The contract catering market - France (2024)

1.2 The European market

The European foodservice market was valued at $**.** billion in **** and is expected to reach $**.** billion by ****, with a CAGR of *.**% over the forecast period.

Trends in the size of the European foodservice market Europe, ****-****, billions of dollars

1.3 French market recovery in 2023

In France, an average of *.* billion meals are served each year in institutional catering, according to the Syndicat national de la restauration collective (***). [***]

Growth in the size of the French contract catering market France, ****-****, in billions of euros Source: ****

The French contract catering market has evolved significantly over the ****-**** period. Overall, the sector's sales show an upward trend until ****, rising from *.** billion euros in **** to *.** billion euros in ****, representing growth of *%. However, in ****, a notable decline in sales was recorded(***), probably due to the impact of the COVID-** pandemic, which led to temporary closures of establishments and a drop in patronage. Despite this decline, the market showed signs of recovery from ****, with sales up on **** (***). But it was not until **** that the market returned to its pre-health crisis size, with sales reaching *.** billion euros. This recovery testifies to the resilience of the foodservice sector and its ability to adapt to new economic and social realities.

1.4 The impact of COVID-19 on the foodservice market

Measures affecting the catering sector

The main measures linked to the epidemic that paralyzed the catering sector were laid down by the decree of March **, ****, which banned the reception of the public for several categories of activity, including "restaurants and drinking establishments". Catering, whether traditional (***), was strongly affected by these measures

The restaurants were authorized to reopen on June *, ****, implying that the containment period lasted around two and a half months. [***] In the future, many players in this sector fear a second wave of strict restrictions on traffic and business activities.

Consequences of the restrictions in force

The coronavirus epidemic has hit the restaurant market hard, making it one of the hardest-hit sectors, along with the hotel and tourism industry. In fact, restaurants and cafés account for annual sales of ** billion euros in France.

According to a study by OFCE, the period of confinement in France led to an **% drop in demand in the restaurant and accommodation market, which accounts for *% of real household consumption.

The restaurant sector saw its sales fall by *% in January, *% in February, **% between March * and **, and **% between March ** and **, the latter figure corresponding to the start of the lockdown. However, while the fast-food and hotel-restaurant ...

2.1 Demand based on 4 main sectors

The different foodservice sectors France, ****, %, %, %, %, %, %, %, %, %, %, %, % Source: ****

Healthcare and medical-social catering represent the largest share of the foodservice market, with **%, underlining the importance of food services in healthcare and medical-social establishments. School catering is the second largest sector, with **%, underlining the scale of food services provided in educational establishments.

On the other hand, company catering and prison and military catering represent relatively smaller shares, at **% and **% respectively, indicating a lower prevalence of these services in these specific environments.

These data testify to the diversity of the sectors covered by contract catering in France, reflecting the varied needs for food in different social and professional contexts.Different types of establishments can be found in each sector:

Sector Type of establishment School catering Nursery Kindergarten Primary Middle school High school University Medical and social catering Clinic Hospital Ehpad social establishments (***) Prison and military catering Penitentiary centers Military bases Military hospitals Vacation centers religious establishments Corporate catering Administration Company

2.2 Typology of demand

Breakdown of French people who have at least one contact with mass catering France, ****, %, %, % Source: ****

The results in the graph above show that **% of French people have had at least one contact with foodservice, while **% have had no contact at all. This breakdown underlines the extent of the impact of foodservice on the daily lives of the French, with almost half of the population having had some interaction with the sector in the course of their daily lives.

This significant presence underscores the important role that foodservice plays in French society, whether through school canteens, company restaurants or other foodservice establishments. This data provides invaluable information for players in the sector to better understand the reach of their potential audience and adapt their strategies accordingly.

Type of collective restaurant frequented France, ****, % of total Source : Ifop The results show that the majority of respondents declare that their children eat lunch at their school canteen, representing **% of the population surveyed. Next, **% say they eat lunch at their company canteen, followed by **% who are students eating lunch at the canteen or CROUS. Finally, **% of respondents indicated that their parents in an EHPAD (***) benefited from meals served by the establishment . This breakdown highlights the diversity ...

2.3 New customer expectations

The catering industry in France is undergoing a major transformation, in particular as a result of changes brought about by the health crisis and changing working patterns. Users' expectations of their lunch break are being redefined, highlighting four main areas of interest:

*. Sharing and conviviality at work : Employees want to experience a moment of conviviality and sharing with their colleagues during their lunch break. The health crisis has underlined the importance of social interaction at work, making the lunch break a privileged moment for forging professional links.

*. Healthy and responsible eating: Healthy and responsible eating has become a priority for many users. They are looking for balanced meal options, made from quality, local and seasonal ingredients. Foodservice must therefore offer a diversified culinary offering, with an emphasis on freshness and provenance.

*. Flexibility of schedules: Workers aspire to greater flexibility in the management of their lunch break schedules, in particular to adapt to new personalized working patterns, such as telecommuting. They want to be able to choose the time that suits them best to have their meal.

*. Adapting to telecommuting: Foodservices must also respond to the needs of telecommuting employees by offering suitable solutions for their working days ...

3.1 Value chain

Source: ****

Contract caterers buy from food manufacturers, but also directly from local producers and farmers. After procurement, foodservice companies can prepare the meals for distribution to users in various establishments: companies, hospitals, schools, public administrations...

3.2 Number of companies and number of employees

Change in the number of establishments registered under activity ****A "Contract catering" and under activity ****B "Other food services" France, ****-****, in number of establishments Source: ****

The data in the graph above reveal an overall downward trend in the number of establishments over the years, from *,*** in **** to *,*** in ****, a decrease of *.*%.

This decline may be influenced by various factors, such as changes in the economic landscape, company mergers or acquisitions, or regulatory developments in the foodservice sector. I

Change in the number of employees registered under activity ****A "Contract catering" and activity ****B "Other food services" France, ****-****, in number of employees Source : Urssaf The data reveal a general downward trend in the number of employees over the ****-**** period, with an evolution of -*.*%.It is interesting to contextualize these figures in the broader context of the staff shortage observed in the foodservice sector . The shortage of skilled labor in the foodservice industry has been a persistent challenge in recent years, and it is possible that this is also having an impact on contract catering. Variations in the number of registered employees can therefore be influenced not only by the usual fluctuations in demand and economic changes, but also ...

3.3 A concentrated market

Source: ****

The contract catering market is a concentrated one, with the top three major players on the French market (theElior,SodexoFranceandCompasstogether hold amarket share of over **%.

Top ten CRSs by number of meals served France, ****, in millions of meals Source: ****

Sodexo France stands out as the company distributing the most meals with a total of ****** thousand meals served, followed by Compass Group with ****** thousand meals. Other companies such as Restalliance, Convivio, Newrest restauration, Vitalrest, Restoria and Serenest have meal volumes ranging from **,*** to *,*** thousand.

Data for Elior was not available.

Latest M&A activity

M&A activity in the sector remains high, contributing to market concentration. Below is an overview of activity since ****:

An overview is available here.

3.4 Different management methods

The two types of restoration management

Direct management is the leading method of catering management in France (***). In this case, the establishment or local authority takes charge of the entire management process, including management, purchasing and meal preparation. This approach offers total control over meal quality, and makes it easy to adapt to the specific needs of guests. However, it requires substantial investment in terms of infrastructure, equipment and qualified personnel. On the other hand, in the case of non-direct management (***), we speak of conceded management or delegation to a service provider . The service provider may be from the public or private sector, and several operating methods are possible: on-site kitchens, central kitchens and satellite restaurants. In contrast to direct management, the establishment does not take responsibility for the entire management of the restaurant in the case of concession management. This responsibility is delegated to a public or private service provider, who handles all catering-related activities, from meal preparation to supply and personnel management. This type of management offers professional expertise, reduces administrative burdens for the establishment and provides greater operational flexibility. As a result, the beneficiary community can concentrate on other activities without having to worry about the day-to-day management ...

3.5 The challenge of food waste

According to ADEME, the average amount of food wasted in France's catering sector is around *** grams , equivalent to an average cost of ** centimes per guest per meal. In times of inflation, reducing food waste becomes a crucial lever for controlling production costs, while meeting the requirements of the EGalim law (***).

Average food waste in foodservice per person per meal France, ****, in g Source: ****

The above data show a significant variation in food waste depending on the type of establishment. Hospitals and EHPADs show the highest levels of waste, with *** g and *** g per person per meal respectively. Elementary schools, middle schools and high schools show slightly lower figures, whilebusinesses record the lowest level of waste, at just ** g per person per meal .

These data highlight the importance of efficient management of food resources in the various catering sectors. Healthcare establishments and facilities for the elderly can benefit from targeted strategies aimed at reducing waste, notably by adjusting portions and improving stock management. The lower figures observed in companies indicate more efficient management practices.

Some food waste figures by type of canteen:

Where is the food waste?

Source: ****

How can the catering industry combat food waste?

Combating food waste in the foodservice ...

4.1 Companies with different positioning

In the foodservice market, each company develops its own strategy and promotes its own values .

As a result, the offers presented to customers vary from one company to another. Some companies emphasize personalization and creativity, while others focus on ingredient traceability and sustainable development. In addition, sourcing from local suppliers and using fresh, seasonal and organic ingredients are aspects that can also differentiate the offerings of the various foodservice players.

This diversity of approaches reflects the desire of companies to meet the varied needs and expectations of consumers, while adapting to emerging trends in the food market.

The sector's major groups develop their solutions according to the type of clientele they target, offering a varied range of meals for companies, educational establishments and healthcare establishments.

4.2 Mass catering offers more meals prepared with organic and sustainable products

Percentage of foodservice establishments having introduced organic products to their menus France, ****, in Source: ****

In ****, **% of collective catering establishments reported offering organic products, *% more than at the end of **** and *% more than in ****. What's more, of these companies, **% are private and **% are public institutions. [***]

Gazette-santé-social reports that organic products served in collective catering are **% of French origin and **% of regional origin.

Restaurants offering organic products, by type of restaurant France, ****, number of restaurants (***) Source: ****

The data show that among the **** restaurants surveyed, organic products are most widely found in schools, with *** establishments .

Proportion of organic food products in purchases by different catering sectors France, ****, % (***) Source: ****

The data in the graph above reveal significant variations in the adoption of organic products between different sectors. Specifically, the education sectorhas the highest percentage of organic purchases (***).

By contrast, the medico-social, other and health sectors show lower proportions of organic purchases.

This breakdown highlights differences in the procurement priorities and practices of different catering sectors, which may be influenced by factors such as institutional policies, budget constraints and consumer preferences.

Proportion of sustainable and quality food products in the purchases of different foodservice sectors France, ****, % (***) Source : agriculture.gouv Sustainable and quality food products refer ...

4.3 An increase in the price of catering meals

Other catering services" output price index France, ****-****, index (***) Source: ****

The graph above shows a fairly pronounced upward trend , with the index rising from ***.* in the first quarter of **** to *** in the fourth quarter of ****.

This increase in production prices can be explained by several factors. At the end of ****, foodservice operators expressed concern about rising inflation. Rising food, electricity, heating and wage costs have had a significant impact on production costs. This inflationary pressure has led companies in the sector to call for price increases to offset losses and maintain profitability.

Renegotiations of contracts with local authorities, notably for school canteens, have led to rate increases in many regions, averaging*% . Some players have also chosen to review their procurement strategies, as in Libourne in Gironde, where the municipality has decided not to increase tariffs for the time being, but has had to scale back its organic food ambitions due to budgetary constraints. [***]

Despite signs of stabilization since June ****, the sector is still facing inflation levels unprecedented in decades, suggesting inevitable tariff adjustments for consumers.

Canteen consumer price index France, ****-****, index (***) Source: ****

Canteens are part of the collective catering sector, so it's interesting to analyze the rise in consumer prices ...

5.1 Current regulations

French regulations governing mass catering are part of the food paradigm. An overview can be found here and a summary below:

Food hygiene standards

Regulation (***) no. ***/**** governs the hygiene of foodstuffs.

Decree n°****-**** of September **, ****: the Commission is also responsible for applying article L. ***-* of the Consumer Code on the hygiene of food products and foodstuffs other than products of animal origin and foodstuffs containing them.

The Ordinance of October *, **** on health rules applicable to the retail trade, storage and transport of food products and foodstuffs other than products of animal origin and foodstuffs containing them.

Nutritional quality of school meals

Decree no. ****-**** of September **, **** on the nutritional quality of meals served in school catering.

Decree no. ****-*** of January **, **** on the nutritional quality of meals served in the catering services of social and medico-social establishments.

The law on agriculture and food (***), adopted in October ****, sets a target of **% local products or products with a sign of quality in collective catering, including **% organic products from January *, ****.

5.2 The Egalim law of 2018 and the Climate and Resilience law (2021)

The EGAlim law , enacted in **** and supplemented by the Climate and Resilience law in ****, introduces provisions aimed at improving the quality and sustainability of meals served in collective catering.

Prior to January *, ****, these obligations mainly applied to public service collective restaurants:

They included the use of at least **% sustainable and quality products, including **% organic produce, as well as the introduction of vegetarian menus and measures to combat food waste.

from January *, ****, new requirements come into force.

Collective restaurants must now include at least **% sustainable and quality products for the "meat" and "fish" product families, and this rate rises to ***% for state collective restaurants.

In addition, measures concerning the sourcing and diversification of proteins are extended to all canteens, including those of private companies.

5.3 The anti-waste law for the circular economy (AGEC law)

The anti-waste law for a circular economy aims to bring about an in-depth transformation of our system, with its *** articles targeting all forms of waste. Its aim is to move from a linear economy, based on production, consumption and disposal, to a circular economy.

Structured around five key areas, the law aims to eliminate disposable plastic, better inform consumers, combat waste and promote solidarity-based re-use,combat programmed obsolescence, and improve production practices.

Obligations that apply specifically to foodservice operators include: banning single-use plastic utensils, reducing food waste, promoting donations to associations, and preserving surplus food that can still be consumed.

6.1 Company segmentation

Source: ****

• Compass Group France
• API Restauration
• Dupont Restauration
• Restalliance
• Bolk
• Sodexo France
• Sogeres
• Arpège Restaurants (Elior Groupe)
• Ansamble (Elior Groupe)
• Restau'co
• Bertrand Groupe
• Scolarest (Compass group)
• Vitalrest
• Mille et un repas
• L'Alsacienne de Restauration
• Restauval
• MRS (WSH group)
• Serenest
• Armor Cuisine (Dupont Restauration Groupe)
• Bourgogne Repas
• Restoria (Unigrains)
• Refectory (Carrefour Groupe)
• Restauria
• Elior Groupe
• Acna (Servair Groupe)
• Servair