Commuting to work? Here’s why you should avoid buying your lunch in a train station

There are 2,367 railway stations in Britain, with around 470 offering some form of catering. Nearly half of these had only one outlet selling food.

The regulator argued that part of this was down to the fact that station operators were not incentivised to invite competition and the leases on retail spaces rarely changed hands, resulting in reduced income that could be used to invest in stations and services.

Will Godfrey, the 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.”

Catering retailers earned around £700 million from in-station outlets in 2022-23 but Network Rail and train operators, which own and manage most stations, received only £100 million in rent.

In addition to more expensive products, the ORR also found that outlets within stations were also generally of a lower standard in the eyes of consumers.

Analysis of online reviews of 10 unnamed retail brands found that nine had a lower review rating for their station facilities, when compared to those elsewhere. The ORR said that on average, station food outlets rated five per cent lower.

Mr Godfrey said: “We will now work with the industry on the best way forward and will make recommendations on how the market needs to change, with the ultimate goal of improving value and outcomes for customers and funders of the railway.”