What’s at Stake?
Since 1956, Congress has prohibited states
from offering commercial services at
Interstate Rest Areas.
Strategy: To encourage commercial
development along new IHS
Result: Today 95,000 exit businesses thrive.
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Commercial rest areas are in operation in 13
states.
◦ Toll roads or former toll roads
◦ Locations “grandfathered”
Before a state could move forward, Congress would
have to act.
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State budgets are stretched. Some state
DOTs believe commercialization would be an
answer to state budget problems.
Unfortunately, commercialization would be
nothing more than shifting the problem onto
interstate businesses and cities and counties.
Towns and counties depend on property tax
revenues from the exit businesses.
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All businesses serving motorists operating of the
Interstate would be impacted by the development
of commercial rest areas.
These businesses paid a premium for real estate
based on their proximity to the interstate and
depend on traffic exiting the interstate.
Rest areas have the advantage of “location” that
no one else has access to– the interstate Right of
Way.
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Because of the existing commercialized rest
areas, we can learn a lot about the impact to
business from commercialization.
UMD Study: Interstates with commercialized
rest areas have 50 percent fewer businesses
at the exit interchanges.
They become “virtual monopolies” that charge
higher prices to motorists to generate
revenues for the state, the large concession
contractor and the subcontractors.
Prices typically 30 percent and higher
2 commercial rest areas within 20 miles of each
other (MMs 83 & MM 98)
Over 109 miles, I-95 Maryland has only 201
interstate-based businesses
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39 Gas Stations
6 Fuel Stops
6 Truckstops (providing 1,255 truck parking spaces)
3 Truck Service Facilities
41 Hotel/Motels
106 Restaurants
No Commercial Rest Areas…
Over 178 Miles of I-95
858 Interstate businesses including:
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129 Gas Stations
19 Fuel Stops
11 Truckstops
12 Truck Service facilities
516 Restaurants
171 hotels
Maryland
Virginia
Ratio
109
178
3/5
Businesses total 201
858
2/9
Gas Station
39
129
2/7
Fuel Stop
6
19
1/3
Truck Service
3
12
1/4
Restaurant
106
516
1/5
Lodging
41
171
1/4
Length (miles)
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Myth: Rest area commercialization is an
opportunity for local small businesses.
Facts:
◦ Local businesses do not want to jeopardize their
investments at the exit.
◦ No single small business has the financial resources
to compete with multi-billion dollar corporations
that are awarded concession contracts.
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Myth: This is privatization, and that’s a good
thing.
Facts:
◦ This is government intrusion into the private sector.
◦ It’s siphoning customers away from businesses that
support small town and communities.
◦ Privatize the maintenance of the rest area.
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Myth: This law is outdated and protectionist.
It was set up to “protect” Mom and Pop, and
they are gone.
Facts:
◦ This is government competing with the private
sector, but with a unique advantageous location
that only the state has access to.
◦ Today, Mom and Pop are operating branded gas
stations and fast food franchises.
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Myth: A state can get a waiver that will allow
it to commercialize.
Fact: No such provision exists.
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Interstate Oasis created under SAFETEA-LU
allows states to partner with exit businesses
to offer travelers 24-hour services.
NATSO * National Association of Convenience Stores * Petroleum Marketers Association of America *
Blind Entrepreneurs Alliance * American Petroleum Institute * Society of Independent Gasoline
Marketers of America * Arkansas Oil Marketers Association * Arizona Petroleum Marketers Association
* Association of Kentucky Fried Chicken Franchisees * Brinker International * Burger King Corporation *
California Independent Oil Marketers Association * Coalition of Franchisee Associations * Colorado
Petroleum Marketers and Convenience Store Association * Franchise Management Advisory Council *
Fuel Merchants Association of New Jersey * Idaho Petroleum Marketers and Convenience Store
Association * Indiana Petroleum Marketers & Convenience Store Association * International Pizza Hut
Franchise Holders Association * Interstate Dairy Queen Corporation * Petroleum Marketers and
Convenience Store Association of Kansas * Kentucky Petroleum Marketers Association* McDonald’s
Corporation * Louisiana Oil Marketers & Convenience Store Association* Mid-Atlantic Petroleum
Distributors' Association * Michigan Petroleum Association and Michigan Association of Convenience
Stores * Missouri Petroleum Marketers and Convenience Store Association * Montana Petroleum
Marketers and Convenience Store Association * National Association of Shell Marketers * National
Franchise Association (Burger King franchisees) * Nebraska Petroleum Marketers and Convenience
Store Association * Nevada Petroleum Marketers & Convenience Store Association * North Carolina
Petroleum & Convenience Marketers* North Dakota Petroleum Marketers Association* Oklahoma
Petroleum Marketers & Convenience Store Association * OSI Restaurant Partners (Outback
Steakhouse and other brands) * Petroleum & Convenience Marketers of Alabama Petroleum Marketers
& Convenience Stores of Iowa * South Carolina Petroleum Marketers Association * South Dakota
Petroleum and Propane Marketers Association * Taco Bell Franchise Management Advisory Council *
Tennessee Fuel & Convenience Store Association * Texas Petroleum and Convenience Association *
Utah Petroleum Marketers & Retailers Association * Virginia Petroleum, Convenience and Grocery
Association * Washington Oil Marketers Association * West Virginia Oil Marketers and Grocers
Association* Wisconsin Petroleum Marketers & Convenience Store Association * Wyoming Petroleum
Marketers & Convenience Store Association
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