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Summary of our market study
The contract catering market, which includes the preparation and distribution of meals within companies, communities or public institutions, has undergone significant changes as a result of the COVID-19 crisis. Before the pandemic, the global market was expected to grow at a CAGR of 5.5% between 2018 and 2023, reaching 264 billion euros. However, the rise of telecommuting has had a negative impact on demand, particularly in corporate catering. With fewer employees making regular visits to company canteens, the sector is forced to adapt by offering new services such as deliveries.
Major players such as Sodexo and Compass Group hold significant market shares, accounting for over 50% of the sector's sales in Belgium. Faced with the challenges of the pandemic, companies are resorting to strategies such as winning public contracts, mergers and acquisitions, diversification into event catering and delivery services. The trend towards "responsible" and "sustainable" collective cooking has also gained momentum, with organic, local and waste-reduction practices. Unfortunately, despite the sector's ability to adapt, the slowdown in 2020 was brutal, with a drop of almost 40% for "caterers and other food services" as a whole, indicating the severe blow suffered by the industry as a result of COVID-19.
Changing dynamics and new challenges in the Belgian contract catering market
The Belgian contract catering market, which encompasses the preparation and distribution of meals within companies, communities or public institutions, has undergone significant changes and faced new challenges in recent years. The market caters for a variety of sectors, including corporate catering, healthcare facilities and educational establishments, each with distinct needs and drivers. Demand is driven by a combination of factors, including employee lunch habits, telecommuting trends and an aging population. In Belgium, the contract catering market has historically shown a preference for quick lunches, with a large proportion of employees opting for company restaurants or preparing their meals at home.
Nevertheless, the widespread practice of bringing home cooked meals and the generous granting of meal vouchers in the country often encourage employees to abandon company canteens in favor of off-site restaurants or takeaway services. The rise of telecommuting, particularly accentuated by the COVID-19 crisis, poses a major threat to the corporate catering segment, as the frequency of on-site lunch use declines. Regions with large numbers of teleworkers, such as Brussels, are the hardest hit by this change. As Belgium moves towards a hybrid working model, corporate catering services are being forced to reinvent their business models to remain relevant. Belgium's aging population is driving up demand for catering services in healthcare facilities. With the proportion of the population aged 65 and over expected to reach between 20 and 21% by 2025, and up to 26% by 2050, the need for catering services in long-term care facilities is set to increase proportionately.
Despite evolving trends and demand drivers, the contract catering market has seen a steady decline over the past decade. The average annual decline in the number of companies and employees in the sector has been around 6.4% and 1.3%, respectively. The market, valued at around 860 million euros, is dominated by leading international players such as Sodexo and Compass Group, which together account for almost half of the sector's sales. The sector is also impacted by price trends, with an average increase of 1.6% per year. The costs associated with meals in educational and healthcare establishments often include subsidies or form part of the total cost of accommodation, while company restaurants generally benefit from partial subsidies from the company. This dynamic is changing as companies seek more commercial models in response to reduced corporate contributions.
The trend is towards more commercial models in response to reduced corporate contributions: Focus on the leading contract catering companies
In the dynamic field of foodservice, several heavyweights and a multitude of challengers and smaller entities shape the competitive landscape. Here, we take a look at the key companies that are playing a decisive role in the sector's evolution.
- Sodexo is a key leader, not only in Belgium, but worldwide. This French-born multinational spreads its tentacles across a variety of sectors, with a significant proportion of its business coming from the healthcare sector, where it manages the culinary needs of hospitals and retirement homes. One of the hallmarks of Sodexo's success is the diversification of its offering, which goes beyond foodservice to encompass a wide range of facilities management services, reflecting a multi-functional strategic approach.
- UK-based Compass Group is a strong competitor. With a foothold that extends into corporate catering via its Eurest brand, Compass demonstrates a deep presence in schools and healthcare facilities under the Scolarest and Medirest banners respectively. The company's revenue streams are further strengthened by its interest in event catering through entities such as Gourmet Invent, underlining its versatility and adaptability in various catering fields.
- Aramark occupies a prominent place among leading entities, particularly strong in the healthcare and corporate catering sectors, notable for employing a large workforce to deliver its services across Belgium.
- The ISS Group, based in Denmark, juggles a unique position by not focusing exclusively on catering, but positioning itself as a comprehensive provider of facility services that also includes foodservice in its portfolio. True to its name, Integrated Service Solutions, ISS aims to provide integrated solutions where catering is part of a wider service experience.
- Prorest Catering, as a subsidiary of the Dutch Facilcom Group, brings regional expertise and focuses on the outsourcing of facility services such as cleaning and maintenance, reflecting an operational synergy that blurs the boundaries between different service categories.
- Duo Catering stands out as a leading Belgian SME that has made a name for itself by offering catering services to companies and nursing homes. Its expansion plans reflect a localized, growth-oriented approach.
- Culinoa specializes in the healthcare and wellness segment and, in addition to providing catering services, enhances its value proposition with software solutions that manage catering needs.
- API Restoration takes the lead in the French market and demonstrates cross-border influence in the foodservice sector. These major players are continually vying for market share through strategies such as winning lucrative public tenders, mergers and acquisitions
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Summary and extracts
1 Market overview
1.1 Definition and scope of the study
The mass catering is the preparation and distribution of meals within companies, communities or public institutions. Part of the cost of the meal is sometimes borne by the employer or the institution in question. A distinction is made between different types of management - depending on whether it is autonomous and managed internally or delegated to private companies.
The three main sectors of activity of the collective catering are catering at work in companies and public administrations, catering in health care facilities and health care (hospitals and retirement homes) as well as the restoration associated with the educational sector The issues and determinants of the business thus depend on the type of client sector
Worldwide, contract catering is growing rapidly, with forecasts of more than 5% per year between 2018 and 2023 before the Covid-19 crisis. The market is dominated by global players such as the French Sodexo and Elior the American Aramark or English Compass.
Collective catering actors are trying to highlight the quality of their meals, to counter the sometimes somewhat "down-market" image of the offer in collective canteens. By focusing on an organic, responsible and local offer. As the world's leading food service provider, players are trying to win over more and more customers and consumers as the choices for lunch are numerous - especially for corporate catering.
The Covid-19 crisis has had a major impact on the sector and is expected to have a lasting negative impact - with the rise of teleworking in particular - thus accelerating the business model change of the actors of the collective catering.
1.2 A growing global market
The global food service market is booming; between **** and ****, the market is expected to grow at a CAGR of *.*% to reach €*** billion.
The main players in this market are relatively few and include Compass Group (***). [***]
Size of the contract catering market World, ****-****, in USD billion Source: ****
NB: Estimates made before the Covid crisis, which is expected to affect the sector with the massive growth of teleworking
Moreover, as shown in the chart below, the geographical concentration of the food service market is concentrated in the Western world, which held **% of the market in ****. Europe, in particular, is the leading contract catering market (***) [***]
Geographical breakdown of the contract catering market World, ****, in % Source: ****
1.3 A Belgian market in decline in recent years
The contract catering sector is generally declining since ****, with an CAGR of -*.*%. The turnover of the players in the sector amounted to *** million in **** according to Statbel - about the same level as in ****/****.
The market is dominated by * main players who together account for almost half of the sector, Sodexo and Compass.
Evolution of the turnover of the collective catering Belgium, **** - ****, € billion Source: ****
On Statbel, food services are included in statistical category **.* entitled "Food services, Caterers and other food services". This is a distinction between caterers and other catering services (***)
The chart below highlights the growth in sales of the broader business-to-business segment "Caterers and other food services" between **** and **** according to Statbel. The activity is carried out by catering services, which experienced a CAGR of *.*% between **** and ****. In ****, the "Other food services" - i.e. collective catering - weighed more than **% of the segment "Caterers and other food services" compared to nearly **% in ****, which reflects the contrasting dynamics of catering and food service in recent years.
Evolution of the turnover of the collective catering and the caterers Belgium, ****-****, € billion Source: ****
The fall in **** is particularly sharp - by almost **% - for the whole sector (***).
Finally, we ...
1.4 The impact of the Covid-19 crisis
The Belgian subsidiary of Sodexo announced *** job cuts due to the Covid-** crisis, which is expected to result in "a significant decline in sales"for the players in the sector [***]
The graph below highlights that the main food services players in Belgium lost a significant part of their turnover during the *st containment. Sodexo was somewhat more spared thanks to more diversified clients and activities. [***]
Impact of the Covid-** crisis on the turnover of catering companies Belgium, ****, in average % loss of turnover (***) Source: ****
For the catering sector, the impact is negative on several points:
Sanitary and containment measures: teleworking and cessation of activity in companies and administrations In universities and schools, the increase in the number of online courses has also affected activity Even in health care institutions (***) some canteens had to be closed, but services such as meal delivery could still be set up
Moreover, the pre-crisis level of activity is not expected to be regained - the negative impact is not only cyclical but also structural due to the rise of teleworking in particular. "I am convinced that our industry will be permanently impacted" said the boss of Aramark Belux in ****. [***]
The chart below compares activity by quarter between ...
2 Analysis of the demand
2.1 Type of demand
Statbel accounts for contract catering activity under the name "Other food services". This class includes the provision of industrial catering services on the basis of contractual arrangements with the customer for a specified period of time. The meals are usually prepared in central kitchens.
We distinguish :
Activities of companies providing meals to passenger transport companies: airlines, railways, ... The supply of meals to canteens and company restaurants The supply of meals to university restaurants and school canteens The supply of meals for the messes and canteens of the armed forces personnel The supply of meals to hospitals, nursing homes, assisted living facilities, etc. The operation of sports and company canteens, university canteens, messes and canteens for armed forces personnel, school canteens, etc., which provide meals and beverages (***), generally at favourable prices, to clearly defined groups of people who are usually linked by professional ties
Our study will focus on three main segments, these companies account for the majority of the sector's turnover:
Company catering (***) Catering for the care sector (***) School and student catering school and university canteens
2.2 Demand drivers for corporate catering
The lunch habits and preferences of Belgians during the working day
If in the past the company canteen was the preferred place for employees of large companies to go to, the situation has changed and there are more choices.
Thus, Belgians have several choices for lunch:
Company restaurants Home-cooked meals Off-site restaurants All delivery or takeaway services.
If we take the example of the management of the collective catering of the federal administration in Belgium, almost **% of federal public service employees regularly use canteens [***]. It is therefore that */* eat lunch differently.
A study conducted by Edenred in **** on the ideal meal gives us some insight into the criteria that Belgians take into account when choosing where to eat on a working day.
How much time do you spend on your lunch break (***)? Belgium, ****, in % Source: ****
Belgians eat lunch fairly quickly: **% of them eat lunch in less than ** minutes and **% in less than ** minutes. This speed demanded by consumers is an asset for the collective catering industry, which makes it possible to limit the number of journeys made by employees, in particular by offering a service at or near the workplace.
The graph below highlights, among other things, that for their lunch ...
2.3 The impact of the evolution of the age pyramid
The growing number of people aged ** and over is increasing the need for care facilities. In ****, there were more than two million people aged ** and over in Belgium, which corresponds to **% of the population. [***]
According to the Federal Planning Bureau, this proportion will increase to **% in **** and even **% in ****. This will result in an increasing number of elderly people in need of long-term care. This is the case in homes as well as in nursing homes for the elderly (***) [***]
In ****, there are approximately *,*** residential structures for the elderly (***) where nearly ***,*** seniors are cared for every day. [***]
Thus, the ageing of the populations plays in favour of the segment "health facilities" in the catering industry.
Evolution of the structure of the Belgian population Belgium, ****- ****, as % of total population Source: ****
In turn, the more moderate growth in the share of young people in the population could stimulate activity in school canteens.
2.4 Towards a more balanced and responsible food consumption
In school canteens, parents expect their children to receive a healthy and balanced diet. This is also important in order to educate them to eat well, especially as the number of overweight children has been rising for several decades. The public authorities are also moving in this direction.
Share of overweight children by average body mass index (***) Belgium, ****-****, in % of overweight children Source: ****
More generally, the players in the contract catering sector must take account of trends in demand in terms of food.
* out of ** Belgians say they try to eat a balanced diet, which could increase the demand for healthy food [***]
Among the main trends in terms of food, we can mention the following:
Organic, especially for fruits and vegetables; Local and fair trade with Belgian suppliers; Fresh, healthy, seasonal products; Vegan, vegetarian and flexitarian trends, as highlighted in the graph below.
Share of Belgians who regularly eat vegetarian Belgium, ****, in % Source: ****
3 Market structure
3.1 Segmentation and actor dynamics
The evolution of the number of companies and employees in the sector
Between **** and ****, the total number of businesses in the contract catering sector has seen an average annual decline of *.* in Belgium.
The number of employees in the sector is also declining, but at a slower rate, a slower pace of about -*.*% per year on average between **** and ****.
This may well account for the difficulty of small players to remain competitive in the market, and for concentration movements. However, there was a rebound in the number of companies between **** and ****.
Number of companies and employees in the contract catering sector Belgium, **** - ****, in number of companies and thousands of employees Source: ****
Analysis of market share and industry leaders:
Sodexo (***) are fighting for the third place.
Comparing the **** revenue of the major players (***) with the overall industry revenue in ****, we can give an estimate of the market shares.
Sodexo would weigh approximately */* of the contract catering market Compass would represent near **% of the market
Between them, the two leaders account for more than half of the sector's turnover.
The graph below compares the turnover of the * leaders in the Belgian contract catering market, according to Trends (***)
The top * players in ...
3.2 Growth strategies
Players compete with each other via various strategies to grow, including:
Winning public contracts and tenders (***) when companies want to outsource their collective catering - for example by focusing on the local aspect of the products, CSR, environmental sustainability, etc
Centraledesmarches lists tenders, such as the European Parliament, in ****.
M&A and diversification :
Diversification of activities is important in the sector, and the integrated multiservice model of the leader Sodexo is a good example. Sodexo offers companies the opportunity to outsource certain internal services such as [***]
On-site services: canteens Off-site services: meal vouchers Other services: reception, cleaning, technical maintenance, crèche, concierge, etc.
To diversify, acquisitions can be a good strategy. In ****, Compass is acquiring Gourmet Invent a caterer for events and hotels. The Sport and Leisure segment thus represents **% of Compass Group's business. During the lockdown, Gourmet Invent delivered meals to hospital staff.
Diversification into catering services is all the more interesting as it is a segment that has been growing for several years, unlike the institutional catering sector. The graph below highlights this dynamic.
Comparison between the evolution of the turnover of the catering services and that of the collective catering Belgium, **** - ****, € billion Source: ****
3.3 Competition from other restoration methods
This competition is especially true for company catering, as employees have a choice of catering options for their meals.
As seen in *.*, some Belgians also prepare their meals or lunch boxes at home - which is both more economical and allows them to choose their meal.
Many companies also donate the choice between the company restaurant or meal vouchers (***). Thus, employees can choose to have lunch outside the company, even when the company offers a collective catering service. They can then choose between traditional restaurants - more expensive - and fast-food restaurants, which are cheaper and faster.
As part of the luncheon vouchers, the employer's contribution may not exceed EUR *.** and the employee's contribution must be at least EUR *.**. There are three issuing companies in Belgium: Edenred, Monizze and Sodexo [***]
The number of fast food restaurants has been steadily increasing over the past decade - from **,*** in **** to **,*** in ****, representing a total increase of **%.
Belgian chains such as Exki or Point Chaud, in competition with the fast-food restaurants of the big international chains (***), are thus competing with the offer of company restaurants.
The rise of delivery and take-away
The online sales in the restaurant sector are booming, with the development of ...
3.4 Production and distribution analysis: a changing business model
Overall, there are two types of kitchens:
The on-site kitchens that produce meals that are consumed exclusively on site the traditional business model of collective restaurants is mainly based on this type of system The central kitchens, at least part of whose activity produces meals - most often - for satellite restaurants
With the expected increase in take-away food - especially in company restaurants - the need for on-site kitchens is expected to decrease. The old business model with one kitchen per location is likely to disappear and be replaced by central kitchens - which could serve as a production base for various locations and for take-away. The players must then develop competences in the logistics field (***).
However, the traditional "canteen" is not dead - the conviviality of the concept is still appreciated Business should therefore return to a fairly high level - around **% of the previous level of activity according to the sector's players. For the remaining **%, delivery and takeaway could partly compensate. [***]
The new business model of the corporate catering industry : [***]
"I think that the term "collective catering" is outdated, we now talk about catering experiences" says Denis Manuel, from Sodexo in **** [***]
If the change in business model ...
4 Analysis of the offer
4.1 Typology and issues of meal supply according to sectors
The different types of management of canteens and collective restaurants:
There are three types of management:
Autonomous Granted Mixed
The types of management depend on the type of player and the size of the player (***). Globally, large companies most often have company restaurants conceded to private companies, which is less the case in SMEs.
In ****, **% of Wallonia's collective canteens are managed autonomously and **% are supplied by catering companies such as Sodexo, ISS or Compass [***].
Share of Walloon canteens under autonomous management Belgium, ****, in % Source: ****
If we take the example of the management of the federal administration's collective catering, this has been organized by Fedorest since ****. The restaurants can be managed in three different ways [***]
Either by the institution itself Or by an ASBL (***) Or by private catering companies (***)
The issues involved in the provision of meals depend largely on the type of collective restaurant, even if the criterion of food safety is of course shared by all.
In school canteens, the meals offered must be healthy and balanced while following a certain number of "good practices" such as :
A focus on high-fiber foods Preference for fresh water over sodas and sugary drinks Avoid over-processed products Focus on local and organic ...
4.2 Analysis of prices and associated costs
Overall, according to Statbel, the graph below highlights a price increase over the period **** - **** - an average of *.*% per year in the contract catering sector. This is broadly the same price increase trend as in the period ****-****.
Evolution of the consumer price index in the catering industry Belgium, ****-****, in index base *** **** Source Statbel TCAM **** - ****: *.*
In health care facilities, canteen prices are often included in the total cost of accommodation. Prices have been on the rise in recent years: from **% over the ****-**** period.
In school canteens, meals are regularly subsidized, so prices can vary between * and €* depending on the school.
In company restaurants, in many cases, the company pays for part of the meal (***).
However, there is a decreasing tendency for companies to pay for a large part of the meals according to Profacility. This is forcing players to adopt a more commercial model. In order to save costs, some companies are opening up their restaurants to other organizations or even to individuals. Others are sharing their restaurants with others, a trend that could become more pronounced with the Covid-** crisis.
If we take the specific example of the management of the federal administration's collective catering, collective ...
4.3 Trend in supply: towards "responsible" and "sustainable" collective cooking
In ****, Wallonia launched its "Green Deal Sustainable Canteens" by proposing specifications - signed by *** canteens and public authorities, i.e. more than **% of the region's stakeholders - with various objectives [***] such as:
Reaching **% of organic and local dishes by the end of **** in school canteens and community kitchens. Respecting animal welfare Getting local and seasonal products Reduction of food waste
For example, Sodexo - which signed the deal - must increase its food supply from **% in **** to **% of Belgian origin by **** [***]
The Belgian Catering Union (***), founded in ****, includes the major players in the sector - Aramark, Compass, Prorest, ISS Catering and Sodexo. The players focus on the quality of the offer by creating good and healthy meals with the help of dieticians.
To avoid food waste, UBC offers various solutions such as:
Reuse of unsold and surplus products for animal feed Partnerships with Too Good To Go or the food banks that manage these unsold items
5 Regulation
5.1 Regulations
The main rules are grouped into themes common to the whole sector: Fire safety, Insurance, Indication of prices, Copyrights and similar when broadcasting music or images, conditions for allowing your customers to smoke, Alcohol and similar drinks, VAT - Tariffs - Receipts - Cash register, Food safety, Environmental permits, Acoustic standards, Legionella, Drinking water, Accessibility, Waste, Sewage disposal, Opening and closing days, Toilets, Doorman, Communal regulations, hiring of personnel, Joint Committee of the Hotel Industry.
L' AFSCA - Federal Agency for the Safety of the Food Chain - controls and regulates food hygiene and safety. Since ****, it has made public the health assessment reports. The regulations depend on the size of the business, so smaller businesses have simpler food safety standards. The document Food safety in the catering industry required by the FASFC reports on these regulations in more detail.
6 Positioning of the actors
6.1 Segmentation
- Sodexo France
- Aramark Belgique
- API Restauration Belgique
- Facilicom Group
- Duo Catering
- ISS Facility Services
- Elior Ristorazione S.p.a
- API Restauration
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the contract catering market | Belgium
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