News on 28 March 2001

Growth for hospitality sector despite skills shortages

Contract caterers at the British Hospitality Association’s (BHA) survey presentation on Tuesday emphasised the importance of marketing in the increasingly commercially minded industry and the threats posed by skills shortages. Although overall contract catering turnover rose by 8.5% to £3.26bn in 2000, the skills gap is making it difficult for companies to fulfil their potential and grow rapidly. The recent foot and mouth disease further adds to the pressure.

The industry has however become more open to expanding its service offerings. Contract caterers are no longer restricted to provide catering only and offer added services such as housekeeping, cleaning and porterage. “Our skills in dealing with people are very transferable and it is therefore no problem for us to operate in other services,” said Phil Hooper from Sodexho.


Mike Oldfield

Mike Oldfield, chairman of the Contract Catering Forum, believes this to be one of the industry’s growth factors: “Growth will come not only from acquisitions of new contracts, but also from the sale of additional goods and services.”

Although part time employment steadily increased over the last two years, the number of full time staff has fallen. In fact a lack of people and skills seems to be what most contract caterers fear in the near future. “It’s difficult to attract young people,” said Robyn Jones, Charlton House Catering Services, “and we need to improve the industry image through investment.”

Compass Group’s Frank Whittaker believes a body like the BHA should be used to organise career developments for graduates from different disciplines. Although it could be argued that companies should co-operate to develop these types of schemes to bridge the skills gap, Whittaker said that realistically that is not going to happen.

The chief executive of BHA, Bob Cotton, responded by saying that the survey and video produced for the presentation will be distributed to colleges to promote the industry, which Bill Toner from Aramark said needs to be “portrayed as more sexy and exciting”.


Calum Ross

But it’s not only the industry itself that needs to be marketed, but also the products within it. Calum Ross, business group director of Caterplan (now part of Unilever) and Bill Toner are two of many who say the hospitality market has become an increasingly marketing driven one. The number of in-house brands grew from 147 outlets in 1994 to 4,352 last year. Unilever for example uses Knorr and Hellmann’s brands to sell soups and salads.

The survey also showed that contract caterers are more interested in education PFI projects than any other similar developments, with healthcare PFIs following closely. 16% more meals were served in the healthcare sector with state education experiencing a 14.8% increase in the number of meals and independent schools 6.3%.

www.bha-online.org.uk

Jessica Jarlvi

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