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PSC Alliance survey highlights impact of rising food costs on caterers

22nd Nov 2022 - 10:30
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Abstract
A survey by the Public Sector Catering Alliance (PSCA) found that 90% of caterers working across schools, hospitals, the care sector and universities say they are suffering from food shortages and product substitutions.

The Public Sector Catering Alliance (PSCA) is the new name for the PSC100 Group, which for a number of years now has provided a channel for collaborative work across the sector.

The problem seems particularly acute in the schools sector, where millions of children face poorer quality school meals as a result of the rising cost of food, according to the latest sector-specific member research from LACA. Its findings show food prices have risen by 30% since May 2022, resulting in 28% of school caterers now using more processed foods.

Derbyshire County Council, has approved a 10p increase in the price of a primary school meal this term in a move that is pushing up the cost of school meals by 4.5% for 352 schools in the area.

Enthusiasm for more local sourcing is being tempered as chefs and catering managers across the public sector say they are having to reluctantly turn their backs on local food in an effort to cope. For example, 17% say they have already switched from British meat to products from overseas, 34% are actively considering it and 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 of 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.”

All public sector catering teams who responded to the recent PSCA survey also said they were concerned about how the shortages and cost increases will impact upon their ability to meet food standards, with 63% confirming they are currently still meeting them, but over a quarter (28%) say they won’t be able to do so unless these pressures ease.

More than 40% of respondents also said they are experiencing problems with frozen groceries, fruit and vegetables dairy and bakery items. 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.

The survey also highlighted significant concern that allergen controls are being jeopardised by shortages and product substitutions, with nearly three-quarters (72%) of caterers having had to make menu changes and 64% saying they have changed their recipes.

White added: “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.”

There are other problems facing the public sector, with the survey showing that one in ten caterers has already had to mothball 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.

Around 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.

White commented: “Although the Government has provided assistance on utilities in the immediate term, a lack of staffing resources is still causing great anxiety. The hospitality sector in general has been petitioning government for visa restrictions to be lifted to allow EU workers to once again work freely across the UK and more trained personnel are required, particularly in food production. More work is required to attract people into the world of hospitality.”

Most survey respondents agreed things are worse than in January 2022, with 62% also believing the situation is likely to deteriorate further.

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Written by
Edward Waddell