Stoke-on-Trent council to end in-house school catering

Stoke-on-Trent City Council is looking to end its school catering service due to high food costs.

 

An external independent review reinforced the council’s conclusion that the service is “unlikely to become financially self-sustaining in the future”.

 

The local authority said external providers could deliver a more cost-effective service due to high inflation and changing industry conditions.

 

Following engagement with several established operators through a competitive process, the council has identified Compass Group’s independent school catering arm, Lodestone House (which last year rebranded from Chartwells) as its preferred provider.

 

Schools and academy trusts in the city remain free to choose their own supplier, but the council believes that utilising Lodestone House would offer the best outcome for schools, families and staff, including reduced meal costs.

 

Councillor Sarah Hill, cabinet member for finance, anti-poverty and corporate services at Stoke-on-Trent City Council, said: “City Catering has served our schools well for many years, but rising costs and stronger competition mean it is no longer possible to run the service without significant subsidies. Schools and academy trusts can choose their own provider, and City Catering has been losing work as we have struggled to keep prices down.

 

“The independent review made it clear that meal prices would have needed to rise by more than a third to break even. That would not have been fair on schools or families. Moving to an external provider will help keep costs down and give schools better value for money.”

 

The council’s catering staff will transfer either to Lodestone House where contracts are retained or to another operator if the schools decide to choose an alternative new operator.

 

The local authority will now begin engagement with schools, staff and the preferred provider to agree next steps and ensure continuity of service.

 

Lodestone House works with more than 100 independent schools.

 

The Caterer has contacted Compass Group for comment.

 

Stoke-on-Trent City Council’s move follows similar decisions at several other local authorities including Leicestershire County Council.

 

Education caterer CATERed also recently announced it will cease trading in 2026 as a result of the “increasingly challenging” financial climate.

 

School caterer association LACA estimates that with food cost rising about 10%-20% in the last year, a reasonable cost of providing one school meal is now £3.45, far outstripping the average allocated funding across the UK of £2.93.

 

Its recent research indicated that only 19% of caterers are able to provide a school food compliant meal within the existing £2.61 funding rate in England.