July 10, 2002—In the last year, 130m was invested in catering contracts according to the UK Contract Catering Industry 2002 survey. The industry as a whole is now worth 3.5bn, which is a 7.6% boost on last year.
The research, conducted by the British Hospitality Association and supported by the Caterplan division of Unilever Bestfoods, showed that the number of outlets increased by 3.8% and the number of meals served by 5%. The business and industry sector saw most improvement together with state education and catering for the public.
Linda Halliday, chair of Contract Catering Forum commented: “We do not need to look too far to explain this growth. Partly, it is the result of consolidation in the industry. In the UK, Compass’ merger with Granada in 1999 must be seen as one of the turning points in the development of the contract catering industry in this country, helping to create the world’s largest food service management company.”
She also said that contractors are more willing to invest in clients’ premises, which has contributed to the growth. Just under 70% of all agreements are now on fixed price/profit sharing, where the contractor shares some of the risk and some of the profit. Previously 53% were on a cost-plus management fee basis.
The number of full-time employees in catering has however declined by 14% in the last three years, while part-time staff has increased by nearly 50%. In addition, wages in the last year rose by 8.2%.
Business group director of the Caterplan division of Unilever Bestfoods, Calum Ross, said: “The number of food suppliers to the contract catering industry has reduced from 5,455 in 1995 to fewer than 1,800 in 2001. Our increased market share means we have been able to invest in our culinary services team, menu and new product development, marketing and promotions—all to the commercial benefit of our contract catering customers.”
The survey was based on a response by 15 of the major companies in the food service management industry, estimated to represent between 90 to 95% of the UK contract catering market.
—Jessica Jarlvi
Reprinted with permission; copyright 2002 i-FM
