SpendEdge Forecasts a Spend Growth of Over USD 30 Billion for the Catering Industry
LONDON--(BUSINESS WIRE)--Nov 21, 2019--
SpendEdge, a global procurement market intelligence firm, has announced the release of its Global Catering Industry – Procurement Intelligence Report.
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Global Catering Industry Procurement Intelligence Report. (Graphic: Business Wire)
Improvement and maintenance of quality catering services are being perceived as a talent attraction or retention strategy by enterprises in the corporate sector. This thought will serve as one of the prominent growth drivers in the catering industry and will drive the spend momentum at a CAGR of more than 4% during the forecast period. It has been observed that buyers from the B&I sector typically outsource a large part of their catering services that are required on occasions like formal gatherings, corporate parties, and outbound activities to specialized catering suppliers.
“ B&I is the largest end-user segment within the catering industry, accounting for approximately 45% of total market spend,” says lead SpendEdge procurement analyst Angad Singh.
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Some Insights into the Catering Services Price Trends:
- The cost of procuring in the catering industry is expected to increase through 2022 owing to increasing investments done by suppliers in technology to enhance their offerings and to ensure absolute adherence to the stringent food-safety regulations.
- Labor costs account for 40%-60% of the cost of operations for catering services suppliers. Labor costs are expected to increase year-over-year globally during the forecast period, ultimately impacting the costs of services in the catering industry.
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What are the scopes of optimizing procurement spend in the catering industry?
The catering services price trends indicate a substantial hike in suppliers’ overall expenditure which will be ultimately compensated by buyers in the form of excess procurement spend. Strategic selection of catering services suppliers will be the key to unlock avenues where buyers can compromise on their procurement spend.
- The fixed fee pricing model is one of the most adopted pricing models in the catering industry as it lets buyers know the total cost prior to the announcement of the contract. However, the hybrid pricing model displays the highest potential as it helps the buyers in optimizing budgets, provides clarity in the pricing structure, and ensures high-quality results.
- Buyers are advised to engage with suppliers who offer IFM services. Such suppliers will increase the opportunity for the buyers to bundle the procurement of multiple services.
- Engage with suppliers who have capabilities such as logistics and defined operational costs will help buyers to ensure on-time delivery of the products while getting off-premise catering services.
Time is money in business and it is ticking. Access to SpendEdge’s procurement platform is free and instant where you can get daily insights into the best supplier selection and negotiation strategies with the best suppliers in the catering industry.
Some of the key topics covered in this report are:
- Catering market spend segmentation by region
- Total cost of ownership analysis in the catering industry
- Regional spend opportunity for catering services suppliers
- Catering services suppliers cost structure
- Catering services suppliers selection criteria
- Catering services suppliers under coverage
- Procurement best practices
- Category management objectives
- Cost saving opportunities in the catering services industry
Free sample of reports that you may like:
- Global Smart Building Technology Market - Procurement Intelligence Report
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SpendEdge shares your passion for driving sourcing and procurement excellence. We are the preferred procurement market intelligence partner for 120+ Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence reports and solutions. To know more, https://www.spendedge.com/request-free-proposal
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INDUSTRY KEYWORD: FOOD/BEVERAGE RETAIL
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PUB: 11/21/2019 09:30 AM/DISC: 11/21/2019 09:30 AM