CATERING
Risks and Crisis Issues for
International Corporations in the Catering Sector
Sector – BRICS Countries
The catering sector in BRICS countries offers expanding opportunities driven by urbanization, rising disposable incomes, and demand from institutional clients such as schools, hospitals, and corporate offices. However, international corporations entering this space face significant operational and regulatory risks. Health and safety compliance varies widely across regions, and enforcement is often inconsistent, exposing firms to reputational damage or forced closures. Additionally, catering contracts in public and private sectors are frequently politicized, with tender processes vulnerable to corruption, favoritism, or abrupt cancellations.
Over the past five years, performance in the sector has been mixed. Global players like Sodexo and Compass Group have expanded operations in India and Brazil, supported by demand from corporate clients and education institutions—yet have faced logistical challenges, labor disputes, and localized cost inflation. In South Africa, catering companies contracted by public hospitals and schools have frequently faced scrutiny over food quality and corruption scandals. Russia’s market was severely disrupted by sanctions and geopolitical tensions, forcing foreign firms to exit or reduce operations in institutional catering. Meanwhile, in China, stringent COVID-19 policies and lockdowns between 2020–2022 temporarily decimated demand in corporate and event-based catering, pushing many international operators into downsizing or restructuring.
The sector is highly sensitive to economic cycles, public health regulations, and food supply chain stability. Sudden changes in import restrictions, food safety laws, or minimum wage policies can disrupt operational models. Furthermore, ESG concerns—particularly regarding food sourcing, waste management, and labor practices—are gaining attention among clients and regulators. To succeed in BRICS catering markets, international corporations must balance cost efficiency with rigorous compliance, cultural adaptation, and crisis readiness in both urban and peri-urban contexts.
5 Key Risks
to Consider before Entering BRICS Catering Markets:
1. Regulatory and Food Safety Compliance Risk – Inconsistent health, hygiene, and food safety enforcement standards.
2. Contractual and Procurement Risk – Exposure to opaque bidding processes, sudden cancellations, or politicized tenders.
3. Supply Chain and Inflation Risk – Volatile food prices, import restrictions, and weak cold chain infrastructure.
4. Labor and Workforce Risk – High reliance on low-wage labor with increasing regulatory scrutiny on working conditions and wage policies.
5. Public Health and Disruption Risk – Exposure to pandemics, disease outbreaks, or government-imposed service restrictions.
TO GO FURTHER
CRISIS MANAGEMENT
Know-How, Tools & Resources for Crisis Resolution
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Crisis Assessment & Source Identification
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Crisis Management Coordination
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Crisis Containment & Damage Control
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Crisis Communication & Media Kit
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Crisis Cell Infrastructure
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Crisis Simulation Training [New]
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Business Recovery Plan & 361° Review