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."