Mackay preaches faith in branding
The UK offers the best catering and the broadest range of eating-out choices in Europe, and it is all because of branding, according to Francis Mackay, chief executive of the Compass Group.
In an address to some 200 industry colleagues at Catering Arena's inaugural Savoy Lecture, Mr Mackay described branding as the way forward for the hospitality industry, providing consistency of quality and price.
While France, Germany and Italy each offered fine French, German or Italian food, Mr Mackay said none could match the level of choice available in the UK.
"The range of menus offered in this country far outstrips that available elsewhere, even, I believe, in the USA," he said.
While rivals such as Sutcliffe Catering have opted to create their own brands, Compass has taken the route of trading under other people's names, and Mr Mackay used the Savoy Lecture as a platform to justify the spread of its New Famous Foods portfolio of high street brands.
He told the gathering that Compass was the largest Burger King and Pizza Hut franchise holder in the world. It operated a Burger King outlet with the highest turnover per square metre in the world, at Heathrow Airport, and opened the first Pizza Hut in Norway, at Oslo airport.
At Birmingham University, students were buying 1,000 items a day at a Dixie's Donuts outlet. And at one business and industry location, which Mr Mackay left unnamed, the introduction of one brand led to an increased spend per head from £1.58 to £2.29.
Expansion is on the cards in the USA, where Compass is exporting some of its UK brands through Canteen Corporation, acquired last July.
A trial of 60 doughnut modules is to start in March at Canteen contracts in Kansas. The modules, which are stand-alone, self-service cabinets, will sell an extended Dixie's Donuts range, offering cookies and muffins as well as doughnuts.
Ian Daly, managing director of the New Famous Foods division, said afterwards that the units would be introduced to other US locations if the pilot proved successful, while the extended range could be transferred to the UK.
Also in the USA, Canteen is in discussions to introduce its Café Select brand into outlets in California. And in Paris, Compass's Scandinavian Service Partner division is to start work on converting 28 outlets at Charles de Gaulle airport, acquired from the French Saresco Group last year.
Mr Daly said the new outlets would include at least two Burger Kings, two Pizza Huts, a Frank's Deli, John Bull Pub, Salmon House seafood bar and a Café Select.
