‘Improved' railway catering looks set for snacks boom

Railway caterers have made great strides in the past two years to distance themselves from the legacy of the curled-up British Rail sandwich, claims Mintel's first report on the sector.

The improved variety and quality of food coincides with the wider availability of healthier foods such as soup and juice bars and bagels, sushi and noodles in railway stations.

On-board caterers - of which Rail Gourmet is the biggest UK company - are most at risk of accusations of poor-quality, overpriced food from a captive audience suspicious when prices are higher than in railway stations.

Big chains are doing good business, with McDonald's and Burger King the most visited railway caterers. Compass's Select Services Partner, the biggest station caterer with chains like Upper Crust, Ritazza and Coopers Bar, added Delimento and the Reef in London last month.

The number of railway passengers is forecast to increase by 9% over the next three years.

On-board catering, worth £49m in 1994, is expected to reach £68m this year and grow by 18% to £80m by 2004. However, Mintel predicts that the restaurant car will become a thing of the past as faster trains shorten train journeys and the focus switches to snacks and sandwiches eaten in passenger seats.

The station catering market has grown from £135m in 1994 to an estimated £185m this year. Real growth of 29% to £239m is forecast for the year 2004.