News on 14 December 2000
Eurest Sutcliffe, the business and industry operating company
of Compass Group UK, has won a five year, £40m annual turnover contract
with Sainsbury’s Supermarkets. Compass which merged with Granada’s
hospitality division earlier this year (see
News story) is to operate the staff restaurants and vending services
for over 150,000 staff at Sainsbury’s 427 stores throughout the UK.
The contract follows a six month trial in 15 stores by Eurest Sutcliffe.
The catering was previously operated in-house although staff will be transferred
under TUPE legislation to Eurest Sutcliffe. The contract involves the
use of Sainsbury’s own brand food products.
Mark Davis, project manager for Sainsbury’s, commented: “After
the trial contract, it was clear that Eurest Sutcliffe had the operational
scope and the flexibility to deliver quality services across a contract
of this size. They have demonstrated innovation and a commitment to working
in partnership with Sainsbury’s.”
Francis Mackay, chairman of Compass Group, said: “This is an exciting
and substantial win for Eurest Sutcliffe and is probably the second largest
ever account to be awarded in the UK. We are delighted to be working for
one of the UK’s leading supermarkets.”
The five year contract is subject to an evaluation of the initial 50 stores
at Easter 2001.
l Compass Group reported a pre-merger
rise in operating profits, up £18m at £928m on turnover of £8.3bn. Sales
in its foodservice division increased by 11% to £7.3bn, producing profits
of £583m, up 3%.
