The Commercial Catering ‘shake up’ is here and been brewing for a while – what 2022 holds

The Commercial Catering ‘shake up’ is here and been brewing for a while

What 2022 holds

The last few months in the commercial catering world has been a hive of behind the scenes activity and jostling for position in a stayed market, as the pandemic has accelerated senior management team’s collective inertia or depending on who you talk to, the more fashionable ‘agile pivot’. Perhaps, some of these recent moves could be more accurately described as being wedged into a corner through previous strategic and/or marginal decisions (made under relatively normal and even buoyant times), come home to roost in less than exceptional times. But while the congratulations, back slapping and commiserations are shared around – who is actually looking after the customer? Let’s find out.

It is a serious question as to what has been the best outcome this year for commercial catering and depending on your perspective – customer, competitor or winning/losing caterer the answer is not crystal clear. However, not missing an opportunity these companies are on the front foot putting a positive spin on the ‘big win’, ‘strategic acquisition’, ‘great synergy’ and my personal favourite ‘a genuine partnership’, while we cautiously pin our hopes that in all the horse trading and deal making the customer has not been lost in the shuffle – where is the customer and what benefit will they see?

If we are being honest, we should start with the standout ‘big win’ of the year (and arguably the last 5 years) with the Sydney based Merivale group taking the gong for winning the SCG for the next 6 years (along with Sydney Football Stadium in mid-late 2022). With Justin Hemmes ever expanding retail pub, bar and restaurant hospitality group now poised to bring the most exciting food concepts/brands and offers to the masses, we see the realisation of what Future Food has always advocated for – bringing elevated high street standards to the table while still providing a range of approachable and affordable options. The customer will tell you how they want to spend, just give them the opportunity and of course, make it memorable! 

The Merivale group join forces with the SCG

Merivale’s Opening Line-up at the SCG

  • Jordan Toft's Coogee Pavilion style salads and healthy options

  • Dan Hong’s Mr Wong dumplings and cheeseburger spring rolls

  • Danielle Alvarez's (Fred’s) hot Spanish bocadillo sandwiches

  • Ben Greeno's (Paddington & Hotel Centennial) fried and rotisserie chicken

  • Mike Eggert's (Totti’s) meat pies and burgers.

  • Bistro 1886 – a Felix inspired restaurant in the Members' Pavilion.

  • Smokehouse – sports bar with craft beer and ‘smoked’ dishes.

  • Vinnie's Pizza – deep dish-style



"All the chefs have been collaborating on ways to deliver the best food and beverage experiences possible within the constraints of the cricket ground," said Mr Hemmes. "The aim has been to provide restaurant quality food in a stadium environment while making sure it's affordable and accessible." [1]

Justin Hemmes

At the same time Delaware North has lost the SCG to Merivale, Melbourne has also seen a changing of the guard at the MCG with Delaware replacing Spotless as the caterer at the grounds with a 7 year contract starting in April 2022. It would seem that with Marvel Stadium and Melbourne Olympic Park also operated by Delaware, the company has sewn up the Melbourne stadia market, with Marvel stadium currently under construction with a $225 million upgrade including a “Town Centre” concept [2] at the Bourke street end.

The company announcement has promised to leverage its overseas experience to: ‘create a mix of locally recognised brands that encompass a best-of-Melbourne approach to complement fan favourites and enhance the guest and member experience. Additionally, the company will bring new service styles and customer-facing technologies to the MCG’ [3]

The customer food and hospitality experience has improved markedly at Olympic Park in the past 5 years with the inclusion of the best Melbourne high street operators in the food park with Delaware’s retail F&B and catering activities continuing to adapt and provide approachable food and crowd pleasing options. Through 2022 the stadia food and hospitality experiences will be one to watch, perhaps igniting the Melbourne vs Sydney rivalry, ultimately, Cricket and AFL fans who frequent the three venues will tell the tale.

Peter Rowland Group at the Marriot in Docklands

It has also been a good year for the ‘come back kid’ Peter Rowland Group, as they won a few contracts that stick well within their knitting while adding serious coffee & food credibility acquiring Sensory Lab, relaunching David Jones food halls in Sydney & Melbourne and most recently taking over all the food, beverage and functions for Marriot in Docklands (through a major investor in both). Suffice to say they are set for a couple of big years and they may not be done yet and on face value the customer looks to be central to their strategy.

MoDu by Peter Rowland Group at David Jones

Has to be said that even the big kids on the block have been playing nice (within reason) pulling out their wallet to buy entire company sector portfolios - education, hospital & aged care, business and leisure all bought lock stock and barrel. Sodexo refocused its attention on energy and resources by divesting $68 million (2021)[4] worth of contracts its education, aged care and corporate services to Compass. This is a tidy sum to instantly inject into the top and bottom line, with Compass supply chain (now a sperate entity) able to maximise purchasing and generate even more value. Compass will be seeking to maximise the opportunity, wining clients over and retaining the contracts long term as they naturally come up for renewal while making an impact on the customers with a diversity of modern, on trend food and service.

After years of flagging revenue and poor realisation of synergies, Downer-Spotless had been shopping around since May 2021, some 210 hospitality sector contracts worth an estimated yearly revenue of $244.4 million [5] which is reportedly has an estimated purchase price of $100 million. It would appear, from industry insiders, that the Trippas White Group in Sydney have snapped up the portfolio, which would launch them onto the national stage. TWG has been excelling recently in Sydney with several great retail bar concepts in iconic spaces – Queen Victoria Building Sydney and Sydney Tower. While this will be new territory for TWG, it improves the competitive environment nationally.

SkyFeast at Sydney Tower by the Trippas White Group

With Future Food running a number of Expressions of Interest campaigns across the country at the moment, we have also seen the mid-tier catering company segment heating up with many state based companies seeking to consolidate their standing in their respective states and expand across the boarders in a sustained and enduring push to add new and targeted accounts that play naturally to their strengths. This set of operators like - Create Catering, Fresh Collective, GEMA, Catering HQ, Zouki, Lifegrain (formerly The Street Canteen) - have weathered COVID and are hungry to take on new accounts and new challenges offering a personalised service that is hyper focused on creating food and hospitality experiences for customers in their respective sectors.

Wok On at Catering HQ

On face value, 2022 is guaranteed to bring a welcome range of new customer experiences for clients and stadia in particular with the customer squarely at the centre of the catering and hospitality proposition. For other commercial catering clients who find themselves with another operator not having gone through a tender or EOI process, there will be mixed feelings without the added benefit of an improved customer offer & experience and only the promise of a ‘smooth and seamless transition’ in a genuine partnership.   

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[1] https://www.goodfood.com.au/eat-out/news/a-bistro-craft-beer-and-dumplings-merivale-confirms-its-menu-plans-for-the-scg-20211118-h1zv5q

[2] https://www.afl.com.au/news/524968/town-square-night-market-more-must-see-plans-for-225-million-marvel-stadium-upgrade

[3] https://www.ausleisure.com.au/news/mcg-appoints-delaware-north-as-hospitality-services-provider/

[4] https://www.fmmedia.com.au/sectors/news-compass-sodexo-transfer/

[5] https://www.afr.com/street-talk/downer-shops-244-4m-yearly-hospitality-contracts-to-rivals-20210511-p57qq0

Image credits

The Oyster Bar at David Jones by Peter Rowland Group: https://www.peterrowland.com.au/food-news/david-jones-elevates-in-store-dining-experience/

The Merivale group: https://www.scgt.nsw.gov.au/sydney-cricket-ground/whats-on/news/merivale-and-scg-to-join-forces/

The Merivale group: https://www.instagram.com/merivale/?hl=en

SCG: https://www.linkedin.com/company/sydney-cricket-ground/?originalSubdomain=au

Peter Rowland Group at the Marriot in Docklands: https://www.peterrowland.com.au/food-news/david-jones-elevates-in-store-dining-experience/

Modu at David Jones: https://www.peterrowland.com.au/food-news/david-jones-elevates-in-store-dining-experience/

David Jones: https://www.peterrowland.com.au/food-news/david-jones-elevates-in-store-dining-experience/

SkyFeast at Sydney Tower by the Trippas White Group: https://www.instagram.com/skyfeastsydneytower/

Wok On at Catering HQ: https://www.instagram.com/cateringhq/