The year-on-year increase of 9.5% between January and March means caterers’ sales have now risen in every quarter since mid-2021, when venues were reopening after COVID-19 restrictions. It builds on growth of between 7% and 12% in each of the four quarters of 2024.
The latest figure takes groups’ MAT growth—for sales over the last 12 months compared to the previous 12 months, including new contracts—to 7.7%, well above the UK’s level of inflation in that period.
The first quarter of 2025 also extended a steady increase in the number of venues managed by contract caterers, which rose by 2.8% in the year to end-March.
The Contract Catering Tracker from CGA, Bidfood and UKHospitality 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: “Contract catering has been a standout performer in the out-of-home food and drink sector ever since the end of the COVID-19 pandemic, and their momentum has continued into 2025. Above-inflation growth and an upward trajectory in the client base are particularly impressive given a tough economic environment in which business and consumer confidence are fragile. While cost pressures remain high, we can be confident about further real-terms growth over the rest of the year.”
Debra Morrell, Business Development Controller for B&I at Bidfood, said: “I’m delighted to see that contract catering continues to perform strongly, demonstrating the value of high quality product and service, coupled with the hard work of teams and individuals.”
“Given the challenge of increased costs faced by the industry, it is reassuring to see the continued level of growth, which is also reflected in increases in the number of venues now managed by contract caterers. This certainly bodes well for the future outlook of the sector.”
Kate Nicholls, Chief Executive of UKHospitality, said: “Contract caterers are once again delivering strong growth, both in terms of their sales and the number of venues they manage.
“This is very positive news for the sector and shows the strong demand for the high-quality food and service that our caterers deliver.
“Of course, these figures are before the significant cost increases that hit the sector in April. I hope the resilience the sector has shown over the past four years persists, in face of these challenging circumstances.”
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, Harrison Catering Services, Olive Catering 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.
