A huge amount of sectors fall under the foodservice umbrella, ranging from schools to airlines, hotels and pubs. Trying to meet all the different requirements requires a great deal of effort and care, not to mention juggling.
The early 1990s saw a proliferation of foodservice suppliers with annual turnovers of £15 million to £30m. Fast forward to 2007, and this is no longer the case.
“There has been increasing pressure in price, delivery requirements and cost to serve - for example, the implication of congestion charges, fuel and service prices and inflation,” says Nigel Harris, Fresh Direct’s managing director.
Fresh Direct is constantly looking at new opportunities and has invested heavily in its facilities. At its Bicester headquarters, Fresh Direct is building on its existing development kitchen to create a full development and training centre in the shape of the Fresh Direct Academy.
The academy will provide facilities for on-the-job training for existing and newly recruited employees, and also offer customers an external tuition facility. Schools and colleges will also be allowed to use the facilities.
“We intend to open the academy up for frequent chefs’ evenings, with cook-offs and demonstrations with the emphasis on fresh fruit, vegetables and salads, showing the customer and public what can be achieved by the fresh portion of the plate,” says Harris.
In addition, Fresh Direct has invested in a third, 18,000 sqft facility in Bicester purely devoted to prepared lines, as it keeps abreast of demands for bespoke cuts and packaging. According to the firm, offering a prepared line service is ‘invaluable to those brands turning over a large number of covers, supporting a fit-for-purpose approach, saving on preparation time and waste and supporting a high level of hygiene, with reduced handling’.
Danny Murphy of Chef’s Connection, which picked up the JP Fresh Foodservice Supplier of the Year accolade at this year’s Re:fresh awards, says the company’s most important investment has been in its staff. “Having the right staff automatically improves the standard of your operation,” he adds.
From its eye-catching vehicles to staff uniform, Chef’s Connection has, like other foodservice suppliers, ensured it has got the details right.
Coopers Produce is a new name in the fresh produce foodservice sector, and the company’s employees have accumulated more than 85 years of experience between them. However, according to partner Sarah Cooper, that can count for nothing when you are starting out in a totally new business.
“As we have chosen to specialise in purely centralised distribution, it can be a long wait before being invited to tender for business, as the incumbent supplier can often have negotiated a contract for a period of three years,” she explains.
Nevertheless, the Bolton-based foodservice supplier has already hit the headlines, having secured two high-profile contracts with Oliver Kay Ltd and High Street department store Bhs.
Coopers will supply all 131 Bhs in-store restaurants and 45 ‘to-go’ sandwich outlets with salads, as well as fruit. The firm is also speaking to a number of companies within both the high street and restaurant industry, Coopers tells FPJ.
Coopers Produce operates from a 49,000 sqft, purpose-built, refrigerated distribution centre. Cooper claims her firm is in the unique position of providing the same benefits of a larger company, while still being able to offer a personal commitment. “I feel it is important that our customers consider us as a department within their own organisation, and this is achieved by having a close working relationship,” she adds.
Securing long-term relationships remains a priority for foodservice suppliers. In the industry, there remains the feeling that retailers are given priority status by some growers, although there are signs this is changing.
“In 2003 and 2004, what we were seeing was growers viewing foodservice as a place to send produce which supermarkets wouldn’t take in on specification,” Harris explains. “The volumes now offered by foodservice suppliers are not equal to retail but are certainly growing rapidly, and now offer growers another viable opportunity that perhaps wasn’t there before.”
Harris maintains growers were previously reluctant to contract into foodservice, but now they are actively involved in setting up volume products on a contract price and specification. “This ethos has mainly been adopted by UK and northern European growers, but we’re now working with southern European and southern-hemisphere growers to achieve the same response,” he adds.
Coopers Produce feels that there is a very clear divide between foodservice and retail. “It is a totally different market, and from an account management point of view, as a supplier you may be encouraged to help with sales promotions, which generally is not seen in the supply of fresh produce within foodservice,” says Cooper. “I certainly wouldn’t say the foodservice industry is perceived as second rate. On the whole, we work within a very professional industry which is supported by a good nucleus of suppliers.”
Educating growers about supplying the foodservice sector and what that entails has benefited the sector. “In the past, supplying to foodservice was seen by some as buying a cabbage from a wholesale market and selling it in a pub,” Harris says. “Now growers need to partner us closely and be involved in everything from menu development, technical requirements, product marketing and food preparation - all of which are key to successful supply, following initiatives such as 5 A DAY and Eat in Colour.”
Fresh Direct recently partnered R&RW Bartlett, a parsnip producer in Staffordshire. Some 100 local school children were invited to spend an afternoon on the farm, learning about the journey of the parsnip from field to fork.
As fruit and vegetables secure a greater profile on the foodservice menu, Harris argues that starter and main courses have begun to cater more for the growing vegetarian sector, as well as those dubbed ‘flexitarians’ - individuals who eat meat, but who’ll often pick a vegetarian dish when eating out.
When it comes to specific lines, Chef’s Connection says micro sprouts and salads are being well received, as are specialist tomato varieties. “Some from Italy in particular have been great,” Murphy says, adding that the industry is always looking for something special.
Seasonal produce is also in vogue, and although Murphy says certain growers work very hard to promote British produce, more could be done.
Salads are performing well, and Shiso and Sakura cresses are proving popular, as are different varieties of vine tomatoes, Cooper says.
Meanwhile, demand for organic fresh produce is growing. Fresh Direct is accredited to The Soil Association and carries a number of organic lines. Harris predicts demand will increase given the number of customers willing to pay more for organic food.
However, he also points out that the customer is very price conscious. “Increasing competition on the high street means customers are looking to reduce the cost on the menu, so suppliers are scrutinised on price,” he says.
Coopers Produce agrees that organics are being requested a great deal more, but as retail demands continue to grow, availability remains inconsistent on some lines.
Meeting the different needs of clients is something foodservice suppliers do on a regular basis. For example, customers who order with a two to three day supply chain require a specification with a longer shelf life, and as Harris says: “All customers require quality produce, but of different specifications, for example, in size, colour and cut; but across sectors their requirements vary dramatically.”
“It is important to know your customer and the needs of their business in order to deliver them the produce to meet their customers’ expectations,” says Cooper. “Airlines have very specific specifications as they have a very small dish that has to provide a colourful and enjoyable meal. While a hotel must still consider sizing of produce on a plate, especially if it is doing banquet catering, it is less restricted.”
Another important issue facing suppliers is food miles. Fresh Direct has embarked on a programme with farmers overseas to cut down on food miles. Located within a 10-mile radius of its two satellite depots, a syndicate of local farmers will supply a percentage of Fresh Direct’s products.
The firm will initially look at a small range, and is currently focusing on products sourced from South Africa and Kenya as well as French baby vegetables and legumes.
Fresh Direct’s other ongoing development programmes place much emphasis on seasonality and fit-for-purpose offerings. “We’re always looking to help our customers achieve an appropriate solution - Sodexho and our own NPD team have partnered to look at how we might enhance a children’s pack lunch offering, achieving a high proportion of fresh, whilst being affordable and appropriately delivered for packing and storage,” Harris says.
In the last five years, there has been an increase in the number of competitors supplying to foodservice. These include growers, secondary wholesalers, importers and agents, says Harris.
Competition within foodservice ranges from independents with one vehicle to national players with many depots, a full transport fleet which sources globally and supplies chains of hotels, pub chains and restaurants.
“Competition in this industry has always been strong and I am sure it will continue,” Cooper predicts. “There are a number of larger companies that tend to dominate the industry but it doesn’t always follow you have to be large to offer good-quality service and produce, as well as value for money.”
Indeed, foodservice suppliers believe competition is a good thing. “Within retail supply there are really only the supermarkets to choose from,” Harris says. “However, within foodservice we still have lots of smaller, independent suppliers to choose from - let’s hope this remains.”
REYNOLDS TACKLES CARBON FOOTPRINT
Reducing ITS carbon footprint is a priority for Reynolds Catering. The foodservice supplier focuses heavily on sourcing locally grown and organic fresh produce and is a member of English Farming & Food Partnerships (EFFP), a Defra-subsidised organisation.
EFFP works with local UK farmers that are not able to meet the volume requirements of major retailers but have a product they want to sell. “We’re building an awareness and network of how this food can be used in the foodservice sector,” says Tony Reynolds, managing director of Reynolds Catering. “We’re trying to get a commitment from our customers to look at locally sourced product, and it’s a major step forward. It’s important for customers to understand what we can do to reduce food miles.”
Never underestimate the foodservice sector, advises Reynolds. He says there has been much consolidation in recent times and predicts further changes. “The foodservice sector is fragmented, but in the future there will be fewer operators around,” he predicts. “Those that are left will be larger and more professional outfits that will move forward.”
To that end, Reynolds says it is important for companies to look at the long-term sustainability of the sector. “Companies have to follow a plan for growth and have the right systems and capabilities,” he adds. “That’s why we’ve invested in our business in the last few years.”
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