Last week the Government said it's seeking savings of £3b across its public service markets. But is there any room for contracts to be squeezed further?
And if so, does that mean they weren't already at the best price?
Sad to say that they will probably make these saving, whether the best price could have been justified before.
the cost as usual will be labour and product quality.
What everyone should stop and think before they put the food in their mouth is what life can these animals/foodstuffs had if the chain can still make a profit and charge next to nothing, I for one dread promotional signs from anywhere about steak and chips for £5.99 (example) as I know what kind of meat these guys have to use, and also how few people the business can afford to employ to cook and serve said product.
I could argue this all day, but the truth of the matter is, it probably can be done cheaper and with less labour, and probably will.
Dole queues will get longer and working staff more stressed increrasing the amount of workforce out sick.
sounds to me like the country is flying in ever decreasing circles until it vanishes up it's own backside.
In regards to the contracts being squeezed further I do not think this is possible. When contacts are being made now more than ever more and more companies are competing for one contract. In some cases we have been competing with over 20 competitors. The margins are reducing contract by contract. By this time next year businesses will be dealing with contract that a worthless as we will not be making any profit.
I understand the government are saving money, but are they aware of how much pressure they are placing on businesses that need the custom to get them through these next few years?
Mcmarketing:By this time next year businesses will be dealing with contract that a worthless as we will not be making any profit.
Intersting point you make. Does that mean that this time next year the public sector will struggle even more because operators won't want to go near them or does it mean there will be less caterers around to make a play for them?
I know people who have said how surprised (and relieved!) they are that so few businesses went under in the last couple of years. But maybe it's a delayed reaction. Like the punch in the head that kils you in your sleep two days later.
It is important to make sure that your Contract Caterer Business is different! You also need to make sure that you have enough finance in place to start your business. Thanks!
Events Catering Melbourne
Yeah I agree.