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The one thing Ferguson Plarre Chief Retail Officer Judd Sandwell has learned during the past two months is that Melbournians cant do without their coffee, even during a global pandemic.
When government restrictions took rein in March, most hospitality businesses were forced to close their doors or operate at takeaway or skeleton level. Victorian cake and bakehouse icon Ferguson Plarre contemplated the idea but was certain the state was heading to stage four lockdown, in which the business would be deemed an essential service. As such, it decided to keep its doors open, and it paid off. The bakehouse has seen a total 6 per cent total group growth rate and its coffee sales have not wavered.
Thankfully, weve come out of the situation OK, Judd says. Throughout March, the hospitality and food retail industry in particular, was brought to its knees. Like most businesses, we felt those rumblings. Our initial sales dropped 50 per cent. We couldnt serve dine-in. Some stores were worse off, some better than average, but people were still happy to grab a takeaway coffee.
At Ferguson Plarres head office the Melbourne suburb of Keilor Park, a COVID-19 Task Force team was quickly established to help activate a plan for franchisees to pivot and stay relevant in the changing market. Judd says almost daily communication with its franchise networks were key, as were video messages from its CEO, and countless Zoom meetings.
Probably the biggest thing we did that our competitors didnt, was keep our operations team on the road. They followed very strict social guidelines and visitation schedules with franchisees in their networks, but this way they felt extremely supported and connected to what was going on, and any changes they needed to execute, Judd says.
In-store, the 120-year-old bakehouse found ways to diversify its product range. It reduced the production of full-size celebration cakes its largest ticket item and instead created budget sized cakes, had each of its stores sign up to Uber Eats, made savory pie packs for lunch, and it paid off with each sales week better than the last.
We still have a lot of ground to make up, but now we are like-for-like in terms of sales at the same time last year, and thats largely thanks to our takeaway items, Judd says. Our business continues to grow. In many ways we were lucky because supermarket trading remained strong throughout the past few months. Many of our 80 stores are positioned or within foot traffic of supermarkets, in shopping centers, and on strips, allowing customers to easily stop past our shop with their trolley.
Prior to the lockdown, Judd says the iconic bakehouse was on a roll. It had put a lot of work into improving the consistency and quality of its coffee. Its Otto blend, named after the companys founder, Otto Plarre, won Gold at the 2019 Sydney Royal Fine Food Show.
In 2012, the Plarre family said goodbye to the Ferguson Family and started rebuilding the retail business. This has helped inject a new energy into the business, around its coffee and refreshed new look, and its resonated with our customers, Judd says.
Throughout the evolution has been dairy supplier Lactalis Foodservice, who Judd says has been extremely supportive.
Nothing is ever a hassle. Our Account Manager Katie Rice is fantastic. We couldnt be happier, he says.
Each of Ferguson Plarres store uses Pauls Professional Trim and Full Cream products, as well as its Zymil range.
Come 1 June, Ferguson Plarre is gearing up to reopen its doors again for restricted dine-in customers under social distancing guidelines.
We cant wait to see some our loyal, regular customers. We have people who have grown up with the brand. We are their weekly treat. They come in for vanilla slice with coffee and pie for lunch. Sadly, those customers are some of the most vulnerable at the moment, but when theyre ready to come back, we will be ready to welcome them with open arms, Judd says.
Its returning customer base is not the only thing the company is looking forward to. Ferguson Plarre is hoping to expand into New South Wales, and open another 10 stores this year.
We are proud to be a family owned and operated business. We treat each of our franchise partners like family and we cant wait to expand the family further in 2020, Judd says.
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