How To Open A Petrol Station Franchise In South Africa
- Steers – R1.7 million (542 restaurants) One of the cheapest franchise options on the list, Steers franchisees can pay between R1.7 million – R2.5 million depending on the size and type of restaurants they want. ...
- Debonairs – R800,000 (473 restaurants) ...
- McDonald’s – R4 million (241 restaurants) ...
How many petrol stations are there in South Africa?
The report noted that there are approximately 4,600 service stations (owned or controlled by oil companies and operated by fuel retailers) that pump on average 300,000 litres of fuel per month. According to Absa there are currently three different ways to open a petrol station in the country:
How much does a Sasol petrol station franchise cost?
The company is currently selling a franchise in Gauteng, with convenience store a monthly fuel average of 315,000 litres, for R10 million. A smaller Sasol franchise in Port Elizabeth, that sees an average of 203,300 litres per month, is currently on the market for just under R6 million.
How much does it cost to sell petrol in South Africa?
South Africa burns a lot of petrol – and selling it is an often lucrative business. But be warned, it is not for everyone, there are plenty of red tapes, and it isn’t cheap. The cheapest stations cost around R1 million, but if you want a popular location and all the trimmings, you can pay 20 times this.
Which oil companies are available as franchises in South Africa?
Most major oil companies operate their customer-facing operations as franchises in South Africa. The likes of Engen, Shell, Caltex, BP, or Sasol are open to new franchise locations, but with licensing and locations hard to come by, your best option may be to purchase an existing franchise operation.
How much does it cost to open a petrol station in South Africa?
A local petrol station business set up costs range in the region of R15 million and R100 million depending on the size and site. Further to this the operation payable to the oil company ranges between R2. 5 million and R15 million, depending on the cost to develop, projected volumes and profitability.
Is owning a petrol station in South Africa profitable?
South Africa burns a lot of petrol – and selling it is an often lucrative business. But be warned, it is not for everyone, there's plenty of red tape, and it isn't cheap. The cheapest stations cost around R1 million, but if you want a popular location and all the trimmings, you can pay 20 times this.
How much does an Engen franchise cost?
R2.6 millionEngen is currently selling a relatively small franchise in Gauteng for R2. 6 million, excluding stock and assets. It has no convenience store, and pumps an average of 267,000 litres of fuel per month.
How much is a Sasol garage franchise?
Franchise fee is R2. 5M. Working Capital is R1. 5M Fuel Guarantee is R 850 000.00 ( Garage Sure or Refine – subscription ) Total Amount Required – R4M.
How much do petrol station owners make?
Q: Is it profitable to own a petrol pump? Ans: As we all know, a petrol station is open 24 hours a day, seven days a week, and you may easily make a profit of 2 to 2.5 rupees per litre on petrol and ₹1.80 to 2.40 rupees per litre on diesel. The profit ranges from ₹1 to 2 lakh rupees per month.
How do petrol station owners make money?
Petrol stations don't make much money Retailers try to make about 4-5p per litre, but out of that they have to pay staff, business rates and corporation tax. Fuel stations often depend heavily on sales from the shop – a retailer can make more on selling a Costa coffee than on 40 litres of fuel. '
How much is a Caltex franchise?
Franchise Details: Facilities and Equipment Cost : P5 M – P7 Million. Operating Capital : P2 M – P3 M. Retailer Agreement Term : 5 years, renewable.
How much does spar franchise cost?
Start-up-costs for buying an exisiting store (40% unencumbered ) : KWIKSPAR from R5 million. SPAR from R8 million. SUPERSPAR from R10 million.
How do I buy a petrol station in South Africa?
Requirements to Buy a Petrol Station ExampleSelling Price of business R 5 000 000.00 net profit +- R 120,000 pm.Plus: Stock R 600 000.00.Plus Working Capital R 500 000.00.Other: e.g. Training, Licence application, etc. ... Oil company fuel guarantee R800,000.TOTAL Funding Requirement R 7 000 000.00.More items...
What is the most profitable franchise in South Africa?
Coming in at number one, KFC is the most popular franchise in South Africa. The brand has been established globally and loved by millions of South Africans.
How much money is earned from a petrol pump in one month?
Q. How much does a petrol pump owner earn? Ans- A petrol pump owner in India can earn up to Rs 3,58,000 every month. If your commission comes across as 3 Rupees per litre then your monthly gross earning of 5,70,000 Rupees.
How much is KFC franchise in South Africa?
It is hard to determine exactly how much KFC charges to open a new franchise; however, the number has been rumoured to be anywhere between five and six million.
What are the most profitable businesses in South Africa?
Garments manufacturing business. Garments are essential for human beings and therefore owning garments manufacturing business can be highly profitable in South Africa. ... Hotels and restaurants. ... Bakery. ... Hair manufacturing. ... Mining in South Africa. ... Agribusiness. ... IT and Telecom. ... Real estate.More items...•
How much profit do petrol stations make on fuel?
There is a good reason why nearly all filling stations are shops as well; profit margins on petrol are, according to the industry, around 2%, so they make most of their profits from overpriced sandwiches and drinks.
How do I buy a petrol station in South Africa?
Requirements to Buy a Petrol Station ExampleSelling Price of business R 5 000 000.00 net profit +- R 120,000 pm.Plus: Stock R 600 000.00.Plus Working Capital R 500 000.00.Other: e.g. Training, Licence application, etc. ... Oil company fuel guarantee R800,000.TOTAL Funding Requirement R 7 000 000.00.More items...
How much does it cost to start a gas refill business in South Africa?
around R250 000Generally, a startup investment of around R250 000 is required to start a gas refill business. This depends on the LPG marketer, the storage capacity of the business, your equipment agreement, your working stock, cylinder deposits, and your business plan.
What is a franchise agreement?
A franchise or retail agreement manages this relationship. In some instances where the retailer owns the land and assets a supply agreement governs the relationship with the fuel supplier.
What is the most important consideration in fuel retailing?
“Probably the most important consideration is viability ,” said Noble. “Within South Africa, there are three ways to become involved in the fuel retail industry, with the first of these being investing in the development of a service station i.e. the physical building, land along with the associated assets (property investment).
Is fuel retail recession proof?
One of the more resilient industries capable of delivering healthy profits during times of slow national economic growth is the fuel retail industry, says James Noble, a business development manager at Absa Business Banking. “ The industry proved itself to be recession proof.
Petrol Station Franchise For Sale
Petrol station franchise for sale, a lot of people are looking at petrol stations for sale in South Africa. The industry seems to always be making money during good times or bad. No special knowledge is really needed. You need to be competent at running a business efficiently on a basic level.
Petrol Station Franchise For Sale
There are certain thing you need to look out for when considering opening up a petrol station. The first and most important is location location location. You can’t emphasize this enough.
How many fuel stations are there in South Africa?
Still, given our dependence on petrol and diesel, the fuel retail industry is surprisingly resilient. There are close to 5,000 service stations in South Africa, and according to the Department of Energy, and these have an annual turnover of approximately R220 billion.
How much petrol does South Africa use?
South Africa pumps more petrol than any other country on the continent – some 11.7 billion litres per year , according to the Department of Energy. Diesel isn't far behind.
Why open an independent fuel station?
Opening an independent fuel station. The independent route allows for greater freedom, and potentially greater profit, without the restrictions of a parent company. In theory, if you know what you’re doing and have enough cash, you can establish a filling station with your own brand.
Is petrol cheap in South Africa?
Be warned, it is not for everyone, and it isn't cheap. If petrol isn't your thing, see below for links to articles about opening up franchises in fast food, retail, and other sectors. South Africa pumps more petrol than any other country on the continent – some 11.7 billion litres per year, according to the Department of Energy.
Does South Africa burn petrol?
South Africa burns a lot of petrol – and selling it may be for you.
Do you need approval for a new petrol station?
New sites for petrol stations require approval from government, and you’ll need to jump through several legislative hoops as stipulated in the rather daunting Petroleum Products Act regarding petroleum products site and retail licences .
Is it safe to buy an oil company?
A far safer option for first-time owners is to buy an existing franchise from one of the major oil companies, even if it comes with some restrictions. You’ll be tapping into the expertise, workflow and brand of established players.
