Glasgow officials give green light to new contract catering player

Plans to create a significant new player in the contract catering market in Scotland have been given the green-light by Glasgow officials.

At a meeting of Glasgow's executive committee last week (31 October) plans to convert the council's Direct and Care Services into a Limited Liability Partnership (LLP) were passed.

As an LLP, the new entity will operate at arms length from local government with far more commercial freedom.

At present, council caterers are restricted in the amount of business outside their local authority remit they can bid for, but this is not the case for an LLP.

The council will now enter into a period of due diligence with an interim board headed by the leader of Glasgow council, as it establishes its working relationship with the new entity ahead of launch on 1 April.

Fergus Chambers, executive director of Direct and Care Services, told Caterersearch: "These are very exciting times and there will be lots of challenges, not least of all transferring over 9,000 staff."

Direct and Care Services currently has an annual turnover of £154m and operates in the cost and profit catering sectors, providing school meals to event catering and banqueting.

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By Chris Druce

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