Wharfers change their lunchtime habits as credit crunch bites

By Simon Hayes on May 29, 2008 9:00 AM |

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By Raksha Malde-Kara

AT least someone is making a mint out of the current financial turmoil. Food franchises are cashing in as office workers cut back on lavish lunches and opt for the office canteen instead.

Indian restaurant franchise Tiffinbites says its sales are up by 40 per cent over the last six weeks. The company provides food to the canteens of more than 200 blue chip companies including Citigroup and Barclays.

Jimal Himani, CEO and founder of Tiffinbites said: “Our Tiffin days have been operating in offices since 2005. But since the economic slowdown, we have noticed an upturn in profits from canteen sales. Whereas many workers would normally go out for lunch, they are now choosing to save money by eating on site.”

Figures recently published by OC&C Strategy Consultants suggest this trend will continue. According to the report, in 2007 the casual dining market in the UK was worth £3.8billion and by 2011 this number is expected to reach £4.7billion.

Other companies which dominate the contract catering market, include Compass Group, Sodexo, Aramark UK and Elior. According to the British Hospitality Association, there are 17,603 contract-catered canteens in the UK and together, they serve more than 1.5bn meals every year.

A Sodexo spokesperson said: “We have experienced a notable increase in people using the staff restaurant and deli bars. Additionally, instead of entertaining clients at top London restaurants, the in-house executive dining facilities are being used more frequently.”

Jason Leek, managing director of Restaurant Associates, which is a part of Compass Group, said: “In light of the recent credit crunch, we have seen some indication of organisations tightening their belts. Lunchtime dining remains the same, though for evening meals we have noticed a slight increase in recent months, where employees working late have been encouraged to use our on-site dining facilities, instead of ordering take-away or visiting local restaurants.”

Back in the world of lavish dining, Michelin chef Atul Kochhar is also planning on opening a British-Indian food restaurant in Canary Wharf.

The Indian chef who already owns a restaurant in Mayfair is hoping to keep dishes at a reasonable price.
Other opportunists in the food business include entrepreneur, Sir Terrance Conran, who is currently looking for a buyer for his restaurant empire.

The clouds of recession have also appeared with a silver lining for companies such as cost management franchises, which are currently making a profit.

According to a survey conducted by Baker Tilly, the number of companies considering cutting their costs almost doubled from 26 percent to 45 percent in March of this year.

Nick Tubb, managing director of White collar franchise.co.uk, said: “A tightening in the economy is tough for most businesses but it’s not always bad news. Businesses waste billions of pounds every year overspending on fixed costs, services and procurement.

"Right now, if they want to survive, companies are beginning to wake up to the fact they simply can’t afford to waste that money. And that is why more organisations are turning to cost reduction specialists, in particular some of the more successful franchised outfits.”

Have your lunchtime habits changed? Is food in Canary Wharf overpriced? Tell us your views.