Paddaedward

Hi Guys,

Anyone know anything about the Gas Station business, my partner and I are exploring such as franchise venture as one is available for sale in CT (Northern Suburbs).

We are currently living in the UK but considering returning to my wifes native country SA.

Does anyone know if BBBEE will effect this type of business?

We have also been offered at Villa Management business on the Algarve, Portugal-so in a bit of a quandry!!

mentalist

You may wish to brush up on your pistol shooting before you arrive.

MartynK

Well, we don't call them gas stations in SA. They're petrol stations, just like the UK.

I don't have any specific knowledge of the retail fuel industry, but there are a few things to take into consideration. Fuel is getting expensive and many people are losing their appetite for big, powerful, vehicles in favour of economy models. The profit margin isn't great either, and the market is over traded in a lot of areas, with far too many petrol stations competing for the same trade. Have you checked how many other outlets there are in the same area as the franchise you've been offered?

I'm not sure that I'd be willing to commit my capital in SA right now. I'm South African, on my mother's side, and I do love this country but the cracks are getting bigger. There are very real concerns about the economy, rising cost of living, systemic state corruption, crime, inadequate law enforcement, deteriorating education and a few other things. I hope we can pull ourselves out of this, but I'm fairly pessimistic about it.

A business opportunity in Portugal would probably appeal to me more.

Tegwyn

That used to be part of my expertise in SA way back when. I recall that petrol station franchises were pretty much controlled by the Oil Companies. (I was with Shell) so you did not actually own the property, you leased the property and agreed to after market merchandise product sales and such as dictated by said oil company. I would be most surprised if any of that changed now. I was one of those reps most managers would hate to see coz I would be pouring over their books, and running around their forecourt ensuring they were doing as they were told...
I think your best info would come from contacting the south african corporate offices for the oil companies operating in SA. Even call their UK offices and they should be able to direct you to who you need to speak to in SA.