Goody's: Mediterranean Marvel

 
Greek foodservice leader and franchise pioneer Goody’s continues to outpoint international and local brands, staying well ahead of McDonald’s and Starbucks in the highly competitive Greek markets for both QSR and coffee shops. Former food processing executive Sotiris Seimanidis introduced a fast-growth strategy at both chains since becoming CEO in 2001 and has encouraged development of new concepts. Interview by Bruce Whitehall.
 

 
Goody’s was born from the energy and enthusiasm of a small group of individuals. How easy has it been for Vivartia (formerly Delta), the big multi-market food business which now owns the business, to inspire and maintain that same kind of momentum?
 
Seimanidis: The attachment of Goody’s to a much bigger group had a potential cost: the loss of entrepreneurial drive and the energy to create new brands and new concepts. So when the majority of Goody’s shares were acquired by Delta in September 2001, the top management made an important decision. They argued that Goody’s was in the foodservice business and should maintain its autonomy. Therefore, apart from securing group standards in areas such as corporate governance, social responsibility and reporting standards, it was decided that Goody’s would have its own dedicated management, running it as a standalone business rather than being integrated with the food processing parts of the business.
 
Why was that important?
 
Seimanidis: I think it was a very wise decision because the existing business had a certain character and culture shared not only by the founders but across the total system of 150 franchisees, plus suppliers who had been working with the group for more than 20 years. It was very important to preserve that spirit and passion. The second wise decision taken in 2001 was to invest more in Flocafé as the group’s second brand. Since then we have built it to 75 units. Each of the two brands is managed from Goody’s headquarters with functions like marketing operated separately; some which have synergies, like architectural design and technical support, are shared.
 

 
Greece has proved a tough market for the big international foodservice brands. Why?
 
Seimanidis: There is something of a tradition here for local companies beating the big international brands. It makes us very proud to have the leading brand in burgers and the same situation is now happening in coffee bars with Flocafé. McDonald’s came to Greece in 1992 and their first restaurant in central Athens got into the top 10 of McDonald’s stores worldwide. But after people compared the taste, service and atmosphere, they started coming back to Goody’s who at that time had about 60 restaurants. Wendy’s also came to the Greek market in the 1990s but was eventually forced to quit. We now have a situation of being market leader in QSR; the only other country in Europe where McDonald’s is not in first place is Belgium (where they are second to local chain Quick). In Greece, McDonald’s is, on our reckoning, in fourth place behind two other Greek QSR chains (Gregory’s and Everest). There is a lot of rivalry in the Greek market, especially among family-owned establishments, who have around 75% of the market, led by souvlaki restaurants where there are only a few very small chains.
 

 
| 25 June 2007 | Bruce Whitehall |