Power of Partnerships Fuels JC Oil’s Growth
Competition—especially from major players—looms large in the c-store and fuel arena. But unlike some contenders, Madison, Ga.-based, family-owned and operated JC Oil LLC is unafraid to face competition and unwilling to walk away from the industry. Rather, the fuel marketer continues a move to expand both its business and network of dealers, with partnerships as a key catalyst for growth.
“Even with competition what it is and other (pressures), we’re not afraid to go forward,” said company principal Mike Chawla, who alongside his father Paul (also a principal) founded JC Oil LLC in 2001. The company initially operated c-stores with gas stations, then branched out by becoming a fuel supplier to its own stores in 2013. Six years later, it exited the retail business to concentrate on wholesaling fuel.
The JC Oil LLC portfolio currently encompasses nearly 150 c-store and petroleum retailers in Georgia, North Carolina, and South Carolina; of these, some are owned by JC Oil LLC and leased to the operators that run them, while others are dealer-owned and operated. JC Oil LLC supplies fuel to dealers in both categories. Six sites offer 76® branded fuel supplied by Houston-based Motiva Enterprises, and J C Oil’s focus will be on growing the 76® brand going forward.
Teaming Up
Chawla said teaming up with Motiva bodes well for JC Oil’s business, playing a key role in keeping competitors at bay. Notably, Motiva provides support for events and initiatives designed to strengthen ties with communities and build consumer awareness. Recently, Motiva helped JC Oil plan, execute, and promote a customer appreciation event in Suwanee, Georgia with appearances and autograph signings by Atlanta United legends, entertainment, branded giveaways, a raffle for tickets to an Atlanta United match - and $0.76 gas, which was the biggest draw for consumers.
During this event, in conjunction with the Atlanta United Community Fund, J C Oil donated $10,000 to benefit two organizations that feed the hungry—the Atlanta Community Food Bank and Meals by Grace—each received $5,000.
J C Oil also harnesses technology available under the 76® brand umbrella. Chawla cited the Fuel Forward™ app as an example. The app allows consumers to find and get directions to 76®-branded locations), initiate payment at the pump or inside the store and access everyday fuel savings and special fuel promotions throughout the year.
Additionally, Motiva provides J C Oil with a comprehensive, turnkey solution to keep the company and its dealers top of mind with existing and potential customers. This includes ready-to-launch social media posts and digital advertising support to promote grand openings & customer appreciation events.
More Than Fuel
Just as JC Oil leverages its partnership with Motiva as a linchpin for growing its business, the company works with its dealers to foster their growth and, by extension, its own. Said Chawla, “When it comes to our dealers, we’re more than just a fuel supplier.”
Accordingly, JC Oil helps dealers to monitor their weekly sales and, if needed, determine why volume is decreasing or remains flat. “We’ll look very closely at what’s behind the numbers,” explained Chawla. “For example, are they being competitive enough on gas prices for their market? Is there new competition? Then we’ll figure out how to address” the situation.
Meanwhile, a “mystery shopper cheat sheet,” developed in-house after Chawla and his team discovered that standard mystery shopper scoring systems were too confusing to effectively serve their purpose, aids dealers in upholding the quality of their c-stores as well as their ability to adhere to the company’s brand standards. Dealers score points for every affirmative answer to questions that range from whether employees are neatly dressed in uniform and wearing name tags and if restrooms are clean and properly stocked, to whether bollards in the forecourt look as they should, and more. The minimum acceptable score is 80 and the desired score, 90 or above; dealers can get help raising their score if needed.
In a slightly different vein, but toward the same end, JC Oil also negotiates what Chalwa called “better rates” with vendors so dealers can save on “everyday (inventory) purchases.” These rates are typically unavailable to single-store operators. Special rates for outside services, such as pump repairs and regulatory compliance, are available. Assistance with other, somewhat minor issues—like POS equipment malfunctions—is provided by JC Oil’s in-house technicians.
Dealers can also opt into JC Oil’s ATM program, which includes the option to purchase the machines from the company or elsewhere, plus regular cash loading. Cash arrives at dealers’ c-stores via armored truck. Under the umbrella of a payment processing program, dealers have complimentary access to free POS equipment for processing credit, debit, EBT, and fleet cards. JC Oil promotes itself as offering “the lowest and best” card processing rates, “guaranteed” to beat those charged by any of its competitors.
“We really invest in our dealers, as well as help with anything related to c-stores using our industry experience,” stated Chawla. “If we don’t have a program to help them, we’ll find one and connect them to it.”
Expansions on Tap
Chawla added that JC Oil’s future plans are heavily centered on expanding its dealer network in Georgia, North Carolina, and South Carolina alike. Several sites are currently in the pipeline, and efforts to scout out additional candidates continue.
The company is looking to acquire sites with a minimum fuel sales volume of 50,000-60,000 gallons per month. Sites that fail to meet the company’s criteria for one reason or another (e.g., they lack up-to-date fuel pumps or are poorly managed), but appear to have the potential for improvement, remain on the radar. So, too, do a handful of sites that are already served by JC Oil, but do not meet its brand standards and do not bear the company’s brand
“It can take six months to two years for us to add a site,” concluded Chawla. “But we’re persistent. Like partnerships, persistence is the key to growth.”