FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
Sales in the third quarter for the contract catering sector were 41 per cent higher than in the same quarter of 2021, but still lagging pre-pandemic level, according to the latest Contract Catering Tracker from consultants CGA. From July to September 2022 sales were 9 per cent below the equivalent three-month period in 2019, when businesses were trading as normal. With inflation now exceeding 10 per cent, sales are significantly further behind pre-COVID levels in real terms.
The Tracker also shows the number of units served by contract caterers has increased by just over 500 since September 2021—but it remains more than 800 sites short of the total market at September 2019.
While trading remains difficult, the Tracker indicates that sales have steadily built momentum this year. The 2022-on-2019 comparison of -9 per cent in the third quarter of 2022 represents a steady improvement on the figures of -20 per cent and -12 per cent in the first and second quarters of the year respectively.
CGA’s Contract Catering Tracker aggregates sales from leading operators to provide quarterly reports with year-on-year analysis. It offers businesses a valuable benchmarking tool to measure performance across various metrics and market groupings, and participants in the Tracker receive additional analysis in return for their contributions.
Karl Chessell, CGA’s director – hospitality operators and food, EMEA, said: “After more than two years of COVID upheaval, contract caterers are now besieged by soaring costs that are impacting spending by their clients and consumers alike. Considering the seismic challenges, it is encouraging to see that sales are substantially up year-on-year and are approaching pre-COVID levels. Contract catering is a resilient and innovative sector, but with business and consumer confidence so fragile there are some tough months ahead.”
UKHospitality Chief Executive Kate Nicholls added: “It’s clear from this data that the record levels of inflation we’re experiencing is hitting contract catering businesses hard; whether that’s soaring costs impacting demand and sales, or the extreme food price inflation we’re seeing impact caterers in their own costs.
“It’s encouraging that sales are up year-on-year in the last quarter, and I hope that momentum continues, but the fact the sector still remains below pre-Covid levels shows the scale of the recovery required. Contract catering is an incredibly important part of our sector and what it delivers for the economy, which is why I have every faith they will continue building on last quarter’s success and ensure they continue to deliver for their customers.”
According to Pitney Bowes Parcel Shipping Index, worldwide parcel volume is likely to double in the next five years, with the UK showing the highest increase in carrier revenue of all 13 countries in the Index.
Alongside a huge uptake in the volume of parcel volume and spend, post pandemic, the adoption of hybrid working patterns means that FMs need to find ways to enable staff to book / host collaborative meetings in available workspaces and to find desk, office and parking spaces by utilising automation and data capture to enable site governance.
Yet a recent survey by FMJ in partnership with Pitney Bowes found that 20 per cent of recipients are still using manual paper-based visitor systems, which doesn’t fit with their top priority – to maintain a safe and operational environment.
This overwhelming reliance on paper-based systems is causing many respondents bottlenecks, resulting in a lack of efficiently in logging and tracking packages and people coming into the organisation.
In this webinar, Gary Abbott Director of Business Development and Stuart Bushaway, Head of Dealers Operations and FM Relationships at Pitney Bowes will outline the main findings of the two surveys and what this could mean for FMs. This will be followed by a discussion, chaired by FMJ Editor Sara Bean comprising Wayne Young – Facilities Manager, Just Eat Takeaway.com & Simi Gandhi-Whitaker, Strategic Technology Director, Connected Workspace, Mitie.
Register for the webinar here.
