Sep 18, 2025
Mergers and acquisitions (M&A) have always been part of the contract catering world - but in recent years, M&A activity has accelerated. From billion-euro exits to independents joining forces with larger groups, consolidation is reshaping the landscape. Newest example being Compass Group's acquisition of Vermaat for €1.5 billion.
In this Served. panel talk, we sat down with two experts who know both sides of the table: Graeme Smith, Corporate finance specialist at AlixPartners, and Ruston Toms FIH, Co-Founder and Former Director of Blue Apple Workplace Catering , who sold his business to CH&CO which then got acquired by Compass Group.
The Blue Apple Journey
Ruston’s career began in the kitchen before moving into catering management at Heathrow and Wimbledon. But after years in corporate catering, he grew frustrated with what he called “catering by numbers.” In 1998, he co-founded Blue Apple with a business partner to create a more flexible and client-focused service.
“We started from our living room with a small loan. We always felt we could do it better - tailoring service, flexing supply chains, and building stronger relationships with clients.”
Over 26 years, Blue Apple grew steadily by reinvesting profits, staying selective about clients, and sourcing locally. Their approach meant that even when contracts were lost to cheaper competitors, many clients later returned, valuing quality and trust over short-term savings. Blue Apple in the end got acquired by CH&CO.
Why M&A Thrives in Catering
Graeme explained why M&A deals have been particularly successful in catering compared to restaurants. The sector’s resilience, he said, comes from structural advantages like cost-plus contracts that shield operators from inflation.
“Clients see caterers as strategic partners - helping them solve problems like supply chain disruption, food price inflation, and even encouraging employees back to the office,” he noted.
He added that caterers already excel at integration:
“Winning a big contract means onboarding teams and clients overnight. That’s the same skill you need for M&A - just at a larger scale.”
The Role of Independents in a Consolidating Market
While the largest four caterers have been growing nearly twice as fast as the market average, both Graeme and Ruston agreed that independents still have an important role to play.
“There will always be room for independents,” Graeme said. “Clients want to see a mix on tender lists - the big groups, but also challengers who can offer something different.”
Ruston pointed to new startups emerging now:
“I can think of four or five following the same journey I did. Independents win by sourcing locally, being flexible, and creating dining spaces that bring people together.”
Preparing a Business for Sale
For founders, preparing a catering business for sale is about much more than financials. Graeme emphasized that buyers look for momentum, solid operations, and strong teams:
“The most important thing is to keep running the business as if you’ll never sell it. Buyers want to see growth and resilience - not a founder who’s the single point of failure.”
Ruston added that Blue Apple kept its senior management incentivized and engaged throughout the process:
“The due diligence is long and exhausting. We wanted our people to benefit too - many had been with us over 10 years. It wasn’t right for the founders to walk away with everything.”
Life After the Deal
Selling to a larger group inevitably changes things for employees. Ruston said the biggest difference for Blue Apple staff was the career progression opportunities that came with being part of a larger organization.
But integration can also create uncertainty. Graeme warned:
“In the absence of communication, people assume the worst. The best approach is to over-communicate - make day one feel like business as usual, then gradually align systems where it makes sense.”
For both clients and staff, continuity and culture remain the most important ingredients for a successful transition.
Key Takeaways
M&A in Contract Catering is here to stay - structural advantages and great track records of integration makes the industry attractive to do acquisitions in. Graeme predicts the level of acquisitions to stay around current level.
Independents still matter - clients want boutique options alongside global giants.
Preparation is critical - growth, clean operations, and strong teams drive value.
Integration is about people - clear, consistent communication avoids uncertainty.
Final Thoughts
Contract catering is consolidating, but independents continue to play a crucial role in driving innovation and client choice. For founders, the real differentiator isn’t just EBITDA multiples - it’s culture, relationships, and a sustainable growth story.
