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The Caterer

BBC deal could be up for grabs

28 July 2006
BBC deal could be up for grabs

Compass Group division Eurest could lose its £15m catering contract at the BBC if the deal goes out to tender next year, according to a source close to facilities management group Johnson Controls.

US-based Johnson Controls won the £180m-a-year facilities deal in April and, according to the source, the catering could be recontracted out because the BBC is unhappy with the service. "They're not happy with the food quality, the service or the cost of the operation," said the source.

"Eurest has to do the best it can until it's retendered."

Problems reportedly include faulty fridges and ovens and the source said the BBC and Eurest had disagreed over who should pay for repairs.

The source added: "It went right up to board level. There were some senior people who were not happy with the corporate hospitality."

A BBC spokesman said the deal, which covers 14 London units, would be reviewed but not necessarily retendered, and refused to comment on any specific issues.

A Compass spokesman conceded there were "infrastructure issues" that needed to be resolved.

By Tom Bill

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