Travel centers have evolved significantly from their humble beginnings as mere fueling stations with basic amenities. Today, they stand as sparkling hospitality hubs, offering an array of services that cater to a wide audience, including truck drivers, families on road trips, and even local residents seeking convenience and leisure.
The modern travel center is a far cry from the traditional image of a truck stop. It’s a place where visitors can enjoy a variety of dining options, ranging from QSR to full-service restaurants with diverse menus. Hotels and entertainment brands, including mini theaters, provide rest for travelers looking to unwind. Personal and wellness services have also found a home here with offerings, such as haircuts and massages, aimed at refreshing weary travelers.
As the automotive industry shifts towards sustainability, travel centers have kept pace by incorporating electric vehicle (EV) charging stations, catering to the growing number of EV owners on the roads. Retail and convenience stores within these centers offer more than travel essentials; they provide a shopping experience where visitors can pick up souvenirs and a wide range of products.
Big business
According to a trend report released by the National Association of Truck Stop Operators, trucks will continue to dominate the overall freight transportation landscape, accounting for 73% of total primary tonnage by 2034. Additionally, the recreational vehicle industry has been experiencing nearly 45 years of long-term growth but saw a spike in traffic due to the pandemic. As of 2021, the last year for which the RV Industry Association has numbers, there were 11.2 million RV-owning households in the United States.
These changes make travel centers and truck stops excellent nontraditional development opportunities for all sorts of franchise brands.
Understanding the customer base is crucial for any franchise looking to establish itself within a travel center. Truck drivers provide a steady stream of business with their predictable visits offering a reliable source of revenue. Local communities contribute to the customer mix with residents visiting for various services. Finally, “four-wheelers” (casual travelers) stop by with their unique needs and preferences. A store has both an opportunity to develop loyal, repeat customers and a chance to introduce your brand to new visitors. Franchisors can share the customer draw with complementary and anchor brands.
Franchise brands can find several advantages in developing within travel centers. Shared services, such as utilities, security, and storage, lead to operational efficiencies. The potential for favorable real estate lease terms due to the scale of these centers can be financially advantageous. Moreover, the high foot traffic aids in staff recruitment, making it easier to attract and retain employees. Additional opportunities for shared services include global Wi-Fi, technology areas, ATMs, restroom facilities, seating areas, and green spaces where travelers can “touch grass.” Marketing can share billboards and signage as well as organize site promotions and events.
Travel center owners have proven to be successful franchisees. According to the Mega 99 Franchisee list published in issue 1, 2024, of Multi-Unit Franchisee magazine, two of the top 10 largest franchisees in the country—Love’s Travel Stops and Country Stores and Pilot Company—are travel center owners. Between them, they own and operate nearly 1,400 franchised businesses in about 60 different brands located all around the country. The brands they operate are in QSR, FC, Frozen Desserts, Baked Goods, and Lodging industries.
Broad customer base
The transformation of travel centers into multifaceted hospitality hubs presents a lucrative opportunity for franchise brands. These centers offer a dynamic environment that goes beyond traditional expectations, providing a variety of services that appeal to a broad customer base. What sets travel centers apart is their ability to communicate and adapt, providing tailored solutions and streamlined onboarding processes to align with franchisors’ needs.
Prior to establishing partnerships, franchisors should seek detailed insights into the travel center’s profile, including its location, customer demographics, and unique selling points, ensuring compatibility and maximizing synergy. By meeting these stringent criteria, travel centers position themselves as strategic partners, fostering mutually beneficial collaborations and driving substantial industry evolution.
*This article originally appeared in Franchise Update Magazine, Issue 2 of 2024. You can view it here.