The foodservice equipment industry supply chain is worth an estimated £1.3 billion and it employs 10,000 people in the UK. Chefs across the public and private sectors use equipment including ovens, refrigeration, warewashing, ventilation and tableware.
Foodservice equipment is used for out of home eating and drinking. The primary sector operators (where foodservice is the primary function) include restaurants, pubs and hotels. The secondary sector operators (where foodservice is a secondary function) include healthcare, education, armed forces and the workplace.
In the letter the four foodservice equipment companies say they support the Government business funding programme, announced by the Chancellor Rishi Sunak, which aims to support foodservice outlets that are being affected by coronavirus.
They quartet called on the Government to ensure the following:
*** Where operator funding is made available there should be a mandatory obligation to ensure that operator businesses meet their contractual payment obligations, in order to support the supply chain.
*** Supply chain businesses should have access to funding to bridge the gap caused by non-payment by customers. Support is needed to ensure that UK registered businesses are able to provide foodservice equipment for future Government projects.
*** Regular reviews of supply chain issues are required, and changes should be incorporated into Government support proposals in order to ensure that supply chains do not suffer short term irreparable damage leading to loss of skills and experience. Failure to do this will prevent effective recovery as and when the operator industry recovers.
*** Employment support packages must be made for all companies immediately. By giving PAYE ‘holiday’ for a one-off period of three months would be the SINGLE biggest help government could do for all businesses to ensure companies can continue to guarantee salaries to employees and therefore give employees / staff the confidence they need that salaries will be meet for at least three months.
*** Not for profit organisations such as ours, are directly engaged in the sector and arrange events and activities to facilitate networking and to generate business for members. Losses due to the need to cancel such events should be covered by Government in the case of not for profit organisations where these cannot be recovered by insurances.
The letter was signed by Adam Mason director general of Ceda, Phil Martin chairman of Cedabond, Bob Adams managing director of ENSE and Keith Warren chief executive of FEA.