UK’s top contract caterers report continued growth despite contraction in venues

Like-for-like sales for the UK’s top contract caterers grew 7% in the first quarter of 2024, despite a drop in the number of outlets they serve.

 

CGA by NIQ and Bidfood’s Contract Catering Tracker reported the industry is serving 3% fewer units than in the first quarter of 2023, but sales continue to grow.

 

This marks a 12^th quarter of growth in a row following recovery from the Covid-19 pandemic.

 

The report – which tracks the growth of companies including BaxterStorey, Compass and Blue Apple – stated that the rate of growth is well below the 13% figure reported in Q4 2023.

 

Karl Chessell, business unit director at CGA by NIQ, said: “As inflation eases and the confidence of businesses and consumers improves, we can be optimistic about a strong 2024 for the sector.

 

“However, a slowdown of growth and a contraction in venues show there is no room for complacency, and caterers will have to stay resolutely focused on quality and value in the months ahead.”                                        

 

Debra Morrell, business development controller for business and industry at Bidfood, pointed to the squeeze on public sector budgets as a reason for the softening: “Although like-for-like sales growth is still positive for the first quarter of 2024, we have seen a soft March figure compared with previous months this year, and a slowing in growth compared to the previous quarter,” she said.

 

“So, cautious optimism will be the name of the game as we look ahead this year. Tapping into those choice drivers that consumers will look for will be key: value for money, healthier and sustainable options, as well as authenticity, innovation and quality.”

 

Kate Nicholls, chief executive of UKHospitality, said: “Contract caterers continue to perform strongly, demonstrating the value held in the high-quality, consistent product the sector delivers, day in, day out.

 

“The slight decrease in growth rate and units open in the first quarter shows the challenges that inflation and high costs continue to impose on the sector, reinforcing the need for hospitality’s cost burden to be rebalanced and reduced.”

 

CGA’s partners on the Contract Catering Tracker include: ABM Catering, Artizian Catering Services, Bartlett Mitchell, BaxterStorey, Blue Apple, CH&Co, Compass, Elior, the Genuine Dining Co, Harrison Catering Services and Sodexo.

 

Photo: David Tadevosian/Shutterstock