The tables below describe Sodexo’s principal risk factors, their possible impact and give examples of measures implemented to reduce these risks.
CLIENT RETENTION | |
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Risk of not keeping and renewing contracts with Sodexo’s existing clients. | |
Category: Clients/Consumers | |
Impact Many clients now work on a hybrid model, with employees working both at home and in the office on a regular basis. This means that Sodexo's food offer has to be more flexible to be able to reach consumers in both places and that the traditional workplace food offering – an on-site kitchen providing food to on-site employees at set hours – has evolved. Sodexo needs to work with its clients pro-actively as a partner to adapt to changing circumstances and continue to meet evolving client needs. A lack of ability to adapt to the client’s current circumstances, an inability to transform our services to remain attractive to meet client/consumer demand, or any changes in client outsourcing strategy could mean that the client is not retained, possibly leading to:
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Examples of Mitigating Activities
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CHANGING CONSUMER EXPECTATIONS AND BEHAVIORS | |
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Increased consumer expectations around personalized, innovative and digital services, healthy food choices and a comfortable environment; increased consumer expectations in relation to business conduct and environmental impact. Structural changes in the way consumers choose to consume food. | |
Category: Clients/Consumers | |
Impact Consumers expect to be able to consume food in different ways and at a time of their choosing. They expect more choice, more convenience, healthier options and socially responsible behavior from the companies from which they receive service. If Sodexo cannot adapt its consumer offer adequately or cannot anticipate and meet consumer expectations for innovation and in relation to environmental impact or business conduct, its revenues, as well as its reputation, could be affected. |
Examples of Mitigating Activities
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BIDDING RISKS | |
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Risks relating to the commercial and contractual model and the scope of services included in a client contract. | |
Category: Clients/Consumers | |
Impact Some of Sodexo’s client contracts are long-term and may run between five and ten years. This is particularly relevant for the Business & Administrations segment. Factors such as:
during a bid proposal can lead to low margins or even losses on the contract, either in the startup phase or at a later date. |
Examples of Mitigating Activities
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