Sodexho forms F&B pact with Friendly

Sodexho has signed its first major hotel deal, with Friendly Hotels, to take over food and beverage operations in its 44 owned hotels.

The contractor, formerly known in the UK as Gardner Merchant, is to take over restaurants, bars, room service, banqueting and hospitality for Friendly's UK hotels.

In addition to the owned hotels, Friendly has another 36 franchised hotels in the UK, which will be offered the service.

Sodexho is keen to break into areas other than food in the UK, but Friendly managing director Peter Cashman said there had been no talks to extend the deal.

But Simon Marshall, managing director of Sodexho's hotel and commercial restaurants division, said: "We are in talks with several other hotel groups and property developers about full management contracts."

Friendly is to pay Sodexho a flat fee for the three-year contract and Sodexho has guaranteed that it will increase the 29% gross profit margin by at least 2%. Current turnover for food and beverage in the 44 hotels is £19m and is expected to increase to £33m over the next three years.

"Like any contractor, Sodexho will get retrospective discounts from suppliers that they will keep," said Cashman.

Sodexho will introduce existing names including Seasons, Caffé Toscana and Rhodes & Co, which already exists at the Quality hotel in Manchester, and Arbuckles American Café.

Sodexho has signed a franchise agreement with the Arbuckles Group to open 30 Arbuckles American Cafés over the next five years.

by Christina Golding