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UK Contract Catering: Market insight report

  • April 2013
  • -
  • Apex Insight
  • -
  • 60 pages

This report reviews the UK contract catering market. It quantifies the size of the industry and historical growth rates while reviewing key factors behind these figures and exploring drivers of profitability.
Key strategic issues, such as the bundling of catering within integrated facilities services contracts, are explored through interviews with senior level buyers of contract catering services.
The report also analyses drivers of market growth such as employment levels and patterns, schools and hospital populations and outsourcing trends which determine demand for contract catering – setting out historical market trends and forecasts.

The contract catering industry has been one of the leaders in the UK’s outsourcing revolution but has been impacted by recent, less certain, economic conditions.
We believe that, in order for those involved in the market to make the best decisions in this complex and changing environment, they need to have access to the best information and understanding of the trends and drivers. The aim of this report is to provide this.
It is intended for contract catering and facilities management companies themselves as well as investors, banks, analysts, consultants and other parties with interests in the sector.

The report is based on
– Publicly available data including company annual reports, websites, press release and government statistics
– Interviews with contacts in the market (including customers)
– In-depth analysis of the macroeconomic environment and other relevant contract catering market drivers
Information from these sources has been synthesised and presented clearly and concisely with extensive use of charts and tables to illuminate points and support conclusions.

Table Of Contents

UK Contract Catering: Market insight report
The UK outsourced contract catering market - 5
Market definition
Segmentation

Contract catering market size and growth - 11
Market size and growth
Volume and price trends
Comparison with related measures

Contract catering market drivers - 18
Discussion of market drivers
Drivers and their impact

Contract catering market characteristics and trends - 23
Industry attractiveness
Contract trends
- Contract length and retention
- Geographical scope of agreements
- Nature of agreements
Diversification into non-catering areas
Calorie labelling

Customer views - 28
Customer satisfaction with integrated services contracts
Objectives
Supplier selection
Future intentions
Switching and in-sourcing
Use of sub-contractors

Competitive landscape - 40
Leading group
Value drivers for contract caterers
Profiles of the main operators
Summary information on medium-sized competitors

Contract catering market forecasts - 54
Key drivers forecast
Market forecast
- Volume
- Price
- Value
Risks to the forecast

Appendix - 63

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