SOFHT Annual Lecture 2009

26/11/2009, The Landmark Hotel, 222 Marylebone Road, London

Over the years the Society's Lecture has gained a reputation for covering highly topical subjects and this year, was no exception. Our high profile Speaker Ken McMeikan, Chief Executive of Greggs plc presented the SOFHT Lecture entitled ‘Driving Success in Uncertain Times’.

“Driving success in uncertain times”
By Ken McMeikan, Chief Executive of Greggs plc

*** DRIVING SUCCESS SLIDE

JONATHAN, THANK YOU FOR THAT INTRODUCTION. IT WAS VERY KIND OF YOU TO INVITE ME HERE TODAY.

OVER THE NEXT 25-30 MINUTES I INTEND TO SHARE WITH YOU SOME OF MY THOUGHTS ON HOW INDIVIDUALS CAN DRIVE SUCCESS DESPITE UNCERTAIN TIMES.

I AM AWARE THAT SOME OF YOU HERE TODAY MAY NOT BE FAMILIAR WITH GREGGS; SO LET ME START BY TELLING YOU SOMETHING ABOUT THE COMPANY AND THEN I WILL MOVE ON TO DESCRIBE SOME OF THE MANY THINGS I BELIEVE YOU CAN AND MUST DO IF YOU ARE GOING TO BE SUCCESSFUL IN MOMENTOUS TIMES LIKE WE ARE FACING TODAY.

GREGGS IS A VERY SPECIAL COMPANY. ONE THAT HAS DEVELOPED FROM BEING A FAMILY RUN BAKERS IN THE NORTH EAST TO BECOMETHE LARGEST BAKERY RETAILER IN THE UK AND I WOULD ARGUE THE NATION’S MOST LOVED.

TODAY THERE ARE MORE THAN ONE THOUSAND FOUR HUNDRED SHOPS ACROSS THE COUNTRY, 10 MAJOR BAKERIES, A SAVOURY MANUFACTURING PLANT IN NEWCASTLE AND 19,000 STAFF SERVING A MILLION CUSTOMERS EVERY DAY.

*** GOSFORTH SHOP SLIDE

THE COMPANY STARTED SEVENTY YEARS AGO IN GOSFORTH, NEWCASTLE AND THEN OPENED ITS FIRST BAKERY SHOP IN 1951.

THE FOUNDER JOHN GREGG DIED SUDDENLY IN 1964 AND HIS TWO SONS IAN AND COLIN CAME OUT OF STUDYING LAW AND BUSINESS TO HELP THEIR MOTHER RUN THE COMPANY.

FROM 1964, THEY GREW THE COMPANY FROM THAT SINGLE SHOP IN GOSFORTH THEN INVESTED IN A MAJOR BAKERY SUPPORTING MANY MORE SHOPS ACROSS THE NORTH EAST BEFORE EMBARKING ON SIGNIFICANT EXPANSION OVER THE NEXT FOUR DECADES.

*** GREGGS BAKERY SHOP SLIDE

• IN THE 1970’S GREGGS EXPANDED INTO LEEDS, MANCHESTER & SCOTLAND

*** BREAD IN SHOP SLIDE

• THEN IN THE 1980’S FURTHER ACQUISITIONS SAW GREGGS MOVE INTO BIRMINGHAM, WALES & LONDON
• IN THE 90’S THE ACQUISITION OF BAKER’S OVEN DOUBLED THE SIZE OF THE COMPANY OVERNIGHT ADDING 424 SHOPS FOLLOWED BY OTHER SMALL REGIONAL ACQUISITIONS IN SCOTLAND, CUMBRIA AND THE MIDLANDS

*** EXPANSION OVER THE DECADES SLIDE

• IN 2003 THE COMPANY TENTATIVELY VENTURED INTO EUROPE WITH THE OPENING OF A SHOP IN BELGIUM WHICH GREW TO TEN BY 2008.

BUT IN 2006 IT WAS BECOMING CLEAR THAT GREGGS HAD GROWN SO MUCH THAT IT NEEDED TO CHANGE FROM BEING A DECENTRALISED BUSINESS TO A CENTRALLY RUN ONE.

*** A NEED TO CHANGE SLIDE

IT WAS CLEAR THAT RUNNING THE BUSINESS AS ELEVEN INDEPENDANT DIVISIONS, BASED ON GEOGRAPHY, WAS NOT GOING TO GUARANTEE SUCCESS FOR THE FUTURE – IT NEEDED TO CHANGE AND HERE IS A CRITICAL LESSON FOR ALL BUSINESSES AND LEADERS. – KNOW WHEN IT IS THE RIGHT TIME TO CHANGE AND FACE INTO THE TOUGH DECISIONS REQUIRED TO MAKE THE CHANGE, WHILST THE BUSINESS IS STILL DOING WELL.

AND SO SOME KEY DECISIONS WERE TAKEN:

• FIRST – THE COMPANY NEEDED TO BECOME SIMPLER TO RUN
• SECONDLY – IT NEEDED TO UNDERSTAND ITS CUSTOMERS EVEN BETTER
• AND THIRD – IT NEEDED TO MAKE GREGGS SHOPS MORE ACCESSIBLE TO MORE CUSTOMERS FASTER, AS OVER HALF OF THE UK POPULATION STILL COULDN’T SHOP AT GREGGS AS THERE WASNT ONE NEAR THEM.

LET ME EXPLAIN A BIT MORE ABOUT HOW THE COMPANY HAD BEEN RUN UPTO THIS POINT THOUGH.

HISTORICALLY EACH GREGG’S DIVISION WAS SELF CONTAINED. EACH DIVISION HAD CIRCA 150 SHOPS AND THEIR OWN BAKERY.

IT WAS RUN BY ITS OWN MANAGING DIRECTOR, WITH THEIR OWN PROMOTIONS, MARKETING AND TEAMS OF PEOPLE. WE THEREFORE EFFECTIVELY HAD ELEVEN INDEPENDENT BUSINESSES DOING DIFFERENT THINGS.

THIS INCLUDED THE BAKERIES; EACH ONE HAD ITS OWN RECIPES WHICH RESULTED IN SIGNIFICANT REGIONAL VARIATION.

FOR EXAMPLE, WE USED TO HAVE 19 DIFFERENT SAUSAGE ROLLS!!! THE COMPLEXITY THIS BROUGHT INTO THE BUSINESS WAS SIGNIFICANT BUT ALSO PREVENTED US FROM LEVERAGING THE BENEFIT OF NATIONAL ADVERTISING AND BUYING.

TODAY WE HAVE HARMONISED ALMOST 80% OF OUR PRODUCT RANGE. IMPORTANTLY THIS MEANS THAT A CUSTOMER CAN ENJOY THE SAME PRODUCTS WHICHEVER GREGGS THEY SHOP IN AROUND THE COUNTRY.

WE HAVE HOWEVER KEPT 20% OF THE PRODUCT RANGE WITH LOCAL AND REGIONAL FAVOURITES. FOR EXAMPLE, WE SELL PARKIN - A GINGER CAKE WITH A SOFT DARK TOPPING, IN YORKSHIRE, TOTTENHAM CAKE – A SPONGE CAKE WITH PINK ICING IN LONDON, AND STOTTIES – A TRIANGLE FLAT BREAD IN THE NORTH EAST. IT IS IMPORTANT THAT OUR LOYAL CUSTOMERS CAN CONTINUE TO ENJOY THESE LOCAL LINES.

AND YOU WILL BE PLEASED TO HEAR, WE NOW HAVE ONE SAUSAGE ROLL RECIPE!!!

MANY OF OUR CUSTOMERS ARE FREQUENT SHOPPERS, AND OVER 50% OF THEM VISIT US MORE THAN TWICE A WEEK. OUR CUSTOMERS COME FROM ALL GENERATIONS FROM CHILDREN TO PENSIONERS. 50% OF OUR CUSTOMERS ARE WOMEN. WE HAVE A BROAD APPEAL FROM BUILDERS TO BARRISTERS; GREGGS MAY BE CLASSLESS BUT WE BELIEVE IT IS A CLASS ACT.

THE SHOPS HAVE EVOLVED IN RECENT YEARS FROM THE TRADITIONAL BAKERY SHOP TO A VARIETY OF FORMATS INCLUDING THOSE WITH CAFES AND THOSE WHERE CUSTOMERS WORK AND TRAVEL.

*** GARAGE AND RETAIL PARK SLIDE

WE NOW HAVE SHOPS IN GARAGE FORECOURTS, RETAIL PARKS

*** AIRPORT AND INDUSTRIAL ESTATES SLIDE

AIRPORTS, INDUSTRIAL ESTATES,

*** UNIVERSITY AND KIOSK SLIDE

UNIVERSITIES, SHOPPING CENTRES ,

*** HOSPITAL SLIDE

AND HOSPITALS.

AND WE HAVE JUST ANNOUNCED OUR PLANS TO OPEN, ACROSS THE UK, A FURTHER 600 NEW SHOPS.

*** FROM WHEAT TO EAT SLIDE

IN ORDER TO SUPPLY THESE SHOPS, AS WELL AS OUR 10 REGIONAL BAKERIES WE RELY ON OUR CENTRAL SAVOURY PLANT WHICH PRODUCES OVER 10 MILLION SAVOURIES EVERY WEEK. OUR MOST POPULAR LINE IS OUR FAMOUS SAUSAGE ROLL, SELLING 135 MILLION OF THEM A YEAR – THE GOOD NEWS IS THAT’S TWO FOR EVERY SINGLE PERSON IN THE UK.

OUR PRODUCTION UNIT IS ONE OF THE MOST MODERN PLANTS OF ITS KIND IN EUROPE AND WE ARE NOW PLANNING TO EXTEND IT OR ‘BUILD A SECOND PLANT IN ORDER TO KEEP UP WITH OUR GROWTH PLANS.

FROM ‘WHEAT THROUGH TO EAT’. WHAT MAKES GREGGS DIFFERENT TO VIRTUALLY ALL OF OUR COMPETITORS IS THAT WE MAKE NEARLY 90% OF THE PRODUCTS THAT WE SELL OURSELVES. THE OTHER 10% OF SALES COMING FROM DRINKS AND CRISPS.

IT IS RARE TO FIND A FOOD RETAILER THAT MAKES THE MAJORITY OF THEIR PRODUCTS THEMSELVES. WE BELIEVE THIS IS ONE OF THE UNIQUE POINTS OF DIFFERENCE AT GREGGS.

HAVING GIVEN YOU SOME UNDERSTANDING OF GREGGS, LET’S ASK OURSELVES ABOUT THE MARKET PLACE AND THE UNCERTAIN TIMES WE ALL FACE.

NO BUSINESS IS COMPLETELY IMMUNE FROM THE CHALLENGES OF RECESSION AND I WOULD LIKE TO TAKE YOU BRIEFLY THROUGH WHERE I THINK THE ECONOMY IS AND WHY I BELIEVE IT IS STILL POSSIBLE TO DRIVE SUCCESS IN UNCERTAIN TIMES.

*** RECESSION GRAPH SLIDE

WE HAVE EXPERIENCED THE WORST RECESSION FOR OVER FIFTY YEARS.

• THE DEBT THAT THE UK NOW FACES IS TOO BIG TO DEAL WITH QUICKLY
• THERE WILL BE A LONG TERM BURDEN ON THE UK CONSUMER AND THE ECONOMY
• GOVERNMENT SPENDING HAS TO REDUCE
• TAX INCREASES SEEM UNAVOIDABLE
• FURTHER JOB LOSSES ARE LIKELY
• A SECOND PUBLIC SECTOR LED RECESSION IS POSSIBLE
• THEREFORE WHAT IS NOW PROBABLE IS A LONG PERIOD OF LOW GROWTH

*** MAKING CUSTOMERS AND STAFF THE PRIORITY SLIDE

MY MAIN CONCERN IS FOR OUR CUSTOMERS AND OUR STAFF AND HERE IS ONE OF THE KEY AREAS WHERE WE CAN ALL DRIVE SUCCESS IN UNCERTAIN TIMES:

AT GREGGS OUR 6 MILLION CUSTOMERS PER WEEK HAVE BEEN IMPACTED BY THE RECESSION. OUR AIM IS TO HELP THEM MAKE THEIR MONEY GO AS FAR AS POSSIBLE. CUSTOMERS NEED TO TRUST THAT WHEN THEY CHOOSE TO SPEND THEIR MONEY WITH US, THEY ARE GETTING NOT ONLY A GREAT PRICE BUT A QUALITY PRODUCT.

THIS IS WHAT VALUE MEANS TO PEOPLE AND WE HAVE A GREAT VALUE REPUTATION, BUT WE KNEW WE HAD TO KEEP DOING MORE TO KEEP THIS. SO WE INTRODUCED 99P SANDWICHES, MEAL DEALS, LOWER PRICED BAGUETTES, MUFFINS WHICH WERE HALF THE PRICE OF STARBUCKS, COFFEE 45% CHEAPER THAN COSTA AND WE’LL KEEP DOING MORE.

WE EMPLOY OVER 19,000 PEOPLE; AND THEY HAVE ALSO BEEN IMPACTED BY THE RECESSION IN THEIR PERSONAL LIVES AND SO HAVE THEIR FAMILIES.

WE BELIEVE THAT ONE OF THE PRIMARY RESPONSIBILITIES THAT LEADERS HAVE IS TRYING TO SECURE AS BEST WE CAN EMPLOYMENT FOR OUR PEOPLE AND ALSO CREATE NEW JOBS TO CREATE PROSPERITY.

THIS WEEK I ATTENDED THE CBI CONFERENCE WHICH WAS ADDRESSED BY GORDON BROWN, DAVID CAMERON AND NICK CLEGG. THEIR POLICIES MAY BE A LITTLE DIFFERENT BUT ALL THE LEADERS AGREED THAT 2010 WILL BE ANOTHER TOUGH YEAR FOR US ALL.

SO WHAT ELSE CAN YOU DO IN UNCERTAIN TIMES TO DRIVE FOR SUCCESS? I BELIEVE A CRITICAL STARTING POINT FOR EVERYTHING WE DO, SHOULD BE OUR CUSTOMERS.

AS WE WENT INTO RECESSION I MET MANY OF OUR CUSTOMERS AND I WROTE TO 70,000 OF THEM THAT ARE REGULARLY IN TOUCH WITH US. I ASKED THEM WHAT THEY THOUGHT OF THE BUSINESS AND THE PRODUCTS WE OFFER. I RECEIVED A FANTASTIC RESPONSE WITH OVER 10,000 COMMENTS COMING BACK.

THIS WAS A GREAT WAY OF GETTING TO KNOW WHAT THEY LIKED ABOUT GREGGS, AS WELL AS AREAS WHERE WE COULD DO BETTER.

WHAT THEY TOLD ME WAS THEY LOVED OUR PRODUCTS AND IN PARTICULAR THEY LIKED:

*** TASTE, JUST MADE, QUALITY, VALUE SLIDE

• THE GREAT TASTE
• THE FANTASTIC ‘JUST MADE’ FRESHNESS
• THE GREAT QUALITY
• AND REALLY GOOD VALUE FOR MONEY

THEY ALSO CONFIRMED THEY REALLY APPRECIATE THE FRIENDLY SERVICE WE PROVIDE.

BUT THEY ALSO WANTED TO SEE SOME IMPROVEMENTS OR CHANGES

THE TOP FOUR AREAS WERE:

*** HOT SANDWICHES, NPD, HEALTHY PRODUCTS, LABELLING SLIDE

1. INTRODUCE HOT SANDWICHES
2. MORE NEW LINES
3. EXPANSION OF OUR RANGE OF HEALTHY PRODUCTS
4. AND NUTRITIONAL LABELLING

WE HAVE WORKED ON THESE EXTENSIVELY THROUGHOUT 2009 AND HAVE ACHIEVED A GREAT DEAL:

1. HOT SANDWICHES ARE NOW IN 200 OF OUR SHOPS

2. WE HAVE PUT A LOT OF TIME INTO NEW PRODUCT DEVELOPMENT AND THIS YEAR IT HAS DRIVEN 23% OF OUR SALES SO FAR THIS YEAR

3. ON HEALTH, WE NOW HAVE A RANGE OF 8 MAYO FREE SANDWICHES.

WE HAVE REMOVED HYDROGENATED FATS AND OILS FROM OUR PRODUCTS.

WE ARE ALSO REMOVING ALL ARTIFICIAL COLOURS FROM THE PRODUCTS THAT WE MAKE BY THE END OF DECEMBER AND ARTIFICIAL FLAVOURS WILL BE REMOVED IN THE NEXT SIX MONTHS.

4. WE ARE INTRODUCING NUTRITIONAL LABELLING IN JANUARY 2010. THERE WILL BE LEAFLETS IN THE SHOPS FOR CUSTOMERS TO TAKE AWAY AND READ AND AS A MINIMUM THERE WILL BE CALORIE INFORMATION DISPLAYED ON ALL SANDWICH AND DRINKS LABELS.

CUSTOMER NEEDS DRIVE EVERYTHING WE DO. WE CONTINUE TO SEEK THE VIEWS OF OUR CUSTOMERS THROUGH ONGOING RESEARCH DESIGNED TO ENSURE THAT WE UNDERSTAND AND ARE RESPONDING TO THEIR CHANGING NEEDS. KNOWING YOUR CUSTOMER IS ESPECIALLY IMPORTANT IN THESE UNCERTAIN TIMES.

*** MEASURING SUCCES BEYOND THE BOTTOM LINE? SLIDE

I BELIEVE HOWEVER THAT THE SUCCESS OF A COMPANY SHOULD BE JUDGED ON MORE THAN JUST SALES AND PROFITS. SUCCESS SHOULD BE MEASURED IN WHAT PEOPLE THINK ABOUT WORKING FOR YOUR COMPANY AND ALSO YOUR REPUTATION OUTSIDE OF THE COMPANY.

OUR AMBITION IS TO BE ‘THE BEST IN BAKERY’ AND FOR GREGGS THIS MEANS:

BEING THE BEST FOR OUR PEOPLE, SO THEY CAN FEEL PROUD THAT THEY ARE WORKING FOR A RESPONSIBLE COMPANY AND ONE THAT CARES. AT GREGGS WE BELIEVE THAT THIS IS CRITICAL. WE MUST NEVER FORGET FOR A SECOND THAT IF YOU DON’T LOOK AFTER YOUR PEOPLE THEY ARE NOT LIKELY TO LOOK AFTER YOUR CUSTOMERS - FACT!
o IT ALSO INVOLVES BEING THE VERY BEST WE CAN BE FOR OUR CUSTOMERS. WE WANT THEM TO FEEL GOOD ABOUT SHOPPING WITH GREGGS. WE WANT THEM TO LOVE THE PRODUCTS, THE VALUE, THE TASTE, AND KEEP COMING BACK FOR MORE.

I SPOKE TO ONE OF MY STORE MANAGERS RECENTLY WHO HAS BEEN AT GREGGS FOR 30 YEARS AND SHE TOLD ME ABOUT HER CUSTOMERS TODAY WHO SHE REMEMBERS SERVING WHEN THEY WERE YOUNG CHILDREN, AND HERE THEY ARE TODAY AS PARENTS WITH THEIR OWN CHILDREN – THAT’S SUCCESS TO ME!

BEING THE BEST FOR OUR SOCIETY MEANS CREATING A POSITIVE IMPACT ON THE WORLD AROUND US - ‘DOING THE RIGHT THING’ FOR FUTURE GENERATIONS. BUT DO IT BECAUSE YOU CARE – NOT TO SCORE BROWNIE POINTS IN YOUR CSR AUDIT!
o AND DOING OUR BEST FOR OUR SHAREHOLDERS. THEY ARE INTERESTED IN HOW RESPONSIBLE A COMPANY ACTUALLY IS. BUT BEING RESPONSIBLE CAN AND SHOULD ALSO PROVIDE OPPORTUNITIES TO SAVE MONEY TOO. THE GREEN AGENDA CAN ACTUALLY DELIVER HARD BUSINESS BENEFITS. REDUCING WASTE AND ENERGY USEAGE ARE SOME EXAMPLES OF HOW DOING THE RIGHT THING FOR THE ENVIRONMENT IS THE RIGHT THING TO DO FOR THE BUSINESS TOO.

GREGGS HAVE ALWAYS BEEN A VALUES-LED BUSINESS. OUR VALUES ARE:

*** VALUES SLIDE

‘WE WILL BE ENTHUSIASTIC AND SUPPORTIVE IN ALL THAT WE DO, OPEN, HONEST AND APPRECIATIVE, TREATING EVERYONE WITH FAIRNESS, CONSIDERATION AND RESPECT.’

THE VALUES WERE INTRODUCED AS AN ARTICULATION OF THE ‘ESSENCE’ OF GREGGS, SO THAT AS THE BUSINESS GREW, WE WOULD NOT LOSE OUR WAY OF DOING THINGS - A ‘FAMILY’ WITH STRONG VALUES, A CARING COMPANY.

I MUST ASK MYSELF EVERY SINGLE DAY AT LEAST ONCE – IS THE DECISION I JUST TOOK IN KEEPING WITH OUR VALUES!

WE HAVE BEEN PARTICULARLY ACTIVE IN CARING FOR THE PEOPLE WHO WORK FOR GREGGS AND THE COMMUNITIES WHERE OUR CUSTOMERS AND PEOPLE LIVE.

THIS IS DEMONSTRATED BY THE GREGGS FOUNDATION. THIS WAS SET UP IN 1987, AND IS NOW IN ITS 22ND YEAR. IT WAS ESTABLISHED TO SIMPLY HELP THOSE IN NEED, THOSE LESS FORTUNATE THAN US IN AND AROUND THE COMMUNITIES IN WHICH WE WORK.

LAST YEAR WE RAISED 1.8 MILLION POUNDS AND OVER THE PAST 20 YEARS THE FIGURE RAISED IS OVER 10 MILLION POUNDS. THIS IS AN OUTSTANDING ACHIEVEMENT FROM OUR PEOPLE AND IS SOMETHING WE HOLD VERY CLOSE TO OUR HEARTS.

*** BREAKFAST CLUB FIRST SLIDE

WHAT MANY OF YOU MAY NOT KNOW IS GREGGS ALSO RUN A ‘BREAKFAST CLUB’ SCHEME IN PRIMARY SCHOOLS IN DEPRIVED AREAS AROUND THE UK, FEEDING 6200 CHILDREN EVERY DAY. THAT MAKES ME VERY PROUD TO WORK AT GREGGS.

IN EACH CLUB THERE ARE TYPICALLY 50-60 PUPILS THAT ATTEND THE GREGGS BREAKFAST– THIS IS USUALLY AROUND 20% OF THE TOTAL PUPILS.

WE SPEND £225,000 EACH YEAR, £2,000 PER SCHOOL. IT IS MUCH CHEAPER THAN PUBLICLY FUNDED SCHEMES DUE TO THE USE OF PARENT VOLUNTEERS WHO REALLY MAKE THIS WORK. IN OUR CLUB EVERY POUND WE GIVE GOES TO PROVIDING FOOD AND THAT’S KEY.

WE PROVIDE:

*** BREAKFAST CLUB SECOND SLIDE

• THE FOOD INCLUDING CEREAL, JAMS, BUTTER, YOGHURT, FRUIT, AND DRINKS
• BREAD FOR TOAST IS COLLECTED WEEKLY FROM THE LOCAL GREGGS SHOP
• WE ALSO PROVIDE TOASTERS AND EQUIPMENT INCLUDING A FREEZER, CUTLERY AND CROCKERY
• WE GET OUR STAFF INVOLVED AND ESTABLISH A STRONG ‘PARTNERSHIP’ WITH THE SCHOOL. A MEMBER OF GREGGS STAFF ACTS AS A LIAISON BETWEEN THE SCHOOL AND GREGGS. ANY MEMBER OF STAFF THAT WORKS FOR GREGGS CAN ‘ADOPT’ A BREAKFAST CLUB. THEY THEN VISIT THAT SCHOOL REGULARLY.
• WE HAVE OVER 500 PARENT VOLUNTEERS AT BREAKFAST CLUBS EVERY DAY
• OVER 2,500 LOAVES OF BREAD COLLECTED FROM OUR SHOPS EACH WEEK
• 1.1 MILLION BREAKFASTS ARE PROVIDED BY GREGGS EACH YEAR
• IN 2007 WE COMMISSIONED DURHAM UNIVERSITY TO DO SOME RESEARCH ON THE IMPACT OF OUR BREAKFAST CLUBS, AND FOUND HUGELY POSITIVE EFFECTS – IMPROVED PUNCTUALITY, ATTITUDE, BEHAVIOUR AND PRODUCTIVITY AS WELL AS ATTENDANCE.

*** BREAKFAST CLUB THIRD SLIDE

WE BELIEVE THERE ARE MANY THOUSANDS OF CHILDREN WHOSE SCHOOL PERFORMANCE AND ATTENDANCE WOULD BENEFIT IF THEY STARTED THE DAY WITH A PROPER BREAKFAST. WE KNOW THERE ARE SO MANY CHILDREN IN SCHOOLS IN DEPRIVED AREAS WHO SIMPLY DONT HAVE FOOD IN THEIR STOMACHS BEFORE THEY START LESSONS EACH DAY – THAT IS SIMPLY WRONG AND SIMPLY NOT ACCEPTABLE.

GREGGS HAS ALWAYS TAKEN A RATHER UNDERSTATED APPROACH TO THE COMMUNITY WORK THAT WE DO, BUT I BELIEVE WE MUST TALK MORE ABOUT WHAT WE DO IN THE HOPE THAT IT INSPIRES OTHERS TO DO MORE OR SIMPLY BECOME PARTNERS WITH US SO THAT TOGETHER WE CAN DO MORE!

PREVIOUSLY WE HAVE ASKED THE GOVERNMENT TO HELP BUT SO FAR HAVE YET TO SEE ANY POSITIVE ACTION.

I FIND IT SAD AND MORALLY WRONG THAT BILLIONS OF POUNDS HAVE BEEN FOUND TO BAIL OUT SOME OF OUR BANKS, EFFECTIVELY ‘RESCUEING’ THOSE WHO HAVE TAKEN EXCESSIVE AND FOOLISH RISK, YET WE CANT FIND A MILLION POUNDS OR SO TO PROVIDE FOOD AND A CARING ENVIRONMENT FOR CHILDREN WHO DESPERATELY NEED HELP.

*** BREAKFAST CLUB FORTH SLIDE

HOWEVER WE WONT GIVE UP.

WE WILL CONTINUE TO APPEAL TO GOVERNMENT, AS WELL AS DOING ALL WE CAN OURSELVES TO INCREASE THE NUMBERS OF CHILDREN THAT GREGGS CAN HELP.

BUT WE CAN ONLY DO SO MUCH OURSELVES SO, I WOULD LIKE TO TAKE THIS OPPORTUNITY TO ASK FOR YOUR HELP.

FOR ONLY £2000 A YEAR YOUR COMPANY COULD FUND ITS OWN BREAKFAST CLUB IN A SCHOOL IN PARTNERSHIP WITH GREGGS. YOU WOULD BE PAYING FOR 250 BREAKFASTS EVERY WEEK. THAT’S NINE THOUSAND SEVEN HUNDRED AND FIFTY BREAKFASTS A YEAR! WHICH IS ONLY 20PENCE PER BREAKFAST. SURELY IT IS WORTH THAT TO FEED CHILDREN THAT MAY NORMALLY START THE DAY WITH AN EMPTY TUMMY.

IF YOU THINK YOUR COMPANY COULD HELP PLEASE DO GET IN TOUCH WITH US. IT IS SUCH A GREAT WAY TO GET INVOLVED IN THE LOCAL COMMUNITY. WE’D LOVE TO COME AND TALK TO YOU ABOUT IT.

*** CARING FOR THE COMMUNITY SLIDE

ANOTHER AREA THAT WE ARE PARTICULARLY PROUD OF, IS OUR FUNDRAISING EFFORTS FOR CHILDREN IN NEED. LAST YEAR OUR STAFF RAISED A FANTASTIC £360,000 FOR THE BBC CHILDREN IN NEED APPEAL, MORE THAN DOUBLING THE AMOUNT WE RAISED THE YEAR BEFORE.

THIS YEAR WE SMASHED OUR TARGET OF HALF A MILLION POUNDS AND RAISED A STAGGERING £653,000! AN AMAZING ACHIEVEMENT BY EVERYONE IN OUR SHOPS, BAKERIES AND OFFICES. SO YET AGAIN HERE WAS ANOTHER SUCCESS IN UNCERTAIN TIMES.

I AM ALSO CURRENTLY WORKING IN TWO OTHER AREAS THAT IMPACT THE COMMUNITY:

THE FIRST INVOLVES GETTING THE HOMELESS BACK INTO EMPLOYMENT AND THE SECOND PROVIDING TRAINING FOR WOMEN PRISONERS TO PROVIDE THEM WITH SKILLS FOR WHEN THEY ARE RELEASED BACK INTO THE COMMUNITY.

BOTH TOPICS THAT MANY PEOPLE WOULD PREFER TO TURN A BLIND EYE TO. I WON’T LET THIS HAPPEN BECAUSE IT’S NOT TREATING EVERYONE WITH FAIRNESS, CONSIDERATION AND RESPECT.

WE DON’T DO OUR WORK IN THE COMMUNITY TO GAIN PUBLICITY OR BECAUSE WE FEEL PRESSURED TO DO ANYTHING. WE WANT TO DO IT BECAUSE IT MAKES A DIFFERENCE TO PEOPLES LIVES AND THESE PEOPLE ARE OFTEN OUR NEIGHBOURS. OUR PEOPLE LIVE AND WORK IN THESE COMMUNITIES AND THEY REALLY GET TO HEAR WHAT IS IMPACTING THEIR LOCAL AREAS.

OUR VALUES ARE ABOUT BEING ENTHUSIASTIC AND SUPPORTIVE AND TREATING EVERYONE WITH FAIRNESS, CONSIDERATION AND RESPECT.

THIS IS WHAT MAKES ME PROUD TO WORK AT GREGGS. I CAN LOOK MY CHILDREN AND YOU HERE TODAY IN THE EYE AND SAY WE AT GREGGS REALLY DO CARE, AND WE CARE FOR THE RIGHT REASONS.

*** PEOPLE SLIDE

SO IN ORDER TO DRIVE SUCCESS IN UNCERTAIN TIMES, I WOULD SAY THE KEY IS PEOPLE. LOOK AFTER YOUR PEOPLE, THEY WILL THEN LOOK AFTER YOUR CUSTOMERS, WHICH MEANS YOU ARE LOOKING AFTER YOUR SHAREHOLDERS. IT ALL STARTS WITH YOUR PEOPLE.

FURTHERMORE, I WANT TO SEE OUR COMMUNITY ACTIVITIES GROW SO THAT WE ARE HELPING EVEN MORE PEOPLE; SO THAT OUR CUSTOMERS WILL KNOW THEY ARE COMING TO A COMPANY THAT CARES ABOUT THEM AND THE COMMUNITY AND THAT OUR PEOPLE ARE PROUD TO WORK AT GREGGS.

*** DRIVING SUCCES IN UNCERTAIN TIMES SLIDE

AS A MEMBER OF THE SOCIETY FOR FOOD HYGIENE AND TECHNOLOGY, I APPRECIATE THAT THE KEY FOCUS OF THE SOCIETY IS IN THE DEVELOPMENT OF STANDARDS OF FOOD OPERATORS.

THE SAFETY OF OUR PRODUCTS IS OF PARAMOUNT IMPORTANCE CUSTOMERS RELY ON US TO PROVIDE THEM WITH FOOD THEY CAN TRUST.

NEEDLESS TO SAY THERE IS A GREAT DEAL THAT GOES ON BEHIND THE SCENES TO ENSURE THAT THE REQUIRED STANDARDS ARE MET.

FOR EXAMPLE WE HAVE UP TO 10,000 STAFF INVOLVED IN SANDWICH PREPARATION EVERY DAY. MAINTAINING STANDARDS TO ENSURE THE PRODUCTS ARE PRODUCED CONSISTENTLY AND SAFELY, IS A CONTINUAL FOCUS.

I WAS PARTICULARLY PLEASED TO BE ABLE TO ATTEND THIS EVENT AS I KNOW SO MANY OF THE SUPPLIERS THAT WORK BEHIND THE SCENES FOR US ARE REPRESENTED TODAY. WE THANK YOU FOR CONTRIBUTING TO THE SUCCESS OF GREGGS AND HELPING TO PROVIDE FOR OUR CUSTOMERS IN THESE DIFFICULT TIMES.

WE ARE PROUD TO BE A SUPPORTING MEMBER COMPANY OF THE SOCIETY AND I WOULD LIKE TO THANK YOU FOR ALL THE SUPPORT YOU HAVE PROVIDED OVER THE YEARS TO OUR CURRENT AND PREVIOUS TECHNICAL AND OPERATIONAL TEAMS. THE SUPPORT THAT THE SOCIETY PROVIDES TO ALL OF US IS NOT ONLY HUGELY APPRECIATED BUT VITAL.

I BELIEVE EVEN IN THE MOST DIFFICULT OF TIMES YOU CAN STILL DRIVE YOUR COMPANY FORWARD SUCCESFULLY. ITS NOT ALWAYS EASY, THE RIGHT WAY FORWARD ISNT ALWAYS CLEAR BUT EVERYONE OF YOU IN THIS ROOM CAN MAKE A DIFFERENCE.

THINK OF THE POWER THAT COMPANIES CAN UNLEASH IF THEY INSPIRE THEIR PEOPLE TO BELIEVE THAT WHAT EACH INDIVIDUAL DOES WILL MAKE A DIFFERENCE; THAT IT WILL BE VALUED AND THEN JUST DO IT. IN THESE UNCERTAIN TIMES I WISH EVERY ONE OF YOU EVERY SUCCESS.

*** ANY QUESTIONS SLIDE

I WOULD LIKE TO THANK YOU AGAIN FOR INVITING ME TODAY AND I AM HAPPY TO NOW TAKE ANY QUESTIONS.

ENDS