Playing the Long Game

• Adoption Lag: While EV sales are increasing, they haven't exploded as predicted. This slower growth presents a dilemma for c-stores, which thrive on high-volume, quick-turnover transactions. Investing in EV infrastructure now might not make sense if the customer base remains small in the short term. In addition, the adoption rate of EVs varies widely by geographic region, as Sioux Falls, S.D., is different from Los Angeles.
• Logistical Challenges: Unlike fuel, which fills up in minutes, EV charging takes time — often 20 minutes or more — posing logistical challenges for store layouts. Many c-stores aren't set up for long-stay customers; they're designed for quick in-and-out visits. How does a store accommodate EV drivers who are there for extended periods? More importantly, do EV customers actually come into the store during their charging time? We don't know yet if these customers are making the same kind of profitable purchases that fuel customers do. This uncertainty leaves a big question mark around the true revenue potential of EV chargers.
• Integration Issues: Another hurdle is the integration of EV chargers with the store's point-of-sale system and loyalty program. Right now, most EV chargers are separate from the store's operations. Customers pay for charging through third-party apps, meaning retailers miss out on capturing valuable customer data. Without this integration, it is difficult for c-store operators to track customer behavior or build loyalty programs around EV drivers. This creates a disconnect that could prevent c-stores from fully capitalizing on the opportunity.
• The Opportunity Ahead: Despite the challenges, the c-store industry shouldn't give up on the idea of installing EV chargers. While profitability might not be immediate, EVs are undoubtedly part of the future, and chargers will be crucial to the nation's transportation grid. Convenience stores, with their accessible locations, are well-positioned to provide this service. However, success will depend on learning and adapting.

Now is the time for operators to experiment. Figure out what kinds of services and amenities will appeal to EV drivers during their longer visits. Work with technology partners to integrate EV payments with existing systems. The retailers that take the time to understand EV customer needs and prepare their infrastructure will be the ones to benefit when electric vehicles finally become mainstream.

EV chargers may not be a goldmine today, but the long-term payoff could be significant. The operators that act now, investing wisely and learning from early efforts, will be better prepared for the inevitable tipping point when EVs become the norm.