Swiss Gas Station Brand Rapidly Expanding in the Czech Republic
A franchise of Swiss company Avia International is aggressively growing its presence within the Czech Republic’s gas station market, targeting independent pumps. This expansion signifies a strategic move to capture market share in a competitive industry.
Avia’s Strategic Growth
Over two years, the brand added fifteen pumps. This growth rate surpasses nearly all other gas station networks in the country. The franchise is primarily targeting independent pump owners. The Swiss company is well-known in Germany and its home country.
The Czech Republic has a high concentration of gas stations, with a pump appearing every 13 to 14 kilometers. The total number of petrol stations hasn’t grown much, with only a handful of new highway locations. Many pumps are switching ownership or rebranding to new names, especially those owned by smaller entities.
โWe differentiate ourselves from large corporations with a decentralized business strategy.โ
โPetr Mรผhlfeld, Managing Director of Avia Czech Republic
Avia is a franchise of the Swiss Avia International. They have a presence in Europe with 3,100 pumps. Germany and France are home to most of these stations. The brand is also strong in Switzerland and is present in fifteen countries. The pumps offer advantages of lower prices.
Historical Context and Current Strategy
The number of single-pump owners in the Czech Republic is substantial. Not all such owners thrive under their brands. This presents opportunities for networks that can incorporate these independent stations into their operations. They get marketing and financial support, plus advantageous wholesale fuel prices.
The total number of pump owners in the Czech Republic exceeds 1,500. A significant number of these owners operate only one pump. This situation has roots in the 1990s. Privatization occurred in the time of gasoline devastation, and many thought gas stations would be a quick way to make money.
Avia now competes with major players like Orlen, MOL, and Shell. The brand first appeared in the Czech Republic over twenty years ago. Avia is a collection of independent gas stations, which work together to compete.
The network has grown by five stations this year, according to Mรผhlfeld. The stations are in Vlaลกim, Sรกzava, Tลebรญฤ, and two in Jindลichลฏv Hradec. These pumps are independent, giving station owners flexibility, including the setting of prices.
According to data from the U.S. Energy Information Administration, the average retail gasoline price in the Czech Republic is approximately 1.5 euros per liter, providing a benchmark for the competitive landscape.
Franchise Model and Market Dynamics
Franchise owners pay fees but retain autonomy in operations and pricing. Some Avia stations sell diesel at below the national average. Similar franchise models cover other private pump owners, including Orlen Unipetrol, MOL, Shell, and OMV.
The competition involves not only pricing and quality but also the array of services. Similar franchises can provide this assistance. A network of Gulf stations has previously exited the Czech Republic. Another network expanding through franchises is One1, formerly F1 GAS, of Top Tank.