One of the most significant challenges facing the service station industry is the ability to adapt as New Zealand continues its energy transition. The challenge for Z Energy (Z) is adapting and ensuring it meets customers' energy needs, now and in the future.
"We're already working hard to address this," said Lindis Jones, CEO of Z.
Z is committed to maintaining its fuel supply infrastructure, which is critical to meeting New Zealand's transport needs, while simultaneously rolling out EV charging solutions for customers' homes and on the go.
In September, EVs made up 53 percent of all new vehicles and used imports registered in New Zealand, making it imperative to ensure a charging infrastructure available to meet the needs of drivers.
Z has an established network of almost 200 service stations in urban and rural areas and along major travel corridors and is well-positioned to offer on-the-go EV charging.
Each site is well-lit and secure and has amenities and convenience offerings, enabling customers to grab a bite to eat or drink while fueling or charging their car.
"We're excited about growing our charging network and look forward to innovating and enhancing the experience for our EV customers as we build the network."
By the end of 2023, Z plans to have EV charging at 20 percent of its service stations. Currently, it has 55 charging bays live, with more anticipated to be live in time for the summer season ahead to cater to road trips and consumer needs.
Z believes a scaled domestic EV charging network is key to the energy transition to a low-carbon New Zealand. It works at scale and pace to meet this need, allowing New Zealand and Z customers to meet energy goals.
"Partnering with others on this journey is something Z is also committed to doing."
Partnering with Kiwi business, Red Phase Technologies has enabled Z to bring new ultra-fast EV chargers to the forecourt at some of their sites. Z has partnered with Zenobē, a UK battery company supporting international markets' transition to clean energy. This partnership has led Z to trial a repurposed bus battery that enables customers to recharge while placing less demand on the primary grid.
In conjunction with the drive for EV charging, convenience is another significant need that Z is adapting to and addressing for its customers.
"Good food and coffee are integral to most of our Z sites, and we've seen a big shift to fresh and on-the-go food that can be consumed within 10 minutes of purchasing. We don't see this changing any time soon."
Consumer's desire for convenience has continued to grow. Fueling or charging up, Z aims to provide the consumer with the on-the-go food or meal they want, with a beverage and essentials available for a small shop, including milk and bread.
Jones explained that convenience isn't just about what Z offers but how it is offered, which is why it has also leveraged digital tools, such as the Z App, to offer a pre-order feature for customers to order their coffee before they arrive at a Z site, so it's ready and waiting for them.
Another recent key challenge for the industry has been the increased retail crime. Jones said Z had witnessed rising rates of anger, aggression and abuse of its frontline retail team over the last two years, which is not an isolated occurrence and is an industry-wide concern. Z has fog cannons installed at every site to combat this and support staff safety.
As well as fog cannons, Z has bollards, reinforced doors, CCTV, night pay windows, Tobacco dispensers, safe rooms, alarms and pendants for staff to wear.
"We also ensure our staff receive training to help them respond to these incidents."
Jones said the rise in retail crime and aggressive behaviour has been disappointing and added that Z took many measures to ensure staff safety.
"While it is unfortunate our staff have had to respond to these incidents in the past, we are proud of how they have handled these situations."
Z's Good in the Hood initiative is a positive initiative that sees $1 million shared with charity and community groups across New Zealand.
Each of Z's service stations across New Zealand selects four charity or community groups that have a local presence in its community. Customers who shop in-store are given an orange token to pop in one of four boxes to vote for their favourite local group, with $4,000 per station split between participating groups based on the votes they receive.
"Our service stations also have a further $1,000, which they can allocate as they see fit throughout the year."
Jones said that this year, Z would surpass its $10 million milestone in contributions to thousands of small community organisations and charities nationwide since 2011, primarily driven by its annual Good in the Hood programme.
