Supply Chain

Compass To Cover Cost Of Food Parcels For UK Schoolchildren Through February

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Compass Group said on Thursday it would cover the cost of providing breakfast and lunch parcels to schoolchildren stuck at home through the February half-term break after its unit Chartwells was criticised for low standards.

With England in lockdown to control a surge in coronavirus cases, the government has asked schools to provide free lunches for eligible children stuck at home.

"In light of the recent events around the provision of free school meal food parcels by our Education sector, we recognise that the quality and quantity of some food parcels fell short of our usual high standards," catering giant Compass said.

Shared images of meagre food packages supplied to children by schools during the lockdown prompted an outcry last month and led the government to warn private suppliers to raise their standards.

Chartwells had apologised and said it would refund some money to schools.

Corrective Measures

Compass said on Thursday that after an investigation, it has undertaken corrective measures, including an improvement in supply chain processes, additional guidance, and resources, for its employees and better quality-assurance checks.

The UK-based company also reported a one-third fall in organic revenue for the December quarter after a tumultuous 2020 that was marred by school and office closures due to COVID-19 restrictions.

The world's largest catering firm said it now expects second-quarter operating margin to improve by another 50 to 100 basis points after its first-quarter operating margin rose to 2.7% from 0.6% in the preceding quarter.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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