Food price rises 'demand flexibility'

That is the view of Mike Audis, chief executive of Elior UK, the country's fifth largest contractor in terms of client sites. He says all the indications are that the global economic situation will have an impact on how people spend their money. "Mostly where we feed people it's a normal, routine part of what they do – workplace or schools – and in that respect I think we're in a better position than some retailers on the high street. "But I think it's important we provide a service that our clients want and we have to be flexible enough to meet that need while also satisfying the objectives of our business. "Excellent food and service plus value for money should be the aim, but things change on a day-to-day basis and food prices are rising faster now than at any time since World War II. "I think higher food prices are with us for a while because I can't see the dynamic economies in Asia reversing the trend towards a more westernised diet. Not only that, but farmers are being encouraged to convert to other crops than food. "But dealing with this situation is just an extension of what we, as contract caterers, should be doing for our clients anyway. "Our industry has always been a highly competitive environment where contracts are always going out to tender and price is a key element. "At Elior we are lucky to have a very active procurement department that provides real-time information and allows us to talk to clients about changing suppliers or modifying the offer if necessary. "We give them the information they need to make the right choices for their business. Our objectives in the first instance will be to offer customers choice and to listen to what they want." *Read Mike Audis's assessment of Elior UK three years on from his appointment as chief executive in the March issue of Cost Sector catering magazine.