Whilst many independent schools have shared worries around the impact that a VAT-introduction will have in January, coupled now with the impending National Insurance (NI) increase in April 2025, which will drastically impact every sector, this has also opened up the door for schools to scrutinise how they currently run operationally and understand where efficiencies can be made.
One key school budget spend falls under catering/food service. Whether this spend is on an in-house or contracted catering, let’s take a look at what you can do today to drive cost-savings in this area…
How to use this opportunity to gain improved efficiency and value for money across your catering spend
5 things that you can do now:
1. Benchmark review and/or tender
2. Cap costs on cost-plus arrangements
3. Track spend and waste
4. Determine In-House Vs Outsource
5. Independent review of in-house operations
Explained below
1. If catering is outsourced, savings are likely to be made either through renegotiation following a best value benchmarking review or by putting your contract out to tender.
2. Cost-plus contracts should not provide a blank cheque to operators. There are several ways of guaranteeing or capping costs and incentivising the contractor to not overspend (which many contracts perversely encourage), but to meet or exceed the budget without compromising on service standards.
3. It’s worth looking at internal hospitality spend which is notoriously uncontrolled and food waste is an expensive problem. There are various tech solutions that enable visibility and tracking of spend and waste and can significantly reduce costs, making them well worth the investment.
4. Taking catering services in-house can be a way to reduce costs, but should only be done following a robust options appraisal. Short-term savings can be quickly eroded without proper management systems, procurement expertise and staff development.
5. If the catering services are already in-house, then it’s advisable to get an independent review of how efficiently you’re operating against best-in-class. It can be easy to become complacent when the catering is in-house and also to lose sight of innovations within the wider sector, fresh ideas and ensuring the service evolves in line with expectations.
FINAL TIP: For schools that choose to run their catering services in-house, consider taking advantage of the latest technology in kitchen management and food procurement to embed a variety of improvements and efficiencies across your catering operation, which can reduce your overall food procurement costs by up to 20%. An added benefit here is that this technology works to unlock essential funds to increase the value within your catering operation and spend on the plate.
Read more about this groundbreaking technology below.
Introducing Litmus Edge - The future of in-house kitchen management and food procurement.
A one-of-a-kind system designed to support schools who make the choice to self-deliver – Edge gives you everything you need to run a successful in-house food service:
- Improved Supplier Management
- Unique Food Safety, Allergen and Compliance Technology
- Streamlined Kitchen Management Processes
- Easy Menu Planning, Pre Order & Payment
Click here to read about the full benefits and features Edge can bring your school.
Need some advice?
Interested in learning more about how you can give your school in-house catering and housekeeping operations the EDGE? Or not sure if your outsourced catering is providing a best in class service?
Contact
Get in touch today with Katie Foster for a no-obligation chat for more information:
T: 01276 673 880 | E: katiefoster@litmuspartnership.co.uk