What Is My Convenience Store Worth?

Convenience stores are one of the most frequently bought and sold small business types. The combination of steady foot traffic, diverse revenue streams (fuel, tobacco, food, beverages, lottery), and relatively simple operations makes them attractive to a wide buyer pool.

Here's how to value your convenience store.

Typical Valuation Ranges

Most convenience stores sell for 2x to 3.5x SDE.

Stores with fuel operations are valued differently — fuel revenue generates thin margins, so the inside sales (merchandise, food, lottery, tobacco) drive most of the profit and valuation.

Factors that push toward the higher end:

• High-traffic location (major intersection, near highway)
• Strong inside sales (food service, beverages, snacks)
• Fuel sales with branded supplier relationship
• Lottery and tobacco commissions
• Revenue above $1M in inside sales
• Long-term lease or owned property
• Clean, modern store format

Factors that push toward the lower end:

• Off-the-beaten-path location with low traffic
• Fuel-heavy revenue with minimal inside sales
• Aging store format or poor condition
• Short remaining lease
• Owner works all shifts
• Declining foot traffic or neighborhood deterioration

Understanding the Revenue Streams

Fuel Sales

Fuel drives traffic but generates thin margins — typically $0.10–$0.25 per gallon. Buyers don't value fuel revenue at the same multiple as inside sales. A store doing $2M in fuel sales at 5% margin contributes $100K in gross profit — far less than $500K in inside sales at 35% margin.

Inside Sales

Merchandise, prepared food, beverages, and snacks carry 30–40% gross margins. This is where the real profit lives. Stores with strong food service programs (hot food, coffee, made-to-order) significantly outperform those without.

Lottery and Tobacco

Commission-based revenue from lottery tickets and tobacco products provides steady income with minimal labor. These commissions add to the bottom line with almost no incremental cost.

Key Metrics Buyers Evaluate

Inside Sales Revenue and Margin

Buyers focus almost entirely on inside sales profitability. $300K+ in annual inside sales with 35%+ margins is healthy for a standalone convenience store.

Fuel Volume

Gallons pumped per month matters for traffic generation. 80,000–150,000+ gallons per month indicates a strong fueling location.

Food Service Revenue

Stores with active food programs (roller grill, coffee bar, deli, or made-to-order) generate higher per-customer revenue and attract repeat visits. Food can represent 20–30% of inside sales at premium margins.

Labor Efficiency

Convenience stores run lean. Total labor cost (including owner's replacement salary) should target 12–18% of total revenue.

Location Metrics

Daily traffic count, visibility, parking, and proximity to highway exits or residential density all factor into location quality.

How to Increase Your Convenience Store's Value

1. Invest in food service. Coffee programs, hot food, and fresh grab-and-go options dramatically increase inside sales margins. This is the highest-ROI investment for most stores.
2. Upgrade the store format. Clean, well-lit, modern layouts attract more customers and justify premium pricing. Even basic improvements — new flooring, LED lighting, organized shelving — help.
3. Maximize product mix. High-margin categories (beverages, snacks, candy, energy drinks) should have prime shelf space.
4. Secure your lease. 5–10 years remaining with renewal options. Location is everything.
5. Implement POS tracking. Modern POS systems track sales by category, identify trends, and provide the data buyers need for due diligence.
6. Clean up your records. Convenience stores with murky financials face automatic buyer skepticism. Document everything.

Ready to Find Out What Your Convenience Store Is Worth?

Browse the valuation multiples guide for current industry data, or schedule a free call for a confidential valuation.