Costco to Build First Standalone Gas Station in Mission Viejo

Categories: Business NewsConstructionNews

An artist's rendering of the future Costco standalone gas station in Mission Viejo.

News Summary

Costco is set to open its first standalone gas station in Mission Viejo, located at the former Bed, Bath & Beyond site. The facility will feature 40 fuel pumps, exclusively serving Costco members, and is expected to commence construction in fall 2025, with completion in spring 2026. City officials estimate daily traffic could reach 9,500 vehicles, highlighting the increased local traffic that may result. The move aims to enhance Costco’s services while potentially alleviating congestion at existing warehouse locations.

Mission Viejo, California – Costco is set to construct its first standalone gas station in Mission Viejo, marking a new venture for the wholesale retailer. The project will be located at 25732 El Paseo, an area previously occupied by a Bed, Bath & Beyond store. This new facility is expected to be the company’s largest gas station, featuring a total of 40 fuel pumps.

The gas station will exclusively serve Costco members, aligning with the company’s strategy to offer additional services to its loyal customer base while keeping fuel prices competitive. Construction on the site is projected to commence in the fall of 2025, with an estimated completion date set for spring 2026. The city of Mission Viejo granted approval for this project through a discretionary application process on March 10, 2025.

Costco’s existing gas stations have been experiencing high fuel sales, with record figures reported during their recent third-quarter earnings call. The company has noted that gasoline sales accounted for approximately $30 billion of its revenue last year, making up about one-eighth of total sales. Analysts suggest that this standalone gas station could further enhance Costco’s appeal to customers seeking affordable gas options.

City officials predict that the station will generate substantial traffic, estimating about 9,500 vehicles will stop for gas daily between the hours of 5 a.m. and 10 p.m. Additionally, the gas station will require 9 fuel truck deliveries each day to maintain its operations. These projections signal a significant increase in local traffic, which could impact roadway congestion in the surrounding area.

Notably, this new station will not offer any automotive or retail sales, differentiating it from traditional gas station offerings. It is positioned approximately two miles from an existing Costco warehouse, which already includes a company-operated gas station. This proximity could provide a convenient fueling location for members shopping at the warehouse.

In response to growing demand, Costco has recently extended the operational hours of its gas stations. The new hours now accommodate late-night customers, remaining open until 10 p.m. on weekdays and opening earlier on weekends. This strategic move is designed to attract even more Costco members looking to fill up their tanks.

The introduction of a standalone gas station is a part of Costco’s broader strategy to enhance member services and mitigate traffic congestion commonly observed at their warehouse locations. By providing exclusive access and a larger station, the company aims to streamline the fueling process for its members and improve the overall customer experience.

As Costco continues to expand its gas station offerings, industry analysts are closely watching the potential success of such concepts. The standalone gas station format could prove beneficial for both the company and its members, positioning Costco as a leader in providing low-cost fueling options while maintaining strong sales in the highly competitive retail sector.