Industry Analysis & Industry Trends
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, prisons and other institutions. In 2016-17, the industry is expected to generate revenue of £9 billion.
Both businesses and the government have sought to cope with an increase in competition by outsourcing non-core business activities such as food services. This has ensured healthy demand from downstream markets... purchase to read more
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 £14.48 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 this 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