Contract catering Q3 sales up 41% but remain below 2019 levels
Sales in the sector are trending upwards shown by the fact that first quarter sales were 20% behind 2019 and second quarter sales were 12% behind.
Sales in the contract catering sector have increased 41% between July and September this year, however still remain below pre-Covid levels, according to the latest contract catering tracker from CGA.
Sales in this years’ third quarter were down 9% when compared with the same three month period in 2019 and with inflation over 10% sales are much further behind 2019 in real terms.
The data also shows that the number of units served by the industry increased by just over 500 when compared with September last year but that is still 800 short of September 2019.
However, CGA found sales in the sector are trending upwards shown by the fact that first quarter sales were 20% behind 2019 and second quarter sales were 12% behind.
Karl Chessell, CGA’s director – hospitality operators and food, EMEA, said: “After more than two years of Covid upheaval, contract caterers are now besieged by soaring costs that are impacting spending by their clients and consumers alike. Considering the seismic challenges, it is encouraging to see that sales are substantially up year-on-year and are approaching pre-Covid levels.
“Contract catering is a resilient and innovative sector, but with business and consumer confidence so fragile there are some tough months ahead.”
Kate Nicholls, UKHospitality chief executive, said: “It’s clear from this data that the record levels of inflation we’re experiencing is hitting contract catering businesses hard; whether that’s soaring costs impacting demand and sales, or the extreme food price inflation we’re seeing impact caterers in their own costs.
“It’s encouraging that sales are up year-on-year in the last quarter, and I hope that momentum continues, but the fact the sector still remains below pre-Covid levels shows the scale of the recovery required. Contract catering is an incredibly important part of our sector and what it delivers for the economy, which is why I have every faith they will continue building on last quarter’s success and ensure they continue to deliver for their customers.”
