Irish forecourt operator Applegreen is to invest €1 billion over the next five years in a significant expansion to its business across the three markets in which is operates.
The capital expenditure programme will include a big expansion in Ireland and the United States, as well as investments in its Welcome Break business in Britain, and in its growing electric vehicle (EV) charging network.
“This is a very significant expansion programme for Applegreen as we continue to invest to expand our business in Ireland, the United States and the UK,” said Applegreen co-founder and group chief executive, Joe Barrett, on Monday.
He said the money would be used to redevelop the group’s sites and grow its operations, both organically and through acquisition.
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“Our current operations provide a very strong foundation on which to build the next phase of growth for Applegreen in each of its three markets,” he said.
“In Ireland, we will be continuing the roll out of our very successful Braeburn coffee offer and our partnership with M&S Food,” said Mr Barrett. “We currently operate M&S at 19 of our locations in Ireland and we intend to grow that number to over 60 sites.
“We also plan to expand our network of motorway and roadside service areas in Ireland and Britain, and to grow our EV charging networks in both countries.”
The company said it intends to invest more than €85 million over the next five years to expand its EV network. It currently has more than 1,200 fast chargers – both company and third party owned – at more than 130 of its locations on many of the busiest motorways and roads in Ireland, Britain and the United States.
Applegreen is also due to open a new motorway services area off the M3 in Dunshaughlin, Co Meath, next year with an EV charging hub, a fuel forecourt, and four separate food options.
In the UK, Applegreen is growing its Welcome Break business, which operates 58 sites including 34 motorway service areas and 31 hotels.
It is currently investing €66 million in a new Welcome Break motorway services area on the M1 in Rotherham, which will have six food outlets, a WHSmith and a Waitrose convenience store, as well as fuel and EV charging options and a dedicated HGV driver facility.
In the US, Applegreen currently operates more than 100 motorway service areas and the company believes there is “significant scope” to expand this part of its overall business. “Our focus is on growing our travel plaza business in the US, particularly on the east coast,” Mr Barrett said.
“We currently have 106 travel plazas in states such as New York, New Jersey, Connecticut, Maine, Pennsylvania, Delaware, Ohio and Indiana and we are very keen to expand our presence there, building upon our established and trusted relationships with the roads authorities.”
Food is now the main element of Applegreen’s business in the US, where it operates restaurant and café brands such as Burger King, Shake Shack, Chick-fil-A, Popeyes, Starbucks, Dunkin, Panera Bread and Panda Express.
“Applegreen is a hospitality business, as we have over 700 food outlets across our estate, including 300 in the United States. Traditional fuel now accounts for less than 20 per cent of our gross profit,” Mr Barrett added.
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