Tasty Gallos targets forecourts as fuel retailers rethink their business models

The partnership between Tasty Gallos and BP, which remains subject to agreements with participating BP locations, reflects a broader shift in the fuel retail sector.

Faced with declining fuel sales and pressure on margins, operators are aiming to transform their forecourts into convenient retail destinations where food, refreshments and daily essentials become as central to the customer proposition as petrol and diesel.

Research published by the country’s Fuel Retailers’ Association in June 2026 found that fuel volumes had declined by 6.3% over the preceding year, following a 4.2% fall in 2024.

Historically, fuel sales have accounted for the bulk of forecourt income, but the association believes this proportion could drop to as little as 20% of total revenue as forecourt operators refine alternative revenue streams.

Food sales, including those of on-site quick-service restaurants, has emerged as a strong opportunity. According to the association’s research, 68% of people surveyed said they buy fast food when at forecourts, and 75% expect to maintain or increase that pattern.

Going beyond shopping centres

For Tasty Gallos, the opportunity is to reach consumers beyond traditional shopping centre locations, while helping forecourt operators to generate income between refuelling visits.

“A customer may pass the same [fuel] 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,” founder and Chief Executive Muhammed Gutta is quoted as saying by local media.

He added that customers visiting a restaurant may also buy drinks, snacks and other essentials from the adjoining convenience store.

Engen’s new flagship concept

In another sign of changing times on South Africa’s fuel station forecourts, petroleum company Engen recently opened a new flagship site in Johannesburg built to what it calls a Platinum specification.

The site has six retail brands. These include Engen’s own convenience format called Quickshop, a supermarket operated by upmarket food retail chain Woolworths, a Krispy Kreme doughnut outlet, an Ola Magnum ice cream bar, and the Café 365 coffee brand.