Forecourt retailer Applegreen plans to invest €1bn over the next five years to expand its operations in Ireland, the US and the UK and grow its electric vehicle charging network.

In Ireland, Applegreen will continue the roll out of its Braeburn coffee order and grow its number of M&S Food concessions from 19 to 60.

The group will also expand its network of motorway and roadside service areas in Ireland and the UK.

“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 Joe Barrett, co-founder and CEO of Applegreen.

“Applegreen plans to invest €1bn in the business over the next five years as we redevelop our sites and grow our operations, both organically and through acquisitions.

"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.”

In the US, Applegreen 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,” said Barrett.

“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.”

Applegreen operates Burger King, Shake Shack, Chick-fil-A, Popeyes, Starbucks, Dunkin, Panera Bread and Panda Express brands and now has 700 food outlets across its estate, including 300 in the US.

Barrett said fuel now accounts for less than 20% of Applegreen's gross profit.

“In the US, we are focussing on larger sites, where food is at the heart of the offer.

"We are fortunate in that we have a unique position in the US market, as we are a highly experienced operator of food businesses, convenience stores, EV charging infrastructure, and traditional gas filing stations.

"Most other operators in the States cannot offer that ‘one-stop shop’ for road authorities," he added.

Earlier this year, Applegreen opened a new €10m service area at Clondrinagh in Limerick and upgraded its Midway Service Area in Portlaoise with a €3m investment.

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 will invest €66m in its Welcome Break business -- which operates 58 sites, including 34 motorway service areas and 31 hotels -- specifically in a new motorway services areas with six food outlets, a WHSmith and a Waitrose as well as fuel and EV charging options and a dedicated HGV driver facility on the M1 in Rotherham.

“Rotherham will open in the first quarter of next year, and construction has also started on a new roadside services area at Hickling in Nottinghamshire,” Barrett said.

“A new services area that opened on the A1 at Newark in Nottinghamshire 18 months ago is trading very well.

"These new developments are raising the bar for UK roadside services, and we have a strong pipeline of new motorway and major road service area sites.”

Welcome Break will also open outlets of Taco Bell at a number of its locations after adding the the restaurant chain as a food brand partner.

Applegreen will invest more than €85m to expand its EV charging network over the next five years. The company currently has over 1,200 owned and operated fast chargers at more than 130 of its locations.

Gross profit increased 9% to €972m last year, according to newly filed accounts for Applegreen parent Causeway Consortium Holdings. EBITDA rose 7% to €271m.

"Applegreen had a very positive performance in 2023 across all three of its markets,” Barrett said.

“As we continue to bring new sites on board, upgrade some of our existing locations, and expand our EV charging network we expect significant growth in the business in Ireland, the UK and the United States.”

Revenue from Applegreen’s food operations and convenience store business increased by 11% during the year.

Total turnover at Applegreen, which employs 17,000 people at its 592 sites in Ireland, the UK and the United States, declined by almost 6% to €3.9bn due to a fall in fuel prices.

The Irish business generated sales of almost €1.1bn last year, while Applegreen’s UK turnover was just over €2bn, and US sales were worth €800m.

Applegreen recorded a loss before tax of €83m, marginally lower than in 2022.

“We are currently in growth mode and are investing for the long-term strategic success of the business,” Barrett said.

“We have delivered 40 brand new or refurbished travel plazas over the past two years that represent a step change in the services that we are offering for consumers.

“In every location, after we re-open, we are seeing a significant uplift in trading compared to the performance prior to the investment.”

Applegreen has invested €1bn in the US in the decade since it bought its first two sites in New York’s Long Island in 2014 and is now one of the largest Irish employers in the US.

Photo: (l-r) Joe Barrett and founder Bob Etchingham. Pic: Supplied)