Will Another Gas Station Increase Price Competition?

Today I'm looking at whether the new Wawa, still under construction, will affect the price of gasoline in the local market. My guess: not by much. 

Fuel pumps have yet to be installed at the Kendall Park Wawa site.

I've looked at several existing Wawa stores that already sell fuel to see if there's a trend. And it's hard to find one. In the Old Bridge area, Wawa is among the cheaper gas stations, but in Jamesburg and Bridgewater it's at the high end of the gasoline price spectrum.

The two Wawa locations in Old Bridge sell regular gas for $2.37/gallon, according to GasBuddy website at 3:08 p.m. That compares with $2.36/gallon, the average price of the 10 cheapest gas stations in Old Bridge. The lowest price on the list is $2.33/gallon, the price at Lukoil, 19 Petroleum and Sunoco. It's important to note, though, that Wawa stations charge the same price whether the customer is paying with cash or by credit card. Many of the cheapest gas stations charge extra, usually about 10 cents a gallon, if you pay using a credit card.

Jamesburg, Bridgewater Markets

In both Jamesburg and Bridgewater, Wawa's price was $2.45/gallon. That's still not bad, considering the average price for the state of New Jersey is $2.48/gallon, according to GasBuddy.

In the Jamesburg/Helmetta area, Wawa was the most expensive of six gas stations, at $2.45/gallon, according to GasBuddy. The average price for that group is $2.41/gallon. Wawa also sells gas at $2.45/gallon at its Bridgewater location, making it the highest price among six gas stations in the Bridgewater/Bound Brook area. The average in that group is $2.43.

Back to Route 27

On Route 27 in the Kendall Park/Franklin Park area (and slightly north into North Brunswick and Somerset), the average price for regular grade gasoline is $2.36/gallon, with the most expensive being $2.39 a gallon, the price at Exxon, the BP at Finnegans Lane, and the Valero on Route 27 south. The cheapest is $2.29/gallon at Raceway and the Valero on Route 27 north in North Brunswick.

Sunoco's gas price is just above the average of $2.36/gallon on Rt. 27.

The opening of the store represents a trend seen across the country. About 80% of gasoline is sold in the U.S. is through convenience store chains, according to the website for NACS, the association for convenience and fuel retailing. Major petroleum companies, meanwhile, have been getting out of retailing to focus on pumping crude oil and natural gas out of the ground. While many gas stations still have brand-name petroleum company signs, chances are they are independently owned.

Wawa, so far, hasn't responded to my requests for comments on the opening of the store.

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.

Friday Photos: Seasons' Greetings

It's October, and retailers' thoughts turn to...ghosts and ghouls and trick or treat, right? Well, maybe a little bit, but Christmas is right around the corner and holiday merchandise is poised to move in.

Click for slideshow

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.

NYC Commuters Get Another Option

One thing that Route 27 offers that many New Jersey suburbs don't is mass transit. For years, Suburban Transit, owned by U.K.-based Stagecoach Group, was the only option for commuters heading to New York. Now it has some competition. In May 2016, Ourbus started service from Kendall Park/Franklin Park to the city. 

Route 27: At least it has access to mass transit.

Twice a Day

The disadvantage to Ourbus? It only has two departure times in the morning, the same for the return trip in the evening. Suburban Transit runs twice an hour for most of the day and even more often during rush hours. The Ourbus route, though, is an express. There are no local stops in North Brunswick and New Brunswick.

The Ourbus route begins at Kendall Park Roller Skating Rink at 6:30 and 7:00 each morning then goes to Green Hill Manor apartment complex, Stillwell Road, and Kendall Park Post Office before heading to New York. Once in the city, it makes stops at Times Square, Bryant Park, and Grand Central. In the evening, service departs from Grand Central at 5:10 and 5:55.

Ourbus is now offering service to and from the city...

...which means competition for Suburban Transit.

Another advantage is the cost. The fare is $9.25 each way, making it $18.50 for a round trip. That compares with Suburban Transit's round trip fare of $25.44. Suburban Transit's monthly pass at $410 equates to about $9.32 per trip for the month of October if you used it for five round-trips per week (at 22 working days in the month).

Note: Thanks to my husband for noticing the Ourbus driving up Route 27 today.

Online Tickets

With Ourbus, you buy your tickets online, and of course, they have an app for your smartphone. So you skip waiting in line at a bus station to buy tickets. Ourbus also had had service from Montgomery and Rocky Hill service, but that was discontinued as of Oct. 2.

Franklin Towne Sharing Center?

Following up on my post from Oct. 10, perhaps the space that was occupied by Stein Mart, can now be used as a shared-office space, a la WeWork buying the flagship Lord & Taylor store in New York from Hudson's Bay Co.Click for press release. That would be one way to repurpose traditional retail space into a millennial sharing economy enterprise.

Riya Plaza Update

Les Delices Bakery at Riya Plaza is progressing toward opening. It now has help wanted signs up for bakers and sales staff.

New Nail and Spa Time, also in Riya Plaza, looks close to opening.

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.

While I Was Away...

Shooting at BP

I've been away for a week, and not long after I left I read that there was a shooting at the BP at the corner of Alston Road. A gas station attendant was shot several times and remains hospitalized in guarded condition. Yesterday, the South Brunswick Police Department released a statement saying they're looking for an older model light brown/tan SUV. There were at least two suspects in the vehicle. The shooter is described as a black male who had his face partially covered. The most recent information was gained by interviewing witnesses and reviewing surveillance video, the South Brunswick Police Department said.

The shooting occurred as the result of a botched robbery on Sunday, Oct. 15 at 4:15 a.m. Anyone who has further information may call police at 732-329-4646. Crime Stoppers of Middlesex County is offering a reward in this case. They can be reached at  1-800-939-9600.

This is the second  robbery/attempt in the past 45 days. On Sept. 3, TD Bank on Route 27 in Franklin Park was robbed, says the Franklin Township Police Dept.

Stein Mart Has Closed

As reported earlier, Stein Mart has closed. Workmen were taking down Stein Mart signs from the building today.

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.

Tech Entrepreneur Turned Restauranteur

In mid-August, Ferdouse Khaleque jumped into the restaurant business by buying Maharaja Express II without any previous experience in the industry. The reason? "I was smitten with the food," he says.

Maharaja Express II is renamed Mogul Naan

While the decision may sound impulsive, Khaleque says his experience in the tech sector and as an entrepreneur gives him an edge. He came to the U.S. 20 years ago, after earning his Phd in electrical engineering in the U.K., attracted by the entrepreneurial environment here.

Good Reviews, Location

Maharaja's numbers looked promising as well, Khaleque says. "The books were good and showed a break-even point." A little more time and effort should push the business into profit. And the restaurant had good Yelp reviews. The location was attractive, too, serving a large South Indian population. But Khaleque doesn't want to depend on any one ethnic demographic. "We aim to cater to all palates," he says.

"I was smitten with the food," says Ferdouse Khaleque, now the restaurant's owner

The restaurant is now called Mogul Naan. Still, the management transition was a challenge, he says. "We're building the business back up." One way he intends to do that is through technology, chiefly online marketing and ordering.

Here's where his tech experience comes into play. Khaleque has worked at Nike, Harley-Davidson and the FDIC, among other places. And he's been a blogger, writing blogs on a dating website.

About 10 years ago he worked on a GrubHub-like website called MenuStation, which fell victim to the financial crisis. Failure, though, isn't necessarily a bad thing. He's more impressed by people who try again and again after failing than by people who never tried to begin with.

Food First

His plan to build Mogul Naan focuses on the food first, followed by good service and consistency. Technology serves to back that up and will help distinguish the restaurant from the many other Indian restaurants in the area. 

Food, service, consistency are key

Mogul Naan's website offers a 10% discount for customers online. Since Khaleque can construct the website and ordering system himself, he doesn't pay the 20% commission that third-party technology providers usually charge. Orders come straight to his laptop at the restaurant.

And of course, marketing on social media such as Facebook and Instagram, is part of the mix.

Start From Scratch

"The exciting phase is starting from scratch and watching it blossom," Khaleque says. He feels he has the drive and entrepreneurial spirit to make it work, and his business background gives him the ability to see the enterprise from a "birds-eye view," but then tackle things on a very detailed basis. "You work from the ground up, but then need to step back to see the overall view," he says.

He likes to lead by example in motivating his team to advance the business. "I feel I should empower people and keep them engaged. It's not just a job."

His experiences have helped him to become open to more options when dealing with challenges. "I feel I've become more flexible," Khaleque says. "I have to keep my mind more open."

Welcome to the restaurant business, Ferdouse. You may need every tool in your toolbox.

Publishing Note: 

"This Stretch of 27" will be on vacation for the rest of the week. Please check back on Monday, Oct. 23 for the next post. Thank you!

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.

Diwali Is Coming; Gas Prices Fall

Diwali is coming and Bikanervali is stringing up lights for the Hindu festival of lights and displaying gift baskets for the prime Indian gift-giving holiday. Sweets are typically given as gifts for the Hindu New Year, to be celebrated Thursday, Oct. 19.

"It's the celebration of good versus ill," says Bikanervala manager Bijen Patel. "Everybody celebrates it in India." See Sept. 13's post for more on Bikanervala.

This week, people will be placing bulk orders for sweets so they can pick them up next week, he says.

People prepare for the holiday by cleaning and painting houses. And, in India, celebrations often include setting off firecrackers. "It's a multibillion-dollar festival," Patel says.

Gas Price Update

Gasoline prices are now lower than they were before Hurricane Harvey hit Houston, a major oil refinery region, in late August.  As a result of the storm, and refinery outages, gasoline prices rose by 40 cents a gallon at the cheapest gas stations. During this entire time, the price of gas at the Exxon station stayed the same -- $2.799/gallon. 

Now, the price at Valero and Raceway stations is $2.299/gallon. BP and Sunoco are in between.

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.

Projects Along the Pike

It's a quiet, cloudy Wednesday this week. Construction progresses at the Wawa. The exterior of the building looks almost finished, at least finished enough to install signage. Wawa's website says the site is scheduled to open this Fall. That leaves a little more than two months left before winter starts. If the project runs late, they may have to skip the pumpkin-spice flavored coffee drinks.

Looking at the larger picture, the U.S. Census Bureau puts private nonresidential construction spending on a seasonally adjusted basis at  $433.9b in August, the latest month for which data are available. That's up 1.2% from the revised estimate of $432.0b in July and down 2.5% from $445.0b in August 2016.

Road Work Continues

Paving continues on Bunkerhill Road, meaning rough road for awhile. The actual construction takes place overnight, so traffic on Route 27 shouldn't be affected much during the day.

Aerial Work at Stop & Shop

And there's some work being done way above ground level at Stop & Shop on a very tall cylindrical structure, which I'm guessing is an antenna. Anybody know what that is? The employees at the customer service desk didn't know.

If you're looking for a seasonal diversion, signs just went up for the annual haunted hayride in Griggstown.

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.