It is the 13th quarter of growth in a row and an improvement on the rate of 7% recorded in the first quarter of this year. Growth in MAT sales—for the last 12 months compared to the previous 12 months—has reached 13%.
The strong performance comes despite another fall in the outlets served by contract caterers. The Tracker shows they occupied 3% fewer units in the second quarter of 2024 than 12 months earlier, continuing a steady decline since the start of the COVID-19 pandemic.
The Contract Catering Tracker from CGA and Bidfood aggregates sales from leading operators to provide monthly 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 sales growth is a sign of both the strength of Britain’s contract caterers and the spending confidence of the clients they serve. The sector has bounced back very well from the triple blows of COVID, the cost of living crisis and high inflation, and prospects are good for the remainder of 2024 and beyond. Nevertheless, ongoing contraction in the outlets served by caterers is a reminder of the strong competition for existing clients and the challenge of attracting new ones.”
Debra Morrell, business development controller for B&I at Bidfood, said: “It’s really pleasing to see a strong second quarter this year compared to the more challenging picture at the start of the year. April and May were excellent months driving fantastic market growth, despite the wet spring and early summer we saw, and evidence of the underlying progress that the sector continues to show. It is disheartening to see closures across the hospitality industry, and a reminder that whilst we are officially out of a recession, the cost of living crisis continues to put pressure on consumer confidence and spend, which means caterers need to be on the mark with their menus and offers, not only offering value but also quality and the engaging experience that consumers are seeking now more than ever.”
Kate Nicholls, chief executive of UKHospitality, said: “The consistent growth we’re seeing in contract catering is really positive, and shows the valuable contribution the sector continues to make to the economy.
“Tackling rising costs remains a key priority for the sector, with our most recent member survey showing how almost all businesses continue to be affected by cost increases across wages, food, drink and energy.
“Recruitment is a more positive story, with vacancies on a downward trajectory but there are still 100,000 vacancies in the sector. Measures to help the sector recruit, particularly those out of work, would be a significant driver of continued growth in contract catering.”
CGA’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., Graysons, 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.
