Sound familiar?
Corporate catering is a contract business. You win an account, you build your operation around it, and then the client moves office, cuts the programme or puts it back out to tender. The kitchen you signed a lease on for that account is still there. So is the rent.
Ask most operators what their production space costs and you'll get one number: the rent. It's the figure on the lease, the one that went into the model. It's also, on current modelling, under half of what the space actually costs to occupy. The rest arrives separately, in pieces:
- Business rates
- Waste management contracts
- Pest control
- PPM and servicing
- Building insurance
- Water
Read: The hidden costs of a self-managed kitchen: what your rent doesn't tell you