Regulator finds train passengers buying food at stations hit by 10% price premium

It stated in a report that many outlets “stay in the same hands for extended periods”.

This is due to a combination of reasons, such as some retailers’ leases being protected meaning they are generally renewed, limited space, set-up costs and uncertainty from industrial action. Nearly half (47 per cent) of stations that offer catering have just one outlet, the ORR said.

In addition to higher prices, the absence of competition may also result in station operators receiving less rent, which increases the amount of taxpayer-funded subsidies they need, the report added.

The investigation found that the price premium for station refreshments “can vary considerably by retailer”, with the average “in the region of 10 per cent”.

The regulator did not reveal figures for individual companies.

ORR director for economics, finance and markets Will Godfrey 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.”