Britain’s top contract caterers grew their sales by 12% year-on-year in the fourth quarter of 2024, the latest Contract Catering Tracker from CGA by NIQ and Bidfood reveals.
It was the Tracker’s highest growth of the year, following increases of 7%, 10% and 7% in the first three quarters.
Caterers have now increased sales year-on-year in every quarter since mid-2021, when venues were reopening after COVID restrictions.
The Tracker’s monthly breakdowns show growth peaked in December, as organisations and people turned to caterers for Christmas celebrations.
It has lifted groups’ MAT growth—for sales over the last 12 months compared to the previous 12 months, including new contracts—to 14%.
The fourth quarter also extended a steady post-COVID rise in the number of venues managed by contract caterers.
Leading groups now serve 4% more outlets than they did 12 months ago.
Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said, “Double-digit fourth-quarter growth caps an exceptionally good year for Britain’s contract catering sector. Businesses have built back superbly from the after-shocks of COVID and the extended period of high inflation, and a surge in sales over the festive season shows their services remain attractive to both public and private sector clients. This year will bring more cost pressures, not least from unwelcome increases in National Insurance contributions, but the outlook for contract catering is very positive.”
Debra Morrell, business development controller for B&I at Bidfood, said, “It’s great news to see that after a subdued last quarter’s growth at 6.8% revenue for Q3 2024 vs Q3 2023, we’ve seen greater buoyancy in the market in the latest quarter which has climbed back up to 11.6% vs a year ago. It’s refreshing to see a positive shift with the sector bucking the previous trend of slowing growth we’ve been seeing for some time.
“This seems to have been driven by the private sector, reflecting a return to offices for some employees. However, there may also be other influences at play including contract renegotiations and increased levels of outsourcing. Of course, the disparity between public and private sector performance could also be symptomatic of additional pressure on public budgets.
“We’ll be closely watching the tracker in the coming months to see how increases in operational and people costs, alongside continued movement back to offices, impact revenue growth.”
Kate Nicholls, chief executive of UKHospitality, said, “Contract caterers are once again delivering significant sales growth, demonstrating its economic importance and ability to grow.
“The sector continues to drive impressive growth despite ongoing cost pressures, but these pressures will only intensify in April when £3.4 billion of cost hits the sector, and we’re urging the Government to delay the changes to the employer National Insurance Contributions threshold.
“We’re also raising the urgent need for Government to overhaul school meals and increase the per-meal funding allowance. This will help to rectify the situation many caterers are facing where funding for provision has dropped dramatically and now lags significantly behind key input costs such as labour and food.”
