OFT investigates pricing at motorway service areas

The Office of Fair Trading (OFT) is looking into possible anti-competitive behaviour by operators of motorway service areas in the UK.

The OFT launched its investigation last year following complaints from the public that prices of food and drink were too high. If it finds evidence of possible anti-competitive practices, it has the power to refer the matter to the Competition Commission.

The commission would then produce its own report and can recommend action to the Department of Trade & Industry, which could include forcing the operators to sell some outlets.

The market is dominated by Granada, with 42 service stations, Welcome Break with 23, and RoadChef with 19.

Granada pointed out that food prices at its service stations reflected the massive investment needed to provide safe access roads, free parking, clean toilets, 24-hour, year-round opening and "a high level of quality and customer service".

Independent research had shown that two-thirds of people who visit Granada service areas use the free facilities but buy nothing.

"Apart from motorway service areas, no other food retailer in the country is legally obliged to offer this range of services and facilities on such a large scale," Granada said.

A RoadChef spokeswoman claimed the company was unaware of the OFT investigation. She pointed out that RoadChef was introducing high-street offers such as McDonald's and Costa Coffee to its service areas and charging normal high-street prices for them.