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Contract Catering & Foodservice Management Market Report 2010
Key Note Publications Ltd, May 2010, Pages: 102
The UK market for contract catering and foodservice management is estimated to have been worth £3.99bn in 2009, which equates to a 3.5% reduction on 2008. Between 2005 and 2008, the value of the market increased annually. In 2009, the recession was major factor in the downturn.
The market is divided into five main sectors: business and industry (B&I); education; healthcare; catering for the public; and other contract catering and foodservice management. B&I is the largest sector of the market in terms of meals served, outlets operated and turnover. The fastest-growing sector over the review period (2005 to 2009) in terms of value is considered to be other contract catering and foodservice management, which includes subsectors such as central and local government, the Ministry of Defence (MoD), the construction industry, oil rigs and prisons.
2009 was a difficult year for the contract catering and food management services sector. Demand for contract catering services in the important business and industry sector was particularly affected by the recession as companies attempted to cut the costs of their catering services. Demand in other sectors of the market, including the healthcare, education and defense, offshore and remote site sectors, are less susceptible to economic downturns and performed better.
Support services are becoming an ever more important part of the business of the leading contact caterers. The delivery of multi services, that is bundled food and support services, accounts for the majority of revenues of some of the largest companies, and this trend is thought likely to increase further. The support services offer originated in the defence, offshore and remote site sector and has now extended to the healthcare sector and, increasingly, the B&I sector, where the outsourcing of support services is growing quickly.
The authors forecast that the contract catering and foodservice management market will return to growth in 2010, although the increase in the value of the sector will only be modest and remain dependent, to a large extent, on the recovery in the wider economy. The continuing difficult economic climate in 2010 will mean that caterers will have to continue to keep close control of their costs so as to protect their own profitability and to meet the demands of clients.
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