Delicatessen
Introduction
So you've decided you want to run a delicatessen business. Maybe you've always had in interest in fine foods, or perhaps you've been working in someone else's shop for a while and have decided to go it alone. Whatever the reason, this guide will take you through the issues you need to consider and give you practical pointers on getting started.
Sector trends
Over the last twenty years or so the popularity of delicatessen, speciality and fine foods has grown enormously, as people's tastes have become more sophisticated and adventurous. Delicatessens were often originally set up to cater for local Polish, German, Italian or other European communities which had become established in the UK. Their customer base then expanded to include British people keen to buy products they had sampled on holiday abroad, or in continental restaurants.
The mid 2000s saw a rise in the number of Polish delis around the UK offering traditional food due to an influx of Polish workers after the expansion of the European Union. Polish food also appears to have grown in popularity among non-Poles who are willing to try new foods. Demand has also increased for organic, locally sourced and Fairtrade products, and many delicatessens have added these to their ranges.
Although increases in demand for speciality foods are good news for delicatessens, they've also prompted the big supermarkets to:
- open in-store deli counters
- expand their ranges of pre-packed salamis, pates, cheeses and so on
- import tinned, bottled and dried fine foods from overseas
- produce continental and far eastern ready-meals
- introduce speciality breads such as ciabatta, focaccia, bagels and so on
- introduce their own ranges of locally sourced, Fairtrade and organic products
Now even small convenience stores sell a range of products that, only a few years ago, would only have been available from a specialist delicatessen. For this reason many delicatessens have diversified to target the lunch time trade - for example by selling take away sandwiches and hot drinks.
Niche products like speciality foods are well suited to e-commerce, which can reach a much wider audience than a traditional shop. Even perishable foods can be sent through the post or by courier if they're suitably packaged and delivered promptly. Unsurprisingly, the delicatessen and fine food sectors have embraced e-commerce and many delis now sell goods online. Of course, the internet is a source of competition as well as an opportunity - many producers use e-commerce to sell their goods direct to the consumer. There's even a 'virtual farmer's market'.
After several years of benefiting from a strong economy, delicatessens in the UK were hit hard by the sharp economic downturn which began in 2008 and persisted into the early 2010s. Almost everything stocked by a typical deli is a non-essential or luxury item, and unfortunately it's just these sorts of things that shoppers cut back on when they need to save money. So the industry has had a tough time recently and is likely to face difficult conditions until the economy picks up again. It's not all bad news though. While some shoppers cut out luxury foods altogether when money is tight, others cut back on going out for meals and save money by cooking gourmet foods at home.
1.1 Keeping up to date with developments
Joining a trade association is an excellent way of keeping up to date with developments in your industry.
The Guild of Fine Food represents the delicatessen sector and offers a range of services to members, including a subscription to Fine Food Digest magazine. The Guild also runs an accredited supplier scheme. This provides deli members with a list of fine food and drink products which are only sold in independent outlets and which are not available in supermarkets
The Institute of Grocery Distribution produces a huge range of publications covering all aspects of the UK food and grocery industry.
