Tasty Gallos Plans Fast-Food Expansion into BP Petrol Stations in South Africa

South African chicken franchise Tasty Gallos plans to open its first quick-service restaurant at a BP petrol station forecourt by the second quarter of 2027, BusinessTech reported. The Johannesburg-based chain aims to capitalize on an industry shift toward convenience-driven forecourt experiences as fuel retailers seek alternative revenue streams.

Tasty Gallos Targets BP Forecourts for 2027 Expansion

The planned rollout depends on finalizing agreements with participating dealers. Tasty Gallos founder and chief executive Muhammed Gutta stated that the forecourt partnership is designed to attract motorists who pass service stations daily without needing to refuel. A customer may pass the same station every day without needing to fill up. A restaurant gives the dealer a chance to bring that customer onto the site between fuel purchases and build more regular trade, Gutta said, as reported by BusinessTech.

The franchise serves grilled and fried chicken, wraps, shawarmas, and local dishes like pap and sauce. Founded in March 2020 during the Covid-19 pandemic, Tasty Gallos operates more than a dozen corporate-owned and franchise locations, including sites at Eastgate, Greenstone, and The Glen shopping centres in Johannesburg, Mthatha Plaza in the Eastern Cape, and the University of the Witwatersrand. The company opened a flagship restaurant at The Glen Shopping Centre in June 2025.

Fuel Retail Margins Drive Convenience Store Shift

The restaurant partnership arrives as fuel retailers face mounting financial pressure to diversify beyond traditional petrol and diesel sales. Motorists in South Africa absorbed another fuel price increase this month, with petrol and diesel rising by more than R3 per litre, bringing total increases to more than R9 per litre compared to the beginning of the year. BusinessTech noted that while higher pump prices increase consumer costs, they do not guarantee better margins for station operators.

Data from the Fuel Retailers’ Association published in June showed that fuel volumes declined by 6.3% over the preceding year, while fuel sales dropped by 4.2% in 2024. Historically, fuel sales generated about 90% of a service station’s income. The association projects that share could plummet to as little as 20% as operators pivot toward non-fuel retail revenue.

Additional data provided by Tasty Gallos indicates that approximately 68% of consumers purchase fast food at petrol stations, and 75% expect to maintain or increase their visits. A customer stopping for a meal may add drinks, snacks, or other essentials from the adjoining shop. Meeting more of those needs under one roof creates more opportunities to earn from each customer visit, Gutta explained to BusinessTech.

Refining Capacity Pressures Contrast Forecourt Diversification

While forecourt operators diversify into fast food to offset declining fuel sales, South Africa faces broader structural challenges in its petroleum sector. Engineering News reported that Central Energy Fund chairperson Ayanda Noah warned at an industry engagement that the country’s reliance on imported petroleum products poses a strategic risk to economic resilience and energy security. Imported fuels accounted for approximately 61% of domestic demand over the past decade, up from 22% in 2019, exposing the economy to geopolitical instability and exchange rate volatility.

Tasty Gallos is currently engaging with BP dealers and other fuel station operators to identify suitable sites and franchise partners. Gutta emphasized that the company seeks operators willing to take an active management role rather than treating the restaurants as passive additions. Whether sufficient dealers will commit to finalize the agreements ahead of the provisional 2027 opening target remains to be seen.