February 17, 2023
By:EmpoweringCPO Insights Team

Catering Services

This UAE category report on Catering Services will be very useful for your team responsible for managing and buying this category. This report also gives an overview of the Global Catering Service Market and the UAE Catering Service Market. This report gives in-depth information about Catering Service Pricing, Catering Service providers, and many other insights useful for benchmarking your current prices. In this report, we have also presented insights on the RFP process – data gathering, RFP elements, and buying decision scorecard. Our team of experienced sourcing and procurement professionals can help you with the execution of the strategic sourcing process by providing Procurement Consultancy, Spend Management, and with ongoing category management.

This research document on Catering Services will help your team in benchmarking this category as well as in identifying negotiation points when finalizing your contracts. This report also provides an exhaustive list of leading vendors in this domain. Based on their strengths and capabilities and based on the information shared about these vendors, they can be shortlisted for participating in Strategic Sourcing Projects.

 

Abstract:

  • The Global Catering Services Market is projected to grow at a CAGR of over 6% during the period 2019-2023
  • The global catering services market has been witnessing a growing number of mergers and acquisitions; between 2015 and 2016, the hospitality and catering industry in the UK saw an increase of 170% in total disclosed deal values concerning M&As
  • High market maturity regions include Western European countries, such as the UK, France, and Italy, along with other countries such as the U.S., Singapore, the UAE, and Hong Kong; about 60-70 percent of the entire catering contracts in developed markets will be a part of IFM contracts
  • The global catering industry will be driven by a growing emphasis on the adoption of technology to improve customer experience and a reduction in the time spent waiting for food
  • Locally sourced fresh farm produce is in high demand for fruits, vegetables, and meat products; frozen and processed food is being avoided, due to rising quality concerns and issues related to food safety
  • Countries such as UAE and Saudi Arabia are seeing huge growth in the annual tourist inflow and this has contributed to the development of catering services, fine dining, and luxury food culture
  • Global service providers as well as regional players are improving their presence and service capabilities which has spurred the growth of outsourcing by large buyers mostly in a bundle with FM services
  • According to a report issued by Al Masah Capital in 2017, the Gulf foodservice market is expected to grow at an annual rate of 8 percent, driven by a growing population and tourism sector, disposable income, and changing dietary habits
  • Despite an economic slowdown in the GCC, private equity players have clearly preferred to increase their investment focus in the food services sector amid rising volatility and a decline in oil prices since 2014
  • Dubai accounts for the majority share in the UAE catering services market as it is a tourism and business hub of the Middle East; Abu Dhabi is the second largest market, spending billions on schools, housing, transport, and other projects
  • Catering contracts are legal agreements entered into between the client and caterer to supply food and refreshments in the workplace, for a specified period; there are 7 main types of Catering Contracts
  • The report also lists down several vendors with their financial performance and other significant information.
  • Porter’s five force model has been generated to give an overview of the industry.
  • Negotiation points for buyers by asking vendors questions related to the labor force they provide, their service capabilities, and their market penetration have also been listed.

 

Table of Content:

Contents Slide No.
Introduction and Global Catering Market Outlook 3-9
GCC (Gulf Cooperation Council) Catering Market Outlook 10-11
UAE Catering Market Outlook 12
Types Of Catering Contracts 13-14
Vendor List 15-16
Porter’s Five Forces Analysis 17
Factors That Affect Costing Of Catering Service 18
Catering Company Cost Structure 19
Labour Cost Structure In Catering Company 20
Value Chain Of Catering Business 21
Buying Decision Score Card 22
RFP Elements 23
Negotiation Questions 24-25
Methodology And Sources 26
Next Steps 27
Disclaimer/Feedback 28

If required EmpoweringCPO can support with additional information and the next steps in executing projects like Catering Services. Also, feel free to reach us if a similar report is required for any other category. We can also help your organization with tools like Procurement Dashboard, Spend Management, Procurement Intelligence, and Procurement Consultancy.

EmpoweringCPO is a team of experienced sourcing and procurement professionals with hands on experience of having worked with many fortune 500 companies. The company was founded in 2011 and since then has executed multiple strategic sourcing projects and have achieved average savings of 10-12% so far. In addition to Strategic Sourcing their other offerings are Spend Analysis, Procurement Intelligence, Procurement Analytics, Best Cost Country Sourcing, Procurement Outsourcing, Built Operate Transfer, Supplier Diversity, Sustainable Procurement, Tail Spend Management, Item Master Optimization, Collective Buying, Compliance Tracking and Managed Procurement Services.

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Compliance Management Tool

Compliance management is very critical as otherwise the procurement organization may run into a scenario where there is a huge gap between realized savings and reported savings. Many procurement functions estimate large savings numbers when contracts are signed. They also invest significant time and effort in negotiating contracts for necessary goods and services, only to have a third or more of their purchasing dollars flow outside those deals. Some of the obvious fall-outs of non-compliance and maverick purchases are:

  • Very high prices
  • Risk of losing out on volume discounts and rebates

As compared to the current contract that was finalized after the sourcing process, the tool helps in tracking:

  • Vendor Compliance
  • Price Compliance

The objective of this tool is to ensure that the orders are placed only with the vendors that were shortlisted after the sourcing process and at the same price that was agreed upon and negotiated during and after the strategic sourcing process.

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