Initial Catering has set a target of 5% sales growth for the coming year. The company's current turnover stands at about £95m. The target represents a 7p increase in spend per head per meal.
In the education sector, where the company serves 2,500 state and 150 independent schools and colleges, Initial intends to gain 50 new contracts, reduce food costs by 1%, and cut wage costs by 2% by checking timesheets more thoroughly.
Angus Henry, managing director for state education, told employees at Initial Catering Services' annual conference in London last week that, by using generic menus and reducing the number of products ordered, food costs could be cut. Initial also aims to negotiate above-inflation price increases with clients.
Henry said that new business could be won by seeking out nurseries and village halls near schools, to see if they needed a catering service.
In the past year, the largest increase in meal uptake (7%) was at its Cornish schools, representing £170,000 in additional revenue.
In the business and industry sector, the aim is to reduce all costs by 3% and to gain 80 new contracts.