Contractors' share of the healthcare catering market increased from 9.7 per cent in 1996 to 11.5 per cent in 2000.
Contract caterers have almost saturated the business and industry sectors, yet the number of meals served by private sector suppliers in the health and education sectors remains relatively low.
'It has traditionally been a slow process for hospitals and schools to outsource catering,' said report writer Dave Mort, from catering firm IRN Services.
Hospitals and schools are now waking up to the financial benefits of outsourcing their catering contracts, he continued.
Growth in these sectors is expected to come from increased branding and improved menus.
'The importance of branding will vary from sector to sector, but in general people are getting used to high street brands,' said Mort.
'This is beginning to happen in hospitals too. Ten years ago people wouldn't have thought about having a coffee or a sandwich [in a hospital] but this is changing as they realise people can eat while visiting someone and this brings money into the hospital,' he added.
In the short-term the only sharp object likely to burst the growth bubble is the forecast European economic downturn — subcontracting, is usually the first thing to be affected in any slump.
On the public catering sector side, Mort expects private sector contract caterers to push forward into restaurants and fast food over the next few years, but admitted that this will be a slow process.
Source
The Facilities Business