, Executive Director 
 
 Boston 
 
 The Roxbury Small Business 
 
 Development Center 
 126 Warren Street 
 Roxbury, Massachusetts 02119 
 Bernard Wiley — Acting Executive 
 
 Director 
 617/427-6333 
 
 Frank Bispham (OMBE Representative) 
 617/223-2381 
 
 Chicago 
 
 Chicago Economic Development 
 
 Corporation (CEDC) 
 162 North State Street, Suite 600 
 Chicago, Illinois 60601 
 231/368-0011 
 Garland Guice, Executive Director 
 
 Bennett Johnson, Jr. (OMBE 
 Representative) 
 
 312/353-4460 
 
 NEDA 
 
 537 Dearborn South 
 
 Chicago, Illinois 60605 
 
 312/939-2607 
 
 Gilbert M. Vega, 
 
 Regional Vice President 
 
 Cincinnati 
 
 Determined Young Men 
 
 3880 Reading Road 
 
 Cincinnati, Ohio 45229 
 
 513/221-0180 
 
 Merven Stenson, Executive Director 
 
 Cleveland 
 
 Greater Cleveland Growth Corporation 
 
 690 Union Commerce Building 
 
 Cleveland, Ohio 44115 
 
 216/241-4313 
 
 Melvin Roebuck, Executive Director 
 
 Minority Economic Developers 
 
 Council (MEDCO) 
 10518 Superior Avenue 
 Cleveland, Ohio 44106 
 Armond L. Robinson, Administrator 
 
 Dallas 
 
 Dallas Alliance for Minority Enterprise 
 
 (DAME) 
 7200 North Stemmons Freeway 
 Suite 1006, UCC Tower 
 Dallas, Texas 75222 
 214/637-5170 
 Walter Durham, Executive Director 
 
 Denver 
 
 Colorado Economic Development 
 
 Association (CEDA) 
 1721 Lawrence Street 
 Denver, Colorado 80202 
 303/255-0421 
 Edward Lucero, Executive Director 
 
 13 
 
Detroit 
 
 Inner City Business Improvement 
 
 Forum (ICBIF) 
 6072 - 14th Street 
 Detroit, Michigan 48208 
 313/361-5150 
 Walter McMurtry, President 
 
 El Paso 
 
 NEDA 
 
 First National Building 
 Suite 10B 
 
 109 North Oregon Street 
 El Paso, Texas 79901 
 915/533-7423 
 Jose Manuel Villalobos, 
 Regional Vice President 
 
 Indianapolis 
 
 Indianapolis Urban League 
 445 North Pennsylvania Street 
 Indianapolis, Indiana 46204 
 317/639-5391 or 253-5418 
 Sam Jones, Executive Director 
 
 Kansas City 
 
 Black Economic Union (BEU) 
 
 2502 Prospect 
 
 Kansas City, Missouri 64127 
 
 816/924-6181 
 
 Curtis McClinton, President 
 
 NEDA 
 
 703 North 8th Street 
 
 Kansas City, Kansas 66100 
 
 913/342-6663 
 
 Richardo Villalobos, 
 
 Regional Vice President 
 
 Los Angeles 
 
 South Central Improvement Action 
 
 Committee (IMPAC) 
 8557 South Broadway 
 Los Angeles, California 90003 
 213/751-1155 
 Louis Wilson, Director 
 
 The East Los Angeles Community 
 
 Union (TELACU) 
 1330 South Atlantic Boulevard 
 Los Angeles, California 90022 
 213/268-6745 
 Claude Martinez, 
 
 Director of Development 
 
 NEDA 
 
 5218 East Beverly Boulevard 
 
 Los Angeles, California 90022 
 
 213/724-6484 
 
 Silvestre Gonzales, 
 
 Regional Vice President 
 jack Wilburn, Coordinator 
 213/824-7691 
 Powell McDaniel (OMBE 
 
 Representative) 
 213/824-7715 
 
 Joseph Luna (OMBE Representative) 
 213/824-7715 
 
 Memphis 
 
 Memphis Business League (NBL) 
 
 384 E. H. Crump Boulevard 
 
 Memphis, Tennessee 39126 
 
 901/574-3213 
 
 Leonard J. Small, Sr., Project Director 
 
 Harold Jones (OMBE Representative) 
 
 901/534-3216 
 
 Miami 
 
 NEDA 
 
 8551 Coral Way 
 Suite 307 
 
 Miami, Florida 33155 
 305/221-5531 
 Dr. Antonio Machado, 
 Regional Vice President 
 
 Newark 
 
 MEDIC Enterprises, Inc. 
 287 Washington Street 
 Newark, New Jersey 07102 
 
 201/642-8054 
 
 New Haven 
 
 Greater New Haven Business and 
 Professional Men's Association 
 226 Dixwell Avenue 
 New Haven, Connecticut 06511 
 Gerald S. Clark, Executive Director 
 203/562-3819 
 
 New York 
 
 Puerto Rican Forum, Inc. 
 
 156 Fifth Avenue 
 
 New York, New York 10010 
 
 212/691-4150 
 
 Hector I. Vasquez, Executive Director 
 
 14 
 
New York (continued) 
 
 Capital Formation, Inc. 
 215 W. 125th Street, Room 313 
 New York, New York 10027 
 Hirom C. Cintron, Director, Harlem 
 
 Office 
 212/222-9650 
 
 Brooklyn Local Economic Development 
 
 Corporation (BLEDCO) 
 1519 Fulton Street 
 Brooklyn, New York 11216 
 212/493-1663 
 Preston Lambert, Executive Director 
 
 NEDA 
 
 19 West 44th Street 
 
 Room 407 
 
 New York, New York 10036 
 
 212/687-1128 
 
 David J. Burgos, 
 
 Regional Vice President 
 
 Philadelphia 
 
 Entrepreneurial Development 
 
 Training Center 
 1501 North Broad Street 
 Philadelphia, Pennsylvania 
 215/763-3300 
 Alphonso Jackson, Director 
 
 Phoenix 
 
 NEDA 
 
 Amerco Towers 
 
 2721 North Central 
 
 Suite 727 South 
 
 Phoenix, Arizona 85004 
 
 602/263-8070 
 
 Joseph Sotelo, 
 
 Regional Vice President 
 
 Pittsburgh 
 
 Business & Job Development 
 
 Corporation (BJDC) 
 7800 Susquehanna Street 
 Pittsburgh, Pennsylvania 15208 
 412/243-5600 
 Forrest L. Parr, President 
 Marian Diggs (OMBE Representative) 
 412/644-5529 
 
 Richmond 
 
 National Business League 
 
 700 North Second Street 
 
 Richmond, Virginia 23219 
 
 703/649-7473 
 
 Allen Roots, Acting Project Director 
 
 San Antonio 
 
 NEDA 
 
 1222 North Main Street 
 
 Kallison Tower, Room 422 
 
 San Antonio, Texas 78233 
 
 512/224-1618 
 
 Cipriano F. Cuerra, Jr. 
 
 Regional Vice President 
 Jesse Rios (OMBE Representative) 
 512/225-5511 
 
 San Francisco 
 
 Plan of Action for Challenging 
 
 Times (PACT) 
 635 Divisadero Street 
 San Francisco, California 94117 
 415/922-7150 
 Everett Brandon, President 
 
 Seattle 
 
 United Inner City Development 
 
 Foundation 
 1106 East Spring St. - Xavier Hall 
 Seattle, Washington 98122 
 206/626-5440 
 Wilson Culley, Executive Director 
 
 Washington, D. C. 
 
 Mayor's Economic Development 
 
 Committee (MEDCO) 
 1717 Massachusetts Ave., N. W., 
 
 Room 704 
 Washington, D. C. 20036 
 202/667-6480 
 Michael D. Wallach, Director, 
 
 Business Assistance Center 
 Curley King (OMBE Representative) 
 202/967-5051 
 Howard University's Small Business 
 
 Guidance & Development Center 
 Post Office Box 553 
 Washington, D. C. 20001 
 202/636-7447 
 Dr. Wilford White, Director 
 
 15 
 
Profiles of urban businesses are for sale at listed prices by the 
 Superintendent of Documents, U.S. Government Printing Office, 
 Washington, D.C. 20402. 
 
 Beauty Shops (25 cents) 
 Bowling Alleys (30 cents) 
 Building Service Contracting 
 
 (30 cents) 
 Children's and Infants' Wear 
 
 (25 cents) 
 Contract Construction (30 cents) 
 Contract Dress Manufacturing 
 
 (25 cents) 
 Convenience Stores (25 cents) 
 Custom Plastics (30 cents) 
 Dry Cleaning (25 cents) 
 
 Furniture Stores (25 cents) 
 Industrial Launderers & Linen 
 
 Supply (30 cents) 
 Machine Shop Job Work (30 cents) 
 Mobile Catering (25 cents) 
 Pet Shops (30 cents) 
 Photographic Studios (25 cents) 
 Real Estate Brokerage (25 cents) 
 Savings & Loan Associations 
 
 (30 cents) 
 Supermarkets (30 cents) 
 Preparing a Business Profile (20 cents) 
 
 <rU.S. GOVERNMENT PRINTING OFFICE: 1972-72 1-924/697 
 
PENN STATE UNIVERSITY LIBRARIES 
 
 llillllilllllllll 
 
 AD0007DTL42L.37 
 
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