Speedway LLC

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Speedway LLC
TypeSubsidiary
IndustryRetail (convenience stores)
Founded1959
HeadquartersEnon, Ohio
Number of locations1,463
Key peopleTony Kenney, President
RevenueNo
EmployeesUnknown
ParentMarathon Petroleum
Websitewww.speedway.com
 
  (Redirected from Speedway SuperAmerica)
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Speedway LLC
TypeSubsidiary
IndustryRetail (convenience stores)
Founded1959
HeadquartersEnon, Ohio
Number of locations1,463
Key peopleTony Kenney, President
RevenueNo
EmployeesUnknown
ParentMarathon Petroleum
Websitewww.speedway.com
Smaller Speedway store, converted from Total when Speedway purchased some of their former locations
Typical Speedway store in Bath Township, Michigan
Larger Speedway store, in Bath Township, Michigan

Speedway LLC is the operator of a chain of combination gas stations and convenience stores in the Midwestern states operating under the Speedway brand name. Speedway LLC is a wholly owned subsidiary of the Marathon Petroleum Company and is the largest chain in central Ohio.[1]

History[edit]

Speedway[edit]

Speedway 79 was a gasoline chain based in Michigan for much of the first half of the 20th century. In 1959, Marathon, then known as the Ohio Oil Company purchased the chain and promptly converted its outlets to the Marathon brand.

As self-service gasoline became legalized in many states, Marathon decided to use "Speedway" (without the "79") at higher-volume self-service stations with convenience stores. The concept turned out to be one of the few bright spots for Marathon during this time, and quickly expanded this concept across Marathon's main territories across the Midwest and Southeastern United States. Part of this expansion was through the acquisition of various other smaller regional gasoline station chains, including GasAmerica,Starvin' Marvin, Gastown, Wake Up, Bonded, United, Cheker, Port, Ecol, and Value. These stations were converted to the Speedway branding.

SuperAmerica[edit]

SuperAmerica convenience stores began in the 1960s in St. Paul, Minnesota, by Northwestern Refining of St. Paul Park, Minnesota. It was centered on the Upper Midwest and Florida.

Ashland Petroleum was a refiner based in Ashland, Kentucky. It marketed full-service stations under its own "Ashland" brand. As self-service was legalized, it used the brands "Solo", "Save Mart", "Save More", and "Rich", along with others.

Ashland purchased Northwestern Refining as well as the SuperAmerica chain in the 1970s. It converted most of its outlets in its core territory to "SuperAmerica", while withdrawing from Florida. It maintained a few outlets under its other brand names to keep the trademarks valid.

Combined History[edit]

In 1997, Marathon and Ashland formed Marathon Ashland Petroleum LLC (MAP), a joint venture which combining the companies’ refining, marketing and transportation businesses, with Marathon owning 62% of the operations while Ashland owned 38%. In the process, Ashland's SuperAmerica and Marathon's Speedway convenience store chains were merged to form Speedway SuperAmerica LLC, a wholly owned subsidiary of MAP.

When the merger was completed in 1998, the Speedway and SuperAmerica brands began to market together. In 2005, Marathon purchased Ashland's share of Marathon Ashland Petroleum, which became Marathon Petroleum Company LLC, retaining the SuperAmerica and Rich brands that were originally owned by Ashland. At this time the locations outside the Upper Midwest were converted to "Speedway" and the "SuperAmerica" brand was restricted to that market.

Marathon sold SuperAmerica to Northern Tier Energy, a newly formed company backed by the private equity firms ACON Investments and TPG Capital, in February 2011. It is based in Woodbury, Minnesota. Today Speedway and SuperAmerica are unrelated chains.

Today[edit]

Today, Speedway LLC is headquartered in Enon, Ohio. The chain is still prominent in the Midwest, but pulled out in the Southeast in 2003 when Marathon sold off Speedway's operations to Sunoco. It stated Helvetica italic typeface, has a slash between S part of the name and convey motion and speed, like Microsoft. Around the same time, Speedway's truck stop chain was merged into the Pilot Travel Centers brand after Marathon and Pilot Corporation entered into a partnership to form Pilot Travel Centers. Pilot has since bought out Marathon's interest in Pilot Travel Centers, now Pilot Flying J. The Speedway brand is used in Illinois, Indiana, Kentucky, Michigan, Ohio, Tennessee, West Virginia, Pennsylvania and Wisconsin.

Speedway's main rivals include BP, Circle K, Holiday Stationstores, Kwik Trip, and Casey's General Stores. Sheetz competes directly with Speedway stores in West Virginia and eastern Ohio.

Store Features[edit]

Stores sell fresh coffee during all hours of operation, hot specialty drinks (such as hot chocolate and cappuccino), a variety of fountain drinks, a deli case for cold subs and sandwiches, and a roller grill for hot food. Most stores also have a hot cart, where breakfast and lunch offerings are available during selected parts of the day. Select locations sell fresh Krispy Kreme doughnuts, whereas other locations instead sell packaged doughnuts and other pastries.

Speedy Rewards Card[edit]

In 2003, Speedway launched its Speedy Rewards Card program. The Speedy Rewards Card is a free card for customers to use when making purchases at Speedway and SuperAmerica stores in order to earn Speedy Rewards Points. These points may be redeemed for coupons for fuel discounts, free food, drinks gift cards, a free Speedy Wash "The Works" Car Wash or even discounts on fuel from 3 cents a gallon to 50¢ a gallon. [2]

A Speedy Rewards Card can be registered (name, address, and PIN are the required registration information) at a Speedy Rewards Terminal in any Speedway location, or online. It is optional and recommended that include you phone number and birthday.[3]

In addition to the points program, the Speedy Rewards Card features "Clubs" that do not require registration. For many items included in these clubs, a rewards card member buys six and gets their seventh free (the only exception being car washes, for which a rewards card holder receives their sixth wash free after buying five). These clubs dispense coupons for free beverages, chips, energy shots, and other items. However, redemption of any points for free items does require registration of the card.

The Speedy Rewards program is sometimes used to make targeted offers in the form of coupons that are dispensed with the Speedy Rewards point balance at checkout. These offers are targeted to customers based on their location or shopping habits.

Made Fresh Now[edit]

Select stores now have what is called a "Made Fresh Now" section within the store. Made Fresh Now was developed in mid-2012. With these new sections in the store, customers can now walk to a counter where they will come up to a touchscreen terminal. Each touchscreen terminal will have a number of food categories from which the customer can choose from, that ranges from paninis, specialty pizzas, and 12" subs, which the customer can custom make to what they like. The store has a goal of 4-5 minutes to give the customer their food. The process is up and coming and soon will be in most Speedways across the Midwest.

2012-13 Expansion[edit]

Acquisition of GasAmerica[edit]

On February 13, 2012, it was announced that a deal had been reached with Indiana and Ohio convenience store chain GasAmerica to acquire all 88 of its locations.[4] As part of the purchase agreement, Speedway will also acquire all trademarks, trade dress and intellectual property from GasAmerica.[5] The deal also includes several parcels of undeveloped real estate for future development. The transaction was finalized on May 29, 2012, for an unspecified price.[6]

Purchase of Road Ranger stores[edit]

On June 5, 2012, it was reported that Speedway, LLC signed a deal with the convenience store chain Road Ranger. The deal gave Speedway nine Road Ranger stores in Kentucky, and one in Ohio, in exchange for cash and a truck stop in the Chicago metropolitan area.[7] Rockford, IL-based Road Ranger operates approximately 80 truck stop and gasoline convenience store locations in seven Midwestern states. Like Speedway before it, Road Ranger has a partnership with Pilot Flying J.

Entry into Pennsylvania and Tennessee[edit]

In 2012, Speedway announced a planned expansion into Pennsylvania and Tennessee. While expansion into Tennessee has focused on the Grand Division of Middle Tennessee,[8] it also confirmed an expansion into Western Pennsylvania, including Pittsburgh.[9] In both cases, Speedway has had a presence before: the Tennessee stations were included in the 2003 sale to Sunoco when Speedway exited the Southeastern United States, while Speedway had a brief presence in Pittsburgh in the early 2000s when the SuperAmerica stations in the area were converted over to Speedway; those stations have either since switched over to standard Marathon stations or have been sold off to competitors such as GetGo. The return of Speedway in Western Pennsylvania also coincided with Marathon taking over the retail contracts of several Exxon-branded stations in the central Appalachia and greatly expanding its presence in the Pittsburgh metropolitan area, where Marathon's former parent company U.S. Steel is based.[10] ExxonMobil would subsequently offset its Pittsburgh losses by taking over several Shell-branded stations in the area and convert them to the Exxon brand. As of May 2013, Speedway has opened locations in Tennessee, but has yet to open stores in Pennsylvania.

As of late June 2013, Speedway has opened four Pittsburgh-area locations. At least one is a former Sunoco station in Monroeville, Pa.

References[edit]

  1. ^ Family-owned company gobbles up BP stores
  2. ^ "Speedy Rewards: Redeem Points". Speedway, LLC. Retrieved 27 August 2013. 
  3. ^ "FAQ: Speedy Rewards Inquiries". Speedway. LLC. Retrieved 27 August 2013. 
  4. ^ Hirsch, Stuart (2012-02-13). "Speedway will acquire 88 GasAmerica stores » Local News". The Herald Bulletin. Retrieved 2013-04-20. 
  5. ^ InsideINdianaBusiness.com Report. "Speedway to Acquire GasAmerica - Newsroom - Inside INdiana Business with Gerry Dick". Insideindianabusiness.com. Retrieved 2013-04-20. 
  6. ^ "Speedway completes purchase of 87 GasAmerica stations". Thecourier.com. Retrieved 2013-04-20. 
  7. ^ "Speedway buys Road Ranger convenience stores - Dayton Business Journal". Bizjournals.com. 2012-06-05. Retrieved 2013-04-20. 
  8. ^ http://www.speedway.com/Pages/GasPriceSearch.aspx?lat=36.1958946&lng=-85.44858490000001&st=Algood%2c+TN
  9. ^ "Speedway considers 7 locations in W.Pa.". TribLIVE. Retrieved 2013-04-20. 
  10. ^ "Gas station operator converting 18 to Marathon brand". TribLIVE. Retrieved 2013-04-20. 

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