Table of Contents
Executive Summary
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- Impact of COVID-19 on contract catering
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- Figure 1: Short, medium and long term impact of COVID-19 on contract catering, 18 December 2020
- The market
- Market size and forecast
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- Figure 2: Market size and forecast for the UK contract catering market, 2016-25, (£ billion)
- Companies and brands
- COVID-19 derails growth of new influx of outlets and companies
- Site closures are driving investments into a digitised future
- The consumer
- The impact of COVID-19 on consumers
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- Figure 3: Level of concern regarding exposure to COVID-19, March and November 2020, (% of respondents)
- Visitation of catering facilities
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- Figure 4: Visitation of catering facilities before COVID-19, September 2020, (% of respondents)
- The impact of COVID-19 on canteen usage
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- Figure 5: Future canteen usage intentions over the next 12 months, September 2020, (% of respondents)
- Canteen purchasing preferences
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- Figure 6: Motivating factors behind canteen purchases, September 2020, (% of respondents)
- Interest in food-related work benefits
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- Figure 7: Interest in food-related workplace benefits, September 2020, (% of respondents)
Issues and Insights
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- COVID-19 restrictions boost the benefits of food delivery through central kitchens
- Cost quality and hygiene
The Market – Key Takeaways
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- Coronavirus restrictions bring about severe disruption to market activity
- Vaccination programme will slowly lift consumer confidence but a no-deal scenario could derail this
- Hygiene joins environmental ideals as leading expectations for caterers
- New costs and lower revenues are pushing caterers to innovate quickly
Market Size
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- Closures and distancing cut market value in half for 2020
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- Figure 8: Short, medium and long term impact of COVID-19 on contract catering, 18 December 2020
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- Figure 9: UK contract catering market value, 2016-20, (£ billion)
Market Forecast
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- 2021 update
- Vaccination will open the path to full recovery while deployment of digital investments fills temporary revenue gaps
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- Figure 10: UK contract catering market value forecast, 2020-25, (£ billion)
Market Trends
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- Responses to COVID-19 concerns
- Health-conscious consumers are open to catering-to-home
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- Figure 11: Proportion of UK businesses currently trading that have done so for more than two weeks, selected industries, 19 October – 1 November 2020, (% of all businesses)
- Younger generations are making environmental and ethical credentials more important than ever
Market Drivers
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- 2021 update
- Effects of COVID-19 on the contract catering market
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- Figure 12: Proportion of UK businesses that have changed operation hours due to local or national lockdown regulations, selected industries, 19 October – 1 November 2020, (% of businesses)
- Supply chains
- Analytics
- Workplace catering
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- Figure 13: Proportion of businesses expecting to close sites temporarily or permanently sites, selected industries. 19 October – 1 November 2020, (% of businesses)
- Figure 14: Reasons for expected site closures of businesses expecting to close sites temporarily or permanently sites, selected industries, 19 October – 1 November 2020, (% of businesses)
- Schools and universities
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- Figure 15: Number of higher education qualifications achieved, academic year 2009/10 – 2018/19, (number of students)
- Brexit could raise costs for caterers
Companies and Brands – Key Takeaways
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- Recovery bringing in an influx of businesses and outlets will be disrupted by COVID-19
- Site closures have bolstered technology investment to facilitate a contactless future
Industry Profile
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- Changes in industry structure
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- Figure 16: Changes in the industry structure of ‘other food service’ activities, 2016-20, (number of businesses and outlets)
- Changes in employment structure
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- Figure 17: Changes in the employment structure of ‘other food service’ activities, 2019 and 2020, (number of outlets)
- Changes in financial structure
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- Figure 18: Changes in the financial structure of ‘other food service’ activities, 2019 and 2020 (number of businesses)
Company Profiles
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- Aramark Limited
- Recent activity
- Financial information
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- Figure 19: Financial analysis of Aramark Limited, 2015-19, (£ million and %)
- BaxterStorey
- Recent activity
- Financial information
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- Figure 20: Financial analysis of BaxterStorey Limited, 2014-18, (£ million and %)
- CH&CO Catering Group
- Recent activity
- Financial information
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- Figure 21: Financial analysis of CH&CO Catering Group Limited, 2014-18, (£ million and %)
- Compass Contract Services (UK)
- Recent activity
- Financial information
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- Figure 22: Financial analysis of Compass Contract Services (UK) Limited, 2015-19, (£ million and %)
- Elior UK
- Recent activity
- Financial information
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- Figure 23: Financial analysis of Elior UK Plc, 2015-19, (£ million and %)
- SSP Group
- Recent activity
- Financial information
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- Figure 24: Financial analysis of SSP Group Plc, 2015-19, (£ million and %)
The Consumer – Key Takeaways
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- Lower levels of concern reflect public’s ongoing adaptation to the pandemic
- Canteens at places of study showed most engagement
- Over a quarter of consumers will avoid canteens because of COVID-19
- Price is a key concern but quality still matters
- Consumers value food-related benefits but want more than just snacks
The Impact of COVID-19 on Consumers
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- Consumers are less worried about COVID-19
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- Figure 25: Level of concern regarding exposure to COVID-19, March and November 2020, (% of respondents)
- Decrease in furloughed status unlikely to bring step-change in consumer spending
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- Figure 26: Effects of COVID-19 on individuals, selected responses, May and November 2020, (% of respondents)
- COVID-19 is inhibiting engagement with leisure and travel activities
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- Figure 27: Consumer attitudes towards selected activities, November 2020, (% of respondents)
Visitation of Catering Facilities
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- Frequent canteen use most likely in college, university and workplaces
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- Figure 28: Visitation of catering facilities before COVID-19, September 2020, (% of respondents)
- Figure 29: Frequency of canteen visitation before COVID-19, September 2020, (% of respondents)
The Impact of COVID-19 on Canteen Usage
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- Virus exposure concerns are the leading driver of decreased canteen usage
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- Figure 30: Future canteen usage intentions over the next 12 months, September 2020, (% of respondents)
- Post-COVID hygiene marketing should emphasise what consumers think best addresses their concerns about the virus
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- Figure 31: Factors behind intentions to use canteens less over the next 12 months, September 2020, (% of respondents)
- Personal contact restrictions should bolster the implementation of digital catering platforms
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- Figure 32: Most influential COVID-related factors in encouraging canteen visitation, September 2020, (% of respondents)
Canteen Purchasing Preferences
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- Price matters as purse strings are tightened but consumers will demand quality before parting with their cash
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- Figure 33: Motivating factors behind canteen purchases, September 2020, (% of respondents)
- Desire to live up to ethical ideals is driving engagement with healthier alternatives
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- Figure 34: Canteen purchasing interests, September 2020, (% of respondents)
Interest in Food-related Workplace Benefits
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- Consumers are open to food-related benefits but want something more substantial than snacks
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- Figure 35: Interest in food-related workplace benefits, September 2020, (% of respondents)
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
Further Sources and Contacts
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- Trade associations
- UK Hospitality
- Hospital Caterers Association
- The Association of Catering Excellence (ACEGB)
- The Nationwide Caterers Association (NCASS)
- Trade magazines
- Catering Insight
- Essentially Catering
- Foodservice Equipment Journal
- Hospitality and Catering News
- The Caterer
- Trade events
- Hotel, Restaurant & Catering Show
- The International Food & Drink Event
- Catering Equipment Expo (as part of The Restaurant Show)
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