Chewing it over: Growth is forecast to slow as confidence falters and operating costs inflate

Businesses operating in the Food-Service Contractors industry provide catering services to clients on a contract basis. Major markets for the industry's services include businesses, government departments and local councils, sporting and entertainment venues, tourist attractions, hospitals, schools and universities, nursing homes, airlines and prisons. Improving economic conditions have ensured stable downstream demand over the past five years, contributing to steady growth in industry revenue. Over the five years through 2018-19, revenue is expected to grow at a compound annual rate of 2.5%, including a forecast 1% rise in the current year, to reach £10 more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Stable downstream demand has supported steady growth over the past five-year period
  • Improved efficiency has reduced the need for manual labour and constrained employment growth
  • Economic uncertainty is likely to cause downstream upheaval, threatening industry demand
  • Industry Report - Industry Investment Chapter

    The Food-Service Contractors industry is labour intensive because direct labour is required at each stage of the catering process. For every £1.00 invested in equipment and other depreciable assets, the industry spends £24.65 on wages. This demonstrates a low level of capital intensity. Labour input includes food ordering, storage, preparation, supervision of cooks and other staff and the delivery of meals to customers. There are also kitchen and cleaning duties that require a significant amount of labour input.While there are capital costs associated with commercial kitchens and equipment, much of these can be offset through leasing arrangements. This not only lowers any initial capital outlay, but also presents attractive tax benefits to operators. Fac...purchase to read more.

    Additional Insights for the Food-Service Contractors Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Food-Service Contractors Industry are

  • Ability to compete on tender
  • Ability to control stock on hand
  • Ability to provide goods/services in diverse locations
  • IBISWorld analysts also discuss how external factors such as Total health expenditure and Attendance at leisure activities in the Food-Service Contractors industry impact industry performance..

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    What's in this report

    What is the Food-Service Contractors Industry?

    Businesses in this industry prepare food for clients on a contract basis. Contracts cover the time period of the service, prices and broad menu selections.

    Industry Products
  • On-premises food services
  • Meals for takeaway consumption
  • Beverages
  • Industry Activities
  • Catering for business and industry clients
  • Catering for educational institutions
  • Catering for the health-care and medical industries
  • Catering at sport, leisure and tourist venues
  • Catering for defence services
  • Catering for prisons
  • Catering for offshore oil rigs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total health expenditure
  • Attendance at leisure activities
  • Demand from general secondary education
  • Fruit and vegetable prices
  • Business confidence index

  • Current Performance
  • Downstream demand
  • Efficiency and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Simmering demand
  • Pricing pressures
  • Table: Food-Service Contractors Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Food-Service Contractors Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Secondary Education
  • Hospitals
  • Sports Facilities
  • Consumers

  • Key Selling Industries
  • Alcoholic Beverage Wholesaling
  • Coffee, Tea & Spices Wholesaling
  • Dairy Product, Egg & Edible Oil Wholesaling
  • Fruit & Vegetable Wholesaling
  • Meat Wholesaling

  • Products & Services
  • On-premises food services
  • Beverages
  • Meals for takeaway consumption
  • Chart: Food-Service Contractors Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses
  • Health-care sector
  • Education sector
  • Sports, leisure and tourist sites
  • Transport operators
  • Defence sector
  • Other
  • Chart: Major Market Segmentation for the Food-Service Contractors Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Food-Service Contractors

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Food-Service Contractors Industry

  • Industry Globalization
    Compass Contract Services (UK) Limited, WSH Investments Ltd, Sodexo Ltd,
  • Table: Compass Contract Services (UK) Limited - financial performance
  • Table: WSH Investments Ltd - financial performance
  • Table: Sodexo Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Food-Service Contractors Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Food-Service Contractors Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A type of food-service location with no waiting staff. Canteens are often found in places such as schools, offices and military barracks.
  • Outsourcing
  • The practice of contracting services out to specialist suppliers so that firms can concentrate on their core activities.
  • Steamplicity
  • An innovative way of steam-cooking food, patented by Compass Group.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Food-Service Contractors market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Food-Service Contractors:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Food-Service Contractors market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Food-Service Contractors, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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