Contract Catering & Foodservice Management
The UK market for contract catering and foodservice management was valued at £3.9bn in 2004, an increase of 3% on 2003 and 19.4% on 2000. The market continues to expand, despite a decline in the number of outlets served by contract caterers.
The market is divided into five main sectors: business and industry, education, catering for the public, healthcare, and other contract catering and foodservice management, which serves sectors such as central and local government, the construction industry, oil rigs and prisons. Business and industry is the largest sector, but catering for the public demonstrated the fastest growth over the review period (2000 to 2004). The development of new catering ideas and concepts has boosted sales in the public catering sector. Demand from higher-education colleges and universities has helped increase revenues in the education sector.
The contract catering industry faces two major challenges: a staff and skills shortage and a continuing stream of new government regulations that can be costly to implement for many caterers. Some of the staff shortages are currently being met by an influx of low-cost labour from the new East European EU member states, although the continuity of this cannot be guaranteed. The latest piece of government legislation to affect the industry — the Food Safety Act, which is due to be introduced in January 2006 — is likely to add further to the cost burden.
The quality of food and especially the quality of school meals is under review at the present time. The Government has recently announced that schools will be provided with rules indicating the minimum amount of carbohydrate that a school meal can provide and the maximum amount of fat it can contain. Schools will also be advised to buy fresh food from local outlets, where possible. The Government has been impressed by reports from schools that have adopted healthier menus, which show that children have become less disruptive in the classroom and that absenteeism levels have fallen.
Key Note estimates that the market for contract catering and foodservice management will continue to develop in the second half of the decade. Factors that are likely to influence the sector over the forecast period (2005 to 2009) include: the ongoing desire of companies and organisations to outsource their non-core businesses; the opportunities available for contractors to provide add-on services in addition to catering; the Government's move to increase spending on school meals; and the trend towards healthier diets.
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