Catering has continued to converge with facilities management. Many of the leading catering companies now offer additional services, enabling them to increase revenue per contract – the key industry value driver – while leading FM groups and integrated service providers increasingly include catering as part of their bundled service offer.
Customers interviewed by Apex Insight split between those who are keen on the idea of catering being part of a bundled service and those who see value in keeping it separate. Some customers report it gives them cost savings and efficiency benefits, in particular from having a single point of contact for all services. However, others feel that an integrated provider, especially one which lacks the capabilities to self-deliver catering services, does not add enough value to justify its management fee, or that catering, being more important to staff morale than other services, is worth leaving to a specialist.
The largest operators are Compass and Sodexo. Both of these companies have continued to expand their service offer to include a wide range of non-catering services and are now major international operations with presence in many countries. However, the fastest-growing of the leading companies has been BaxterStorey. In contrast, it has retained its focus on UK catering, winning a series of high-profile contracts from incumbent competitors.
Future growth in the contract catering market appears likely given the further potential for outsourcing. In setting out its forecast for the market, the report takes into account the different conditions in each of the main segments. For example, in the business & industry segment, changing workforce trends, such as increased part-time and home working, are reducing the impact of recovery in private sector employment levels. In education, demographic trends have led to school numbers to increase, but some observers expect increases student numbers to stall given recent changes in university funding. And in healthcare, demand for residential care continues to increase with an aging population, but funding of care remains a challenge.
The full market report: “UK Contract Catering: market insight report”, which includes insights from interviews with customers, profiles of the leading players, including Compass UK & Ireland, Sodexo, Aramark, Initial Catering Services, Baxter Storey,
Avenance, Bartlett Mitchell, Cygnet Foods, Harrison Catering Services, Host Contract Management, Lexington Catering, 7 Day Catering and Lindley Catering as well as growth forecasts for the market and its key drivers, is available from apex-insight.com/research