Expert Guides
How to develop a contract catering strategy
Understanding the client’s catering vision is key. A well-defined strategy with clear objectives simplifies decision-making and paves the way for success.
Set objectives
Some organisations provide free or subsidised meals for their employees. This can be a valuable part of their employment package and a key element of an organisation’s attraction and retention strategy.
Other organisations may choose in-house catering because their building is located in a remote area or where there is limited choice locally for staff to buy their own lunch. In-house catering can aid productivity as it encourages staff to stay on site.
With the increased importance of wellbeing on the corporate agenda, some organisations choose to provide a contract catering service that supports the wellbeing of their staff.
A well designed restaurant and café can act as a hub for connectivity and sharing ideas. There are plenty of examples showing the value created when the walls in corporate silos are removed.
Some organisations require hospitality and fine dining as a client relationship and business development tool for entertaining guests.
The caterer must understand the client’s objectives before they start to build a strategy and proposal. To compile a catering strategy it’s helpful to consider these areas.
Service scope
- Is a full service restaurant or a pre-prepared or made-to-order ‘grab and go’ service required?
- What catering facilities exist?
- What opening hours are required?
- How much emphasis should there be to provide healthy food options?
- Where does the catering offer support the company’s employee health and wellness strategy?
- What is the range of food to be provided?
- Is a separate coffee bar required?
- What is the local catering competition?
- Is a comprehensive range of hospitality services required including fine dining?
- How should beverages be supplied – over the counter or vended?
- What payment solutions should be provided?
Understanding customers
- Who are the customers?
- What is the staff’s demographic and where do they eat when they are not at work?
- What type of guests will be visiting and what are their expectations? How important is hospitality to the contact’s success?
- How technology savvy will customers be?
Quality assurance and sustainability
- Give examples of quality
- Outline the sustainability aspirations
- Are their 'green kitchen', Ecovadis or other ESG goals to align with?
Tariff and financial objectives
- Is the tariff designed to return a gross profit, or to recover just the cost of food and VAT or free issue?
- If a gross profit is to be generated, what level is appropriate or achievable?
- If the service is free issue, what is the daily allowance?
- Are the hospitality service costs absorbed centrally or recharged?
The financial outcome of the catering service will be driven by the range of services, number of staff on site, the tariff and contract style.
For example, if a policy of free issue meals or coffee are adopted, the cost to the client will be higher. Conversely, a gross profit will reduce the subsidy. To understand the financial implications of different catering contracts read our guide.
