Compass Group has valued the global food services market at a colossal £200 billion – and insisted it sees a clear opportunity to boost its share following a record level of turnover.
Revenues at the firm increased 5.5% on an organic basis to £23.24 billion for the 12 months to 30 September 2018, with operating profit up 7% to £1.74 billion.
Chief executive, Dominic Blakemore, said the company is buoyed by the level of business that is out there.
“The food services market is estimated to be more than £200 billion. With only about 50% of the market currently outsourced and another 26% of the market in the hands of small and regional players, we see a large and exciting structural growth opportunity,” he said.
“The large and disparate nature of the food services market makes it impossible to offer clients a one-size-fits-all solution. Therefore, we segment the market into various sectors and subsectors using our portfolio of B2B brands. This allows us to get close to our clients, understand their needs and create different and exciting offers that meet their requirements and differentiate us from the competition.”
Mr Blakemore said that Compass was the largest player in the market and continues to invest in industry-leading chefs who develop varied menus that reflect food trends in different markets.
“As we continue to grow and increase our scale, we further consolidate our competitive advantage and our position as the most efficient provider. This allows us to offer our clients and consumers the most exciting and innovative solutions, as well as the best value,” he added.
Compass said that its strategy moving forward is to focus on its core competence of food. It is currently in the process of disposing up to 5% of revenues in non-core businesses and said it is continually looking at bolt-on acquisition opportunities that strengthen its offer.