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Contract Catering - UK - January 2017

“Austerity measures have meant continued strong pressure on public sector bodies to cut spending. While this has led to some outsourcing in the contract catering sector, it has also led to intense price competition and even reductions in some existing contracts. This is particularly true in sectors that have felt the brunt of staffing cuts, such as defence. The private sector, meanwhile, has benefitted from ongoing economic development, which has seen the gradual return of confidence and security in recent years. This has been bolstered by similar improvements in consumer confidence, the frequency with which people eat out, and growth in average expenditure.”

Marco Amasanti, Research Analyst 

This report looks at the following areas:

  • The continued need to demonstrate value for money
  • Need to tap into younger demographic
  • The potential role of technology

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Table of contents

  1. Introduction

      • Definition
        • Abbreviations
        • Executive Summary

            • The market
              • Contract catering market nears £4 billion in 2016
                • Figure 1: UK market for contract catering, £ million, 2012-21
              • Market environment by sector
                • Business and industry
                  • Schools
                    • Healthcare
                      • Prisons
                        • Defence
                          • Remote sites
                            • Market drivers
                              • National economy and British population
                                • Brexit
                                  • Growing concern around food waste
                                    • Introduction of the National Living Wage
                                      • Demand for healthier options is affecting consumer decision making
                                        • Companies
                                          • The consumer
                                            • More than half of consumers have access to workplace catering facilities
                                              • Figure 2: Available workplace facilities, July 2016
                                            • Buying lunch out of the home
                                              • Figure 3: Frequency of buying lunch to eat out-of-home, for an everyday occasion, by age, July 2016
                                            • A fifth usually spend at least £6 on everyday lunches out-of-home
                                              • Figure 4: Approximate spend on a lunch out of home on an everyday occasion, July 2016
                                            • What we think
                                            • Issues and Insights

                                                • The continued need to demonstrate value for money
                                                  • The facts
                                                    • The implications
                                                      • Need to tap into younger demographic
                                                        • The facts
                                                          • The implications
                                                            • The potential role of technology
                                                              • The facts
                                                                • The implications
                                                                • Market Size and Forecast

                                                                  • Key points
                                                                    • Market performance
                                                                      • Food service management
                                                                        • Figure 5: UK Consumer expenditure on catering, £ billion, 2005-15
                                                                      • Contract catering
                                                                        • Figure 6: UK contract catering market size, £ million, % change, 2012-21
                                                                      • Growth expected to continue into 2017 and beyond
                                                                        • Forecast methodology
                                                                        • Market Drivers and Trends:

                                                                          • Key points
                                                                            • Factors influencing consumer product choice
                                                                              • Figure 7: Factors influencing consumer product choice, 2016
                                                                            • National economy and British population
                                                                              • Figure 8: Gross domestic product, annual growth, %, 2007-15
                                                                            • Growth in under-14s should boost demand for school catering services
                                                                              • Figure 9: Trends in the total and age structure of the UK population, 2014, 2019 & 2024
                                                                            • The impact of the EU referendum
                                                                              • Negative implications
                                                                                • Potential benefits
                                                                                  • Outcome
                                                                                    • Growing concern around food waste
                                                                                      • Waste and Resources Action Programme
                                                                                        • Contract catering has lower waste levels than other kitchen types
                                                                                          • Figure 10: Where food is wasted, contract catering and mean across all kitchen types, November 2013
                                                                                        • Introduction of the NLW
                                                                                          • Figure 11: National minimum wage and national living wage, £ per hour, 2010-16
                                                                                          • Figure 12: Forecast wage rate growth, £ per hour, April 2016 and April 2020
                                                                                      • Market Environment by Sector

                                                                                        • Key points
                                                                                          • Business and industry
                                                                                            • Figure 13: UK employment and unemployment, 000, 2011-16
                                                                                          • Schools
                                                                                            • Figure 14: Trends in school numbers and numbers of pupils, 2005-16
                                                                                          • Falling proportion of pupils getting free school meals
                                                                                            • Figure 15: Rates of eligibility and claiming of free school meals, state-funded primary and secondary, %, 2011-16
                                                                                          • Universal infant free school meals
                                                                                            • Healthcare
                                                                                              • National Health Service patient demand
                                                                                                • Figure 16: Average daily available beds open overnight, England, Q1 2012/13 – Q1 2016/17
                                                                                                • Figure 17: NHS inpatient elective admission events, England, Q2 June 2012-16
                                                                                              • NHS Employee demand
                                                                                                • NHS funding continues to increase
                                                                                                  • Food costs edging upwards
                                                                                                    • The aging population should support demand for healthcare
                                                                                                      • Prisons
                                                                                                        • Figure 18: England and Wales prison population, 2012-16
                                                                                                        • Figure 19: Forecast England and Wales prison population, 2017-20
                                                                                                      • Defence
                                                                                                        • Figure 20: UK Armed Forces personnel, 2007-16
                                                                                                        • Figure 21: UK defence budget, £ billion, 2015-20
                                                                                                      • Remote sites
                                                                                                        • Figure 22: UK construction output, 2010-16
                                                                                                    • Company Profiles

                                                                                                      • Aramark
                                                                                                        • Financial information
                                                                                                          • Figure 23: Financial performance of Aramark UK Ltd, 2011-15
                                                                                                        • Company strategy
                                                                                                          • Recent developments
                                                                                                            • Bartlett Mitchell
                                                                                                              • Financial information
                                                                                                                • Figure 24: Financial performance of Bartlett Mitchell Ltd, 2011-15
                                                                                                              • Company strategy
                                                                                                                • Recent developments
                                                                                                                  • BaxterStorey
                                                                                                                    • Financial information
                                                                                                                      • Figure 25: Financial performance of BaxterStorey Ltd, 2011-14 & 2016
                                                                                                                    • Company strategy
                                                                                                                      • Recent developments
                                                                                                                        • Compass Contract Services (UK)
                                                                                                                          • Financial information
                                                                                                                            • Figure 26: Financial performance of Compass Contract Services (UK) Ltd, 2011-15
                                                                                                                          • Company strategy
                                                                                                                            • Recent developments
                                                                                                                              • Elior
                                                                                                                                • Financial information
                                                                                                                                  • Figure 27: Financial performance of Elior UK PLC, 2011-15
                                                                                                                                • Company strategy
                                                                                                                                  • Recent developments
                                                                                                                                    • Harrison Catering
                                                                                                                                      • Financial information
                                                                                                                                        • Figure 28: Financial performance of Harrison Catering Ltd, 2012-16
                                                                                                                                      • Company strategy
                                                                                                                                        • Recent developments
                                                                                                                                          • Interserve Catering Services
                                                                                                                                            • Financial information
                                                                                                                                              • Figure 29: Financial performance of Interserve Catering Services, 2011-15
                                                                                                                                            • Company strategy
                                                                                                                                              • Recent developments
                                                                                                                                                • OCS
                                                                                                                                                  • Financial information
                                                                                                                                                    • Figure 30: Financial performance of OCS Ltd, 2011-15
                                                                                                                                                  • Company strategy
                                                                                                                                                    • Recent developments
                                                                                                                                                      • Sodexo
                                                                                                                                                        • Financial information
                                                                                                                                                          • Figure 31: Financial performance of Sodexo Ltd, 2011-15
                                                                                                                                                        • Company strategy
                                                                                                                                                          • Recent developments
                                                                                                                                                          • The Consumer

                                                                                                                                                            • Key points
                                                                                                                                                              • Buying lunch out of the home
                                                                                                                                                                • Frequency of buying lunch to eat out of the home
                                                                                                                                                                    • Figure 32: Frequency of buying lunch to eat out-of-home, for an everyday occasion, July 2016
                                                                                                                                                                    • Figure 33: Frequency of eating lunch out-of-home in the last three months, by age, July 2016
                                                                                                                                                                  • A fifth usually spend at least £6 on everyday lunches out-of-home
                                                                                                                                                                    • Responses hint at further scope for premiumisation
                                                                                                                                                                        • Figure 34: Approximate spend on a lunch out of home on an everyday occasion, July 2016
                                                                                                                                                                      • Contract catering venues lag well behind rival lunchtime options
                                                                                                                                                                          • Figure 35: Venues visited for lunch out of home, July 2016
                                                                                                                                                                      • Access to Workplace Catering Facilities

                                                                                                                                                                        • 45% of employees have access to a workplace canteen
                                                                                                                                                                          • Figure 36: Available workplace facilities, July 2016
                                                                                                                                                                        • Are caterers failing to make the most of their market?
                                                                                                                                                                        • Use of Workplace Canteens

                                                                                                                                                                          • Workplace canteens shunned by 36% of potential customers
                                                                                                                                                                            • Figure 37: Use of workplace facilities, July 2016
                                                                                                                                                                          • Are canteens pricing themselves out of the market?
                                                                                                                                                                            • Figure 38: Use of workplace facilities, by household financial situation, July 2016
                                                                                                                                                                          • Older employees are less likely to use workplace canteens
                                                                                                                                                                            • Figure 39: Use of workplace facilities, by age, July 2016
                                                                                                                                                                        • Attitudes towards Workplace Catering Choices

                                                                                                                                                                          • Healthy options are key to increasing custom
                                                                                                                                                                            • Figure 40: What could workplace facilities do to improve, July 2016
                                                                                                                                                                          • The challenge of reaching older employees
                                                                                                                                                                            • Figure 41: What could workplace facilities do to improve, by age, July 2016
                                                                                                                                                                        • Attitudes Among Employees Without Access to Workplace Catering

                                                                                                                                                                          • How to build a case for workplace catering
                                                                                                                                                                            • Figure 42: Attitudes towards workplace catering among people without access to a canteen, July 2016
                                                                                                                                                                          • Open-minded on quality – But perceived value is a concern
                                                                                                                                                                            • Are older employees’ pre-conceptions holding back the market?
                                                                                                                                                                              • Figure 43: Agreement with the statement “I would use a workplace canteen if one was available”, July 2016
                                                                                                                                                                          • Use of Hospital Catering

                                                                                                                                                                            • A third of adults have visited a hospital in the last three months…
                                                                                                                                                                              • Figure 44: Hospital visiting, July 2016
                                                                                                                                                                              • Figure 45: Use of hospital catering facilities, July 2016
                                                                                                                                                                            • Patients and visitors share similar purchasing patterns
                                                                                                                                                                              • Figure 46: Use of hospital catering facilities, by reason for visiting hospital, July 2016

                                                                                                                                                                          Companies Covered

                                                                                                                                                                          To learn more about the companies covered in this report please contact us.

                                                                                                                                                                          Contract Catering - UK - January 2017

                                                                                                                                                                          US $1,857.54 (Excl.Tax)