Most also report experiencing food price increases from 10%-30% across all produce areas.
To try to cope, chefs and catering managers are reluctantly having to turn their backs on local food in some cases.
For example, 17% say they have already switched from British meat to products from overseas, while another 34% are actively considering it. Another 14% are going for cheaper cuts.
Matthew White, chair of the Public Sector Catering Alliance, said: “The price increases we are seeing are unfortunately reversing some of the great work public sector caterers have been doing to buy local and support SME’s.
“So much British produce is snapped up in huge retail deals and so getting our hands on great British foods at affordable prices to match ever stretched budgets is a trick too far for caterers to conjure up.”
They are also concerned about how the shortages and cost increases will impact their ability to meet food standards, with 63% confirming they are currently still meeting them, though over a quarter (28%) say they won’t be able to do so unless these pressures ease.
Even their capacity to serve hot meals is being called into question. Some 15% have already removed or reduced their hot meal service, with 27% more considering it.
White added: “Public sector caterers are by nature creative and determined people and we always strive to find solutions, but this mode of operation is simply not sustainable and something has to give.
“I am concerned that if we continue to operate in this way, we will have established a new normal that cannot underpin the health and wellbeing of our communities that we serve.
“Hot, nutritious, well-prepared food is what powers us all and we must not sacrifice that or other parts of the public sector will suffer greater pressures such as the health and care sectors.
“Public sector food is at the very heart of our nation and it must be funded and resourced adequately to prevent a domino effect of poor health and poverty.”
Brian Robb, chair of the Hospital Caterers Association, added: “The impact of rising costs is difficult in public sector where our budgets are finite and we have no way to pass on increase.
“Menu planning is challenging as many ingredient cost pressures are across the board. Our fear is we may have to look at inferior quality.”
In the care sector, Sue Cawthray, chair of the National Association of Care Catering, pointed out: “The care catering sector are struggling with the increase in food costs and staff shortages across care settings – the most vulnerable people in our society continue to be at risk.
“We are almost at a stage where it will be a choice in ‘heat or eat’ and of course both are vital to the wellbeing of every client accessing our services.
The survey found that ambient foods is the category most affected by supply and price issues, particularly manufactured products. But more than 40% say they are also experiencing problems with frozen groceries, fruit and vegetables dairy and bakery items.
However, less than 25% of those working in schools reported suffering supply issues with fruit and vegetables.
The items most likely to be affected according to survey respondents were oil, tinned products, tomato-based products, frozen fish, potato products, chicken and milk.
And concerns are being raised that allergen controls are being jeopardised as a result, with nearly three-quarters (72%) of caterers having had to make menu changes and 64% saying they have changed their recipes.
White said: “This creates extra pressure on already overstretched caterers, with detailed work needed to prevent issues such as allergen information being wrongly presented. It isn’t a case of just switching a product.
“Although the government has provided assistance in terms of utilities in the immediate term, a lack of staffing is still causing great anxiety. The hospitality sector in general has been petitioning for visa restrictions to be lifted to allow EU workers to work here freely.”
And supply issues and staffing are not the only problems facing the sector, with the survey showing one in ten caterers have mothballed some service options, while others are looking at more energy-efficient equipment, where capital expenditure allows, and 84% are actively giving or considering providing staff training on energy usage.
And 77% say they are still facing applicant shortfalls for vacancies, partly as a result of their inability to compete with higher private sector wages, while 74% say that applicants too often lack the skills needed. Among other recruitment issues, 29% report facing long delays to get DBS (Disclosure and Barring Service) clearance.
Overall, most survey respondents agree things are worse than in January 2022, with 62% believing the situation is likely to deteriorate further.
