Franchising Opportunities

Riverford Organic Vegetables

Back to his roots

BUYING A BUSINESS IN NEED OF ATTENTION HAS ITS ADVANTAGES, SAYS RIVERFORD ORGANIC FRANCHISEE JAMES NEGUS

James Negus took over a struggling Riverford Organic franchise territory a year ago and has turned the business around, increasing customer engagement, driving sales and boosting business revenues by 50 per cent.

Today the former chef and son of an organic farmer - also a supplier to Riverford - believes that buying a business in need of attention has its advantages.

OPPORTUNITY

Says James: “I found out about the Riverford opportunity through the family business. My family are part of a cooperative working for Sacrewell - a sister farm of Riverford in Cambridgeshire - and have been farming for around 40 years. When we sold our larger vegetable growing business fairly recently, we decided to retain the family farm and began growing organic vegetables. Now our most varied output of crops is for Riverford.

“You certainly don’t have to come from a farming background to become a Riverford franchisee and it doesn’t give you any clear advantage, but I’ve been privileged to see how the business works first hand. I believed I could make the Bury St Edmunds territory more profitable than it was, which is why I decided to make an investment.

“I was a Riverford customer in Wiltshire before my family got involved with the company, so becoming a franchisee has been an interesting twist of fate. I’ve always had a love of food and have worked as a chef in several restaurants, so it’s been good to get back in touch with fresh produce. I also get to bring my culinary skills to the table, offering tips to people about cooking and giving advice on recipes that will help them make the most of their veg boxes.”

As a former chef and keen cook, food quality is everything to James, and Riverford’s food is the freshest. “Vegetables picked in the UK on a Wednesday are boxed by Thursday and delivered on Friday,” he explains. “This contrasts with supermarkets, where vegetables can be left in cold storage for over a week, losing flavour.

“Riverford’s attention to detail in areas like this makes me enthusiastic about the brand. However, it’s still vital for franchisees to work hard on marketing at the local level to increase turnover and profit. Which is where I’ve been focusing most of my efforts.”

One of the marketing drives James is engaging in at the moment is an email campaign promoting a free taster box for existing customers’ family and friends. He explains: “It’s a great referral strategy and excellent for acquiring new business. People who want to try a taster box get five pieces of free veg. About a week after their delivery I contact them to see if they’d like to take a regular order.

“Another Riverford franchisee, Nick Moynihan in Essex, did the same thing and since the start of 2011 his deliveries have increased by 53 per cent and new customers are up 141 per cent, which is an outstanding conversion rate.”

REWARDING

Since James took on Riverford in Bury St Edmunds, he says it’s been rewarding to see his efforts paying off: “My customer base has gone up from 130 to 220 customers. My personal target was to double the number of deliveries by the end of this year, so with just 40 more customers to go I’m well on my way to hitting that figure. But it hasn’t only been about increasing customer numbers - increasing average customer spend has also been a key part of my strategy.

“At the end of last year the average spend was just over £18 a week. Now it’s more than £20. It doesn’t sound like a massive increase, but when you’re making 400-500 deliveries it can add thousands of pounds to your balance sheet. I’ve achieved this mainly by working on customer engagement, such as letting them know when something new is in and simply by staying in touch.”

According to James, one of the best things about being a Riverford franchisee is that when he needs advice or support he can turn to other franchisees in the network. “Some of them are very switched on and have much more experience than me, so it’s great to hear about the marketing initiatives that have worked for them,” he says.

“Being proactive and using the franchise network as a resource ensures that I learn from other people’s mistakes and not just my own, which helps me to make the most of my time and maximise the potential of this growing business.”

FOR MORE INFORMATION

A virgin Riverford Organic territory costs £18,500 (plus VAT). Current resale territories start from £25,000. Investment is now training fee exempt, saving new franchisees approximately £6,000.

For more information call 01803 762 015, email franchise@riverford.co.uk or visit www.riverford.co.uk/franchise.

 

 

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33-year-old dad to be Jim Harbridge has stepped into a new life. One made up of vans, veg boxes and organic food. Just three weeks into his ‘fledgling’ business (a fully developed franchise bought from his predecessors), he has to complete no less than 13 delivery rounds in a week, learn the names of streets he never knew existed and greet hundreds of people he’s never met before - his customers.

“It’s a big change from working in marketing and PR, and certainly hectic at the moment,” says Jim. “But it won’t always be like this. It’s just that all of my drivers decided to go on holiday at the same time - just when I started. The great thing is I’m getting to know the rounds. And although that means working from dawn to dusk, I’m out and about and learning fast.”

READY TO SELL

Jim, who has never run his own business before, and who didn’t know anything about franchising either, considered buying the Riverford Organic Portsmouth territory when he heard that the previous franchisees were ready to sell.

“Paul and Sue had been running the business for seven years before I took over,” says Jim. “For five of those years my wife Anna and I were loyal customers, getting our weekly veg boxes delivered. We loved the quality and taste of the food and we’d found Riverford to be a forward thinking company, always introducing new products and services, including my favourite – the barbecue box with organic cider and burgers.

“We’ve always loved Riverford’s products and excellent delivery service, but never dreamt we’d end up investing in the company. So when we found out that Paul and Sue were selling up and going travelling we were presented with an opportunity too good to miss.”

Since negotiating a price for the franchise with Paul, Jim has been through a comprehensive training programme at Riverford’s head office in Devon to learn about running his organic food delivery business from the ground up. He also went out on the road with Paul to get to grips with the rounds and meet some of the customers.

“It’s been a year since we first talked to Riverford about our interest in the Portsmouth area,” adds Jim. “And now here I am, three weeks in, bombing about, making hundreds of deliveries and waiting for my drivers to come back from their holidays. And when they do I can start taking things to the next level.

“It’s been a major transition from working in an office full-time for somebody else to being out and about on my own. But I’m excited about the future and enjoying the flexibility of being my own boss.” Jim also feels that when things settle down it will mean more quality time with his family. “Anna and I have our first baby due in August,” he says. “It’s been a lot for us to take on in a relatively short period of time. For us buying this business takes us one step closer to achieving the work-life balance we desire.”

NORTHERN EXPOSURE

Says Laura Cottee, Riverford Organic’s territory services manager: “When such motivated, high calibre franchisees join Riverford it’s a real boost for the brand.

“After more than 10 years the Riverford franchise network is reaching full maturity. So savvy investors, such as Jim, are snapping up resale opportunities as soon as they become available. The advantage is that, although these territories usually come at a premium, they also come with established rounds and a ready-made customer base, meaning franchisees are making money from day one. Ideally, with a resale there will still be room for improvement and expansion, and new franchisees should be able to increase turnover and profit once they take over.”

Adds Laura: “At present we have a higher number of both virgin and resale opportunities in the north of England. So this really is a genuine opportunity for anyone with business flair, a passion for organic food and a desire to become a focus in their community to talk to us about becoming a Riverford Organic franchisee.”

RIVERFORD FACTS

• A virgin Riverford Organic territory costs £18,500 (plus VAT). Current resale territories start from £25,000.

• Riverford Organic has won a multitude of high profile awards, including Online Retailer of the Year at The Observer Ethical Awards 2010, and Best Organic Retailer at the Natural and Organic Awards 2009.

• Company founder Guy Watson starting to grow organic vegetables in 1987 and began the box scheme at Wash Farm in Devon in 1993.

• Since 1993 deliveries have grown from just 20 local households to more than 60,000 across the UK.

• Growth has spurred logistical developments and the integration of operations with four sister farms, all of which share Wash Farm’s passion for growing organic vegetables.

• Riverford Organic won Best Organic Retailer 2009 and is a full member of the British Franchise Association.