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Consumer preferences transforming the food and facility management sectors

India is a land of limitless opportunities. As one of the fastest growing economies in the world, the favourable macroeconomics and the changing consumer workplace trends present an incredible option for growth and prosperity.

Consumer preferences transforming the food and facility management sectors

Representation image (Photo: SNS)

India is a land of limitless opportunities. As one of the fastest growing economies in the world, the favourable macroeconomics and the changing consumer workplace trends present an incredible option for growth and prosperity. The prospects are limitless believes Vikas Chawla, Managing Director, Compass Group India. Chawla speaks to IANSlife regarding what the future holds for the group.

What are the driving forces behind Compass Group India’s mission and vision?

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Vikas: As one of the fastest-growing economies in the world, we truly believe that the opportunity we have in India is unprecedented. Not just for the organisation but for everyone associated with the ecosystem. We genuinely believe in growth and goodness.

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Regarding our vision and future, the company aims to drive significant growth coupled with substantial community impact. We aspire to expand our business manifold. Given the stage India is at and the government’s efforts, especially in the education space, where we are seeing significant sector expansion with global players entering India, we are also venturing into new verticals.

As the Managing Director, what is your vision for Compass Group India for the next 5 years?

Vikas: Looking into the foreseeable future, our intent isn’t confined to a mere five-year strategy; it is a plan that stretches far beyond that, possibly spanning the next decade. What’s remarkably cohesive throughout this plan is the balance between growth and positive impact, which I am passionate about. Our organisation, within its portfolio and group, will be instrumental in driving substantial growth in India while making a profound social impact. For instance, aim to feed a million hungry people next year, with hopes of multiplying that number manifold within the subsequent five years.

Considering our business size, I estimate that within the next five years, we will grow to about five times our current size. We anticipate significant expansion in the coming years. As for employment, even while leveraging generative AI, which I anticipate will bring efficiencies, our employee count is likely to surpass 100,000 within the next five years. This growth will undoubtedly have a considerable multiplier effect.

Are there any sustainability initiatives that Compass Group India has undertaken, if yes, can you please discuss them in detail?

Vikas: Our identity revolves around doing what is right, and fostering a culture of advocacy, transparency, and responsibility. We have a strong track record in implementing energy-saving and sustainability initiatives that showcase our commitment to sustainability without compromising quality. As one of India’s largest food and support services companies, we possess the scale, expertise, and opportunity to effect positive change. Additionally, we aim to future-proof our business through collaboration with industry leaders, making commitments to drive significant change. One of our primary focuses is on innovative strategies and technological solutions to curtail food waste. We have established impactful programs around environmental accountability such as plastic reduction, oil reuse, certifications, Stealth Health initiatives, and sourcing local agricultural produce directly from farmers for freshness, quality, and community support.

Food Repurpose Program initiatives such as transforming food waste into 150+ recipes, using vegetable and fruit peels for infused water promote sustainability, reducing landfill impact, and supporting hydration. We have recently kicked off a collaboration with Robinhood Army where excess food from specific sites is aimed to be distributed amongst the needy by their volunteers.

Committed to reducing carbon emissions, we’ve embraced solar panels, and electric transport vehicles and implemented a circular café concept that transforms kitchen and café waste into compost, cultivating fresh produce onsite for a sustainable culinary cycle.

Concerning support services, we leverage advanced technologies to provide sustainable solutions to clients across sectors. For instance, our Water Management solution helps reduce water waste by conducting thorough assessments, analyzing water consumption patterns for informed decision-making, and providing strategic consultation on waste solutions tailored to specific client needs. Compass Group India facilitates seamless online project registration with IGBC for Green Building Certification and develops and implements comprehensive energy strategies aligned with customer sustainability objectives.

Which sectors is Compass catering to and how is the organization delivering tailored services to each of those sectors?

Vikas: Dedicated to delivering exceptional culinary and facility management experiences, Compass Group India serves a diverse range of sectors, upholding world-class standards across the nation. For corporates, we bring together a blend of onsite research and knowledge about the local area and demographics, aligned with emerging consumer trends, to deliver customized & innovative culinary solutions. Furthermore, we strive to provide bespoke, healthy, balanced meals in the education sector, right through the learning journey from nursery, to higher education.

We offer an array of support services and strive to craft curated, unforgettable experiences uniquely tailored to each sector we serve. We are at the forefront of dining, facility management, and environmental services for the healthcare sector, serving hospitals across the country. We engage in close collaboration with clients from initial planning to implementation, adopting a consultative approach. We also service leading manufacturing organizations to deliver F&B solutions to their extensive workforce, with the utmost care, in terms of safety, nutrition, operational and process excellence. Under facility management, we manage not only human comfort but also asset management solutions for data centers, telecom networks, and more.

Our Remote Operations Centre (ROC) called Anubhav which means experience, provides a superior experience to our customers and is the first of its kind in the facility management industry in India. Our operations are highly distributed and therefore benefit significantly from proactive remote management and monitoring of our site operations which is enabled by our flagship facility management tech platform, SAARTHI FX. The ROC strategically enables us to gradually transition from a dedicated resource model to a shared resource model thereby optimizing costs and sharing benefits with our customers.

What are the latest trends in the food servicing and facility management industry that Compass Group India is aligned with?

Vikas: In the dynamic and fragmented Indian market, consumer preferences are steering a transformation in both the food and facility management sectors. The pursuit of specialized, innovative, and cost-effective services is reshaping these industries, driven by factors such as health consciousness, technological integration, sustainability, and customization. A Global Eat @ Work study conducted by Compass Group in 2023 across 26 countries unveiled insights into the evolving preferences of working professionals. The study highlighted that consumers are now seeking food that not only taste and satisfaction but are more willing to pay incremental costs for healthier, nourishing, and sustainable food delivery. Moreover, a holistic approach to health is emerging, with a focus on food and drinks that positively impact cognitive performance, productivity, stress management, and overall well-being. Another interesting trend in India is about the young audience moving away from the three-meals-a-day format, where over 42 percent of the working population said they prefer small portions more times throughout the day.

Delving deeper into facility management trends, the study found that employees in the Asia Pacific (APAC) region, particularly in India, place a higher value on having an employee restaurant compared to the global working population. With 34% of APAC workers ranking it among their top three staff benefits, creating on-site employee restaurants becomes crucial for organizations aiming to provide the optimal workplace environment for heightened productivity. Focus on sustainability is another emerging trend amongst Indian audiences, where 48 percent audience said they are willing to pay more for sustainable products. Recognizing the untapped potential in India’s market and fuelled by the country’s promising economic outlook, Compass Group India is poised to explore vast opportunities and establish a meaningful and impactful presence in the coming decade.

Can you share insights into the changing consumer preferences and behaviours, particularly the increasing interest in health-conscious choices related to meals?

Vikas: The increasing emphasis on health and wholesome eating is a focal point in the evolving consumer landscape. It is imperative to recognise that health isn’t a one-size-fits-all concept; it needs to be contextualised to local preferences and needs. Many Indians grapple with issues like diabetes, heart conditions, and high blood pressure. Addressing these health concerns is crucial to our approach to providing tailored and appropriate meals that align with specific dietary requirements.

According to a study conducted by Compass Group India in collaboration with Tagtaste on ‘Culinary Voices: Unveiling India’s Flavorful Palate’,62% of the respondents do not have three meals a day, which helps balance out hunger and calories. Consumers are proactively on the lookout for healthier alternatives, for example, people are looking for Mayonnaise replacement, where 47.29% of the respondents preferred a fruit & vegetable-based puree over mayonnaise. Even boiled, steamed, and poached food is gaining precedence over fried food with more than 60% of respondents preferring the former way of cooking.

Creating meals that strike a harmonious balance between deliciousness and nutritional value is paramount. Our strategy revolves around specially curated concepts focusing on key action platforms, which are nutrition, stealth health, and promoting a healthy lifestyle. We are committed to curating menus that cater to diverse health needs, ensuring that individuals can savour meals that are not only flavourful but also align with their health goals. From managing portion sizes to thoughtfully selecting ingredients that promote health, our focus is on empowering consumers to make healthier choices without compromising on taste or satisfaction. This approach ensures that we play a pivotal role in promoting health and well-being while delivering meals that are both delicious and aligned with individual health requirements.

While the trends see more people willing to embrace healthier food, it is with the underlying assumption that it tastes great. Taste is still ‘king’.

What are the challenges or obstacles that the industry is currently facing, and how does your business address them?

Vikas: A prominent obstacle lies in the industry’s fragmentation, where not everyone shares our steadfast dedication to health, safety, environment, and quality (HSEQ). Neither the institutions are investing enough to uphold the HSEQ standards required, nor the consumers are demanding enough for it. We take pride in our unwavering commitment to HSEQ, setting us apart and opening significant opportunities.

Another challenge that we are addressing revolves around talent sourcing. Despite the vast population of 1.4 billion, talent sourcing remains a positive challenge for us as we are in a cycle of high growth. Actively addressing this, we collaborate with government skill centers to not only hire but also skill them to our high-quality standards. This engagement is an expanding area of focus. Our vision surpasses mere recruitment; we prioritize nurturing and upskilling individuals, fostering a people-centric approach and a caring organizational culture. These efforts not only enhance skill development but over some time, can significantly reduce attrition rates, affirming our belief that our people are the cornerstone of our success. This emphasis on people and skill development is a key differentiator, positioning our skill centers as valuable assets for long-term success. Compass Group India remains dedicated to leveraging challenges for positive transformation and sustainable growth.

How technologically equipped is Compass Group India when it comes to the food service and facility management offerings?

Vikas: Compass Group India has made significant strides in leveraging technology to enhance its food service and facility management offerings. Our focus on technology was strengthened with the acquisition of the food-tech start-up SMARTQ in 2020, the only Food and Facility services provider in the world to make such an acquisition. Our suite of advanced digital tools—including Saarthi-FX, FoodBook App, Menu Planner, SHIELD, SQ Lens, and more—are designed to elevate operational efficiency and streamline processes. These tools play a crucial role in ensuring health, safety, and quality standards, ultimately enhancing customer experiences. These integrated tools ensure a seamless, secure, and enjoyable interaction for both clients and consumers.

We are focussing on technology intervention in the facility management services for bringing in new benchmarks of efficiencies, optimization, and sustainability. The incorporation of robotics and cobotics can be pivotal in elevating operational efficiency, reducing labour costs, and enhancing safety. From automated cleaning to lawn maintenance and building facade inspections, technology can be deployed to precision in traditionally labour-intensive tasks. Integration of drone technology can revolutionize building facade inspections, ensuring efficiency and safety in high-risk areas, while geo-fencing with robots can guarantee precise and controlled functions.

Compass Group India’s commitment to sustainability is further evident in the introduction of robotic lawnmowers that can recycle grass clippings into natural fertilizers. The SaarthiFX facility management platform reflects a dedication to efficient service delivery and enhanced profitability through streamlined operations. These technological integrations underscore the company’s focus on innovation, efficiency, safety, quality, and customer satisfaction, aligning with its mission to meet the evolving demands of a dynamic landscape in both food service and facility management domains.

How does Compass Group navigate market nuances in India’s evolving food and facility management industry?

Vikas: The fact is that India itself is a unique market, and is almost akin to many countries rolled into one. Our approach involves nurturing regional and local teams equipped with leaders well-versed in the nuances of their respective markets. This localization extends even to our food services, where we emphasise delivering regional cuisines and delicacies tailored to specific regions.

To align with the growing emphasis on health, we have implemented various strategies. Our overarching purpose revolves around enhancing the health and wellness of everyone we touch. In our culinary practices, we have many initiatives, like consciously reducing oil, incorporating healthier ingredients like millet as alternatives to rice, and even introducing concepts such as the ‘Responsible Biryani’, where a portion of rice is substituted with millet. These initiatives align with the evolving health-conscious preferences of our consumers.

Facility management in India traditionally relies heavily on manual processes, given the fragmented nature of the industry. However, we have integrated technology, such as Saarthi FX, into our operations. This digitization of facility management allows us to centrally monitor and manage our sites through a regional operating centre located in our office. This innovative approach has gained recognition within the Compass Group globally and significantly benefits both our operations in India and our clients’ needs.

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