Contract caterers’ Q1 sales rise 7% despite drop in units served
CGA data showed that units opened in Q1 were 3% fewer than in the same period last year
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Top contract caterers across the country experienced strong like-for-like sales growth of 7% for the first quarter of 2024 despite seeing a drop in the number of outlets they serve, CGA’s Contract Catering Tracker has revealed.
While this shows the sector’s continued recovery from the pandemic, with this being the tracker’s 12th quarter of growth in a row, data showed that units opened in Q1 were 3% fewer than in the same period last year.
The rate of sales growth is also well below the 13% recorded in the last quarter of 2023.
Karl Chessell, business unit director at CGA by NIQ, said: “Contract caterers have made a very impressive recovery from the seismic impacts of Covid and it’s encouraging to see more above-inflation growth in the first quarter. As inflation eases and the confidence of businesses and consumers improves, we can be optimistic about a strong 2024 for the sector.
“However, a slowdown of growth and a contraction in venues show there is no room for complacency, and caterers will have to stay resolutely focused on quality and value in the months ahead.”
Kate Nicholls, CEO of UKH, added: “Contract caterers continue to perform strongly, demonstrating the value held in the high-quality, consistent product the sector delivers day in, day out.
“The slight decrease in growth rate and units open in the first quarter shows the challenges that inflation and high costs continue to impose on the sector, reinforcing the need for hospitality’s cost burden to be rebalanced and reduced.”