Profits on wheels

01 January 2000
Profits on wheels

WESTMINSTER Meals Service (WMS) has taken another big step into the all-commercial world in which it's now operating. Through a new, separate company, managing director Brian Smith has bought a franchise with frozen meals company Wiltshire Farm Foods, giving WMS exclusive distribution rights in the London West postal areas.

A new manager, Terry Dale, has been recruited from the retail sector to run and develop this franchise.

Smith explains the background to the deal: "About 10 years ago the Wiltshire franchise was established to sell frozen meals - not regenerated - to the public, outside the welfare state."

It has now built up regular custom with housing associations, homes for the elderly and phychiatric hospitals whose patients are being discharged into the community. The deal has brought with it about 60 customers, inherited from another franchisee, who take an average of seven meals a week.

Compared to the traditional welfare meals-on-wheels operation, this is a small proportion of total WMS business - but it is set to grow. Turnover from the commercial segment could be £400,000 a year.

Previously, Apetito (UK) has been the main frozen food supplier, from whom WMS has been buying frozen ready meals from the Menu à la Carte catalogue.

Before the new deal was done, Smith had commissioned software consultant Paul Dodwell to produce a database, running on a portable computer, to hold recipe, cost and price details of all the ready meals WMS offers. Apetito's recipes have been loaded into this - and now they are being supplemented with those of the new supplier.

Two versions of the program are being created - one to control the welfare meals-on-wheels operation, and the other for the commercial segment.

The program handles accounts, delivery round and meal allocation details and individual meal preferences. A direct link to suppliers to automatically re-order stock is also a possibility.

At the quarterly meeting with the company's main paymasters at Westminster City Council, WMS is challenged about its performance, as any contractor is by a client. Smith is not at all defensive, though not all the targets for the first half-year have yet been met. After a period when the numbers of meals sold fell away, volume has picked up again.

"For anyone to have done what we've done in six months would be good. We haven't got there yet, but we are under pressure to complete on time.

"Isn't it a fact that the scrutiny they would give us, now we are a contractor, is greater than they would give their own departments?"

The meeting goes well, endorsing Smith and company secretary Len Murrill's approach to business.

Smith says: "They are very satisfied with the way things have been moving, and the progress we've made.

"They felt concern at the fact that numbers of meals ordered have been reducing. But they're being very supportive about our open day. We've put it back to 20 October, so that the director of social services can be invited."

The council has told Smith, with barely a week's notice, that it wants to audit the company's systems, in particular the way it invoices clients and collects money from them. Smith looks with dismay at the brief for the audit, which runs to three closely typed pages. He doesn't have any problem answering the questions, but wonders about the time it will take.

He also wonders about how efficient the council's own payment collection systems are. In six months, WMS has not yet received an invoice for its vehicles, which are leased through Westminster City Council.

The open day will be one of the rare occasions when WMS has to do some catering - for its day-to-day business all the meals are bought in frozen, and the job of WMS is to regenerate them and distribute them to clients.

The hospitality at the open day will be a buffet spread, laid on by Amanda Dawson, daughter of WMS manager Ann Dawson. She is actually a solicitor, but she's a proficient amateur cook, and reached the finals of Master Chef on BBC2.

Guests on the open day invitation list include both the chair and the director of social services from Westminster City Council, Westminster councillors and care managers, and meals-on-wheels managers from other boroughs, where WMS could hope to win new business.

On the commercial side, Smith has had an inquiry from a hospital in the Riverside Health Trust, which could lead to a contract to supply up to 40 meals a day.

On the welfare meals-on-wheels side, WMS has been tendering for new business, not discouraged by the failure to win the Wandsworth distribution contract. Smith and Murrill were given a lengthy grilling by a prospective client, and are waiting hopefully for news.

WMS has produced the first edition of The Dinner Times, which is a newsletter for customers. WMS uses it as a vehicle for a simple mission statement: "The main reason for calling is to deliver your meal, but we know just how much it means to you to have a friendly face to say hello to." n

NEXT visit to Westminster Meals Service will be on 27 October

WESTMINSTER Meals Service (WMS) has taken another big step into the all-commercial world in which it's now operating. Through a new, separate company, managing director Brian Smith has bought a franchise with frozen meals company Wiltshire Farm Foods, giving WMS exclusive distribution rights in the London West postal areas.

A new manager, Terry Dale, has been recruited from the retail sector to run and develop this franchise.

Smith explains the background to the deal: "About 10 years ago the Wiltshire franchise was established to sell frozen meals - not regenerated - to the public, outside the welfare state."

It has now built up regular custom with housing associations, homes for the elderly and phychiatric hospitals whose patients are being discharged into the community. The deal has brought with it about 60 customers, inherited from another franchisee, who take an average of seven meals a week.

Compared to the traditional welfare meals-on-wheels operation, this is a small proportion of total WMS business - but it is set to grow. Turnover from the commercial segment could be £400,000 a year.

Previously, Apetito (UK) has been the main frozen food supplier, from whom WMS has been buying frozen ready meals from the Menu à la Carte catalogue.

Before the new deal was done, Smith had commissioned software consultant Paul Dodwell to produce a database, running on a portable computer, to hold recipe, cost and price details of all the ready meals WMS offers. Apetito's recipes have been loaded into this - and now they are being supplemented with those of the new supplier.

Two versions of the program are being created - one to control the welfare meals-on-wheels operation, and the other for the commercial segment.

The program handles accounts, delivery round and meal allocation details and individual meal preferences. A direct link to suppliers to automatically re-order stock is also a possibility.

At the quarterly meeting with the company's main paymasters at Westminster City Council, WMS is challenged about its performance, as any contractor is by a client. Smith is not at all defensive, though not all the targets for the first half-year have yet been met. After a period when the numbers of meals sold fell away, volume has picked up again.

"For anyone to have done what we've done in six months would be good. We haven't got there yet, but we are under pressure to complete on time.

"Isn't it a fact that the scrutiny they would give us, now we are a contractor, is greater than they would give their own departments?"

The meeting goes well, endorsing Smith and company secretary Len Murrill's approach to business.

Smith says: "They are very satisfied with the way things have been moving, and the progress we've made.

"They felt concern at the fact that numbers of meals ordered have been reducing. But they're being very supportive about our open day. We've put it back to 20 October, so that the director of social services can be invited."

The council has told Smith, with barely a week's notice, that it wants to audit the company's systems, in particular the way it invoices clients and collects money from them. Smith looks with dismay at the brief for the audit, which runs to three closely typed pages. He doesn't have any problem answering the questions, but wonders about the time it will take.

He also wonders about how efficient the council's own payment collection systems are. In six months, WMS has not yet received an invoice for its vehicles, which are leased through Westminster City Council.

The open day will be one of the rare occasions when WMS has to do some catering - for its day-to-day business all the meals are bought in frozen, and the job of WMS is to regenerate them and distribute them to clients.

The hospitality at the open day will be a buffet spread, laid on by Amanda Dawson, daughter of WMS manager Ann Dawson. She is actually a solicitor, but she's a proficient amateur cook, and reached the finals of Master Chef on BBC2.

Guests on the open day invitation list include both the chair and the director of social services from Westminster City Council, Westminster councillors and care managers, and meals-on-wheels managers from other boroughs, where WMS could hope to win new business.

On the commercial side, Smith has had an inquiry from a hospital in the Riverside Health Trust, which could lead to a contract to supply up to 40 meals a day.

On the welfare meals-on-wheels side, WMS has been tendering for new business, not discouraged by the failure to win the Wandsworth distribution contract. Smith and Murrill were given a lengthy grilling by a prospective client, and are waiting hopefully for news.

WMS has produced the first edition of The Dinner Times, which is a newsletter for customers. WMS uses it as a vehicle for a simple mission statement: "The main reason for calling is to deliver your meal, but we know just how much it means to you to have a friendly face to say hello to." n

NEXT visit to Westminster Meals Service will be on 27 October

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