Contract caterers achieve 10% sales growth in Q2
The strong performance comes despite another fall in the outlets served by contract caterers, as they occupied 3% fewer units in Q2 than 12 months earlier
Contract caterers saw sales rise by 10% in Q2, marking its 13th quarter of growth in a row and an improvement rate of 7% recorded in the first quarter of this year, according to CGA by NIQ and Bidfood.
Meanwhile, growth in moving annual total (MAT) sales – compared to the previous 12 months – has reached 13%.
The strong performance comes despite another fall in the outlets served by contract caterers, as CGA has revealed that they occupied 3% fewer units in Q2 than 12 months earlier. This continues a steady decline since the start of the pandemic.
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.
“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. April and May were excellent months driving fantastic market growth, despite the wet spring and early summer.
“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 spending.”
Kate Nicholls, chief executive of UKH, added: “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.”
