Catering Services Market Intelligence

Catering Services Market Description

The global market for catering services is expected to reach $614.47 billion by 2023 while growing at a constant CAGR of 4.5 percent. High market maturity regions include Western European countries, such as the UK, France, and Italy, along with other countries such the U.S., Singapore, the UAE, and Hong Kong. The potential growth market for catering is anticipated to be in Middle Eastern regions, India, China, Canada, Japan, Mexico, and Australia by 2023. About 60-70 percent of the entire catering contracts in developed markets will be a part of IFM contracts.

The global catering industry will be driven by a growing emphasis on the adoption of technology to improve customer experience and a reduction in the time spent waiting for food. The report also provides a regional market outlook in areas such as North America, Europe, MEA, APAC, and the LATAM. It also explores the digital transformations driving change in the vending industry, followed by best practices and innovation in other catering trends. The report also provides detailed profiles of global suppliers like the Compass Group, Sodexo, Aramark, and ISS.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Regional market outlook- North America, Europe, MEA, LATAM, APAC
Digital Transformation in Vending Industry
Catering Trends
Supply Trends and Insights

Catering Services Market Trend, Analysis & Forecast

Category Intelligence on Catering Services covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Catering Services Executive Summary

1.1 Global Catering Services
1.2 Global Catering Industry Outlook –2016
1.3 Supply Market Outlook
1.4 Brexit –Impact on Catering Services

2. Catering Services Market Analysis

2.1 Global Catering Services Market Maturity
2.2 Global Catering Industry Trends
2.3 Global Catering Drivers and Constraints
2.4 Regional Market Outlook
2.5 Industry Outlook –Factors Affecting Catering Services
2.6 Porter’s Five Forces Analysis: Developed Markets and Emerging Markets

3. Catering Services Supply Analysis Slides

3.1 Supply Market Outlook –Supply Trends and Insights
3.2 Key Global B&I Catering Suppliers
3.3 Key Regional B&I Catering Suppliers
3.4 Key Global Supplier Profile
3.5 Supplier SWOT Analysis

4. Catering Services Cost and Pricing Analysis

4.1 Cost Structure Analysis – Spending Categorization
4.2 Cost Analysis and Expected Savings
4.3 Cost Breakdown – Estimated Cost Model
4.4 Cost Structure Analysis – Negotiation Benchmarks – 2016
4.5 Pricing Models for Catering Services
4.6 Pricing Models – Comparative Analysis
4.7 Pricing Analysis – Price Forecast
4.8 Key Catering KPI and SLA Components

5. Catering Services Procurement Best Practices

5.1 Sourcing Models for Catering Services
5.2 Sourcing Models – Comparative Analysis
5.3 Sourcing Models – Pros and Cons
5.4 Performance Assessment of the Service Provider
5.5 Key Success Factors for Catering Contracts

Catering Services Global Industry Outlook

The global food service industry was valued at $454.4 billion in 2016

The market is forecasted to grow at a CAGR of 4 percent to $491.4 billion in 2018
Western European countries, such as the UK, France and Italy, along with countries such as the US, Singapore, the UAE and Hong Kong, have high market maturity Countries such as Saudi Arabia, Turkey, Canada, Japan and Australia are expected to be potential growth markets for catering services by 2020

Catering Services Global Market Maturity

Other than Western Europe and a few other countries, markets for catering services as a standalone specialized function remain underdeveloped

About 60–70 percent of the total catering outsourcing contracts in these developed markets are a part of IFM contracts
B&I remained the major end-user segment of food services in 2016. However, suppliers are also concentrating on other lucrative segments, such as education and healthcare

Catering Services Industry Trends

Demand in the food service industry is mostly driven by large corporate spending. Major buyers are expanding their catering service offerings to employees through increased outsourcing to specialized catering suppliers
Suppliers are also improving their supply capability while adopting performance-based metrics for evaluation and performance monitoring.

Increasing expansions of global multinationals in APAC and parts of MEA have triggered an increase in outsourcing of catering services
Since 2010, global suppliers, such as Compass Group, Sodexo, Aramark and ISS, have been aggressively trying to increase their footprints in these regions through mergers and acquisitions as well as partnerships with local vendors

Catering Services Drivers and Constraints

Absence of major suppliers or their direct operational presence across all locations leads to subcontracting of services

Subcontracting of services usually leads to variation in quality of services performed and makes it difficult to manage multiple suppliers and, hence, is avoided by the buyers as much as possible

Catering as a Talent Attraction and Retention Tool

More and more companies, especially high-tech and financial services, are showcasing their fine dining services as an additional employee benefit, rather than just a meal or subsidized amenity to attract and retain talent. For example, Google’s lavish free meals program has caused companies that compete for highly skilled employees to follow suit with their own special menus and dining experiences, although most companies still charge employees a subsidized rate for the meals

Demand for Fresh and Healthy Food

There has been a growing demand for fresh and healthy food among corporate buyers, and food service operators have been focusing on offering healthier meals prepared from fresh ingredients at the location’s kitchen and decreasing their reliance on frozen, pre-prepared foods Food Safety Compliance
Due to recent food safety-related incidents, the FDA has come up with tighter norms and regulations for controlling the quality and standards of food being served. These, along with the global push for food safety, is driving demand for outsourcing catering services

Mobile Workforce

Corporate dining services are negatively affected by increasingly mobile workforces. More and more companies are allowing employees to work from home or other off-site locations, and fewer employees on-site reduces the amount of customers in employee cafés, making it difficult for employee dining services to be self-sustaining Awareness Regarding Catering Outsourcing
There is also a low level of awareness among buyers in developing markets regarding opportunities presented by outsourcing catering services with respect to cost savings, regulatory compliance and operational efficiency

category-intelligence-catering-services

More and more consumers are looking for healthy eating options such as balanced vegan diet, organic foods and healthy snacks. This has prompted the service providers to necessarily include these options in the menu. Consumers are looking for much more than just good food. They want to have a pleasant and holistic dining experience, which has given rise to lot of themed restaurants and fine dining eateries that look to provide a better experience in addition to good food

High buyer awareness of outsourcing benefits and high supplier capabilities have driven the increase in outsourcing levels in the region and is expected to keep increasing further.Locally sourced fresh farm produce is in high demand for fruits, vegetables and meat products. Frozen and processed food is being avoided, due to rising quality concerns and issues related to food safety

Sustainable and responsibly sourced food is highly sought after in the market as the threat of food shortages because of crops being by extreme weather events and outbreak food safety related incidents have had a negative impact on the consumers mind and outlook towards eating out

catering-services-market With the increasing levels of globalization and large MNC’s setting up base, the trend of healthy food and eating is expected to be copied from the developed countries and emerge especially in the Middle East and certain countries of Africa such as South Africa..Countries such as UAE and Saudi Arabia are seeing a huge growth in the annual tourist inflow and this has contributed to the development of fine dining and luxury food culture.

This is expected to be carried forward in the B&I sectors as well as more and more global companies set baseGlobal service providers as well as regional players are improving their presence and service capabilities in the region and this has spurred the growth of outsourcing by large buyers mostly in bundle with FM services
Suppliers have traditionally been sourcing locally for the required food items and this has led to the development of a well established local sourcing model for the local needs

catering-services-trends

Increase in M&A:

Suppliers are enhancing their service capabilities both organically as well as through M&A to create value proposition in large contracts from large buyers •Elior recently acquired Preferred Meals to reach out to institutional buyers looking for customized menus and meal catering for their staff
Global FM service providers, such as ISS, have been focusing on improving their catering service levels and continually forging new partnerships with local vendors in challenging locations to support them on improving quality levels Customised Services:
With increasing demand from large buyers for customized dining experiences and menus, large global suppliers are continually improving their menus and offerings to match the latest trends in customer tastes and preferences

Self-performing Capability: Local suppliers typically self-perform the services, which will eventually reduce the troubleshooting escalation matrix for the buyer

Innovative Service Offering: Suppliers are coming up with new contract models and service options for the buyers to negate competition with large global players
Sustainability Solutions:Local suppliers are well aware of the business environment at the particular location and, hence, are able to have a sustainable sourcing channel incorporated to have limited impact on the client

Preparing the exact amount of food necessary per day is almost impossible: there will always be waste. However, this amount of waste can be regulated, and this innovation, will create awareness among employees on exactly what is wasted everyday, by measuring it and by making it visual. Employees can see the results of being more careful about waste, the target being no more than 80-100g of food waste per person per meal.

More and more companies, especially high-tech and financial services, are showcasing their fine dining services as an additional employee benefit, rather than just a meal or subsidized amenity to attract and retain talent. For example, Google’s lavish free meals program has caused companies that compete for highly skilled employees to follow suit with their own special menus and dining experiences, although most companies still charge employees a subsidized rate for the meals Due to recent food safety-related incidents, the FDA has come up with tighter norms and regulations for controlling the quality and standards of food being served. These, along with the global push for food safety, is driving demand for outsourcing catering services