The Office of Rail and Road (ORR) has completed its market study into the provision of railway station catering services. We have decided not to refer the market to the Competition and Markets Authority (CMA) and we have instead set out a package of remedies to address the issues we have identified in this market.
June 2024 update
12 June 2024
Final report
On 12 June 2024, we published our final report of the market study on the railway station catering market. This report sets out the issues which are adversely affecting the market in delivering value for money for passengers and taxpayers. It confirms the reasoning of our initial decision not to refer the market to the CMA for a market investigation. It outlines a series of recommendations which will help ensure that these issues are appropriately addressed.
Our final report includes:
- 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.
Next steps
We have called on all parties to whom recommendations are addressed to submit a response to this report. We will write individually to these parties, after the end of the general election period, to inform them of the timeline to submit their response. The details of what their response should include is set out in the final report (Chapter 8).
We will continue to monitor progress in this market closely, and we will use the responses from parties to this end. Our monitoring activities are likely to include periodic meetings with recipients of our recommendations and the publication of an update report outlining the progress which has been made both in terms of implementation and impact on the market.
Decision not to refer the market and interim report
Collapse accordion
Open accordion
12 December 2023
Decision to not make a Market Investigation Reference (MIR)
We decided to not refer the railway station catering market for investigation. We published the notice of our decision. Our reasons for not referring this market to the Competition and Markets Authority (CMA) are set out in the interim report.
Interim report
The interim report contains:
- our emerging findings on the functioning of the railway station catering market
- our reasons for not referring this market to the Competition and Markets Authority (CMA)
- our proposed approach to address the concerns we have identified
We invited comments on our main areas of concern and on the proposed actions we identified by 26 January 2024. We carefully considered these responses and they have informed our final report.
Launch of market study
Collapse accordion
Open accordion
16 June 2023
We launched a market study into the provision of railway station catering services.
A good railway station catering experience can impact the wider travel experience. Consumers benefit when there is:
- value for money
- competition between retailers
- convenience
- choice
- quality products
- price-competition
- customer service
We invited comments on our proposed approach and areas of focus set out in the statement of scope from interested parties by 7 July 2023.
Timeline
Collapse accordion
Open accordion
- 16 June 2023: Launch.
- 7 July 2023: Deadline for responses to the Statement of Scope.
- 15 December 2023: Statutory deadline for publishing notice regarding decision on whether to make a Market Investigation Reference (MIR).
- 26 January 2024: Deadline for comments on the Interim Report.
- 15 June 2024: Statutory deadline for publishing the final report setting out our findings and our reasoning on any action which we propose to take.