Applegreen CEO, Joe Barrett: a 30-Year evolution and winning ‘Best Foodvenience’ 2024

In this episode of ‘The Future of Convenience’ podcast, hosts Dan Munford and Carolyn Schnare are joined by Joe Barrett, CEO at Applegreen.

With their long-standing friendship as a backdrop, Dan and Joe delve into topics such as innovation, teamwork, and the ever-evolving convenience industry. Joe also shares a sneak peek into Applegreen’s ambitious plans for the future. They kick off the conversation by celebrating the Applegreen team’s victory as the ‘Best Foodvenience Store in the World’ 2024 for their superb Rathcoole store in Ireland!

‘Best Foodvenience Store in the World’ 2024

Applegreen won the title of “Best Foodvenience Store in the World” in our competition that took place in the summer and fall of 2024. The winner was announced on November 7th. In many ways the win is a recognition of the company’s 30-year journey into foodservice.

Joe views the win as a celebration for the entire Applegreen team, including the internal design, coffee, development, and operations teams. It is seen as a recognition of their hard work and success.The company expresses immense pride in the achievement, with Joe Barrett stating it feels “a bit like being a parent” seeing what their team has accomplished.

As Joe relates in the podcast, it means a lot to the whole Irish business. In fact, Applegreen’s head of operations in Ireland began signing off all emails with “Best Foodvenience Store in the World”. The company is using the win to inspire its teams in the UK and US to compete and try to surpass their Irish colleagues!

The specific Applegreen store that won the award was the site in Rathcoole, run by store manager Karl Fitzgerald. Joe describes Karl as “a great leader who is motivated and focused on developing his team”.

Applegreen’s culture emphasizes teamwork and support, as the stores operate 24/7 and require a strong team to succeed. The company invests in in-house development and training programs for both retail and head office staff.

The win was seen as a culmination of Applegreen’s long history of development and expansion and a testament to the hard work and dedication of its employees. Applegreen plans to try to win the competition again next year.

US expansion and development

During the podcast Joe Barrett, Dan Munford and Carolyn Schnare go on to discuss the company’s strategy in the US, focusing on their transition from smaller gas stations to larger motorway locations.

Applegreen is concentrating on developing interstate travel plazas, with a strong emphasis on food-to-go. They currently do not have fuel and convenience store operations at these locations in the US, but they are looking to expand in that direction in the future.

The company is shifting its focus towards becoming a hospitality retailer, aiming to provide a break and entertainment for travelers with facilities such as bathrooms, dog walking areas, and EV charging. And Applegreen is partnering with well-known brands like Starbucks, Dunkin, Burger King, and Shake Shack, offering diverse food options in their locations. They aim to be the best-in-class partner, striving for top performance in monthly audits by these brands.

There is heavy investment in electric vehicle charging infrastructure across their motorway locations, recognizing the growing adoption of EVs. They are focused on providing reliable charging options for customers, and they are also working to get better access to power to make this possible.

Applegreen began in the US with smaller gas filling stations, then expanded to larger locations in Connecticut and New York before acquiring HMS Host’s Travel Plaza Operations. It’s an attractive market. The US has significantly higher volumes of traffic compared to Ireland and the UK. In fact, the volume of traffic in the US is about seven to nine times higher than in Ireland and two to three times higher than in the UK.

Applegreen is one of the top five employers in the US, employing approximately 7,000 people. Looking ahead to future expansion, the company has plans to invest about 400 million euros in the US as part of a larger billion euro investment across its three markets. They will be expanding into Pennsylvania, building four locations in Colorado set to open in 2026, and are also looking into tenders in New Hampshire and Massachusetts.

Joe Barrett emphasizes that the business is evolving beyond traditional convenience stores, focusing on the needs of travellers who require food, clean facilities, and a place to rest. The company’s aim is to delight customers in transit with passionate hospitality and brands they love.

Investment and future plans

Applegreen’s future plans and investments, as discussed in the podcast, involve significant expansion and development across its three key markets: the UK, the US, and Ireland. Here’s a summary of their forward-looking strategies:

Applegreen plans to invest a total of one billion euros across its three markets. This includes roughly 400 million euros in the UK, 400 million in the US, and 200 million in Ireland.

The focus in the UK is on developing large new motorway locations. Welcome Break just opened a major site in Rotherham in January, costing approximately 55 million euros. Additionally, four more sites are in development, along with other trunk road service areas.

In the US, Applegreen aims to expand into new states. This includes building four locations in Colorado, scheduled to open in 2026. They are also pursuing tenders in the Northeast, specifically in New Hampshire and Massachusetts. The company’s strategy in the US is focused on motorway sites. They are investing heavily in EV charging infrastructure at these locations. The company is shifting to a hospitality retailer model that includes facilities that cater to families and people traveling with pets and the need for entertainment and rest along a long journey.

In Ireland, Applegreen will continue to roll out its Braeburn coffee partnership and its partnerships with Marks and Spencer. They are also constructing a large motorway site north of Dublin in Dunlin, with more planned for the future.

The company will continue to develop its brand partnerships. These include partnerships with Starbucks, Dunkin, Burger King, Shake Shack, and others. They also partner with Waitrose in the UK and Marks & Spencer in Ireland for their store offerings.

Interestingly, Applegreen views itself as more of a hospitality retailer rather than just a convenience store operator. Their focus is on providing a comprehensive experience for travellers, with food, clean facilities, and a place to rest. This has evolved over the past 30 years from the company being primarily a dealer business with small shops and low fuel margins, to the company now focusing on coffee and food.

Across all three markets, the company is investing in EV charging, despite the challenges of obtaining power from the grid.

These investments are not aspirational but are based on visible developments and projects that are already underway. The company’s goal is to continue growing and evolving, building on its past successes. All looks well set up for an even more exciting future!

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