Last month, Caterer and Hotelkeeper, in association with Britvic Soft Drinks, revealed this year's list of the 100 most influential people in our industry. In the final article of our series analysing the top people by sector or discipline, Chris Druce looks at the biggest names in contract catering.

No surprise then that Richard Cousins, the group chief executive of the UK's largest contract caterer, Compass, has retained the top spot in this sector for the second year running and actually climbed up the overall top 100 from eighth in 2010 to sixth this year. Chris Stern, managing director of the Stern Consultancy, says: "It's inevitable and right that the Caterer and Hotelkeeper 100 features numerous people from Compass, as the world's largest caterer. It also helps that they are refocusing since the arrival of Ian Sarson and have some terrific initiatives on the go."

Full article:

http://www.caterersearch.com/Articles/2011/08/17/339848/Caterer-and-Hotelkeeper-100-Top-contract-catering.htm

On Friday (8^th July), Chris ran in the Mayfair Park & Tower Race (www.mayfairparkandtowerrace.com) to raise funds for Galvins Chance (www.galvinschance.co.uk). This is an inspirational ‘into work’ programme leading to an apprenticeship, college programme or sustainable employment targeted at disadvantaged young people aged 18-24 not in education or employment. It offers them training and opportunities for a front of house career in some of the most prestigious hotels in London. This is the beginning of their involvement on a life changing programme that will ultimately provide them with the confidence , aspiration and opportunity for a career.

Thanks to the massive generosity of friends and colleagues, Chris has raised an impressive £2,400.

 Aramark demand 12% price cut from suppliers

Contract catering giant Aramark has demanded its suppliers cut prices by 12%, in a letter dated 1 June.

 The letter from chief operating officer Mark Faulkner, said that the company requires some of its suppliers to "make immediate proposals for price reductions on all products or services provided to Aramark, effective 1 July 2011".

Chris Stern of Stern Consultants said that he recognises the need for efficiencies in the current market, but slammed Aramark's tactics. "To simply issue a generic, aggressive letter to suppliers is not the hallmark of the sophisticated organisation we thought Aramark was.

"Whilst focusing on the supply chain is of course critical, they should also review their own performance on a site/micro level. Our experience with most caterers and especially the larger ones is that this is an area where efficiencies are typically available."

Full article:

http://www.caterersearch.com/Articles/2011/06/03/338538/Aramark-demands-12-price-cut-from-suppliers.htm

Do low pay and low grade always go together?

This year's rise in the minimum wage from £5.93 an hour to £6.08 - a 2.5% rise but below the inflation rate - has already been greeted with some dismay by the catering industry. Meanwhile the London Living Wage Campaign, being supported by the city's Mayor, Boris Johnson, has now set the London minimum pay at £8.30 an hour, something that has been supported by 100 of the wealthier firms and companies in London, but not by the vast majority of employers.

"No one wishes to come across as an old skinflint, " says Chris Stern of the Food Consultants Society International (FCSI), "but we are facing a 6% increase which for many client companies could prove the last straw. It is quite unaffordable."

If Caterers are charging clients' employees £2.30 for a cappuccino, then a 6% increase on top becomes quites significant, he says.

For the full article please see pages 18 - 19:

http://www.educateringmagazine.co.uk/

11.03.11: Caterer & Hotelkeeper

Getting the first contract

Food service consultant Chris Stern conducted the Pinewood tender that ultimately ended in success for Couture. He shares his thoughts on breaking into a marketplace where reputation remains key to winning business.

It's tough for new catering companies to get their first job, as few clients want to try an unproven business - the recent decline of Restaurants at Work has scared off even more from taking a risk.

The key to success is ideally to have a clear USP. It's also helpful if the principals in the business have a track record. At Pinewood there was a unique situation; this is a commercial client whose core business is in itself risky, so they were less afraid of taking a risk with their caterer and looking for something different to what they had.

These sorts of opportunities are rare but still come up from time to time. Some companies like the kudos associated with being an early adopter of a hot new company - the challenge is in picking the right ones. Couture's success at Pinewood is proof positive that sometimes it's a risk worth taking. We could also point to BaxterStorey's early days when a large, prestigious law client took them on when they had no contracts. They still hold that contract today and, like Couture, are doing a great job.

Full article:

http://www.caterersearch.com/Articles/2011/03/11/337405/The-secrets-of-Couture39s-success.htm

13 August 2009: Caterer & Hotelkeeper

Food service consultant Chris Stern adds: "You can't get to who you want to talk to with a big contractor. In that way small contractors are more in tune with specific complexities that can happen [in this market]. Big contractors are less agile."

The report, Eating Out in the UK 2009, produced by industry analysts Allegra Strategies, concluded that, to survive, operators would have to respond to the fact that 75% of respondents valued quality and taste of food above price, and more than half (58%) preferred to eat food sourced from the UK.

"People will still pay for quality in a recession," says consultant Stern. "If you reduce quality, your margin looks good, but your profit is rubbish because it doesn't sell. Let's face it, 30% of £1 is 30p, but 70% of zero is zero. Increased quality equals increased tariffs."

In fact, in some sites, prices are holding up. At Canary Wharf, for instance, main courses are still being sold for £4 to £5 in City bank restaurants. "They are rammed out and it's nil-subsidy," says Stern. "It doesn't work everywhere, but it does where prices in the high street are high."

While many of the independents are finding their way in the recession, however, the big contractors are still a force to be reckoned with. "Smaller contractors have agility and can be more bespoke, but larger companies will research ways of meeting client needs and then roll it out, which is equally effective," says Stern.

He points out that a lot of the marketing initiatives of the big boys are supplier-led. "They buy in branded sandwiches and crisps and package them as promotions. The public buy those brands in the high street, so they are willing consumers."

And, as Stern says, there are also opportunities: "The big boys say that the smaller contractors will fail in the tougher market, but why should they collapse? The market is the same. In fact, some say it's more robust in some staff restaurants."

20 October 2010: Caterer & Hotelkeeper

Rather than an upsurge in bargain-hungry customers filling the staff dining rooms and helping operators to buck the recessionary trend, volume levels appear to have remained largely static.

"I really thought the recession would be good for staff restaurants," Chris Stern of Stern Consultancy says. "But what really skews the statistics is that most organisations cut their staff and made fewer customers available for in-house facilities. Maybe as a percentage of site population staff canteens have become busier but an increase in business has been hidden by the fact that there are fewer staff in the building."

The main priority of the customer witnessed by most - if not all - food service businesses, is value. Caterers are striving to demonstrate a perception of value for money to their customers in order to drive sales, but while the aim is the same the methods employed vary wildly.

Full article: http://www.caterersearch.com/Articles/2010/10/20/335560/tempting-customers-back-to-the-staff-canteen.htm

12 August 2010: Caterer & Hotelkeeper

While the monthly BRC/Nielsen report is focused on shop prices, food inflation does of course have a major impact on the hospitality industry.

Food service consultant Chris Stern said rises in food costs have the potential to be "a major problem". "Lots of organisations, especially in the public sector, are trying to drive down their subsidies and many are already struggling with this," he said. "Food price inflation will just put them under more pressure."

FIVE WAYS TO COMBAT FOOD INFLATION

1. Scrutinise your menu Study your menu and eliminate extortionate ingredients.
2. Play suppliers Benchmark a range of suppliers and corroborate your findings with market research.
3. Simplify Don't overcomplicate things. Rely on three or four quality ingredients per menu choice.
4. Stay seasonal and local The difference in price between produce in and out of season can be huge. 
5. Good housekeeping If you know Monday is going to be quiet, then prep accordingly. Don't buy too much and don't buy off spec. Order little and often.