The Gas Station Wars

Community protests the proposed opening of a Sheetz store in Farmington Hills. Photo courtesy of cacc

Sheetz seeks to move into the metro Detroit gas station market

By Sarah Kittle

In a move poised to reshape metro Detroit’s gas station landscape, Sheetz, a major player in the gas station and convenience store sector, has announced plans to expand into southeast Michigan, raising concerns among local business owners and community members about potential impacts on prices, service quality, safety, and economic diversity.

“Our offerings are unique and set us apart from other gas stations in the market,” a Sheetz representative stated in a recent Crain’s Detroit Business article. However, many of the features Sheetz touts—family ownership, exceptional customer service, and high-quality food options—are already present among metro Detroit gas stations, many of which partner with local businesses to offer fresh food.

Safety is a significant concern. As 24-hour operations, gas stations can attract late-night mischief. In High Point, South Carolina, Sheetz closed a location due to safety issues, officially citing “underperformance” alongside safety concerns for customers and employees.

In a January letter to the Committee on Small Business, Gary Zimmerman, Sheetz’s general counsel, acknowledged the unique challenges posed by round-the-clock operations, noting that there are times when their stores are the only businesses open in a community. He highlighted a troubling trend of increasing shoplifting, armed robberies, and violent crime at their locations.

A recent Reddit thread has seen users express growing unease about shopping at Sheetz, particularly at night, with complaints about employee treatment surfacing as well.

The first Sheetz location in Michigan is in Romulus, situated far enough from Detroit’s suburbs that it did not spur organized protests. In contrast, opposition is mounting in Farmington Hills, where Sheetz seeks approval to build a store at the former Ginopolis restaurant site at 12 Mile and Middlebelt. Protesters came out to rally ahead of a City Planning Commission meeting on September 19.

CBS Detroit covered the protest, where demonstrators carried signs reading “Sheetz = More Pollution, Less Solution!” and “Don’t Sheetz on Our Community.” Ironically, the reporter filmed in front of an existing gas station across the street.

According to an Associated Press article, community members argue that adding a 24-hour gas station near residential areas could attract undesirable elements and escalate crime. Nationwide, Sheetz has faced scrutiny for violent incidents at its locations, including shootings and robberies, typically occurring after 10 p.m.

The Farmington Hills Planning Commission has postponed its decision on Sheetz’s proposal to gather more information, with plans to reconvene in November.

Residents are largely opposed to Sheetz’s late-night business model, citing concerns about increased traffic and safety. Sharkey Haddad of the Chaldean American Chamber of Commerce expressed worries that Sheetz’s expansion could threaten independent gas station operators, which would harm both local residents and the environment.

“If gas stations go under, the land becomes a vacant brownfield,” Haddad stated, noting that it could take years to rehabilitate such properties for alternative uses.

The perception of Sheetz entering the market is that it fosters competition and drives down prices, according to local gas station owner Mike Awada in a previous interview. However, he argues that independent operators often need to sell gas at higher prices, while Sheetz relies on in-house food sales.

Additionally, Sheetz has faced legal issues, including citations from the U.S. Environmental Protection Agency for underground fuel storage violations, resulting in over $1 million in fines, as well as a lawsuit from the U.S. Equal Employment Opportunity Commission for discriminatory hiring practices.

These factors challenge Sheetz’s image as a “family business” that cares about its customers, a narrative they have tried to promote through local media.

“The fabric of our community is at stake,” said one Farmington Hills resident. “We already have 11 gas stations within a mile, all operating during regular hours. We don’t need another that stays open all night.”

This conflict may just be beginning. An April 2024 Detroit Free Press article noted a billboard on I-96 in western Michigan that declared “444 Miles,” indicating the distance to a Buc-ee’s gas station, highlighting the growing competition in the gas station market.