Xavier Royaux (Exki): "Everyone is a potential competitor: fast food, bakeries"

INTERVIEW – Former marketing director of McDonald's France, he took over a Belgian company emerging from crisis in mid-December. With prospects of regained profitability starting this year, Exki's new CEO has his work cut out for him. But even in the heart of a particularly competitive market, Xavier Royaux displays a communicative optimism: "I have learned in the past to always be glad to have strong competitors."

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Gondola Foodservice: You talk about "returning to the core business." What does that mean? Did Exki stray from it at some point?

Xavier Royaux: Probably. But I'm not really here to be a commentator on the past. What we are going to do differently is what was revealed in December at Place de la Bourse. We have overhauled the graphic identity, and it's not just a fresh coat of paint. We are aligning the brand with graphic codes suited for social media and digital platforms, allowing us to navigate those channels effectively. Also, we are reviewing the offering: that is the heart of the matter.

We are a restaurant above all. We are working on different types of bread, on quality, on variety (focaccias, baguettes, open-faced sandwiches), and on preparing these sandwiches in front of the customer several times a day. Our sandwiches were already prepared daily: we were in the fresh segment, and we are staying there. But we are even moving toward "ultra-fresh." We are going to increase perceived quality – because people see the preparation – but especially the felt quality.

We are also completing our selection: initiatives tested with interesting results regarding drinks (matcha) and desserts (waffles). This allows us to vary the options and extend consumption times to breakfast, late morning, and the afternoon.

Next, we are redesigning the customer journey: a more assisted dimension, more interaction, because we will be able to reheat certain recipes on demand. This means more personalization in the interaction. But also, for those who want to move faster, self-checkout at the end of the journey, or even grab-and-go. Something to provide speed for those who want to go fast!

Does this imply that even fast-food chains or similar players are competitors for you?

Of course. I believe that from the moment one of our potential customers leaves home, office, or university to go shopping... they are just like you or me on the street. So everyone is a potential competitor: fast food, bakeries, our more direct competitors. May the best win. And the best means the best in terms of taste, the best in terms of quality, and also the best in terms of value for money.

I learned in the past never to underestimate a competitor and even to always be glad to have strong competitors. There is nothing worse than having weak competitors because they make mistakes. When they make mistakes, they damage the market.

But, you know, I think today the important thing is to look through the eyes of a consumer; I don't think they leave home with a Nielsen panel in their head. They leave home with cravings, sometimes very specific desires to go to a certain place: if it’s our place, all the better, but if we can divert them from their path, that’s great too.

When you talk about redeployment, is it exclusively the number of restaurants you want to increase?

Not only: I know few shareholders who would be satisfied with an investment plan that isn't profitable. So, more revenue through more restaurants, but also more revenue in each of the restaurants: via the variety of the offer, the role of digital, and the role of communication. This growth must be profitable to be sustainable.

We are not yet communicating precise figures for our objectives. But in broad terms, the goals are redeployment in terms of the number of restaurants and creating more visits to existing restaurants via the offering, digital tools, and communication.

The state of the Exki brand today, the premiumization strategy, price perception, retail presence, internationalization… all these points are discussed with Xavier Royaux in his full interview, to be found in the Foodservice pages of the next Gondola magazine.