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Catering Suffers as Corporate Spending is cut

Catering group ‘Compass’ says corporate hospitality spending cutbacks, job losses among clients and shorter working hours have its business extremely hard.
They have predicted that revenues for the business would only grow by a mere 1%. The press release has had a real bad affect which has ultimately made their shares plummet by 7%. Profit has slowed down dramatically since the decline in the economy. Their clients include some real big players such as Asda and Royal Mail. What's more is that it also operates it's catering services in another 55 countries.
Wedding caterers across the country have reported some sort of loss over the last financial year due to complete un-predictability of the economy. Private catering has definitely changed forever as the Compass group alone have said that they have seen its Business & Industry and Sports & Leisure units hit by the recession. Although Compass also reported that it had seen some small growth in revenues such as education, defence and healthcare which is a positive sign.
Unfortunately, it is going to be the smaller industries such as catering which is affected by this slow down in the economy as bigger corporations will be looking to cut back on ‘un-needed’ expenses such as ‘work-dos’ or ‘private corporate entertainment’. Considering what kind of current economic trouble we have found ourselves in such things as going out for a lavish meal on the company is longer a possibility. Instead, companies are having to focus on keeping their businesses alive rather than spend out on un-necessary expenses. So, no more expensive, lavish meals for potential clients!
The economy does look as though it may be levelling out but it will not be for a long time until you will start to see some clear improvement. Company budgets are unfortunately going to be extremely tight for the foreseeable future and the catering industry could still suffer during this very hard time indeed.

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