Table of Contents
- Introduction
- The Evolution of Bestway's Foodservice Strategy
- Geographical Expansion: Opportunities and Challenges
- Product Range and Innovation
- Conclusion: A Purpose-Driven Transformation
- FAQ
Introduction
Every business strives to optimize its strategies to remain competitive and successful, particularly in the fast-paced foodservice industry. This post delves into the strategic overhaul at Bestway Wholesale, focusing on its foodservice offerings and geographical expansion plans. Whether you’re a business owner, a stakeholder in the foodservice industry, or simply interested in corporate strategy, this analysis will provide valuable insights into the purposeful and thoughtful approach Bestway is employing to drive its growth.
The Evolution of Bestway's Foodservice Strategy
Over the past decade, Bestway Wholesale has invested heavily in its foodservice segment. However, not all efforts yielded the expected results. Realizing the complexity and inefficiency of its broad-stroke approach, Bestway is now refining its strategy.
A Targeted Approach
Bestway’s managing director, Dawood Pervez, acknowledges the past strategies were overly broad and not always effective. The company is now focusing on three specific segments: fast food outlets, contracted work, and on-trade pub and bar supply. This approach is designed to eliminate complexity and cater more effectively to each segment’s unique needs.
Contracted Work Focus
One of the pillars of the new strategy involves bolstering its contract team. Bestway already has a significant number of contracts with institutions such as prisons and universities. Strengthening this aspect ensures a steady stream of business and builds on existing relationships.
On-trade Supply to Pubs and Bars
The success in providing supplies to Scottish pubs and bars has not gone unnoticed. Bestway plans to replicate this success across other regions. The company’s investment in this segment north of the border has shown promising results, and scaling this strategy could be a game-changer for other locations.
Fast Food Outlets Expansion
Bestway has identified fast food areas that have been performing well, such as Edgware Road in London, where catering sales surged by 50% in just eight months. To capitalize on these gains, regional managers with experience from leading companies like Booker and JJ Foodservice have been brought into the fold. Furthermore, the fast-food range is now stocked in key London depots including Lewisham, Hackney, and Croydon.
Geographical Expansion: Opportunities and Challenges
Addressing Urban Expansion
While Bestway has its eye on expanding into new locations, practical financial considerations cannot be ignored. Expanding into cities like Norwich and Bournemouth presents opportunities but also significant real estate challenges. Currently, the cost of real estate makes it less feasible, but this remains a future goal as financial circumstances potentially improve.
Depot Enhancements
Instead of spreading thin across too many new locations, Bestway is enhancing its existing depots to better serve current territories. This ensures improved logistics, inventory management, and service delivery which, in turn, bolsters customer satisfaction and operational efficiency.
Product Range and Innovation
Innovation in product offerings has been at the forefront of Bestway’s recent developments. This includes the evolution of its Best-one symbol proposition and the introduction of an own-label range designed to deliver strong margins for retailers.
Best-One Symbol Proposition
Bestway’s new own-label range encompasses over 160 products across impulse and grocery categories. These products have either been newly created or revamped, focusing on providing value to customers amid rising costs for various commodities like sunflower oil and cat litter. This range also boasts some unique offerings, such as own-brand washing powder, catering specifically to convenience retailers.
Margin and Value Focus
The primary goal of this new product range is to prevent customers from abandoning categories that are growing more expensive. According to Bestway’s category controller, Lisa-Jayne Hanson, the focus is on ensuring that retailers maintain strong margins while offering value to ensure customers do not look elsewhere for cheaper alternatives.
Conclusion: A Purpose-Driven Transformation
Bestway’s strategic revamp is both thoughtful and purpose-driven, focusing on refining its foodservice offerings and considering calculated expansions only where feasible. By enhancing its contract work, on-trade pub and bar supply, and fast food outlet segments, Bestway is setting itself up for targeted and efficient growth.
This strategic shift marks a significant transformation for Bestway, moving from a broad, often inefficient approach to a more focused and process-driven strategy. These changes not only benefit the business but also provide better service and products to its customers, reinforcing Bestway’s position in the market.
FAQ
What are Bestway's main focus areas in foodservice?
Bestway is focusing on fast food outlets, contracted work such as institutions, and on-trade pub and bar supply.
Why did Bestway refine its foodservice strategy?
The previous broad-stroke approach created complexity and inefficiency. The new targeted approach aims to cater more effectively to the specific needs of each focus area.
How is Bestway planning to expand geographically?
While expansion in cities like Norwich and Bournemouth is considered, high real estate costs currently make such expansions less feasible. Instead, Bestway is enhancing existing depots to improve service delivery.
What’s unique about Bestway’s new product range?
The new own-label range includes over 160 products designed to offer value and strong margins for retailers, including unique items like own-brand washing powder.
How does Bestway ensure its product margins remain strong?
By focusing on providing value amid rising costs of commodities and ensuring that customers do not opt-out of more expensive categories by choosing cheaper alternatives elsewhere.
Bestway’s strategic changes are setting the stage for sustained growth and efficiency, making it a compelling case study in effective corporate strategy transformation.
