Elior signs deal with Connex

24 October 2000
Elior signs deal with Connex

This morning's decision to strip train operator Connex of its south central franchise has dealt a blow to contract caterer Elior which had just signed a deal to run convenience stores at Connex stations.

Elior is creating a joint venture with newsagent and distributor Hachette to run the shops, which will sell tickets and newspapers as well as serving food and drink.

If Connex had held onto its franchise, covering south London, Surrey and Sussex, about 400 stations would have been covered by the agreement. Now there will be just 200 stations, across the company's remaining south eastern franchise.

Patrick De Muynck, head of corporate development at Elior, said the make-up of the stores would depend on the size of each station. Larger stations could have a separate coffee and sandwich shop.

Connex has already been piloting the idea at two stations, Leatherhead in Surrey and Cooden Beech in Sussex.

De Muynck said the stores would replace the ticket office in a lot of stations. Connex staff would be retrained in retail skills.

The first pilot stores run by the joint venture will open within five to six months. The rest will be opened gradually over the next five years, with most being built between year one and year three of the agreement. Each store will have its own contract with Connex.

The joint venture will invest an average £50,000-£80,000 in fitting out the shops.

Said De Muynck: "This fits perfectly into our strategic development into the concession business."

Elior UK is opening its first outlet in a motorway service area at the end of November and is also about to open its third concession within a museum.

In France, Elior is already one of the biggest operators of railway catering outlets.

All three companies involved in the project are French-owned. Hachette is the largest newspaper distributor in France. Connex is owned by the Vivendi conglomerate.

by David Shrimpton david.shrimpton@rbi.co.uk

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