Compass revises menus to cope with soaring food costs

Multi-national catering firm, Compass, is dealing with soaring food costs by revising its menus. The company spends approximately £3.5 billion each year on food and said the revision of its menus will deal with rising prices of wheat and diary products.

Furthermore, a shake-up of the business through a stringent ‘management and performance’ regime is bearing fruit said Chief Executive Richard Cousins.

In a trading statement for the quarter to end December, Compass said it had experienced a strong quarter, with global revenues increasing in line with last year’s organic growth rate.

Margins are continuing to improve and operating profit is running well ahead of last year’s first quarter and marginally ahead of expectations added the company.

Compass also said operating profits were running well ahead of last year’s comparative period, with margins continuing to improve and that education division, Scolarest, is making steady progress.

Broker Dresdner Kleinwort believes that puts the company on target to increase underlying pre-tax profits by almost 20% to £510 million this year.

Earlier this month, it was confirmed that Compass had been successful in its bid to man the new departure lounges for British Airways (BA) at Heathrow Terminal 5.

The contract at the £60 million lounges runs for 5 years and includes food service, hospitality and housekeeping. It will be managed by 300 Compass staff.

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