Table of Contents
- Issues in the Market
- Main issues
- Definition
- Terminology
- Abbreviations
- Market in Brief
- Number of outlets, meals dropping
- Credit crunch hits catering
- Food costs rising across the board
- Drive to nil-subsidy contracts
- Changing consumer habits
- FM companies on the rise
- Skills shortages are an enduring problem
- Broader Market Environment
- Key points
- B&I catering intimately linked to the health of the wider UK economy
- Figure 1: Trends in personal disposable income and consumer expenditure,
2003-13
- Long-term employment patterns
- Impact of rising unemployment
- Strengths and Weaknesses in the Market
- Strengths
- Rise of FM companies
- Franchising
- Expanded product offerings
- Weaknesses
- Food costs
- High street competition
- Credit crunch
- Competitive Context
- Key points
- Varying performances of contract catering sectors
- Figure 2: Competitive context of the contract catering market, 2007
- Contracted outlets versus in-house operations
- Figure 3: Total number of outlets in business and industry, 1990-2007
- Market Size and Forecast
- Key points
- Figure 4: The business and industry contract catering market, 2003-13
- Past market
- Present market
- Future market
- Factors incorporated in the forecast
- Segment Performance
- Key points
- Outlet numbers
- Figure 5: Total number of business and industry outlets served by
contract caterers, 1991-2007
- Number of meals
- Figure 6: Number of meals in the business and industry market, 1991-2007
- Companies and Products
- Key points
- Accent Catering
- ARAMARK
- Bartlett Mitchell
- BaxterStorey
- Charlton House
- Compass (Eurest Services)
- Figure 7: Compass Group financial performance, H1 2007 and H1 2008
- Elior (Avenance)
- Initial Catering (Autograph)
- Sodexo
- Catering Business Models
- Key points
- Trend towards strategic outsourcing
- Figure 8: Support services provided by food and service management
companies as part of a catering contract, 2007
- Clients increasingly demanding investment from FMs
- Figure 9: Number of outlets in which FM companies invested, by level of
investment, 2007
- Types of catering contract
- Figure 10: Types of catering contract, 2005-07
- The great nil-subsidy debate
- Move towards more bespoke approaches to contracts
- Client and Contract Caterer Relationships
- Key points
- Contract fatigue and the impact of the faltering economy
- Greater transparency in the quest for value
- Expectations of innovation continue unabated
- Communication, communication, communication
- Partnership is the key
- Contract Catering Employment Issues
- Key points
- Skill shortages across the catering industry
- Labour costs in the contract catering industry
- Figure 11: Labour costs as a percentage of turnover, 1993-2007
- Part-time staff numbers rising
- Figure 12: Number of employees, 1993, 2002-07
- Staff retention growing in importance
- Positive attitude towards migration
- Long-term training solutions to the skills shortage
- Rising Food Costs
- Key points
- Food inflation on a global scale
- Figure 13: Commodity price data, by annual averages, 2006-08
- Factoring in food inflation for contract caterers
- Figure 14: Food costs as a percentage of turnover in the contract
catering market, 1993-2007
- Menu engineering
- Tariff rises may be inevitable
- But managing food costs is all part of the game
- The Role of Brands and the Impact of a Competitive High Street
- Key points
- Consumers want bang for their buck
- Competition from the high street
- Figure 15: Branded outlets operated by food and service management
companies, 1994-2007
- In-house brands failing to produce
- Utilising high street coffee concessions
- So what options does that leave?
- Corporate Social Responsibility and Energy Concerns
- Key points
- Corporate Social Responsibility: the age of accountability
- What is it?
- Legislative concerns
- Companies Act 2006 (UK)
- ISO 14001 (International)
- Sarbanes-Oxley Act 2002 (US)
- Pros of CSR
- Cons of CSR
- Energy prices pressure market
- Case Study: Rentokil
- Background
- Policy
- Achievements
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