Costco to Open First Standalone Gas Station in Mission Viejo

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Costco's new gas station set to open in Mission Viejo

News Summary

Costco is set to launch its first standalone gas station in Mission Viejo by spring 2026. The facility will feature 40 fuel pumps and will be exclusively for Costco members. Located close to the 5 freeway, it aims to cater to heavy traffic, handling over 9,500 vehicles daily. This expansion aligns with Costco’s strategy to grow its gas station network, following significant fuel sales success. Construction starts in fall 2025, but there are no plans for additional retail offerings at the site.

Mission Viejo, California is set to welcome Costco’s first standalone gas station by spring 2026. The new facility, located at 25732 El Paseo—the site of a currently shuttered Bed, Bath & Beyond store—will boast 40 fuel pumps, making it Costco’s largest gas station to date.

This gas station will only be accessible to Costco members, and it is strategically positioned about two miles from the nearest Costco warehouse, just off the busy 5 freeway. The new location is expected to handle over 9,500 vehicles daily, catering to a high volume of traffic in the area.

Construction is scheduled to commence in the fall of 2025, leading up to the anticipated opening in spring 2026. This initiative is part of Costco’s broader strategy to expand its gas station network, particularly after recently achieving record fuel sales at its member-only stations.

The Mayor of Mission Viejo, Bob Ruesch, has expressed enthusiasm about this new business partnership, emphasizing the benefits it will bring to local residents. However, plans for the gas station do not include a convenience store or additional retail offerings, focusing solely on fuel services.

Costco’s gas sales have notably surged, with the company reporting approximately $30 billion in fuel sales over the past year, representing nearly 12.5% of its total revenue. The growth of its gas station operations is attributed to various factors, including extended operating hours and the introduction of new facilities which aid in alleviating congestion at existing locations.

Competitive pricing on fuel plays a significant role in attracting Costco members to its gas stations. This has been pivotal to the retailer’s strategy, especially given the rising cost of living and the increasing prices at gas pumps across the country. The new Mission Viejo location is expected to reflect Costco’s usual low prices on gasoline, appealing to both existing and potential members.

In a bid to enhance operational efficiency and reduce membership misuse, Costco has recently implemented new membership card scanners at the entrances of its gas stations. Additionally, the company has made headlines by raising its membership prices for the first time in seven years, further contributing to its revenues as it expands its service offerings.

The establishment of this gas station marks a significant development for Costco, aligning with its ongoing growth strategy and commitment to providing value to its members while also addressing logistical challenges at its existing gas service points.