Summary of our market study

As of 2020, the global foodservice market, which includes segments such as educational institutions, corporations, governments, and healthcare, has experienced significant growth despite the challenges posed by the pandemic. The global foodservice market was valued at $245.1 billion in 2022 and is expected to grow at a CAGR of 4.97 percent to $327.9 billion by 2028, with the school foodservice market expected to expand from $19.46 billion in 2022 to $36.19 billion by 2032. The UK foodservice market, while experiencing a 25 percent decrease in value from 2019 due to the pandemic, is expected to grow at a CAGR of 8.4 percent to reach 6.6 billion pounds by 2026. The demand for mass catering is influenced by trends such as convenience, variety, socialization, sustainability, and time-saving. Household spending on catering in the UK increased by 67.2 percent between 2020 and 2022. Major companies, such as Compass Group, Sodexo, and Elior, have billion-dollar turnovers and continue to influence the market. The market is also influenced by regulations aimed at ensuring safety and quality and is adapting to trends such as ethnic cuisine, sustainability, customization, and expanding supply. The ongoing Russian-Ukrainian conflict since February 2022 has further impacted the market, causing a 7.9 percent increase in the consumer price index for canteens in the U.K..Title: Evolving Demand Dynamics in the U.K. Canteen Market In recent years, the U.K. canteen market has shown distinct trends reflecting a combination of socio-economic factors, consumer preferences, and industry innovations. With a stable number of companies providing services, employment in the sector has remained relatively stable, despite fluctuations due to the pandemic. Market demand is driven primarily by the convenience, variety, and affordability of services offered, with an emphasis on social interaction and time-saving, especially in educational institutions and corporate settings. The geographic distribution of demand for catering services largely mirrors the distribution of businesses across the country, with England taking the lion's share with over 90 percent, followed by Scotland, Wales, and Northern Ireland. The customer base remains strong, with substantial growth in the student population-between 9 and 10 million in primary and secondary schools-linked to an increase in the number of those eligible for free school meals, with a socioeconomic impact on household incomes. The university student population also showed significant growth, with numbers estimated at 2.5 to 3 million. The corporate sector shows stability, with enterprises employing more than 50 people maintaining a steady number of about 50,000. The trend toward sustainable and ethnic food offerings in canteens underscores a response to growing consumer expectations for environmentally friendly and diverse cuisine. End-user prices in mass catering maintain a competitive advantage, as full meals are typically between £2.00 and £3.50, indicating an affordable price point for the majority. However, parents' perceptions of price fairness in school cafeterias demonstrate sensitivity to economic pressures, with a majority considering the price to be appropriate, albeit down slightly from the previous year. Reflecting the current global situation, the Russian-Ukrainian conflict has had a direct effect on the British market, with a significant increase in consumer and producer price indexes. This ensures that mass catering services will have to innovate and adapt further to cope with these economic constraints while maintaining service quality and value for money. In summary, the U.K. foodservice market is in a stable phase, with nuanced growth and a conscious move toward sustainable and diversified offerings that reflect a blend of traditional needs and contemporary expectations The U.K. foodservice market is a dynamic environment, with several significant players known for their innovation and dedication to providing high-quality food services. Below, we delve into the profiles of the most prominent companies that set the standard for catering excellence and tailor their offerings to the specific needs of their clientele. **Sodexo**: A global powerhouse in the foodservice industry, Sodexo boasts an impressive presence in 80 countries and serves more than 100 million customers every day. Founded in 1966 in Marseille, the company has evolved to meet the foodservice needs of diverse sectors, including corporate, government, and education, with a focus on sustainability, local sourcing, and waste reduction. **Chartwells**: Dedicated to academic minds, Chartwells specializes in feeding students in schools, colleges, universities and academies. Emphasizing the importance of sustainable and locally sourced products, it not only provides meals but also educates on responsible and environmentally friendly food choices. **Taylor Shaw**: Having received accolades such as the Education Caterer of the Year award in 2022, Taylor Shaw is a leader in the school catering industry in the United Kingdom. The company prides itself on its innovative approach to school meals, aiming to balance taste, nutritional value and cost. **PabulumCatering**: Operating in Hampshire, Pabulum has a strong focus on nourishing the future through health-oriented school meals. Their commitment to freshness and local suppliers ensures children in the educational ecosystem receive a complete diet. **Eurest**: A Compass Group brand, Eurest covers a broad spectrum of catering services for corporations, institutions and the mass market. Creating tailored solutions for a diverse clientele, Eurest places customer satisfaction and quality among its strategic priorities. **Elior**: Since its inception in 1991, Elior has embarked on a journey that has led it to become a giant in the industry, distributing millions of meals worldwide. The company carefully develops its offerings for educational, healthcare and corporate settings, with a strong focus on health and sustainability. **Compass Group**: With more than 75 years of experience, Compass Group is committed to serving palatable and nutritious meals in schools, offices and nursing homes. As market pioneers, they distinguish themselves by promoting pre-order systems that emphasize customers' individual food preferences. **Caterfood**: Engaged primarily in schools and elder care facilities, Caterfood provides delicious meals that are attentive to the specific nutritional needs of these communities

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1 Market Summary

1.1 Definition of the Contract Catering market

The mass catering market is the provision of an on-site catering service for a local authority or corporate client

The main markets involved are the following educational institutions, corporations, administrations, health care institutions, air or rail catering services, as well as some other public or private entities (military, religious communities, prisons.....). The end customers are thus generally employees, public servants, patients, students....

Mass catering is more generally part of the out-of-home catering market alongside commercial catering (restaurants and fast-food restaurants), hotel catering, vending machines (vending machines), and other alternative food channels (bakeries, gas stations, department stores, etc.)

There are mainly 2 methods of managing mass catering :

  • Restoration granted by using a service provider.
  • The direct management of catering by the company requesting the service.

1.2 The global and European market

In ****, the global foodservice market reached a value of $***.* billion. With a compound annual growth rate of *.** percent for the next six years, the value could rise to $***.* billion in ****.

Contract catering market World, ****-****, billion dollars Imarcgroup

In order to delve deeper into the global contract catering market, the market ...

1.3 The market in the United Kingdom

By ****, the UK foodservice market is worth *.* billion pounds. However, the advent of the pandemic has brought important consequences for this market. The advent of smart working and the ability to attend school classes from home are the main explanatory factors. By ****, the market is expected to grow at a compound ...

1.4 The impact of the Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict in February **** resulted in, among other things, a general increase in the consumer price index. As for canteens, between March **** and June ****, the consumer price index increased by *.* points to a value of ***.*. This means that in ****, prices increased by *.* percent from the previous year ...

2 Demand analysis

2.1 Demand in the United Kingdom

The number of students in elementary school, secondary schools and at university, the number of nursing homes in the area, and the number of companies with more than ** employees are taken into account to analyze the demand for mass catering in the United Kingdom, assuming a greater tendency on the part ...

2.2 Demand drivers

The main drivers of demand for collective catering in the UK are:

Convenience: choosing collective catering results in financial savings for the consumer, who, unlike in commercial catering, does not have to bear the full cost of the service but only a portion. Choice: cafeterias usually offer a good variety of ...

2.3 The geographical distribution of demand

To visualize the geographic distribution of demand, a map was created with the number of enterprises engaged in other food services, within which mass catering falls, for each country in the United Kingdom.

England is home to the vast majority of businesses, **.* percent of the total. This is followed by Scotland ...

2.4 New trends in demand

Demand trends in foodservice are constantly evolving, as is the commercial foodservice sector. In particular, some of the main trends are:

The growing preference for sustainable products: consumers are increasingly inclined to consume products with an environmentally and ethically sustainable supply chain. Seasonality: an increased interest in the seasonality of products ...

3 Market structure

3.1 The market structure

Analysis of the structure of the foodservice market is carried out based on data for the other food services sector (***) within which foodservice is included. Specifically, the number of active enterprises in the UK, the number of people employed in the sector, and the legal form of enterprises are highlighted.

Between ...

3.2 The value chain

3.3 Distribution

Mass catering service can be divided into two categories based on the process of meal distribution. The two types of systems are:

Conventional system: meals are prepared and cooked in the same facility where they will later be distributed. Each kitchen thus works independently of the others as the entire preparation ...

3.4 The main actors

Some of the major companies providing mass catering services in the UK are:

Sodexo: founded in **** in Marseille, Sodexo is the world's number one food service and business services provider. The company is present in ** countries around the world and serves more than *** million customers every day. In the catering business, ...

4 Supply analysis

4.1 Mass catering

Mass catering consists of the preparation and delivery of a large number of complete meals intended for a community. There can be many reasons for people to use these services, such as the need to have complete, healthy meals in a working environment, lack of time to prepare meals at home, ...

4.2 The prices

The following are prices for the end user in the UK foodservice industry:

In **** in the UK, more than * in * parents believe the price for school lunch service is fair (***). Compared to ****, the figure is ** percentage points lower. In contrast, **% think the price is too high while *% think the price is ...

4.3 New trends in supply

The catering industry's offerings are constantly evolving not only in order to attract new customers but to ensure better service and meal quality. The following are the main trends in the offerings:

Entico street food: some companies active in the sector have launched several ethnic cuisine projects in response to the ...

5 Rules and regulations

5.1 Regulations

Collective catering, as well as the more general catering sector, is regulated by various national laws in order to ensure the safety, quality and origin of the service offered. With regard to school canteens, the legislation is more substantial in order to ensure proper and balanced nutrition for young pupils. Some ...

6 Positioning of actors

6.1 Segmentation

Listed on the stock exchange

Unlisted

  • Accent Catering Limited
  • Aspens Limited
  • Caterfood Limited
  • Taylor Shaw Limited
  • Caterlink Limited
  • Compass Group
  • Sodexo France

List of charts presented in this market study

  • Restaurant market
  • School cafeteria contract
  • European foodservice market
  • Expenditure on catering services
  • Mass catering market
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Latest news

Foodservices Sodexo continues to transform its business model - 26/10/2023
  • Sodexo customer retention rate: 95.2
  • Revenue growth for fiscal year 2023: +11.6
  • Sodexo revenues in fiscal 2023: €22.6 billion
  • Revenues from Pluxee food stamp business: +26.9 percent to 1 billion euros
  • Pluxee net profit: 234 million euros
  • Net profit from all other Sodexo businesses: 560 million euros
  • Percentage of Group capital controlled by family holding company Bellon SA: more than 40 percent
  • The United States accounts for 46 percent of Sodexo's on-site services revenues.
Sodexo BRS: transforming the customer experience - 02/06/2023
  • Sodexo BRS (Benefits & Rewards Services) leverages Genesys Cloud CX and Salesforce Service Cloud to harmonize its customer service strategy
  • Sodexo BRS has a presence in 31 countries.
  • 36 million beneficiaries of Sodexo BRS services.
  • 500.000 corporate and public sector customers.
  • 1.7 million business partners.
  • More than 1,500 customer service agents in different countries.
Sodexo splits in two to increase shareholder value - 07/04/2023
  • Sodexo is the world's number two in food services.
  • The BRS division will be spun off in 2024.
  • Sodexo's current market value is about 15 billion euros.
  • BRS accounts for less than 5 percent of Sodexo's revenues, but 25 percent of its operating results.
  • BRS employs fewer than 5,000 people out of Sodexo's total of 420,000 employees worldwide.
  • BRS is targeting sales of 1 billion euros this year.
  • Edenred, a major competitor, has a market capitalization of more than 14 billion euros.
  • Since 2016, Edenred has doubled in size.
  • Food stamp startup Swile, a competitor in the food stamp industry, raised 175 million euros at the end of 2021.
Sodexo will spin off and put its Benefits & Rewards division on the stock exchange - 05/04/2023
  • - Proposed spinoff of Benefits and Rewards Services business planned for 2024
  • - Bellon SA: largest shareholder in Sodexo with 42.75 percent of capital, supports the proposed demerger
Sodexo announces a business split - 05/04/2023
  • Net profit up 30.6 percent in the first half of Sodexo's first fiscal year
  • Net profit of 440 million euros from September 2022 to February 2023
  • sodexo employs 422,000 people in 53 countries
  • The food services group plans to spin off its employee benefits and rewards business into a publicly traded company.
  • Planned "during the course of 2024," the transaction will involve "the distribution of shares of the (new) entity to Sodexo shareholders."
  • The Bellon SA family holding company, Sodexo's main shareholder with 42.8 percent of the capital as of Aug. 31, 2022, "supports this project and intends to maintain a role as a long-term controlling shareholder in both entities," the text reads.
For Sodexo Liveve, Sodexo's events branch, the American dream of its glamour branch is becoming a reality - 19/12/2022
  • The United States accounts for 60 percent of revenues, ahead of France (25 percent) and the United Kingdom (11 percent)
  • Sodexo operates prestigious stadiums and convention centers in the United States
  • The global market for sports and leisure food services is estimated at $76 billion (Bain study)
  • $17 billion in the U.S., France and the U.K., the 3 most attractive countries for event catering
  • Sodexo Live! is the 4th largest operator in the world after its UK competitors
  • Sodexo Live turnover 1.7 billion before Covid and 1.3 billion in 2021

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Accent Catering Limited
Aspens Limited
Caterfood Limited
Taylor Shaw Limited
Caterlink Limited
Compass Group
Sodexo France

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