(Okoboji)– The President and CEO of the Kum and Go Convenience Store chain was the keynote speaker Thursday evening in the latest in a series of presentation on growing Iowa’s economy. The event was held at the Pearson Lakes Art Center in Okoboji. The series is sponsored by Iowa Lakes Community College.
Kyle Krause told the crowd Kum and Go saw a lot of growth over the past year, having opened 12 stores in 2006. The company acquired 17 stores and razed and rebuilt five stores, including one in Spirit Lake. Krause said this year they plan to open 21 new stores and acquire atleast 15. They plan to raze and rebuild three others.
Kum and Go operates 445 stores in 13 states. It’s the 18th largest convenience store chain in the country and is the seventh largest privately held convenience store chain.
Krause said they’re pleased with the performance last year, but he says it didn’t come without some challenges. He cites three in particular: the increase in Iowa’s cigarette tax; the increase in the state’s minimum wage; and one that’s even more concerning to Krause–a huge increase in processing fees credit card companies are charging businesses. Krause says the convenience store industry paid Visa and MasterCard some 5.4 billion dollars last year alone.
When it comes to the record high gas prices, Krause says he isn’t sure just how high it’s going to go. He says they’re still waiting to see just how it’s going to change consumer’s spending habits.
Krause says a lack of refineries is largely to blame for the record high gas prices. He says it’s been 30 years since a refinery was last built in this country. Meanwhile, demand for gasoline continues to rise. And Krause says the cost of getting that gasoline to Iowa is also on the rise.
