Rest Area Commercialization Will Harm C-Store Industry

Businesses located off Interstate highways, such as convenience stores, cannot compete with commercialized rest areas.

June 20, 2011

WASHINGTON - In an attempt to raise revenues, many state governments support the idea of commercializing rest areas, contracting fueling and other services to private vendors. While advocates for commercialization claim that such services will benefit the public, the reality is that rest area commercialization would close as many as half of the interchange-based businesses and cost thousands of jobs.

Rest area commercialization along our nation??s Interstates will come to head this summer as Congress debates reauthorization of our nation??s surface transportation programs. NACS opposes the point of view that rest area commercialization is a viable solution to state budget deficits. NACS is also a member of the Partnership to Save Highway Communities.

Businesses located off the highway ?" such as convenience stores ?" cannot compete with commercialized rest areas. These rest areas are opportunely located on the highway right-of-way and would result in an unfair competitive environment for privately operated businesses and will ultimately destroy a successful economic business model that has proven beneficial for both consumers and businesses.

According to a recent Virginia Tech Office of Economy Development study, allowing for the commercialization of rest areas nationwide would place convenience stores, truck stops, restaurants and other commercial services at a competitive disadvantage. The study also notes that if the existing non-commercial rest areas in 611 counties were commercialized, it would result in losses of more than $55 billion in annual sales for commercial interchange businesses nationwide. Researchers also predict a 46% decrease in Interstate-serving convenience store sales in each county, as well as an estimated $38.2 million in lost annual sales and resulting tax revenue from Interstate-serving convenience stores.

Enabling the commercialization of rest areas will serve to destroy economic value to cities and towns dependent on interstate-based businesses. Ultimately, allowing the commercialization of rest areas will result in fewer restaurants, convenience stores, hotels and truck stops along our nation??s Interstates.

In the coming weeks, NACS will be asking you to contact your members of Congress, asking them not to support rest area commercialization legislation. We anticipate that Congress will take on this issue during highway reauthorization legislation. Be on the lookout for our call to action. If you have questions about this issue, contact Corey Fitze at cfitze@nacsonline.com.

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