A successful switch to a direct-to-consumer (DTC) operation, at a time when the hospitality sector was shutting down, enabled JJ Foodservice to post a small rise in revenue last year.
Over the 12 months to 31 December 2020, the group’s sales increased by 1.3% to £225m, bucking the general trend in the wholesale sector.
Before the pandemic, the majority of JJ Foodservice’s sales came from restaurants, cafés and pubs. However, this was lost overnight when the first lockdown came into force in March last year.
Chief Product Officer Sezer Ozkul revealed that within hours of the government announcement JJ had set up a fully operational DTC offer promoting ‘chef quality ingredients at home’ and ‘bulk savings when you buy big’.
“We dropped the minimum order from £125 to £79, kept our prices stable to promote fairness, and sustained product availability,” said Ozkul.
More than 30,000 people registered for the service, boosting the weekly number of orders from 24,000 to 34,000. “We were fulfilling 100% of orders and in record time,” said Ozkul.
In the weeks that followed, a dozen smaller vehicles were introduced to help drivers navigate narrow residential streets.
While rolling out home service, JJ continued to support restaurants and pubs offering a takeaway or delivery service. “It was all hands on deck,” said Ozkul.
“While the rest of the industry was in serious decline, we kept going. It’s a tremendous achievement for our team.”
NAM Implications:
- Speed in changing direction can make a difference.
- As evidenced in JJ move to a DTC offer promoting ‘chef quality ingredients at home’ and ‘bulk savings when you buy big’.
- The key issue will be the direction of the business post-Lockdown…
