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Contract Catering Companies Need to Step Up Quality to Tackle Negligible Growth.


DUBLIN Dublin, city, Republic of Ireland
Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River.
, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c57503) has announced the addition of Contract Catering in the United Kingdom 2006 to their offering.

After many years of unbroken and strong growth, the UK contract catering industry has endured a difficult time during the past two or three years, with negligible This article or section is written like a personal reflection or and may require .
Please [ improve this article] by rewriting this article or section in an .
 growth and a wave of adverse publicity for certain sectors of the market. This is despite the fact that in some areas of the business, huge advances have been made in terms of the quality of the catering offer and also the way in which this is marketed to its target consumer, whether this is an employee or a pupil.

This report considers the hypothesis that by steadily improving quality to as good as, or better than consumers can find on the high street, contract caterers will improve take-up of the services they offer. To achieve this, they need to bring their menus more in line with the expectations of today's consumer in terms of healthy ingredients and environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1]  packaging and product sourcing.

Issues in the Market

Definitions

Abbreviations

Market in Brief

Tough times for contract caterers...

...resulting in stagnant stagnant /stag·nant/ (stag´nant)
1. motionless; not flowing or moving.

2. inactive; not developing or progressing.
 revenue

Figure 1: Trends in the UK contract catering market size, 2001-06

Although the business and industry sector is thriving thrive  
intr.v. thrived or throve , thrived or thriv·en , thriv·ing, thrives
1. To make steady progress; prosper.

2.
...

...education has been badly affected...

...resulting in some contracts no longer being viable

Expansion for both Compass and Sodexho

Looking towards single contractors

Consumers pro making kids eat more healthily...

...and educating both children and parents

Internal Market Environment

Staff shortages - a constant headache headache

Pain in the upper portion of the head. Episodic tension headaches are the most common, usually causing mild to moderate pain on both sides. They result from sustained contraction of face and neck muscles, often due to fatigue, stress, or frustration.
 

The National Minimum Wage - putting pressure on costs

Outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management.  - a growing market

Figure 2: Support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services  provided by contract caterers, 2005

Competition from the high street

Prevalence of in-house In-house

In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm.
 branding increases

Figure 3: Trends in branding of contract catering outlets, 2001-05

The growth of home working

The impact of snacking and work pressures

Healthy eating

School meals and restrictions on vending machines vending machine, coin-operated, automatic device for selling goods. Many vending machines are capable of making change, and some of the more sophisticated ones accept paper money or credit cards.  

Environmental and ethical factors

Rising energy costs

Broader Market Environment

A little more cautious consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level.  

Figure 4: Trends in personal disposable income disposable income

Portion of an individual's income over which the recipient has complete discretion. To assess disposable income, it is necessary to determine total income, including not only wages and salaries, interest and dividend payments, and business profits, but also
 and consumer expenditure, 2001-11

Sit-down versus grab 'n' go

Figure 5: Trends in the UK population by age, 2001-11

More sophisticated tastes

Figure 6: Trends in the adult population* by socio-economic group, 2001-11

Competitive Context

Figure 7: Average weekly household expenditure on meals, snacks and non-alcoholic drinks, by category, 1999/00 to 2004/05

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Market Size and Forecast

Market performance

Figure 8: UK contract catering market size trends, 2001-11

Figure 9: UK contract catering market by outlets and number of meals served, 2001-06

Present market performance

Future market performance

Factors incorporated in the forecast

Segment Performance

By meals served

Figure 10: UK contract catering market by segment, by number of meals served, 2001-05

By number of outlets

Figure 11: UK contract catering market by segment, by number of outlets, 2001-05

By contract type

Figure 12: UK contract catering outlet numbers by contract type, 2001-05

Business and industry

Figure 13: Trends in the prison population, 2001-06

Education

Figure 14: Trends in school numbers, pupil count and pupils per school, 2001-06

Healthcare

Figure 15: Trends in the number of available hospital beds, 2000/01-2005/06

Public catering

Defence

Figure 16: Trends in the strength of regular UK armed forces personnel, 2002-06

Companies and Products

Industry structure

Figure 17: Number of UK VAT-based companies engaged in the operation of canteens and catering services, by size of turnover, 2001-06

Figure 18: UK contract catering industry income and expenditure trends, 2001-05

Company profiles

Aramark

Figure 19: Financial performance of Aramark UK Ltd, 2004 and 2005

BaxterStorey Ltd

Figure 20: Financial performance of BaxterStorey Ltd, 2004 and 2005

Charlton House Catering Services Ltd

Figure 21: Financial performance of Charlton House Catering Services Ltd, 2004 and 2005

Compass Group The British company Compass Group LSE: CPG is one of the largest food service businesses in the world. It provides catering services to many types of institutions, for example schools, hospitals, companies and nursing homes.  plc

Figure 22: Financial performance of Compass Group plc, 2004 and 2005

Elior SCA (Single Connector Attachment) An 80-pin plug and socket used to connect peripherals. With a SCSI drive, it rolls three cables (power, data channel and ID configuration) into one connector for fast installation and removal.  

Figure 23: Financial performance of Avenance plc, 2004 and 2005

Figure 24: Financial performance of Digby Trout trout: see salmon.
trout

Any of several prized game and food fishes of the family Salmonidae, native to the Northern Hemisphere but widely introduced elsewhere. Though most species inhabit cool fresh waters, a few (called sea trout; e.g.
 Restaurants Ltd, 2004 and 2005

Figure 25: Financial performance of Eliance Restaurants Ltd, 2004 and 2005

Sodexho Alliance

Figure 26: Financial performance of Sodexho Alliance, 2005 and 2006

Figure 27: Sodexho Alliance UK and Ireland Food & Facilities Management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises.  Services revenues by segment, 2005 and 2006

Other players

Improving the Food Offer

Improvements in contract catering standards...

...despite the negative furore surrounding sur·round  
tr.v. sur·round·ed, sur·round·ing, sur·rounds
1. To extend on all sides of simultaneously; encircle.

2. To enclose or confine on all sides so as to bar escape or outside communication.

n.
 state school dinners

Contract caterers competing as much with high street as with sector rivals

Clients and consumers demanding far higher quality offer

How the trend for healthy eating is affecting everyday contract catering provision

Developing the Products

How the trend towards snacking and grab 'n' go is affecting contract catering provision

How environmental factors are influencing the services caterers provide

How advances in technology are affecting the industry

How important branding is in contract catering

Management Concerns

Pressure on margins more intense than ever before

Legislation and red tape

Shortage of quality personnel

Client/contract caterer relationship improves

How important support services are to the contract catering industry

Whether small and medium-sized contract catering businesses are driving innovation and growth

How the market will change over the next few years

School Meals and Lunchtime Eating Habits

Figure 28: Children's lunchtime eating habits, August 2006

School meals and lunchtime eating habits - detailed demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data.  

Figure 29: Children's lunchtime eating habits, by age, socio-economic group, marital Pertaining to the relationship of Husband and Wife; having to do with marriage.

Marital agreements are contracts that are entered into by individuals who are about to be married, are already married, or are in the process of ending a marriage.
 and working status, August 2006

Figure 30: Children's lunchtime eating habits, by region, ACORN category, age of own children, gross household income, household size and car usage, August 2006

Figure 31: Children's lunchtime eating habits, by newspaper readership read·er·ship  
n.
1. The readers of a publication considered as a group.

2. Chiefly British The office of a reader at a university.
, Internet Internet

Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the
 usage, commercial TV viewing and supermarket usage, August 2006

What Adults Think About School Meals

Figure 32: Attitudes towards school meals, September/October 2006

What adults think about school meals: detailed demographics

Most popular attitudes towards school meals

Figure 33: Most popular attitudes towards school meals, by gender, socio-economic group and marital status marital status,
n the legal standing of a person in regard to his or her marriage state.
, September/October 2006

Figure 34: Most popular attitudes towards school meals, by detailed lifestage, September/October 2006

Figure 35: Most popular attitudes towards school meals, by region, ACORN category, working status, age of children and tenure, September/October 2006

Figure 36: Most popular attitudes towards school meals, by media usage, supermarket used and commercial TV viewing, September/October 2006

Next most popular attitudes towards school meals

Figure 37: Next most popular attitudes towards school meals, by gender, age, socio-economic group and marital status, September/October 2006

Figure 38: Next most popular attitudes towards school meals, by detailed lifestage, September/October 2006

Figure 39: Next most popular attitudes towards school meals, by region, ACORN category, working status, age of children and tenure, September/October 2006

Figure 40: Next most popular attitudes towards school meals, by media usage, supermarket used and commercial TV viewing, September/October 2006

Companies Mentioned:

-Aramark

-BaxterStorey Ltd

-Charlton House Catering Services Ltd

-Compass Group plc

-Elior SCA

-Sodexho Alliance

For more information visit http://www.researchandmarkets.com/reports/c57503
COPYRIGHT 2007 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:May 22, 2007
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