Zuber Issa: for EG’s Man on the Move ‘it’s time to get back to basics’

It’s been eight months since the billionaire Issa brothers announced they were splitting their business endeavours – and it was by no means a quiet break-up. It marked the end of an extraordinary 30-year family venture.

The pair are most renowned for the astonishing Euro Garages empire, which they built from scratch. From a single petrol station, acquired in Bury, Manchester in 2001, the brothers expanded first nationally, then into Europe – via a landmark deal with private equity firm TDR Capital – before the US and Australia, duly rebranding to EG Group in 2015 to reflect a business without limits.

“We changed the forecourt sector for the better,” Zuber says proudly. “We were the first operator to put Subway, Greggs, Starbucks on to the forecourts, and we set new standards for look, feel, and cleanliness – and the market followed us.”

EG Group’s forecourts became destinations: championing fresh products, food to go, valet services and more. And the brothers had a similar plan to transform Asda when they pulled off an audacious deal for the supermarket giant, which they bought from Walmart for £6.8bn in 2021, with backing from long-term partner TDR Capital.

“It was an opportunity that came in the right place at the right time, and our vision was to energise and change people’s perceptions – that a supermarket can be more than just grocery shopping,” says Zuber. “Instead of people going to Next or Boots, why couldn’t they just come here? Reshaping the George [clothing] brand and health & beauty category could provide the full experience.”

In the end, though, the dynamics – between shareholders with conflicting ideas and financial pressures on EG Group – meant his plans for Asda “didn’t play out”, he says. Some of that burden was eased when Asda bought EG Group’s UK & Ireland business in October 2023, to help pay down its estimated £7.6bn debt. All but 32 of its 356 forecourts were sold, plus other assets including Leon and 462 franchise agreements for Greggs, Burger King and Subway.

But after brother Mohsin returned to focus on leading EG Group’s international operations, Zuber set out on an entirely new path, amid rumours the pair were not on good terms. Zuber has denied any fracture, but he does admit he sometimes “misses having that brotherly comfort there. There’s always different strengths in a relationship. When you’re together, you’re much stronger.”

On the other hand, the sale of his 22.5% stake in Asda to TDR Capital is clearly a weight off his mind. “Asda is a beast of a machine,” he says. “Before, it was focused on supermarkets, now it’s had this foray into convenience and forecourts. It was the cheapest of the big grocers, but that title has gone to Aldi and Lidl. So what’s the identity for Asda? Where does it sit? What is the consumer thinking?”

Having said that, he detects the first signs of a “revival” at Asda. “I’ve got full confidence that [chairman] Allan Leighton and the team will figure things out and see growth again.”

Leighton has certainly made some bold moves to win back families, starting with 4,000 price cuts and a heavyweight marketing campaign fronted by Joe Wicks declaring that ‘Rollback is back’.

But Asda, of course, is no longer Zuber’s concern. He’s got a new forecourt empire to build.

With the proceeds from the Asda shares he sold to TDR Capital, Zuber first bought the 32 forecourts that EG Group retained after the £2bn sell-off to Asda, to create EG On The Move. “I’m looking at plots of land, opening new sites and acquiring others. That takes up 60% of my time,” says Zuber. “It’s about going back to the basics like we were doing before.”

To support the new venture, EG On The Move announced in July it had entered into a supply deal with The Co-op. It opened seven Co-op franchise convenience stores last summer across the UK, including in Sussex, Buckinghamshire and Glasgow, offering a broad range of fresh, grocery, and food to go.

These were new-to-industry sites (NTIs), which play a big role in his expansion strategy. “When you do NTIs it’s a longer play, but if you get them right, they work,” he says. “It’s a hard-earned journey.” EG On The Move has opened 14 NTIs so far, with 22 more to be added to the estate this year.

‘Applegreen gives us scale’

Acquisitions are also crucial to his plan, he says. Last month, EG On The Move completed the purchase of 98 petrol stations from Applegreen as it looked to boost its forecourt presence across the UK.

“Applegreen was a significant purchase because it gives us scale,” says Zuber. “But we’ve got a big job to do. We show belief in our stores by investing, doing extensions and rebuilding, so all the stores will have a refresh over the next 12 months.”

Currently, Applegreen petrol stations are supplied by Booker, but Zuber confirms these will transfer to Spar – which already supplies most of the EG On The Move estate.

“We’re big believers in the Spar brand,” says Zuber, who worked with the likes of AF Blakemore and James Hall for years at EG Group before the UK forecourts were divested to Asda. “We’ve gone on that journey together by challenging and learning from each other.” Their combined insights have led to a not-so-typical forecourt offer, which usually comprises a concise on-the-go range, complemented by a vast selection of fresh, chilled, ambient and household goods. “It’s in between a supermarket and impulse offer,” he explains.

“There might come a time when we borrow for another acquisition but now, when we can use our own money, we will use our own money”

Having different supply deals across the estate was by no means unintentional. “It’s not a one-shoe-fits-all approach,” he says. Indeed EG On The Move is starting a trial with Iceland in 10 stores as he aims to drive footfall with a robust frozen range, he reveals.

“We’re happy testing, because you can never be satisfied with what you’ve done or what you’re doing. If you are, you just go backwards,” he says. “We’ve had lots of partnerships, from Sainsbury’s and Asda to Spar and Co-op, so we’ve got plenty of learnings. It’s about aligning what you and the brands want.”

But it’s not all about the convenience offer. They’re going big on foodservice, too, with an offer to cater “to each part of the day”, he says. As well as Starbucks, Greggs and Subway, EG On The Move creates a point of difference through its master franchise arrangements with pizza parlour Sbarro, as well as Cinnabon, which offers sweet bakery treats. It also has concessions with fried chicken restaurant Popeyes, Indian street food café Chaiiwalla, and Asian sweets brand Ambala.

With on-site seating areas too, the thinking here is that such an offer is ideal for EV customers as they wait for their cars to charge. EG On The Move is also upping its appeal to fuel drivers with its own-brand fascias.

“The likes of Esso and Shell used to be footfall drivers, but not so much any more,” Zuber says. “When we bought Asda, we understood the fuel market a lot better. Can we do a better job? Yes we can, and that’s what we’ve started doing.

“EG is known across the UK now, it’s not like an unknown brand,” he adds. “The branding is eye-pleasing and inviting, too, and we’re already seeing a positive impact on fuel volume because of it. Any new sites we launch will be rebranded to EG On The Move.”

Read more:

• EG On The Move to trial new supply deal with Iceland

• EG Group’s profits lift ahead of expected IPO

• AF Blakemore sales drop 4.6% after losing major supply deal with EG Group to Asda

• EG Group refinances $3.5bn of loans to unlock investment cash

To top it off, Zuber reveals a loyalty scheme “is in the making”, which shoppers and motorists can use across convenience, foodservice and fuel. “We want a loyalty and rewards programme that works across all brands,” he says. “I think points is a bit outdated now, so it would work more like a cashback system.”

All in all, with 151 petrol forecourt locations, 209 foodservice concessions, and over 200 EV charging ports, Zuber is clearly pleased with growth to date. “We inherited a very good team, which was fortunate, so we’ve pressed the play button and kept going,” he says. “It’s a well-oiled machine.”

As an added bonus, the move has given him greater capacity to focus on his charitable endeavours. “The main purpose of me stepping back was to do charity work as well,” he says. “When you’re running a 10-country operation, you never have enough time to focus on that, but now I do.”

‘EG Group had a lot of debt for a long time’

Looking ahead, his vision is bold. “We want 400 to 500 sites across the UK in the next five years with a brand that people recognise.” And his vision stacks up financially, too, according to Zuber. Having bought the sites from EG Group and Applegreen with cash, the business is “debt-free”, he says.

“EG Group had a lot of debt for a long time. With EG On The Move, there might come a time when we borrow for another acquisition, and we have the debt facility to do that. But when we can use our own money, we will use our own money.”

Zuber’s outlook is optimistic – but one senses he’s also a little wistful to be going it alone this time. “A colleague might not tell you when you’re about to walk into a trap,” he says, jokingly. “But when there’s a second person there, who’s your brother and partner, they will tell you how it is. That openness and honesty we had for over 30 years, you miss that.”

But there are no regrets. “If I could do it over again, I would do it exactly the same.”