Little Chef - have new management bitten off more than they can chew?

A really useful article in the Observer today provides a wealth of relevant content for business teachers and students…

It has been a while since I last dropped by at a Little Chef - either on my own or with the family. I’m more of a M&S Simply Food man really. And it seems that I’m not alone in having abandoned the roadside brand with a reputation for greasy food and even worse service.

However, Little Chef is still a substantial business, with over 200 locations and 11 million customers visiting each year.

The Observer article is based on an interview with the latest Chief Executive of Little Chef, who outlines his turnaround strategy (albeit from the comfort of the restaurant at the IOD in London). Plenty of good material to use with students, including:

- Several changes of ownership in its history, including some venture capitalists who have tried to turn the business around

- Product life cycle - how consumer demand has moved away from traditional roadside fare such as bangers & mash, all-day cooked breakfasts

- The importance of managing and motivating people in a service business (there is a great quote “Morale is very important. Managing Little Chef is like running a collection of cottage industries.”

- Breakeven (Little Chef used to be profitable, then fell into losses)

- Pricing strategy and profit margins