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Catering contracts go under the microscope(20 March 2006 10:49)Consultants and benchmarking companies are increasingly being asked to scrutinise the financial details of contracts because of the bad publicity surrounding Compass Group, industry figures have warned. Article continues below
Consultant Chris Stern has noticed a similar trend. "We're doing about 25% more auditing work than we were 12 months ago. There's a suspicion in the market about purchasing transparency and clients basically want to know if they're being ripped off." Stern added that clients were more wary of larger operators. "With smaller caterers, it's easier for bosses to be more hands-on and build better working relationships with clients." A Compass spokeswoman said: "We witnessed a degree of tighter financial scrutiny of contracts in the aftermath of the UN investigation. However, we're now experiencing normal levels of activity." She added that it had not lost a contract as a result of an audit. By Tom Bill Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.
Source: Caterer & Hotelkeeper |
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