PROVIDING OPPORTUNITIES TO LOCAL COMMUNITIES
BOOSTING EMPLOYMENT WITHIN NORTH AND MID WALES 02
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WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
BROGAN BAGGOT T w w w. g f u k . n e t
As KFC franchisee Gastronomy Foods leads the growth of the fast food in the UK, it has sought to retain its people focused culture whilst driving quality results
F
or over 70 years, Kentucky Fried Chicken, now popularised as KFC, has captured the hearts (and appetites) of its custom-
ers. Turning the restaurant industry on its head upon launching in the UK in the 1960s, the brand has become the second-largest restaurant chain worldwide, developing services and products 04
which are quick, high quality, and most importantly, so delicious that customers come back for more. Increasingly busy lifestyles have led to the exponential growth of the food and beverage industry, where it has amassed $90.173mn in revenue in 2018. KFC franchisee Gastronomy Foods has been part of the brand for over a decade, successfully enticing new and existing customers with mouth-watering products in alignment with local tastes and preferences, whilst housing a unique, people-focused culture. Behind the franchise’s ongoing success, owner Akram Khan’s passion for the brand is clear to see. From working as a part-time cook at the age of 16, his emphasis on excellent products and exceptional hospitality, with a focus on speed, has seen the brand recently amass a turnover of £52mn. With 15
“We made our first store one of the best in the country, and in a few years, we had doubled our weekly sales and had the highest year on year (YoY) growth of 12% over four years” — Akram Khan, Owner of Gastronomy Foods
handmade, in store. These are the things that really appealed to me. My aspiration was always to be the overseer of 200 people, working in our business,” he says. “I spent five years with that one particular store, starting off doing £6k a week in sales. We made the store one of the best in the country, and in a few years, we had doubled our weekly sales and had the highest year on year (YoY) growth of 12% over four years. My operating standards were also one
stores under his umbrella, seven
of the highest in the UK and Ireland, and in 2004
which are drive-through outlets, the
and 2005, I was recognised by YUM! Brands as
business has acquired a further 22
‘Franchisee of the Year.’
KFC drive-through outlets at
However, in order to develop the brand further,
£30mn. Now operating 37 KFC’s,
Khan created a shortlist of the franchisees’ that
Gastronomy Foods will aim to build
were planning to retire or sell their stores,
three more by the end of 2018.
targeting all areas in the UK. “One guy, based in the Midlands, North Wales
ORGANIC GROWTH
wanted to sell. He had seven stores in Shropshire
Primarily launching Gastronomy
and Shrewsbury and had run the business for
Food’s first KFC restaurant in
over 40 years. The stores all needed work but
Chingford, East London in 2002,
had great development potential,” he explains.
Khan was always inspired to give
Acquiring the seven stores in 2006, on top of
back to local communities and
the existing restaurant in Chingford, Gastronomy
enable his workers to succeed.
Foods has slowly built up its portfolio, spanning
“The thing I liked about KFC was the providence. Fresh chicken,
Rhuddlan, Aberystwyth, Stoke-On-Trent, Holyhead, Shropshire and Shrewsbury. w w w. g f u k . n e t
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Working alongside property company LARS Investments, the business now supports over 1,500 staff members. However, it has not all been plain sailing for Gastronomy Foods. The credit crunch in 2007 occurred as the company was in the middle of building its store in Aberystwyth and relocating two other stores. “I had been promised bank funding of close to £1mn, but the bank pulled the plug on the loan a week before I needed it,” explains Khan. “Nonetheless, I was determined to achieve my goals, so I borrowed as much as I could and managed to cover £600k and the rest through leasing equipment.”
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“ The thing I liked about KFC was the providence. Fresh chicken, handmade, in store.These are the things that really appealed to me” — Akram Khan, Owner of Gastronomy Foods
Click to watch: Gastronomy Foods, Corporate promo 07
Following a move to HSBC in 2011, the
stores and are spending a lot of time with
company has gone from strength to strength,
people like Google, Facebook and
where Khan now spends up to 40% of his
Amazon to see what technologies to
time driving the brand forward, and the
factor in and see how we can get our
remaining time at Gastronomy Foods.
products to customers in the most convenient way,” Khan says.
GROWTH OF CONVENIENCE
“This year, we will do 13 refurbishments,
As customers continue to turn to food
costing approximately £3mn. Getting our
outlets which can deliver food that is quick,
assets right is key, where we refurbish our
tasty and high quality, Gastronomy Foods
stores every five years. Bladon & Kirkham
has placed significant investment in
look after all our new store openings and
introducing new digital tools to support its
refurbishments and are fantastic.”
ongoing services. “We’re putting kiosks into 90% of our
Additionally, the company has added eight new Starbucks, fully diversifying its w w w. g f u k . n e t
portfolio and embracing brands that
four years and they do both our KFC’s and
evolve with its customers’ busy lifestyles.
Starbucks signage. They’re great guys to
“I looked at Starbucks versus Costa and went with Starbucks as I didn’t like the
A Trustee for the “KFC Foundation”
Costa brand and the provenance of their
charity, which donates around £2mn a year
coffee,” explains Khan.
to worthy causes in the UK like Children’s
“I like Starbucks’ principles and where
hospices etc., Khan strives to take people
their coffee comes from. With every cup of
on a personal and professional journey.
coffee, a percentage goes directly back to
“I took an Area Manager on, who had
farmers. So, again, the same kind of giving
previously worked for the company as
principle, providence, authenticity,
an operational auditor, and I made him
Starbucks had that people-focused
a shareholder as long as he helped to
approach.”
deliver our goals. That gentleman now
“We have worked with NIS over the past 08
work with and nothing is too much trouble.”
owns 20% of a £50mn business which is
£52mn Approximate revenue
2005 Year founded
1,500 Approximate number of employees
still growing,” he says. Gastronomy Foods has also become home to cooks which have worked their way to become shareholders, partners, managing directors and in Khan’s position – franchise owner. Internal, organic growth is clearly at the core of the business, where the majority of managers have been with the company for close to a decade. Placing heavy emphasis on the welfare of its staff, Khan remains keen to visit stores to gain essential feedback regarding new, fresh ideas to bring to fruition. “Some of our best ideas come from our staff in store, where the managers bring them forward. 09
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Click to watch: Akram Khan career background 10
We get a lot of feedback from our people on the ground because they know what’s going on and know how to get things done,” notes Khan. “KFC is situated in over 130 countries worldwide, so we also look at what’s worked well in different markets and share best practices and products to see what suits our market. “Our zinger double down is soon being launched. You have the double down, which is two pieces of fried chicken, double cheese, bacon, sauce and no bun. It’s really popular,” he continues.
“ I don’t believe in mediocrity. I want to be hero or zero, make me the villain or make me the hero, nothing in between” — Akram Khan, Owner of Gastronomy Foods
“Last year, people were saying,
advertising and comments across social media.
‘we want the zinger version of it’,
We are continuing to dispel some of those myths
which is amazing.”
around the use of processed food,” he says. KFC have also launched open kitchens across
CHALLENGING THE STATUS QUO
the UK, enabling customers to grab tickets and
Renowned across the food and
join the house kitchen, have a go at cooking at
beverage industry worldwide, KFC
various outlets and see how the brand operates.
is often in the limelight. Although the
Becoming one of the four franchisees who sit
recent furore surrounding the
on KFC UK and Ireland’s advertising board, and
brand’s change of UK delivery
appointed as Co-Chairman of KFC UK and
contractor from Bidvest to DHL led
Ireland’s Franchise Council, Khan has also
to what has been described as ‘The
become a company Director of KFC Advertising
KFC Chicken Crisis,’ Khan states
Board Ltd.
optimistically that it has bought a number of positives to the business. “I think a lot of people still don’t
“As part of the advertising board, we take 5% of our net sales and put it towards all kinds of advertising: TV and digital, as well as social
realise that we sell fresh chicken.
media. Any new product development also comes
This really came through in the
through this board, what we should and shouldn’t be launching. This can range from anything to do with the supply chain, operational issues, etc.,” he adds. Channelling strong values and principles, and adopting a cohesive family atmosphere, Gastronomy Foods seeks to make decisions collectively, enabling every employee’s voice to be heard. “It’s not about the bottom line. My lifestyle doesn’t change, whether I have 10 stores or 300 stores. My proudest achievement is how many people we look after,” notes Khan. “When we build a new store, I sit there and you think, ‘we wouldn’t be employing all of these w w w. g f u k . n e t
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FACTS
• KFC has become the second-largest restaurant chain worldwide, • The food and beverage industry has amassed $90.173mn in revenue in 2018. • KFC franchisee Gastronomy Foods has been part of the brand for over a decade, whilst housing a unique, people-focused culture. • Khan’s emphasis on excellent products and exceptional hospitality, with an emphasis on speed, has seen the brand amass a turnover of £16mn.
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• Gastronomy Foods has acquired a further 22 KFC drive through outlets at £30mn. • Operating 37 KFC’s stores, Gastronomy Foods will aim to build three more by the end of the 2018. • Khan launched his first KFC restaurant in Chingford, East London in 2002 • Gastronomy Foods has added eight new Starbucks, fully diversifying its portfolio and embracing brands that evolve with its customers busy lifestyles • Gastronomy Foods has become home to cooks which have worked their way to become shareholders, partners, managing directors and in Khan’s position — franchise owner • Khan routinely visits stores to gain feedback regarding new, fresh ideas
tradesmen and all of these different companies, if it wasn’t for putting ourselves on the line and saying yeah we’re going to do this, we’re going to borrow the money from the bank and we’re going to build this.’ “If you look at North and mid-Wales and the number of people that we employ, some places were really struggling,” he continues. “When we first opened Holyhead KFC down in Anglesey, 80% of our staff were long-term unemployed as there were no jobs. When people shake your hand and say, ‘thank you so much for this opportunity, I haven’t been able to find a job for the last three years’, that’s such a lovely feeling.”
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As Gastronomy Foods continues to expand, Khan will remain steadfast in providing the best quality services, products and results. Currently resting at 37 stores, Khan aims to reach £120mn turnover, with over 60 stores under his belt. “I want to try and do this with the same family values. I’ve seen companies get big and people don’t know who anyone is, that’s the bit I don’t like,” he adds. “I want to be the best at what I do, and I don’t care whether that’s mopping the floor or running a company. I don’t believe in mediocrity. I want to be hero or zero, make me the villain or make me the hero, nothing in between.”
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Gastronomy Foods UK Limited 1st Floor, KFC Earls Park, , Arlington Way, Battlefield Road, Shrewsbury, Shropshire SY1 4AB T +01743 460 206 | www.gfuk.net