Q&A with Mark Fox, former chief executive of Roadchef
Mark Fox has worked within the retail/hospitality industry since the early 1990s for some of the leading global brands. From starting out at Aberdeen Pizza Company he went on to lead Roadchef where he successfully achieved a sale of the business.
Major achievements?
In over 30 years I’ve had quite a few. As I’m now retired, what I’m most pleased about is the role I’ve played in the development of people. All I do know is related to the network that I’ve built up. I’ve come out the other end and few people have a bad word to say about me, which makes me feel good.
On the business front selling Roadchef to Macquarie was a big achievement. We massively exceeded the expectations of its value and it was a lucrative transaction for everybody involved. I joined the business in 2018 to sell it in 2019 but when we started to talk about the sale the owner Antin Infrastructure Partners could see [the first signs of] Covid-19 in China in the summer of 2019. We stalled the sale and then there was quite a long gap – including sales dropping 95%. After Covid-19 traffic on the roads was up, spending was up and there was still some Government support, which made for a wonderful time to sell.
Never Miss a Retail Update!Any lowlights?
My short tenure at Bill’s in 2016 and not selling the business was disappointing. The market conditions in 2017/17 post-Brexit was not wonderful.
Industry changes you’ve experienced?
A hell of a lot. One that’s very notable is the digitisation of the food industry. I sit on the fence believing there are some amazing digital tools but also some poor ones. It’s not always [initially] obvious which is which. Some of the customer-facing stuff is too slow and not intuitive enough – namely the kiosks and order-ahead technology. As a franchisee going to the franchisor about poor technology [they provided] is difficult as they don’t like that sort of feedback. I’ve been on both sides and found some are better than others to deal with this problem.
How was your time at Starbucks?
I went to Seattle in 2013 – landing at 7pm and then flying out the next day at 8pm. I had dinner with the HR leader then the next day interviewed with CEO Howard Schultz at 6:45am, then the CFO, and the chief legal officer. Six interviews and a dinner and I was offered the job. The Starbucks original mission was to inspire and nurture the human spirit and although they’ve since gone hell for leather on digital – and its order-ahead solution was pioneering – this does not prevent the personal touch. I think you can be friendly at speed in the morning rush and then give people more time in the afternoon.
It’s a super-interesting business that was cult-like around Howard. I remember suggesting we were going to change the design of the handles on the paper bags and save money. I was told Howard would not do that! We did change them as it was not a tenet of the brand.
Difference between retail and hospitality?
There are more similarities. I was in Caffé Nero and retailers would not have allowed the filthy table outside the store because they have more focus on presentation of their assets than hospitality. The hospitality industry should be more focused on this. The front-of-house cleaning in QSR (Quick Service Restaurants) and coffee shops is poor. There are few places that I go that are nice.
The Tesco store that I go to frequently and have done for 20 years was pretty good but over time they have constantly de-ranged it. I can no longer get fresh quails eggs and truffle mayo. I understand the rationale but it frustrates me. And the service – I feel there are few people there who will interact with me as a human. When the red light goes on in self-service they will, almost, push you out of the way and say nothing. It’s completely unacceptable. It’s not a pleasant interaction. It’s entirely down to the individual and how they are trained.
Major surprises over your career?
The size of Russia. There was a copycat of KFC and Yum in the US wanted to buy it and covert them to KFC’s. I had to validate that all 79 restaurants actually existed so for a few weeks I had to travel across Russia – through Siberia and the Ural Mountains. I took the Trans-Siberian Express. It went across Siberia but it was no express. It was minus 45 degrees outside and plus 45 degrees inside – scolding hot – in the cabins. Outside the cabins at the ends of the carriages there was no heating and people used to smoke there. At Omsk train station I can recall the door handle inside the train had a block of ice on it because it was so cold. The Babushka had to pour boiling water on it to melt it.
Individuals you’ve admired along the way?
Jens Hofma, former CEO of Pizza Hut UK, who I met when I lived in Geneva when I was working at Yum. He was YUM Europe CFO at the time and I worked for him when I ran the Pizza Hut delivery business. He’s a humanistic leader and he introduced me to understanding people. He put us all on a weeklong retreat with two people I’m still in contact with – Mara and Stephen Klemich – who are spiritualists and psychologists. They help you interpret the actions of others. I was in my 40s at the time and would not have been open to it in my 20s. I’d have been a better leader in my 30s with their knowledge.
Also Martin Shuker, GM of KFC UK, and Graham Allan, president of Yum Europe, had my back and took risks on giving me roles because they believed in me. Martin took me to Europe and Graham backed me from the get-go.
What are you up to now?
I’ve set up Obsv.ai (stands for observation and actionable insights), which is a consultancy for hospitality. I’m comfortable across all parts of businesses from the operations to marketing. I don’t want to work a lot but I love working so it will be bits of projects to keep me interested and out from under Mrs Fox’s feet.
