Esso Petrol Franchise in the UK: Could it Fuel Your Ambition?

20/11/2018 18:00 | Start a business

esso petrol station franchise

Esso is the trading name for ExxonMobil and its related companies. The company began as Standard Oil of New Jersey following the collapse of Standard Oil. In 1934, the brand name was chosen as its the phonetic pronunciation of the initials 'S' and 'O' in the name Standard Oil. Around the world, the most popular brand names of ExxonMobil are Esso and Mobil.

The history of Esso in the UK

Esso has strong roots in the UK, which date back to 1888. Esso began life as the Anglo American Oil Company, which opened its head office in London 130 year ago. In 1911, when the US Supreme Court ordered the closure of Standard Oil, one of the 33 spin-off companies, Standard Oil of New Jersey, acquired Anglo American.

Over the years, Esso has secured its presence within the UK as the leading petrol retailer. Not only were Esso the first petrol station to sell unleaded but also led the industry in making ultra-low sulphur diesel and petrol which is now available nationwide.

A key factor in Essos prominence as a petrol retailer in the UK was the announcement of a partnership with Tesco in August 1988. The brand giants worked together to open chains of Tesco Express stores located within Esso forecourts. There are now around 180 outlets up and down the country, which has created more than 4,000 jobs.

Today, Esso serve around 800,000 customers every day, 365 days of the year, through a retail network of more than 1,100 Esso-branded service stations.

But can you invest in an Esso petrol station franchise in the UK?

Esso petrol station franchise UK

Unfortunately, there isnt currently an option to invest in an Esso petrol station franchise in the UK. Instead, Esso has chosen to adopt a branded wholesale model.

Esso decided to overhaul its retail business and concentrate their efforts on supplying high-quality fuels to independent service station owners operating under the Esso brand. The programme of transferring its operations at 400 sites to independent specialists while maintaining its brand presence was completed in 2015.

Essos new business model enabled purchasers a rare opportunity to acquire well-established sites with a strong retail foothold in their respective areas. It was good for business too as it combined Essos excellence in producing and promoting high-quality fuels, with the increasingly sophisticated retail knowledge of independent petrol station operators, such as Rontec.

More about Rontec

As one of the leaders in the UK forecourt industry, Rontec can get you as close to owning an Esso petrol station franchise as you can get. As an ambitious independent fuel retailer, Rontec offer prospective franchisees the chance own and operate an Esso branded forecourt and shop.

Rontec operates more than 240 forecourts throughout England and Wales and is looking for business-minded investors who are experienced in either the convenience store or forecourt sector to join the brand. To be a successful Rontec franchisee, youll need to be hard-working with an eye for detail to meet the exacting standards set for customer service.

From a financial perspective, youll be required to invest in your franchise, both regarding a franchise fee and your sites shop stock. The investment level is dependent on the turnover of your chosen store but can range from £30,000 to £60,000.

In return for your investment, youll receive training to ensure that you have all the necessary know-how to make your petrol station a success. Once youre up and running, youll continue to receive support from your Area Manager who will visit you every week to answer any questions that you have.

So, an Esso petrol station franchise could be yours, just via a slightly different route.

Are there other petrol station franchise opportunities?

You may not be able to own and operate a petrol station, but you can become a BP franchisee and open a convenience store located on BP forecourts.

This globally recognised brand was first introduced to the UK in 2000 and now has over 300 locations, and a further 200 in the US; and is currently focused on continuing this growth.

To aid this expansion, BP is looking for prospective franchisees with a passion for quality and service. So, if youre business minded, are good with numbers, have sales experience, and have a desire to succeed, then this could be the franchise for you.

Of course, a brand with the reputation and size of BP doesnt come cheap. The total investment for this franchise opportunity is £2,000,000, with an estimated liquid capital requirement of approximately £800,000. However, the potential for profit is enormous, thanks to the ever-changing demand from consumers.

Gone are the days when a petrol station was merely a place to fill up your car and buy a newspaper. Theyre now places where people can do so much more, and the convenience retail market is benefiting from the growing popularity of forecourt shopping massively.

According to a report by the Association of Convenience Stores (ACS), petrol forecourts are experiencing growth in many ways. Jobs are on the rise, and the value of sales is on the increase too. In fact, in 2017 forecourt retailers generated over £4 billion in sales demonstrating their importance to both the UK economy and the communities which they serve.

With people living increasingly busy lives, consumers are demanding more from their local petrol station. The growth in convenience culture has meant that drivers are willing to do more shopping on-the-go and this has given retailers the chance to create a new kind of forecourt.

And with the majority of the 8,500 forecourts in the UK boasting a convenience store, it seems that the petrol pumps almost take second place to the shops. This makes it a great time to consider investing in a BP franchise.

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