• 19-SEP-2017

Food every which way

How the LSG Group demonstrates flexibility in the face of market changes 

We all welcome the growth in flight and passenger numbers worldwide. But the problem for the LSG Group is that this growth is not translating into greater demand for catering. How can that be?

There are two main reasons. Firstly, this passenger growth is mainly seen among low-cost airlines, which offer passengers onboard retail programs instead of meals and fresh products. Secondly, the traditional airlines are under a great deal of pressure due to increasing international competition. As a result, they are setting up their own low-cost subsidiaries and switching their in-flight service from full meals to snacks.

Of course, some airlines continue to look for a high-quality full-service offering and fresh products, but this demand is no longer sufficient to cover the costs of existing units within the global LSG Group network. The company must respond accordingly to this development by introducing more flexible and efficient production structures that will allow us to offer competitive prices once again. At the same time, the LSG Group has to meet the growing demand for onboard retail programs.

In-depth knowledge of retail products and consumer preferences is needed for this, along with IT solutions that can support the new service concepts. The LSG Group is able to offer all of this. The acquisition of Retail inMotion initiated in 2013 has been the key milestone in this development.

But that’s not all. The 35,000 colleagues in the LSG Group continuously demonstrate their expertise in food production and complex logistics by producing 1.7 million meals for thousands of flights each day. This is an excellent basis to explore further business opportunities.

The LSG Group is also engaged in the convenience retail sector and has been offering products and services to train operators for a number of years now. While both activities were opportunistic ventures initially, these market segments have now become part of the LSG Group’s core business thanks to the positive developments trends and business wins. .

Well-known retail chains such as Starbucks, 7-Eleven and Coffee Bean & Tea Leaf are now among LSG Group’s customers and are being supplied with sandwiches, salads, wraps, quiches and more in North and Latin America, Asia and South Africa – and the numbers continue to rise! Our activities in the train segment are focused on Europe due to the market potential in this region.  In the past five years, iDTGV and TGV Lyria in France, Eurostar and Thalys in Belgium, Deutsche Bahn in Germany, Snälltaget in Sweden, Virgin Trains in the UK and L-Exspresis in Lithuania have been convinced by the LSG Group’s expertise “on the rails”. 

As a result of these developments, the LSG Group employees face new challenges Reorganized structures and new skills are required; continuous development and an individual willingness to change are essential.

The new LSG Group mission also takes this into account and summarizes  what all employees worldwide are working for each day: “For everyone on the go, our mission is to enrich their food and service experience”.