1.
Introduction
There is a potential daily
market of over 12,000 customers for the services of the Refreshment
Department. All persons holding security passes for access to
the Parliamentary Estate (including Members and their staff,
staff of the House of Commons, Members and staff of the House
of Lords, civil servants, contractors' staff, the Press and
others working in the House) have access to one or more catering
service provided by the Department. These 12,000 passholders
and, in some areas, their personal guests and members of the
visiting public are all customers or potential customers of
the House of Commons Refreshment Department.
The principal task of the House
of Commons Refreshment Department is to provide catering services
that meet the needs of Members, their staff, staff of the House
and others working within the Parliamentary Estate. In providing
these services, the Department is primarily concerned with supporting
Members and their staff, and with supporting staff of the House
and others who are themselves engaged in either supporting the
House and its committees or supporting individual Members.
Through its banqueting services, and by providing facilities
for Members and others to entertain their guests in the House
of Commons, the Refreshment Department has a role to play in
providing access to parliament for the public. This aspect of
the Department's role will increase with the opening of the
Jubilee Visitor Café in May 2002. Through its catering
services, the Refreshment Department also provides support for
the Press and other media organisations whose purpose is to
provide information about the work and decisions of the House
to the general public.
The Refreshment Department has a secondary, but nevertheless
important, business activity in the retailing of souvenirs and
parliamentary gifts. This provides both a valued service for
Members and staff working in the House, and adds value to the
"visitor experience" when members of the public visit the House,
either through the Line of Route, or as an invited guest.
Whilst it is not the purpose of the Refreshment Department to
maintain the heritage of the premises it occupies, this is an
important responsibility for all staff working within the parliamentary
estate. Accordingly, the Refreshment Department and all staff
of the Department have a responsibility to carry out their business
activities and duties in a way that is sensitive to the heritage
of the building, its fabric, fixtures and fittings. They aim
to treat all premises, equipment and documents with care and
respect, seeking to preserve and protect these assets for the
benefit of future generations.
The Refreshment Department
operates a wide range of catering and retail services, supplying
over 1 million meals each year. Catering facilities are located
within the Palace of Westminster and in three other parliamentary
buildings: Portcullis House, 1 Parliament Street and 7 Millbank.
| The main parliamentary
catering services operated by the Refreshment Department
are: |
|
6 self-service restaurants |
Members' Tearoom, Terrace
Cafeteria, Press Cafeteria, |
|
|
Bellamy's Cafeteria and
Clubroom, Portcullis Cafeteria, |
|
|
'the debate' in Portcullis
House |
|
6 table-service restaurants |
Members' Dining Room,
Strangers' Dining Room, |
|
|
the Churchill Room, and
Press Dining Room in the Palace |
|
|
of Westminster; the Millbank
Room in 7 Millbank; |
|
|
and 'the adjournment'
brasserie in Portcullis House |
|
1 seasonal restaurant |
the Terrace Pavilion summer
buffet |
|
1 coffee/snack bar |
'the despatch box' in
Portcullis House |
|
8 bars |
Members' Smoking Room,
Pugin Room, Strangers' |
|
|
Bar,Terrace Pavilion Bar,
Churchill Bar, Annie's Bar, |
|
|
Press Bar, Bellamy's Bar |
The Department also
operates banqueting and private dining services on a commercial
tariff. A Member of Parliament or other authorised officer must
sponsor each function, and the profits from this activity contribute
towards the cost of operating the other parliamentary catering
services.
Merchandising activities
are an important source of income to the House as well as providing
a service to Members, and the Refreshment Department is responsible
for the purchase and sale of House of Commons souvenirs through
its shop, kiosks and restaurants.
2.
Plans and Achievements
MANAGING RESOURCES
2.1 FINANCIAL
PERFORMANCE
The net cost of operating the Refreshment Department is met
from the House of Commons Administration Account. However, under
the financial targets approved by the House of Commons Commission,
this cost, "the subsidy", is limited to the cost of staff
for parliamentary catering (i.e. excluding staff costs for banqueting
and souvenir services) and capital expenditure for computer
systems or other exceptional items. All other expenditure relating
to the trading activities of the Refreshment Department, including
banqueting and souvenir staff costs, is met from the Department's
trading income. The Department is tasked with delivering an
overall 5% surplus from its trading income.
Uncertainty about the precise
timing of the general election had a severe effect on business
activity levels during the first quarter, and for the remainder
of the year demand continued to remain lower than forecast throughout
all areas except the self-service restaurants. In common with
other central London venues, demand for private dining and banqueting
services remained low following the events of 11 September,
and the market was only starting to show signs of recovery in
spring 2002. Conversely, the new catering services in Portcullis
House have proven immensely popular, both in terms of customer
satisfaction and financial contribution.
Overall, more than 1.05 million
meals were served through the parliamentary catering service
in 2001- 02, an increase of 9% on last year. Banqueting turnover
in 2001- 02 was £1.5 million from 67,000 covers, a reduction
in income of £434,000 (23%) against last year, and souvenir
income also fell by 6% to £560,000.
At year-end, the Department
reported a net trading surplus of £192,000 (4.2%) against
a budget of £200,000. After incorporation of the trading
surplus into the Administration Account, the total cost of operating
the Refreshment Department in 2000-01 was £5.5 million,
against a budget of £5.7 million. This figure, "the
subsidy", represents the net cost of operating the Refreshment
Department after return of the contribution from the "trading
surplus". Key trading performance indicators are set out
in Annex 1.
2.2 FINANCIAL
MANAGEMENT
The difficult trading conditions were recognised early in the
year, and steps were successfully taken to make good this loss
through a carefully focussed programme of management initiatives:
-
the
introduction and active use of cost-centre based business
plans and financial reporting;
-
financial
awareness training for all junior and middle management,
supervisory staff and senior chefs;
-
increased
delegation of responsibility for financial performance to
middle-management and key staff;
-
quarterly
management team meetings to review performance and refocus
business strategy; and
-
overhaul
of purchase specifications and suppliers prices for key
commodities, and review of internal control systems.
2.3
HR
PLANNING
Staff costs were 5% below budget
at year-end, largely as a consequence of the dissolution of
parliament for the general election, and the continuing low
levels of banqueting business. Effective management of staff
costs is a key aspect of the Department's financial performance
targets, and work continued throughout the year to improve the
quality, timeliness and accuracy of information provided to
line managers. It is hoped that the introduction of the House
Administrative Information System (HAIS) early in 2002-03 will
help this process.
2.4
SUMMER LINE OF ROUTE MERCHANDISING OPERATIONS
The second trial opening of the Summer Line of Route attracted
over 86,000 visitors during August and September 2001. Based
on experience gained in the first year of operation, the range
of souvenirs offered to the visiting public was significantly
scaled down. A range of House of Commons and House of Lords
souvenirs, guidebooks and printed matter was available for sale
throughout the opening, with all proceeds being returned to
offset some of the costs of the public opening. Visitor numbers
were severely affected after 11 September, but despite this,
the merchandising operations returned a modest net profit.
STAFF RESOURCES
2.5 TRAINING
AND DEVELOPMENT
Apart from management development,
training priorities focussed on the development and retention
of key craft skills a crucial requirement if the Department
is to successfully attract and retain a pool of highly skilled
catering staff. A policy decision was made to concentrate on
delivering accredited training that enabled staff to achieve
nationally recognised vocational qualifications. An internal
pool of National Vocational Qualification (NVQ) assessors and
internal verifiers was trained and in place by the summer, and
the Department was registered as an approved NVQ Awarding Centre
in August 2001.
Training priorities also continued
to focus on the retention of Investors in People (IiP), in preparation
for House-wide assessment. In the meantime, the Department also
registered to commence two other kite-mark schemes: the Hotel
and Catering International Management Association's (HCIMA)
Hospitality Assured; and Excellence Through People,
awarded by the British Hospitality Association.
2.6 STAFF
SATISFACTION
In consultation with
the Trade Union Side, management appointed a firm of external
consultants to conduct a staff satisfaction survey within the
Department. All staff were invited to participate, and the results
will be used to establish a "base-line" for the future measurement
of improvements in staff satisfaction levels. An action plan
has been drafted and will be circulated to staff. In the meantime,
staff turnover reports have been introduced on a quarterly basis,
analysing leavers by work section, grade and reason for leaving.
This will enable statistical analysis to identify trends in
future.
MANAGING CUSTOMER
SERVICE LEVELS
2.7 GENERAL
ELECTION AND RECALLS OF PARLIAMENT
Detailed plans for the provision of catering services during
the dissolution of Parliament and the circulation of information
to Members following the general election were implemented smoothly.
Information was available for new Members in the reception area
in the Upper Waiting Hall; details of the catering, banqueting
and souvenir services available to Members, their spouses, guests
and their staff were issued. A pamphlet was prepared summarising
all the catering and souvenir services operated by the Refreshment
Department, their opening times and access regulations; copies
were sent to all Members, both new and returned, in the weeks
following the election.
Following the events of 11
September, the staff of the Department reacted magnificently
to open catering services for the emergency recall of Parliament
on three days during September and October, receiving less than
12 hours notification on one occasion. Their efforts were widely
appreciated by Members and management.
2.8 PORTCULLIS
HOUSE
Following their opening in December 2000, the catering services
in the new parliamentary building, Portcullis House, completed
their first full year of trading. Customer satisfaction levels
remain universally high for these new services, and have led
to an overall 20% increase in demand for the Department's services
in terms of the number of meals served. In January 2002, the
Despatch Box coffee bar opened to complement the services already
available in Portcullis House, and has rapidly established itself
as a preferred venue for informal meetings for Members and staff.
The food service concept for the catering services in Portcullis
House is not only popular with customers, but is delivering
higher financial contributions to the trading surplus than the
more traditional catering venues elsewhere throughout the parliamentary
estate.
2.9 7
MILLBANK
Following the opening of Portcullis House, the accommodation
in 7 Millbank was re-fitted for use largely for departments
of the House. A review of catering provision was undertaken
in consultation with the new occupants, and proposals drawn
up for changed opening hours and access arrangements to be implemented
in 2002-03. In the meantime, some re-decoration and furnishing
renewals were completed in the self-service restaurant and brasserie,
which have now been trading for almost ten years and seven years
respectively.
2.10 JUBILEE
VISITOR CAFÉ
The long-awaited Jubilee Visitor Café was constructed
during the year and will open in May 2002 to provide light snacks,
refreshments and lavatory facilities for visitors to the House.
The Café complex includes an area where visitors may
view interpretative material about Parliament and its work,
and live feed from the Chambers of both Houses. A short video
will be shown when the Houses are not sitting.
2.11 MANAGING
DEMAND
Towards the end of the year, the Catering Committee announced
its intention to hold an inquiry into managing demand for refreshment
services throughout the House. The purpose of the inquiry is
to enable opening hours and access restrictions to be adjusted
where necessary to enable the Department better to meet the
needs of customers within the financial and accommodation resources
available.
MANAGING INFORMATION
2.12
IT/IS
There were no major IT/IS installations or developments during
the year, and so the focus for the Department was on utilising
existing systems to maximum effect. New business systems coming
into the hospitality market continue to be appraised for future
application, and a rolling programme of replacement of existing
systems in the Department is being prepared.
2.13 INTERNAL
COMMUNICATION
Much of the internal information systems within the Refreshment
Department involve the dissemination of information to a large
number of staff and customers, with widely varying information
requirements, and, mostly, without access to computer technology.
Great emphasis is therefore placed on the prompt, effective
and consistent relay of important information and messages to
staff, backed up where necessary with access to written copies
of the communication. The staff satisfaction survey will highlight
areas of concern, where information is not being conveyed promptly
or consistently, and areas where feedback from staff is not
being relayed back to senior management. This is likely to be
a key area of focus in the forthcoming year
Sue Harrison
DIRECTOR OF
CATERING SERVICES
| ANNEX
: REFRESHMENT
DEPARTMENT TRADING INCOME & EXPENDITURE 2001-02 |
|
Trading Income &
Expenditure |
2001-02 |
2001-02 |
Variance to budget |
|
|
Actual |
Budget |
% |
|
Income (£000) |
|
|
|
|
Food |
2,864 |
3,058 |
6.3 |
|
Beverages |
1,010 |
1,144 |
11.7 |
|
Souvenirs |
560 |
625 |
10.4 |
|
Other |
117 |
92 |
+27.2 |
|
Total |
4,551 |
4,919 |
7.5 |
|
Cost of Sales (£000) |
2,640 |
2,904 |
9.1 |
|
% Cost to Income |
58% |
59% |
+1.0 |
|
Gross Profit (£000) |
1,911 |
2,015 |
5.2 |
|
% Gross Profit to Income |
42% |
41% |
+1.0 |
|
Staff Costs Banqueting &
Souvenirs (£000) |
750 |
814 |
+7.9 |
|
% Cost to Income |
16% |
17% |
+1.0 |
|
Other Expenses Admin &
General (£000) |
941 |
959 |
+1.9 |
|
% Cost to Income |
21% |
20% |
1.0 |
|
Net Trading Surplus (£000) |
192 |
200 |
4.0 |
|
% Trading Surplus |
4.2% |
4.1% |
+0.1 |
| Note: excludes
subsidised costs (i.e. staff costs for parliamentary catering
services, capital expenditure, and accommodation costs). |
|
All figures subject
to audit. |
