David Lloyd is an international brand with 95 leisure clubs in the UK and Europe. With 475,000 members, it's the brand leader in the health and fitness market in the UK, employing 6,000 staff. Wanting to uplift their food and beverage offering to increase footfall and dwell time, David Lloyd worked with us to evolve their approach and execution, putting their members at the heart of the transformation.
David Lloyd wanted to transform its food and beverage (F&B) business, increasing member footfall, dwell time in its clubs and commercial performance. The company engaged Peppercorn to review, then evolve the company's approach and execution within F&B with a view to making it a more value-added proposition for their members. To ensure measurable results were delivered in 2016, David Lloyd gave Peppercorn complete control of all aspects of the F&B transformation agenda.
- Increase footfall and dwell time
- Evolve operational approach and execution
- Improve member satisfaction
- Deliver measurable results
What We Did
The first stage of Peppercorn's plan was to collate feedback from the company's general managers and review 15 months' of member comments to ensure they were addressing the challenges staff and members had. This was then condensed into categories that allowed Peppercorn to work out the scope of the project and prioritise initiatives.
Peppercorn instigated the need for simplified and timely financial reporting which then identified a list of priority clubs that needed extra support for sales, margin and labour control. As always, people are the key to long term sustainable success. Peppercorn recruited a new head of F&B then unlocked a team of potential stars to support the overall strategy, the new proposition launch and improve future succession planning.
Peppercorn then launched the new proposition through regional road shows to present the thinking behind the transformation and sell it to the General Managers, gaining buy in and commitment. Peppercorn also rolled out a speed of service measure to ensure members were being served within 15 minutes whatever the time of day to build confidence, keep them engaged and coming back for more. Satisfaction levels were monitored and feedback collected from members in real-time, ensuring the operations and F&B team could adjust their approach accordingly.
Peppercorn's approach has resulted in significant gains for David Lloyd. Sales and product margins are significantly ahead of budget, the gap between actual and theoretical margin has been reduced, labour has been stabilised and profit is well ahead of what was a stretching target.
Crucially, member satisfaction has increased by six per cent since the new menu launched, showing Peppercorn's innovative approach to customer monitoring and feedback has paid off. Peppercorn continue to have a strong relationship with David Lloyd, as it now progresses into its third year.