The corporate catering sector faces a host of challenges, including labour shortages and the Herculean task of making the supply chain more sustainable.
In a recent TrendTalk hosted by Rational, catering industry leaders discussed how they are tackling the challenges and what they are doing to stay relevant and competitive.
Innovation took centre stage in the debate. Markets and demand have changed. There is more remote work, sustainability has become essential for business, and competition from food delivery services, local restaurants, and retail is fierce. The experts agree the catering industry needs to evolve.
The webinar featured:
- Lloyd Mann, Vice President Culinary of Sodexo;
- Oliver Fischer, Director Group Culinary at Gategroup;
- Martin Wolf, Segment Director Catering at Rational;
- Stephan Leuschner, Director of Ghost Kitchens, Culinary Concepts & Broadcast at Rational;
- Carl Jacobs, CEO & Co-founder of Apicbase.
Sustainable goals
For Lloyd Mann, improving “the connection between food and sustainability is critical” not only for Sodexo and the delivery of its own CSR targets but also for the entire sector.
Mann says Sodexo wants to be “a market maker and really lead” in sustainability. He cited proprietary research that the global food services and facilities management company has conducted on sustainable eating programs, sustainable ingredients, and carbon-neutral dishes, plus partner programs focusing on food waste avoidance and sustainable eating.
Mann acknowledged, however, that there remains “a challenge around consumers’ readiness to adapt to climate-friendly dishes.” The answer, he says, is raising awareness.
“We’re kicking off the third year of our Sustainable Chef Challenge,” Mann says. The annual global competition for chefs tasks the competitors with developing tasty dishes with low CO2 emissions. “We’ve got an engaged culinary community, which helps us move that [awareness] along.”
The first carbon neutral solution in contract catering was estimated to save at least 7,296 tons of carbon annually.
Sodexo shows its commitment to incorporating seasonal and local ingredients into menus in expanding the UK’s Carbon Zero program, developed in the UK in 2022. The first carbon-neutral solution in contract catering was estimated to save at least 7,296 tons of carbon yearly and has expanded to seven more countries. The success of these programs, says Mann, is because “the tools, resources and programs support the delivery of the business.”
Leveraging technology for operational excellence
Tools and resources such as the integrated catering software Apicbase supplies to its customers, help operators to produce scalable recipes that can offer a reliable yield.
Carl Jacobs explains how using restaurant data analytics to control and reduce food costs helps operators adopt sustainable practices, manage and prevent waste and prompt environmentally conscious sourcing decisions.
“Our aim is a sustainable foodservice industry,” Jacobs adds. “We help our customers streamline their back-of-house processes, achieve a healthy bottom line, and go for zero waste.”
Apicbase invests significantly in helping its customers achieve operational excellence. It centralises intellectual property (IP) related to recipes and menus, and automates inventory management. The customer’s pre-orders drive the system’s production plans, ensuring the kitchen teams know exactly how much to prepare or order from suppliers, all in ideally aggregated batches. “This approach drives high operational efficiency,” Jacobs states.
The kitchen teams know exactly how much to prepare and order from suppliers, all in ideally aggregated batches.
Food safety and compliance are other pillars for catering companies. They “underpin many of the high-level KPIs businesses set themselves,” says Jacobs.
Implementing software like Apicbase enables foodservice companies to share critical information with their customers, including food provenance, allergen details, nutritional values, and carbon footprints.
They populate customer-facing apps, websites, order kiosks, electronic displays, and staff tablets with comprehensive dietary and ESG-related information with the push of a button.
The software provides answers to managing food waste. “With Apicbase, you are not only measuring waste but also actively preventing it. The goal is not to waste anything. By going for operational excellence throughout the organisation, you will foresee a greener future and a stronger brand,” concludes Jacobs.
Talent shortages and upskilling staff
A greener future still requires talented individuals. “There’s a real shortage of talent,” says Mann. “How do we make sure 16-year-olds are attracted to catering and hospitality? It can be a huge challenge.”
Sodexo answers that by ensuring it is an “employer of choice for chefs.” It also provides comprehensive upskilling resources to develop employees so continually “they can see a future” within the business, says Mann. “What makes us stand out is the diverse aspects of our business. We’ve got a broad spectrum of opportunities for people.”
In 2020, Sodexo launched its Future Food Collective, a collaborative research initiative that brings together Sodexo chefs and key suppliers. Mann says this initiative has been highly successful. It captures the chefs’ passion for food, which helped reinforce a supportive work environment.
Innovation and collaboration for future growth
Gategroup’s Oliver Fisher says passion is also essential for his catering team. “The culinary experience we create has a unique ability to take people on a memorable, sensory journey,” he says.
Indeed, for his company to successfully stay competitive and relevant in a dynamic market, Gategroup “must deliver more than just good value. We believe in partnerships. We want to create a connection in our global culinary community,” he says.
To do that, Gategroup relies on what Fisher describes as essential “support data” from its partner, including Apicbase, to “pioneer the future”. Innovation, therefore, plays a considerable role. “People, processes, and infrastructure are the key. They are the three drivers to be successful,” he says.
“But technology is a tool that has helped us enormously to understand and reduce complexity [in this sector],” he added, citing innovation’s role in “delivering value” to its customers.
Using central production units helped Gategroup separate food preparation from cooking, saving 15-20% in food waste.
Using central production units helped Gategroup “separate food preparation from cooking,” which saved 15-20% in food waste, says Fisher. A further “sustainable path in food production” can be found in Gategroup’s advanced production techniques for traditional processes such as fermentation pasteurisation. Combining a Kaizen lean manufacturing methodology with excellent data allows the operator to execute these techniques “perfectly”. (‘Kaizen’ refers to the philosophy and practice of continuous, incremental improvement in processes, products, or services to enhance efficiency and quality.)
But collaboration remains critical. “We need partners because we can’t do it alone,” says Fisher.
Understanding and adapting to consumer demands
For Jacobs, understanding customers’ evolving demography and how they think is crucial. He says food “is an important part of getting people back to the office” in a post-COVID environment—even for small organisations.
“Companies must showcase their commitment to Environmental, Social, and Governance (ESG) principles to attract employees, including offering healthy, sustainable lunch options. They need to clearly instruct caterers to provide affordable and eco-friendly meals to encourage employees to return to the office,” he says.
Businesses with better cost control can offer more competitive menu prices, attracting customers looking for healthy, sustainable, high-quality food at an affordable price.
Many operators find raising prices easier than cutting costs. However, Jacobs argues that better cost management provides a more durable competitive edge. If you have proper cost control, you can offer competitive prices. This attracts customers looking for healthy, sustainable, high-quality food at an affordable price.
Jacobs warns against engaging in a race to the bottom with pricing. Instead, he suggests that better cost control allows businesses to maintain solid margins while still being the most attractive option for customers.
In conclusion
The great thing about the catering industry, says Rational’s Martin Wolf, is that “it’s constantly evolving. It thrives on reinventing itself.” Wolf believes this reinvention makes the catering industry more visible in a positive way.
Stephan Leuschner repeats the challenges the sector is facing:
- High menu complexity;
- Fluctuation in customer volumes;
- Demand for better, fresher food;
- Fewer qualified staff available;
- Demand for affordable meals.
While this may sound like a tall order, the experts agree it’s not a “massive dilemma.” However, catering managers must work closely with partners to solve the issues.
Embracing innovation is crucial. Operators aiming to be the employer of choice can enhance operations by investing wisely in systems that allow them to focus on their strengths, creating excellent environments where talented, motivated employees can showcase their skills.
In the meantime, it’s important to keep discussing trends and predict where they will take the industry. Knowledge is power. Robust systems and expert partners are available to help catering operators pursue excellence.
2024 Restaurant Industry Report
Read how successful restaurant leaders are tackling challenges in the foodservice industry.
