EP Insights & Action

INSIGHTS THE LITMUS PARTNERSHIP
some countries have elements of European
business culture although labour laws in most
are poor compared with Europe.
Economic giants like China and India
have shown strong growth and the potential
for further outsourcing is high. China has no
specific regulations relating to workplace
catering but blue collar catering tends to be
heavily subsidised. However, in big cities
employees pay a larger amount of the cost,
and food preferences are diverse. Longer
term, subsidies are likely to reduce as the
Chinese economy continues to expand
and people become better off. Elsewhere
in the region, in India, employers of over
250 people must have a staff restaurant by
law. This potentially provides a wealth of
opportunities for global caterers as fledgling
companies and the Indian economy grows.
In spite of the obvious challenges, in
theory at least, all global organisations can
benefit from a common catering policy and
a consistent approach to management and
reporting including improved, shorter lines
of communication, consistent budgeting,
planning and performance measurement
– all enabling easier identification and
benchmarking of costs and trends across
their estate. However, while a global supplier
agreement can deliver significant benefits, a
‘one-size fits all’ model for catering around
the world is highly unlikely to work. Instead,
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companies need to focus on establishing a
common framework and set of guidelines,
which allow for a degree of local autonomy
to manage local needs. Additionally, global
contracts require the development of strong
supply partnerships, where relationships are
based on more than just price and embrace
the benefits of true collaboration.
Traditional contract deals are often based
on self-interest achieved at the expense of
others. To work effectively, both clients and
contractors need to move away from this
outdated thinking to achieving a contract
model based on true win/win principles,
where all parties have a vested interest in
making the relationship work. This can only
happen when all parties have established
objectives that are fully aligned. Clearly
these principles should be the basis for
all outsourced contracts but it takes on
even more importance when dealing with
operations, which may be thousands of
miles apart.
Looking ahead, change in global
outsourcing practice and contract
management will continue, initially in the
mature markets but longer term in other
parts of the world as countries play catch up
and even overtake more established markets
– cost pressures, environmental issues,
skill shortages and corporate downsizing
will be some of the bigger challenges. Very
importantly, FM companies will develop a
better understanding of catering services and
an appreciation that they are different from
other services and require a unique approach.
In conclusion, foodservice caterers have
generally been highly responsive to changing
markets and trends but will need to find
even more innovative solutions to meet the
needs of a shrinking world and ever more
demanding clients and customers. The right
solution today will not necessarily be the
right solution tomorrow.
Ultimately, global catering contracts can
provide the perfect foundation for sharing
best practice, fast tacking efficiencies learned
from more mature markets and engaging
with local management in ways that help
them play a part in developing the right
catering service for their employees.
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