Motorway "Rip-off" stations...

uktim29

Well, what rent do the European MSA's have to pay their highways agency or equivalent. In the UK I know there was a very high cost of land/rent.

Do European ones have to stay open 24 hours? That will have a major effect on cost.

These are guess's off the top of my head for the moment. I think the highways agency costs probably pays a major part here. I know the chain I worked for had to pay a huge rent.

taxiphil wrote: »

In Europe, fast food outlets (like Burger King) on motorways don't charge more than their "high street" prices - unlike in Britain where they're about 50% more.

Not sure if it's the case now but at one point I know Welcome Breaks either BK's or KFC's were the same as high street cost in the UK (probably part of the franchise agreement).

I'll edit as I've spoken to an ex colleague who I've kept in touch with over the years. Over 50% of any UK MSA's total revenues goes to the government in one way or another. This makes UK MSA's have the highest running cost in Europe, they are more heavily taxed than any other European country.

Roland

I think that there is little doubt that the biggest rip-off in British retailing is the pricing of bottled water at motorway services. I have found that prices are more than double the price charged at supermarket petrol stations.

They know that many drivers and passengers will just pick up and buy, regardless of the cost. Their wholesale prices must be little different to the supermarkets, so there must be a huge margin on bottled water.

uktim29

See above post, it's not all about wholesale cost!

milliemonster

People will always use MSA's because they are convenient, despite how expensive they are, esp the amount of sales reps that are on the road who get an allowance for meals so they are happy to use the MSA'a as it doesn't cost them anything out of their own pocket

Takoda

Yeah some people will buy stuff from them but others just stop to use the payphone or toilet. The only things I will buy from service stations are items with a set price like magazines. High prices at places like that are a tax on people who are not shrewd enough to plan ahead by making sure you have enough fuel for your journey or packing sandwiches or a flask.

sweetnskint

the amount of custom they get -the prices should be better they would still make loads.it seems unfair.-wheres martin when you need him?

moonrakerz

There is one reason why MSA prices are so high - the Government.

The Government lay down all the facilities that have to be provided free - toilets, parking, picnic areas, and all the other pay-for facilities. These have to be provided 24 hrs a day 7 days a week, 365 days a year.
Government, after stipulating that shops must be provided, then limit what can or cannot be purchased in these shops. They have arcane rules about advertising - when Moto and M & S decided to get together in MSAs, they had to create a new company "Moto M & S", because only one company is allowed to put their name on the signposts on the Motorway - bizarre !

Then, of course, there are the HUGE fees the operators have to pay the Government for the Licence to operate the site.

The same applies to airports and railway stations - Starbucks etc aren't making a bomb - BAA and Railtrack are making a mint.

If everyone were to boycott the MSAs, prices wouldn't come down - they would close ! Then you would have to drive 20 miles off the motorway to find a Tesco - is that really what you want ?

deanos

I find the "Extra" services are very well priced, they usually have McDonalds, KFC, Pizza Hut and some have mini Somerfields in them and they are the same price as the high street, they also have a cafe but they are expensive.

http://www.extraservices.co.uk/index.html

mike_the_bike_2

moonrakerz wrote: »

If everyone were to boycott the MSAs, prices wouldn't come down - they would close ! Then you would have to drive 20 miles off the motorway to find a Tesco - is that really what you want ?

I don't agree the Operators would tell the Govt that the money they have to pay them was unrealistic and they were a) needed a reduction in costs or b) handing back the keys

To be honest I appreciate some people are forced to use them with "distress purchases" but I regard the rest of people as mugs for paying the prices they charge..Its your choice I use their loos and maybe buy a paper but thats it.

uktim29

mike_the_bike wrote: »

I don't agree the Operators would tell the Govt that the money they have to pay them was unrealistic and they were a) needed a reduction in costs or b) handing back the keys.

Thats going into a more political area though.

The topic is are they making more money than average for th type of industry they're in? The answer is no.