It continues catering’s strong recovery from the COVID-19 pandemic, when sales were decimated by lockdowns and widespread working from home. However, with sales normalising and recovery in activity in Q3 last year, it marks a slowing of growth from the year-on-year figures of 30% and 18% in the first two quarters of this year.
Comparisons also softened in the private sector, from 20% growth in the second quarter to 13% in the third. The number of outlets served by contract caterers slipped by 4% and remains well below pre-COVID levels.
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, CGA’s director – hospitality operators and food, EMEA, said: “After the disruption of lockdowns and a drawn-out return of staff to workplaces, contract caterers’ trading is settling down into new post-COVID patterns. While the third quarter saw a slowdown in growth and a small drop in venues, underlying demand for contract caterers’ services in both the private and sector remains strong. However, with high inflation still impacting both businesses and consumers, trading conditions are likely to remain challenging well into 2024.”
Karl Chessell, CGA’s director – hospitality operators and food, EMEA, said: “After the disruption of lockdowns and a drawn-out return of staff to workplaces, contract caterers’ trading is settling down into new post-COVID patterns. While the third quarter saw a slowdown in growth and a small drop in venues, underlying demand for contract caterers’ services in both the private and sector remains strong. However, with high inflation still impacting both businesses and consumers, trading conditions are likely to remain challenging well into 2024.”
Debra Morrell, business development controller for B&I at Bidfood, said: “The resurgence we’ve seen in September is welcome news, after a more challenging August period, and follows the underlying positive direction the sector has been taking in getting closer to ‘business as usual’ pre-pandemic levels. The data points to strength across both public and
private sector elements, no doubt fuelled in part by ‘back to school’ and ‘back to uni’ mobilisations. Although the pace of growth year-on-year is slowing, growth is still growth and we are heartened to see it continue, despite the tightening of consumer purse strings and trading conditions. It is also testimony to contract caterers’ ability to deliver great value offers, which is so important to consumers right now.”
Kate Nicholls, chief executive of UKHospitality, said: “It’s encouraging that contract catering sales continue to remain strong and continue to climb. This is a good indication that demand for the sector has returned positively as the economy settles into new working patterns.
“The slowdown in growth demonstrates the challenges the sector faces, with business costs remaining incredibly high and sales not keeping up with inflation. We’re continuing to call for Government to tackle the root causes of inflation, namely energy, as a way to mitigate these challenges.”
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.
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.
