Firm in school meals row paid £27m over claims of ‘overpriced, inedible food’
THE catering firm embroiled in a row over ‘ disgraceful’ school meals has paid out £27 million to settle claims it served overpriced, mouldy food to children in America.
Bosses at Chartwells came under attack last week after campaigning Manchester United footballer Marcus Rashford shared a picture of a paltry food parcel sent to parents of children on free school meals to cover at least five days of lunches.
But the scandal – which Boris Johnson called an ‘insult to families’ – is not the first time the catering giant has faced controversy for the food it supplied.
The catering giant, part of the British multinational Compass Group, previously faced two US state investigations over its school meals service.
Almost six years ago, it agreed to a $19.4 million (£14.2 million) settlement with the District of Columbia after court allegations that it had fraudulently inflated prices and served ‘spoiled meals’ in schools, including mouldy and ‘otherwise inedible’ food.
Chartwells strongly denied the claims, but said it agreed to the multi-million-dollar settlement to resolve the contractual issues.
In September 2012, its parent company agreed to an $18 million (£13 million) settlement with New York State over alleged overcharging, which the firm blamed on a ‘misinterpretation’ of a contract. Chartwells again came under fire last summer for providing poor quality meals to New York University students under quarantine.
After videos showing mouldy bagels and meagre servings went viral, the university said it was ‘disappointed’ at Chartwells’ handling of the meals service.
The Compass Group, which has more than 550,000 employees in 50 countries, is one of the main companies providing school meals in the UK, with contracts worth an estimated £346 million over the past four years, according to data firm Tussell. The group had global revenues of nearly £20 billion in its last financial year, making £294 million in operating profits – although its performance has been hit by the Covid pandemic.
Chief executive Dominic Blakemore was paid £ 1.2 million last year, compared to £4.7 million the previous year. Charlie Brown, who heads the Chartwells division in the UK, is not on the group’s board and his pay is not disclosed.
Following the furore over the meagre food parcels, shareholders turned on the company, demanding future packages were ‘fit for purpose’ and ‘restore faith in its business’. In response, the Compass Group said: ‘ The events of this week do not represent our business, our values, or the vital work our people do supporting schools and other essential services across the UK during the pandemic.
‘Of the 18,000 food parcels we provided, around 500 did not meet the Government’s specification, and we have put steps in place to make sure this can’t happen again.
‘In addition, we are providing free breakfasts to all children currently receiving a Chartwells lunch parcel from January 25 until schools reopen, and have also offered these pupils free lunch parcels during February half term.’
Labour MP Kevan Jones, who has campaigned for better free school meals, said: ‘The Government needs to step up and urgently look at this entire sector.
‘ If, in a wealthy country like ours, we cannot afford to provide children with a decent meal, then something is seriously wrong.’
The Compass Group added: ‘Chartwells provided 100 million meals across 25 markets in 2019. These are isolated incidents which do not reflect our high standards.’