In 2009, the House of Lords Administration released an invitation to tender for the provision of a review of the catering services in the House. The invitation to tender had the following criteria for the review:

“The Millbank refurbishment project is an important watershed and provides an opportunity for the House of Lords Management Board and Refreshment Committee to evaluate the current service provided by the RD [Refreshment Department] and the future impact and options for the new Millbank catering provision. The purpose of this report is to assist the RD management, Refreshment Committee and the Management Board Sub-Group on RD Profitability to scrutinise and manage the costs of the RD and the possible impact of the Millbank House facility.

The consultants will consider the views of the following stakeholders; Members of the House via the Refreshment Committee, Management Board and the Sub-Group, users of the RD facilities and RD staff.

The review will explore the following areas:

Current services

the capacity and the actual and potential customer base for all existing outlets;

the operational costs of each outlet;

the constraints of staff costs, equipment, location and House sitting times;

the contribution made by, and the challenges of banqueting/functions;

customer perceptions of existing services and the requirement (by some) for changes;

RD Costs and Staffing

cost controls in procurement and staffing;

evaluating the efficient use of staff;

benchmarking against ‘norms’ in the hotel and catering industry;

The Millbank Refurbishment and other projects

the advantages and disadvantages of contracting out catering services in Millbank House;

identifying the niche market for the services at Millbank House;

the potential impacts of the M&E project and any review of Terrace facilities”.

The successful bidders for the review were Panache Consultancy, who produced its report in April 2010.

In early 2011, Panache Consultancy was commissioned to undertake a follow-up light touch review of Members’ catering outlets. The review was commissioned as there had been a change of use in the facilities due to a number of factors since the election of the coalition Government in May 2010, specifically:

the introduction of 117 new Members;

greater take-up of meals in all outlets;

the nature of parliamentary business;

the price increases of 5 January 2011;

the introduction of the new electronic point of sale software;

the House accommodation strategy;

the ongoing construction phase and fit-out planning for Millbank House; and

the catering review being undertaken by the House of Commons Administration Committee.

Panache Consultancy was asked to review its original recommendations in the light of these changes.