Industrial catering market is shrinking

The global economic recession has been affecting the production and business activities of enterprises in many fields. Many enterprises have had to dissolve, reduce the scale of operations, and cut workers. In addition, high inflation, leading to increased raw material costs, are the reasons causing difficulties for some industrial support service sectors, including industrial catering services.

There are currently 8 industrial parks in operation in the province, attracting over 90,000 workers. The expansion of industrial parks has created favorable conditions for the development of the industrial catering market. However, compared to previous years, the industrial catering service is facing many difficulties and challenges. According to the feedback of industrial catering enterprises in the province, the industrial catering market has never been as difficult as it is now. At many industrial catering enterprises, the amount of meals provided to enterprises has decreased by 30-40% compared to about 3 years ago.

The reason is explained that the production and business activities of many enterprises in the industrial park are facing difficulties, the number of workers has decreased, which has led to a decrease in meals. The number of meals provided has decreased while the cost of input factors has increased, causing difficulties for industrial meal suppliers. High labor costs, continuously "escalating" prices of food, vegetables, and spices have increased the pressure on suppliers who have to both meet the quality of meals and ensure profit margins to maintain operations.

Hao Shun Company Limited (Dai Cuong Commune, Kim Bang) strives to maintain the quality and price of meals for workers during difficult times due to rising prices.

In fact, in most enterprises in industrial parks today, the price of each meal is commonly around 20,000 VND/meal. With the current high price of food and vegetables, ensuring the quality of meals for workers at 20,000 VND/meal or even lower is a big challenge for enterprises providing industrial meals. In addition, with the strong development of the 4.0 industrial revolution and the vibrant e-commerce activities, enterprises providing industrial meals in the province not only compete directly with each other but also face many challenges in the "war" for market share from large enterprises specializing in providing industrial meals in neighboring provinces and cities such as: Hanoi , Ninh Binh, Hung Yen, Nam Dinh...

For example, Hao Shun Company Limited (Dai Cuong Commune, Kim Bang), 2-3 years ago signed a contract to supply industrial meals to over 10 enterprises in Dong Van I, Dong Van II, Dong Van III Industrial Parks (Duy Tien) and Chau Son Industrial Park (Phu Ly City) with a total of over 3,000 meals per day. However, at this time, the number of meals supplied by the enterprise has decreased to about 800 meals, serving lunch for workers at 3 enterprises. Like other enterprises operating in the field of industrial meal supply, Hao Shun often signs annual contracts to supply meals. During this time, the price of meals remained unchanged, although food prices in the market fluctuated continuously due to various reasons (such as the impact of the recent storm No. 3, which caused meat prices to increase slightly and vegetable prices to increase sharply over a long period of time), while industrial catering units were not allowed to increase meal prices and still had to ensure nutrition for workers' meals. At times, Hao Shun had to cover losses to maintain operations, create jobs and income for workers.

Mr. Nguyen Huy Hoang, Director of Hao Shun Company Limited, said: Hao Shun's business motto is that service quality must always be put first. Therefore, in the past, there were units that researched and raised the issue of providing meals at low prices, not meeting the requirements for meal quality, so we did not cooperate. That is also a way for businesses to maintain their reputation and develop sustainably. Reducing the quantity to ensure the quality of meals served to workers, with this approach, Hao Shun hopes to receive sharing and price support from businesses using the service during difficult times due to "escalating" prices; at the same time, it is necessary to add other support policies such as reducing bank loan interest rates so that businesses have more resources to develop and improve service quality.

As a unit specializing in providing food and industrial meals for companies and schools in and outside the province, Thanh Dat Investment Service Trading Company Limited (Liem Chinh Ward, Phu Ly City) is no exception in the fierce competition for market share and facing many difficulties when the cost of raw materials and food increases. Although the company's livestock farming system has solved part of the raw materials for processing meals including chicken eggs, chicken meat, pork, the prices of green vegetables and other food items are constantly "dancing" and "escalating", still a challenge for the business. Ms. Tran Thi Dung, Director of Thanh Dat Investment Service Trading Company Limited said: Currently, the company is investing in large-scale farms for raising sows, pigs, chickens, and egg-laying chickens according to VietGAP standards, both ensuring quality and helping the company reduce input costs to improve its competitiveness in the market. Faced with the current difficulties and challenges in the industrial catering service industry, Thanh Dat is planning to expand the scale of livestock farms, while developing more vegetable and fruit growing areas to basically take the initiative in input materials, improve service quality, and aim to further expand market share to neighboring provinces.

It can be seen that in recent years, with the expansion of industrial zones and clusters and the number of investment projects constantly increasing, the industrial catering service industry has developed, creating a solid position in the food processing industry. This is truly a potential market for businesses to exploit and expand their operations. In the immediate future, in the current difficult period, there is no other way, businesses in the industry must strive to adapt and seek development opportunities. In addition to improving the quality of meals, ensuring food hygiene and safety, in the digital age, businesses must strive to promote their image and find new partners inside and outside the province.

Nguyen Oanh

Source: https://baohanam.com.vn/kinh-te/cong-nghiep/thi-truong-suat-an-cong-nghiep-bi-thu-hep-139444.html