The Changing Shape of the Food Industry
Martin Smith, Culinary and Operations Director, South West Larder discusses the current challenges and changes the catering and hospitality industry is facing.
The food industry has been hit hard by the coronavirus (COVID-19) pandemic with consumer spend being less than 70% of pre-pandemic levels, businesses have more recently increased their supplier spend, however, payments to suppliers from food and drink businesses have remained around half of pre-pandemic levels. Alongside this in June 2021, the number of employees within the sector remained 11% below February 2020 levels, it is clear to see how the global pandemic has hit the catering and hospitality sector hard.
As we moved through the pandemic, Somerset Larder adapted to the changing restrictions meeting many hurdles along the way, and are still facing continuing challenges. We asked Martin Smith, Culinary & Operations Director for South West Larder Ltd, what he believes the challenges and changes are and how (as an industry) we can overcome them:
Martin, tell us a little about yourself and your culinary background:
I’m a classically trained chef, I spent my early career in hotels and restaurants learning my craft and moving through the ranks culminating in a role as City Executive Chef, overseeing 2 hotel & event kitchens, following that I was Executive Head Chef for University of Manchester overseeing the food operations for the largest university campus in Europe, 40,000 students/11,000 staff
What is your role at South West Larder?
In a nutshell its FOOD, the purchasing, cooking, delivery, quality & safety of the food. Ensuring we have all those components at the right place at the right time
Over the past 18 months what do you think has been the biggest changes and challenges our industry has faced?
The industry has been hit hard by COVID, more so than Brexit. I have, and continue to be, amazed at the innovation and resilience shown by so many businesses to find ways around the restrictions. We only have to look at our operations at HPC, the teams made the changes needed to ensure everyone’s safety and continued with service during a global crisis. It has been really hard for our people, they have had to find the courage and resilience to push through emotional and physical hardship to continue working throughout the pandemic.
We have two big challenges for the immediate and long term future of the industry, the biggest one is a lack of staff returning to us, during Covid/ Brexit people have found other new jobs or returned to their homes. We are going have to attract and train a new workforce. Here at Somerset Larder we are starting to develop a new training programme to take relatively inexperienced people and turn them into skilled chefs, it is the only way we can build the workforce we need right now.
How will the challenges our industry face impact the consumer?
The challenge of rising costs is ever present , we are seeing daily increases of basic food items this coupled with packaging increases 25%, linen/laundry 12%, cleaning materials 5% are squeezing already fine profit margins. The industry is facing one of the biggest crisis’ it has ever seen and this is looking likely to remain a challenge for the next 2-3 years this will of course hit the consumer with rising food costs and may deter people from dining out
How has Somerset Larder’s focus on local produce supported/benefitted us and the wider community over the past 18 months?
As Covid hit us in March 2020 the site numbers were halved this left us with some decisions to make for our CPK team, do we furlough some of the team or do something else. Somerset NHS trust approached us to support them feeding their teams in their satellite units across Somerset, with the support of NNB we deployed our team to produce over 3000 meals per week to feed healthcare professionals. We also delivered up to 1000 meals to Fareshare in Bristol to distribute to families struggling during the pandemic
How has the HPC project supported the catering industry in Somerset?
HPC Project has supported the catering industry and associated businesses in Somerset , there are so many businesses & people that have benefited from the project. We now have people who have been well trained and have developed skills that will help them develop in the future. We have given small companies and producers a route market for their products, support from the project has enabled us to buy at fair price for all.
What innovations do you think will occur in the catering world as a result of the changes and challenges of the past 18 months?
I feel that the demand for pre- packed Grab & Go options will continue to increase as COVID impacts our daily lives, caterers are going to need to be innovative as the packaging costs and availability will continue to challenge, this will be compounded by consumers expectation of green solutions. COVID has made people review their health & wellbeing and question what they are eating. The explosion of Vegan options will continue.
Final Thought?
Having spent over 40 years working in hospitality and seen so many changes and challenges I feel the latest recruitment crisis may force operators to review their employment strategies and make working in the industry more rewarding, the knock on will be increased prices of Food & Drink at the table. Will customers be prepared to pay for the service?