Food and drink gross sales at UK railway stations are going through regulatory scrutiny over fears the £700m market lacks efficient competitors, which means passengers are paying over the percentages.
The Office of Rail and Road (ORR) mentioned it was investigating additional after discovering a median 10% premium at station catering stalls in comparison with the excessive avenue.
Its preliminary report discovered that station operators weren’t supplied with enough incentives to ask competitors for retailers.
As a outcome, stalls have been staying in the identical palms for prolonged intervals as a result of protected leases, the watchdog mentioned.
It mentioned that when unprotected leases got here up for renewal, the most typical observe was to roll over or lengthen the lease with out an open competitors.
The ORR mentioned the subsequent section of its inquiry would concentrate on what suggestions ought to be made to authorities, station operators, funders and different stakeholders to enhance the functioning of the market.
Station retailers are usually dominated by main chains however there are additionally many unbiased retailers.
Each suffered throughout pandemic restrictions on journey and passenger volumes are nonetheless recovering on many routes.
This is celebration as a result of results of rail strikes.
The ORR mentioned in an announcement: “The railway station catering market isn’t working as effectively as it should be.
“More competitors between firms to function at stations would convey actual advantages to passengers and taxpayers.
“Because money earned from leases at stations ultimately makes its way back to those who operate railway stations and infrastructure, this is money that could be invested in improving services for passengers or reducing the need for taxpayer support.
“We will now work with the trade on one of the simplest ways ahead and can make suggestions on how the market wants to vary, with the last word purpose of enhancing worth and outcomes for purchasers and funders of the railway.”
Source: information.sky.com”