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Contract catering pioneer Garry Hawkes attacks ‘short-termism’ and ‘massive debt’

15th Jan 2024 - 06:00
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‘Meals, Deals and ‘Quangos’
Abstract
In a book outlining the details of the management buy-out (MBO) of Gardner Merchant (GM) and its subsequent sale to Sodexo in the mid-1990s, former chief executive Garry Hawkes laments the business environment that made the wheeling and dealing necessary.

As chief executive, and latterly chairman, he guided Gardner Merchant over 20 years to become the biggest contract catering company in the UK.

The book, ‘Meals, Deals and ‘Quangos’, claims the business was bigger than Compass, which has since become the world’s biggest support services operator.

Garry says its success was built on steady growth, an understanding that different market segments needed a different food offer, and an approach that valued staff.

But the company’s ultimate owner TrustHouse Forte (THF) became desperate to raise money and saw the sale of GM as the answer.

“The need to sell the business in order to reduce its debt changed the nature of the company, and its independence,” says Gary in the book.

“It was the price paid by THF’s need for funds, the management’s greed and naivety to pursue an MBO, and the system of equity investment, which pursues short-term return and massive debt.” Nevertheless, he feels he did his best in the circumstances.

“I am happy to let my legacy be the reality that during my 20 years responsibility as CEO and ultimately chairman at Gardner Merchant, the turnover increased from £150m to £1.5bn a year, and profits increased from £6m to £50m.”

The company also doubled its workforce to 57,000 over that time and when GM was sold two years after the MBO for £760m to French services giant Sodexo, Garry ensured that 1,000 of its managers shared in the distribution of £80m.

He was made a CBE in 1998 for his services to business and later, in 2009, he was knighted for his services to education through the creation of the Edge Foundation.

After 56 years of marriage his wife Peggy died and he decided he wanted to write down the details of his life for his grandchildren ‘before he forgot them'. The subsequent book ‘Meals, Deals and Quangos’ is dedicated to his late wife.

Garry said: “I wanted it to not just tell my story as a man who grew up in post-war Yorkshire, but to delve deep in the fabric of leadership, offering invaluable lessons for both established leaders and emerging talent.

“My journey was marked by challenges, victories and the constant pursuit of excellence and I hope this book serves as a roadmap for individuals striving for success in any industry."

Written by
David Foad