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This report covers: Contract catering, market trends, market segmentation, by sector, by enduser, business and industry, education, healthcare, ministry of defence, local authorities, success factors, Best Value bidding, government policy
Companies covered include: Aramark, Avenance Catering, Nelson Hind Catering Management, Castle View Services, Charlton House Catering Services, Compass Group, Initial Catering Services, Sodexho, Gardner Merchant, Sovereign Catering Services

| 1 | EXECUTIVE SUMMARY | 1 |
| 2 | INTRODUCTION | 3 |
| 2.1 | Definitions | 3 |
| 2.2 | Methodology | 4 |
| 2.3 | Economic Background | 4 |
| 2.3.1 | Overview | 4 |
| 2.3.2 | Interest Rates | 7 |
| 2.3.3 | Inflation | 7 |
| 2.3.4 | Household Income And Expenditure | 7 |
| 2.3.5 | Services And Manufacturing Output | 8 |
| 2.3.6 | The Budget 2001 | 9 |
| 2.3.7 | Forecasts | 9 |
| 2.4 | Exchange Rates | 10 |
| 2.5 | Abbreviations | 10 |
| 3 | MARKET OVERVIEW | 11 |
| 3.1 | Market Size And Trends, 1996-2000 | 11 |
| 3.2 | Market Segmentation | 13 |
| 3.2.1 | By Sector | 13 |
| 3.2.2 | By End User | 15 |
| 3.2.2.1 | Overview | 15 |
| 3.2.2.2 | Business and Industry | 19 |
| 3.2.2.3 | Education | 21 |
| 3.2.2.4 | Healthcare | 23 |
| 3.2.2.5 | Ministry of Defence | 26 |
| 3.2.2.6 | Local Authorities | 27 |
| 3.3 | Factors Affecting Demand | 29 |
| 3.4 | Market Forecasts, 2001-2005 | 33 |
| 3.5 | Forecast Segmentation | 35 |
| 3.5.1 | By Sector | 35 |
| 3.5.2 | By End User | 36 |
| 4 | CRITICAL SUCCESS FACTORS | 42 |
| 5 | INDUSTRY STRUCTURE | 46 |
| 5.1 | Overview | 46 |
| 5.2 | Company Profiles | 47 |
| 5.2.1 | Aramark | 47 |
| 5.2.2 | Avenance Catering | 48 |
| 5.2.2.1 | Overview | 48 |
| 5.2.2.2 | Nelson Hind Catering Management | 49 |
| 5.2.3 | Castle View Services | 51 |
| 5.2.4 | Charlton House Catering Services | 52 |
| 5.2.5 | Compass Group | 53 |
| 5.2.6 | Initial Catering Services | 54 |
| 5.2.7 | Sodexho (Formerly Gardner Merchant) | 56 |
| 5.2.8 | Sovereign Catering Services | 57 |
| 6 | MAGAZINES | 59 |
| 7 | TRADE ASSOCIATIONS | 61 |
| 1. Economic Indicators On The UK Economy, 1996-2003 | 6 |
| 2. The UK Value Market For Contract Catering And Additional Support Services, 1996-2000 | 11 |
| 3. The UK Value Market For Contract Catering And Additional Support Services, By Type Of Service, 1996-2000 | 12 |
| 4. The UK Volume Market For Contract Catering, 1996-2000 | 13 |
| 5. The UK Value Market For Contract Catering And Additional Support Services, By Sector, 1996-2000 | 14 |
| 6. The UK Volume Market For Contract Catering, By Sector, 1996-2000 | 15 |
| 7. The UK Value Market For Contract Catering And Additional Support Services, By End User, 1996-2000 | 16 |
| 8. The UK Volume Market For Contract Catering, By End User, 1996-2000 | 18 |
| 9. The UK Value Market For Contract Catering And Additional Support Services In The Business And Industry Sector, 1996-2000 | 19 |
| 10. The UK Volume Market For Contract Catering In The Business And Industry Sector, 1996-2000 | 21 |
| 11. The UK Value Market For Contract Catering And Additional Support Services In The Education Sector, By Type Of Establishment, 1996-2000 | 22 |
| 12. The UK Volume Market For Contract Catering In The Education Sector, By Type Of Establishment, 1996-2000 | 23 |
| 13. The UK Value Market For Contract Catering And Additional Support Services In The Healthcare Sector, By Type Of Establishment, 1996-2000 | 24 |
| 14. The UK Volume Market For Contract Catering And Additional Support Services In The Healthcare Sector, By Type Of Establishment, 1996-2000 | 25 |
| 15. The UK Value Market For Contract Catering And Additional Support Services For The Ministry Of Defence, 1996-2000 | 26 |
| 16. The UK Volume Market For Contract Catering For The Ministry Of Defence, 1996-2000 | 27 |
| 17. The UK Value Market For Contract Catering And Additional Support Services For Local Authorities, 1996-2000 | 27 |
| 18. The UK Volume Market For Contract Catering For Local Authorities, 1996-2000 | 28 |
| 19. The Forecast UK Value Market For Contract Catering And Additional Support Services, 2001-2005 | 33 |
| 20. The Forecast UK Value Market For Contract Catering And Additional Support Services, By Type Of Service, 2001-2005 | 34 |
| 21. The Forecast UK Volume Market For Contract Catering, 2001-2005 | 35 |
| 22. The Forecast UK Value Market For Contract Catering And Additional Support Services, By Sector, 2001-2005 | 35 |
| 23. The Forecast UK Volume Market For Contract Catering, By Sector, 2001-2005 | 36 |
| 24. The Forecast UK Value Market For Contract Catering And Additional Support Services, By End User, 2001-2005 | 37 |
| 25. The Forecast UK Volume Market For Contract Catering, By End User, 2001-2005 | 40 |
| 26. Financial Summary Of Aramark, 1996-2000 | 48 |
| 27. Financial Summary Of Avenance Catering, 1998-2000 | 49 |
| 28. Financial Summary Of Nelson Hind Catering Management, 1996-2000 | 50 |
| 29. Financial Summary Of Castle View Services, 1996-2000 | 52 |
| 30. Financial Summary Of Charlton House Catering Services, 1996-2000 | 53 |
| 31. Financial Summary Of Compass Group, 1996-2000 | 54 |
| 32. Financial Summary Of Initial Catering Services, 1996-2000 | 55 |
| 33. Financial Summary Of Sodexho (Formerly Gardner Merchant), 1996-2000 | 57 |
| 34. Financial Summary Of Sovereign Catering Services, 1996-2000 | 58 |
LIST OF DIAGRAMS
| 1. The UK Value Market For Contract Catering And Additional Support Services, By End User, 2000 | 17 |
| 2. The UK Volume Market For Contract Catering, By End User, 2000 | 19 |
| 3. Forecast UK Value Market For Contract Catering And Additional Support Services, By End User, 2005 | 39 |
| 4. Forecast UK Volume Market For Contract Catering, By End User, 2005 | 41 |
MSI believe that the value of the market for contract catering and additional support services in the UK has increased significantly during the review period. Indeed, it is estimated that the market rose by 10 percent between 1996 and 2000. The value of the market increased by 2 percent to £3.19 billion (5.23 billion) in 2000.
It is believed that the number of meals served by contract caterers in the UK has also increased substantially during the review period. Indeed, the volume market for contract catering increased by 12 percent between 1996 and 2000, reaching a level of 1 365.1 million meals in 2000.
MSI believe that contract catering for the private sector represented the most significant proportion of the value market during the review period. The private sector accounted for 58 percent of the total market in 2000. Furthermore, the private sector accounted for 59 percent of the volume market during the same year.
The most significant end user sector of contract catering services during the review period was business and industry. This sector accounted for 46 percent of both the value and volume markets in 2000. Education was the second most substantial sector during the review period, accounting for 24 percent of the value market in 2000, despite the value of the market having declined during the review period. Indeed, although substantial increases in other end user sectors have occurred, there was a decline in the value of the sector to £765.6 million (1 255.6 million) in 2000. This was largely due to delays by the Local Education Authorities in transferring to the new Best Value system of bidding for contracts.
MSI have identified a number of important factors affecting demand for contract catering in the UK. These include:
The report also identifies several factors that are critical to the success of companies operating in the contract catering market. These include:
MSI believe that the UK market for contract catering and additional support services will continue to increase in value terms during the forecast period. Indeed, it is expected that the market will rise by 19 percent between 2001 and 2005. Furthermore, MSI believe that the number of meals served by contract caterers will increase by 23 percent during the same period.
It is expected that the private sector will continue to represent the most significant sector of the market during the forecast period. Indeed, MSI believe that contract catering for the private sector will account for 61 percent of the total value market in 2005, and 63 percent of the total volume market. This is largely due to increases in the business and industry sector.
The business and industry sector will continue to account for the most significant proportion of the contract catering market throughout the forecast period. Indeed, it is believed that this sector will account for 48 percent of the total value and 50 percent of the total volume market in 2005.
MSI believe that contract catering for the education sector will represent the second most significant segment during the forecast period. Indeed, this sector is expected to account for 21 percent of the total value in 2005. Despite declining in value and volume terms between 1998 and 2000, MSI believe that the value market will increase by 6 percent between 2001 and 2005.
Text © 2001MSI
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Last updated by Jacob van Eldik 28th August 2001