Table of Contents
Introduction and Abbreviations
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- Definition
- Abbreviations
Premier Insight
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- A holistic approach to menu development and catering provision required
- A tiered meal system for schools?
- Extending services and service hours will help stimulate additional demand
Summary of Key Report Findings
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- The contract catering market is worth in the region of £4 billion
- A market in the midst of consolidation
- Competition is rife
- It’s tough at the top
- Facilities management is changing the supplier landscape
- More ‘grab and go’ and less hot meals
- Health a big issue
- More emphasis on design and ambience
- Technology will be used to improve customer service
- Less room to move
- Central production and ‘cook chill’ growing in use
- More retail opportunities
- Vast potential still exists
Market Factors
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- The economic environment is conducive to business
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- Figure 1: GDP, PDI and CONEXP, at current and 1999 prices, 1999-2009
- Staff shortages are hindering expansion and development plans
- The minimum wage has had a mixed impact on businesses
- Growth in outsourcing and a multi-service approach
- In-house branding now an essential device
- The high street is a major source of competition
- Home working might spell the end of the staff restaurant
- The impact of the snacking habit
- Healthy options desired, but will it make caterers wealthy?
- The end of yucky school dinners?
- A wealth of opportunities within independent schools
- Extended schools could boost profit margins
- Vending in schools – a necessary evil?
Market Size and Trends
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- Figure 2: Contract catering market size measured, by turnover, 1999-2004
- Figure 3: Breakdown of turnover, by purchase type, 1999-2003
- Key market trends
- Number of contract catering enterprises
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- Figure 4: Number of UK vat-based companies engaged in the operation of canteens and catering services, by size of turnover, 1999-2004
- Types of contract
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- Figure 5: Breakdown of contract types, by number of outlets, 1999-2003
- Brands
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- Figure 6: Branded outlets, 1999-2003
- Support services
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- Figure 7: Support services provided, by catering contractors, 2003
- Private Finance Initiative (PFI)
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- Figure 8: Number of PFI projects with contract caterers involved, 2001 and 2003
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Market Segmentation
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- Number of outlets
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- Figure 9: Structure of the contract catering market, by number of outlets, 1999-2003
- Number of meals served
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- Figure 10: Number of meals per market segment, 1999-2003
- Business and industry
- Healthcare
- Education
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- Figure 11: total number of schools and pupils within the state and independent sector, 1999 and 2004
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- Figure 12: School meal suppliers, 2003
- Public catering
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- Figure 13: Prison population, April 1999-April 2003
- Ministry of Defence
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- Figure 14: UK defence personnel, 1999-2003
The Supply Structure
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- Compass Group plc
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- Figure 15: Compass Group plc turnover, by division, 2003
- Figure 16: Compass Group plc turnover, by region, 2003
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- Figure 17: Compass Group, financial performance, 1999-2003
- Sodexho Alliance
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- Figure 18: Sodexho Alliance turnover, by region, 2003
- Figure 19: Sodexho Alliance turnover, by division, 2003
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- Figure 20: Sodexho, financial performance, 1999/2000-2003/04*
- Aramark
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- Figure 21: Aramark Corporation, financial performance, 1999-2003*
- Elior UK
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- Figure 22: Elior Group turnover, by sector, 2003
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- Figure 23: Elior group, financial performance, 1999-2004*
- Other caterers
Business Practice and Development Strategies
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- Strategies and tactics for growth
- Main areas of growth
- Multi-service provision is not always the natural route for caterers
- Growth lies in innovation and being attuned to client needs
- Small operators tend to focus on penetrating existing markets
- Small is beautiful
- Branding – Is it still critical?
- The Development of New and Bespoke Concepts
- Developments are market and client driven
- Researching the market involves keeping track and staying ahead of consumer trends
- The Client-Caterer Relationship
- Catering consultants – A barrier to the client-catering company relationship?
- Menu Development and Food Issues
- Clients want portable food and snack solutions
- Health is on the agenda
- It is about offering choice and educating clients
- Going ethnic
- Working together with the client to develop menus
- An altering landscape
The Future
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- PAYD will pave the way for expansion
- Most innovation in business and industry sector
- Beyond branding – more bespoke, less ‘one size fits all’
- ‘Cook chill’ will grow in use
- Healthier options will become more of an essential part of the catering offer
- More services, more skills
- More marketing, more merchandising
- Expansion of risk and investment contracts
- Competition will intensify further
- Broader retail offer from caterers expected
- Technology usage set to rise
- Training will take centre stage
Forecast
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- Figure 24: Forecast of the contract catering market, 2004-09
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