Setting the scene

For our 2025 review of Higher Education Commercial Services, senior leaders from across UK universities share insights on the forces shaping the sector. These conversations explore how ESG ambitions are influencing strategy, the choices behind in-house or outsourced provision, the dynamics of partnering with private accommodation providers, the importance of inclusive models that champion EDI, and the evolving hospitality and retail trends meeting the expectations of today’s students.

Sector Snapshot

Against a backdrop of declining levels of international students, Commercial Services has played an increasingly important part of the sector, contributing over £1.6 billion annually and enabling innovation, sustainability, and student experience. With catering deficits rising and conferencing and sports revenues growing, institutions are balancing financial resilience with inclusivity and future-focused offerings.

The recent Business Models in HE Catering – 2025 Update highlights evolving trends and challenges in higher education catering, drawing on comprehensive survey data from institutions nationwide. The report shows growing fiscal pressures, with 69% of universities running a catering deficit in 2025, up from 56% in 2017, and illustrates the strategic adjustments universities are making in response.

My sincere thanks to the senior leaders in Higher Education’s Commercial and Campus Services for generously sharing their time and perspectives on this project. Through a series of Q&As, they have offered insights into the challenges and opportunities shaping Commercial and Campus Services today, and I believe they will be of great interest to anyone operating in the sector. What follows is only a snapshot of their input; I encourage you to explore the full contributions via the links below.

James Gregory, Business Sector Director, The Management Recruitment Group (MRG)

The People Shaping the Conversation:

Einita Suman

Director of Transformation, Campus Services, University of Birmingham

Gagan Kapoor

Director Commercial Operations (Residential, Catering and Domestic Services), Loughborough University

Gillian Almond

Director of Commercial Services, Royal Holloway, University of London

Melissa Browne

Acting Director, Campus Services, University of Kent

Rob Wadsworth

Director of Campus Innovation: Campus Services, Experience & Commercial, University of Leeds

Tony Howard

Senior Commercial Services Leader in UK Universities

Environmental, Social and Governance (ESG)

“Commercial services play a vital role in translating ESG principles into visible action—from sustainable procurement and responsible sourcing to inclusive employment and community engagement.“

“The food chain has many opportunities to support social wellbeing both in terms of procurement supply chain, use of ethical accreditation such as Sustainable Restaurant Association, fair trade accreditations, compassion in food business etc. but also promoting better food choices to our customers, promoting health options, drinking water, reduced red meat whilst still leaving room for treats.”

In-house vs outsourced provision

“The first is the importance of starting with purpose, not price. Too often, outsourcing debates begin and end with the financials. Of course, cost matters but if that’s the only lens, you miss the bigger picture.”

“For us, an in-house provision allows for tighter alignment with university standards (e.g. EDI, ESG, student wellbeing). This allows us to embed culture, responsiveness and innovation. Whilst outsourcing can bring economies of scale and specialist expertise at lower capital investment for the University, this comes at the cost of greater dependency on external partners, which doesn’t come without risk.”

Working with private sector accommodation providers in partnership

“Successful partnerships with private accommodation providers rely on shared purpose, trust, and mutual respect, with the primary goal of delivering the student experience rather than simply fulfilling contractual obligations.”

“Forging successful partnerships with private sector accommodation providers requires work. I feel that building on a foundation of shared values and mutual understanding of what constitutes a high-quality student experience is key.”

UK HE COMMERCIAL SERVICES IN NUMBERS

*Stats from the CUBO 2025 Benchmarking Report

33.8 million
average total commercial services income
67 %
of commercial income comes from accommodation
3 %
increase in catering income in 2024, reaching an average of £4.77 million per institution

EDI - Equity, Diversity & Inclusion

“If we actively recruit staff from different backgrounds and characteristics this helps us understand our students, who will feel more at home and welcomed by an inclusive environment.”

Gillian Almond

Director of Commercial Services at Royal Holloway, University of London

We sincerely appreciate the expertise and perspectives these leaders brought to this discussion.