Petrogas to expand Applegreen format in Ireland and the UK

Petrogas, Ireland’s leading independent forecourt retailer, is expanding its chain of Applegreen service stations in the domestic market and the UK.

The company, which was founded in 1992 by CEO Bob Etchingham and retail director Joe Barrett, opened Ireland’s first motorway service station in Balbriggan on the M1 motorway on 26 November 2008.

Petrogas co-founders: Bob Etchingham and Joe Barrett

Earlier in the year, Petrogas acquired seven petrol station sites in the UK and relaunched the first site under the Applegreen banner in October 2008.

According to head of marketing, Annabel Tonge, further Applegreen openings are in the pipeline.

“We have ambitious plans in Ireland and in the UK,” she said.

In its home market, Petrogas is planning to open a service station a month in 2009 with the majority under the Applegreen brand, which the company launched in 2005. It has similar ambitions in the UK, said Tonge.

“Applegreen has been extremely successful and the company is doing very well,” she said.

“Like-for-like the company has grown but there has also been huge expansion in the last year.”

Petrogas operates a total of 62 sites comprising 54 stores in Ireland, one in Hilllsborough in Northern Ireland and seven in the UK. Eight sites in Ireland and the Hillsborough store trade under the Discount Fuel Deals brand.

Of the remaining sites in Ireland, 21 have been converted to the Applegreen brand. The remaining sites are largely unbranded and, according to Tonge, store branding is predominately dependent on demographics and footfall.

First motorway services

Balbriggan: ample parking

The Applegreen motorway service station site is a landmark opening in many respects. Not only is it Ireland’s first but it has a prime location on the M1 between Dublin and Belfast.

As well as featuring the company’s signature ‘low fuel prices, always’ strapline, the site offers state-of-the-art car wash facilities including a premium soft brush machine and jet wash. It also features an Applegreen coffee shop with free Wi-Fi facilities.

There is also a separate truck and coach forecourt and drivers’ rest room in the main building. “So long distance drivers can get a proper break,” explained Tonge.

In the UK, meanwhile, Petrogas’s first Applegreen site in Enfield, Greater London, is reported as having the best-performing fuel sales in the company.

Tonge reports a second Applegreen site in Corby, Leicestershire, will be opened in January 2009 and a third in Biggleswade, Bedfordshire, in February 2009.

Tonge said Petrogas has identified an opening in the market.

“Joe and Bob saw a gap in the market and felt that the Applegreen brand with low fuel prices on the forecourt and high quality food and coffee is missing in the UK at the moment.”

Food and fuel strategy

Applegreen: strong food-to-go offering

Petrogas’s twin strategy for low fuel prices and a strong food-to-go offer has driven the Applegreen and Discount Fuel Deals formats’ success, said Tonge.

In Ireland, the company has a footfall of 450,000 people per week across its estate, equating to one in 10 of the population.

Food is a strong draw with coffee and a deli offer two areas of success.

The company works closely with Lavazza to deliver its own Full of Beans coffee brand, which it markets as ‘the best coffee on the road’.

According to Tonge, Petrogas sold over 185,000 cups of coffee in November in Ireland.

The deli offer, meanwhile, features a range of self-serve sandwiches, salads, fruit salads and desserts. The range and branding is thoroughly researched and developed, added Tonge.

“In Ireland that’s what people would know us for and we benchmark against M&S rather than a local shop,” she said.

“Food-to-go is extremely important and we are always looking for new ideas to keep it fresh.”

One initiative is a range of limited edition sandwiches, which are continually changed but incorporated as core lines if successful.

There is also a significant range of hot food on offer including paninis and hot sandwiches.

Juice bars also feature in a number of stores, while the new Balbriggan site includes an ice cream parlour.

Quality service

Best on the road experience

But it’s not just about food and fuel, said Tonge.

“The other thing we pride ourselves on with Applegreen is a high quality overall customer experience.”

This includes ample car parking, excellent toilet facilities and the best quality of car wash on the market.

“We are giving customers the best on the road experience,” said Tonge.

With the company’s planned expansion, more customers are poised to benefit.