2020
9
UK Contract Catering Market Report 2020
2021-01-13T03:03:22+00:00
OX989538
1495
131171
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Report
en_GB
“The contract catering market has been hit hard by the coronavirus pandemic. The widespread closure of catering sites has inhibited activity and where operation is possible, has entailed extra costs…

UK Contract Catering Market Report 2020

£ 1,495 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK Contract Catering market including the behaviours, preferences and habits of the consumer.

The coronavirus pandemic has discouraged canteen usage with over half of respondents (53%) stating that they would visit canteens less over the next 12 months, and 69% of these people listed concerns over exposure to COVID-19 as a reason for visiting canteens less.

A rising number of cases and a new strain of COVID-19 led to a rising number of local lockdowns, and on 4 January 2021 the announcement of a new national lockdown. The harsher measures will severely restrict contract catering operations through most of Q1 2021 and are likely to prolong the market’s recovery beyond that as businesses will delay reopening offices and other facilities will remain out of action.

Consumer wariness, in addition to COVID-19-related closures and restrictions subdued the contract catering market’s performance in 2020, and led to a 55% reduction in its value to £2.7 billion. Closures and restrictions limited operational capacity, resulting in a misalignment between overheads and revenues. This has significantly impacted travel caterers, which have seen a dearth of passengers at rail stations and airports, with no long-term resolution beyond the rollout of the vaccination programme.

Quickly understand

  • The impact of COVID-19 on the contract catering market
  • The impact of COVID-19 on consumers’ use of canteens and how caterers are responding to COVID-19
  • How public awareness about health and wellbeing can be tapped into by corporate caterers
  • How younger generations are driving investment into better ethical and environmental practices
  • How Brexit is likely to affect the contract catering market
  • Consumer attitudes, behaviours and preferences in the contract catering market
  • Industry structure, company activity and operators’ responses to COVID-19.

Covered in this report

Main sections of contract catering covered: Business and industry: company staff catering, including government and agency locations. Local authorities: local government. Education: including both state education, such as schools, colleges and universities and independent schools. Healthcare: including NHS and trust hospitals, private hospitals, and private nursing homes. Defence: MoD and armed services. Remote sites: including oil rigs, training centres and construction sites. Retail catering: including catering for the public in high-street retail outlets.

Expert analysis from a specialist in the field

Written by Francesco Salau, a leading analyst in the B2B sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The contract catering market has been hit hard by the coronavirus pandemic. The widespread closure of catering sites has inhibited activity and where operation is possible, has entailed extra costs and lower capacity due to social distancing regulations. Leading operators are moving quickly to develop and implement technology-based solutions to minimise personal contact on-site. These solutions will also increase their addressable market by enabling food delivery, while also offering the long-term opportunity for the deep integration of analytics across caterers’ activities to enable cost-savings and waste reduction.

Francesco Salau
B2B Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: Market context
    • Impact of the January 2021 lockdown and the vaccination rollout
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on contract catering
      • Figure 1: Short, medium and long term impact of COVID-19 on contract catering, 18 December 2020
    • The market
    • Market size and forecast
      • 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
      • Figure 3: Level of concern regarding exposure to COVID-19, March and November 2020, (% of respondents)
    • Visitation of catering facilities
      • Figure 4: Visitation of catering facilities before COVID-19, September 2020, (% of respondents)
    • The impact of COVID-19 on canteen usage
      • Figure 5: Future canteen usage intentions over the next 12 months, September 2020, (% of respondents)
    • Canteen purchasing preferences
      • Figure 6: Motivating factors behind canteen purchases, September 2020, (% of respondents)
    • Interest in food-related work benefits
      • Figure 7: Interest in food-related workplace benefits, September 2020, (% of respondents)
  3. Issues and Insights

    • COVID-19 restrictions boost the benefits of food delivery through central kitchens
    • Cost quality and hygiene
  4. The Market – Key Takeaways

    • 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
  5. Market Size

    • Closures and distancing cut market value in half for 2020
      • Figure 8: Short, medium and long term impact of COVID-19 on contract catering, 18 December 2020
      • Figure 9: UK contract catering market value, 2016-20, (£ billion)
  6. Market Forecast

    • 2021 update
    • Vaccination will open the path to full recovery while deployment of digital investments fills temporary revenue gaps
      • Figure 10: UK contract catering market value forecast, 2020-25, (£ billion)
  7. Market Trends

    • Responses to COVID-19 concerns
    • Health-conscious consumers are open to catering-to-home
      • 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
  8. Market Drivers

    • 2021 update
    • Effects of COVID-19 on the contract catering market
      • 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
      • 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
      • Figure 15: Number of higher education qualifications achieved, academic year 2009/10 – 2018/19, (number of students)
    • Brexit could raise costs for caterers
  9. Companies and Brands – Key Takeaways

    • 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
  10. Industry Profile

    • Changes in industry structure
      • Figure 16: Changes in the industry structure of ‘other food service’ activities, 2016-20, (number of businesses and outlets)
    • Changes in employment structure
      • Figure 17: Changes in the employment structure of ‘other food service’ activities, 2019 and 2020, (number of outlets)
    • Changes in financial structure
      • Figure 18: Changes in the financial structure of ‘other food service’ activities, 2019 and 2020 (number of businesses)
  11. Company Profiles

    • Aramark Limited
    • Recent activity
    • Financial information
      • Figure 19: Financial analysis of Aramark Limited, 2015-19, (£ million and %)
    • BaxterStorey
    • Recent activity
    • Financial information
      • Figure 20: Financial analysis of BaxterStorey Limited, 2014-18, (£ million and %)
    • CH&CO Catering Group
    • Recent activity
    • Financial information
      • Figure 21: Financial analysis of CH&CO Catering Group Limited, 2014-18, (£ million and %)
    • Compass Contract Services (UK)
    • Recent activity
    • Financial information
      • Figure 22: Financial analysis of Compass Contract Services (UK) Limited, 2015-19, (£ million and %)
    • Elior UK
    • Recent activity
    • Financial information
      • Figure 23: Financial analysis of Elior UK Plc, 2015-19, (£ million and %)
    • SSP Group
    • Recent activity
    • Financial information
      • Figure 24: Financial analysis of SSP Group Plc, 2015-19, (£ million and %)
  12. The Consumer – Key Takeaways

    • 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
  13. The Impact of COVID-19 on Consumers

    • Consumers are less worried about COVID-19
      • 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
      • 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
      • Figure 27: Consumer attitudes towards selected activities, November 2020, (% of respondents)
  14. Visitation of Catering Facilities

    • Frequent canteen use most likely in college, university and workplaces
      • 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)
  15. The Impact of COVID-19 on Canteen Usage

    • Virus exposure concerns are the leading driver of decreased canteen usage
      • 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
      • 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
      • Figure 32: Most influential COVID-related factors in encouraging canteen visitation, September 2020, (% of respondents)
  16. Canteen Purchasing Preferences

    • Price matters as purse strings are tightened but consumers will demand quality before parting with their cash
      • Figure 33: Motivating factors behind canteen purchases, September 2020, (% of respondents)
    • Desire to live up to ethical ideals is driving engagement with healthier alternatives
      • Figure 34: Canteen purchasing interests, September 2020, (% of respondents)
  17. Interest in Food-related Workplace Benefits

    • Consumers are open to food-related benefits but want something more substantial than snacks
      • Figure 35: Interest in food-related workplace benefits, September 2020, (% of respondents)
  18. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
  19. Further Sources and Contacts

    • 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)

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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