Small firms can still give that special touch

Over the past two years, mega acquisitions by the large catering companies have undoubtedly given a new dimension to the catering market. Nevertheless, small can still be attractive and successful. The question is, how?

Consolidation in the catering industry continues, with large companies growing even larger through merger and acquisition. Over the years, we have seen the Sodexho merger with Gardner Merchant, the Compass acquisition of Eurest, and Granada's purchase of Sutcliffe, CCG, Shaw Catering and Baxter & Platts. We are also seeing Aramark diversify out of its US base while the Marriott International network continues to grow.

Continuing trend

Although this trend is likely to continue, small, independently owned companies can still thrive and be highly successful.

This industry is very much a "people business", and companies that offer clients a personal service can do well. To ensure success it is important that companies have staff with the right know-how, expertise and, crucially, the motivation to do well.

To be competitive in this market, it is essential to know how to develop and inspire people to do their best, regardless of the size of the company. I agree with catering industry author Victor Ceserani that the major asset of any business is its staff.

In any organisation every member of staff - no matter what their position - has a point of view concerning the running of the business. Sensible management will find ways to co-ordinate and consider these views and bring them together, just as a conductor will draw his musicians together to perform a symphony. In doing so, the management may discover changes that can be made to make the business more effective.

It is important, when soliciting ideas from employees, that credit is always given for those constructive suggestions that help the company. Yes, management manages, but an organisation is only as good as the staff who operate it. The managers are not the only people capable of offering an intelligent view on ways to help the organisation do better. Prepare to be surprised.

Successful companies use a team approach, drawing on the brainpower that exists at every level of the workforce, rather than only where it is institutionalised, at the top levels of management.

Small firms

In addition to developing resources within their own company, small firms should also look at ways to co-operate with other like-minded companies to achieve the resources and benefits that are necessary if they are to compete with their larger rivals.

Such partnerships allow them to retain their independence, their individuality and their own methods of doing things.

For example, in 1993 Catering & Allied Services in the UK, and its sister company, Holland Catering Specalisten in Holland, got together with SV Services in Switzerland to form an alliance called the Quality Catering Partners. All three share a similar philosophy of customer service, though the markets we operate in are quite different.

One of the benefits of such an alliance is that a specialist niche player such as Catering & Allied can achieve the same purchasing power as a much bigger company, and we have the benefit of participating in an international forum where we can exchange ideas and share resources for training and development.

Obviously, successful independent companies are of great interest to the industry giants, and fending off such approaches can be a challenge.

Swallowed up

To prevent our company being swallowed up we formed a strategic association in 1995 with Elior, part of leading French contract catering company Bercy Management.

The result was Eurocater, a 50:50 holding company with a structure that allows for future trading of shares but prevents them falling into the hands of a predator in circumstances that are outside both companies' control. The companies retain their independence and identity and intend to pool training and management development programmes, new career opportunities and a sharing of experience.

Although smaller companies will learn a lot from such partnerships, it is crucial they retain their own culture and core values. They must remember that their clients chose them because their size allows them to be flexible and responsive to their needs. And their size enables them to communicate with their staff. Their size is their advantage.