Supplier Under the spotlight
Q So, Fred, you're currently chief exec of 3663 First for Foodservice (to give the company its full name), but what was your first job?
A I was born on a farm and my first job was to feed the cattle on a Sunday morning when I was about seven. My father was a farmer on a big estate that belonged to Jack Barclay of Rolls-Royce fame. I kind of assumed I would be a farmer but my dad advised me against it, and so my first proper job was as a technician apprentice with British Leyland in Oxford. I worked on the Austin Cambridge and, by the time I left, they were working on the Maxi and the Morris Marina. I was part of the generation that brought the British motor industry to its knees!
Q What happened after that?
A I did several jobs, including working for the Ford Motor Company in South Africa. I joined Pullman Foods in 1988 as a regional director. Pullman was bought by Booker Food Service and I worked my way up as operational director, managing director and I became chief exec in August 1998. Booker Food Service was sold to Bidvest the following May.
Q Is that when it became known as 3663?
A That's right, a little while after. We had to rename the business because Booker wanted to keep the name "Booker" for its cash-and-carry operation. We had to move quickly; capture the moment and work out what the new business needed to be. It was an exciting period.
Q 3663 - strange name, isn't it?
A Well, as most people now know, 3663 spells "food" on a telephone keypad. The name met with mixed reactions to start with… But one thing's for certain, no one ignored it.
Q Who exactly is Bidvest?
A It's a South African multinational food service company, listed on the Luxembourg and Australian stock exchanges. It has operations in South Africa, Australia, New Zealand and now, with 3663, the UK.
Q When strangers ask about 3663, how do you describe it?
A It's a food service business, but most people don't understand what that is. We provide food and services to the hospitality industry. That means a whole range of activities, and this is the key to 3663. We have a central operating business, but we also have specialist teams: a multi-temperature division supplying groceries, non-foods, frozen foods, chilled foods, alcohol and confectionery; a frozen food division; a contract distribution division, serving specific operators such as Burger King and Pret A Manger; the MoD division, dealing with defence contracts and a catering equipment division.
Q Why so many different divisions?
A It makes it easier to concentrate on the customer. It's important to understand separate market sectors and the customers' needs.
Q Give me some numbers.
A We have 4,600 staff - drivers, everyone, the lot, and we have 35 depots in the UK. We operate a hub-and-spoke system. The smaller depots feed off the hubs. We have a fleet of 1,000 trucks nationwide.
Q The latest results are pretty good.
A Yes, I'm very pleased. When we were sold by Booker we were a £1b business, with an operating profit of 1.2% (£12m). In the results just announced for the year ending in June we had a £1.07b turnover, which was 7% up on the previous year, and a profit of £31.8m. That's an increase in operating profit of 26%.
Q Not bad.
A Not bad? It's bloody good. I don't mind saying it's been an underperforming company. We're now heading in the right direction.
Q What's the secret?
A People. Our greatest strength is our people. To run a business this size you need to get the buy-in from the staff about what you're doing. If you look after the people in a service business, if they feel good about what they do, they'll look after the customer.
Q Will you invest any of the profit in the business?
A Of course. We're investing in the infrastructure of the company. We've just finished a £1.8m refurb of the Salisbury depot; we're building a brand new depot in Nottingham, which will be on stream by the end of the year, and we're investing in the Southampton and Birmingham depots. We're also looking at new sites in Harlow, Essex, and Denny, Stirlingshire.
Q Long term, where's the business going?
A We're quite capable of growing organically, but we'll look at any acquisition opportunity that's an add-on for any of our divisions. We're looking at expanding the catering equipment side of things. We're also keen to expand in Europe and we keep a "watching eye" on the USA. From Australia we'll look for opportunities in the Pacific Rim.
Q But developing the company isn't just about growth, turnover and profit?
A No. Again, it's about the people. Our last employee survey got more than a 90% response from the staff. We've improved the company in the view of the employees every year for the past six years. Our staff turnover is now around 20% and we featured in the last Sunday Times "Top 100 Best companies to Work For" list. I'm also proud of the fact that we take a wider interest in the industry. We've raised over £250,000 for Hospitality Action.
Q Doesn't sound like you have any spare time for hobbies?
A Oh, I like rugby and motor racing and my wife Linda and I have a home in France, in the Loire valley. I also ride a Ducati 900 [motorbike].
Q You once told me you wanted to retire at 50. Is that still the case?
A I'm 52, so it doesn't look like it! The time to retire will define itself. At the moment I'm enjoying myself too much to think about it.
