Business

Big change to petrol stations across South Africa

Petrol stations across South Africa have changed from places to buy fuel to shopping destinations with restaurants, coffee shops, and convenience stores.

To understand the evolution of filling stations in South Africa, it is instructive to look back at the ‘Service Station Era’ of the 1950s to 1970s.

During this period, fuel companies opened dedicated service stations along suburban corridors and main routes like the N1 and N3.

These service stations were solely focused on providing motorists with fuel while checking the oil, tyres, and water.

Petrol attendants operated the petrol pump, checked the water and oil under the bonnet, and washed motorists’ windscreens.

The only retail section at these filling stations was a tiny glass counter selling motor oil, fan belts, maps, and perhaps cigarettes and cold drinks.

However, in the 1980s, fuel companies started to experience margin pressure and realised that driver dwell time was an untapped goldmine.

Instead of letting motorists sit in their cars waiting for the petrol attendant to fill their tank, they could buy bread, milk, and other essentials.

Petrol stations began installing small glass-fronted shops around their payment kiosks, offering basic goods like cold drinks, biltong, chocolates, and cigarettes.

On major highway routes, Shell opened Ultra Cities, and Engen launched 1-Stops. They offered a full retail experience, including takeaway outlets.

It was not long before major filling station brands started to launch fully stocked convenience stores which were open 24-hours per day.

Prominent forecourt brands included Engen Quickshop, Shell launched Select, Caltex Star Mart, and BP Express.

These convenience stores replaced traditional corner cafes in South Africa, which served as neighbourhood general dealers and takeaway spots.

A new era for filling stations in South Africa

Over the past 15 years, forecourts have undergone a complete metamorphosis, with retail becoming a prominent feature.

Selling petrol and diesel is no longer the primary driver of revenue and profit for many filling stations.

Nearly half of the people visit modern forecourts without buying petrol. They go strictly for the retail stores, coffee, or prepared food.

The petrol station owners have also improved their offerings beyond generic white-label products by partnering with top retail brands.

Engen partnered with Woolworths Food, BP and Pick n Pay joined forces, and Astron Energy partnered with FreshStop.

People can now get their favourite Woolworths Food meals and products at Engen forecourts, along with many other products.

It is also commonplace to find Steers, KFC, Wimpy, Mugg & Bean, and Spur at filling stations, especially along major routes.

Coffee shops are particularly popular. Branded partnerships, like Shell with Vida e Caffè, BP with Wild Bean Cafe, or Engen with Seattle Coffee Co., are prevalent.

These partnerships have made local filling stations a place where millions of South Africans get their high-end coffee fix.

The next era: Ultra-luxury resorts

A new era of ultra-luxury forecourt is emerging in South Africa, surpassing what is available at an Engen Woolies Foodstop or BP PnP Express.

David Higgs and Gary Kyriacou, the team behind the successful Marble, Saint, and Zioux restaurants, were the first to launch this concept.

When the COVID pandemic and lockdowns forced them to close their restaurants, they were forced to innovate and restructure their business.

They developed a concept for a luxury forecourt offering wines, grab-and-go meals, local produce, good coffee, and baked goods.

Everything down to the music was carefully curated to ensure customers had an excellent experience.

It was set to be open 24 hours a day, and chefs and restaurant managers are on-site to help customers with their queries.

In March 2022, The Pantry opened in Rosebank. They did not have a licence to sell petrol yet, and operated only a convenience shop for the first two months.

The ultra-luxury experience was so successful that they struggled to keep up with how fast products were flying off the shelves.

Since then, other petrol stations have followed the same model. Relish Delux at the Astron Energy petrol station in Rosebank is a good example.

Relish offers a wide range of items, from freshly baked croissants to wood-fired pizzas, Wagyu burgers, and premium toasties.

More ultra-luxury forecourts are now rolling out across South Africa, completely changing the traditional petrol station business model and experience.


Inside The Pantry in Rosebank


Inside Relish in Rosebank


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