Contract catering: Understanding it and the challenges it faces
Contract catering is a term that those working in the sector will be familiar with, but for many outside it – even those in hospitality – there is a lack of clarity about what ‘contract catering’ actually means and the kind of services it provides.
Contract catering is a multi-faceted sector, providing catering services to a whole host of organisations and businesses – from schools and hospitals to workplaces, museums and sports arenas - so the challenges it faces are varied and wide.
In order to identify its challenges, it is, therefore, helpful to the first outline precisely what contract catering is.
What is contract catering?
A contract caterer is a company that provides catering services to a business or organisation (its client) for a specific length of time.
In some cases, services are paid for by the client, such as an education authority or a company, for the benefit of their students or employees.
Other types of contract mean the caterer is hired to provide specific services to the public at a certain business. They might be hired to run the café and restaurant at a museum, or the snack kiosk at a football ground.
Examples of places where contract caterers work include schools; college and university canteens or snack bars; hospitals; workplace canteens; event venues; sports grounds; railway stations and airports.
For the organisation or business using a contract caterer, the advantage is that they can hand this area over to specialists and focus on their own area of expertise, while caterers who sign contracts with clients have guaranteed business.
When contracts are negotiated properly, contract catering is a positive scenario for both contract caterers and their clients. Nevertheless, as with any business serving food, contract catering does present challenges.
What challenges do contract caterers have?
Rising costs, allergen management, the impact of Brexit and sustainability are some of the biggest and ongoing challenges facing contract catering.
Rising costs were highlighted as the toughest challenge facing all contract caterers at a roundtable discussion held by Access Hospitality and Arena in December 2019.
The discussion, which involved representatives from contract catering companies such as Sodexo, Bartlett Mitchell, Blue Arrow Contract Catering Ltd, Amadeus, CH&CO, Genuine Dining Company, Green & Fortune and ISS UK, found that food and stock control, closely followed by labour are the single biggest challenges.
The key to minimising costs is to exercise efficient portion control and minimise wastage. Contract caterers in the discussion also said benchmarking and relationship development between chefs and purchasing was key.
In terms of labour, the industry needs to work smarter. Small steps, such as staggering the start time of shifts can collectively make a difference to the bottom line. Having the right technology in place can identify labour patterns and requirements.
The management of allergens and the forthcoming introduction of Natasha’s Law is also of concern to contract caterers.
Labelling pre-packaged foods was regarded the biggest challenge in this area by those in the discussion, given that food is often prepared fresh, on-site in a kitchen, not in factory conditions, where cross-contamination of allergens can be governed. There are fears that if food has to be prepared centrally, it will stifle the creativity and flexibility that are the characteristics of the marketplace.
There was hope, however, and it was agreed that technology would be the key to ensuring systems are in place to automate down the chain.
The sector is concerned about the impact Brexit is having on the price of food and supply issues. There are also fears that workers from the European Union will leave the UK and will not be able to be replaced by others from this region due to new legislation.
Sustainability is an issue concerning an increasing number of us, and contract caterers are aware of the need to act sustainably. However, clients can prevent contract caterers from environmental best practice because there is still a lack of understanding about sustainable business practices. The challenge, therefore, is in educating clients to make sustainable decisions in areas such as waste management and sourcing.
