Table of Contents
Issues in the Market
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- Key issues
- Definition
- Terminology
Future Opportunities
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- Trend: Over-optioned consumer
- Trend: Tug of war
Market in Brief
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- Challenging times for workplace caterers
- Reduced headcount has an impact on meals served
- Non-catering services continue to expand
- Contract caterers innovate to meet consumers’ high street expectations
Beyond Cost: Marketing Initiatives Employed by Contract Caterers
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- Key points
- Caterers are operating in a cost-control culture
- What ‘else’ can you bring to the table?
- The service mix
- First and foremost: Cost savings for all stakeholders
- Growth of FSM – widening the service portfolio
- Be innovative
- Show commitment to sustainability
- High street brands are a crowd-puller
- Not just words, must show progress towards healthy eating
- Key points
- Challenging trading conditions
- Coalition government focused on deficit reduction
- Unemployment is the single most influential factor
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- Figure 1: UK monthly unemployment rate, aged 16 and over (seasonally adjusted), by gender, 2005-10
- Spending confidence continues to affect eating out
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- Figure 2: GDP, PDI, consumer expenditure and savings, at current prices, 2005-15
- Young target population enjoy eating out
Strengths and Weaknesses
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- Strengths
- Weaknesses
Competitive Context
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- Key points
- B&I accounts for one in three meals served
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- Figure 3: Competitive context of the contract catering market, 2008-09
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- Figure 4: Growth in meals and outlets, by share, 2008-09
- Shrinkage due to contract losses and hospitality cutbacks
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- Figure 5: Total number of outlets in business and industry, 1990-2009
- How attractive is the business and industry sector to contract caterers?
- Combating the high street ‘meal deal’
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- Figure 6: Performance of competing markets, market sizes, 2005-09
- Knowing your enemy
Who’s Innovating?
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- Key points
- Caterers get involved to freshen up the in-house catering offer
- £2,000 kitchen makeover; CH&Co invests in ‘farmers’ market’ style aesthetics to tempt diners
- Elior UK makes fresh produce more visible
- Compass helps QVC create a more welcoming environment for staff
- Celebrity presence breathes new life into corporate dining
- Key points
- Fewer staff, fewer outlets = higher turnover?
- Trends in turnover
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- Figure 7: The business and industry contract catering market, 2005-15
- Reason for optimism
- Competitors battle it out whether small or large-scale operations
- Caterers toughen up to nil-subsidy and unprofitable tenders
- Future outlook
- Factors used in the forecast
Segment Performance
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- Key points
- Outlet numbers shrink to pre-2002 levels
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- Figure 8: Total number of business and industry outlets served by contract caterers, 1991-2009
- B&I sees drastic drop in number of meals served in 2009
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- Figure 9: Number of meals in the business and industry market, 1991-2009
- Non-catering offers a buffer
Companies and Services
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- Aramark
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- Figure 10: Financial performance of Aramark Limited, 2008 and 2009
- BaxterStorey
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- Figure 11: Financial performance of BaxterStorey Limited, 2008 and 2009
- CH&Co
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- Figure 12: Financial performance of Charlton House Limited, 2008 and 2009
- Compass Group (Eurest Services)
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- Figure 13: Financial performance of Compass Group PLC, 2008 and 2009
- Figure 14: Six months’ financial performance of Compass Group PLC, 2009 and 2010
- Elior
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- Figure 15: Financial performance of Elior UK Limited, 2008 and 2009
- Initial Catering
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- Figure 16: Financial performance of Initial Catering Services Limited, 2008 and 2009
- Sodexo
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- Figure 17: Financial performance of Sodexo Limited, 2008 and 2009
- Figure 18: Financial performance for first six months of Sodexo Limited, 2009 and 2010
Employee Lunch Preferences – Purchase
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- Key points
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- Figure 19: Outlets used for buying lunch and frequency of visits, July 2010
- Canteen food quite far down the lunch chain
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- Figure 20: Demographic pattern of those who buy lunch in a work canteen, any frequency, according to above-/below-average responses, July 2010
- Consumers are spoilt for choice
- BYO butties
- Failing to strike a chord with female employees
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- Figure 21: Outlets used for buying lunch by any frequency, according to above-/below-average responses, by gender, July 2010
- Life’s too short to eat in the same place every day
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- Figure 22: Repertoire of outlets used for buying lunch, July 2010
Employee Lunch Preferences – Consumption
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- Key points
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- Figure 23: Lunch purchasing habits at work, July 2010
- Sedentary lifestyles and lunch hours
Employee Attitudes towards Lunch Choices
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- Key points
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- Figure 24: Statements on eating lunch during the week on workdays, July 2010
- Healthy eating gets the thumbs up from canteen users
- Disagreement over calorie counting
- Breaking lunch habits
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- Figure 25: Statements on eating lunch during the week on workdays, by most popular outlets used for buying lunch, July 2010
- Majority are feeling the pinch
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- Figure 26: Agreement with the statement ‘I have cut back on spending on lunch in the last year’, by age group, July 2010
Appendix – Broader Market Environment
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- Figure 27: Trends in the age structure of the UK population, by gender, 2005-15
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Appendix – Competitive Context
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- Figure 28: No. of outlets, by share, 2009
- Figure 29: No. of meals served per outlet, 2009
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- Figure 30: Competitive context of the contract catering market, 2009
- Figure 31: Competitive context of the contract catering market, 2009
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Appendix – Employee Lunch Preferences – Purchase
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- Figure 32: Most popular outlets used for buying lunch (any usage), by demographics, July 2010
- Figure 33: Next most popular outlets used for buying lunch (any usage), by demographics, July 2010
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- Figure 34: Outlets used for buying lunch, by repertoire of outlets used for buying lunch, July 2010
- Figure 35: Repertoire of outlets used for buying lunch (any usage), by demographics, July 2010
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Appendix – Employee Attitudes towards Lunch Choices
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- Figure 36: Lunch purchasing habits at work, by most popular outlets used for buying lunch (any usage), July 2010
- Figure 37: Lunch purchasing habits at work, by next most popular outlets used for buying lunch (any usage), July 2010
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- Figure 38: Most popular lunch purchasing habits at work, by demographics, July 2010
- Figure 39: Next most popular lunch purchasing habits at work, by demographics, July 2010
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Appendix – Employee Attitudes towards Lunch Choices
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- Figure 40: Statements on eating lunch during the week on workdays, by demographics, July 2010
- Figure 41: Statements on eating lunch during the week on workdays, by demographics, July 2010
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- Figure 42: Statements on eating lunch during the week on workdays, by demographics, July 2010
- Figure 43: Statements on eating lunch during the week on workdays, by demographics, July 2010
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- Figure 44: Statements on eating lunch during the week on workdays, by demographics, July 2010
- Figure 45: Statements on eating lunch during the week on workdays, by demographics, July 2010
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- Figure 46: Statements on eating lunch during the week on workdays, by demographics, July 2010
- Figure 47: Statements on eating lunch during the week on workdays, by demographics, July 2010
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- Figure 48: Statements on eating lunch during the week on workdays, by demographics, July 2010
- Figure 49: Statements on eating lunch during the week on workdays, by most popular outlets used for buying lunch (any usage), July 2010
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- Figure 50: Statements on eating lunch during the week on workdays, by next most popular outlets used for buying lunch (any usage), July 2010
- Figure 51: Statements on eating lunch during the week on workdays, by most popular lunch purchasing habits at work, July 2010
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- Figure 52: Statements on eating lunch during the week on workdays, by next most popular lunch purchasing habits at work, July 2010
- Figure 53: Statements on eating lunch during the week on workdays, by repertoire of outlets used for buying lunch and frequency of visits, July 2010
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