Thursday, April 17, 2025

April 7, 2025

Petrol Stations Are Glowing Up With Major Pitstop Perks

Fuel sales are slipping, but your local garage is gearing up to be your next favourite coffee spot, lunch break hangout, and mini-market run- all in one.
SP 28 66 id= BP petrol filling station and shop, Coventry Road, Warwick

[Image: Wikimedia Commons]

Let’s face it: people want a little something more when filling up their tanks.

Fuel retail is taking a knock – globally and in Mzansi – and savvy forecourts are having to flip the script. Now, it’s less about the petrol and more about the pitstop perks: think convenience stores, flat whites, free Wifi, food on the fly, and spaces that offer more than a stale pie and a leaky coffee cup.

Karen Keylock, Nedbank’s national retail services manager, explained via Daily Investor that fuel retail has been on the decline for a while.

“The long-term expectation is a 9.2% decline in global value to $79 billion (R1.46 trillion) in 2030, driven by efficiency improvements, regulations to curb emissions, and the rise of electrification and shared mobility.”

In other words, people are driving less, cars are becoming smarter, and petrol just isn’t the cash cow it used to be.

“On top of this, consumer behaviour is changing, with more people working from home and shopping online,” she adds.

Enter non-fuel retail, stepping up and stealing the spotlight.

“The decline in fuel retail income is expected to be offset by gains in non-fuel retail, with global forecourt value expected to increase by 36% to $30 billion (R552.76 billion) in 2030.”

So yeah, that forecourt shop isn’t just an afterthought anymore; it’s the main attraction.

Backed by Nedbank’s research partner Trade Intelligence, the local picture’s looking pretty similar. SA fuel sales have dropped 7.6% over the last five years. But instead of scaling back, we’re seeing more forecourts pop up, and they’re not playing small.

Keylock says, “Forecourt convenience store turnovers increased by 14% last year alone.” That’s serious hustle.

Even Lightstone’s stats agree: your average South African visits a forecourt 10 times a month – and less so for petrol. Get this: 74% of us are there for grocery runs, 68% grab takeaways, and many hit the ATM or snag a coffee on the go. Clearly, it’s not just a “fuel station” – it’s a lifestyle.

The Fuel Retailers Association (FRA), another Nedbank partner, is pushing a mindset shift too: less about filling up cars, more about fuelling people.

“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,” says Keylock.

Forget the one-trick pony forecourt. The new model is a one-stop shop with flair.

To keep pace, retailers need to level up, Keylock admits, saying, “International fuel retailers are way ahead in this sphere, and South Africa can learn from countries like Thailand, Brazil, and Japan.”

At the FRA Conference, Mark Wohltmann of the National Association of Convenience Stores (US) laid out the trends that are shaking things up globally.

He reckons the game-changer is design. “Prioritising design over function creates a positive atmosphere,” he said.

He even suggests flipping the script entirely: make the forecourt the backcourt because, you know, the fuel isn’t the star of the show anymore.

As cities get denser and living spaces shrink, consumers crave convenience. “Think laundromats, ready-made meals, WiFi-powered co-working spaces with great coffee and food,” Wohltmann says. Basically, take the grind out of the grind.

And don’t sleep on coffee. It’s not just a caffeine fix – it’s a huge business opportunity.

Wohltmann’s (very unofficial, but still telling) research shows that around 50% of fuel retailers sling basic filter coffee, 23% go Barista-lite… but the real MVPs? The 15% who go full coffee shop, with comfy seats, decent grub, and co-working vibes.

A poster child for this is Thailand’s Café Amazon, backed by oil giant PTT. Since 2002, it’s grown into the sixth-biggest coffee chain in the world. Yes, world.

Wohltmann’s golden rule for this is to know your people and tailor the vibe. Your Helsinki coffee stop better feel like a warm hug, while your Dubai one should be sleek and cooling from all that sun.

Japan, especially Tokyo, nails this approach: understanding the neighbourhood, the lifestyle, and the vibe is everything.

So, if your local garage still smells like petrol and sells two-day-old pies, it might be time for a glow-up. The future of forecourts is fresh, fast, and full of flavour. How fun.

[Source: Daily Investor]