Select Service Partner - Unfair Monopoly

[markymark2000]

SSP or Select Service Partner or Food Travel Experts, whatever they want to be called, run what seems to be the vast majority of food and drinks facilities at stations running most of the cafes but also the vending machines.

For those not in the know.
Vending Machines ran by 'Select'
Upper Crust
Pumpkin
Cafe Ritazza
Millie's Cookies (though they aren't as common in train stations)
Probably more too but these are the only ones that are easy to find.

This is as well as Burger King, Starbucks and Leon franchises and some affiliation with WH Smith's.

Then we move on trains, they run Rail Gorumet who do the onboard stuff for LNER, First TPE, GWR, Grand Central, Lumo and ScotRail (maybe more)



Why is such a monopoly permitted when often it's ripping off rail passengers. The only reason people are paying it is because of the lack of alternative and there is a lack of alternative as Select sort seemingly everything within the station for food giving no space for competition at all. Disgraceful.

 

[221129]

Then we move on trains, they run Rail Gorumet who do the onboard stuff for LNER, First TPE, GWR, Grand Central, Lumo and ScotRail (maybe more)

They only deliver and supply the stock to (Most of) GWR, (Some of) XC and Lumo. RG Have no involvement with ScotRail or LNER.

Why is such a monopoly permitted when often it's ripping off rail passengers.

Because there is always an alternative.

Select sort seemingly everything within the station for food giving no space for competition at all.

Because no one else is willing to pay the rent that Network Rail want. It also helps that they were merged with the old BR Catering company Travellers Fare.

 

[markymark2000]

They only deliver and supply the stock to (Most of) GWR, (Some of) XC and Lumo. RG Have no involvement with ScotRail or LNER.

Their website says LNER.
Scotrail I presumed as there was the union issue at Waverly.

Because there is always an alternative.

Is there though? Really? There may be alternative brands but who is running them or who has the lease to the shop unit before subletting to a brand. Most things at stations seem to link back to SSP

Because no one else is willing to pay the rent that Network Rail want. It also helps that they were merged with the old BR Catering company Travellers Fare.

Is that so true? I'm sure others would pay if given the chance.

 

[221129]

Their website says LNER.
Scotrail I presumed as there was the union issue at Waverly.

Their Website hasn't been updated. There are more TOCs in Scotland than Just ScotRail.

Is there though? Really?

Yes, You can always bring your own or use an outlet near the station, most stations that have an SSP presence will have an alternative either on the station or very nearby.

 

[D6130]

I think the answer to this is to take your own food & drink where possible....or patronise other outlets just outside the stations. I am very fortunate in that my local station has an excellent independent cafe, which will make-up takeaway hot and cold sandwiches for passsengers to take on their journies.

 

[221129]

I'm sure others would pay if given the chance.

Then why don't they? The option is there when the lease ends on SSP units.

 

[JonathanH]

Why is such a monopoly permitted when often it's ripping off rail passengers.

Is it ripping off rail passengers or simply do rail passengers have to pay the recognised commercial cost of purchasing food and drink at a place with limited footfall over which to spread costs?

 

[spyinthesky]

I suppose the monopoly provides a constant service which as long as people spend then nothing will change.
Personally I never use any of them as I can generally find a cheaper and better alternative prior to arrival at a station at either end of my journies.

 

[alistairlees]

Perhaps the only outlets at smaller / mid-size stations are SSP ones in many cases - but that may be because these stations can support only one or two outlets.

At stations like Euston and Kings Cross there are many alternative outlets.

At York (for example) there are (in addition to the two Pumpkin and one Upper Crust outlets): Costa, Filmore & Union, Whistlestop *2, the York Tap, Ugot, AMT Coffee, Burger King, The West Cornwall Pasty Company, Starbucks, Duke of York. Perhaps some of these are operated by SSP, but this does seem like quite a choice.

Edit: I just realised that the Filmore & Union ones may no longer exist!

 

[Bletchleyite]

Pretty much all of those are SSP.

 

[route101]

Rarely use SSP outlets. I noticed in London there a burrito outlet called Mi Casa, is that SSP too?

 

[Bletchleyite]

Rarely use SSP outlets. I noticed in London there a burrito outlet called Mi Casa, is that SSP too?

Yep. Very nearly everything in stations is.

 

[185]

SSP & WHS hold a monopoly as Network Rail secure the highest site rent from them.

With that rent income SSP/WHS pretty much dictated to Network Rail Major Stations & TOC management about which competition they wanted and didn't want.

Thus, it is both Network Rail MS and the TOCs responsible for 25 years of allowing SSP/WHS to rip customers off with poor quality catering, my last SSP purchase was a £2.70 cup of brown dishwater bought in 2018 from Bumpkin.

DfT need to identify monopoly SSP/WHS sites and break them up - Euston is a potential one. Very large amount of SSP units there with a particularly poor offering.

If badly run airports want SSP to prey on their customers, that's up to them, but with the government owning railway assets - shouldn't have been allowed to happen.

 

[D6130]

Edit: I just realised that the Filmore & Union ones may no longer exist!

Yes....unfortunately they went bust three or four years ago (definitely pre-Covid), which was a great pity as they made and sold very good quality vegetarian/vegan/allergy-free food and drink.

Pretty much all of those are SSP.

The York Tap definitely isn't....it's owned by York-based Pivovar, who also have similar pubs in or near Euston, Sheffield, Leeds, Harrogate and Newcastle stations. The SSP-run bar in the main station building at York is rubbish by comparison!

 

[alistairlees]

I hadn't realised so much is operated by SSP. Perhaps it would be easier to list: what is not operated by SSP? I assume that things like the York Tap and Harrogate Tap have no relationship for example. What about the Fullers in Euston (The Signal Box) or Kings Cross (the Parcel Yard)?

Yes....unfortunately they went bust three or four years ago (definitely pre-Covid), which was a great pity as they made and sold very good quality vegetarian/vegan/allergy-free food and drink.

2019 I just found out.

The York Tap definitely isn't....it's owned by York-based Pivovar, who also have similar pubs in or near Euston, Sheffield, Leeds, Harrogate and Newcastle stations. The SSP-run bar in the main station building at York is rubbish by comparison!

I assume you mean the "Duke of York" when you say "SSP-run bar"? I agree.

 

[Galvanize]

Millie's Cookies (though they aren't as common in train stations)

Didn’t realise they still exist. Haven’t seen one in years.
Another one to add to the list…SSP run the M&S simply Food outlets at most stations.

I remember SSP used to own a Franchise for a Burger King at a London Terminal (not saying which one, it doesn’t exist anymore…the BK that is!)…and how it was able to operate with poor Hygiene Standards, I do not know.

I hadn't realised so much is operated by SSP. Perhaps it would be easier to list: what is not operated by SSP? I assume that things like the York Tap and Harrogate Tap have no relationship for example. What about the Fullers in Euston (The Signal Box) or Kings Cross (the Parcel Yard)?


2019 I just found out.


I assume you mean the "Duke of York" when you say "SSP-run bar"? I agree.

AMT coffee I don’t think is run by SSP, nor was Dearly Departed West Cornwall Pasty Co.
SSP ran the rival “The Pasty Shop” chain.

 

[D6130]

I assume you mean the "Duke of York" when you say "SSP-run bar"? I agree.

Yes....that's the one. I haven't been in since the York Tap opened and it's so unmemorable that I couldn't remember the name. I have vague memories of warm, flat, stale beer, surly staff and sky-high prices. I believe that there is a similar establishment on the South concourse at Leeds station....is it called The White Rose?

What about the Fullers in Euston (The Signal Box) or Kings Cross (the Parcel Yard)?

They are both run by the Fullers Pub Company who, judging by the prices charged, must be paying an absolute fortune in rent to Network Rail.

 

[221129]

nor was Dearly Departed West Cornwall Pasty Co.

deleted

 

[Djgr]

It is to provide the illusion of competition, in a similar way to TOCs and for similar political reasons (i.e. private good, public bad)

 

[Mcr Warrior]

West Cornwall definitely is SSP.

Are you sure?

Thought The West Cornwall Pasty Co. Ltd was owned by Samworth Brothers, who also own Ginsters.

Their outlets have been shut since March 2020, haven't they?

Can't see any mention of The West Cornwall Pasty business in SSP Group plc's 2020 Annual Accounts so seemingly not part of the latter's corporate empire.

Apparently the rail sector accounts for about a third of SSP's overall revenues.

 

[221129]

Are you sure?

Thought The West Cornwall Pasty Co. Ltd was owned by Samworth Brothers, who also own Ginsters.

Their outlets have been shut since March 2020, haven't they?

Can't see any mention of The West Cornwall Pasty business in SSP Group plc's 2020 Annual Accounts so seemingly not part of the latter's corporate empire.

Apparently the rail sector accounts for about a third of SSP's overall revenues.

My apologies, I was thinking of The Pasty Shop.

 

[tbtc]

that may be because these stations can support only one or two outlets

I think that this has a lot to do with it - there's not a big enough market for multiple outlets in an era where people have huge numbers of non-station options for a snack in most city centres and the idea of buffet cars on most InterCity trains feels quaint

We can complain about the prices of things (and people obviously do), but Network Rail have a duty to get good value for taxpayers/ farepayers by getting a good revenue from things like leasing the catering sites - who pays for the reduction in Network Rail's income if they are forced to accept lower bids for sites, and what guarantee is there that this "saving" to catering companies will be passed directly to consumers (since there's often very little correlation between the cost of a meal and the cost to provide it - you charge £3 for a hot drink because that's what enough people will pay for it rather than it being determined by the rent you pay)?

Catering at railway stations is likely to be something fairly niche that only a handful of organisations could ever touch, in the way that there's nothing stopping other firms trying to set up their own motorway service stations but Roadchef/ Welcome Break/ Moto have got the market pretty much sewn up (the fact that people rave about how good the independent Tebay site is just shows how uniformly banal the rest are)

 

[py_megapixel]

West Cornwall definitely is SSP.

Can't see any mention of The West Cornwall Pasty business in SSP Group plc's 2020 Annual Accounts so seemingly not part of the latter's corporate empire.

Is there possibly some confusion between West Cornwall Pasty Company (not SSP) and The Pasty Shop (which as far as I can tell is just another brand made up by SSP) - edit: just seen what 221129 said

Speaking of which, at Brighton there is The Pasty Shop which wants £6.30 for a single rather sorry-looking pasty. 2 minutes down the road there is a Tesco where the same money will buy me two complete meal deals. I know where my business would be going.

I dislike using SSP because they are poor quality, overpriced and do seem to act to monopolise railway catering. However, considering there is usually a suitable nearby alternative easily identifiable using tools like Google Maps, I'm perfectly happy for them to continue to exist, as the passengers who do choose to spend money with them are probably indirectly subsidising my train ticket via revenue-sharing agreements.

 

[Galvanize]

Are you sure?

Thought The West Cornwall Pasty Co. Ltd was owned by Samworth Brothers, who also own Ginsters.

Their outlets have been shut since March 2020, haven't they?

Can't see any mention of The West Cornwall Pasty business in SSP Group plc's 2020 Annual Accounts so seemingly not part of the latter's corporate empire.

Apparently the rail sector accounts for about a third of SSP's overall revenues.

I believe WCPC closed all their Railway Station outlets at the beginning of the First Lockdown and never reopened. Think they still exist at Motorway Service Stations. Shame as they were a better (if a little dearer in price) and many cases, friendlier outlet than SSP’s offering!

 

[Ken H]

We have to be careful here. Many outlets (not just station) with established brands are in fact franchises. Many Costas are franchises, run by independent companies. So just because you see a name you are familiar with on the high st, don't assume its not run by SSP or similar. (Costas on the motorway are franchises)

 

[skyhigh]

Their website says LNER.

LNER is now Gate Gourmet, which has nothing to do with SSP or Rail Gourmet (despite the similar name).

 

[markymark2000]

Is it ripping off rail passengers or simply do rail passengers have to pay the recognised commercial cost of purchasing food and drink at a place with limited footfall over which to spread costs?

Limited footfall is hardly the case. Many places have huge footfall but passengers have started having a similar attitude to 185 below. High cost, low standards and they simply don't want it so are having to try and find alternatives. Also, I think you only have to look at stations which do have a supermarkets presence to see that actually, the prices are the same and they get really busy. There is no need for the higher prices as if the prices are reasonable, you get customers. Rip them off, they will avoid you (and starting the spiral of decline with less customers means you need more revenue per customer etc)

SSP & WHS hold a monopoly as Network Rail secure the highest site rent from them.

With that rent income SSP/WHS pretty much dictated to Network Rail Major Stations & TOC management about which competition they wanted and didn't want.

Thus, it is both Network Rail MS and the TOCs responsible for 25 years of allowing SSP/WHS to rip customers off with poor quality catering, my last SSP purchase was a £2.70 cup of brown dishwater bought in 2018 from Bumpkin.

DfT need to identify monopoly SSP/WHS sites and break them up - Euston is a potential one. Very large amount of SSP units there with a particularly poor offering.

If badly run airports want SSP to prey on their customers, that's up to them, but with the government owning railway assets - shouldn't have been allowed to happen.

100% nail on the head.

Catering at railway stations is likely to be something fairly niche that only a handful of organisations could ever touch, in the way that there's nothing stopping other firms trying to set up their own motorway service stations

Very different and I would say hardly compatible. A single cafe/food outlet rented from Network Rail versus building a multi million pound motorway services.

LNER is now Gate Gourmet, which has nothing to do with SSP or Rail Gourmet (despite the similar name).

Have I missed any train operators then or are they not 'in the game' as much with onboard retail?

 

[Ken H]

...

Catering at railway stations is likely to be something fairly niche that only a handful of organisations could ever touch, in the way that there's nothing stopping other firms trying to set up their own motorway service stations but Roadchef/ Welcome Break/ Moto have got the market pretty much sewn up (the fact that people rave about how good the independent Tebay site is just shows how uniformly banal the rest are)

station catering does not have the overhead of huge car parks and a requirement to be open 24/7, which motorway services have as a bit of an excuse.

 

[cactustwirly]

Some stations like St Pancras have really good outlets, like Boots, Pret and the Sourced Market (expensive but really good quality so worth it)

Others like Leicester have mainly SSP I overpriced crap which I wouldn't touch with a bargepole

 

[Iskra]

We have to be careful here. Many outlets (not just station) with established brands are in fact franchises. Many Costas are franchises, run by independent companies. So just because you see a name you are familiar with on the high st, don't assume its not run by SSP or similar. (Costas on the motorway are franchises)

Most Costa’s on train stations are Costa-owned.

- - - - - - -

SSP are in retreat. They are stuck paying high rents in locations where footfall is often 40% down. They are offloading units all over the network.

I also try to avoid SSP where possible.