Number lunching

Does size matter? Not according to the findings of the Eurest Lunchtime Report 2002, a nationwide survey of 2,500 adults. It reveals that taste, health and quality, not portion size, are the deciders when it comes to what employees chose to eat at lunch. The report, published in August, shows that 66% of employees eating in-house make mealtime decisions with taste in mind, 49% go for healthy options and 38% decide on the basis of quality.

"Taste and quality are definitely an issue," says Tom Dudzik, operations director for Cost Effective Catering, based in Edinburgh. "Unless you offer these, customers won't use the facilities. They'll bring in their own meals or go off site, even if it costs more. At one of our units with a strict budget we found customers paying twice the price for sandwiches off site, so we introduced a wider variety, upped the price and they bought them. If people are using the facilities every day, we have to come up with variety and quality."

The survey also shows that the percentage of workers choosing on the basis of speed has doubled from 20% to 41% since 2000, when the last report was published. And it seems workers are getting what they want: canteen usage has also doubled, with 35% of employees using dining facilities at work four to five times a week, compared with just 16% in 2000.

Despite the rise in numbers using the staff cafeteria, however, most contractors found the take-up disappointingly low. "An average take-up of 65% is what we expect," says Alison Tyler, director of business development at Charlton House Catering. "We offer so much more then the traditional restaurant, such as caf‚ bars, shops and grab-and-go to keep workers in-house. Generally, prices are below those on the high street. Most people's expectations have gone up and contract caterers have changed the menu to reflect these demands."

"Lower prices are offset by higher volumes," says Russell Scandrett, director of Catering Alliance. "We have been in the Sunday Times Fast-track list of companies twice and in this year's Independent 100 we are listed 12th for sustained growth. This reflects the fact that more people are using the services than ever before, starting with higher numbers for breakfast. The client is happy as it justifies the benefit of a subsidy and the more money you take the less the subsidy. We would expect take-up rates to be about 45-55%."

Another big surprise is that employees are spending less, an average of £1.95 on lunch, 3p less than they did in 2000, while 37% of employees in the North-east spend under £1.

The findings have raised a few eyebrows. "It seems very low," says Andrew Merrett, corporate affairs director for Aramark, which this year carried out its own annual survey of more than 4,000 people and found the average spend was £2.17. "It varies depending on region and sites," Merrett says. "Office centres near London could average £4 and at a more provincial setting, £1.44. What we found is that the average daily spend could be as high as £6.15. It's hard to believe that so many workers in the North-east spend less than £1. Even a sandwich costs about 75-80p."

Eurest stresses that the spend is for lunchtime only, and doesn't cover breakfast, or coffee breaks, a point taken up by John Wright, Sodexho UK's marketing director Business & Industry.

"The spend seems low, but is indicative of the state of the market and the spending patterns of the individual. For instance, call centres, which are now an industry akin to manufacturing, take a lot of short breaks, and employees would make multiple purchases throughout the day, as opposed to a traditional staff restaurant where workers buy a main meal," he says.

Average spend
"Different outlets have different profit margins, but our average spend would vary between £2 to £2.80," says Mike Smith, managing director of BaxterSmith. "It also depends on people's propensity to spend. Our view is that [if average spend is] over £3 the perception of value for money and of the catering as a benefit drops."

Another surprise finding is the lack of interest in GM-free foods (4%) and organic produce (6%). More disappointing for those companies promoting organic meals is that 63% of lunchtime workers are not prepared to pay more for these. Some contractors, however, remain optimistic.

"I don't believe it's just a fashion trend," says Charlton House's Tyler, whose company has been a keen supporter of organic foods for some time. "Ten years ago we were in the same position with healthy eating, which is now widespread, and this might happen with organic meals. They will stay and become more popular, especially if supplies improve. People want to know more about their food and where it comes from."

Tea - topping the poll (41%) as the favourite lunchtime drink - was an unexpected winner over coffee, which came second with 33%. Yorkshire workers drink the most tea on mainland Britain (49%) while in Northern and Southern Ireland a staggering 100% of workers claim to drink tea.

Bill Vickers, marketing and food service director at Compass, who commissioned the report, comments: "Tea is coming back. It's seen as healthier than coffee, and there is an increase in herbal teas. There is also a tendency for workers to make their own tea if there are no catering facilities at work."

The results are slightly at odds with the general perception that coffee is still the most popular beverage. One explanation is that the survey was looking at lunchtime drinks, not drinks bought throughout the day. With coffee bars becoming increasingly popular, coffee might well be first past the tape on this basis. Mineral water, seen as healthy and trendy, has made its first appearance on the survey, coming a respectable third (21%) and making an impact on both tea and coffee.

Report highlights

• Lunch breaks have fallen to 27 minutes - nine minutes shorter than in 2000. People in the Republic of Ireland takes the longest, with an average 39 minutes.
• Average daily spend is down to £1.95, compared with £1.98 in 2000. In the Republic of Ireland 49% of workers spend £2-£2.99
• The proportion of staff using a restaurant at work four to five times a week has risen to 35%, compared with 16% in 2000.
• Just over half (51%) of workers do not have a staff restaurant, cafeteria or canteen at work.
• Most men take a lunchbreak (63%) but fewer women do (49%)
• Workers choose their lunch on the basis of taste (66%) healthy option (49%), price (47%) and speed (41%).
• More men (51%) than women (41%) list price as a factor.
• Sandwiches are the most popular food item (65%) and fruit the second favourite (36%).
• The Scots (46%) eat more fruit at lunch than people from any other region.
• Tea tops the most popular lunchtime drink at 41%, compared with coffee at 33%.
• Yorkshire workers (49%) drink the most tea and Midlanders (40%) drink the most coffee.
• Only one in 100 workers now take an alcoholic drink at lunch compared with one in three in 2000.
• Nearly two-thirds of workers (63%) are not prepared to pay more for organic food.

Further details

Lunchtime Report 2002 is available at £25 from: Communications Department, Eurest, Rivermead, Oxford Road, Denham, Uxbridge. UB9 4BF. Tel: 01895 554554.

E-mail: info@compass-group.co.uk