Euro Garages Opens 60th Starbucks

This week saw the opening of our 60th Starbucks, our second in Scotland.

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The Grand Opening, held on the 27th, featured Local MP Colin Beattie and our very own Brand Manager, Mo Tayab, cutting the ribbon.

The Starbucks in Dreghorn, outside of Edinburgh and located just of the A720 Dreghorn Link, is a welcome addition to the Euro Garages family and we wish Ailsa and the team the best of luck.

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With a great location, large store and some stunning views, we’re sure they’ll have no problem fitting in.

CEO’s gain Industry Leader Award

Zuber Issa and Mohsin Issa, co-CEOs of Euro Garages, have jointly been named the 2016 NACS Insight European Convenience Industry Leader of the Year. The award, sponsored by PepsiCo Inc., will be presented during the NACS Insight Convenience Summit — Europe in London on June 9.

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“PepsiCo congratulates Mohsin and Zuber for winning the prestigious European Convenience Leader of the Year Award,” said Angus MacDonald, vice president of sales, PepsiCo UK and Ireland. “Through their vision and entrepreneurship, the Issa brothers are transforming the convenience retail market into a one-stop-shop for European consumers and global brands.”

Award judges agreed that the Issa brothers are demonstrating convenience industry leadership across the European market. Through their successful growth and acquisitions strategy, the retail firm is redefining the customer experience by bringing multiple brands under one umbrella, creating a single stop for exceptional foodservice, convenience store merchandise and fuel. This strategy also allows Euro Garages to cater to multiple customer bases, creating momentum for the retail firm to innovate its offer throughout various dayparts.

“I am delighted that Zuber and Mohsin Issa have won this award, which recognizes that progress in our sector is often driven by the energies, determination and vision of individual leaders. The Euro Garages U.K. story began with a single gas station. Hundreds of store openings and many new-to-industry site builds later, the Issa brothers are positioned for an even more exciting European and international future,” said Dan Munford, managing director of Insight.

As winners, Euro Garages will deliver a keynote address on 9 June at the NACS Insight Convenience Summit — Europe, sharing the company’s core business principles, operational execution and the key trends impacting today’s convenience retail industry landscape. Immediately before the address, joint owner Mohsin Issa will receive the award and participate in an interactive conversation with NACS President & CEO Henry Armour.

Now in its third year, the NACS Insight Convenience Summit — Europe brings together convenience and fuel retailing industry professionals from around the world to discuss new ideas and gain new commercial connections. This year’s event kicks off in Stockholm, Sweden, on 5 June, heads to London on 7 June and wraps up in Dublin, Ireland on 11 June. At the 9 June NACS Insight International Convenience Retail Awards ceremony, honorees will also be announced in the categories of International Convenience Retailer of the Year Award, European Convenience Retail Sustainability Award and European Technology Implementation Retailer of the Year.

Old Raglan Services reopen as EG Monmouth

It’s good news for Monmouth today, as Euro Garages open the newly built service station on the north side of the A40 in Monmouthshire.

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Formerly known as Raglan Services, the site has been closed since 2012. Euro Garages were given permission to demolish and rebuild the services, promising Spar, Greggs, Subway and Starbucks facilities in addition to the petrol station.

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Work is still ongoing on the south side, so keep an eye on our twitter @EurogaragesLtd for more updates as we have them.

Euro Garages opens 100th Subway

The beginning of November saw the opening of Euro Garages’ 100th Subway site, located in the Holtspur service station in Beaconsfield, Buckinghamshire, more than a year ahead of schedule.

Operations manager, Ahmed Kazi, has said that achieving the milestone was testament to the company’s investment, people, capital and systems, stating that the Euro Garages estate will grow even further in 2016, with a target of 175 concessions open by the end of the year.

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Area development manager for Subway in the UK and Ireland, Greg Madigan, sees the partnership as going from “strength to strength” and believes that the forecourt and convenience sector represents a significant area of growth for Subway.

This news comes towards the end of a landmark year for Euro Garages, during which they have acquired 172 new petrol station forecourts, including 68 Shell properties and a further 104 Esso sites, expanding the company’s reach to the South East, as well as securing TDR Capital’s backing in a deal that valued the business at £1.3bn.

Euro Garages and TDR Capital named Deal of the Month

TDR Capital’s investment into Euro Garages, taking a minority stake with a £1.3bn deal, has been named as North West Business Insider’s Deal of the Month for October 2015.

“Euro Garages has developed into a major UK forecourt operator since 2001 and the £1.3bn valuation reflects its growing national presence,” says David Casey, digital news editor at Insider. “Securing a high-profile private equity investment should help to drive the business to the next level so it is a worthy winner of our Deal of the Month award for October 2015.”

Euro Garages Co-CEO Mohsin Issa and Zuber Issa, will remain majority shareholder — said about the deal, “TDR understand our business and have significant experience in our sector so are the perfect investment partner as we continue to develop our proposition. This is an exciting new phase for the business and we look forward to working with TDR to grow our business further in the UK and internationally.”

Daniel Hall, partner at Eversheds Law firm, who advised Euro Garages on the acquisition, has described the deal as underlining “one of Britain’s biggest successes in recent years, and has propelled Euro Garages to become one of Europe’s leading fuel retailers.”

After a year of growth Sales Climb 50%

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Euro Garages has grown sales by nearly 50% by further expanding our UK footprint and luring new customers with brand partnerships and retail experience.

  • Turnover rises 47% to £646million, with profit (EBITDA) up 67%
  • Like-for-like growth in both fuel and non-fuel sales, driven by convenience
  • Integration of 48 additional sites in the Midlands and East of England into 200-strong estate
  • Plans for further investment and continued national expansion, particularly in the south

In results for the year to July 31 2014, turnover climbed to £646million, a rise of 47% compared with 2013 (£439million).

During the year, Euro Garages also increased profit, with EBITDA rising by 67% to £30million.

Sales were boosted by the acquisition of 48 existing petrol forecourt sites in the Midlands and East of England, which was completed in May with the help of a new finance package agreed with a syndicate of backers. The deal means Euro Garages now has almost 200 petrol forecourts across the UK.

Euro Garages enjoyed impressive organic growth during the year, helped by rises in like-for-like fuel and non-fuel sales, including double-digit like-for-like growth at Starbucks and Subway outlets. Euro Garages plans to be operating 100 of each outlet by the end of 2016.

During the year, the company also added 12 Greggs stores to its forecourts. There are plans to have 30 of the fresh bakery outlets across the Euro Garages estate by the end of this year.

In the current financial year, Euro Garages forecasts revenue of more than £850million, boosted by the impact of new sites and underlying like-for-like growth in fuel and non-fuel sales. The company expects EBITDA to approach £50million.

Zuber Issa, Co-CEO Euro Garages, said: “This has been another milestone year for us. The latest acquisition of sites has significantly grown our national presence and even more people now have the chance to enjoy and access our forecourt experience.

“At the same time, we are seeing customers at our existing sites continuing to take advantage of our best-in-class fuel, convenience retail, food and drink offers. This approach remains at the heart of our business model. Britons are increasingly switching to convenience retailing and I believe we are perfectly positioned to continue capitalising on this consumer shift to shopping for fewer items but more frequently.”

Headcount at Euro Garages has increased from 1,800 to more than 3,200 over the past year, with 40% of the workforce aged 16 to 24. In the next 12 months, the company expects to create a further 2,500 new jobs through a combination of acquiring sites and opening ‘new to market’ forecourts, with a focus on the South of England.

Co-CEO Mohsin Issa added: “Our continued success has been underpinned by the robust brand offer we provide to our customers, ongoing capital investment in our sites and our commitment to expanding our national footprint to consistently outperform the market in challenging retail trading conditions.

“However, we are not resting on our laurels. With the backing of our supportive lenders and brand partners, we are pushing ahead with plans to increase our national coverage, particularly in the South of England. This means bringing our brand partnerships to even more customers, investing in our sites and creating more jobs.”

Euro Garages was founded in 2001 by brothers Mohsin and Zuber Issa with the acquisition of a single petrol filling station in Bury. Since then it has opened almost 200 more sites and agreed partnerships with brands including Starbucks, Subway, Burger King, Greggs and SPAR as well as oil majors Esso, BP and Shell.