Railways station operators are being urged to create more competition between resident food outlets, as a study by a regulator concluded passengers are being let down by a lack of catering options.
The Office of Rail and Road (ORR) said that almost half of all UK stations only had one catering option for customers, with those outlets staying in the same hands for extended periods because their leases were protected.
Even when unprotected leases come up for renewal, the ORR found the most common practice was to roll over or extend the lease without an open competition.
It warned that these practices also meant that station operators had less income to invest in improving stations and services, increasing the need for taxpayer support, and that the lack of competition was contributing to an average 10 per cent price premium at stations compared to the high street.
Will Godfrey, ORR’s director of economics, finance and markets, said: “The railway station catering market isn’t working as effectively as it should be.
“More competition between companies to operate at stations would bring real benefits 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 industry on the best way forward, with the ultimate goal of improving value and outcomes for customers and funders of the railway.”
The ORR has laid out a series of recommendations for stations operators, including conducting more consumer research, favouring competitive tendering of outlets for leases which are due to expire, and simplifying and standardising contracts to make it easier for new entrants to the market.
The organisation said it will monitor progress and provide a report on the impact of the recommendations.