Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Richard Cousins gives first Arena Savoy Lecture since hotel reopening

14 April 2011
Richard Cousins gives first Arena Savoy Lecture since hotel reopening

Compass chief executive Richard Cousins has warned the supply chain not to overdo food price hikes.

Speaking at the first Arena Savoy Lecture following the refurbishment of the iconic hotel, Cousins told an audience of catering operators and suppliers that too much inflation was bad for business.

He said: "Those of us towards the bottom of the chain can only absorb so much inflation to our cost base.

"It will drive our efficiencies of course, but in the end significant inflation demands the client and consumer pays more. We have no choice but to pass some of it on.

"If prices go too high, virtually everyone loses out."

Cousins also urged the Government to consider the financial benefits of outsourcing, pointing out that just a quarter of healthcare and a third of education catering is currently contracted out.

He said that "hundreds of millions of pounds" could be saved for the taxpayer every year if outsourcing trends were accelerated.

The Arena Savoy Lecture, which took place earlier this week in the Lancaster Room, was the first since industry luminary Prue Leith took to the lectern in 2007 ahead of the hotel's closure that spring. It reopened last October following a £220m refurbishment.

More than 350 industry figures were in attendance, making it the largest Arena event in the past five years.

The Arena Savoy Lecture >>

Compass Group's operating profit remains flat >>

The future shape of contract catering >>

By Janie Stamford

E-mail your comments to Janie Stamford here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs

Looking for a new job? Find your next job here with Caterersearch.com jobs

[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking