For decades, drivers across Nebraska have pulled into U-Stop convenience stores for fuel, coffee, or a quick snack. Behind those locations is a family business that has quietly grown into one of the region’s largest independent convenience store operators.
Mark Whitehead leads Whitehead Oil Company and its retail brand, U-Stop. What began as a petroleum marketing company founded by his father has evolved into a network of 39 convenience stores across Nebraska and Kansas.
The business traces back to the late 1950s, when Whitehead’s father left a job with Phillips Petroleum to start his own operation in Lincoln. Over time, the company expanded from supplying fuel to operating retail locations.
“The reality is day in and day out we’ve got to be the best alternative for customers to fuel their vehicles,” Whitehead said. “That’s looked like a lot of different things over the course of the last several decades.”
As the industry changed, the company adapted. In 1982, the business transitioned from traditional full-service stations to convenience stores—an early move that positioned the company for long-term growth.
Today, U-Stop locations look very different from the small gas stations of the past. Many include fresh food, expanded grocery options, and even car washes.
Whitehead says the strategy comes down to standing out in an industry where customers can see prices instantly.
“There isn’t anything on the retail market more visible than the price of a gallon of gasoline,” he said. “So we measure the market every day to make sure we’re competitive.”
Fuel may bring customers to the lot, but it’s rarely where convenience stores make their money.
According to Whitehead, the economics of the business are surprisingly lopsided. Fuel accounts for the majority of revenue, but most profits come from inside the store.
“About 80 percent of our revenue comes from fuel, but only about 20 percent of our profit,” he explained. “Inside sales are the opposite—about 20 percent of revenue and roughly 80 percent of profit.”
That reality drives many of the decisions inside U-Stop stores—from refillable coffee programs to expanded food options and carefully designed store layouts that encourage customers to step inside.
Growth has come both organically and through acquisitions. The company has built new locations and purchased existing chains when opportunities arise.
But even as the footprint grows, Whitehead says the philosophy remains simple: earn customer loyalty every day.
In a business where prices can change overnight and competitors sit on every corner, success often comes down to small advantages—better stores, stronger community relationships, and a consistent customer experience.
For Whitehead, it’s a reminder that even in a commodity business like fuel, strategy still matters.
Building Nebraska is proudly powered by the Engler Agribusiness Entrepreneurship Program at the University of Nebraska–Lincoln.