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In-House vs Outsourced School Catering

Independent appraisals for school catering. Compare in-house vs outsourced model costs, and implement the right solution with Litmus expertise and software such as Litmus Edge.

Inhouse vs Outsourced Catering

Catering is a significant budget line for every school—and getting it right matters.
At Litmus Partnership, we help state and independent schools and multi-academy trusts (MATs) decide whether to operate in-house or outsource to a contractor. Drawing on over three decades of sector experience and thousands of school engagements, we provide independent evidence so you can choose the model that fits your culture, finances and ambitions.

Making the right choice for your school

Every school is different. Culture, historic delivery, budget realities and the capability of your current team all shape the right answer. Our role is to bring clarity: what each route delivers, what it costs, and how to implement it well.

When in-house makes sense

Schools often choose in-house delivery when they want control, transparency and agility.

  • Value & transparency — Direct visibility of all costs; avoid inflated or opaque charges.
  • Cost focus — Potential to remove management fees and keep savings within school budgets.
  • One team, one culture — Aligned aims and behaviours; faster, more personal response to pupils and staff.
  • Flexibility — Freedom over suppliers, products and menu decisions; rapid changes without contract renegotiation.
  • Sovereignty & speed — Ability to adjust service quickly to meet changing needs.
  • Targeted support — Bring in external expertise only when required, not as a fixed overhead.
  • Existing capability — Where management resource and knowledge already sit within the school.

Reality check: In-house success relies on robust management systems, procurement expertise and staff development. Short-term savings can erode without disciplined controls.

When outsourcing makes sense

Schools favour outsourcing when they want specialist capability, risk transfer and structured innovation.

  • Reduced day-to-day management burden — Provider runs operations within agreed standards.
  • Specialist expertise — Evolving food offer, nutrition and service design to keep things fresh.
  • Compliance assurance — Food safety due diligence and changing legislation managed by the contractor.
  • Systems & tools — Catering-specific platforms to support production, allergens and reporting.
  • People & progression — Career pathways and training provided by the contractor.
  • Resilience — Cover for absence; skilled support for special events.
  • Commercial structure — Agreed financial model (fixed cost/guaranteed return); transparent accounting.
  • Investment — Potential for upfront/transition investment.

Reality check: “Guaranteed” returns vary by contract and market conditions. Hidden costs (e.g., training, relief management) can creep in—benchmarking and contract governance are essential.

Want to get started? Find out what’s involved

We make the decision—and its implementation—clear and manageable:

  1. Discovery & Diagnostics
    • Culture, objectives, pupil profile, current performance and stakeholder needs.
  2. Financial Benchmarking & Modelling
    • Like-for-like costings, pay/food inflation, schedule of rates, realistic revenue projections.
  3. Options Appraisal
    • Side-by-side evaluation: in-house vs outsourced (service quality, risk, compliance, cost).
  4. Governance & Risk Review
    • Food safety, allergens, HR/TUPE considerations, KPIs and reporting.
  5. Recommendation & Roadmap
    • Clear preferred route with milestones, responsibilities and change plan.
  6. Procurement or Setup
    • If outsourcing: compliant tender, evaluation, award and mobilisation.
    • If in-house: structure, supply chain, menus, staffing and systems.
  7. Performance Management
    • KPIs, dashboards, review cadence and continuous improvement.
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How much can I save my school?

Get in touch today to find out what you could save

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Technology that makes in-house work harder: Litmus Edge

For schools moving in-house—or optimising an existing model—Litmus Edge is a kitchen management and food procurement platform built for education.

  • Reduce overall catering costs (schools commonly see up to 20%).
  • Consolidate multiple tools and paperwork into a single, easy system.

Free up budget to increase spend on food and improve quality.

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Realise the savings

Savings and commercial levers

  • Outsourced contracts often yield savings through best-value benchmarking and re-tendering or renegotiation.
  • In-house can reduce costs if paired with strong procurement, financial controls and workforce development.
  • Whichever route you choose, disciplined KPIs, market benchmarking and structured governance underpin long-term value.

The benefits of working with Litmus

  • Independent advice grounded in education sector realities.
  • Balanced, evidence-based recommendations that fit your school’s culture.
  • End-to-end support from appraisal to procurement or in-house setup.

Measurable outcomes in cost control, quality, compliance and stakeholder satisfaction.

Client Success Stories

Discover how we’ve helped organisations across education, healthcare, business and the public sector achieve measurable improvements in quality, efficiency and value.

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Insights And News

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Take the next step

Unsure where to begin—or ready to test your current approach? We’ll help you compare options clearly and implement with confidence.
Get in touch to arrange an initial discussion or a rapid options appraisal.

Contact Us

We love to connect with business leaders that want to make a change. Contact our friendly team to request a no obligation chat about your current challenges and goals.