Infrastructure

Supporting the roll out of Britain’s EV charging infrastructure

Through its investment in Roadchef, Macquarie is backing the upgrade of motorway service areas to improve accessibility to electric vehicle (EV) charging infrastructure and make travelling across Britain more convenient.

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Sector	Infrastructure
Sub-sector	Transport
Location	United Kingdom

Opportunity

In 1959, Britain’s first motorway service area opened at Watford Gap.¹ Located on the M1, its offering of fuel, restrooms, food and even a bar saw not only motorists, but The Beatles, Rolling Stones, Pink Floyd and Jimi Hendrix visit as they travelled between the south and north of England on Britain’s first full-length motorway.^2,3

The lasting popularity of such early service areas, combined with an ever-growing number of people travelling on the expanded motorway network, has seen around 100 other areas established in the decades since.⁴ Just under a third of these, including the iconic Watford Gap, are now owned and operated by Roadchef.

Across its 30 locations, Roadchef provides dining, retail and accommodation options alongside traditional service station facilities. Its focus on customer needs and pursuit of innovation has helped it to become the third largest operator in the market, serving more than 52 million people each year.⁵

Roadchef’s service areas are now a destination of choice for motorists seeking to recharge, refuel and relax. However, with consumer expectations changing rapidly and all new vehicles sold in the UK expected to be zero emissions by 2035,⁶ Macquarie recognised Roadchef had an opportunity to transform its offering and grow by helping to accelerate the adoption of EVs.

Approach

Macquarie leveraged its considerable experience supporting the roll out of EV charging infrastructure globally and additional learnings from its time as the owner of Moto, the UK’s largest operator of motorway service areas, when it acquired Roadchef on behalf of investors via one of its managed funds in 2022.

Upon investing in the business, Macquarie set out its ambition for the operator to secure a leadership role by helping shape the roll out of fast-charging infrastructure for EVs across Britain. Macquarie also backed increased investment across Roadchef’s estate, supporting the development of new locations, facility upgrades and expanded partnerships with leading brands.

To achieve these goals, Macquarie recognised Roadchef would have to increase the capacity and accessibility of its EV charging points. The development of high-powered charging hubs, building on Roadchef’s existing medium-powered charging infrastructure, would be central to reducing wait times for motorists and supporting the accelerated adoption of EVs.

With motorists expected to spend more time at motorway service area as the shift to EVs accelerates, Macquarie believed Roadchef and its growing customer base would benefit if it continued to evolve its offering. This would involve upgrading its existing facilities and improving the customer experience by securing new and expanded partnerships with Britain’s leading retail, restaurant and hotel brands.

With an established reputation and high-quality offering, Macquarie recognised Roadchef could also invest to develop new locations across Britain.

Outcome

Roadchef now has more than 70 high-power, 40 medium power and 24 standalone AC chargers across its 30 sites.⁷

Working with its partners, Roadchef expects to deliver new charging hubs across the motorway network by 2030, providing access to multiple 350-kW ultra-rapid chargers across almost all its locations. This state-of-the-art infrastructure fully charges EVs in 15 minutes.⁷

By 2030, Roadchef expects to roll out approximately 650 more fast-charging points partly powered by 9 MW of new solar energy capacity installed on-site. Roadchef will also pilot charging solutions for heavy goods vehicles (HGVs) at two key locations across the motorway network while developing 100 additional parking bays in preparation for electric HGVs.⁸

With Macquarie’s support, Roadchef has increased investment to refresh select locations and develop its customer offering. It has developed existing relationships with leading brands including McDonald’s, Costa, Leon and WH Smith while progressing new partnerships with the likes of Coco di Mama and Super 8 by Wyndham Hotels and Resorts. These partnerships make leading brands more readily available to motorists while they are on the road, enhancing both choice and convenience when travelling across Britain.

Beyond expanding its dining and retail options, Roadchef has plans to further develop its accommodation facilities by doubling up on Super 8 Hotels to allow for customers to relax, recharge their EVs and rest. Its customers will continue to benefit from free Wi-Fi, loyalty schemes and accommodation located across its sites, ensuring Roadchef’s service areas have something to offer everyone on the road. Macquarie is also supporting Roadchef as it explores the viability of new locations, including its plans for a next generation service area on the A1(M) motorway at Selby.