It Turns Out Charging Stations Are Cash Cows For Nearby Businesses

Local businesses are cashing in on charging station wait times.

Electricy America MIT EV Charging Economic Study

Photo by: Electrify America

Rob Stumpf

By: Rob Stumpf

Sep 24, 2024 at 9:30am ET

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A new study was conducted on the economic impact of EV chargers
Businesses within a mile radius of new EV chargers experience a surge in annual income
Coffee shops, restaurants, and convenience stores are the big winners

When people ask me how long it takes me to top off while charging, I often give them the same spiel: "Long enough for me to use the bathroom, grab a snack or drink, and walk back to the car." It turns out I'm not alone.

A new study from MIT has confirmed what most of us have already suspected: EV charging stations aren't just better for the environment; they're also money printers. And it's not just charging network providers who see green—so do nearby shops.

Hyundai Kona Next to Steet side chargers

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The study drilled in on spending patterns for businesses around EV charging locations. It turns out that businesses located within a mile of an EV charger saw a notable increase not just in customer traffic, but also customer spending. From the study:

[I]n California, opening a charging station boosted annual spending at each nearby business by an average of about $1,500 in 2019 and about $400 between January 2021 and June 2023. The spending bump amounts to thousands of extra dollars annually for nearby businesses, with the increase particularly pronounced for businesses in underresourced areas.

It turns out that when drivers plug in their cars for a few minutes, they also plug into their wallets to drop spare cash at nearby coffee shops, food joints, and retail stores while their car charges.

Think about it: what else are you doing while waiting for your battery to juice up? That "dwell time," as it's known, is what's propping up local businesses. You could twiddle your thumbs or pop on Netflix for a bit. You could also engage in consumerism by visiting Starbucks for your favorite drink and then doing impulse shopping at Target.

What's fascinating is how charging is reshaping local economies as EV traffic becomes heavier across the U.S. The research found that existing businesses were seeing a bump in customers, and new businesses began to pop up in the area as it became more of an EV hot spot.

Gas stations simply don't have the same effect—but then again, those are quick stops that take just a few minutes between fill-ups. Even with that come-and-go model, most gas stations still have a convenience store attached, and that's a parallel that can be explored for EV chargers as well:

"The joint gas station and convenience store business model could also be adapted to EV charging stations," said Yunhan Zheng, the lead author of the study. "Traditionally, many gas stations are affiliated with retail store chains, which enables owners to both sell fuel and attract customers to diversify their revenue stream. EV charging providers could consider a similar approach to internalize the positive impact of EV charging stations."

EV chargers create this weird downtime between plugging in and charging up enough to take off. While many EVs are targeting ultra-fast charging times (and, boy, do consumers want that), a small break is plenty of time away from the wheel to stretch your legs, wake up, and check out that small boutique you passed on the way in.

Not all businesses feel the love equally. MIT's findings note that coffee shops, restaurants, and convenience stores are seeing the most increase in revenue. Basically, the places where people can kill 20 or so minutes while using a DC Fast Charger. So while that bookshop might not be swimming in cash, the taco place next door probably is thanking Tesla as every new car pulls up to the nearby Supercharger.

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This study is a wake-up call for businesses on the fence of setting up shop near a charging station. These small stations are creating mini mile-wide economic hubs across America, and with more charging infrastructure coming online as EV adoption continues to ramp up, proximity to an EV fast charger might just become prime real estate. It's almost like "charging, charging, charging" is the new version of "location, location, location."

So remember the next time you're at a charging station: it's not just your car getting a boost; it's also the local shops.

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