75 Years On: MKG Foods' Enduring Innovation An Entrepreneur UK interview with Philip Mayling, CEO of MKG Foods

Soon to celebrate its 75^th year in business, family-run food distribution company, MKG Foods has remained strong in the face of competition, not to mention significant challenges from recessions and Brexit to the COVID-19 pandemic.

Entrepreneur UK spoke to CEO, Philip Mayling – grandson of MKG's original founder – to find out just how the company continues to survive and thrive.

So, Philip. MKG has been running successfully for three quarters of a century now, which is no mean feat. What's your philosophy when it comes to building company resilience? Can you give us an example of this in action?
We're incredibly proud to have reached the 75-year mark – and I genuinely believe we've come so far thanks to our willingness to adapt and tackle challenges head on. It's all about responding proactively to whatever stands before you, rather than allowing yourself to be held back by doing things a certain way, just for the sake of tradition.

You can't just sit back and watch things happen to you – because that's how companies disappear. For instance, when the March 2020 lockdown hit and closed down 90% of our competitors overnight, it would have been easy for us to throw our arms up and wallow in helplessness. But rather than waiting for things outside our control to get better – waiting for our usual customers to come back – we decided to do something about the things we could control, keenly aware that we needed to pivot fast if we were going to remain afloat. Partnering with local authorities, we switched from large-scale distribution to providing food parcels for vulnerable people. Yes, this business model was completely new and out of the box – but it allowed us to keep going and survive. Plus, we were able to support the community at a difficult time, cementing our people-first reputation.

The UK food industry is now seeing high levels of consolidation, which has left many smaller businesses struggling. How do you see MKG Foods thriving within its market over the next decade in the midst of this particular challenge?
One of the biggest mistakes an SME can make is forgetting what makes it special. We are a family-run business – and that's our competitive edge, allowing us to establish much deeper, more longevous relationships with our customer base. Try as they might, larger, more established corporations will never have that – so naturally, we do our utmost to protect and market these qualities, prioritising relationships that are built for the long term.

Rather than trying to blend in with the big players and mimic their strategies, SMEs like us need to focus on their own uniqueness – of course, whilst remaining agile. And this is precisely what MKG Foods will do, continuing to do what we do best by treating our customers like family – but also remaining flexible enough to balance out that established identity with brand-aligned progress.

Related: How to Succeed as a Family Business: Insights from The Seventy Ninth Group's Jake Webster

As an entrepreneur, you've also been flexible in how you've embraced technology, using everything from CRMs to event management platforms to support your business. How has technology influenced your approach to operations? And how has it affected customer relationship management and MKG Foods?
Technology has come to play a huge part in what we do. But it's a tool, rather than a replacement. For instance, our CRM helps us to manage customer relationships better – supporting our efforts to connect with those we serve, rather than making things impersonal. The insights gained from the system tell us more about the people we work with, enabling us to anticipate their needs and provided a more personalised service, supported by our human touch.

Technology has also made things like tracking orders, responding to queries and monitoring market trends much faster, not only allowing us to adapt on time – but also maintain the strong relationships we've already built. And for us, that's what technology is all about. There has to be a balance, where you're not investing in things for the sake following trends, but integrating tools that you know will bring tangible benefit, in terms of both operations and values. There's no point spending money on systems that won't support what you're trying to do.

Beyond the support of tech, do you feel the government is doing enough to support business? Lord Bilimoria, the new head of the International Chambers of Commerce, has said that tax rises are stifling enterprise and ministers are refusing to listen to entrepreneurs. Do you agree? Is the government doing enough to support entrepreneurship in the UK or does it need to do more to create conditions needed for growth and investment?
In short, no. I had high hopes for Labour, especially as the change of party after a decade of Conservative government promised much-needed democratic renewal. But the reality has come as a disappointment. The tax increase bombshell has hit both businesses and their employees hard, with additional employers' legislation only making things more complex and cutting off growth. If we continue to allow the economy to fall, waving goodbye to hundreds of entrepreneurs who are fleeing the country due to a lack of support, let's just say it won't come as a surprise when things inevitably come to a halt. The government needs to commit to a proper pro-growth strategy, implementing measures that encourage investment, if we are to fix this.

Many businesses have also fallen through because they adhere to an "it it ain't broke, don't fix it" mentality – failing to keep up with the times. How have you found introducing new ideas and ways of working in a well-established business like MKG Foods?
Progress will always be important, as long as there's a reason behind it. Like I said earlier, change for the sake of change isn't helpful. So, the first step of introducing any new idea is to make sure you actually need it and understand what it can bring to the table. Then, you need to communicate these benefits immediately to each and every stakeholder – making sure they feel included and involved. Explain what exactly this change means for them and how it will help them in their roles. Presenting the "why" early on is the only way to ensure people get on board, eliminating the risk of culture rejection that ultimately locks you into outdated processes, allowing the business to stagnate.

As the third generation of your family to run the business, you must seen a lot of changes – and that can't have been easy, especially when working with family. What words of advice would you give to others in your position, at the head of a family-owned business?
It's simple, really. It's all about trust. Everyone will have been given their roles and responsibilities – and it's your job to make sure they're clear on what they need to do. Beyond that, you have to let them get on with it. Don't hover! Trust is more important than ever in a family-owned business, where you've got to make a concerted effort to avoid stepping on each other's toes!

Clear boundaries are, of course, a must, separating personal from business life to the necessary extent. You have to learn to see each person as the recognised expert that they are, rather than just your family member, trusting them to get things right. Constant oversight will only lead to conflicts that could potentially prevent the business from ticking over and moving on.

Finally, are you able to share your long-term plans and objectives for MKG Foods? How will you ensure the company remains strong as it approaches its centenary?
Like any company, we have plenty of long-term objectives, planning ahead for large purchases like vehicles, property and plant – because that's what you need to do. But, for everything else, I tend to avoid looking too far ahead. In my experience, five-, ten- and even twenty-five-year plans are centred around buzzwords – profitability, culture building and revenue growth – which mean very little when they're not put into an everyday context. So, whilst we naturally will have larger goals in place, these are movable and the most important thing is to look to the next year, to the next week and to what's going on today. That gives you much greater flexibility when you come across an unexpected bump in the road – and this agility is precisely what keeps our business afloat.