Gas station owners attempt to boost profits with liquor sales

A local Citgo is one of many gas stations across the state that has added alcohol to its shelves.

The gas station, located at 1301 E. Grand River Ave., recently had a liquor license transferred from the store’s previous owner.

“It’s helpful for us,” said employee Sean Alizada. “The more options you have, the more people will come to you.”

Many gas stations have begun providing alcohol in an attempt to bring in additional money, said Ed Weglarz, executive vice president for Associated Food and Petroleum Dealers.

“Even (with gas) at $3.75 a gallon, the retailer’s not making much,” Weglarz said. “They need other means to keep their nose above water.”

Citgo hasn’t seen a large increase in its profits since it obtained the license, but Alizada attributed this to students being gone for the summer. He expects to see an increase in alcohol sales once classes start in the fall.

Critics of gas stations selling alcohol are concerned with the mixture of driving and alcohol, said Ken Wozniak, spokesman for the Michigan Liquor Control Commission.

“The counterargument is that just about everyone drives to get groceries at the store,” Wozniak said. “But critics say the association with driving is stronger (at a gas station).”

Alizada said this isn’t a concern for students in East Lansing. Because Citgo is near campus, most students walk to get alcohol, he said.

“I think it’s a lot better that they don’t have to drive to Meijer,” he said. “It’s safer and more convenient.”

Social relations and policy senior Laura Warbelow said that she was not even aware gas stations could provide alcohol.

“I don’t normally go into gas stations, I just pay outside,” she said. “But I don’t necessarily think (selling alcohol there) would increase drunken driving.”

Citgo is the only gas station in East Lansing to have a liquor license and there are eight gas stations with liquor licenses in Lansing, according to the Michigan Liquor Control Commission.

In a town with a population of more than 4,000, a store must carry $250,000 of other inventory in order to apply for a liquor license.

Within the last year, this $250,000 of merchandise was broadened to include anything marketed by approved businesses, which is another reason for the increase in the number of applications for liquor licenses, Wozniak said.

This means that smaller gas stations can sell more cigarettes and meet the requirement.

“Because this is fairly recent, we will probably be seeing more and more applications,” Wozniak said.

Weglarz said alcohol may not bring gas stations the profit they hope it will. Even if it brings in extra money, the gas stations still must pay for the liquor license, which costs $70 to apply for and $150 each year, and make sure they carry the required $250,000 of other merchandise.

“(Alcohol) is not the silver bullet that will make or break a gas station,” he said.

Published on Monday, May 12, 2008