It is a challenging period for businesses involved in hotel and restaurant catering, but noises from within the industry reveal it is an exciting time and as long as companies are prepared, the sky's the limit.
Tony Reynolds, managing director at Reynolds, supplies a range of businesses, providing fresh produce and chilled foods. The company has locations in London, Bristol and Manchester, employing 330 staff and with a fleet of 140 lorries. Reynolds has worked hard over the last 10 years and believes the company's efforts have been worthwhile. “We feel that right now there is a window of opportunity to provide solutions, we offer a wide range of services from basic to a highly tailored service and I'm excited to be involved,” he says.
Philip Britten at Solstice has been on both sides of the fence, so is well placed to understand the issues. He set up the company back in 1997 while working as head chef at London's Michelin starred Capital Hotel. Britten decided to concentrate his energies solely on Solstice back in 1999, just as he was awarded ëOutstanding London Chef' at the Carlton London Restaurant Awards. “We're busy trying to source a lot of our produce direct from growers from around the world as this gives us and our customers a better end product,” he says. “Trade had slowed down in recent months with the war, but we seem to be busy as normal now.”
One issue raising its head is traceability. Jon Evans, business development manager of A David and Co, says this is becoming so important to customers. He says: “We are working hard on full traceability, our customers want it and if you don't listen to them how can you improve your service.”
Peter Thomas, managing director at Prescott Thomas, has been quick to notice the rise in health and safety commitments. The company has acquired British Retail Consortium (BRC) accreditation and he believes it is an important health and safety tool for the business and for customers. “The BRC accreditation is the Rolls Royce of its kind. It means our facilities have to be of the highest quality from the standard of our refrigerated vehicles to our warehouses,” he continues. “The accreditation process takes three months but the rewards for our business make it worth the time and money.”
Companies are also looking at diversifying as a means of improving their business. Britten explains: “We have a buyer based in Rungis, so have access to an enormous range of produces besides fruit and vegetables. We also have extended our range to include a full range of dairy products and meats.”
Offering a specialised service is one way of improving business. Alan Hancock is a buyer for West Country Fine Foods. “We offer a tailor-made service offering speciality produce. We have no minimum order value and we have a cut-off point of midnight for following day delivery,” he says. “We are pitching our business at the upper end of the market and we are finding it very rewarding. Our fresh produce lines include; fresh herbs, lettuces, baby vegetables and wild mushrooms, we've stayed with what we know and what we're good at.”
This year the hot weather has not only affected produce but in turn has put pressure upon prices. Thomas says: “The hot weather has boosted the industry as demand has risen but at the same time it has brought problems. The quality of produce has suffered throughout Europe. Prices have risen like we have never seen before and though clients are understanding for a time, their patience can only last so long.”
Evans agrees that price rises have caused an issue but they still have to try to service their customers as best as they can. “We only want to deal with the best quality produce and it has been tough this year. It has been hard work finding solutions but we feel we've stayed on top of things,” he says.
David Burns, commercial director of Redbridge Caterfresh, is philosophical. “Extreme weather patterns are becoming more regular whether at home or on the continent, the Met Office confirms that three out of five hottest summers ever have been in recent years,” he says. However, he is quick to observe that drought conditions affect volumes and prices. “Volumes of cauliflower and broccoli are down 70 per cent and so prices are inflated by up to 300 per cent.”
The drought conditions have caused concern for West Country Fine Foods. Hancock says: “Wild mushroom spores need moisture to grow but as the ground has been very dry they have not been getting this. This puts pressure on us to get produce to our markets quick enough.”
The lack of availability of fresh produce is a concern at Solstice. “Prices have shot up to reflect this, and over the last couple of weeks products such as courgettes, aubergines and broccoli have nearly doubled in price,” says Britten.
However, Reynolds believes the problems present have not hit too hard yet. He says: “We work closely with growers and have a sophisticated system of procurement. Domestic price rises have been seen but our purchasing is contracted, however we're not going to become complacent.”
With weather complications it is important that a quality service is provided. Thomas says: “This industry is fiercely competitive, we need to give our customers something extra, we need to give them personal attention. But at the same time I see the key area is business consolidation. We can't afford to get too big too quick.”
Britten believes the relationship formed with hotels and restaurants are crucial to success. “We work closely with all of our customers and as a chef myself I understand the pressures they work under,” he says. At Solstice we do everything we can to make their lives easier and we offer second delivery services within London for any last minute orders. I also spend time with any of our customers who want advice or just a chat about produce.”
Burns also prides himself on the relationship Redbridge Caterfresh has with clients. “Our relationships have been built over a long period of time. We have been supplying TGI Friday's for 15 years. This success led to us becoming Whitbread's sole supplier to their northern depot for all their brands,” he says. “Our philosophy for staying ahead of the game is that we must look to provide innovation to our customers.”
The hot weather has delivered a boost to UK tourism this year, which can only be good for the business. Thomas says: “The industry has bounced back from the effects of 9/11, and the hot weather has been great this year, with more people opting to holiday at home.”
Hancock agrees that tourism brings busy periods for the business. “Our Devon operation can be quiet 10 months of the year representing about 25 per cent of our turnover. However, during August it rises to match the output of our main office in Wiltshire,” he says.
Along with the growth in tourism comes the growth in popularity of eating out and Burns is obviously pleased. “In the UK 99 per cent of the public will eat out at least once a year. Among the younger generation it is more often as it is a growing part of their lifestyle,” he says. “It is the branded and theme pubs where much of the demand manifests itself, and this is good news for our business.”
Britten agrees with Burns, that it can only be beneficial for the future of the industry. “Fruit and vegetables is a staple in most restaurants, as they get busier then so do we,” he continues. “As restaurants go into more diverse menus, then our product range grows alongside them as we a source a wider range of produce.”
The industry does not allow itself to sit down and give itself a pat on the back ñ it's far too busy and there is still a lot of work to be done. Burns believes trust is key to future success. He says: “We also have to share information and menu planning and development are crucial to staying one step ahead.”
Evans says that business has set up a customer care department to help the business. They also provide customers with a monthly newsletter. “Our department aims to find out what our customers do and don't like, while our newsletter aims to give customers guidance on availability of produce,” he says. “Forging links like these are crucial.”
Thomas believes that there is a good structure in place for future development, but is also quick to point out that Prescott Thomas is only as good as the produce it provides. “I get good quality produce from Spitalfields, the market provides a great service to our business.”
Reynolds maintains that although the industry is in good shape at the moment there has to be colossal investment by companies to maintain it. “For companies to survive they must invest in people, we all have a responsibility for investment to make the most of the opportunities that we have.”
No comments yet