·         Grocery Chains

·         Discount Clubs

·         Price Club – COSTCO

·         Sam’s Club

·         Independent Marketers

·         Cut Rate Stations

Increasing C-Store competition from niche marketers:

·         Coffee Shops (Starbucks)

·         Bagel Shops (Noah’s, Einstein’s)

·         Donut Shops (Dunkin’ Donuts)

·         Quick service restaurants (McDonalds, Burger King)

·         Smoke Shops – (Cigarette Depot, Cigarettes Cheaper)

·         Juice Bars

·         Independent Marketers

·         7-11

Other Business Factors:

·         Flat or declining motor fuel margins

·         Flat food shop sales

·         Increasing number of vendors pre-pricing products reducing control & margins

o        Frito Lay – Hostess – Wrigley – etc

·         On-going shrinkage problem

·         Low unemployment resulting in:

o        Tight labor supply

o        Higher starting wages

o        Tough competition for quality employees

o        High employee turnover with additional expenses related to turnover

·         Poor accounting procedures

o        Poor internal accounting practices

o        Inadequate records given to accountants

o        Low percentage of proper financial statements

·         Rents

·         Employee benefits

·         Fees and permits

·         Environmental expense

·         Credit card fees

·         Insurance

·         Higher facility maintenance

·         Wage & Hour issues

·         Looking out and not looking in