Players to watch in 2022 and 2023 – OCS in Food Service

As more organisations ponder their options, a proven safe partner will become increasingly attractive.

One of the most common questions that EP is asked is how organisations are viewing the challenges in the market and if their views on food service provision and partners have changed at all?

It has perhaps been one of the learnings of this era; that many only now have really started to understand the scale of the challenges being faced and to be faced for the future. Many operations – especially in healthcare and in heritage – have started to turn their eyes towards in-house provisions which seems brave considering the level of inflation and talent issues coming down the tracks. As one senior player noted: “The two major points for organisations to consider are 1. Supply and 2. People. There needs to be primary strategies in place for both.” Given this, one has to wonder over the decision of some to go in-house.

Others are understandably looking towards those partners who are able to provide a safe pair of hands and be good partners. It is very likely that the “vested” model will become more attractive as arguably the best solution to many of the fires beginning to light up is expert support structures and a collaborative, open approach to solving issues.

It is also likely that those companies with a sound structure are likely to find growth whilst independents – often the darlings of growth markets – may face greater questioning. So what does this logically mean?

· The majors are likely to be close to the action as they can offer strong procurement and people platforms along with advanced practices in sustainability and service offers.

· However, this market also allows the likes of OCS and independents with sound structures to come to the fore.

OCS has been a central food service player for many years. OCS has a long and sound history of good partnering. Thirty years ago the business was known under the Sovereign Catering brand. Fifteen years ago, it had returned to OCS and is still so today, but it is an effective player who ranks around 10th in turnover in the market, has strong long-term partnerships, over 103 contracts across the UK and delivers a sound business return to the group. The facts do say that OCS itself has the potential to once again become a force in the sector if it so wishes. For those clients seeking a safe option to either a major, to a niche independent or to an in-house operation, then OCS can be a good option for consideration. It would be of little surprise to see OCS find real growth across Food Service over the next 18 months.

As strange as it may sound, many clients have not realised the scale of the challenge to be faced. Hospitality inflation was forecast to be 12-14% for 2022 in December. Today it sits at a potential 16-18%. Food inflation is rapidly rising as are energy costs plus there is increased NIC. It will naturally impact on decision making. Will it change the forecast move towards In-house? Will clients invest more? Will the cost increases be passed on?

All questions are to be asked and answered but it does also suggest that those companies with solid structures and balance sheets could perform well in these turbulent seas.

Keep an eye out for how this all starts to play out.