BP has done little to repair its reputation since the tragic accident on the Deepwater Horizon oil rig left 11 crew members dead and created an ecological and economic disaster in the Gulf Coast. Among the innocent parties affected by the disaster have been the thousands of independently-owned gas stations that sell fuel under Amoco, ARCO and BP banners.
Americans across the country have stopped buying gas at the stations as they shun anything BP-related. Some station owners report sales declines up to 40 percent in recent weeks and they want BP to do something about it.
According to an Associated Press report, a group of gas distributors and station owners told BP that they want the company to reduce the cost of gasoline and kick-in funds to help pay for an ad campaign to help bring motorists back.
"They have got to be more competitive on their fuel costs to the retailers so we can be competitive on the street ... and bring back customers that we've lost," Bob Juckniess, an owner of 10 BP stations in the Chicago area, told the AP.
"We're their branded marketers," Mr. Juckniess said. "It would be foolish for BP to not support its branded marketers when clearly we can document that some of the loss that we've experienced is due to the incidents in the Gulf."
For its part, BP maintains it understands the issues faced by franchisees. "BP is in daily contact with its independent distributors and franchisees and helping them manage the impacts the oil spill is having on their businesses," said Scott Dean, a spokesperson for BP.
Jim Smith, president and CEO of the Florida Petroleum Marketers & Convenience Store Association, said BP has given some stations in that state a discount of a penny a gallon, which, he said, "Doesn't amount to much."
Discussion Questions: What should BP be doing to help its franchisees in light of the negative publicity surrounding the company? What should the franchisees be doing for themselves?