In conversation with Kaizen Institute
Hotel Chocolat’s fulfilment operation sits behind one of the UK’s fastest growing direct-to-consumer retail brands, and in recent years that growth has tested every part of the warehouse: capacity, systems, and the people running both. Scaling a distribution site while keeping daily deliveries on time is rarely straightforward, and Hotel Chocolat had to do it while online demand rose sharply, and long-standing ways of working changed at the same time.
Lea Bibby joined Hotel Chocolat as Systems, Stocks and Change Manager after 24 years at Tesco across distribution and head office roles. His experience since joining points to something that often gets overlooked in operations under pressure: extra capacity only helps if the discipline and engagement to use it properly are already in place.
In this interview, Lea reflects on scaling the warehouse, protecting stock integrity through a major transition, and how sustained engagement and structured routines, supported by the Kaizen Institute, carried the team through a period of rapid change.
Scaling capacity under pressure
What were the main challenges facing Hotel Chocolat’s fulfilment operation when you joined?
— Lea
When I joined, we were moving into a new side of the warehouse, so racking and capacity were an immediate priority alongside growth. Everything was touched at once: there was no downtime to make the changes separately from the day job. We were increasing capacity, working around contractors and adapting processes, all while still delivering to customers on time and meeting demand.
That combination, running business as usual while rebuilding capacity underneath it, was the real test. It meant every decision had to account for both the day-to-day operation and where we needed to get to.
Growth without downtime
How did you scale the warehouse without disrupting daily operations?
— Lea
We went from around 15,000 pallet locations to roughly 25,000, adding a substantial new side to the warehouse. What surprised us was how quickly even that extra space felt tight. We were growing so fast that shortly after making the change, we were already looking at the next capacity challenge.
It taught us that scaling isn’t a single event you complete and move past. It’s continuous, and the processes and routines you put in place need to be built to keep working as the numbers keep climbing.
Discipline protects stock integrity
How did you protect stock integrity through that transition?
— Lea
Our ways of working are still largely manual, so a lot of checking has to happen. The stock team plays a key role, but so does everyone adhering to the right processes. We introduced regular checks and routines, which we still run today because it’s best practice. Anything found, or not found, in the right place gets investigated, the cause established, and the issue corrected.
Moving thousands of pallets while keeping tight control of where they are comes down to routine and discipline. Without that, you lose track very quickly, and downtime searching for stock is the last thing you want during peak demand.
Engagement through change
What kept people engaged through such a sustained period of change?
— Lea
People need to understand what journey they’re on and why the changes are happening, even when a change isn’t necessarily the easiest thing for them personally in the short term. We used work groups, briefings, and regular walks around the shop floor to talk to people directly and understand what the problems were from their point of view.
That sense of being part of the bigger picture made the difference. When people know where the business is going and feel part of getting there, it changes how they engage with the work day to day.
Flexibility across the workforce
How did workforce flexibility help you respond to the surge in online demand?
— Lea
Online volume increased very quickly as the balance between retail and online shifted, and the business had to react fast on resourcing. Traditionally, skills tended to stay within certain areas, but that changed completely. People had to support other parts of the site, and they were willing to do it, because they understood where the pressure was and why it mattered.
We also treated agency staff exactly the same as our core team: regular communication, being upfront about the challenges, and working through them together. Everybody needed to understand where we were going, not just the permanent team.
Planning for every scenario
How did you plan for so much uncertainty?
— Lea
We had contingencies for contingencies for contingencies, so no stone was left unturned. Plan A, Plan B, Plan C, Plan D: whatever happened, we wanted to be ready for it.
That mindset carried through into how we used space too. During peak, pack benches took priority over retail space; when conditions changed, we could flex that space back. Building in that flexibility from the start meant we could react to demand shifts without starting from scratch each time.
Building sustainable structure
What value has Kaizen Institute’s support brought, and where does the collaboration go next?
— Lea
It helps put structure in and organise what we’re doing, with the team sharing ideas and experience so the routines we introduce are genuinely sustainable rather than a short-term fix. Daily start and end-of-shift catch-ups, trackers against capability, and Gemba walks during the shift all came from that structure, and everyone across the site takes turns doing them, not just the manager responsible for that area.
We’re still at the very beginning of the journey. Even now, there’s still so much to do, and the challenges around future growth keep the need to improve constant. It’s a never-ending journey.
Key takeaways
Hotel Chocolat’s fulfilment growth was not sustained by capacity alone. Warehouse space and racking solved one problem, but the routines, checks and engagement built alongside them are what let that capacity function under pressure. The shift that made the difference was cultural as much as physical: people moving between departments, taking on Gemba walks regardless of role, and treating agency staff with the same communication as permanent employees.
Two lessons stand out. First, discipline and routine are what make scale usable: without regular stock checks and structured tracking, added capacity creates confusion rather than capability. Second, contingency planning works best as a mindset rather than a document: preparing for scenarios before they happen, rather than reacting once they do, is what let the team absorb sudden demand shifts without losing control.
Looking ahead
Hotel Chocolat’s warehouse expansion was never framed as a project with a finish line. Each stage of growth, from the new racking to the shift toward online fulfilment, created the next capacity question rather than closing it. That pattern is likely to continue as the business grows further into international markets and online channels.
For operators managing fast-growing distribution networks, the lesson is less about the scale of any single expansion and more about building routines that hold up as volumes keep changing. As Lea Bibby observed during the conversation:
We’re still at the very beginning of the journey, I guess, because even looking around today there is still so much to do.
That view, of growth as ongoing rather than finished, is likely to resonate with any fulfilment operation navigating sustained demand growth in the years ahead.
Continue your journey with more episodes of the Hotel Chocolat Webinar series. The conversation continues in Episode 4.
Missed episode 1 and episode 2? Hear how Hotel Chocolat built the culture behind the process.