Petrol stations have yet again become the “cash flow” businesses that allow survival through recession. Bread and butter requirements dictate that we need fuel (and bread and butter too!!) The difficulty is that quite a few service stations changed hands during boom times at extraordinary prices for alternative use….that envisaged use no longer applies as the market requirement has changed and the need for cash flow to get through the down turn has brought the service station back into focus. The difficulty is the expectation on the part of owners in terms of lease value based on “boom time” capital value. This is not sustainable. Volumes are down and forecourt shops have lost their gloss as amazing cash cows…these are now “Bread & Butter” businesses and should be priced and viewed as such.
Profit margins have been hammered due to the “Tesco” effect in lowering fuel prices to uneconomic levels and the comsumer demand for lower food and grocery prices. The high value forecourt shop now has to compete and the resultant business needs special management, less staff involvement, to keep cost to a minimum and constant promotion to ensure customer “loyalty” or recurring returns as the case may be!!
This is not everyones game.
THe Forecourt Bureau have a number of clients seeking service stations and filling stations to operate on Lease or Lease-Purchase and also have a number of sites available for Lease-and/or Lease/Sale. Please contact us on 01-6797152 or E mail to : email@example.com for information or to advise if your site is available for sale or lease..