Expert views on Diet Chef
Each country not only has a different taste for food but they have their own customs and every one has a unique national culture. If Kevin insists on careering into Europe he would be wise to bring some local talent into his team in each market, as I understand he has started doing in Germany. I find I need Scots to run our chain in Scotland and he will certainly need an Italian on board to have any chance of understanding how business works in Naples or Bologna.
Diet Chef has done well to create a significant turnover which is earning a decent profit. It is fine to dream where the business might be in 10 or 20 years time but there is no need to try and get there straightaway. It would be much better if Kevin concentrated on making the existing business even better, remembering that we are all in business to make money. By adding more UK turnover he is bound to add to the bottom line but a dash into Europe could bring more costs than revenue. In answer to Kevin’s question, I think, for the moment, he should stick to one European market and that market should be Britain.
Matthew Marriott, Commercial director, Hellmann Worldwide Logistics UK
The three key markets that Kevin wants to expand into are all completely different in terms of distribution and population densities. Servicing southern Italy with the bulk of food product it dispatches at one time would be costly and take up to four or five days to deliver from Milan.
A single distribution centre would, in my opinion, not work due to the variances in transit delivery and weather conditions. We have to think about the food hygiene levels connected to the weather and what is affordable in transport costs verses profit margin. I would recommend opening a distribution centre in Germany on the borders of the southern Benelux region; this could service all of Germany, Benelux, France and Milan.
As volumes grow, setting up a second centre in Lyon to service southern France faster, as well as Italy, is possibly a better strategy. Kevin is right that Amazon and companies of this level would not have the flexibility to manage Diet Chef’s business. It has a heavy product with specific standards so a more flexible third-party logistics provider would be required, and a smaller provider may well be better suited. But don’t discount outsourcing completely.
Online Diet Plans - News
Retail entrepreneur John Timpson and logistics expert Matthew Marriott give Diet Chef their advice on the online company's European expansion plans. I don't understand why Kevin is so keen to expand on the Continent when there must be so much to go for
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