Sweet Results from The Butler’s Pantry
But Management Critical of Conditions for Entrepeneurs.
Leading producer of gourmet ready-to-eat meals, The Butler’s Pantry enjoyed sales growth of 12% in 2003 9up to 405 % in some locations), a remarkable performance given that the national average for retail sales growth was just 4%. The customer base increased by 11% on 2002 – well over 120,000 people buy something from The Butler’s Pantry each year from its own 4 shops, before sales through other selected outlets are included. In addition, the company recorded satisfactory increases in both gross and net profits, despite a significant capital investment programme in brand development, the introduction of new product ranges and major shop refurbishments.
Employing 40 people, The Butler’s Pantry is the clear market leader in the overall ready meals sector which Bord Bia recently estimated to be worth more than 230 million euro per annum. The Butler’s Pantry is clearly positioned at the gourmet end of this spectrum and differentiates itself from competitors in its focus on high quality, hand prepared dishes and its use of only the freshest, seasonal ingredients.
“2003 was a challenging, year for The Butler’s Pantry, but we are happy that we met our objectives”, says Director, Jacquie Marsh. “This year was all about moving from a period of consolidation to one of expansion. We maintained the positive trends in terms of profitability and key performance indicators over the last three years of extraordinary development and expansion for a business of our size”.
Key priorities in 2003 included:
- Control of labour costs, while retaining and recruiting a high quality team to take the business forward to its next phase of expamsion
- Maintaining the highest standards of quality product and service, while volumes and sales were increasing rapidly
- Maintaining momentum in brand development, new product development
- Building brand awareness outside of oth greater Dublin area
- Securing ongoing sources of cost-effective funding
- Sourcing good artisan Irish produce to complement and extend The Butler’s Pantry range
The Butler’s Pantry has had a very mixed experience, however, when it comes to seeking support from Government agencies in expanding its business. Jacquie Marsh says: “ We have met all the challenges that a developing business meets in Ireland. We have received fantastic support from Bord Bia and their help has been instrumental in achieving our aims, particularly through their Brand Forum and Brand Development Assistance Programme over the past 18 months. But our experience with other government agencies which have a specific remit to promote and endorse Irish business and entrepreneur has been disappointing and extremely frustrating. We were not particularly in search of funding, but we did require technical expertise in certain areas such as Distribution and IT development, for example. Like all businesses in developmental mode, there is a degree of risk. In our experience, many of the agencies are very poor at risk assessment and they fail to identify potential business opportunities or put a value on entrepreneurship. They also fail to provide much real relevant support. Effectively, we have to do it all ourselves, in common with many other budding entrepreneurs and small Irish businesses. The structures are still not conducive to fostering and encouraging entrepreneurship.
In business for almost 20 years, The Butler’s Pantry continues to go from strength to strength. While Irish interest in Slow Food, organic food or even just good food may be considered by some to be a relatively recent phenomenon, The Butler’s Pantry has enjoyed year-on-year growth since its establishment in 1987. When it first opened, it was producing 12 meals per day. Today, under the guidance of Executive Chef Niall Hill (Canada-trained and recently chef at Rathsallagh House. whose appointment was another innovative move by the Butler’s Pantry in 2003)), that figure is now 1,500 freshly made meals per day.
The latest store opened in Sandymount in January and further expansion is planned for 2004. The Butler’s Pantry has also expanded its distribution channels and now sells a selection of its products through selected independent Retailers, symbol groups and , as well as the full range from its own shops. Additionally in 2003, the company completely overhauled its design and packaging, effectively relaunching the brand with an elegant new black look.
Winner in 2003 of the Food & Drinks Industry Small Business of the Year Award, the company prides itself not only on the quality of its food but also on its focus on creativity and innovation. New innovations in this past year include:
- Launch of a completely new range of children’s meals – My Nosh. This range includes dishes such as Mr. McGregor’s Pie, Pirates Pie and Italian Yo Yos. The meals are in child-friendly portion sizes yet made from exactly the same fresh, high quality ingredients as the classic adult meals.
- Launch of new look packaging
- The “Pantry Basics” range of hand prepared, own-brand dips, pasta sauces, salad dressings, tapenades and marinades
- A larger range of artisan breads and pastries which are aimed specifically at morning commuters.
The Pantry Basics and My Nosh ranges in particular is set for further expansion in 2004, reflecting customer demand.
“ Our new range of children’s meals was launched quietly at the end of 2003 ”, says founder Director, Eileen Bergin. “We recognised that there was a clear demand from customers for food they could trust for their children. We started initially with five products and we can barely keep us with demand! Parents may have less time nowadays to cook, our research shows that family mealtimes have become a rarer event. But parents still want fresh, nutritious food for their children. We’ve noticed that people are buying 4-6 meals at a time and putting them in the home freezer. The whole family can now eat from the Butler’s Pantry, knowing that they’re getting the best of seasonal produce, hand prepared, yet convenient enough for the whole family to eat together. That’s very encouraging. We want children to eat wholesome food and to experience real tastes and real flavours. Becoming a one stop shop for the whole family and enabling people to re-experience the important element of eating together gives us real pleasure”
Ms Bergin has also noticed that some of the children’s dishes have proved remarkably popular with male customers – Treasure Island and Pirate Pies (like their mothers used to make!) are flying out the door. Interestingly, an increasing demand for these nutritious but easy-on-the-tummy dishes has also been noticed from older people (a market segment growing significantly) and those convalescing from illness.
The Butler’s Pantry invests considerable time in listening to its customers – through customer focus groups, market research and day-to-day business. This information and feedback is a crucial element in ongoing development of the business. Many of the innovations during 2003 were driven by customers, including improvements to packaging, the introduction of the new children’s range and shop extensions, for example.
Customer research has also led to the introduction of “healthier options” meals, including salt- and flour-free dishes, while the ever more discerning Irish palate is catered for with an ever-expanding range of deliciously tempting Asian and Mediterranean –influenced dishes.
The Pantry Basics range will expand in line with the findings from focus groups which have asked for lots of new add-ons, from gift products to bring with or instead of the ubiquitous bottle of wine, to new relishes and chutneys to complement Butler’s Pantry dishes.
Ambitious plans for 2004 include:
- Opening two new shops - Sandymount has already opened in January and a further outlet is expected to open in the summer, marking The Butler’s Pantry’s first move to the north of the city
- Complete refurbishment of those existing stores which have not already undergone a redesign
- Continued expansion of the product ranges
- Expansion of the distribution channels with greater penetration outside Dublin
Eileen Bergin says: “One of the key priorities is continuing to source good Irish artisan products to complement our range. However, while there are numerous suppliers, many of them do not get to distribute or market their products outside their own areas. In addition, many of these smaller producers are simply being legislated to death; their businesses are swamped with EU directives which are designed for large scale manufacturing situations and are completely unsuitable for small artisan producers. The whole essence of this market will be destroyed if the prevailing approach from Brussels continues – and remains unchallenged by our own Government bodies”.
Eileen Bergin is a member of The Irish Slow Food Movement and is determined to ensure that Customers can have a selection of the finest artisan produced products in The Butler’s Pantry Shops
Consumer panels conducted in 2003 point out perhaps the greatest asset The Butler’s Pantry holds – trust. Customers believe in the business promise – “delicious food naturally” and are seeking new and additional products to complement the existing range. One challenge remains – customers still associate the brand with one or another of its key offers – it is still not known quite as a one-stop shop – yet. That is something which Eileen Bergin and Jacquie Marsh, along with their dedicated team – all of them “passionate about food” – intend to change in 2004.
< Back
