Source - Alliance News

There should be ‘presumption in favour of competitive tendering’ for leases to operate food outlets at railway stations in the UK, the regulator said on Wednesday.

The Office of Rail & Road published its final report into railway catering, setting out its recommendations to reduce barriers to competition. The ORR previously had decided against referring the market to the Competition & Markets Authority for a market investigation, a stance it confirmed on Wednesday.

However, the ORR said it wants to see simpler, standardised contracts to make it easier for new competitors to enter the market.

It also called for using more consumer research to guide the selection of food offerings in UK railway stations.

The regulator said it has tasked the Rail Delivery Group, the membership group of UK train operating companies, with coordinating the rail industry’s response to its recommendations.

Shares in SSP Group PLC, which operates food kiosks in travel locations including railway stations, were up 1.3% to 164.74 pence in London midday Wednesday. The wider FTSE 250 index was up 0.1%.

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