F&B in Trains: Driven by Logistics

 
Europe’s biggest train operators have invested a lot of money to improve their F&B services in recent years. Many of them have outsourced the sale of food and beverages on board to professional caterers who pursue the in-train foodservice business on a national and, sometimes, international plane. Nevertheless, train catering is a profit centre only in very rare cases. Rather, high-quality restaurant cars and friendly at-seat catering represent an effective marketing tool via which train operators can distinguish railway travel from their competitors, the car and aeroplane. Pampering not simply providing is the motto for relaxed travel in 2008. The main challenges to realisation: logistics and quality.
 

 
Germany
 
As good as written off at least five years ago, German Rail’s (DB) on-board catering is now on a sound footing. In 2002, on-board catering was integrated into the parent company, where the decision was initially taken to progressively scrap on-board restaurants, a decision, which was later reversed. In the wake of massive customer protests, the buffet cars were allowed to stay and became the target of a comprehensive quality and marketing offensive, which is still ongoing. And with success – in 2004, revenue from on-board catering rose by 7.5% over the previous year and positively sparkled in 2005 with a 16% increase. Following another exceptionally good year in 2006 (Football World Cup), the sector suffered a decline of 3.8% in 2007 ringing up sales of €90.8 m – it proved impossible to compensate for the losses caused by the new ban on smoking in the on-board bistros and industrial strife on the railways by changes in the assortment and campaigns with celebrity chefs.
 

 
Background: in particular, the buffet cars on ICE trains, which offer seating and full service, are representative of the type of perceived comfort German Rail customers appreciate as an important aspect of the travel experience – albeit one they do not necessarily take advantage of. Although only 5% of long-distance travellers dine in the on-board restaurant, the food service option is not an insignificant factor when it comes to the choice of transport medium – rail, road or air. The maxim of Dutch-born Robert Etmans, who, as Director of HR and On-Board Services,has been in charge of catering on German Rail trains since January 2004, is to turn a set piece into a free section. Under his management, on-board food service has emphatically picked up speed. Three things lie behind this – an increase in passenger numbers, particularly long distance travellers; a consistent, ongoing policy of promotion activities and finally the price factor as well as an enhanced overall quality profile for the 200 fullservice, on-board restaurants with adjoining bistros on ICEs and 180 stand-alone bistros on Inter- and Euro-City trains.
 

 
Etmans and Tanja M. Schlesinger, who was appointed Manager of On-board Services in September 2007, have clearly established one thing: “Cheap isn’t our bag. We are single-mindedly banking on quality. In communications as well as in performance.” In competing with the growing number of low-price, take-out offers available at railway stations – key word ‘Coffee to go’ – German Rail is in principle the runner-up, taking the bull by the horns, banking in the main on their on-board bistros. Etmans: “In terms of earnings, 36% of total sales are generated in the restaurants.Our bistros account for 37%, with the balance from at-seat service and mobile sales via ‘snack-caddy’ and sales trays.” It is estimated that over two-thirds of customers using on-board restaurants are first class passengers. “This is our core target group and we want and must gear our profile and on-board catering range to them.” On ICE trains and practically all other long distance trains, German Rail offers first class passengers at-seat service. In addition, light snacks and drinks are also available in second class on many trains.
 

 
Read in the full article more about the following countries:UK/Ireland, France, Spain, Italy and Russia
 

 
| 12 February 2008 |