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Tesco equipment suppliers wait to learn outcome of deli counter and bakery reports

Tesco

Suppliers of catering equipment to Tesco will have choked over their Weetabix yesterday morning following Sunday newspaper reports that the chain is considering down-grading its deli counters and bakeries.

The supermarket giant is currently looking at ways to strip out costs from its business, with its delis, bakeries and staff canteens among the areas under review.

The Mail on Sunday claims the company is considering an “overhaul” of in-store bakeries, using frozen instead of fresh dough, and replacing staff canteens in some stores with vending machines.

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The report suggests some counters would close while others would have their opening hours reduced. The plans would affect most of Tesco’s 732 largest stores, it said.

Any cuts would be bad news for the company’s primary equipment suppliers as it would potentially reduce its need for new counters and cooking appliances.

Tesco has declined to discuss the plans, although it is thought that details will be announced this week. “Whenever we make changes in our business, colleagues are always the first to know,” a spokesperson said.

The supermarket is said to be trying to slash £1.5 billion from its cost base in a bid to improve profits.

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Tags : Bakeriesdeli counterssupermarketssuppliersTesco
Andrew Seymour

The author Andrew Seymour

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