Schools should assess the risk of a catering provider collapsing when they award contracts, a report advises, amid warnings that smaller companies are being squeezed out.
The Association for Public Service Excellence (APSE) and The School Food People are calling for schools to be made to apply a “public-interest procurement test” when choosing catering providers.
This would mean that alongside schools assessing the prices charged for food, they would also assess provider “resilience”, nutritional quality, workforce conditions and the impact on the local economy.
In a report titled , the organisations warn that the withdrawal of council-run and smaller catering services risks leaving schools increasingly dependent on a small number of large providers.
Schools should consider the longer-term costs of provider failure and lost local catering capacity rather than simply choosing the cheapest contract, the report argues.
But it also warns that large catering companies are withdrawing from schools they consider commercially unviable, particularly small and rural schools - potentially leaving schools with fewer choices and higher prices.
Loss of council catering services
There have been closures of several council-backed catering services, including in Plymouth and Leicestershire, where 117 schools were affected, the report shows.
Surrey County Council’s Twelve15 catering service was taken over by a larger company after the number of schools it served fell from 160 to 49, for example.
And 71 per cent of providers responding to a survey accompanying the report were not confident that their services would remain financially sustainable over the next three years.
APSE warned that closures could accelerate as financial pressures intensify, with smaller providers struggling to compete against larger companies.
Report author and APSE principal adviser Vickie Hacking warned that the continued decline of public sector caterers and smaller providers risked allowing a profit-driven model to dominate school catering.
Cost of school meals
A new funding formula is required, the report argues, to reflect the full cost of providing school meals, which can include staff pay, energy, transport, kitchen equipment and meeting food standards.
Research for the report highlighted that the full cost of providing a primary school meal is generally between £3.25 and £4.25, yet the price charged for meals in schools is commonly between £2.75 and £3.20.
Brad Pearce, chair of The School Food People, said: “School caterers want to serve healthy, appealing meals and meet higher standards. But many cannot keep making up the shortfall through subsidies, fewer staff or changes to menus.”
The report comes as schools prepare for revised school food standards, beginning in September 2027. Leaders and experts have previously raised concerns that funding will be inadequate to meet the new standards.
Government procurement project
Meanwhile, the Department for Environment, Food and Rural Affairs has for a £2 million project to improve school food procurement practices.
A notice published last week says schools need stronger purchasing expertise to help them appoint caterers that can improve food quality and sustainability without driving up costs.
The project is expected to involve around 50 schools, predominantly secondaries using external caterers.
It aims to improve the nutritional quality and sustainability of school food, reduce waste and strengthen links with local suppliers, the notice says.
The formal tender for the contract is expected to be published tomorrow.
To get essential briefings from Vlog magazine delivered directly to your inbox, sign up to our newsletters. And stay up to date with the latest education news via the Vlog magazine mobile app - available on and on
