How Much Does It Cost to Open a Convenience Store? [Convenience Store Startup Costs]

Curious about how much it really costs to open a convenience store? We’ve got the lowdown.

Everything to Know About Convenience Store Startup Costs

Americans are obsessed with convenience stores. They’re literally everywhere, with some 152,000 gracing our highways and streets, making life better for anyone who wants quick, basic provisions while filling up their tanks. In 2023, nearly every state saw an increase in convenience stores over the previous year, and some 63 percent are operated by a small-business owner with just one store. Of all the generations, the coveted Gen Z demographic enjoys the “C-store experience” the most, according to a recent study.

For budding entrepreneurs, it sounds like a dream come true. But the reality is that launching any retail store from the ground up is, well, not so convenient. 

It requires a big upfront investment and tons of research. Determining the actual cost to open a convenience store will be your biggest challenge — but also the secret to your success. There are obvious costs that immediately jump to mind, like utilities, rent, and wages for your staff. And then there are stealthier expenses that tend to sneak up, such as exterior design —  an important consideration since most double as gas stations, where some 80 percent of the country’s motor fuels are purchased.

There will be sleepless nights trying to figure it all out, for sure. But hopefully, armed with our cost breakdown, you can rest a little easier knowing you’re prepared for any curve balls.

If you’ve dreamed about your own convenience store, here’s some advice about how much it costs — and how to do it well.

How Much Does It Cost to Open a Convenience Store?

We won’t sugarcoat it: The startup costs will be some of the highest expenses you’ll ever have to face, and figuring it out will feel like a crash course in business finance.

You can expect to spend $50,000 to $100,000 or more depending on various factors such as size and location. The location of your store will impact the price, as will licenses and registrations required by your state, which can cost more than $10,000. Many factors come into play, including the rental market in your area, the size of your inventory, the number of employees, and how much you’ll be renovating your space. 

The good news is that the industry is growing nationwide, and convenience stores are small and nimble. They can easily change up their inventory and roll out new revenue streams to respond to consumer trends. The days of stale coffee and roller hot dogs are in the rearview mirror. There has been a shift toward higher-quality items, both packaged and fresh. Coffee has gotten a makeover, too, with premium and specialty beans enticing customers away from coffee shops.

As the nation’s primary source of consumer gas, convenience stores will be impacted by the electric vehicle market, which accounts for 18% of all cars in the U.S., and many stores have been upgrading with EV charge stations. 

Price Range: $50,000 – 100,000

Convenience Store Business Opening Cost by Square Foot

Expect to pay about $50 to $100 per square foot to open a convenience store. Some suburban and rural areas will be lower, whereas in premium city locations, well, the sky’s the limit. Perhaps more important is how you utilize those square feet.

Since convenience stores mainly sell packaged items that are impulse buys, a simple open layout with medium-height shelves throughout the store works best. “Eye level is buy level” rings especially true here. You’ll want to devote most of your shop’s square footage to shelf space, with a smaller area dedicated to inventory storage.

Pro tip: Customers tend to veer right as they enter, so you’ll want to place special displays there. Your most popular items and refrigerated cases should be at the back of the shop, so customers must walk past other tempting merchandise to get there.

Price Range: $50 - $100 per square foot

Startup Costs to Expect

When creating a budget for your business, it’s important to differentiate between fixed and variable costs. A fixed expense is one that typically does not change from month to month, like rent. A variable expense goes up and down from month to month, depending on your business's needs.

When starting out, do as much research as you can. You’ll want to plot out a long-distance course to know what to expect at every turn — and how you’ll pay for it.

Here are some of the most significant convenience store startup costs and expenses you can expect.

1. Utilities

Utilities such as gas, water, electricity, internet, and phones must be set up before you open your doors, and the costs can add up quickly. On average, expect to pay about $2.10 per square foot for commercial space in the U.S. Lighting and HVAC systems tend to be the biggest “energy hogs” for most small businesses. 

Price Range: Around $2 per square foot

2. Location 

While the interior of your convenience store can always be changed to create a more effortless shopping experience, the address of your store can make or break it. Finding the right spot depends on the type of store you’d like to open. Generally speaking, there are six different styles of C-stores:

• Kiosks up to 800 square feet that emphasize gas sales

• Mini-stores up to 1,200 square feet with gas pumps and minimal to no parking

• Limited selection stores, up to 2,200 square feet with gas, larger food selection, and extended hours

• Traditional 24/7 convenience stores around 2,500 square feet that rely on foot traffic and have parking lots (and no gas)

• Expanded convenience stores up to 3,600 square feet that are more akin to grocery stores

Retail rents in U.S. shopping centers have reached an average of $23.98 per square foot, according to Statista. Western states have the highest rents in the country, averaging $29.01 per square foot. The Midwest clocks in at $18.26, making it the most affordable region. Of course, rents can spiral into the stratosphere for premium, high-traffic locations (think: New York’s Fifth Avenue). 

Before you pass out from sticker shock, remember that rent will be by far the most expensive upfront cost of opening a retail store, especially since you should have more than a month — ideally two years — in accessible capital.

Price Range for a 1000 square foot store: $1,500 to $2,500 per month on average.

3. Interior Design 

You might be a financial stickler, negotiating the lowest rents and keeping your utilities in check. But when it comes to interior design, things can add up fast. Most interior designers charge for their services by the hour, ranging from $50 to $500 depending on their experience. On average, you can expect to pay $100 to $200 per hour.

Convenience store designers are well-versed in the psychology of shopping and can create a layout that encourages customer flow and subtly nudges people to buy. You’ll likely want hot and cold beverage stations, a grab-and-go deli area, and more. A designer can also advise on the best placement for gas pumps and electric vehicle charging stations.

The bottom line: your convenience store’s unique brand and purpose will greatly impact the design costs. 

Price Range: $100 to $200 per hour 

4. Finishes and Equipment

Even the most utilitarian convenience stores will need refrigerated cases, sturdy shelving, display tables, signage, lights, and a music system at a minimum. The larger stores boast digital displays and sometimes restaurants right in the middle of the store, like the Texas chain Buc-ee’s, beloved for its barbecue.  

On average, renovating a retail store costs about $56 per square foot, but it largely depends on how elaborate or bare-bones you want it to be.

5. Pre-Opening Expenses

Whether opening a kiosk on a busy highway or a corner store tucked away in a sleepy neighborhood, you’ll need everything in place the minute you launch your business. Grand openings often draw a crowd, so plan on stocking extra inventory to meet the demand.

Many convenience stores employ high schoolers or college students with little retail experience. You’ll want to invest in training your staff before the official launch, including training employees on your POS system.

6. Marketing and PR

With a convenience store practically on every corner, your marketing efforts will distinguish you from the crowd and should be at the top of your to-do list. According to a recent Forbes article, a small business owner can expect to spend anywhere from $1,000 to $5,000 on startup branding. This includes everything from website design to distributing old-fashioned fliers to spread the word. All your future marketing and PR efforts will flow from your brand, so it’s essential to make an investment upfront.

After establishing your business, ongoing marketing and public relations efforts will typically cost 5 to 10 percent of annual revenue but can go higher during times of growth, like if you expand to a second location. Things to consider: You may want to build an app for easy ordering, create customer loyalty programs, circulate coupons and discounts, and choose an email marketing service.

7. Capital and Loans

There’s nothing wrong with having big dreams of money raining down on you after the launch, but you must ensure your business is backed up with capital and contingency funding. First, the good news: the demand for convenience stores is constant and not tied to seasons or trends. If your startup expenses are kept low, you could be turning a profit within a year.

You’ll need to put aside at least six months of funding to get your small business through the bumpy startup phase while establishing your customer base. Learn more about financing and loans here.  

Price Range: $20,000–$100,000

8. Exterior Finishes and Design

If you’re allowed to change the exterior of your building, you may want to invest in sprucing it up. Painting your logo on the building, installing lighting, and adding landscaping can attract customers to your store. Eye-catching exterior signage, including LED displays in the windows, is a popular way to grab the attention of potential customers. An exterior business sign alone can range from a few hundred dollars to a few thousand.

Price Range: 1,000 square feet of exterior renovations typically cost between $1,000 and $4,000, and based on national averages provided by Angi, painting the same-sized exterior space will run an additional $3,000.

9. Organizational and Development Costs

It’s all fun and games until your convenience store is closed down because you didn’t have the right licenses. Opening any store that sells alcohol, tobacco, and lottery tickets will require a deep dive into local laws. Unless you plan to hire a consultant (or a lawyer), it’s a good idea to start your research yesterday. Costs for liquor licenses vary by state and, like many other expenses on this list, can go into the tens of thousands of dollars — and beyond. Start your journey here to find out which department you’ll be dealing with and what rules and laws your state requires. For more information about licenses, including the difference between an on-license and an off-license, refer to our Liquor License Guide.

Price Range: A liquor license costs as little as $100 in Idaho and as much as $1,400 in California. In most states, a one-year tobacco license runs about $500, with additional renewal fees. It’s around $500 for a lottery license, which includes the cost of equipment, an application fee, and a government background check.

10. Professional Services

Even if this isn’t your first retail rodeo, you might want a few professionals by your side through the tumultuous startup process. There is one professional that every entrepreneur knows they will need early on: an accountant. And now you can add two more into the mix: a lawyer and a retail business consultant.

A good attorney will assist in every aspect of your business, from permits and licensing to trademarking your logo and formally incorporating your business. A business consultant will guide you in improving your business, from branding development and market research to advising on point-of-sale and technology.

Business consultants typically charge $150 to $200 per hour. The average hourly attorney rate in 2022 was $313.00, but it varies widely, from as low as $150 to $600 or more per hour. 

Price Range: between $1,000 and $5,000

11. Technology and Point of Sale

Every retailer needs a point-of-sale system to run smoothly. Depending on your store’s needs, you’ll likely want a robust system with technologies for inventory tracking management and customer loyalty rewards, at the very least. Larger convenience stores might want tools that help manage employee scheduling and payroll.

Research a great digital ordering system as well. Who doesn’t love the convenience of ordering food and beverages online and having it delivered straight to your doorstep? Self-checkout technology and tools that allow customers to scan and pay with their phones are growing in popularity and are also worth investing in. 

Price Range: Get a Quote 

13. Staffing and Management 

You can’t be at your convenience store all the time to oversee customer exchanges and keep the shelves stocked with goodies. You’ll need to have adequate staff, which entirely depends on the size of your shop and its function: Are you a small grab-and-go outfit or competing with a supermarket? Consumers seek out convenience stores over larger markets mainly for quick checkout and extended hours. That means training your staff to use the POS blindfolded (kidding, sort of) and being prepared to hire staff around the clock. 

Price Range: According to the Bureau of Labor Statistics, the mean hourly wage for a retail salesperson in the U.S. is $17.64. When you factor in taxes and employee benefits (if you offer them), the Small Business Administration estimates total employee costs to be 1.25 to 1.4 times their salary.

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Industry averages can help you understand how much you can expect to spend when starting a convenience store. But as you build your customer base and grow your business, you’ll need to continue strategizing and researching to keep costs low and see those big returns on your investment.

Why Toast Retail is Perfect for Convenience Stores

In today's competitive retail landscape, selecting the right technology is essential for both new ventures and established businesses aiming for success. Solutions like Toast retail not only streamline operations, making them more efficient, but also provide invaluable insights to optimize the financial health of the business. 

By harnessing the power of point of sale technology, retailers can gain a competitive edge, improve customer satisfaction, and drive sustainable growth. Choosing the right technology sets the foundation for long-term success, empowering businesses to adapt to evolving market demands and thrive in an increasingly digital world.

The tech that redefined restaurants is now here to transform retail. Supercharge your store with the POS built for high volumes and complexity, offering everything you need to run your business on one platform. Toast's retail offering is a game-changer for businesses like convenience stores, liquor stores, and grocery stores, revolutionizing how they operate and interact with customers. Here's why Toast is the perfect fit for these retail environments.

1. Helps Modernize How You Sell

Toast's intuitive, cloud-based system simplifies daily operations. Its user-friendly interface makes staff training a breeze, ensuring seamless adoption across your team. Whether it's processing payments in-store or integrating with online sales channels, Toast ensures a smooth and consistent experience for your customers regardless of how they shop.

• Intuitive Cloud-Based System: Our intuitive, cloud-based system is easy to learn and easy to use. Say goodbye to complicated interfaces and hello to streamlined processes. Toast is designed to simplify your day-to-day operations, from staff training to consolidated operations, ensuring maximum efficiency and productivity.

• Seamless Payment Processing: Toast’s seamless payment processing easily integrates with online payments for smoother sales every time, no matter how your customers are shopping. This integration ensures a hassle-free experience for both customers and staff, leading to increased satisfaction and faster transactions.

• Flexible Order and Checkout Options: Offer flexible and efficient order and checkout options with reliable hardware including handhelds, kiosks, and guest-facing terminals. Adapt to the diverse needs of your customers and reduce wait times at checkout with Toast's versatile hardware solutions, enhancing the overall shopping experience.

2. Streamline Retail Management

Efficiency is key in retail, and Toast delivers with automated, mobile-first inventory management. Say goodbye to manual inventory tracking and hello to SmartScan, a feature that enables quick product scanning and shelf placement. Managing thousands of SKUs becomes effortless with Toast's intuitive product database and bulk update capabilities.

• Automated, Mobile-First Inventory: Experience the freedom of automated, mobile-first inventory management with Toast. Create and print barcodes in bulk, and take new products from scan to shelf in seconds with our SmartScan feature. Say goodbye to tedious manual inventory tasks and hello to streamlined operations.

• Efficient SKU Management: Easily manage thousands of SKUs with our intuitive product database and bulk updates feature. Modify, reprice, and import multiple products at once, saving valuable time and resources. With Toast, keeping track of your inventory has never been easier.

• Retail-Enhanced Dashboards: Stay on top of your business with retail-specific dashboards and cost-tracking reports. Monitor trends, maximize margins, and ensure your top-selling products are always stocked, empowering you to make data-driven decisions that drive profitability.

3. Tailor Your Customer Experience

Toast empowers you to tailor the customer experience to fit your unique retail concept. Whether you're considering adding food service or expanding your offerings, Toast's flexible platform accommodates creative expansion.

• Creative Expansion Opportunities: Thinking of adding food service to your retail concept? Including Kitchen Display Systems and Order Ready Boards, our flexible platform allows for creative expansion. Explore new revenue streams and enhance the overall customer experience with Toast's versatile features.

• Online Ordering and Delivery Integrations: Give your guests the option to order from home with Toast’s Online Ordering and our third-party delivery integrations. Meet your customers where they are and provide convenience that keeps them coming back, increasing customer loyalty and satisfaction.

• Loyalty Rewards and Personalized Offers: Be your neighborhood's favorite shop (and incentivize repeat visits) with loyalty rewards and personalized offers. Transform one-time shoppers into loyal patrons by engaging with your community and offering enticing rewards, making your store the go-to destination for your customers.

In conclusion, Toast's retail solution is more than just a point of sale system; it's a comprehensive toolkit designed to elevate your retail store to new heights. From modernizing sales processes to streamlining management and enhancing the customer experience, Toast empowers retail businesses to thrive in today's competitive market.

Related Resources

• Best Convenience Store POS Systems
• Convenience Store Business Plan
• How to Open a Convenience Store
• Convenience Store Equipment
• Convenience Store POS Software
• Convenience Store Marketing Ideas
• How to Design a Convenience Store
• Convenience Store Ideas and Concepts
• Convenience Store Inventory Management
• How Much Do Convenience Store Make
• How to Run a Convenience Store