Education caterer CATERed to cease trading in 2026

CATERed, a Foodservice Catey winner, has announced it will cease operations in 2026 as a result of the “increasingly challenging” financial climate.

The 2018 Education Caterer of the Year was founded in 2015 as a co-operative trading company jointly owned by local schools and Plymouth City Council.

Over the past decade, CATERed has been serving more than 10,000 meals a day in 59 schools.

However, the business said the combined impact of rising costs and the shortfall in funding available to benefit-based free school meals (FMS) and Universal Infant Free School Meals (UIFSM) meant it was “no longer viable”.

UIFSM are currently funded at £2.61 per pupil per day. This rate has increased by an average of 1.1% over the last two years.

Meanwhile, government has announced that the FSM rate in England will be increased by 2% (5p) from September 2026, while funding rates in Scotland (£3.30) and Wales (£3.20) far exceed those in England.

As a result, the school meals service will cease trading at the end of the academic year in July 2026, while the community meals service will stop at the end of February 2026.

CATERed said staff will likely transfer into the school that they currently work in or to new providers.

Member schools have been given the time to find alternative providers before the next academic year.

Brad Pearce, managing director of CATERed, said: “All of us at CATERed are hugely proud of what we have achieved together over the last 10 years.

“We have always been highly ambitious about raising standards of school meals provision and have strived to always provide high quality, appetising meals using fresh, seasonal, local and organic ingredients. We have been proud that what we do has been recognised nationally. We are equally proud of our relationship with all of our schools and academies.

“Sadly, the financial climate has been increasingly challenging in the last few years and with the additional costs we are now facing it is no longer possible to break even. I know that other providers across England are also ceasing services and closing.”

He added: “We have explored a number of options but without the government recognising the true cost to provide the service through an index-linked, appropriate funding rate, or ongoing external financial support, it is not possible to continue. Schools can still benefit from the skills of our schools-based staff when they transfer into schools or to new providers.

“It is obviously a very difficult and tremendously sad time for the CATERed community, but we will continue to provide an excellent service until it is the time for schools, or new providers, to take over.”

CATERed also received the CSER Award at the 2019 Foodservice Cateys, with judges praising the company for spearheading a “brilliant project that truly enhances lives, with education at its heart”.

Earlier this year, school caterer association LACA estimated that the deficit for school meal funding could be up to 85p per portion. Discussions at its 2025 conference pointed to school caterers cutting back on the size, variety or quality of lunches served to children to cope with rising costs and lack of funding.