Success inspires gm to promote brands

By Gaby Huddart

Gardner Merchant is stepping up efforts to promote its home-grown branded offerings after the first site to get the outlets has seen costs plummet and margins increase.

The staff feeding contract Gardner Merchant holds with Xyratex (the computer manufacturing company formed last year after a management buyout from IBM) at Havant in Hampshire, has also moved on to a virtual nil-subsidy footing within just months of the food court concept being opened last November.

"We had a £600,000 budget for the year March 1994 to March 1995 and we have taken more than £500,000 off that already. We are now pushing on with further reductions and are moving to zero subsidy," Julian Squire, GM's southern divisional director, told Caterer.

Margins have increased from less than £1,000 a week to more than £5,000, while labour costs have been cut from nearly £10,000 a week to just over £5,000.

"Following the success of this site we are now going all out on marketing the concept," he said. "We've already held four open days at Xyratex and shown about 180 clients and prospective clients around the food court."

Mr Squire said although the management of Xyratex was initially keen to look at introducing franchised outlets at the plant, Gardner Merchant chose to develop its own brands because of the flexibility they offered.

"We wanted to create a branding alternative, offering more choice than before but also giving us the flexibility to change the offering or the tariff policy," he said.

Five core brands are now on offer: Strollers Deli, Pizza Gusta, Traditions, Lincolns and Brunch Bar.

A further brand, a coffee shop concept, was also being developed and a brand called Oriental Express was about to be launched at another contract, said Mr Squire.

Carol Holt, brands manager for Gardner Merchant, said the company would also consider increasing its brands portfolio in future. "We are constantly looking to see what the next food fad is in the UK and we would produce a brand to fit it," she said.

Mr Squire admitted that introducing a foodcourt-style operation would not work for all staff feeding contracts but said large companies should consider the option. "This is not a panacea for all ills but it is a panacea for large staff feeding contracts," he said. "Companies must be prepared to make the initial investment - it can't be introduced on the cheap - but the savings are made thereafter."

He also challenged the branded offerings of the other contract catering giants and added: "Ours have tried and tested better."