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.
The Contract Catering Tracker from CGA and Bidfood aggregates sales from leading operators to provide quarterly reports with year-on-year analysis. It offers businesses a valuable benchmarking tool to measure performance across various metrics and market groupings, and participants in the Tracker receive additional analysis in return for their contributions.
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.”
CGA by NIQ’s partners on the Contract Catering Tracker include: ABM Catering, Artizian Catering Services, Bartlett Mitchell, BaxterStorey, Blue Apple, CH&CO, Compass UK, Elior UK, The Genuine Dining Co., Harrison Catering Services and Sodexo UK.
Companies participating in the Tracker receive a trading breakdown that helps to benchmark performance and understand market trends. To join the cohort, contact Nik Xypolitos at nik.xypolitos@nielseniq.com.
About Bidfood:
As one of the UK’s leading foodservice providers, we share our customers’ passion for great food.
But our passion doesn’t stop there. We are also 100% dedicated to delivering service excellence to help our customers succeed and grow.
- Our 13,000 strong product range includes the best of both own brand and leading foodservice brands.
- Our 24 depots operating right across the UK allow us to offer a truly unique local service – and the majority of our depot teams are no more than 80 miles away from their customers.
- We offer a comprehensive range of over 250 carefully selected wines, as well as beers, ciders and spirits.
- We don’t stop at just food and drink. We also provide a range of quality catering equipment, from cutlery to cookware, cleaning and disposables.
For more information, visit Bidfood.co.uk.
