Better Food Traders has launched the sustainable food sector’s first set of business benchmarks, the BFT Data Deep Dive, to help independent food traders understand and run their businesses better.
The report focuses on Operations and Marketing and is based on survey responses, industry benchmarks and the business data of 170 BFT members. It also combines sector insights, peer-to-peer advice, and links to lots of tailored resources in the Better Food Traders Library.
The Data Deep Dive project had two phases: a survey of our members to capture data on traders’ operating models, finances and marketing practices; then analysis to establish useful benchmarks and insights. The project has drawn on the expertise of our members, the BFT board, an external accountant, an academic and a business consultant, and the resulting report offers a set of uniquely tailored benchmarks. This will allow independent food traders to evaluate their own business against peer-sourced industry data, and ultimately help them to grow into successful, resilient enterprises.
The BFTs surveyed told us the biggest challenges they currently face include finance and increasing costs (65%), staffing skills and costs (57%), and customer retention and growth (50%). This report, and our training and advice for the coming year, are focused on helping enterprises navigate these challenges.
Collecting and interpreting data is essential for any retailer or wholesaler. The Data Deep Dive and our training throughout the year supports BFT members to establish the reporting systems that underpin good retail management. With a few key pieces of information, businesses can easily start to gauge their own financial health. Likewise, tracking certain metrics gives business owners a vital strategic overview to help them weather their biggest challenges.
The Data Deep Dive report highlights key ratios and figures for traders, and how to calculate them.
- Wages to Sales
- Average basket size
- Energy costs
- Premises costs
- Software, Systems and Web Hosting
- Packing & Distribution
- Packaging
In each category, traders are encouraged to compare their figures to a ‘traffic light’: our suggested healthy zone (green), needs attention (amber) or cause for concern (red). Our analysis has revealed specific figures that provide valuable insight into the sector as a whole, which will help traders to run their businesses more effectively.
Next, the report looks at marketing. As a facilitator of peer-to-peer learning, we know the power of sharing knowledge within the sector – so this report delivers useful tips from BFTs as to the most effective, low-cost marketing tools, customer retention strategies and promotions. This section will help marketing staff start to compare and evaluate their strategy with similar sustainable food traders.
92% of members who took part in our survey said they want to improve their reporting systems and how they run their business. At Better Food Traders, we’re here to help enterprises achieve that goal and, together, grow the sustainable food sector. We hope this report will get more traders tracking their numbers and arm them with better information to make good business decisions.
If you’re a BFT member, check your June newsletter for a link to the full Data Deep Dive report. If you’re not a member of the network and would like to access this and many other resources, sign up here or email hello@betterfoodtraders.org for more information.