1. Wholesale Exec Summary: Delivered- Foodservice
Source: him! Wholesale Programme 2015

2. This Executive Summary will explore: Context: Route to Market Pre purchase – Influencing purchases before order Point of purchase – Influencing at point of order Next purchase – how do we drive loyalty
Source: him! Wholesale 2015

3. him! Wholesale methodology is built around the ‘customer’ journey for the foodservice operator
Pre Purchase
Point of Purchase
Next Purchase
Food service Tracker
– 500 food service operators interviewed via telephone twice a year
1,168 food service customers of Booker, Bidvest Foodservice and Brakes were interviewed via telephone
Mixture of food service tracker & telephone research
Source: him! Wholesale 2015

4. This Executive Summary will explore: Context: Route to Market Pre purchase – Influencing purchases before order Point of purchase – Influencing at point of order Next purchase – how do we drive loyalty
Source: him! Wholesale 2015

5. The overall potential customer base
RTM
Distribute to:
330, 000 foodservice businesses
72,000 retail grocery stores
Total Wholesale industry generates:
£30.3bn in turnover
Source: FWD - The Whole Story: Wholesale distribution, the high street, consumers and the national economy 2014

6. Caterers still primarily using traditional delivered RTM
Indies
Cash & Carry
Delivered
Symbols
Online
Source: him! Foodservice Tracker 2015

7. Most food service operators are still not embracing ‘online ordering’
RTM
Which RTMs have you used in the last two months:
Source: him! Foodservice Tracker 2015

8. % of total goods sourced from RTM (foodservice operator type)
Delivered wholesale captures majority of food service spend, as well as footfall.
RTM
% of total goods sourced from RTM
% of total goods sourced from RTM (foodservice operator type)
Source: him! Foodservice Tracker 2015

9. # of different companies used to supply goods & services
Food service operators are using FOUR companies to supplier their goods/services
RTM
Foodservice average
Pub/bar
Restaurant
Café / coffee shop
Hotel
4.0
2.9
4.3
3.6
5.5
# of different companies used to supply goods & services
How many different companies do you use to supply goods and services to your business?
Source: him! Foodservice Tracker 2015

10. This Executive Summary will explore: Context: Route to Market Pre purchase – Influencing purchases before order Point of purchase – Influencing at point of order Next purchase – how do we drive loyalty
Source: him! Wholesale 2015

11. Pre Shop: How to influence purchases before caterers place their order!
Source: him! Wholesale 2015

12. If you want your product bought – get on their list!
Pre-Shop
76%
(lower than retailers)
Pub/bar
Restaurant
Café
Hotel
67%
76%
83%
78%
of caterers create a shopping list…
Most caterers are PLANNERS. The most effective way of influencing purchase is pre-point of purchase!
Making it onto their order is harder once the list is written!
Source: him! Wholesale 2015 – Foodservice Tracker

13. How do they create their lists?
Pre-Shop
HOW are lists created?
WHAT goes on the list?
70%
85%
write exact product & quantity (e.g. 50 x Dairy Milk 49g)
check their stock room & write what is low on stock
10%
10%
write exact brand & quantity (e.g. 50 x Cadbury)
Use EPOS
Source: him! Wholesale 2015 – Foodservice Tracker

14. Public awareness is VITAL
Influencing SHOPPER DEMAND is the most effective way of getting on a shopping list
Pre-Shop
What influences what you put on your shopping list? #1 #2
56%
20% #3
Shopper demand 9%
In-depot activity
Public awareness is VITAL
Sales reps
Source: him! Wholesale 2015 – Foodservice Tracker

15. How can we make list creation easier?
Pre-Shop
Source: Convenience Store
Source: him! Wholesale 2015

16. HOW do they like to receive the information?
Pre-Shop
Preferred comms mechanic is . Most caterers are still slow to respond to new, emerging forms of comms e.g texts / apps
45%
Phone
27%
Direct mail
24%
Face to face
20%
Text / App 2%
Source: him! Wholesale 2015

17. Wholesalers with apps report strong growth
Pre-Shop
“The result has been positive - we’ve already seen a significant increase in basket spend”
JJ Foodservice
National wholesaler JJ Food Service has launched a smart app, available for android phones, iPhones and tablets, to speed up service for its retailer, restaurant and hotel customers.
The app employs machine learning technology to make suggestions based on previous shopping habits, resulting in a quicker, more efficient ordering.
Chief operating officer Mushtaque Ahmed said: “We used three years’ worth of transactional data to train the new machine learning model. Now, you can literally place your order in seconds.
“The result has been positive - we’ve already seen a significant increase in basket spend”, he added.
A different mobile app has also been created for drivers, replacing the formerly-used bulky hand-held devices while Bluetooth temperature sensors have been added to the multi-temperature vehicles enabling the business to track real-time data via drivers’ phones.
“We are reshaping the way food distribution works, giving our customers more time to better serve their customers,” Ahmed added.
Online orders now account for 63% of the group’s sales.
Source: him! Wholesale 2015

18. And c.1/3 caterers are visiting wholesaler websites
Pre-Shop
53%
35%
say NOTHING would encourage them to visit a wholesalers website!
of delivered wholesale caterers order online vs telephone
24%
prices & promo info is what they’re primarily looking for on websites
is attracting the most customers to its website 6%
are looking for menu ideas & also food/drink trends
Source: him! Wholesale 2015

19. What information are caterers looking for?
Best sellers info is the advice most in demand
Pre-Shop
What information are caterers looking for?
Source: him! Wholesale 2015

20. Source: him! Wholesale 2015 – Delivered Foodservice
Despite having a shopping list, there is a HUGE opportunity to influence caterers at point of purchase
Pre-Shop
30% open to influence at point of purchase
Source: him! Wholesale 2015 – Delivered Foodservice

21. This Executive Summary will explore: Context: Route to Market Pre purchase – Influencing purchases before order Point of purchase – Influencing at point of order Next purchase – how do we drive loyalty
Source: him! 2015

22. Who is the delivered caterer shopper and what mission are they on?

23. Source: him! Wholesale 2015 – Delivered Foodservice
Delivered wholesale attracts a very different foodservice customer vs cash & carries
At-Shop
What type of caterers are shopping in depot vs delivered?
Source: him! Wholesale 2015 – Delivered Foodservice

24. Flexibility is needed, rather than a one-size fits all model
At-Shop
What type of caterers are shopping at each wholesaler?
Pubs, cafes and takeaways contribute the biggest footfall – but if differs considerably by wholesaler.
Source: him! Wholesale 2015 – Delivered Foodservice

25. Which foodservice outlets are using delivered wholesale?
In-Shop
37% are managers
18% head chef
14% owner
They cater for…
Averaging 130 customers/day
Receive deliveries
1.9 times/week
vs 1.9 last year
(no change)
Source: him! Wholesale 2015 – Delivered Foodservice

26. It is my MAIN SHOP to re-stock my whole outlet
Caterers are use delivered wholesale for only two key shopping missions
In-Shop
TWO main missions
It is my MAIN SHOP to re-stock my whole outlet
To buy some items to TOP-UP stock on certain categories
MAIN SHOP
TOP UP PLANNED
Source: him! Wholesale 2015 – Delivered Foodservice

27. Delivered wholesale is primarily about ‘main shop’
TOP UP PLANNED
TOP UP DISTRESS
MAIN SHOP
58%
Main Shop Mission
35%
On a Top Up Mission 3%
Distressed Mission
Delivered customers:
17%
Main Shop Mission
61%
On a Top Up Mission
12%
Distressed Mission
Cash & Carry customers:
Source: him! Wholesale 2015 – Delivered Foodservice

28. Understanding customer priorities when ordering
Source: him! 2015

29. Primary needs are as wide ranging as ever!
Importances
Delivered caterers importances (rating /10)
Primary needs
Secondary needs
Q: how important are the following for you in this store here today?
Source: him! Wholesale 2015 – Delivered Foodservice

30. However, there continues to be a lag in how satisfied caterers are against many primary needs
Importances
Importances vs Satisfaction
Primary needs
Secondary needs
NB: This remains constant between 2014 and 2015
Source: him! Wholesale 2015 – Delivered Foodservice

31. Improving CONVENIENCE: availability & reliability
Source: him! Wholesale 2015

32. There is a need for major improvement in unfulfilled orders
Importances
On average, every one in five deliveries turns up with items missing or crossed off!
Slight increase on last year 1.0 vs still room for improvement
Availability
When caterers are using delivered routes for convenience purposes – an underachievement on basic desires can lead to dissatisfaction
(= lost sales and waning loyalty)!
Source: him! Wholesale 2015 – Delivered Foodservice

33. Missing key categories could be massively impacting revenue
Importances
How much do you typically spend on each of the following categories for your outlet in a typical week in TOTAL?
£630
Alcoholic Drinks
£326
Fresh produce
£267
Tinned/Packaged Groceries
£244
Chilled Foods
£240
Frozen
Confectionery
& sweet snacks
£238
£226
Crisps & Snacks
£221
Soft Drinks
£155
Bakery
Source: him! Wholesale 2015 – Delivered Foodservice

34. There is still room for improvement in reliability too
Importances
On average, every one in five deliveries turns up late!
Reliability
No change YoY
When caterers are using delivered routes for convenience purposes – an underachievement on basic desires can lead to dissatisfaction
(= lost sales and waning loyalty)!
Source: him! Wholesale 2015 – Delivered Foodservice

35. Influencing during the order process
Source: him! Wholesale 2015

36. A REMINDER: Nearly ONE THIRD can be influenced during an order!
30% open to influence at point of purchase
Opportunity for wholesalers to use their telecoms salesforce & website to inspire the customer
Source: him! Wholesale 2015 – Delivered Foodservice

37. Room for improvement in telesales influence?
Please rate the telesales staff from this wholesaler on the following? (Out of 10)
Source: him! Wholesale 2015 – Delivered Foodservice

38. Opportunity to influence online
LESS likely to have a budget
28% vs 39% who order via phone
LESS likely to stick to the budget
25% stick to it most of the time vs 47% who order via phone
MORE likely to buy on promotion
23% have bought something on promotion on 5 out of the last 5 orders (vs 17% telephone)
Find online ordering process easy
81% rate the online ‘ordering process’ as excellent (8+/10)
Are we capitalising on this?
Source: him! Wholesale 2015 – Delivered Foodservice

39. This Executive Summary will explore: Context: Route to Market Pre purchase – Influencing purchases before order Point of purchase – Influencing at point of order Next purchase – how do we drive loyalty
Source: him! Wholesale 2015

40. A REMINDER: Food service operators are using FOUR companies
RTM
Foodservice average
Pub/bar
Restaurant
Café / coffee shop
Hotel
4.0
2.9
4.3
3.6
5.5
# of different companies used to supply goods & services
How many different companies do you use to supply goods and services to your business?
Source: him! Foodservice Tracker 2015

41. Improving loyalty requires work on price perception
63% of caterers who use the delivered method, use at least one other wholesaler, as well, in a typical week.
WHY..?
1. “I like to shop around”
2. “I use my local cash & carry when I need something urgently as it’s easier”
3. “It’s too expensive on certain categories”
Source: him! Wholesale 2015 – Delivered Foodservice

42. Even in the most loyal categories, there is still a fair amount of shopping around
What percentage of your total purchases for the following categories are bought from here?
Categories caterers are most likely to shop around for
Categories caterers are least likely to shop around for
As mentioned previously, reliability and availability must be achieved to improve loyalty – particularly in short-shelf life produce.
Fresh lines are where caterers are most likely to shop around – as outlets need to restock quickly and at short notice
Source: him! Wholesale 2015 – Delivered Foodservice

43. How to ensure shoppers keep coming back? Make it easy!
Correlation analysis: satisfaction ratings vs likelihood to recommend
Source: him! Wholesale 2015 – Delivered Foodservice

44. Using leaflets to communicate effectively
Source: him! 2015

45. Delivered caterers are more influenced by brochures
Cash & Carry Caterers
Delivered Caterers
60% of caterers have received a wholesaler brochure
82% of caterers have received a wholesaler brochure
47% of C&C caterers are influenced to choose a wholesaler based on receiving a brochure pre-shop
66% of delivered caterers are influenced to choose a wholesaler based on receiving a brochure pre-shop
Source: him! Wholesale 2015 – Delivered Foodservice

46. Consider every point in the path to purchase: Pre purchase – Influencing purchases before order Point of purchase – Influencing at point of order Next purchase – how do we drive loyalty
Source: him! 2015

47. For more information please contact: