Knowing WHAT CUSTOMERS WANT & HOW TO MANAGE YOUR CATERING BUDGETS are never more important than today, heading into the festive season; demand for workplace hospitality rising (around labour shortages and soaring food price rises). What must you in FACILITIES AND PROCUREMENT be mindful of?
- Headlines| According to this month’s national news, the cost of living is increasing at its fastest rate in 40 years, largely as a result of rising food and energy prices and the Bank of England has increased interest rates to 3%, the biggest hike in more than three decades.
- Definition of Inflation | For example, if a bottle of milk costs £1 and it goes up to £1.03 a year later, then annual milk inflation is 3%.
- Inflation Rate | To come up with an inflation figure, the Office for National Statistics (ONS) keeps track of the prices of hundreds of everyday items. This is known as the “basket of goods”.
- Goods Inflation | According to the ONS, the CPIH goods annual inflation rate increased to 14.8% from 13.2% September.
- Workplace Wages | According to official figures, average wages, not including bonuses, rose by 5.7% in the three months to September 2022, compared with the same period in 2021. Wages for people working in the private sector increased by 6.6%, compared with 2.2% for those in public sector jobs. But overall, once inflation is taken into account, average pay actually fell by 2.7%.
TOP TEN TRENDS TO HELP TACKLE INFLATION THROUGH WORKPLACE CATERING, ENTICE CUSTOMERS TO “STEP INTO CHRISTMAS” WITH THEIR EMPLOYERS WHILST MANAGING YOUR CORPORATE BUDGET
- FOOD PRICES | UK grocery prices have gone up 10.2% compared to last November, as inflation slows.*1
- EGGS-PENSIVE | The price of eggsin the UK is rising fastest across the UK’s 5 leading grocery retailers.*1
- CUT BACKS | Brits have reduced their purchasing in seven out of nine categories.*2
- LUXURY BRANDS | 7 out of 10 Brits are buying less premium or luxury food.*2
- CHEAPER BRANDS | 2% of Brits are switching to cheaper F&B brands.*2
- CHEAPER CUTS |4% of Brits are choosing cheaper foods i.e. cheaper cuts of meat.*2
- FOOD-TO-BUDGET |2% of Brits sticking to a budget when they go to a supermarket.*2
- ALTERNATIVE SHOPS | 4 out of 10 Brits are switching to cheaper shops, those shopping at Aldi and Lidl increasing to 39.1%.*2
- CRISPS & SNACKS |3% of Brits are switching crisps/snack brands.*2
- CEREALS/BISCUIT/SWEETS |1% of Brits are switching both cereals and biscuit/sweet brands.*2
- MORE COFFEE | Over 50% of Brits drank more coffee while working from home during the pandemic.*3
- MORNING COFFEE | The average time for a Brit to drink their first cup of coffee is 9:01 am. *3
- COSTS | Costa is the most popular coffee shop chain in the UK. *3
- FREQUENCY OF VISITATION | 80% of people that visit coffee shops visit at least once a week.*3
- MILLENIALS | Millennials are the most likely generation to visit coffee shops.*3
- PRICE OF COFFEE | Brits pay on average £2.75 for a coffee shop cappuccino.*3
- HOME COFFEE | 73% of coffee prepared at home is instant, Brits spend c.£16 p/m on coffee at home.*3
- COFFEE MACHINES | 39% of Brits have a coffee machine at home.*3
- TEA | The same number of people consume coffee every day as those that drink tea.*3
- POPULAR COFFEE | Five times as many cups of takeaway coffee are sold compared to takeaway tea.*3
*1 – The Grocer | Key Value Items (KVI) tracker monitors prices and promotions on circa.200 items across 10 categories, inc. own label wholemeal bread and tinned tomatoes, and branded items like Kellogg’s Corn Flakes and Coca-Cola, tracking in up to seven retailers (Aldi, Asda, Lidl, Morrisons, Sainsbury’s, Tesco and Waitrose).
*2 Attest | Attest’s survey of 1,000 working-age UK consumers finds grocery shoppers are keeping a tight rein on their spending, with 42.3% sticking to a budget when they go to the supermarket. Consumers have reduced their purchasing in seven out of nine categories.
*2 Coffee Affection | CA blog about everything coffee. Gear, beans, types of roasts, and all the new inventions that are introduced to the industry every year. They blog daily, and constantly try to up game by following other blogs, news, and YouTubers. They publish multiple pieces each week.
CONTACT US TODAY for 100% independent eyes on your catering to support your facilities and procurement teams to manage YOUR budgets:
Tracey Fairclough | Managing Director & Founder