Business Spotlight: Underwood Oil Company

Tom Underwood, owner and president of Underwood Oil Company in Rogersville, feels right at home in his office, which is located just south of the intersection of Highway 60 and VV in Rogersville. That's because his office is "home."

"I grew up on this corner," he said. "I remember when they moved the highway over here in 1965. It divided some land my family owned."

Underwood grew up in Rogersville but left the area to attend William Penn College in Oskaloosa, Iowa. In 1971 he returned and began working at the family's oil distributorship business, which then was called Rub Oil Company.

Virgil Ray, John Underwood and Bill Breedlove founded the business in 1960, and they used the first letter of each of their last names to come up with the company's moniker. In time, however, John Underwood bought out his partners and became the company's sole owner.

Initially, Rub Oil Company distributed Skelly motor oil to local farmers. By 1979, however, the number of people farming in the area had begun to dwindle, and the company's customer base began to shift. John and Tom Underwood decided to purchase a bulk gas and diesel storage facility in Springfield and built a warehouse, which was used to store motor oil. The company's office also moved to Springfield.

"It was the thing to do at the time," said Tom Underwood. "Having the storage facility allowed us to increase our business quite a bit."

Five years later, the market shifted again. Texaco bought out Skelly, and Rub Oil Company became a Texaco distributor. Around this same time, John Underwood decided to retire, and he turned the business over to Tom.

"Actually, my dad never came out and told me he was retiring," Tom Underwood said and laughed. "He just didn't show up for work one day."

Later that same year, Tom Underwood changed the company's name to Underwood Oil Co. Inc. He also began taking the company in a new direction. Many gas distributors were beginning to open up service station/convenience stores, so he decided to build an Express Mart Convenience Store complete with gas station at the corner of Highway 60 and VV in Rogersville.

"I was the first business on this corner," he said. "The shopping center across the way, the Hardee's none of that was here then."

Over the next few years, he added two more gas station/convenience stores in Sparta and Highlandville. In 1992, Underwood sold the bulk gas and diesel storage facility in Springfield along with the company's warehouse, and the company's focus shifted from wholesale to retail.

In 1997, Underwood added Express Mart Convenience stores in Ava and Springfield. He also began putting fast-food restaurants inside his stores, which helped give him a competitive edge and attract more customers.

A Subway restaurant was added to the store in Highlandville, and a Taco Bell went into the store in Ava. Three years later, he added Subway to the store in Sparta, and opened a second Subway next to the Express Mart Convenience Store in Rogersville.

Underwood is in the process of building a new store at his Rogersville location. Construction is expected to be completed by January, and the new store will house a McDonald's restaurant.

Prior to construction, Underwood moved the Subway to a building just south of its old location. Underwood said the existing Express Mart Convenience Store will be demolished once construction is complete.

"It seems like every time I build something, our distributorship changes," he said. "Right after I opened the store in Rogersville, Skelly was bought out by Texaco, and we became a distributor for Texaco. I start building a new store, and then I hear that Shell is buying out Texaco. So now we're going to be a distributor for Shell."

According to Underwood, all five Express Mart Convenience stores will be converted to Shell-branded stations by spring. However, each store will maintain its friendly, small-town flavor.

"I have competition in these small towns," he said. "I think people pull into my stores, though, because they like a store that has that local feeling."

The fast-food restaurants housed in Express Mart Convenience stores also have helped give Underwood a leg up on the competition. In fact, the Taco Bell located in the Ava store was named as the No. 1 licensee by the chain in 2000.

In addition to running Underwood Oil Company, which employs 70 people, Underwood's family owns a strip mall in Rogersville. He also is active in the Rogersville Chamber of Commerce and has done his part to help bring new businesses to the town.

When he's not working in Rogersville, Underwood can be found at his office at Sunbelt Environmental Services Inc. of Springfield, where he serves as the CEO. Leroy and Karen Schaefer co-own the company with Underwood. Sunbelt was started in 1995 and offers full-service industrial waste management services as well as environmental consulting.

Although business matters take up a great deal of his time, Underwood said his family always takes top priority. Whenever possible, he enjoys spending time with his wife Sherry, his son Troy, his daughter Joy Pitts, his stepdaughter Courtney Hogue and his two grandchildren.