Whitbread outsources food logistics to Kuehne + Nagel
Whitbread plc, the United Kingdom's largest hotel and restaurant group, has decided to fully outsource its food distribution to Kuehne + Nagel.
Under terms of the five-year contract, the Swiss logistics firm will undertake delivery of chilled and ambient products to more than 700 Costa Coffee outlets seven days per week, and delivery of frozen, chilled and ambient products to almost 600 Brewers Fayre, Beefeater and Premier Inn restaurants nationwide.
In addition, Kuehne + Nagel will operate a customer call center on behalf of Whitbread and manage the ordering of products from designated suppliers. The operation, which is expected to handle more than 20 million cases per annum, will be based at a new national distribution center in Wellingborough, supported by outbases in Trafford Park, Cullompton, Harlesden, Dagenham and Livingston in Scotland. The respective Whitbread employees will transfer to Kuehne + Nagel under Transfer of Undertakings (Protection of Employment) regulations.
'There is a compelling financial case for outsourcing versus retaining our food logistics operations in-house, and we will derive significant financial benefits from moving to a new operational location,' said Alan Parker, Whitbread's chief executive officer. 'We chose Kuehne + Nagel as our preferred supplier because they offered the most attractive and competitive solution and clearly demonstrated their commitment and desire to work with Whitbread during the tender process.'