CATERING FOR DEMAND

Office supplies businesses have been diversifying their product range for many years now - and catering supplies is a sector that could provide good opportunities to increase sales

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ike many people who run office supplies businesses, Andrew Hudson, managing director of The Office Works, recognised some time ago that diversification into new markets was the way to increase profitability, and one of the sectors he went into was catering supplies.

The reason, he says, was simple. “We got into it because we wanted to offer clients a solution to everything they need for their office,” he says. “We have found that some clients are looking to consolidate their supply chain and don’t want the problems of buying online or from supermarkets. Consolidating purchases through one trusted supplier is better for them as it goes through the corporate account rather than via credit card transactions.”

A fair number of The Office Works’ customers are London-based offices, and many are now spending more on catering supplies than ever before, as tastes change and there is more emphasis on having food in the office rather than going out.

Going into this sector has meant Andrew has had to find new suppliers in some cases, such as specialist wholesalers that sell the sorts of healthy snacks being requested by customers. “Given a little bit of research it is not difficult to find these on the internet,” says Andrew. “Then it’s about finding a supplier you can trust, and buying as far up the supply chain as possible.” In terms of margins, they are similar to office supplies, Andrew says. “Some of them are quite tight, others are much higher.”

Andrew concedes that this sector may not work for every dealer – it is more likely to be a success for dealers that operate in large cities where there are numerous large office complexes that can put in enough orders. “In terms of volume of extra business, it is good, but you have the right type of client base,” he explains. “I suspect most typical office supplies dealers don’t have companies that are going to spend thousands each month on catering products – some spend more on catering with us than office supplies.”

Such diversification is imperative, Andrew adds. “The core of what we supply, as an industry, is in decline, so it is

imperative that you sell other things. For us, the biggest area of growth is other product ranges, whether that is catering or other niche products and services we offer. You have to be proactive, and supply customers what they want. You also need the right relationships with customers to sell them the full solution.”

CHANGING DEMANDS

Debbie Nice, business development director at VOW Wholesale, agrees. She says that, while wholesalers and many dealers have had an element of food and drink sales – stocking brands like Nestle, Cadbury and Haribo, as well as providing sugar and milk supplies – for years, demands from customers are changing and dealers need to cater for this. “In the past 10 years we have seen a massive rise in supplying products like office kitchen supplies – microwaves, toasters, kettles, etc. – and supplies for coffee machines, such as coffee beans,” she says.

Another high growth area is healthy and/or specialist snacks – products that have low sugar or salt content, or are vegan or gluten free, such as oat milk. “This area of healthy/low sugar/salt is growing, veganism is here to stay, and there will be a move back to these values next year,” says Debbie. “The vegan products available are really nice now - there has been great product development in recent years. With diversity policies, employers don’t want employees to have to ask for vegan or gluten-free alternatives and just provide them as standard.”

Changes in working practices also present opportunities for dealers, Debbie adds. With more employees working at home, some employers are incentivising people to come into the office for meetings by putting on buffets, and offering premium coffees, rather than just instant.

Hybrid working also means that meetings do not always take place in the office; increasingly they are also being held in cafés and hotels – and this presents opportunities for dealers too, says Debbie. “We have seen some success in room supplies for hotels – things like sachets of coffee and tea - and we are looking at options for what we can supply to more upmarket hotels, such as room supplies, soap for washrooms - those sorts of areas,” she says.

SUPPLYING CATERERS

Debbie believes that dealers should also look at supplying products to catering companies themselves. “There are a range of options dealers can stock, such as food labelling and food packaging – environmental solutions for that for takeaway carriers, pizza boxes and the like,” she says. “That whole food packaging area lends itself to an office supplier. Office suppliers generally supply a bit of catering, a bit of packaging - and that falls in the middle. Till rolls, as well, are often purchased by catering establishments; often, non-catering products such as these can open the door into catering environments.

“We also sell a lot of products that are used for displaying menus and signage. If we were opening a door with a catering establishment, a dealer would most likely do it with products they use for cleaning – be it dishwashing or tabletop cleaning; they aren’t catering products, but they are products used by caterers. Cleaning supplies is a massive focus for catering companies now, as is protective clothing such as masks, gloves, aprons and hair covers.

“Catering is a wide sector and there is a big opportunity there for dealers.”

They aren’t catering products - but they are products used by caterers