Food and labour costs as a percentage of turnover fell marginally in the contract catering industry during 2009, according to the latest survey by the British Hospitality Association.
Despite a 6% drop in staff levels, labour costs fell by just 0.8 percentage points to 43%. This was because lower-paid part-timers suffered the biggest decline in staff numbers. Additionally, caterers who win state education contracts from local authorities under the TUPE regulations pay wage rates that are 50% above normal commercial sector levels.
Food costs as a percentage of turnover fell by 0.7 percentage points to 32.1% as prices, which rose at their highest levels in the early part of the year, eased off during the later months in 2009. As a result, the inflation rate for the basket of food dropped from 12.5% in December 2008 to 1.1% in December 2009. The survey noted that, since 2000, food price inflation had risen from 143.3 to 179.5 (compared with 100 in January 1897)
These facts and figures are reported in the Food and Service Management Survey 2010, published by the British Hospitality Association. The full report (which is free to BHA members) can be bought for £95 (for the printed version) or £50 (for a PDF file). For enquiries or orders, phone 0207 404 7744 or contact Philippa Brady.
More facts and figures from the Food and Service Management Survey
UK contract catering turnover >>
Number of meals served by UK contract caterers >>
Types of catering contract >>
Number of employees in UK contract catering market >>
Structure of the UK contract catering market >>
FOOD AS A PERCENTAGE OF TURNOVER
LABOUR COST AS A PERCENTAGE OF TURNOVER