SSP Group, the owner of Upper Crust, is under threat after the UK rail watchdog tightened the noose in its bid to improve competition in the railway station catering market. The Office of Rail and Road on Wednesday published the findings of a final report into the extent a lack of competition between retail providers has been bumping up costs for passengers and the taxpayer . The findings have brought London-listed SSP Group , which owns most railway station catering space with brands such as Upper Crust, Ritazza and the Camden Food Co, into the spotlight.
Some 20 to 30 per cent of all British outlets, taking a 40 to 50 per cent share of passenger spending, are owned by SSP. The ORR on Wednesday pushed for changes to the tendering process including the simplication of contracts for new entrants but its demands fell short of calling for an intervention from the Competition and Markets Authority (CMA). It came after findings in December that Brits are paying a 10 per cent price premium at stations compared to the high street.
Russ Mould, investment director at AJ Bell, said the watchdog’s announcement was “bad news” for SSP. “Selling baguettes and pasties at above-market prices has been lucrative business for SSP given its dominance in the sector. It’s been able to charge more for items as travellers don’t typically have time to shop around for deals or there isn’t a lot of choice.
” However as yet, the potential shake-up to the market has had little impact. Shar.
