Staff canteen operator serves up profits after return to work

THE world’s largest catering company has hailed the return of workers after more employers spending on staff canteens caused profits to almost triple.

Compass Group said the shift back into offices was accelerating in the UK, but staff had been slower to return than in the US. Compass provides catering for office canteens, schools, hospitals and care homes in 40 countries.

Dominic Blakemore, chief executive, said on average people were now in the office more than three days a week which was “increasing quarter on quarter” and getting closer to the pre-pandemic level of around four days a week.

He said: “We have got clients that, in an uncertain economic environment, are keener than ever to have their colleagues in the office together and we do believe that we will see an increasing presenteeism [among staff ] as concern around job security starts to play out.”

The rise in spend on office canteens propelled revenues 43pc higher, surpassing pre-pandemic levels to hit £25.5bn in its latest financial year to the end of September. Profits ballooned by 175pc to £1.5bn. Compass said it was expecting profit to grow more than 20pc in its next financial year, as more businesses start outsourcing their canteen operations to cut their own costs.

The company said its food cost inflation was at around 12pc in Europe, which it was working to offset by switching up its menus – something it said it was more able to do than restaurants which are more likely to have fixed items they cannot take off.

Mr Blakemore said the company was not immune from pressures over supplies of turkey brought about by avian flu, which has prompted concerns over a Christmas dinner squeeze.

He said: “It’s one of many issues affecting the supply chain, so we have to have conversations with our clients as to what they want and what’s affordable. We haven’t cancelled turkey or anything our clients want, but they have cost implications and we can provide alternatives.”