Deliverance case study

Deliverance case study - When banker Ronan Blacker and...

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When banker Ronan Blacker and barrister Patrick Reeves gave up their swish offices and six-figure salaries to launch a deliver-to-your-door gourmet food company, they never imagined it would turn sour. “It was challenging and exciting,” said Reeves, who swapped the courts for couscous, “But it was probably a good thing we didn’t realise just how much we were biting off or we might never have done it.” Six years later, Blacker and Reeves owners of Deliverance, are reeling from an expansion that went wrong and plunged their business into the red. Now they are being forced to cut costs and improve margins. Deliverance was formed in 1997. After kitting out their south London kitchen, including buying a pizza oven at auction and poaching a few top chefs, Blacker and Reeves went into business with 15 employees. They were instantly busy with orders, and soon opened a second kitchen to serve the City. Customers phone the Deliverance call centre with orders for dishes such as Goan chicken curry, sushi and aromatic crispy duck. These are cooked and dispatched by bike to the customer’s door. “It was remarkably enjoyable,” said Reeves. “We had a product that the world seemed to want.” Business was booming and the pair, - who met at university – were once again enjoying the lifestyle they had as professionals. But their latest expansion has plunged them into debt. It has nothing to do with the quality of their catering or their cosmopolitan cuisine. Deliverance has been brought down by a building mix-up. “We were having underfloor drainage installed in our third kitchen,” said Reeves, “when
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This note was uploaded on 10/13/2009 for the course MGT 3150 taught by Professor Ken during the Spring '09 term at Al Akhawayn University.

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Deliverance case study - When banker Ronan Blacker and...

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