Petrogas drives food-to-go credentials in UK

Applegreen Balbriggan: Ireland's first motorway services

Petrogas, Ireland’s leading independent forecourt retailer, is developing its food-to-go credentials in the domestic market and in the UK.

Speaking on the new Global Forecourt & Fuels Day during the Insight/NACS Global Convenience Benchmarks event in Dublin, retail director Joe Barrett highlighted the difference between the Irish and UK market.

“Food-to-go is a hugely important part of the Irish business but it’s in the early stages of growth and development in the UK market,” he said.

Barrett said forecourt shops operated by symbol group retailers such as Spar, Londis and Mace in the UK were well developed but there was scope for an improved food-on-the-move offer.

Joe Barrett promotes coffee excellence at Applegreen

“We want to encourage investment into the industry so that people will realise that when they come into our shops they can get an excellent cup of coffee,” he said.

Petrogas operates 62 forecourts comprising 53 in the Republic of Ireland, one in Northern Ireland and eight in the UK and has a 9% share of the retail market in Ireland.

It is rolling out its Applegreen brand, which sits above the shop and on the forecourt canopy.

According to Barrett, Applegreen sites combine a high level of ambience including ample parking and facilities with a “low fuel prices, always” message.

In Ireland it has recently opened the country’s first motorway services site, a two-story building and is promoting a fuel and car wash price deal.

The company has recently launched its own ‘Apple to go’ brand on mineral water, which has already become the number two seller in the category with a 1-litre bottle on sale for E1. The company has also negotiated supply deals in order to offer shoppers good value under the ‘better value always’ promise and aims to keep those deals in place for at least the next year.

Barrett told delegates good design and low costs were part of the company’s DNA.

It has created its own coffee brand, for example, and claims to offer hotel spec toilets and smart interior and exterior seating areas.

Applegreen promotes its own Full of Beans coffee brand on the forecourt

Pick n Mix is another successful development, said Barrett, but a new Zest juice bar has enjoyed only moderate success.

“But we are trying things – you don’t always get it right,” he reminded delegates.

Petrogas has recently brought its logistics in-house and is now delivering frozen, chilled and ambient products to its chain, promoting its food-to-go ranges on new trucks as well as tankers.

Despite UK expansion, Petrogas has not simply copied the Irish forecourt model. “It’s a very different market and you have to walk before you can run,” said Barrett.

Grocery multiples, for example, have a dominant share and there has been growth of company-owned group-operated independents.

Forecourt shops, however, are nearly twice as busy in Ireland as the UK.

“There are opportunities to expand in both markets,” said Barrett, “it’s a question of tailoring the offer to meet both markets and transferring ideas.”

Barrett said Petrogas was positive in the current climate particularly because it is not exposed to fuel cards.

“The forecourt is resilient in the downturn,” he concluded.