Interview with Just-Eat MD David Buttress

WeLoveBusiness.co.uk talks to the MD of the UK’s biggest takeaway website business Just-Eat.co.uk, David Buttress. The website offers consumers their favourite local takeways with the convenience of ordering via the net and paying by card without having to pay any extra for their food. Just-Eat recently closed a round of funding which will help the business with its expansion plans.

What was your first ever job?

My brother and I started our own paper round when I was eleven competing with all the local newsagents and we won! We built a nice niche where we lived, we kept it going until we both left for university at 18, we then sold our customer base to a local newsagents. My one and only ‘exit’ to date!

What age did you start your first business?

I was eleven.

Have you always been an entrepreneur?

I think there are degrees to which someone is entrepreneurial. I have always been very driven, ambitious and wanted to do something I helped create so in that sense I guess I am.

I see you went to university but also gained experience in big business before starting your own, do you think education or experience is more important for an entrepreneur?

For me personally it would be experience. I did not enjoy my academic university life (socially it was great) and couldn’t wait to get out and work. That was my fault though, I should have studied something I was passionate about rather than something I thought would be good for my career.  I learnt a important lesson from making that mistake do things you believe in!

What was it like working for yourself after working in such a large business (Coca-cola) ?

Liberating, wonderful and terrifying probably in that order.  Coke is a great place to work but I was approaching thirty and wanted to feel like I had been part of building something from nothing. I guess it was a early mid-life crisis looking back on it ….

Did you plan to progress any further in Coca-Cola or was it always your intention to start a business?

I was really happy at Coke and was progressing well through the corporate structure and I especially loved my role working with the UK restaurant sector but sometimes you have to take a risk and it was just the right time for me.

What is Just-Eat and how long has it been established for?

Just-Eat.co.uk is the UK’s biggest and best online takeaway ordering website. Think of the old fashioned concept of a menu in your kitchen draw and then phoning a takeaway, Just-Eat lets consumers place a takeaway order the smarter way through the web, paying safely by card or cash with the order going direct to the local restaurant using our bespoke technology in 2 seconds. How good is that!

Could you explain the business/revenue model in a little more detail please?

The business model is very simple consumers pay nothing to just-eat and the menu price is the same as if you ordered via the phone. Restaurants pay a small commission of every order to Just-Eat and that is how we make money!

Are there any other co-founders of the business?

The leading co-founder of the business is Jesper Buch but he is no longer involved day to day in the business although he is still a share holder. The remaining co-founder is Carsten Mikkelesen and he is also no longer involved in the day to day but also still a share holder.  The business is now run and managed by a management team, we have a good mix of veterans and new guys, headed up by our CEO Klaus Nyengaard.

You recently received some substantial funding, have you found it particularly difficult raising finance it the current economic climate?

Our CEO and CFO headed up a process that I took part in which was really interesting as I had not been involved in a VC process before.  I have to confess I was a bit spoilt and got to do the fun ‘presenting bit’ it was Klaus and Mike (our CFO) that had the tougher task of all the details and deal making!  We had a great story that was bucking the market trends so that helped a lot.

Just-eat is a growing, successful business, what would your advice be for anyone looking to start a business?

I would say choose your partners carefully because you need people who you are happy to work with for a lot of hours for several years so chemistry is important as well as trust.  Also be prepared to take a few risks and make lots of fast decisions in the early days, you’ll get some wrong but as the majority of them are right then you’ll end in a better position than if you take a long time to get moving.

What is your secret to success?

I am not sure I have got to a position where I can answer that!  Even if I had professionally, what I do everyday for work is not something I see as something that defines my success. My personal and family life are the measures of that.

What are your expansion plans for the business?

Yes we are expanding aggressively around the UK and internationally! We will have a sales team of nearly 30 full time people by the middle of 2010 just in the UK so we can provide a decent choice of takeaways to consumers all over the UK by the end of 2010. That is our number one priority as well as telling people we exist!  Internationally our plan is to open in a couple of additional countries in Europe later this year as well as to establish our N.American position in Canada, the international piece is being led by Rasmus Wolff our VP of Int.Markets.

I see you have a personal blog DavidButtress.com, do you think it is important for an entrepreneur to build a personal brand too?

Well I have to confess it is not something that comes naturally to me. I am quite a private person by design and have a close group of friends and family but I do enjoy blogging now I have got into it! It is interesting to talk about the things you care about and connect to people who are either like minded or interested in what we are doing. The blog for me is more of a reflection of just-eat success not mine.  I think too many entrepreneurs put their personality before the business and try and present something that are not in reality or to become some kind of celebrity. I am not interested in that, I will be who I am and if people like what I write then great, if not then honestly I won’t lie awake at night worrying about it!

I notice that you have been doing some TV advertising, do you think this is a medium that is still successful in today’s society?

No matter what or how powerful the online world has now become TV is still the best place to create a mass market brand and tell lots of people you exist. Being a online business we were very sceptical and have done a lot of testing to make sure TV ‘worked’ and in our sector and according to our data it does!

What 5 qualities would you say are the most important characteristics of being an entrepreneur?

Mmm that is a tough one as it really depends and there are lots of dimensions but for me there are four key ones so I didn’t bother with the fifth! It would be determination bordering on bloody mindedness, be charismatic and able to inspire people to believe in what you are doing,  very very hard working and be willing to be creative on lots of levels!

What do you love most about running your own business?

Well at just-eat it isn’t just me of course we have a strong team! In the UK and in the Group we have a strong mgt team and that for me is the bit I love the most, helping to build a company with your partners and friends is what it is all about.

At which stage do you most enjoy running a business (startup, growth stage or maturing stage?)

I have to say the maturing stage, because then you know you are on your way to a success! The early days are great fun though…not sure my wife would agree about the fun part!

What’s one thing you would change about the British business system i.e. bureaucracy, taxation etc?

I would change a lot as I am very interested in politics. I think the government should let the markets decide what happens with a minimum amount of regulation.  Britain has a great history of entrepreneurs and the more we can free their hands to build prosperity the better.