Contract catering' sales up by 12%

Britain’s leading contract caterers achieved year-on-year growth of 12% in the final quarter of 2023, the latest Contract Catering Tracker from CGA by NIQ and Bidfood has revealed. It completed four quarters of double-digit growth last year as contract catering continued to build back from the pandemic. However, it also marks a further slowing of year-on-year increases – from 30% in the first quarter to 18% in the second and 15% in the third.

With all four quarters combined, contract caterers’ total sales in 2023 were 18% higher than in 2022. This is despite a drop in the number of outlets served by contract caterers, which at the end of 2023 were 3% fewer than 12 months earlier. The size of the market remains well below pre-Covid levels.

Kate Nicholls, chief executive of UKHospitality, said: “Double-digit quarterly growth throughout the year is testament to the ability of contract catering to thrive in adverse economic conditions. However, growth slowing throughout the year illustrates just how challenging the cost-of-doing-business is becoming for businesses to navigate.”

Debra Morrell, business development controller for B&I for Bidfood, added: “This year, economic challenges will continue to squeeze consumer spending, alongside food inflation, which is still present, although not escalating to the same degree we endured last year. This will mean operators will need to demonstrate even more ingenuity, resilience and adaptability in their offer to survive and thrive, and we could well see lower growth levels in 2024 compared to 2023.”
  

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