Table of Contents
Executive Summary
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- The market
- Growth hindered by challenging market conditions
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- Figure 1: UK contract catering market size, 2016-24
- Companies and brands
- Investment and growth characterised by acquisitions and coloured by ethics
- The consumer
- Canteen popularity grew as under-45s usage increased
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- Figure 2: Visitation of catering facilities, October 2019
- Drink and snacks popularity suggests a safe route to implementing restaurant vending
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- Figure 3: Canteen purchasing habits, October 2019
- Quality and nutrition lead decision-making drivers
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- Figure 4: Motivating factors behind consumer choice, October 2019
- Overlap between healthy and ethical eaters bridges generational preferences
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- Figure 5: Attitudes towards workplace catering, October 2019
- What we think
Issues and Insights
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- Brexit may add to the costs of future minimum wage increases
- The facts
- The implications
- Vegetarian and vegan options have moved from niche to normal
- The facts
- The implications
The Market – What You Need to Know
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- Growth hindered by challenging market conditions
- Generational changes are shaping the market’s future
- Public spending re-enters political debate as parties plan to splurge
Market Size
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- Growth hindered by challenging market conditions
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- Figure 6: UK contract catering market value, 2016-19
Market Forecast
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- Political party pledges will significantly boost demand for contract caterers
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- Figure 7: UK contract catering market forecast, 2019-24
The Impact of the Economy
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- Minimum wage rises and low unemployment risk a squeeze on staff
- Consumer confidence stays buoyant despite economic turbulence
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- Figure 8: Mintel Financial Confidence Tracker, three-month average, October 2016-19
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- Figure 9: UK eating out market size, 2014-19
- Brexit uncertainty has led to subdued business investment
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- Figure 10: UK business investment (excluding exceptional transfers), £ billion, Q2 2015 – Q3 2019
- The potential impact of Brexit on the catering industry
Market Trends
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- Growth of serviced offices and flexible working open synergistic opportunities for caterers
- Retail venue catering offers relief to struggling high street retailers
- Successful M&A activity highlights the benefits of the horizontal growth model for providers of contract services
- Eating to minimise health and environmental impacts has opened the door for new products and services
Market Drivers
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- Employment rate remains at all-time high
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- Figure 11: UK employment rate, % of adults aged 16+ in paid work, 2010-19
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- Figure 12: Number of business outlets by selected employment size bands, 2015-19
- Number of schools down over the decade but university participation continues improving
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- Figure 13: Number of schools (left axis) and pupils (right axis) in England, 2010-18
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- Figure 14: Number of higher education qualifications obtained, academic year 2008/09 – 2017/18
- Number of hospital beds continues to fall but recovery is anticipated
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- Figure 15: Number of overnight beds available and percentage occupied, England, Q1 2014/15 – Q2 2019/20
- Plans to reduce overcrowding set the stage for expansion in custodial sector
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- Figure 16: Prison population projections, England and Wales, 2019-23
- Real-term increases in defence funding will reduce risk of contract cuts
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- Figure 17: UK regular forces personnel numbers, 2014-19
- Promises of significant infrastructure investment could supercharge growth from the construction sector
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- Figure 18: UK construction market value, 2014-18
Companies and Brands – What You Need to Know
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- Nutrition and sustainability are mandatory features of a successful future
- Mergers and acquisitions are becoming the primary driver of growth for large players
- Caterers lead the charge in adapting to a changing retail and leisure landscape
Industry Structure
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- Changes in industry structure
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- Figure 19: Changes in the structure of other food service activities, numbers of businesses and outlets, 2015-19
- Structure by employment
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- Figure 20: Changes in the employment structure of other food service activities, number of outlets by employment level, 2018 and 2019
- Structure by turnover
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- Figure 21: Changes in the financial structure of other food service activities, number of businesses by turnover band, 2018 and 2019
Company Profiles
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- Aramark Ltd (UK)
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- Figure 22: Financial analysis of Aramark Ltd, 2014-18
- BaxterStorey Ltd
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- Figure 23: Financial analysis of BaxterStorey Ltd, 2014-18
- CH&CO Catering Group Ltd
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- Figure 24: Financial analysis of CH&CO Catering Group Ltd, 2015-18
- Compass Contract Services (UK) Ltd
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- Figure 25: Financial analysis of Compass Contract Services (UK) Ltd, 2014-18
- Elior UK Plc
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- Figure 26: Financial analysis of Elior UK Plc, 2014-18
- SSP Group Plc
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- Figure 27: Financial analysis of SSP Group Plc, 2014-18
The Consumer – What You Need to Know
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- Leisure economy growth opens more spaces for contract caterers
- Gen Z and Young Millennials expect sustainable options
- Drinks and snacks provide an alternative to comprehensive catering
- Both young and old prioritise healthy eating
- Caterers should position services as having social benefits
Visitation of Catering Facilities
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- Canteen popularity grows on all fronts
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- Figure 28: Visitation of catering facilities, October 2019
- Gen Z and Young Millennials expect sustainable options
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- Figure 29: Visitation of canteens in workplace and places of study, October 2019
Canteen Purchasing Preferences
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- Drinks and snacks provide an alternative to comprehensive catering
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- Figure 30: Canteen purchasing habits, October 2019
- Meeting desire for healthy food is a flexible way to drive canteen usage
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- Figure 31: Canteen purchasing interests, October 2019
Decision-Making Factors
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- Consumers value quality and nutrition more than a good deal
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- Figure 32: Motivating factors behind consumer choice, October 2019
- Hygiene emerges as a new proxy for foodservice quality
- Meat alternatives
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- Figure 33: Deterring factors, October 2019
Attitudes towards Workplace Catering
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- Caterers should position services as having both social and practical benefits
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- Figure 34: Attitudes towards workplace catering, October 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- Trade magazines
- Trade events
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