Retail Site Analysis. ZKN Group, LLC U.S. Highway 59 El Campo, Texas 77437

Transcription

1 Retail Site Analysis ZKN Group, LLC U.S. Highway 59 El Campo, Texas February 2, 2018

2 Project Summary The studied site is a closed fuel convenience center positioned at U.S. Highway 59 in El Campo, Texas. It has been proposed to upgrade, modernize, and operate a new generation fuel and convenience center. The focus of this evaluation is the anticipated average monthly gasoline, diesel, convenience store, and fast food sales volumes during the first three years of planned operation. A detailed facility upgrade strategy has been created and analyzed for projection purposes. Table of Contents Management Summary 3 Site Photos and Survey 7 Traffic Summary 10 Facility Upgrade Strategy 12 Projections: Metrics and Range 15 Competition Summary and Map Fuel, Convenience, and Fast Food 16 Trade Area Map and Demographics 27

3 Management Summary U.S. Highway 59, El Campo Site Characteristics The site is located along the east side of U.S. Highway 59, north of FM 960, in Wharton County. Site address is U.S. Highway 59, El Campo U.S. Highway 59 is a divided, four-lane, north/south artery. Posted speed 75 MPH U.S. Highway 59 Business (Loop 525) is an undivided, two-lane, north/south artery that borders the site and merges with U.S. Highway 59 relative to the site. Posted speed 50 MPH FM 960 is an undivided, two-lane artery that forms a T -intersection with U.S. Highway 59 Business south of the site. FM 960 forms an overpass relative to U.S. Highway 59, which creates northbound and southbound highway access. The total site consists of 7.28-acres and affords direct frontage along U.S. Highway 59, FM 960, and along U.S. Highway 59 Business. Site access exists via one drive cut along U.S. Highway 59, and two drive cuts along U.S. Highway 59 Business. Future highway upgrade may eliminate direct drive cut with no timeline established. Vehicular movement is unregulated relative to the site. FM 960 is regulated by a STOP sign and flashing RED light at U.S. Highway 59 Business. Site visibility is unrestricted. Visibility/reaction ratios are impacted by setback of highway off ramps. IMST Traffic Counts Based on 24-Hour Count (2017) U.S. Highway 59 27,079 U.S. Highway 59 Business 3,932 FM 960 SB 375 Total Traffic 31,469 Page 3

4 Competition Competitive Summary: Fuel and Convenience Store Fuel Brands/Chains Sunoco, Shell, Exxon, Valero, Stripes, Prasek s, Buc-ee s # of Competitors 7 Gasoline/Diesel Positions 186/190 Total Store Square Footage 37,000 SF Average Distance from Site 5.3-Miles Competitive Summary: Fast Food Brands/Chains Jack in the Box # of Competitors 1 # of Interior Seats 43 Total QSR SF 2,500 Co-Brand Fast Food 4 Average Distance from Site 3.8-miles Trade Area The trade area is centered along U.S. Highway 59, at the northeast edge of El Campo, in Wharton County. El Campo is a highway community centered at U.S. Highway 59 and State Highway 71, between Houston and Victoria. U.S. Highway 59 carries in excess of 27,000 vehicles per day with a strong mix of commercial trucks. The surrounding area is low density dominated by agricultural land uses. Trade area residents are low and moderate-income households. 59% of residents are Hispanic and 55% of occupations are blue collar. 39% of housing units are renter occupied and 11% are mobile homes. Trade Area 2016 Population 3-Mile 6, Households 3-Mile 4,074 % Household Change Mile 1.5% 2016 Average HH Income 3-Mile $52, Median HH Income 3-Mile $38,280 Total Household Vehicles 3-Mile 3,684 Total Employees 3-Mile 4,074 Total Daytime Population at Home 3-Mile 3,695 Page 4

5 Facility Upgrade Strategy: Four (4) MPD s with eight (8) fueling positions, diesel hoses, and dive-in dispenser configuration. Six (6) segregated truck fueling lanes with satellite hoses and canopy. Major brand gasoline with full exterior image and competitive pricing with branded alternatives. LED price signage. Highway pathfinders, billboard signage, and hi-rise signage categories. 6,250 square foot convenience center with modern amenities, services, fixtures, and fast food. Fourteen (14) up-front convenience store parking spaces. Truck parking for thirty (30). Advanced convenience store merchandising with beer, wine, cigarette, tobacco, snack food, candy, beverage, and convenience categories. Competitive store pricing. Expanded fountain beverage counter with full flavor selection and frozen beverages. Expanded coffee counter with multiple roasts, broad condiment selection, and logo cups. Sixteen (16) door walk-in cooler with LED lighting. Integrated made to order grab and go taqueria, burger, and cajun fast food items. Breakfast, lunch, meal, and snack items. Expanded, interior restrooms with good appearance and cleanliness. Three (3) cashier stations with good standards of customer service. ATM. Lottery. Trucker amenities will include diesel desk, Wi-Fi lounge, showers, and laundry. Convenience center operational 24 hours per day, 7 days per week. Dickey s BBQ fast food program. Full Dickey s BBQ brand image and signage compliance. Subway fast food program. Full Subway brand image and signage compliance. Interior fast food seating and express take-out service. Volume & Sales Projections Average Monthly Projections Year 1 Year 2 Year 3 Gasoline Volume (Gallons) 83,634 85,216 86,227 Diesel Volume (Gallons) 144, , ,171 Convenience Store Sales (Dollars) $123,110 $125,789 $127,427 Dickey s BBQ Sales (Dollars) $44,427 $45,715 $46,471 Subway Sales (Dollars) $22,847 $23,509 $23,898 Summary Retail Site Analysis utilizes consumer expenditure, demographics, traffic, and competition to determine sales potential. Projections are driven by the capture, transfer, and frequency of U.S. Highway 59 passenger and commercial vehicles. Volume and sales projections require best-in-class development strategy and competent travel plaza operations combined with high profile lighting, signage, and billboard marketing. Strong operation and service standards will be critical to compete with alternative U.S. Highway 59 fuel convenience centers and travel plazas within El Campo and Wharton. Page 5

6 Summary (continued) Volume penetration is restricted by aggregate residential and employee demand and direct and secondary competition along U.S. Highway 59. The surrounding trade area is low density with limited amounts of housing and retail support. Primary traffic demand is northbound. Site visibility/reaction ratios relative to the northbound exit ramp position are below average. A multi-faceted exterior high-rise and off-site signage program creating facility and brand awareness will be implemented. U.S. Highway 59 is competitively mature with a mix of modern chain, brand, and independent competitors. The proposed fuel truck stop/travel plaza must be positioned as a customer-oriented independent operation offering expanded merchandise and services designed to attract highway travelers. Prasek s Shell (Map #2), Stripes Sunoco (Map #4), and Buc-ee s (Map #7) are established destination highway shopping points and negatively impact the proposed facility s ability to attract highway passenger vehicle traffic. Stripes Sunoco includes segregated truck diesel capacity. Volume projections are based on existing road configurations. Future Interstate 69 highway upgrades may eliminate direct drive cut with no timeline established. Convenience store sales projections include proprietary fast food. Convenience store sales do not include specialty commercial trucker merchandising categories, gift, and novelty merchandising. It must be determined whether an adequate return on investment exists in the short term based on the volume projections provided. An analysis of volume projections combined with anticipated construction budgets, sales margins, and operational costs must be conducted in continuation of the feasibility process. Page 6

7 Site Photos Ste approach northbound on U.S. Highway 59 Business Ste approach southbound on U.S. Highway 59 Business U.S. Highway 59 facing north Page 7

8 Site Photos (continued) Site viewed from FM 960 overpass Site viewed from the north on property Page 8

9 Site Survey Page 9

10 Traffic Summary U.S. Highway 59, El Campo Highway Artery: U.S. Highway 59 Secondary Artery: U.S. Highway 59 Bus Tertiary Artery: FM 960 Highway Artery: U.S. Highway 59 Average Daily Traffic Counts Texas DOT (2016) Combined movement relative to the site 23,206 Combined movement south of the site 23,160 Combined movement south of the site 5,796 Combined movement west of the site 674 Average Daily Traffic Counts Determined by IMST (2017) Northbound movement (non-truck/truck) 9,358/4,266 Southbound movement (non-truck/truck) 10,275/3,180 Total U.S. Highway 59 (non-truck/truck) 19,633/7,446 Primary Artery: U.S. Highway 59 Bus Secondary Artery: FM 960 Total U.S. Highway 59 27,079 Average Daily Traffic Counts Determined by IMST (2017) Northbound movement (non-truck/truck) 3,462/350 Southbound movement (non-truck/truck) 82/38 Total U.S. Highway 59 Business movement 3,932 Southbound movement (non-truck/truck) 355/20 Total FM 960 movement 375 Total Intersection Traffic (non-truck/truck) 3,899/408 Total Intersection Traffic 4,307 Page 10

11 Traffic Counts (continued) Texas DOT (2016) Page 11

12 Facility Upgrade Strategy: Travel Center Name: Proposed Facility Brand: Major Case # 1 Location: U.S. Highway 59 Intersection: W Type: Convenience Store Impact: Forecourt & Exterior Posted Prices 4 MPD's Standard Canopy Unleaded $ Electronic Pay Air/Water Midgrade 8 # of Gas Hoses Yes CRIND's Premium 3 # of Gas Grades 7 Brand Sign Facings Diesel $ # of Fueling Positions 4 Price Sign Facings Card Discount 12 # of Diesel Hoses Yes Pre Pay Fuel 6 # of Truck Lanes 3 # of Access Points Strategy 0.00 # of Kerosene Hoses Average Visibility 0.00 # of E-85 Hoses None Traffic Regulation Competitive Impact # of EV Stations Crossover Road Configuration Gasoline Score # of Self Service Hoses Average On Site Movement Diesel Score 24.5 # of Full Service Hoses 75 Posted Speed Convenience Store Score Dive In Fuel Configuration 6,250 Size of Store Fast Food Score 44.0 None Car Wash 10 Up Front Parking Distance Score 1.00 Convenience Store 16 Walk In Cooler Doors Average Maintenance Interior Restrooms 3 Reach In Cooler Doors Average Interior Lighting Average Snack Merchandising Yes LED Cooler Lighting Average Interior Signage Average Tobacco Merchandising Walk In Freezer Doors Average Fountain Beverage Full Credit/Debit Card 3 Reach In Freezer Doors Average Frozen/Specialty 24 Hours of Operation Open Coolers Average Coffee Bar 3 Cashier Stations 1 Interior Ice Doors 5 Beer/Wine Doors Yes Lottery 2 Exterior Ice Doors Yes Beer Cave Yes ATM 2 Novelty Freezers Subway Fast Food Brand Yes Uniforms Average Interior Visibility Dickey's BBQ Average Customer Service/Experience Made2Order Fast Food Page 12

13 Facility Upgrade Strategy: Fast Food Brand: Dickey's BBQ Operation: Franchise Case # 1 Location: U.S. Highway 59 Type: QSR - BBQ Intersection: NE QSR Exterior Competitive Impact - QSR Fast Food Score ,500 Size 3 # of Access Points Brand Score 9 7 # of Brand Sign Facings Average Visibility 14 # of Parking Spaces None Traffic Regulation 30 # of Interior Seats Crossover Road Configuration Regional Brand Recognition Average On Site Movement Full Brand Image Compliance 75 Posted Speed Drive Thru Service Drive Thru Stacking Pre-Order Menu Board Exterior Play Area Average Exterior Maintenance Excellent Exterior Lighting QSR Interior Average Interior Visibility Yes Employee Uniforms Average Interior Maintenance Yes ATM Average Interior Lighting Yes Credit Card/Debit Average Interior Signage Yes 24 Hours Average Fountain Beverage Bar Interior Play Area Coffee Bar Full Menu Day Parts Interior Restrooms Page 13

14 Facility Upgrade Strategy: Fast Food Brand: Subway Operation: Franchise Case # 1 Location: U.S. Highway 59 Type: QSR - Sandwich Intersection: NE QSR Exterior Competitive Impact - QSR Fast Food Score Size 3 # of Access Points Brand Score 12 7 # of Brand Sign Facings Average Visibility 14 # of Parking Spaces None Traffic Regulation 30 # of Interior Seats Crossover Road Configuration National Brand Recognition Average On Site Movement Full Brand Image Compliance 75 Posted Speed Drive Thru Service Drive Thru Stacking Pre-Order Menu Board Exterior Play Area Average Exterior Maintenance Excellent Exterior Lighting QSR Interior Average Interior Visibility Yes Employee Uniforms Average Interior Maintenance Yes ATM Average Interior Lighting Yes Credit Card/Debit Average Interior Signage Yes 24 Hours Average Fountain Beverage Bar Interior Play Area Coffee Bar Full Menu Day Parts Interior Restrooms Page 14

15 Projections, Analytical Range, & Metrics U.S. Highway 59 El Campo Trade Area Metrics Primary Area of Influence 3-Mile Total Interchange Traffic 31,468 Trade Area in Square Miles Trade Area Population Density 61 Trade Area Employee Density 141 Projection Metrics Annual Gasoline Volume Year 1 1,003,608 gallons Annual Diesel Volume Year 1 1,734,408 gallons Annual Convenience Store Sales Year 1 - $1,477,320 Proprietary Fast Food Sales Percentage Year 1 6.6% Annual Dickey s BBQ Sales Year 1 - $533,124 Annual Subway Sales Year 1 - $274,164 Average Monthly Volume & Sales Projections Year 1 Year 2 Year 3 Fuel Volume (Gallons) 228, , ,398 Gasoline Volume (Gallons) 83,634 85,216 86,227 Diesel Volume (Gallons) 144, , ,171 Convenience Store Sales (Dollars) $123,110 $125,789 $127,427 Dickey s BBQ Sales (Dollars) $44,427 $45,715 $46,471 Subway Sales (Dollars) $22,847 $23,509 $23,898 Analytical Volume & Sales Range LOW Year 1 Year 2 Year 3 Fuel Volume (Gallons) 195, , ,302 Convenience Store Sales (Dollars) $110,763 $113,182 $114,653 Dickey s BBQ Sales (Dollars) $39,793 $40,988 $41,652 Subway Sales (Dollars) $20,464 $21,078 $21,420 HIGH Year 1 Year 2 Year 3 Fuel Volume (Gallons) 242, , ,048 Convenience Store Sales (Dollars) $135,472 $138,428 $140,261 Dickey s BBQ Sales (Dollars) $49,146 $50,616 $51,617 Subway Sales (Dollars) $25,274 $26,029 $26,544 Page 15

16 Competitive Analysis Summary Trade Area Summary Brands and Convenience Chains 7 Total Competitive Units 5.4 Average Distance in Miles 194 Total Gasoline Fueling Positions 184 Total Auto Diesel Fueling Positions 36,700 Total Convenience Store Square Footage 5,243 Average Convenience Store Square Footage Competitive Impact Scores Posted Prices Average Gasoline Impact Score Market Price Gasoline $ Average Diesel Impact Score 70.8 Average Convenience Impact Score Lead Price Gasoline $ Average Fast Food Impact Score 0.1 Average Distance Impact Score Market Price Diesel $ Maximum Competitor Impact Score Lead Price Diesel $ Minimum Competitor Impact Score Date: 9/12/2017 Impact Scores Shell Exxon Stripes Shell Exxon Valero Buc-ee's Page 16

17 Competition Analysis: Convenience Store and Fuel Name: Prasek's Smokehouse Brand: Shell Map #: 1 Location: State Highway 71 and Norris Street Intersection: SW Type: Convenience Store Distance: 10.0 Forecourt & Exterior Posted Prices 8 MPD's Updated Canopy Unleaded $ Electronic Air/Water Midgrade $ # of Gas Hoses Yes CRIND's Premium $ # of Gas Grades 2 Brand Sign Facings Diesel $ # of Fueling Positions 2 Price Sign Facings Card Discount 16 # of Diesel Hoses Yes Pre Pay Fuel # of Truck Lanes 3 # of Access Points Strategy # of Kerosene Hoses Average Visibility # of E-85 Hoses Stop Traffic Regulation Competitive Impact # of EV Stations Crossover Road Configuration Gasoline Score # of Self Service Hoses Average On Site Movement Diesel Score 17.5 # of Full Service Hoses 75 Posted Speed Convenience Store Score Stacked Fuel Configuration 6,000 Size of Store Fast Food Score 34.0 Car Wash 30 Up Front Parking Distance Score Walk In Cooler Doors Average Maintenance Expanded Restrooms Reach In Cooler Doors Average Interior Lighting Limited Snack Merchandising Yes LED Cooler Lighting Average Interior Signage Average Tobacco Merchandising Walk In Freezer Doors Excellent Fountain Beverage Full Credit/Debit Card Reach In Freezer Doors Limited Frozen/Specialty 18 Hours of Operation 2 Open Coolers Excellent Coffee Bar 2 Cashier Stations 3 Interior Ice Doors 6 Beer/Wine Doors Yes Lottery Exterior Ice Doors Beer Cave Yes ATM Novelty Freezers Bakery Fast Food Brand Yes Uniforms Average Interior Visibility Praseks Fast Food Average Customer Service/Experience Date: 9/12/2017 Convenience Store Page 17

18 Name: Zip In Zip Out Brand: Exxon Map #: 2 Location: U.S. Highway 59 and FM 1163 Intersection: SE Type: Convenience Store Distance: 4.8 Forecourt & Exterior Posted Prices Anticipated Development Strategy 5 MPD's Updated Canopy Unleaded $2.49 Competitive Electronic Pay Air/Water Midgrade 10 # of Gas Hoses Yes CRIND's Premium 3 # of Gas Grades 4 Brand Sign Facings Diesel $2.49 Competitive 10 # of Fueling Positions 2 Price Sign Facings Card Discount 10 # of Diesel Hoses Yes Pre Pay Fuel 3 # of Truck Lanes 2 # of Access Points Strategy 0.04 # of Kerosene Hoses Average Visibility 0.00 # of E-85 Hoses None Traffic Regulation Competitive Impact # of EV Stations Divided Road Configuration Gasoline Score # of Self Service Hoses Average On Site Movement Diesel Score 18.5 # of Full Service Hoses 45 Posted Speed Convenience Store Score 68.8 Dive In Fuel Configuration 4,000 Size of Store Fast Food Score 34.0 Car Wash 10 Up Front Parking Distance Score Walk In Cooler Doors Average Maintenance Expanded Restrooms Reach In Cooler Doors Average Interior Lighting Average Snack Merchandising Yes LED Cooler Lighting Average Interior Signage Average Tobacco Merchandising Walk In Freezer Doors Average Fountain Beverage Full Credit/Debit Card Reach In Freezer Doors Average Frozen/Specialty Hours of Operation Open Coolers Average Coffee Bar Cashier Stations Interior Ice Doors Beer/Wine Doors Lottery Exterior Ice Doors Beer Cave ATM Novelty Freezers Fast Food Brand Uniforms Average Interior Visibility Made2Order Fast Food Average Customer Service/Experience Date: 9/12/2017 Competition Analysis: Convenience Store and Fuel Convenience Store Page 18

19 Competition Analysis: Convenience Store and Fuel Name: Sunoco Brand: Stripes Map #: 3 Location: U.S. Highway 59 and State Highway 71 Intersection: NW Type: Convenience Store Distance: 3.9 Forecourt & Exterior Posted Prices 10 MPD's Updated Canopy Unleaded $ Electronic Pay Air/Water Midgrade $ # of Gas Hoses Yes CRIND's Premium $ # of Gas Grades 4 Brand Sign Facings Diesel $ # of Fueling Positions 4 Price Sign Facings Card Discount 20 # of Diesel Hoses Yes Pre Pay Fuel Unld Cash $ # of Truck Lanes 3 # of Access Points Strategy # of Kerosene Hoses Average Visibility 0.00 # of E-85 Hoses Stop Traffic Regulation Competitive Impact # of EV Stations Undivided Road Configuration Gasoline Score # of Self Service Hoses BelowAvg On Site Movement Diesel Score 31.5 # of Full Service Hoses 45 Posted Speed Convenience Store Score 38.3 Stacked Fuel Configuration 4,000 Size of Store Fast Food Score 14.0 Car Wash 12 Up Front Parking Distance Score Walk In Cooler Doors Average Maintenance Interior Restrooms 3 Reach In Cooler Doors Average Interior Lighting Average Snack Merchandising Yes LED Cooler Lighting Average Interior Signage Average Tobacco Merchandising Walk In Freezer Doors Excellent Fountain Beverage Full Credit/Debit Card 4 Reach In Freezer Doors Average Frozen/Specialty 24 Hours of Operation 1 Open Coolers Average Coffee Bar 3 Cashier Stations 2 Interior Ice Doors 5 Beer/Wine Doors Yes Lottery 4 Exterior Ice Doors Beer Cave Yes ATM 1 Novelty Freezers DeliExpress Fast Food Brand Yes Uniforms Restricted Interior Visibility Made2Order Fast Food Poor Customer Service/Experience Date: 9/12/2017 Convenience Store Page 19

20 Competition Analysis: Convenience Store and Fuel Name: Shell Brand: Shell Map #: 4 Location: U.S. Highway 59 and State Highway 71 Intersection: NE Type: Convenience Store Distance: 3.8 Forecourt & Exterior Posted Prices 5 MPD's Updated Canopy Unleaded $ Electronic Pay Air/Water Midgrade $ # of Gas Hoses Yes CRIND's Premium $ # of Gas Grades 6 Brand Sign Facings Diesel $ # of Fueling Positions 4 Price Sign Facings Card Discount 4 # of Diesel Hoses Yes Pre Pay Fuel Unld Cash $ # of Truck Lanes 3 # of Access Points Strategy 0.14 # of Kerosene Hoses Average Visibility 0.00 # of E-85 Hoses Stop Traffic Regulation Competitive Impact # of EV Stations Undivided Road Configuration Gasoline Score # of Self Service Hoses BelowAvg On Site Movement Diesel Score 7.5 # of Full Service Hoses 45 Posted Speed Convenience Store Score 41.7 Dive In Fuel Configuration 1,500 Size of Store Fast Food Score 1.0 Car Wash 5 Up Front Parking Distance Score Walk In Cooler Doors Average Maintenance Interior Restrooms 1 Reach In Cooler Doors Below Avg Interior Lighting Limited Snack Merchandising Yes LED Cooler Lighting Interior Signage Average Tobacco Merchandising Walk In Freezer Doors Average Fountain Beverage Full Credit/Debit Card Reach In Freezer Doors Limited Frozen/Specialty 18 Hours of Operation Open Coolers Limited Coffee Bar 2 Cashier Stations Interior Ice Doors 5 Beer/Wine Doors Yes Lottery 2 Exterior Ice Doors Beer Cave Yes ATM 1 Novelty Freezers Fast Food Brand Yes Uniforms Average Interior Visibility NachoCheese Fast Food Below Avg Customer Service/Experience Date: 9/12/2017 Convenience Store Page 20

21 Competition Analysis: Convenience Store and Fuel Name: Pincher's Express Brand: Exxon Map #: 5 Location: U.S. Highway 59 and Divide Avenue Intersection: SW Type: Convenience Store Distance: 2.4 Forecourt & Exterior Posted Prices 3 MPD's Standard Canopy Unleaded $ Electronic Air/Water Midgrade $ # of Gas Hoses Yes CRIND's Premium $ # of Gas Grades 2 Brand Sign Facings Diesel $ # of Fueling Positions 2 Price Sign Facings Card Discount 2 # of Diesel Hoses Yes Pre Pay Fuel # of Truck Lanes 1 # of Access Points Strategy 0.04 # of Kerosene Hoses Average Visibility 0.00 # of E-85 Hoses Stop Traffic Regulation Competitive Impact # of EV Stations Crossover Road Configuration Gasoline Score # of Self Service Hoses BelowAvg On Site Movement Diesel Score 1.5 # of Full Service Hoses 75 Posted Speed Convenience Store Score 13.1 In Line Fuel Configuration 1,200 Size of Store Fast Food Score 4.0 Car Wash 5 Up Front Parking Distance Score 0.12 Walk In Cooler Doors Average Maintenance Interior Restrooms 7 Reach In Cooler Doors Below Avg Interior Lighting Poor Snack Merchandising LED Cooler Lighting Poor Interior Signage Limited Tobacco Merchandising Walk In Freezer Doors Poor Fountain Beverage Full Credit/Debit Card Reach In Freezer Doors Frozen/Specialty Hours of Operation Open Coolers Poor Coffee Bar 1 Cashier Stations Interior Ice Doors 3 Beer/Wine Doors Yes Lottery 1 Exterior Ice Doors Beer Cave Yes ATM 2 Novelty Freezers Fast Food Brand Uniforms Poor Interior Visibility PinchersExpres Fast Food Poor Customer Service/Experience Date: 9/12/2017 Convenience Store Page 21

22 Competition Analysis: Convenience Store and Fuel Name: Valero Brand: Valero Map #: 6 Location: Business U.S. Highway 59 and FM 479 Intersection: NW Type: Convenience Store Distance: 1.6 Forecourt & Exterior Posted Prices 3 MPD's Standard Canopy Unleaded $ Electronic Pay Air/Water Midgrade $ # of Gas Hoses Yes CRIND's Premium $ # of Gas Grades 2 Brand Sign Facings Diesel $ # of Fueling Positions 2 Price Sign Facings Card Discount 4 # of Diesel Hoses Yes Pre Pay Fuel # of Truck Lanes # of Access Points Strategy # of Kerosene Hoses Average Visibility 0.10 # of E-85 Hoses Stop Traffic Regulation Competitive Impact # of EV Stations CenterTurn Road Configuration Gasoline Score # of Self Service Hoses BelowAvg On Site Movement Diesel Score 8.5 # of Full Service Hoses 45 Posted Speed Convenience Store Score 22.0 Parallel Fuel Configuration 2,000 Size of Store Fast Food Score 4.0 Car Wash Up Front Parking Distance Score Walk In Cooler Doors Average Maintenance Interior Restrooms 3 Reach In Cooler Doors Below Avg Interior Lighting Limited Snack Merchandising LED Cooler Lighting Below Avg Interior Signage Average Tobacco Merchandising Walk In Freezer Doors Limited Fountain Beverage Full Credit/Debit Card Reach In Freezer Doors Poor Frozen/Specialty Hours of Operation Open Coolers Poor Coffee Bar 2 Cashier Stations Interior Ice Doors 7 Beer/Wine Doors Yes Lottery 2 Exterior Ice Doors Beer Cave Yes ATM 4 Novelty Freezers Fast Food Brand Uniforms Restricted Interior Visibility Made2Order Fast Food Poor Customer Service/Experience Date: 9/12/2017 Convenience Store Page 22

23 Competition Analysis: Convenience Store and Fuel Name: Buc-ee's Brand: Buc-ee's Map #: 7 Location: U.S. Highway 59 and FM 102 Intersection: SW Type: Convenience Store Distance: 11.5 Forecourt & Exterior Posted Prices 64 MPD's Standard Canopy Unleaded $ Electronic Pay Air/Water Midgrade $ # of Gas Hoses Yes CRIND's Premium $ # of Gas Grades 6 Brand Sign Facings Diesel $ # of Fueling Positions Price Sign Facings Card Discount 128 # of Diesel Hoses Yes Pre Pay Fuel DEF $ # of Truck Lanes 4 # of Access Points Strategy # of Kerosene Hoses Average Visibility # of E-85 Hoses Electronic Traffic Regulation Competitive Impact # of EV Stations Undivided Road Configuration Gasoline Score # of Self Service Hoses Average On Site Movement Diesel Score # of Full Service Hoses 45 Posted Speed Convenience Store Score Stacked Fuel Configuration 18,000 Size of Store Fast Food Score 14.0 Car Wash 30 Up Front Parking Distance Score Walk In Cooler Doors Average Maintenance Expanded Restrooms Reach In Cooler Doors Excellent Interior Lighting Excellent Snack Merchandising Yes LED Cooler Lighting Average Interior Signage Excellent Tobacco Merchandising Walk In Freezer Doors Excellent Fountain Beverage Limited Credit/Debit Card Reach In Freezer Doors Average Frozen/Specialty 24 Hours of Operation 2 Open Coolers Excellent Coffee Bar 6 Cashier Stations Interior Ice Doors 9 Beer/Wine Doors Lottery Exterior Ice Doors Beer Cave Yes ATM 2 Novelty Freezers Buc-ee's Fast Food Brand Yes Uniforms Average Interior Visibility Buc-ee's Fast Food Below Avg Customer Service/Experience Date: 9/12/2017 Convenience Store Page 23

24 Competitive Analysis Summary: Fast Food Trade Area QSR Summary QSR Brands and Chains 1 Total Competitive QSR Units 3.8 Average Distance in Miles 2,500 Total Fast Food Square Footage 2,500 Average Fast Food Square Footage 33 Total Parking Spaces 43 Total Interior Seats 2 Total Order Positions Competitive Impact Scores: QSR 88.6 Average Fast Food Impact Score 12.0 Average Brand Impact Score 0.1 Average Distance Impact Score Maximum Fast Food Impact Score Minimum Fast Food Impact Score Date: 9/12/2017 Impact Scores: Fast Food Jack in the Box Page 24

25 Competition Analysis: Fast Food Brand: Jack in the Box Operation: Franchise Map #: 1 Location: U.S. Highway 59 and State Highway 71 Intersection: NW Type: QSR - Burger Distance: 3.8 QSR Exterior Competitive Impact - QSR Fast Food Score ,500 Building Size 3 # of Access Points Brand Score 12 7 # of Brand Sign Facings Average Visibility Distance Score # of Parking Spaces Stop Traffic Regulation 43 # of Interior Seats Undivided Road Configuration National Brand Recognition Average On Site Movement Full Brand Image Compliance 45 Posted Speed Yes Drive Thru Service Average Drive Thru Stacking Yes Pre-Order Menu Board Exterior Play Area Average Exterior Maintenance Average Exterior Lighting QSR Interior Average Interior Visibility Employee Uniforms Average Interior Maintenance Yes ATM Average Interior Lighting Yes Credit Card/Debit Average Interior Signage Drive Thru 24 Hours Average Fountain Beverage Bar Interior Play Area Restricted Coffee Bar Full Menu Day Parts Interior Restrooms Date: 9/12/2017 Page 25

26 Competition Map W WH HA AR RT TO ON N 77 59R. 11-Miles 11-Miles Northeast Northeast 526 & Rddddd RRR 000R M99 M M M FFFFM û EL L C CA AM MP PO O E 59S. 55 D DO ON NN NA A = Gasoline/Diesel/Convenience Store = Fast Food Page 26

27 Trade Area Map 1.5-, 2-, 2.5-, and 3-Mile Rings U.S. Highway 59 El Campo, Texas mi mi mi mi mi mi W WH H AA RR TT O ON N,, TT XX mi mi 526 & dd 00 RR 9966 M FFM 59. û 71 & E EL L C CA AM MP PO O 59. û = Site Page 27

28 Demand Report U.S. Highway 59 El Campo, Texas MILE 7.07 SQ/MI 2 MILE SQ/MI 2.5 MILE SQ/MI 3 MILE SQ/MI POPULATION TREND 2010 Total Population 441 1,084 3,161 6, Total Population 481 1,146 3,296 6, Total Population 513 1,206 3,438 6,559 % Population Change 2000 to % 7.5% 5.8% 3.8% % Population Change 2000 to % 13.7% 10.3% 7.7% % Population Change 2010 to % 11.3% 8.8% 7.4% % Population Change 2017 to % 5.2% 4.3% 3.5% 2017 Total Daytime Population 550 1,753 3,407 7, Total Employees 269 1,100 1,562 4, Total Daytime at Home Population ,845 3, Total Employees (% of Daytime Population) 48.9% 62.7% 45.8% 53.0% 2017 Total Daytime at Home Population (% of Daytime Populat 51.1% 37.3% 54.2% 47.0% DENSITY 2017 Population Density Employee Density HOUSEHOLDS TREND 2010 Households ,036 2, Households ,065 2, Households ,088 2,111 % Household Change 2000 to % 6.8% 5.2% 2.6% % Household Change 2000 to % 11.6% 8.1% 4.3% % Household Change 2010 to % 7.5% 5.0% 2.9% % Household Change 2017 to % 2.9% 2.2% 1.2% 2017 Average household size: Owner occupied Average household size: Renter occupied INCOME 2010 Household income: Median $39,807 $34,210 $31,826 $33, Household income: Average $43,248 $41,687 $44,788 $50, Household income: Median $42,272 $36,817 $34,121 $36, Household income: Average $59,874 $54,485 $52,584 $53, Household income: Median $47,499 $39,874 $37,638 $39, Household income: Average $65,196 $59,074 $56,608 $57,838 HOUSEHOLD VEHICLES 2017 Households: Number of vehicles available ,923 3, Owner occupied: Number of vehicles available ,297 2, Renter occupied: Number of vehicles available ,242 Page 28

29 Demand Report U.S. Highway 59 El Campo, Texas MILE 7.07 SQ/MI 2 MILE SQ/MI 2.5 MILE SQ/MI 3 MILE SQ/MI RACE & ETHNICITY % 2017 White alone 72.3% 69.3% 68.7% 70.9% % 2017 Black or African American alone 7.5% 8.7% 9.3% 9.8% % 2017 American Indian and Alaska Native alone: Adult.0%.3%.4%.4% % 2017 Asian alone.0%.0%.1%.3% % 2017 Native Hawaiian and OPI alone.0%.0%.0%.0% % 2017Some Other Race alone 16.2% 18.2% 18.2% 15.7% % 2017 Two or More Races 4.0% 3.4% 3.0% 2.8% % 2017 Hispanic 61.1% 63.8% 63.4% 59.3% % 2017 Not Hispanic 39.1% 36.2% 36.6% 40.7% EDUCATION & OCCUPATION Education % 2017 No High School Diploma 29.2% 32.8% 33.1% 31.9% % 2017 High school graduate, GED, or alternative 38.7% 34.6% 32.9% 33.2% % 2017 College No Degree 20.4% 20.9% 21.0% 19.7% % 2017 College Degree 12.0% 11.4% 12.5% 13.6% % 2017 Advanced Degree.0%.3%.4% 1.6% % 2017 College or Advanced Degree 12.0% 11.7% 12.9% 15.2% Occupation % 2010 Occupation: White collar 55.3% 43.7% 36.8% 37.4% % 2010 Occupation: Blue collar 44.7% 56.3% 63.2% 62.6% % 2017 Occupation: White collar 50.7% 44.4% 44.8% 46.6% % 2017 Occupation: Blue collar 49.3% 55.6% 55.2% 53.4% AGE & OCCUPANCY Age 2017 Total population: Median age Male population: Median age Female population: Median age Occupancy 2017 Households ,065 2,086 % 2017 Owner occupied housing units 65.6% 61.5% 59.8% 60.3% % 2017 Renter occupied housing units 34.4% 38.5% 40.2% 39.7% Page 29

30 Demand Report U.S. Highway 59 El Campo, Texas MILE 7.07 SQ/MI 2 MILE SQ/MI 2.5 MILE SQ/MI 3 MILE SQ/MI RETAIL SALES POTENTIAL 2017 Convenience stores $192,197 $489,331 $1,389,678 $2,723, Gasoline stations with convenience stores $489,598 $1,235,097 $3,487,869 $6,815, Beer, wine, & liquor stores $40,394 $103,122 $294,414 $580, Supermarkets & other grocery (except convenience) store $658,883 $1,671,170 $4,735,579 $9,265, Restaurant Expenditures $180,078 $460,216 $1,313,850 $2,588,646 HOUSEHOLD EXPENDITURES Automotive 2017 Gasoline (Household Average) $2,013 $1,986 $1,971 $1, Diesel fuel (Household Average) $53 $49 $47 $ Gasoline on out-of-town trips (Household Average) $114 $112 $111 $ Motor oil (Household Average) $16 $16 $15 $ Lube, oil change, and oil filters (Household Average) $90 $89 $89 $ Maintenance and repairs (Household Average) $854 $841 $835 $835 Food/Alcohol/Tobacco 2017 Food at home $604,463 $1,532,548 $4,341,271 $8,491, Food at home (Household Average) $4,112 $4,087 $4,076 $4, Food away from home (Household Average) $2,971 $2,966 $2,971 $2, Meals at restaurants, carry outs and other (Household Av $2,553 $2,552 $2,558 $2, Breakfast and brunch (Household Average) $304 $304 $305 $ Lunch (Household Average) $816 $813 $813 $ Dinner (Household Average) $1,209 $1,213 $1,219 $1, Alcoholic beverages $70,214 $179,721 $514,234 $1,015, Alcoholic beverages (Household Average) $478 $479 $483 $ At home (Household Average) $275 $275 $276 $ Away from home (Household Average) $203 $204 $206 $ Beer and ale $10,325 $26,387 $75,398 $148, Beer and ale (Household Average) $70 $70 $71 $ Wine $5,262 $13,766 $39,906 $79, Wine (Household Average) $36 $37 $37 $ Other alcoholic beverages $3,107 $8,120 $23,513 $46, Other alcoholic beverages (Household Average) $45 $45 $45 $ Tobacco products and smoking supplies $55,491 $137,232 $382,791 $742, Tobacco products and smoking supplies (Household Avg) $377 $366 $359 $ Cigarettes $48,325 $120,110 $335,997 $652, Cigarettes (Household Average) $329 $320 $315 $ Other tobacco products $5,861 $13,845 $37,555 $71, Other tobacco products (Household Average) $40 $37 $35 $ Smoking accessories $1,305 $3,276 $9,239 $18, Smoking accessories (Household Average) $9 $9 $9 $9 Page 30

31 Full Demographic Report U.S. Highway 59 El Campo, Texas MILE 7.07 SQ/MI 2 MILE SQ/MI 2.5 MILE SQ/MI 3 MILE SQ/MI POPULATION OVERVIEW Population Trend 2000 Total Population 400 1,008 2,989 5, Total Population 441 1,084 3,161 6, Total Population 481 1,146 3,296 6, Total Population 513 1,206 3,438 6,559 % Population Change 2000 to % 7.5% 5.8% 3.8% % Population Change 2000 to % 13.7% 10.3% 7.7% % Population Change 2010 to % 11.3% 8.8% 7.4% % Population Change 2017 to % 5.2% 4.3% 3.5% 2017 Race and Ethnicity % 2017 White alone 72.3% 69.3% 68.7% 70.9% % 2017 Black or African American alone 7.5% 8.7% 9.3% 9.8% % 2017 Asian alone.0%.0%.1%.3% % 2017 Other Race - Population 20.2% 22.1% 21.9% 19.0% Hispanic or Latino % 2017 Hispanic 61.1% 63.8% 63.4% 59.3% % 2017 Not Hispanic 39.1% 36.2% 36.6% 40.7% 2017 Age Trend Total population: Median age Male population: Median age Female population: Median age Age 19 and Under 32.4% 33.1% 33.2% 32.3% Age 20 to % 16.0% 15.5% 14.7% Age 30 to % 12.7% 12.4% 12.1% Age 40 to % 9.9% 10.1% 10.3% Age 50 to % 15.8% 15.9% 16.7% Age 65 and Over 12.7% 12.7% 13.0% 14.0% 2017 Male Population % Male population 49.1% 49.2% 49.1% 48.9% % Male population: Under 5 years 3.5% 3.6% 3.5% 3.4% % Male population: 5 to 9 years 4.6% 4.7% 4.7% 4.5% % Male population: 10 to 14 years 4.4% 4.5% 4.5% 4.4% % Male population: 15 to 19 years 3.5% 3.9% 3.9% 3.8% % Male population: 20 to 24 years 4.8% 4.4% 4.2% 4.1% % Male population: 25 to 29 years 4.6% 4.2% 4.0% 3.7% % Male population: 30 to 34 years 3.7% 3.5% 3.4% 3.2% % Male population: 35 to 39 years 2.3% 2.4% 2.3% 2.4% % Male population: 40 to 44 years 2.1% 2.4% 2.5% 2.5% % Male population: 45 to 49 years 2.3% 2.4% 2.5% 2.5% % Male population: 50 to 54 years 2.7% 2.7% 2.6% 2.7% % Male population: 55 to 59 years 2.9% 2.8% 2.8% 2.9% % Male population: 60 to 64 years 1.9% 2.2% 2.4% 2.6% % Male population: 65 to 69 years 1.9% 1.9% 1.9% 1.9% % Male population: 70 to 74 years 1.5% 1.5% 1.5% 1.5% Page 31

32 Full Demographic Report U.S. Highway 59 El Campo, Texas MILE 7.07 SQ/MI 2 MILE SQ/MI 2.5 MILE SQ/MI 3 MILE SQ/MI % Male population: 75 to 79 years 1.0% 1.0%.9% 1.0% % Male population: 80 to 84 years.4%.5%.6%.7% % Male population: 85 years and over 1.0% 1.0% 1.0% 1.0% 2017 Female Population % Female population 50.9% 50.8% 50.9% 51.1% % Female population: Under 5 years 4.0% 4.1% 4.2% 4.1% % Female population: 5 to 9 years 3.1% 3.3% 3.4% 3.5% % Female population: 10 to 14 years 4.6% 4.6% 4.6% 4.4% % Female population: 15 to 19 years 4.6% 4.5% 4.4% 4.1% % Female population: 20 to 24 years 3.7% 3.7% 3.5% 3.4% % Female population: 25 to 29 years 3.7% 3.7% 3.6% 3.5% % Female population: 30 to 34 years 3.5% 3.6% 3.6% 3.4% % Female population: 35 to 39 years 2.9% 3.1% 3.2% 3.1% % Female population: 40 to 44 years 2.5% 2.5% 2.6% 2.6% % Female population: 45 to 49 years 2.5% 2.6% 2.6% 2.7% % Female population: 50 to 54 years 3.3% 3.1% 3.0% 3.1% % Female population: 55 to 59 years 2.9% 2.9% 2.9% 3.0% % Female population: 60 to 64 years 2.1% 2.2% 2.3% 2.5% % Female population: 65 to 69 years 2.1% 2.0% 2.0% 2.2% % Female population: 70 to 74 years 1.7% 1.7% 1.7% 1.9% % Female population: 75 to 79 years 1.0% 1.1% 1.3% 1.5% % Female population: 80 to 84 years 1.0% 1.0% 1.2% 1.2% % Female population: 85 years and over 1.0% 1.0%.9% 1.1% HOUSEHOLD OVERVIEW Household Trend 2000 Households , Households ,036 2, Households ,065 2, Households ,088 2,111 % Household Change 2000 to % 6.8% 5.2% 2.6% % Household Change 2000 to % 11.6% 8.1% 4.3% % Household Change 2010 to % 7.5% 5.0% 2.9% % Household Change 2017 to % 2.9% 2.2% 1.2% 2017 Household Size Average household size % Family households 73.5% 71.7% 70.7% 70.3% % Nonfamily households 26.5% 28.0% 29.4% 29.7% Page 32

33 Full Demographic Report U.S. Highway 59 El Campo, Texas MILE 7.07 SQ/MI 2 MILE SQ/MI 2.5 MILE SQ/MI 3 MILE SQ/MI Household Income Trend 2000 Median income $23,408 $24,199 $25,229 $26, Median income $39,807 $34,210 $31,826 $33, Median income $42,272 $36,817 $34,121 $36, Median income $47,499 $39,874 $37,638 $39,414 % Median Income Change 2000 to % 41.4% 26.1% 24.3% % Median Income Change 2000 to % 52.1% 35.2% 36.8% % Median Income Change 2010 to % 16.6% 18.3% 18.3% % Median Income Change 2017 to % 8.3% 10.3% 7.5% 2000 Household income: Average $32,091 $32,293 $33,232 $34, Household income: Average $43,248 $41,687 $44,788 $50, Household income: Average $59,874 $54,485 $52,584 $53, Household income: Average $65,196 $59,074 $56,608 $57, Household Income up to $24, % 36.8% 38.0% 36.9% $25,000 to $49, % 26.4% 27.1% 26.6% $50,000 to $74, % 18.9% 18.5% 18.2% $75,000 to $124, % 9.9% 9.2% 11.5% $125,000 to $199, % 3.7% 3.1% 3.4% $200,000 or more 5.4% 4.5% 4.0% 3.4% Income Below $75, % 82.1% 83.7% 81.7% Income $75,000 to $199, % 13.6% 12.3% 14.9% HOUSING UNITS OVERVIEW 2017 Home Value Median Home Value $97,500 $71,000 $71,061 $75,968 Average Home Value $144,990 $133,167 $124,269 $116, Occupancy Households ,065 2,086 Owner occupied 65.6% 61.5% 59.8% 60.3% Renter occupied 34.4% 38.5% 40.2% 39.7% Occupancy by Number of Units 1 Unit, Detached 77.1% 81.2% 83.5% 83.2% 1 Unit, Attached.0%.8% 1.0%.9% 2.0%.5%.6% 1.1% 3 or 4.6% 1.0% 2.1% 3.0% 5 to 9.0%.3%.5%.9% 10 to % 4.4% 3.4% 2.6% 20 to 49.0%.0%.2%.2% 50 or more.0%.0%.0%.1% Mobile home 16.6% 11.9% 8.7% 8.1% Boat, RV, van, etc..0%.0%.0%.0% 2017 Occupation Workers 16 years and over ,480 2,819 White collar 50.7% 44.4% 44.8% 46.6% Blue collar 49.3% 55.6% 55.2% 53.4% Page 33

34 Full Demographic Report U.S. Highway 59 El Campo, Texas MILE 7.07 SQ/MI 2 MILE SQ/MI 2.5 MILE SQ/MI 3 MILE SQ/MI 2017 Educational Attainment Population 25 years and over ,946 3,822 No High School Diploma 29.2% 32.8% 33.1% 31.9% High school graduate, GED, or alternative 38.7% 34.6% 32.9% 33.2% College No Degree 20.4% 20.9% 21.0% 19.7% College Degree 12.0% 11.4% 12.5% 13.6% Advanced Degree.0%.3%.4% 1.6% College or Advanced Degree 12.0% 11.7% 12.9% 15.2% 2017 Marital Status Population 15 years and over ,480 4,799 Not Married 52.3% 56.1% 58.4% 55.7% Married 47.4% 44.0% 41.6% 44.2% Average Travel Time to Work Trend 2000 Travel time: Average (in minutes) Travel time: Average (in minutes) Travel time: Average (in minutes) Work at Home Trend % 2000 Workers 16+ years who work at home 2.7% 1.8% 2.0% 2.3% % 2010 Workers 16+ years who work at home.0%.6%.7% 1.4% % 2017 Workers 16+ years who work at home 2.9% 2.6% 2.0% 2.8% Did Not Work at Home Trend % 2000 Workers 16+ years who do not work at 98.0% 98.2% 98.0% 97.7% % 2010 Workers 16+ years who do not work at 100.0% 99.6% 99.3% 98.6% % 2017 Workers 16+ years who do not work at 96.6% 97.4% 98.0% 97.2% Mode of Transportation to Work Car, truck, or van - Drove alone 91.8% 82.0% 79.5% 80.2% Car, truck, or van - Carpooled 4.3% 13.6% 16.6% 15.3% Page 34

35 Presented by: IMST Corp Park Ten Place, Suite 102 Houston, TX Phone: FAX: Website: The contents of this study, including all projections, are based on information furnished by the client, customer and data collected by IMST in the field, and from other sources. IMST does not warrant that there have been no material changes in the data since generation, including merchantability and fitness for a particular purpose with regard to the study and all underlying data and analysis. IMST makes reasonable efforts to obtain all data for the study; however, market conditions are subject to change and these changes may significantly alter actual sales. The completed study is not intended to provide a guarantee of actual business performance. It is our understanding that the studied site has been thoroughly tested regarding potential contamination and no problems now exist that create negative environmental conditions. If you should have any questions regarding this information, please call us at R1993