The Better Entrepreneurship Policy Tool

Providing Opportunities for Social Enterprises Development – Example of the Titres Restaurant (France)

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In general, work-related social vouchers, whether in paper or digital, are benefits given by employers to employees/workers to buy specific goods or services (food, childcare, holidays, etc.) aimed to improve their working conditions or to facilitate work-life balance Their main objective is to guarantee the fulfilment of an essential need while increasing the purchasing power of employees and stimulating local consumption. As such, they support consumption instead of savings (Bailey, 2004 ). National and/or local authorities also use social vouchers to target subsidies to specific groups (e.g. culture vouchers) or small business (e.g. innovation, skills development vouchers). The objective is to target groups or firms who could not have otherwise accessed, or at least not to the same extent, the specific goods or services (Bailey, 2004 ).

 

Għaliex

Food and meal vouchers are the most common social vouchers. Originally set up in the United Kingdom, they were introduced by firms, mostly SMEs, as an alternative to company-run canteens to ensure employees have access to a midday meal. Used in Europe, Asia, North Africa and South America, their main purpose is to ensure equal access to food regardless of work location. An example of a well-established meal voucher is the Titre restaurant in France. Created in 19621, meal vouchers are social benefits granted by public or private employers to employees at a subsidised rate to buy food at local restaurants or merchants. Since 1962 , French companies with 25 or more employees are required to set up a cafeteria or a canteen. This was particularly challenging for small businesses with less than 25 employees, as they often lack the resources and infrastructure needed to set up a canteen. Most vouchers are issued and distributed by firms, including social enterprises (e.g. Groupe Up in France). Social vouchers could help social enterprises access new markets while fulfilling their social mission if they can be used to buy their services or products.

 

1  Ordonnance n° 67-830 relative à l'aménagement des conditions du travail en ce qui concerne le régime des conventions collectives, le travail des jeunes et les titres-restaurant.
https://www.legifrance.gouv.fr/loda/id/JORFTEXT000000698675/

 

 

Attivitajiet Ewlenin

The minimum value of the Titre Restaurant is around EUR 7.50 with a daily limit of EUR 19. With the COVID-19 crisis, the daily ceiling was raised to EUR 38 and their use extended until September 2021. Employers often subsidise 50% to 60% of their value. Employees exchange vouchers in restaurants or food merchants, who receive a reimbursement from issuer companies. Edenred, Group Up (a social enterprise) and Sodexo are the main issuing companies.
 

Impatt

The Titre Restaurant is the most preferred social benefit by employees, followed by health insurance (mutuelle) and a company car (voiture de fonction). In 2014, 3.8 million employees received 763 million meal vouchers for a total value estimated at EUR 5.8 billion. In 2018, food and meal vouchers benefited almost 4.5 million workers. Within five decades of their introduction, 140 000 companies distributed food and meal vouchers, 78% of which firms of less than 25 employees, whilst 180 000 restaurants and other food providers accept vouchers.

On employees

A study carried out in 2015 by Alternatives Economiques concluded that meal vouchers have helped secure the midday meal for low-wage employees who would have spent between 13 to 16% of their salary to buy food while at work. As such, meal vouchers, have helped reduce inequality among employees (AEEC, 2015).

On the local economy  

Based on estimates, for every EUR 1 spent by the employer on a Titre Restaurant, EUR 2.55 are injected in the local economy, mainly in restaurants and local food shops.

On the national economy

In 2014, the Titre Restaurant contributed to the creation of 74 000 jobs, which represents 10% of total employment in the catering sector. In 2018, meal vouchers contributed to securing 164 000 jobs. Based on estimates, meal vouchers generate an annual budgetary surplus of EUR 870 million to national finances (EUR 2.31 billion of extra tax revenues and EUR 1.44 billion of tax waivers due to the fiscal exemption).

The success of the meal voucher in France is due to the triple commitment and partnership of the state, employers and employees. By granting an exemption of social and fiscal contributions for food and meal vouchers, the state explicitly encouraged negotiations between employers and employees to decide on the opportunity of setting up voucher programmes and the amount of their co-financing. It is an example of a successful social dialogue where the state defines the framework and plays a facilitating role, while leaving social partners the freedom to negotiate.

Food and meal vouchers in France (2018)

Year of introduction

1962

Local name

Titre-restaurant

Area of use

national

Governing laws

Labour code (L.3262-1 & following) / General tax code (L.81 19°) / Social code (L.136-1-1 4° a)

Fiscal arrangements

Full social and fiscal tax break

Employers taking part

140 000

Beneficiaries

4.5 million

Merchants affiliated

180 000

Jobs affected

164 000

Source: information provided by various stakeholders following the 2019 OECD questionnaire on social vouchers in France.

References