With demand for fuel expected to continue declining over the coming years, petrol stations will have to adapt their offerings to stay afloat.
Fuel retail sales in South Africa dropped by 7.6% over the past five years, driven by efficiency improvements, regulations to curb emissions, and the rise of electrification and shared mobility.
Consumer behaviours are also changing at a rapid pace, with people increasingly working from home and ditching office commutes, and online shopping being the biggest it has ever been.
Despite the shrinking demand for propellants, the number of fuel station forecourts across the country has increased significantly. In the last year alone, these forecourt convenience stores recorded an average turnover increase of 14%.
Forecourt ecosystems
In an article published on African Retail, Nedbank’s Karen Keylock explains that fuel forecourts will evolve into “ecosystems” in the future as demand for fuel continues to dive.
She points out that that the average South African drops by a fuel forecourt 10 times a month, with few of these visits being for refuelling.
Data shows that 74% of visitors shop at the grocery store, 68% buy takeaways, and many use the ATMs and grab a coffee on the go.
The Fuel Retailers Association (FRA) – a Nedbank partner in the sector – therefore believes that South African fuel and convenience retailers need to shift their focus from servicing vehicles to meeting the needs of drivers and passengers.
“This means viewing fuel forecourts as ecosystems that include fuel, ATMs, quick service restaurants, grocery stores, and more, essentially replacing the old-school corner café or tearoom,” said Keylock.
She added that South Africa can learn a lot from countries like Brazil, Japan, and Thailand, who are way ahead of the curve.
The key considerations from these nations surround the architecture of their service stations, urbanisation, and access to food service.
Many of them prioritise design over function to create an inviting atmosphere, such as moving the petrol pumps to the rear of the building to improve aesthetics as fuel is no longer the main attraction.
Additionally, in densely populated urban areas, people are now living in smaller apartments and need conveniently located laundromats and ready-made meals.
Stylish, comfortable co-working spaces with WiFi, coffee, and food are growing in demand, too.
By adapting to these needs, filling stops in these areas could tremendously increase their foot traffic and see significant returns on their investment.
A food service that goes beyond basic offerings like milk, sweets, and pies, also offers great potential.
Focusing on the example of coffee, anecdotal data says that approximately 50% of fuel retailers offer filter coffee and other basic options, followed by 23% providing a Barista-style experience.
But, those that are truly maximising this opportunity are the 15% with the full coffee shop experience, including seating, coffee shop-style food, and co-working spaces.
A solid example is Thailand’s Café Amazon, owned by PTT Public Company Limited, which is Thailand’s largest state-owned oil and gas company.
Since its launch in 2002, Café Amazon has become the world’s sixth-largest coffee chain.
The final ingredient in the recipe to success is to understand the local customer and matching the experience to their desires.
For instance, a coffee shop at a fuel station in Helsinki, Finland, will have a vastly different look and feel than one in Dubai, United Arab Emirates.
The first is likely to have a warm and cosy atmosphere with dark wood and plush seating, while the latter will probably be lighter and brighter with pale wood accents and a feeling of openness.
Leading the charge
One filling station that is leading the charge in terms of transformation in South Africa is The Pantry in Rosebank, Johannesburg.
Designed by the masterminds behind the esteemed Marble and Saint restaurants, The Pantry is not your typical petrol station as it places a large emphasis on the visitor experience.
It only has eight fuel pumps and two electric-car chargers, not that many when compared to most other stations in such a busy area, but the design of the station and its retailer offerings are unmatched.
It features bohemian styling with flowing wooden rafters above the pumps and parking lot, interspersed with calming lighting and abundant greenery, a far cry from the usual flat steel roofs with stark white downlights you get at other stops.
It’s when you enter The Pantry that it becomes more apparent that this is not just another petrol station.
The interior is split into two main areas, the convenience store located on the left while the other end is where you’ll find a variety of kiosks.
The shop naturally carries the usual necessities such as chips and soft drinks, but the shelves are also lined with a number of items that are a bit more upmarket.
The fridges are stocked with cordials and mixers, and imported labels are a common site across the various sections.
Exotic foods like smoked salmon, Wagyu-grade steak, and Dragon Fruit are available, and one section is dedicated to Asian cuisine with things such as ramen, mochi, and Kewpie mayo.
There is also a freezer filled with ice cream, as well as shelves for charcoal, pet food, and cleaning products.
You can even get perfumes, candles, soaps, and other bathroom accoutrements, presenting an attractive location for after-hours shopping.
At the other side of the The Pantry, there are three different counters for meals and drinks.
First up is the coffee counter, which also houses a selection of pastries like cakes, milk tarts, and beignets (French-style doughnuts).
Next to this are two more stands for baked goods including fresh breads, doughnuts, and various croissants.
The second counter is for ordering hot foods such as burgers, chips, prego rolls, pies, or a pizza from a nearby wood-burning oven.
At the back are two more areas of interest – the first of which is a fully-stocked wine shelf, while the other is a milkshake and ice cream bar with soft-serve machines, cones and cups, and numerous toppings.
A TopAuto journalist who visited The Pantry described it as a “very pleasant experience” with “friendly staff” and an amount of choice that was “almost overwhelming.”
“It probably won’t be the last time I make a stop to try out what they have to offer,” they said.
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