SSPG Ssp Group Plc

ORR's railway station catering market recommendations                                                         

The Office of Rail and Road (ORR) has today published its final report into the railway station catering market, setting out recommendations to reduce barriers to competition.

ORR's recommendations include:

• Requiring a greater focus on passengers' satisfaction and requirements of catering by using more consumer research, to provide an offer at stations that meets customer needs
• A presumption in favour of competitive tendering of outlets for leases which are due to expire
• Simplifying and standardising contracts to make it easier for new entrants to the market
• Ensuring station operators contract out of the 1954 Landlord and Tenant Act for new leases of outlets at stations, whenever possible; and engage with the Law Commission's upcoming consultation on amendments to the Act to reform protected leases
• A greater degree of strategic direction and support to station operators by public funders.

ORR will also respond to the Law Commission's public consultation and share its findings. Namely, that such leases tend to foreclose parts of the market and make them non contestable and that the conditions to terminate leases are too restrictive.

ORR is tasking the Rail Delivery Group with coordinating the rail industry's response to its recommendations.  ORR will monitor progress and provide a report on the impact of the recommendations.

ORR is publishing this notice under its statutory duty to conclude its market study by 16 June.

Notes to editor

1. Final report: Railway station catering market study