It has probably not escaped your notice, because you also feel the continued pressure as an independent food retailer: large retailers and manufacturers have a firm grip on the market! The position of the power giants in the current retail landscape seems to be increasing, with their indomitable hunger for a larger market share and larger margins. In doing so, they put small-scale retailers like you under heavy pressure, causing your profit margins to shrink further.
As if it wasn't bad enough that you have to contend with higher costs (e.g. energy prices that continue to rise, higher personnel costs), you also have to compete against the big players in the market. All this means that your livelihood is increasingly threatened.
Giving up is not an option, but how do you compete with the big boys? Or is there a way in which you don't have to fight and you are stronger through valuable insights and the right collaborations? That is what we strive for at KairosFood and our digital community!
KairosFood: A world of difference
Do you also see your profit margins melting away like snow in the sun? In addition to the increasingly higher costs and more expensive products that you cannot fully charge, you also have to continue to compete against the “big boys” who always promise the lowest price and thus steal your customers and/or margins. We are also seeing a trend where major food distributors are joining forces, under the guise of cutting their costs. But is this really a blessing? Or rather a strategy of the big ones to maximize their profits even further?
And there you are... With a nice range but not the largest range. And not the lowest, but a fair price! Yet you have a lot to offer your customers. You know the origin of your products, you attach great importance to customer friendliness and you can provide personal advice.
In this complex playing field, KairosFood introduces itself as a potential game-changer, with the ambition to support independent retailers so that they can reclaim their place in the market! Because we believe that every hardworking shopkeeper has the right to a stable life and a fair wage!
Register for free and take the step towards a better future today!
A forced relationship with major retailers
Kurt Mortier, the founder and CEO of KairosFood, has experienced it firsthand. As producer of Creative Spreads, a company that produced savory spreads based on meat, fish and vegetables, he encountered many obstacles. Although the company grew steadily, exported abroad and invested heavily in further growth, Kurt became increasingly aware of the pressure exerted by major retailers.
The invisible costs of large scale
However, the relationship with major retailers turned out not to be as lucrative as it seemed at first glance. Despite the large turnover they could generate, they also incurred enormous costs. Significant investments were required in terms of staff, resources and logistics to meet the demands of these retailers. In addition, frequent price negotiations led to constant price pressure, completely eroding profit margins. This wasn't what he signed up for!
The 80/20 rule: A telling insight
It was during an in-depth review of the business model that Kurt and his team began to see the 80/20 rule in practice. Although the major retailers generated a significant 80% of sales, this provided only 20% of profits. The last 20% of turnover, from smaller customers, generated 80% of total profit.
This insight was very surprising, as smaller customers are often seen as a burden that hinders growth. But nothing turned out to be further from the truth: they are the ones who ensure the profitability of the company! With this valuable information, Kurt and his team were able to continue…
Pursuing growth against rationality
As founder of Creative Spreads, Kurt Mortier had to make a drastic decision: he consciously decided to stop all collaborations with major retailers and manufacturers. This meant he had to reduce production lines and was able to reduce his debts. But that inevitably meant a significant downturn for the company!
Yet it was a choice that was necessary, not only for his business, but also for his moral compass. He abandoned the race for the largest possible market share and shifted his focus to smaller, but profitable customers. This personal approach was just what he loved most! This emphasis on independence and autonomy also provided more control, clarity and an appropriate strategy.
Kurt quickly realized that it's not just manufacturers facing these challenges, but that small food retailers are also facing similar problems. After further research, there was only one possible conclusion: valuable collaborations, lasting innovation and growth are the key to a stable future as a small retailer.
KairosFood: Grow your own path together!
This inspired Kurt to take on a new role: that of facilitator. With his platform KairosFood, he wants to inspire, support and connect independent retailers and producers directly with each other. So that they can exert collective power, without losing themselves in the exhausting battle against major players. A fight that cannot be won.
Under the motto “Growing your own way together! ” KairosFood wants to help entrepreneurs to choose their own path and to continue to grow in a healthy way. To maintain their individuality and authenticity, but still make a difference together.
“You should not participate in a battle that you cannot win. Certainly not if there is another way where you can preserve your individuality and keep the reins in your own hands.”
By inspiring, guiding and connecting both retailers and producers, KairosFood ensures a profitable future, based on the experience and willpower of Kurt Mortier. Do you want to stay informed about our KairosFood initiatives?
Register today and join a community that shares and understands your values.