NESTLÉ COFFEE PARTNERS: A COMPLETE GUIDE TO CATERING, COFFEE & CUSTOMER COMFORT IN HEALTHCARE

A COMPLETE GUIDE TO

CATERING, COFFEE & CUSTOMER COMFORT IN HEALTHCARE THE SMALL CHANGES THAT WILL HAVE A BIG IMPACT

NESTLEPROFESSIONAL.CO.UK/COFFEE

INTRODUCTION

THE HEALTHCARE SECTOR HAS WEATHERED UNPRECEDENTED CHALLENGES IN RECENT YEARS As the initial wave of the covid-19 pandemic fades into the distance, healthcare and care facilities throughout the UK, most notably the NHS, continue to face ongoing challenges.

But, as the public and private health sectors continue to navigate their way through, healthcare caterers around the country are actively looking to elevate their beverage offering. Exploring how they can meet the needs of staff, visitors and patients and enhance their beverage experiences.

Taking a deep dive into coffee provision in particular, this research report has been created by speaking to healthcare catering professionals to reveal a collective viewpoint on the current state of catering services, analysed alongside the consumer demands of today.

Featuring an exclusive interview with Tim Radcliffe, Net Zero Food Programme Manager at NHS England, the report provides healthcare caterers with practical guidance on how consumer needs could be better met and highlights existing opportunities to elevate the overall hot beverage experience.

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ABOUT THE SURVEY In 2023, Nestlé Coffee Partners commissioned a survey of catering professionals across public and private healthcare. The survey participants were from across the UK, with significant experience in the sector.

The aim was to uncover key insights into what they believe motivates consumers to make hot beverage purchases whilst visiting and working within hospitals and healthcare facilities.

THE FINDINGS HAVE HELPED TO IDENTIFY OPPORTUNITIES ACROSS FIVE KEY AREAS:

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Round-theclock needs

Coffee as a means of comfort

The importance of quality

The power of choice & satisfying dietary needs

Sustainable alternatives

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KEY FINDINGS THE RESEARCH FOUND THAT THE MOST COMMON FACILITIES OFFERING HOT BEVERAGES IN HOSPITALS ARE: restaurants

cafés

52%

76%

newsagents

staffrooms

44%

52%

staff canteens

vending machines

60%

92%

mobile coffee carts

independent coffee shops

8%

4%

self-serve coffee machines (real coffee beans and milk)

branded coffee shop chains

44%

28%

NESCAFÉ self-serve solutions with freshly ground coffee beans

ROUND-THE-CLOCK NEEDS

92

%

of healthcare catering professionals think it’s important to provide access to hot beverages 24/7 .

Hospitals operate round the clock, but the majority of catering facilities within them – be it kiosks, cafés, restaurants or retail – are often confined to more traditional 9-5 opening hours.

This gap in provision leaves staff - and sometimes visitors and patients - with limited choices during the evenings and early mornings, but also means doctors and nurses can be working extended, late hours without valuable opportunity to take a break, rest and replenish.

The significance attached to providing these moments is underpinned by almost all (92%) of the catering professionals surveyed believing it’s important to provide access to hot beverages in healthcare settings 24/7.

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Despite an overwhelming number of hospitals having vending machines in various locations, the hot beverage offering is still considered to be limited in terms of out-of-hours access and unreliable when it comes to the performance of the machines themselves.

Of those surveyed, under half (44%) have convenient access to self-serve coffee machines and only 52% said those working in their hospital(s) have access to a staffroom. This leaves people with limited options for a break, especially when working night shifts.

Sometimes the vending machines go wrong and after 8pm there is nowhere to get beverages.

Our vending is out to contract; the quality isn’t good and the machines often run out of stock.

As a result of these limitations, a third of people surveyed feel their hospital doesn’t provide adequate beverage options out of hours for those needing them. These combined findings reveal untapped opportunities for catering providers to meet demand from both staff and visitors by extending their service beyond conventional 9-5 operating hours.

Opportunities: I mprove access to high-quality hot beverages with 24-hour self-serve machines placed in both high traffic areas and in locations that are furthest from current beverage facilities, ensuring staff in particular never need to go out of their way.

Tempt customers with a more premium coffee offering by upgrading traditional drinks vending machines to higher quality, self-serve options wherever possible.

Equally as convenient as vending machines, the bean-to-cup process promises a much more authentic coffee experience.

how consideration S for those working long shifts by ensuring there are comfortable places to sit and relax out of hours while enjoying their hot drink.

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KEY FINDINGS

COFFEE AS A MEANS OF COMFORT

96

%

of healthcare catering professionals feel that hospital catering is fundamentally important for visitors’ wellbeing.

In the healthcare setting, where patients and visitors often find themselves in stressful and unfamiliar surroundings, and hospital staff are under pressure and exhausted, even the simplest of comforts can make a significant difference.

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Hospital catering aids wellbeing.

Some visitors can be hanging around for long periods of time – even days. They need and deserve a good catering facility.

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Yet, despite this strong desire to provide good catering facilities for visitors and staff, less than one-third of those surveyed (28%) offer a branded coffee option.

2023 UK consumer trends show that coffee drinkers are attracted by brands, with the main purchase drivers for coffee being familiarity and indulgence.1 This presents healthcare caterers with an opportunity ready to be unlocked.

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The Coffee and Coffee Shop Industries: What Consumers Want in Coffee, Mintel, July 2023

Whether through the inviting atmosphere of a café, or the convenience of self-serve coffee machines, healthcare caterers can utilise well-known high street names to drive an elevated beverage experience, whilst also adding that sense of reassurance and comfort that comes with brand familiarity.

In addition to the hot beverage offering itself, the need for comfortable spaces where people can sit away from the wards has been strongly voiced by hospital visitors in surveys such as those undertaken by Net Zero Food Programme Manager at NHS England, Tim Radcliffe and his team.

Opportunities: rovide a sense of reassurance P and comfort with a branded hot beverage experience.

Give people the space to take a moment to relax with an inviting and friendly café environment.

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KEY FINDINGS

THE IMPORTANCE OF QUALITY

64

%

of healthcare catering professionals believe staff and visitors are largely satisfied with the current beverage offering.

This highlights the opportunity to continuously improve this area despite budget challenges - with 60% citing rising costs as their biggest area of concern. When faced with adverse economic factors, making positive changes to the catering service can feel difficult. However, the research also points to real positivity within the sector showing that the hard work and effort being put in by healthcare caterers isn’t going unnoticed.

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The introduction of the Hospital Food Review recommendations has improved overall catering.

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Our patient catering has always received high praise. Great efforts have been made to make the staff and visitor options as good as some of the high street names.

We’re always trying to improve.

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The significance of offering well-known, trusted brands was frequently emphasised as a key contributing factor to high levels of satisfaction, particularly in terms of quality and affordability.

In the UK, 55% of consumers agree that premium coffee is an affordable luxury which they are willing to pay more for. The lipstick effect – consumers’ willingness to spend on small indulgences during an economic downturn – is something that cafés can tap into and use to their advantage by offering a more premium experience that appeals to their customers. 2 Premium high street brands also enable caterers to generate increased revenue and margins.

Freshly prepared food and beverages and diverse menu options were also credited by respondents as having a positive impact on consumer perceptions.

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Premium self-serve solutions from the We Proudly Serve Starbucks® Coffee Programme

Opportunities: oost consumer B confidence in your coffee offering by introducing a quality, trusted, well-known brand.

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rive incremental sales D with a premium hot beverage offer that consumers are willing to pay more for to enjoy.

rive awareness D and footfall with clear signage and communication around the key areas that impact consumer satisfaction: brands, diverse menu options, freshly prepared food and beverages.

The Coffee and Coffee Shop Industries: What Consumers Want in Coffee, Mintel, July 2023

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KEY FINDINGS

THE POWER OF CHOICE & SATISFYING DIETARY NEEDS

60

%

of healthcare catering professionals believe hospital beverage options cater well for all dietary requirements.

As changing tastes and trends continue to develop, it’s clear that the coffee offering within hospitals needs to keep pace with demand. People arrive in hospitals from all walks of life, so providing high-quality and diverse options that cater to an entire spectrum of dietary preferences, beverage trends and cultural backgrounds is essential.

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Non-dairy options and allergen information is well managed.

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Dairy-free milk alternatives, including oat, almond and soy, are now deemed a basic requirement, with nearly half (48%) of UK consumers drinking at least one plant-based milk alternative.3 With 40% of respondents feeling there is more to be done and some citing that their offering ‘needs expanding’, there is an opportunity for healthcare caterers to improve through providing a variety of choices, meeting the needs of their consumers.

Cold and iced beverages continue to build momentum in the UK. 19% of UK consumers indicate they drink more cold coffee than hot overall, 4% higher than last year.4 With 61% of UK consumers indicating they like to try new iced beverages,5 there is real potential for hospital caterers to grow their iced coffee offer. However, high expectations and constrained consumer spending means iced options must be on point when it comes to quality.

Opportunities: rive sales and footfall D by providing consumers with a choice of plantbased milk alternatives in your café spaces.

levate the consumer E experience by offering them the opportunity to customise their beverage where possible.

Ipsos, Making a Plant Based Future, 2022 World Coffee Portal, Cakes, Shakes & Tea Breaks UK, 2023 5 World Coffee Portal, Cakes, Shakes & Tea Breaks UK, 2023

atisfy the growing S desire for iced coffee, particularly among the under 35s, with a range of iced options.

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KEY FINDINGS

SUSTAINABLE ALTERNATIVES Ethical credentials are growing in importance and the relevance to healthcare providers is no exception.

Our planet’s wellbeing is closely tied to our own, making it vital for catering providers to demonstrate how they’re making a positive environmental impact, particularly within a healthcare space.

Respondents showed that they were very well aware of the significance of ethical credentials and believe they should be a driving force for improvement in the years to come. Changing customer habits is seen as a key part of that journey.

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We think we can improve our hospital beverage facilities in future by introducing reusable cups with a loyalty card to encourage staff and visitors to go green, reducing plastics as a result.

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DEMONSTRATING SUSTAINABILITY COMMITMENTS WITH EASY TO IMPLEMENT STEPS: ap into the collective consumer conscience by ensuring your coffee partner has ethical T practices that you can shout about in your consumer communications. how a commitment to forming better habits and working towards a greener future S with your customers by implementing reusable or recyclable cup options. ake a strong statement by eradicating single-use plastics in favour of sustainable M and ethically sourced packaging.

I ncentivise customers to think green with rewards for using their own cup or returning their disposable cups to be properly recycled. rial a cup rental scheme (such as the one outlined by Tim Radcliffe, Net Zero Food T Programme Manager at NHS England, on the next page).

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WHAT SUSTAINABILITY LOOKS LIKE IN HEALTHCARE CATERING Tim Radcliffe, Net Zero Food Programme Manager at NHS England, addresses the challenges faced in hospital catering, explores the current sustainable food and beverage choices available and looks at emerging trends within the sector that contribute to the reduction of carbon footprints.

Bringing 30 years of corporate, military, hospitality and restaurant ownership experience, Tim took on his role as Net Zero Food Programme Manager for NHS England in August 2022.

Since then, he has worked directly with NHS trust catering teams, assisting and offering guidance in reducing their carbon footprint to align with the broader NHS objective of achieving net zero emissions by 2040.

As part of this research, Tim shared the key areas of focus that his immersion within the sector has revealed and where he feels actionable change can be made.

CHALLENGES FROM THE TOP DOWN According to Tim, three key factors impact the efforts to reduce emissions in healthcare catering: staffing, budgets and communication.

“Staffing impacts everything,” says Tim, “because as much as we can give the right messages to managers and teams within the NHS, if they don’t have enough staff to do what we’re encouraging them to do to reduce their waste and positively impact customers, they will struggle to do it.”

What’s more, limited budgets hinder investment in environmentally friendly equipment and practices. “Budget constraints are difficult,” says Tim. “It is inevitable that the catering budget is one of the ones that gets squeezed first. That has quite an impact.

If you haven’t got money to invest that will assist or reduce your carbon footprint, you’re always going to be behind.”

Thirdly, Tim identifies effective communication as essential to ensure that healthcare caterers understand the significance of sustainability. “We’re very good in the NHS – and wider hospitality – at telling people what to do. But to get engagement, people need to know why. Between the government saying, ‘we need to be net zero by 2040’ and the catering assistant and kitchen porter doing their jobs, the ‘why’ tends to get lost.

“We’re going to sites and getting hospital caterers involved, holding a lot of webinars for more direct engagement and looking to incentivise younger people to join the Hospital Caterers Association through more accessible membership, so that they are part of these conversations from early on.”

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SWAPPING OUT SINGLE-USE IN HOSPITALS To reduce waste, several hospitals have initiated trials to eliminate single-use cups, cutlery and takeaway boxes. One hospital has implemented a token rental system for cups, where you pay for the use of the cup and, if you are not going to visit again, you simply return the cup for a refund.

“The benefits are really quite stark,” says Tim. “If you have a large hospital that buys 40,000 disposable cups every week of the year, that’s 40,000 cups that need storing.

If you purchase reusable cups, which you then sell to your hospital’s staff, you don’t need to store anymore.

“It’s a one-off purchase which becomes cost neutral, therefore you no longer have those 40,000 cups going into your waste stream every week. Cleaning gets easier because you haven’t got spillages or people putting things into bins, which then need to be emptied.

Ultimately, your carbon footprint reduces because there aren’t deliveries twice a week for 40,000 cups. There are therefore a lot of benefits that come from one simple switch.

“The trials we’ve conducted on the first three hospitals have been positive and we will soon have data to see how quickly that drives change.”

Reducing the need for single-use is even easier if visitors are provided with a seated, café environment. Surveys conducted by Tim’s team have indicated that most visitors prefer to eat and drink in the place where they buy their food, rather than opting to take it away.

Tim explains, “They’re using the available crockery and cutlery rather than requiring a takeaway cup, for example.”

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‘NUDGING’ TOWARDS SUSTAINABLE CHOICES Tim recognises that changing dietary trends among staff, visitors and patients in healthcare facilities requires caterers to look at alternatives.

From a coffee perspective, consumers are already embracing the lower carbon, non-dairy alternatives to cow’s milk, often due to simple taste preference. So, ensuring that those options are always available is an easy win when it comes to sustainable catering choices.

Tim’s team is also developing a low-carbon collection of recipes based on pulses, legumes and reduced meat content.

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ELEVATING THE COFFEE EXPERIENCE Providing free coffee to staff during the pandemic has created an ongoing expectation and a strain on budgets. “Staff in some hospitals believe they should get hot beverages for free, but you can’t afford as a catering team to buy premium coffee to give away,” says Tim. Outside of this challenge, Tim suggests offering branded coffee options that justify premium pricing and enhance the visitor experience, and tapping into underexplored opportunities where demand is clear, such as iced coffee offerings.

Ultimately, he stresses the importance of NHS trusts also enhancing the overall experience by offering a variety of high-quality products at reasonable prices. He says: “It’s all about encouraging a better visitor experience, by giving them the best possible product, at the best possible price.”

Despite all the challenges, a sustainable future in healthcare catering is attainable.

Clear solutions exist and it requires collaboration, innovation and commitment to implement these to ensure an improved customer experience for staff, visitors and patients.

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FOCUS ON SOLUTIONS

A GUIDE FOR MAKING THIS INSIGHT WORK FOR YOU Against a backdrop of rising costs, offering reliable, convenient and quality beverage options across hospitals is key for supporting the overall experience and driving incremental income.

Whilst the needs of staff and visitors may vary, the opportunity to provide solutions that work for all is crucial.

PROVIDE 24-HOUR ACCESS There is a clear need to provide adequate out-of-hours, 24/7 beverage choices for both staff and visitors.

Consider introducing increased overnight hot beverage availability and quality self-serve options in locations across your hospital(s).

HIGHLIGHT QUALITY WHILST OFFERING VARIETY

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PROVIDE COMFORT WITH A TRUSTED AND FAMILIAR COFFEE OFFERING Catering is considered ‘crucial’ for the wellbeing of staff and visitors, yet some dissatisfaction with the current offering suggests an opportunity for improvement. Prioritise hot beverage options that provide feelings of comfort by bringing in those familiar, high-street experiences your customers enjoy in day-to-day life.

Quality hot beverage options alongside value for money can be difficult to get right.

CHAMPION SUSTAINABILITY

Giving consumers a premium hot beverage from a well-loved brand gives them confidence in their choices.

In addition, offering a variety of dairyfree alternatives like oat, almond and soy as well as iced coffee options demonstrates responsiveness to consumer needs and allergies whilst still providing choice.

Growing demand from consumers means sustainable options are considered non-negotiable. Audit your current catering offering and seek out opportunities to introduce sustainably sourced choices throughout. Attempt to remove single-use cups, cutlery and takeaway boxes and drive awareness of your commitments through point-of-sale in those locations.

SERVED SOLUTIONS TO PROVIDE COMFORT Give staff, visitors and patients a café environment they can enjoy throughout the year.

A place of comfort to meet others and share coffee moments, escape the stresses they may be facing or simply take a well-earned break.

SELF-SERVE SOLUTIONS FOR 24-HOUR ACCESS Premium self-serve solutions can provide visitors, staff and patients with access to high quality beverages in all areas of your hospital throughout the day and night.

Suitable for both high traffic and remote locations, user-friendly espresso technology and free-vend or cashless payment options mean they are the ultimate in convenience.

BREWED SOLUTIONS FOR ALL ENVIRONMENTS Offer premium brewed coffee conveniently in meetings and the reception area of private clinics. This way, anyone can enjoy quality coffee moments, wherever they are in your building.

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Nestlé Coffee Partners offers a range of brands and solutions including the We Proudly Serve Starbucks® Coffee Programme and NESCAFÉ Beverage Solutions.

If you’d like to talk through any of what you’ve read and explore how we can help you leverage the insight we’ve shared in this report, or if you’d simply like to catch up over a coffee, we’d love to hear from you.

We’re available at: Claudine.Bergeron-Girard@uk.nestle.com Ruth.Rudkin@uk.nestle.com