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Roadchef adds two more sites after First Motorways deal

16 August 2011 by
Roadchef adds two more sites after First Motorways deal

Motorway service station operator Roadchef has bought First Motorways, adding two more sites to its portfolio.

The deal sees Roadchef take on the Magor services at junction 23A of the M4, and the Symonds Yat trunk road site on the A40.

The company said it would create 50 jobs and invest £1m at the Magor service area, as it introduces a McDonald's and a Costa Coffee.

Roadchef, which operates sites at 19 locations, will have a stronger presence on the M4 after the deal, where it currently has only one facility - Pont Abraham.

Simon Turl, chief executive of Roadchef, said: "The Magor MSA will fill an important gap in Roadchef's network of service areas. The site, that has operated for 19 years, is in an excellent location and is extremely popular with motorists as it's the first MSA across the Severn Bridges. It also marks the gateway to South Wales. Most importantly, we inherit a great team and look forward to working with them to build and develop the business."

Roadchef, which was struggling three years ago until a new management team and funded investment program were introduced, now has an annual turnover of £200m.

The firm is in the middle of a £12 million investment programme to upgrade the catering facilities at 10 key sites over a two-year period. This followed a successful pilot at its flagship site at Strensham South Services on the M5 which saw sales increase dramatically with the introduction of McDonald's, Costa Coffee and a number of upgraded own-brand offerings.

Roadchef in major catering shake-up >>

McDonald's like-for-like sales up 4.9% in Europe >>

RoadChef to operate 15 new Days Inn hotels >>

By Neil Gerrard

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