Atlas Retailers has opened Stoneferry Service Station, following a £1m development of the former used car showroom at Hull, which the business is operating under a 25-year lease.
The company’s founder Sajikumar Muthiah – also known as Saji – now has 17 forecourts trading, with another in the pipeline. He is funding an ambitious expansion programme to have 100 petrol stations in five years by focusing on leased sites which need investment, with an option to buy later.
This latest addition to his network, which is his biggest and he expects will become his flagship location, was previously owned by Sterling Petroleum. He purchased the site in a bundle of seven from his former business partner Nakendram (Theepan) Piratheepan.
It took nearly three years of planning obstacles before he could start the 12 weeks of work, which in the first phase included installing two 75,000 litre tanks, four Gilbarco pumps, two HGV pumps and a high-speed Adblue pump, as well as turning a former office space into a shop.
In phase two, in the next four weeks, he will introduce a SmartCare WashTec rollover car wash, and two Air-serv jet washes. He will also install his first dog wash, from Electrajet, as well as a mat wash from the supplier.
Muthiah is also introducing a laundry machine from Electrajet with two washers and a drier; as well as a three-in-one vacuum machine; and a Royal Mail parcel locker.
He was initially interested in the 0.3 acre site because its large size provided enough space to create a hub. EV charging will follow. Jet, its fuel brand, is helping him with plans to introduce two electric charging bays; a process he predicts will take at least a year.
He also saw potential with the forecourt being on the busy Stoneferry Road in an industrial area. It benefits from custom from local workers, nearby households, as well as tourists travelling to the coast.
Within weeks of opening, the 24-hour site has hit 3.5mlpa in fuel volume, and the 1,000sq ft Londis store on site has been turning over £10,000 to £12,000 a week. Muthiah is optimistic that within a year this will increase to a fuel volume of at least 4mlpa, and a shop turnover of £15,000 to £20,000.
Muthiah opted for the Londis fascia, with Smügo, the made-as-you-wait frozen fruit smoothie unit, Costa coffee, Country Choice Bake & Bite, and Rollover food to go. He also works closely with Fifo for car accessories.
Most of his sites – nine – are managed directly, which is his preferred option. But as he grows his network he expects to increasingly implement the commission operator model.
He is currently applying for planning permission for a site at Wakefield, as well as for 24-hour opening in Poole in Dorset.
Muthiah expects to break even on his Stoneferry Service Station investment within three or four years. He says that his model of investing in undeveloped locations enables him to grow in a market where there is a great demand for prime sites.
“We can’t fight with bigger companies who have multi millions in the bank,” he says. “We need to grow in a slightly different way, where we sign a lease and have control and then look to buy the business later.”
