New fast food franchise planning to take over petrol stations in South Africa
A new South African fast-food chain, Tasty Gallos, is planning to expand into BP petrol stations, taking advantage of the industry shift towards convenient, consumer-focused experiences beyond just selling fuel.
The Johannesburg-based chicken franchise is targeting the second quarter of 2027 for the opening of its first quick-service restaurant (QSR) at a BP forecourt, subject to the finalisation of agreements with participating dealers.
The partnership comes as fuel station operators increasingly look beyond petrol and diesel sales to sustain their businesses.
Although higher fuel prices increase motorists’ costs, they do not necessarily translate into better margins for petrol stations, which has created more pressure to generate revenue from convenience stores, restaurants, and other services.
Motorists have faced another increase in fuel prices this month, with petrol and diesel rising by more than R3 per litre.
South Africans are now paying more than R9 per litre extra compared with the beginning of the year.
Tasty Gallos founder and chief executive Muhammed Gutta said the restaurant partnership would allow participating petrol stations to generate additional income from customers who might otherwise have no reason to visit their forecourts.
“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,” he said.
The move comes amid broader changes in South Africa’s fuel retail sector. Research published by the Fuel Retailers’ Association in June found that fuel volumes had declined by 6.3% over the preceding year, while fuel sales fell by 4.2% in 2024.
Historically, fuel sales accounted for around 90% of a service station’s income.
However, the association projects that this could fall to as little as 20% as retailers diversify their businesses and non-fuel revenue becomes increasingly important.
About Tasty Gallos
Consumers are also using petrol stations for more than refuelling. According to figures from Tasty Gallos, about 68% of consumers buy fast food at fuel stations, while 75% expect to maintain or increase their visits.
A restaurant could therefore help attract customers between fuel purchases while encouraging additional spending at adjoining convenience stores.
“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 said.
Founded by Gutta in March 2020, Tasty Gallos entered the market during the Covid-19 pandemic, positioning itself as an affordable, Halaal-certified alternative in South Africa’s competitive fast-food industry.
The chain serves grilled and fried chicken, wraps, shawarmas and local dishes, including pap and sauce. It has since expanded to more than a dozen corporate-owned and franchise outlets nationwide.
Its locations include Eastgate, Greenstone, and The Glen shopping centres in Johannesburg, as well as Mthatha Plaza in the Eastern Cape. The company also recently opened an outlet at the University of the Witwatersrand.
Tasty Gallos opened a flagship restaurant at The Glen Shopping Centre in June 2025, introducing updated interiors, a salad bar, and upgraded facilities.
The company is now engaging with BP dealers and other fuel station operators to identify suitable sites and franchise partners for its planned forecourt expansion.
Gutta said the business was looking for operators willing to take an active role in running the restaurants rather than treating them as passive additions to their fuel businesses.
“We’re looking for operators who see the restaurant as a business worth building and are prepared to take an active role in its success,” he said.
The first BP restaurant remains provisionally scheduled for the second quarter of 2027, with its opening contingent on the conclusion of agreements with participating dealers.
More photos of Tasty Gallos
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