Focus on Foodservice
I’ve found over the years that many food, drink and agri businesses downplay the relevance of foodservice to their future strategy. Retail usually catches the eye with its large volumes, easily understood supply chain and the ability to measure and monitor sales performance in store. Foodservice by contrast is complex, at times hard to understand, data “dark” and messy. We’ve been working in the space for 15 years now, helping firms unlock significant opportunities and volume.
Foodservice is a really lively and interesting sector, full of absolute characters and at £102.9 billion, it offers huge potential.
Foodservice is less a unified sector more a patchwork of linked and interwoven sub-channels including hotels, travel, pubs, restaurants, high street cafés, and public sector institutions. Many people spend entire careers in a small part of a sub channel and still don’t claim to fully understand it!
Our work supporting firms in developing the right strategy for foodservice has shown me that it’s a sector brimming with opportunity as seen by the consistent year-on-year growth . I believe the space presents significant opportunities for brands and suppliers, if they know where to look and how to engage.
To whet the appetite, I have sketched out some of the key dynamics below – let me know if you’d like a chat about the opportunities in any more detail.
A Market of Scale and Variety
Pubs command the largest share of the UK foodservice market at 24%, followed closely by restaurants and fast food operators, which each account for around 18%. These high-volume environments are diverse in their needs, for instance fast food thrives on low costs and speed, whereas pubs and restaurant chains present more scope for premium and value-added products.
The restaurant landscape alone is home to more than 28,000 outlets, with well-known brands like Nando’s leading the way with over 470 locations. The fast food category is even larger, comprising over 41,000 sites, where McDonald’s reigns with 1,435 outlets. Meanwhile, the UK’s 43,000+ pubs, many of them managed or branded by giants like Greene King, underscore the importance of scale and operational efficiency in this arena.
Key Trends Shaping the Sector
The modern foodservice landscape is being reshaped by several influential trends:
🌏 Global Palates: Consumers are increasingly seeking out global cuisines and more authentic dining experiences, pushing operators to expand and diversify their menus.
🥗 Health and Nutrition: Regulation around high fat, salt, and sugar (HFSS) is tightening, prompting a move toward cleaner labels and healthier alternatives.
🌱 Plant-Based Power: The plant-based movement continues to gain traction, fuelled by sustainability concerns and the rise of the flexitarian consumer.
🧑🍳 Transparency in Menus: Calorie labelling regulations for chain restaurants are having a tangible impact, with menu transparency now a critical factor in consumer choice, including calorie labelling on menu.
Spotlight on the Public Sector
While less glamorous than the high street, the public sector is one of the most significant volume drivers in UK foodservice. Over 2.6 billion meals are projected to be served across this sector in 2025, equivalent to approximately 7 million meals a day. Schools lead the pack in terms of outlet numbers, followed by care homes.
- Schools: Account for 1.175 billion meals annually.
- Care Homes: Serve around 650 million meals per year.
Despite the sector’s sensitivity to cost, there are clear opportunities for premiumisation, especially within private care homes, academies, and university catering. There is growing demand for locally sourced products, strong provenance stories, and event-driven, nostalgic offerings.
In care homes, nutrition is paramount. Caterers must provide fortified meals, texture-modified diets, diabetic-friendly options, and accommodate religious and cultural dietary needs.
The Role of Contract Catering
Contract caterers such as Compass (with £2.33bn in revenue), Sodexo, and SSP are major players in foodservice volume. Gaining traction with these companies often means navigating both the operator’s internal team and their external procurement partners such as Foodbuy and Equinox, making relationships and insight critical to success.
Cracking the Supply Chain
For suppliers looking to break into foodservice, the wholesale route remains the most important. The UK wholesale market is valued at £34bn, with £13.3bn dedicated to foodservice and catering. Key wholesalers include Booker, Costco, Brakes, Bestway, and Bidfood.
A robust foodservice strategy hinges on a dual push-and-pull approach:
- Push: Engaging directly with end operators to generate demand for your product.
- Pull: Ensuring availability through wholesalers and fostering strong distributor relationships.
The supply chain often includes several layers of decision-makers from wholesalers and operators to third-party buying groups. Identifying and influencing the right stakeholders is vital to not only get listed, but also to maintain long-term presence in this fast-moving market.
If you’re looking to take your exploration of foodservice further, please get in touch, we’d be delighted to help.
