Equipment hire market faces Olympic-sized demand

While summer 2012 looks set to be a bumper time for catering and hospitality businesses involved with the Queen’s Diamond Jubilee, the Olympics and associated events, operators with longer-term capital projects or refurbishment might find catering equipment in short supply.

Detailed research, compiled by independent data house Caterlyst on behalf of catering and kitchen equipment supplier PKL, has prompted concerns that there will not be enough catering hire equipment to meet the UK’s needs.

The research surveyed a pool of more than 800 cost sector caterers in December 2011 and January 2012 to determine likely levels of demand during summer 2012.

Those polled included operators working in the public sector, such as local authority, hospital and care home caterers, as well as manufacturing catering managers, contract caterers, facility managers and consultants responsible for catering projects.

The findings have prompted PKL managing director Chris Irving to urge cost sector operators, including contract caterers, to get their orders in for summer hire equipment as soon as possible.
The results reveal that 44% of cost sector operators are planning to complete projects this year involving work on kitchens and dining areas, and 38% anticipate that they will need to hire in temporary kitchens or catering equipment.

The research also indicates that the number of customers attending these high-profile events is high: 40% of operators will be catering for more than 100 people a day, while 38% estimate they will be catering for more than 400 people a day at peak times.

Irving adds: “The type of catering equipment required to cater for these numbers of people is specific and already some of these lines are seeing very high demand over the springtime.

“It is also not just catering equipment that will be in high demand, but other equipment – such as dining tables and chairs, linen, crockery and glassware.”

According to Irving, the most worrying revelation is that 90% of cost sector operators have not considered that there might be a shortage of vital equipment. Although aware that there are a limited number of suppliers, which draw on a finite pool of stock, many companies believe that the potential equipment shortage will have no impact on their summer operations.

“These operators may not have considered that they will be competing with this summer’s major events for catering hire equipment,” Irving says.

“Their hire requirements are longer term, but even so, they must get their orders in early. Those who leave ordering until later in the year risk equipment not being available to meet their needs.”

Just 17% of cost sector catering operators are currently considering or planning to order early, while 83% have not thought about it, aren’t sure or don’t believe a shortage will affect them.

Irving adds: “In any other year this would not present a problem, but it seems that many operators assume that their first choice of equipment will be there when they need it. “Summer 2012 is no ordinary time for the UK catering industry and we need to ensure that everything runs smoothly – risking equipment not being available is a headache that cost sector operators don’t need to suffer.

“This summer will see exceptional demands for certain hire items and, while PKL has made capital investment to anticipate high demand, it is likely that those who do not book early may not be able to get their first choice of hire items.

“We have more than 4,000 pieces of kit already committed over the summer months and 100 extra kitchens to deliver,” he reveals. “With only four or five major catering equipment hire companies in the UK, it’s likely that all of us will see shortages of some lines, including combination ovens, six-burner oven ranges and servery equipment.”

However, it’s not all doom and gloom. As more than 75% of PKL’s business lies outside of summer 2012 events, Irving points out that it has so far taken great care to ensure that regular customers, such as caterers in the cost sector, got their orders in early and have had their needs met.

In addition, this year PKL has set up dedicated project and operational support teams to deal with the extra demands that the Games and Jubilee will bring, ensuring that all customers continue to enjoy high levels of service.