Britain’s leading contract caterers achieved sales growth of 10% in the second quarter of 2024, according to the latest Contract Catering Tracker from CGA by NIQ and Bidfood.
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, business unit director 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."
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