Santiago Ferreccio (YPF FULL): “We showed Argentina can do something extraordinary”
YPF’s convenience brand FULL has expanded to over 1,010 stores in Argentina. We sat down with Santiago Ferreccio, Head of YPF FULL, to discuss the transformation of the business and the innovative Alcorta station, awarded as Latin America’s best convenience store by NACS.
Question. Can you give us an overview of the status of YPF? There’s been a lot of change over the last few years.
Answer. I’ve been at YPF for over 25 years working in areas such as business development, network operations, and the FULL project, which I’ve seen develop over the last two decades. Today, FULL has more than 1,010 stores in Argentina; we are present in over 500 towns across the 24 provinces, and more than 10 million customers visit us each month. We are also the largest coffee seller in Argentina, closing last year with 34 million units sold.
Today, we are the largest retail chain in the country. In the past year, we have transformed over 130 stores, and the goal is for all 1,700 YPF service stations to have a FULL store.
We currently have three models: a maximum experience model, with approximately 700 stores, offering around 2,000 SKUs with a strong focus on coffee, hamburgers, and product innovation. The second model is FULL Café, with about 270 stores that focus on coffee and delicacies. Lastly, the FULL Kiosk is a quick-stop model for rural areas and urban spots where the focus is on impulse buys. We have 40 of those right now.
Q. With a vast network spread across such a large country, how adaptable are stores to the intricacies of each market?
A. We work hard to standardize processes so the customer experience throughout Argentina is consistent. Each model has a standard product offering but can adapt and personalize according to the needs. Of our network, 160 stores are company-owned, and over 840 are franchised. The goal is that the coffee or burger offered in Buenos Aires can be found anywhere in the country.
Regional products have been a big challenge this year. You find different regional needs in each corner of Argentina. While we allow some flexibility for local products, they must meet the quality and safety our brand represents.
Q. FULL is going through a major transformation with a new image and vision. What can you tell us about this journey?
A. In May 2016, we launched the new FULL model at an iconic station in Vicente López, Buenos Aires, where we transitioned from a self-service model to a manned service model. We understood that customers increasingly wanted a personalized experience. This led us to listen to our customers, have more empathy, and improve the quality of our offerings based on the feedback we got.
For example, we tested moving the coffee machine to the front to face the customer. The result was extraordinary. Today, 830 stores have the new image, and the remaining 170 will be transformed soon. We’ve also introduced a lot of new equipment and technology, enabling us to be much more efficient in standardizing the experience and allocating resources to tasks that really add value.
Q. How did Argentine customers respond to this modernization process? And what would you say are their main demands?
A. Throughout this transformation, we’ve received great feedback from customers. FULL has become a meeting point for family gatherings, celebrating friendships, spending time by yourself, and sharing moments. The modern look of the stores is a key aspect as customers feel safe and trust the food quality and experience. They see a comfortable space with Wi-Fi, good lighting, and high-quality products. Being able to access that experience nationwide has tremendous value.
Argentines love to be surprised. Every time we launch a latte with a new flavor, 15-20% of our customers try it. Despite the crises we go through, they are extremely curious. They’re also highly engaged with technology – the YPF app has nearly a 15% penetration rate. If you give them the technology, they use it, and they love that we personalize their experience through the app.
Q. What can you tell us about the Alcorta station, which NACS awarded as the best convenience store in Latin America? What makes it so special?
A. It’s the result of great teamwork. With this station, we were able to create something unique: a mobility hub for the future and a place to better understand our customers’ current and future needs. The design and scale of the infrastructure are amazing. The station features a drive-thru for picking up orders as well as kiosks inside the store and outside for ordering products. We also implemented our "scan and pick-up" system – an AmazonGo-style concept for people doing sports who head out with only their phones. We even included a sports station where people can leave their belongings, shower, and enjoy refreshments. The store has seating for 140 people on the ground floor, and the second floor includes a FULL Work area for 60, currently with an occupancy rate of over 90%. We are very pleased with what we’ve achieved and especially with the acceptance of these new concepts by our customers.
Q. How could these concepts be implemented in other parts of the country?
A. We call it a “Lego model” – we assemble it and adapt depending on the location and the operator who invests in the station. This station has been a great source of inspiration for our over 1,500 operators who carry the YPF brand. Being a market leader in Argentina, we have the challenge of constantly reinventing ourselves to continue surprising our customers and ensuring that experience remains agile, technological, and unique, yet consistent across all locations.
Q. As a leading brand in the country, some say you are your own biggest competitor...…
A. We say that we compete against all kiosks, QSRs, and coffee shops in Argentina. Depending on the station's location, the level of competition changes significantly. We try to identify all these competitors within an “X” kilometer cluster around the station to ensure our FULL strategy is competitive within that core of competition.
Q. As a NACS member, you’ve had the opportunity to travel the world and see innovative stores. What concepts that haven’t yet reached Argentina would you like to implement?
A. I was amazed in Asia by how they process and use data to personalize the customer experience. I always tell my colleagues at YPF that we’ve drawn inspiration from our NACS experiences. We dared to dream and to show that Argentines can do something extraordinary. I’m speaking on behalf of a large team of people who’ve poured their heart and soul into this project. We’ve achieved a beautiful cultural mix where young people keep challenging us for new products and experiences.
We believe the brand can keep growing in and out of stations and that there are still things that we need to learn. When many colleagues visited us in Buenos Aires during the NACS Convenience Leaders Exchange LATAM in April, they were genuinely impressed by what we had accomplished.
Q. After such a significant transformation at YPF, what does the future hold for the FULL brand over the next 20 years?
A. FULL is a brand that must keep growing exponentially and daring to dream both within and beyond the service station. Today, FULL connects strongly to young people, and if we can get young people to know the YPF brand through FULL, we can secure that future customer. It’s a brand with enormous potential, and as we like to say, this is just the beginning.
