EG Group, an international fuel, foodservice, grocery and merchandise operator, has been able to gain a unique perspective on convenience retail, especially during the COVID-19 pandemic.

“COVID-19 was a curve ball that threw everyone,” said Ilyas Munshi, group commercial director, EG Group. “Rising to meet the current business environment is not without its challenges.”

EG Group, headquartered in Blackburn, U.K., has kept its ear to the ground across its different markets, ensuring local teams and management are connected to government departments and public authorities and that each business follows respective guidance and protocols. Regular “one-to-ones” with country teams and weekly performance reviews with all country leads have been undertaken in order to stay on top of management protocols, share good practices and understand the needs of each market.

“The leadership sessions are opportunities for respective country leaders to absorb what’s happening, even if there are things that have not gone well,” Munshi says.

One example Munshi mentions are government-funded programs that assist citizens if they have lost their jobs or are furloughed.

“Furlough programs, while extremely helpful in safeguarding employment, have created an environment where pockets of employees may see financial advantage in being at home rather than at work. The U.K.’s furlough job retention plan covers 80% of workers’ wages, for example, but those employees cannot do any work for an employer,” he says.

A huge push is needed to get people back into work, and governments will need to lead the way by making sure guidance is pitched at the right tone, according to Munshi.

The business has also focused on how it makes employees feel safe at work. Across the business, there has been a significant investment in personal protective equipment (PPE), and social distancing guidelines have contributed to giving employees peace of mind. Regular communication from the senior leadership team to all colleagues globally has been ramped up as well.

“We’ve been communicating important key messages at these moments,” Munshi says. “People are waking up each day and need to feel informed and motivated. Regular communication is critical.”

Falling oil prices along with lower fuel volumes have been worrying. However, EG Group has been able to ride the storm better than other operators as lower foot traffic has been augmented by a solid grocery and merchandise retail offer, which has proved attractive to consumers. “We have witnessed lower foot traffic across markets; however, fuel margins across our sector have held stable, and that has allowed retailers to keep going,” Munshi says.

In convenience retail meanwhile, average basket spends on grocery and merchandise have increased significantly as consumers, frustrated by lines and out of stocks at supermarkets, find the convenience retail channel a more viable option.

Munshi reports that one customer is now spending on average as much as what two to three customers spent on grocery and merchandise prior to COVID-19.

Foodservice in the Time of COVID-19

For the U.K. market, March 23 was a monumental day, as EG Group’s foodservice brand partners decided to switch off the lights and networks. Partner businesses followed suit, furloughing staff and closing the respective foodservice networks.

Now, as the EG Group enters into a reopening phase, it is working with brand partners like KFC, Starbucks, Subway and Burger King to manage their supply chains, as well as ensuring consumers have confidence that EG Group has their wellbeing in mind, and foodservice standards are strictly observed to mitigate COVID-19 concerns.

In such times of adversity, creativity flourishes and new growth opportunities are waiting to be realized.

Continental Europe is a different scenario, where EG Group’s proprietary foodservice offers, alongside fuel stations in the Netherlands and France, for example, stayed open. Menu options were reduced, and operating hours changed, but sites had to maintain health and safety standards around cleanliness and sanitation so that foodservice could continue.

Back in the U.K., EG Group has moved from offering delivery-only to drive-thrus, with long lines at newly reopened KFC and Starbucks being a testament to the latent demand from when people have been cooped up at home.

According to Munshi, the key is managing demand with a reduced menu and ensuring items don’t run out. Training has also been vital to ensure employees adhere to new rules and effectively communicate how customers access the product.

The big headline in foodservice in the U.S. was that the company did not see a dip in consumers coming to the store, but drive-thru channels jumped from 75% to 90-95% on average, according to Munshi. “And in markets where we stayed open, foodservice has not gone down. People are ordering more because they want an alternative to making food at home,” he adds.

Support for Emergency Services

Around the world, EG Group has stepped in to support first responders and health-care workers, not just by staying open but also by providing free coffee.

The company’s commitment to frontline health included a £350,000 (U.S. $461,632) donation to the National Health Service in the United Kingdom, which helped to secure warehouse space and products for a food hub operated by Blackburn with Darwen Borough Council. Elsewhere in the country, the company has supported a number of community initiatives.

In Australia prior to COVID-19, the country was facing huge environmental challenges due to the mass devastation from bushfires and severe flooding. The local EG Group team was already supporting local communities, and this support work has been extended during the pandemic, Munshi reports.

In the Netherlands, EG Group is working with Esso to give out 50m liters of free diesel to the Red Cross and food banks. Vehicles from these support organizations can fill up with diesel at Esso-branded fuel stations of EG Group in the Rotterdam, The Hague, Breda, Tilburg and Utrecht areas.

COVID-19 may prevent overseas travel for now, but it has not stopped the business’s ability to engage and get its key messages across.

“With over 50,000 employees across the world, it’s important to have a strong business to support employees and their families and the communities they live in as well. We are very proud of our local teams and number of lives we are touching on a daily basis,” Munshi states.

“In such times of adversity, creativity flourishes and new growth opportunities are waiting to be realized,” he adds. “A lot of people will be thinking of a different world and how they position themselves in that world, as individuals, businesses or brands. The adversity creates that environment.”

This article was reprinted with permission and modifications from Global C-Store Focus, the monthly newsletter from U.K.-based Insight; www.insightresearch.co.uk.