What is contract catering? 

Contract catering is a multi-faceted sector, providing catering services to a whole host of organisations and businesses – from schools and hospitals to workplaces, museums and sports arenas - so the challenges it faces are varied and wide. 

A contract caterer is a company that provides catering services to a business or organisation (its client) for a specific length of time. 

In some cases, services are paid for by the client, such as an education authority or a company, for the benefit of their students or employees. 

Other types of contracts mean the caterer is hired to provide specific services to the public at a certain business. They might be hired to run the café and restaurant at a museum, or the snack kiosk at a football ground. 

Examples of places where contract caterers work include schools; college and university canteens or snack bars; hospitals; workplace canteens; event venues; sports grounds; railway stations and airports. 

For the organisation or business using a contract caterer, the advantage is that they can hand this area over to specialists and focus on their own area of expertise, while caterers who sign contracts with clients have guaranteed business. 

When contracts are negotiated properly, contract catering is a positive scenario for both contract caterers and their clients. Nevertheless, as with any business serving food, contract catering does present challenges. 

What challenges do contract caterers have?   

Rising costs, allergen management, supply chain disruptions and sustainability are some of the biggest and ongoing challenges facing contract catering. 

• Inflation and rising costs are the toughest challenges facing all contract caterers, putting pressure on profitability. Careful menu planning, strategic sourcing, and renegotiating contracts can help mitigate these challenges. 

• Ongoing supply chain disruptions can lead to ingredient shortages and price fluctuations. Diversifying suppliers, building strong relationships with vendors, and maintaining buffer stock can help ensure a consistent menu. 

• In terms of labour shortages, the industry needs to work smarter.  Small steps, such as staggering the start time of shifts can collectively make a difference to the bottom line. Having the right technology in place can identify labour patterns and requirements. 

• Changing customer preferences are also impacting the industry, as customers are increasingly demanding healthier, more sustainable, and ethically sourced food options. Contract caterers need to adapt their menus and sourcing practices to meet these evolving preferences. 

• Sustainability is an issue concerning an increasing number of us, and contract caterers are aware of the need to act sustainably. However, clients can prevent contract caterers from environmental best practices because there is still a lack of understanding about sustainable business practices. The challenge, therefore, is in educating clients to make sustainable decisions in areas such as waste management and sourcing. 
• Embracing technology can improve efficiency and customer experience. However, choosing the right solutions and ensuring staff are trained on new systems can be a challenge. 

How can Access help? 

Access Procure Wizard, our hospitality purchasing software is specifically designed to address the challenges outlined above, helping contract caterers optimise the procurement processes, control costs, and enhance operational efficiency. Here's how: 

• Streamlining procurement - from requisition to invoice payment, saving valuable time and reducing manual errors, it can simplify and automate the purchasing process. 

• Cost control and visibility - having complete visibility into spending patterns is crucial in today's economy. Procure Wizard can also help identify cost-saving opportunities, and negotiate better deals with suppliers through our advanced analytics and reporting tools. 

• Inventory management - optimise your stock levels, minimise waste, and ensure you always have the right ingredients on hand to meet customer demands. 
• Menu engineering - this feature helps create profitable and appealing menus that align with current trends and consumer preferences, while accurately tracking costs and nutritional information. 

Ready to take the next step?  

In this article, we've explored the diverse challenges currently facing the contract catering industry and we've highlighted how technology, specifically purpose-built software like Access Procure Wizard, is crucial for contract caterers to address these challenges head-on. 

If you're ready to take the next step in unlocking the full potential of Procure Wizard or have any questions, watch a demo to discover how Procure Wizard can help your contract catering business thrive.