New fast food franchise coming to one of South Africa’s most popular petrol stations

Tasty Gallos, a local fast-food brand, is planning to expand its operations into BP petrol stations to capitalise on the growing demand for convenience services at forecourts in South Africa.

The company, which was founded in 2020 and specialises in chicken meals, has set a target to open its first quick-service restaurant (QSR) at a BP fuel stop by the second quarter of 2027.

The partnership with BP, which is still pending the finalisation of agreements with participating dealers, comes as fuel station operators are looking to diversify their business models.

While petrol and diesel prices have skyrocketed this year, many fuel stations have actually experienced massive losses.

Forecourts operate on fixed margins because petrol prices are regulated in South Africa, meaning they are often forced to absorb the cost of the more expensive fuel.

Diesel is not regulated like petrol, but the higher prices have still led to a major reduction in fuel sales.

Even before the war in Iran broke out, the growing adoption of electric and hybrid vehicles signalled a downward trend in fuel consumption.

Because of this, forecourt owners are increasingly looking beyond fuel sales to sustain their business models, including ventures like fast-food outlets, laundromats, and e-commerce hubs.

The founder of Tasty Gallos, Muhammed Gutta, said the restaurant partnership would allow participating petrol stations to generate additional income from customers who might otherwise have no reason to visit their forecourts.

“A customer may pass the same station every day without needing to fill up. A restaurant gives the dealer a chance to bring that customer onto the site between fuel purchases and build more regular trade,” he said.

New business options for petrol stations

According to Tasty Gallos, roughly 68% of consumers buy fast food at petrol stations. A QSR would therefore help to attract visitors while encouraging additional spending at adjoining convenience stores.

“A customer stopping for a meal may add drinks, snacks, or other essentials from the adjoining shop. Meeting more of those needs under one roof creates more opportunities to earn from each customer visit,” Gutta said.

The Johannesburg-based company was created in March 2020 during the pandemic and positioned itself as an affordable, Halaal-certified alternative to established fast-food franchises.

It serves grilled and fried chicken, wraps, and shawarmas, and now operates a chain of over a dozen outlets nationwide.

This includes three locations in Gauteng at Eastgate, Greenstone, and The Glen, the Mthatha Plaza in the Eastern Cape, and a QSR at the University of the Witwatersrand, according to BusinessTech.

Tasty Gallos is now engaging with BP dealers and other forecourt operators to identify suitable sites and franchise partners for its planned fuel station expansion.

“We’re looking for operators who see the restaurant as a business worth building and are prepared to take an active role in its success,” said Gutta.