Convenience Store - Gas Station

The following is intended to provide an understanding of potential licence, permit or registration requirements when considering the establishment of a Convenience Store / Gas Station in New Brunswick. This document is a guide prepared by the Canada / New Brunswick Business Service Centre and affiliated departments and agencies to provide you with a list of possible steps and issues to consider in carrying out your project. The extent to which the information will apply to you is dependent on the circumstances related to your project.

Before proceeding, reference should be made to the Business Start-up in New Brunswick Guide for information on the steps involved in establishing a new business in New Brunswick. You may also want to consult our complete List of New Brunswick Guides.

Note: You will notice that throughout this publication, there are some references made to other relevant documents ("see the document...") If you are using the Web, simply click on the links provided. If you are reading this publication from a print copy and would like to obtain those additional documents, please call the Canada / New Brunswick Business Service Centre at 1-800-668-1010 and we will provide you with copies.

For further information on individual topics identified herein, contact the respective governing body or the Canada / New Brunswick Business Service Centre. Because this document is only meant as a guide, the Canada / New Brunswick Business Service Centre will not accept responsibility for business decisions made based on the information provided.

TABLE OF CONTENTS

1. General
1.1  Choosing Your Location
1.2  Layout and Design
1.3  Selecting Your Inventory
1.4  Selecting Suppliers
1.5  Crime Prevention Kit
1.6  Atlantic Lottery Corporation Ticket Retailer

2. Regulations
2.1    Food Service Establishment Licence
2.2    Tobacco Retailer's Licence         
2.3    Video Exchange Licence
2.4    Gasoline and Motive Fuel Retailer's Licence
2.5    Propane Plant Operator Licence
2.6    Petroleum Storage Site Licence
2.7    Music Licence
2.8    Boiler and Pressure Vessel - Certificate of Inspection
2.9    Ozone Depleting Substances Permit
2.10  Weights and Measures of Products
2.11  Packaging and Labelling
2.12  Hunting and Angling Licences Vendor
2.13  Petroleum Products
2.14  Protection of Personal Information: Your Responsibilities

3. Other Sources of Information
3.1  Associations
3.2  Magazines 
3.3  Related Web Sites
3.4  Statistics - Statistics Canada

4. The Canada / New Brunswick Business Centre

1.1  Choosing Your Location
Choosing a location for your store may be your single most important decision. Do your research. In particular, consider these factors:

• Population - The Grocery Trade Association states that to sustain a convenience store, between 500 and 1 000 people must live within a one-mile radius. If people have to travel more than a mile, they are more likely to go to a supermarket for a major shopping trip. Also check an area's future development plans and projected growth rates.
• Competition - Although a convenience store's competition is mostly from other convenience store, it can also come from supermarkets. Study all competitors to see if the local market can support another operation.
• Traffic - Impulse purchases make up a good percentage of convenience store sales, so high volumes of pedestrian and vehicle traffic passing your store is critical. Try to locate near schools, parks, sporting facilities and other businesses to increase traffic.

For additional information, see the document  Store Location - "Little Things" Mean a Lot.

1.2  Layout and Design

• before ordering or installing equipment, design your store's layout;
• keep it simple to keep costs down;
• reserve the most space for products you will sell the most;
• place all products where customers can see and reach them;
• position products with the highest profit margins at eye-level;
• place high-demand products such as bread and milk at the back of the store to increase traffic. This encourages impulse purchases which can make up to 70% of your sales.

1.3  Selecting Your Inventory
Your product mix depends on your location and your target market's needs.

For example, a convenience store in a resort area will likely stock a more complete line of goods. Wherever your location, you must be able to estimate product demand. The Convenience Store Journal suggests a typical breakdown:

Keep ongoing, accurate inventory records in order to continually monitor the ratio between your stock and actual sales. This helps to minimize lost sales and money tied up in inventory, as well as determine the demand for different products.

1.4  Selecting Suppliers

• General line wholesalers - Join a cooperative of independent store owners to purchase in groups to gain volume discounts. Approximately 25% of Canadian grocery stores belong to such cooperatives which give advice in merchandising, management and finance.
• Speciality wholesalers - Bakeries, delis and produce suppliers often offer lower prices than general line wholesalers. They may also stock shelves and help you estimate demand.
• Service merchandisers - Non-food items, such as health/beauty aids, housewares and magazines are sold by service merchandisers. They can also deliver, stock shelves, price items and help estimate demand.

For additional information, see the documents  Selecting Your Supplier and Profit by Your Wholesaler's Services.

1.5  Crime Prevention Kit
The Crime Prevention Kit targets safety practices and strategies that can be utilized by store owners to enhance security measures. It includes an information booklet on store lay-out and management practices, tips to avoid fraud, and what to do in case of theft or hold-ups. It also contains advice on handling bad credit cards or checks. To obtain a kit, please contact your local police station.

1.6  Atlantic Lottery Corporation Ticket Retailer
If you would like to become an Atlantic Lottery Corporation ticket retailer, call the Corporation toll-free at 1-800-561-3942 and ask for the New Brunswick Sales Department. An Atlantic Lottery Corporation representative from your area will be in touch with you and will explain the steps to follow. You can also visit the Web site: http://www.alc.ca/English/

2.  Regulations

2.1  Food Service Establishment Licence
If you will be preparing and serving foods, even for such foods as subs, hot dogs or ice cream, etc., you will need to present a floor plan of the kitchen area, i.e. sink, etc. to the provincial Department of Health. The fee for this licence is $85.00 / year from 0 to 25 seats. Look underPublic Health Services in the Provincial section of the blue pages of your telephone directory for your nearest office.

2.2  Tobacco Retailer's Licence
If you will be selling tobacco products, contact the provincial Department of Finance, Revenue and Taxation Division, at 506-453-2404. The fee is $15.00 for each location.

2.3  Video Exchange Licence
A video exchange licence authorizes retailers or businesses to rent or sell videos or DVD's to the public. Contact the provincial Department of Public Safety, at 506-453-7472 .

Fees (Between June 1 and November 30)
The fee for less than 300 videofilm titles in inventory is $50.00. 
For 300 videofilm titles or more in inventory, the fee is $200.00.
Fees (Between December 1 and May 31)
The fee for less than 300 videofilm titles in inventory is $25.00.
For 300 videofilm titles or more in inventory, the fee is $100.00.

2.4  Gasoline and Motive Fuel Retailer's Licence
The sale of gasoline, diesel products, etc. requires contacting the provincial Department of Finance, Revenue and Taxation Division, at 506-453-2404. The fee for a Gasoline and Motive Fuel Retailer's Licence is $20.00 per dispensing nozzle.

2.5  Propane Plant Operator Licence
The sale of propane gas requires contacting the provincial Department of Public Safety, Technical Inspection Services. There must be an employee to exchange and fill propane tanks on site. This licence to exchange and fill propane tanks is $40.00 / year per class. For more information, call the Safety Code Services Division of the Department of Public Safety at 506-453-2336.  

2.6  Petroleum Storage Site Licence
Storing petroleum products (gas, diesel, etc.) requires contacting the provincial Department of Environment at 506-444-3635 concerning new gas tanks or existing gas tanks or for the licence fees.

2.7  Music Licence
Performances of music in public, i.e. restaurants, clubs, hotels, dance halls, offices, stores, etc., require a licence. This licence is necessary whether the music is performed by live or recorded means.  

For more information, contact the SOCAN office in Dartmouth, Nova Scotia at 1-800-707-6226 or you may also visit the Web site at the following address: http://www.socan.ca/jsp/en/index.jsp.

2.8  Boiler and Pressure Vessel - Certificate of Inspection
You must obtain a Certificate of Inspection if you will be heating the building with a boiler or if you will be dispensing compressed air. There is an initial $100.00 per hour inspection fee. Contact the provincial Department of Public Safety, Technical Inspection Services at 506-453-2336 for more information.

2.9  Ozone Depleting Substances Permit 
Purchasing and storing of ozone depleting substances or other ozone layer depleting chemicals requires contact with the provincial Department of Environment at 506-444-4599. The fee for the licence is $25.00 / year.

2.10  Weights and Measures of Products
You will need to contact the Measurement Canada Branch of the federal Department of Industry Canada, 506-636-4591 for information on the accuracy of gas metres and fuel dispensers. This is necessary before commencing to use this equipment.

For further information, see the documents Weights and Measures and Measurement Canada or visit this Web site : http://strategis.ic.gc.ca/sc_mrksv/meascan/engdoc/homepage.html

2.11  Packaging and Labelling
If you will be buying bulk candy or other for resale, you should contact the Canadian Food Inspection Agency (CFIA) at 506-452-4964 for packaging and labelling requirements.

For additional information, see the documents  Food Labelling and  Labelling Fact Sheet or you may also visit the Web site at the following address: http://www.inspection.gc.ca/english/toce.shtml.

2.12  Hunting and Angling Licences Vendor
If you would like to issue hunting and angling licences, you must fill out an application form available from your local Department of Natural Resources. For more information, call the Fish and Wildlife Branch at 506-453-2440 or your Department of Natural Resources local office.  

2.13  Petroleum Products
Plans and specifications for proposed bulk fuel storage installations of more than 3 000 litres of flammable liquids and / or more than 10 000 litres of combustible liquids must be submitted to the Office of the NB Fire Marshal 506-453-2004 for review PRIOR to installation. There is no fee for this service. For more information you may also visit the Web site at the following address: http://www.gnb.ca/0276/fire/index-e.asp

2.14  Protection of Personal Information: Your Responsibilities
The Guide to Canada's Personal Information Protection and Electronic Documents Act  (PIPEDA) helps businesses understand their obligations and comply to the Act.  Since January 1, 2004, the PIPED Act covers the collection, use or disclosure of personal information in the course of all commercial activities in Canada, except in provinces which have enacted legislation that is deemed to be substantially similar to the federal law.

For more information, see the document Protection of Personal Information - Your Responsibilities, call toll-free 1-800-282-1376 or visit the Web site: www.privcom.gc.ca/information/guide_e.asp

3.  Other Sources of Information

3.1  Associations
There are many associations that may be of use to convenience store owners. Although it is not necessary to join a convenience store association, there can be advantages in becoming a member because they

• promote and exchange marketing and promotional ideas among members;
• establish and encourage high standards of quality and professionalism;
• represent and advocate on behalf of members.

Examples of associations include, but are not limited to:

• New Brunswick Association of Convenience Store Owners 506-672-5004
• Canadian Health Food Association www.chfa.ca  or 1-800-661-4510
• Refreshments Canada http://www.refreshments.ca/en/home/default.asp or 416-362-3229
• NACS OnLine (previously C-Store Central) www.nacsonline.com or 1-800-966-6227
• National Convenience Store Distributors Association (NACDA) http://www.nacda.ca/index2.html?InitLanguage=EN&Section=1.0 or 1-888-686-2823

3.2  Magazines

• Canadian Grocer www.bizlink.com/cangrocer.htm or 1-800-268-9119
• Canadian Retailer (Retail Council of Canada) http://www.retailcouncil.org/cdnretailer/ or 1-888-373-8245
• Convenience Store Decisions Magazine (CSD) www.c-storedecisions.com/# or 215-245-4555
• Convenience Store News www.csnews.com or  646-654-7657

3.3  Related Web Sites

• Canadian Council of Grocery Distributors http://www.ccgd.ca/en/1_0.html or 902-422-7279
• Canadian Federation of Independent Grocers www.cfig.ca or 1-800-661-2344
• Canadian Partnership for Consumer Food Safety Education www.canfightbac.org  or 519-651-2466
• Retail Council of Canada (RCC) www.retailcouncil.org or 1-888-373-8245
• Food Recalls (CFIA) www.inspection.gc.ca/english/corpaffr/recarapp/recaltoce.shtml or 506-452-4964

3.4  Statistics - Statistics Canada

• Retail (www.statcan.ca/english/ads/63-005-XIB/index.htm) and Wholesale Sales (http://www.statcan.ca/Daily/English/041119/d041119a.htm)
• Quarterly Retail Commodity Survey (www.statcan.ca/Daily/English/990511/d990511a.htm)
• Average weekly earnings (including overtime) in the trade, transportation, storage, communications and other utilities industries (http://www40.statcan.ca/z01/cs0001_e.htm)

4.  The Canada / New Brunswick Business Service Centre

The Canada / New Brunswick Business Service Centre is an innovative partnership of federal and provincial government departments. Both levels of government work with key private-sector organizations to create a seamless information network for entrepreneurs.

Our mission is to improve the start-up, survival and growth rates of small and medium sized enterprises by giving business people in every part of New Brunswick access to accurate, timely and relevant information and referrals.

What can we do for you? We can guide you in the right direction! We can give you the information you need! We are your best source of comprehensive business information!

The Canada / New Brunswick Business Service Centre is accessible province-wide and free of charge. You may reach us through our toll-free number or visit us with your questions. Our office is open from 8:30 a.m. to 5:00 p.m., Monday to Friday. We also provide a 24-hour business information service, seven days a week, through our Web site.

Here's how to reach us :  

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

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