Contract caterers invest £130m in clients' premises

Contract catering companies invested £130m in their clients' premises last year, according to the latest annual contract catering survey, published by the British Hospitality Association.

Investment in Private Finance Initiative (PFI) projects totalled a further £175m, mainly in the healthcare and education sectors, as well as the Ministry of Defence.

The survey shows that of the 2,200 contracts in which contractors invested in their clients' premises, over 60% were dependent on the investment being made. Eighty contracts attracted over £500,000.

"Even independent contract catering companies are finding that new approaches, new ideas and new menus - some of which are dependent on investment in new catering facilities - are now expected by clients and have to be provided by the contractor if contracts are to be gained and retained," said Linda Halliday, chair of the BHA's contract catering forum.

The survey says the contract catering market has seen its turnover rise from £3.26b in 200 to £3.51b in 2001 with more outlets and more meals served.

The number of part-time workers has increased by 18% and the number of full-time workers has fallen by 4%. Payroll costs rose by 8.1%, possibly due to the impact of the minimum wage.