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Contract Catering & Foodservice Management Market Report 2013

  • January 2013
  • -
  • Key Note Publications Ltd

Summary

Table of Contents

Executive Summary

This Key Note Market Report examines the contract catering and foodservice management industry in the UK. In 2012, according to Key Note estimates, the market grew by 3.9%.

The contract catering and foodservice management market is divided into the following five sectors: business and industry (B&I); education; healthcare; catering for the public; and other contract catering and foodservice management, e.g. offshore and the Ministry of Defence (MoD), with the B&I sector accounting for the largest share of the industry. In addition to catering options, businesses typically offer complementary services, such as cleaning, security and grounds maintenance. The industry is part of the hospitality sector, a pillar in the UK economy.

The contract catering and foodservice management industry has not been immune to the economic crisis. Turnover declined in 2010; in addition, the number of meals served and provided by outlets declined across the market. Although the industry has gradually begun to recover, the process has been slow. The sector most affected by the economic crisis has been the B&I category due to company closures, falling employment levels and professionals skipping lunch, instead preparing packed lunches or opting for a high street meal deal. However, cuts have been — and continue to be —implemented across all sectors, as businesses are forced to reassess their expenditure, creating a degree of uncertainty in the market.

In spite of this volatility, the industry is proving resilient. In order to cope with market conditions, companies are restructuring their operations and cancelling unprofitable contracts and reassessing their supply chain. In addition, enterprises are keeping up with market trends by offering healthier menus and convenient solutions, as well as promoting their corporate social responsibility (CSR) policies. This is helping them to retain their appeal in the market. Companies’ faith in the sector is evidenced by the fact that the number of businesses involved in the market has continued to grow, in spite of the downturn.

Although tough market conditions are forecast, Key Note predicts that the contract catering industry will continue to grow on an annual basis over the next 5 years. Between 2013 and 2017, the market is forecast to rise by 15.7%. Sales will be generated in all sectors, though at varying speeds. These will be driven by the ability of catering companies to promote outsourcing and through their investments in complementary support services.

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