Institutional Channels in Turkey

Ongoing subsidies for private school investment boosts the number of private schools

The current government’s aim to increase the share of private schools in formal education continues to have a positive impact on the number of private formal education institutions. One of the most prominent examples of this initiative is the ongoing subsidies offered to private entities investing in private educational institutions. The increasing numbers of private educational establishments is having a positive effect on contract cleaning and contract foodservice providers as private institutions prefer outsourcing their foodservice and cleaning functions to service providers instead of engaging in the in-house provision of such services.

New public-private city hospital concept initiative indicates strong potential demand for service providers

In line with current government’s neoliberal privatisation policies, the number of private hospitals in Turkey continues to increase. The new city hospitals under construction represent strong potential for growth in demand for facility management, catering and cleaning companies as these facilities will inevitably be managed by private companies. In addition, these new hospitals are designed in a campus style, with modern buildings which require efficient facility management and professional cleaning.

Increasing numbers of B2B manufacturers choose to work directly with institutions and service providers

As a result of macroeconomic deterioration, which has increased the financial risks faced by Turkish companies, increasing numbers of manufacturers are choosing to work directly with institutions instead of working with distributors. While distributors remain a strong traditional link in the value chain, the numbers of manufacturers that prefer to work directly with institutions and service providers is also increasing due to growing price sensitivity.

New initiatives for public institutions remain as a big potential for contract foodservice

Public institutions such as schools and military constitute a significant potential target audience for contract foodservice companies. Nevertheless, these institutions generally prefer not to outsource foodservice operations. Recently, YESIDEF (The Food Manufacturer’s Association) launched two projects, one for military and one for schools, which has helped to open these two potentially lucrative institutional channels to contract foodservice companies. For schools, YESIDEF has started a pilot project under which precooked meals prepared by contract foodservice companies are delivered directly to schools. Additionally, the association has targeted the provision of contract foodservice services to the military. These two projects are set to have a positive impact on potential demand for contract foodservice during the forecast period.

Institutional channels is set to register a positive performance over the forecast period

Over the forecast period, increasing investment in modern facilities such as new hospitals, class A offices and plazas is set to continue having a positive impact on service providers and B2B manufacturers/distributors. The development of new modern facilities is set to bolster demand for operationally effective cleaning, foodservice and integrated facility management during the forecast period.

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