Within all this, the role of the food supplier is crucial because of the central role of food within the contractor's offer. However, food has fallen over the last 10 or so years from 40% to 35% as a proportion of total contractor costs.

The pressure is on the food manufacturer in the contractor/supplier relationship. Two routes are perhaps open to the manufacturer: to place only as much reliance on the contract catering sector as can be justified by the available margin. The other route is to find ways to improve margins, for instance by developing additional services of value to operators or by becoming sufficiently supportive and creative so as to become a “must have” partner to contract catering customers.

Change in Importance of Food Share of Total Costs

And suppliers do have something to offer. To take just one example. In their need to compete with the high street, contractors have to develop – and quickly – the skills that many of their high street competitors already possess. In this, the role of snacking or impulse plays a hugely significant role. And it is often unknown territory for the contractor who is unused to dealing with (for him) low margin, but highly branded items.

Manufacturers of impulse products know from their retail experience what needs to be done and are (or should be) bringing this expertise to bear in their relationships with their contractor customers.

It is up to each supplier to identify and implement beneficial win-win strategies that build on their own core strengths and the needs of their contract catering customers.

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