Going down well: Revenue is expected to continue to rise as outsourcing remains popular

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 2018-19, the industry is expected to generate revenue of £9.9 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...read more.

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

Industry Threats & Opportunities

  • Outsourcing non-core activities has become increasingly common, benefiting the industry
  • Enterprise numbers have fallen as larger industry operators have improved their market position
  • Upheaval resulting from prevailing economic uncertainty could leave some contracts at risk
  • Industry Report - Industry Key Buyers Chapter

    The industry mostly consists of small businesses, although some large international players hold a significant share of industry revenue. Despite this, the Food-Service Contractors industry exhibits a low level of market share concentration. The top four firms are expected to have a combined market share of 33% in 2018-19. The major operators have grown through mergers and acquisitions to cover all major segments of the Food-Service Contractors industry, from business and industry contracts to those in health-care and educational institutions.Although these firms are likely to remain dominant, the industry is still relatively fragmented. This is illustrated by the fact that 83.3% of industry operators employed fewer than 10 people in 2017, according to ONS statistics. The...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
  • Bringing home the bacon
  • Efficiency and employment
  • Stringent legislation
  • Chart: Revenue Growth

  • Industry Outlook
  • Simmering demand
  • Relaxing regulation
  • 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, Sodexo Ltd, WSH Investments Ltd,
  • Table: Compass Contract Services (UK) Limited - financial performance
  • Table: Sodexo Ltd - financial performance
  • Table: WSH Investments 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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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
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    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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