Contract catering sales rise 12% YoY in Q4
Monthly breakdowns showed that growth peaked in December, as organisations and people turned to caterers for Christmas celebrations
Britain’s top contract caterers saw their sales grow by 12% year-on-year in the fourth quarter of 2024, according to the latest Contract Catering Tracker from CGA by NIQ and Bidfood.
As the tracker’s highest growth of the year, it followed increases of 7%, 10% and 7% in the first three quarters. This means that caterers have now increased sales year-on-year in every quarter since mid-2021 when venues were reopening after Covid restrictions.
Monthly breakdowns showed that growth peaked in December, as organisations and people turned to caterers for Christmas celebrations. This lifted catering groups’ MAT groups, including new contracts to 14%.
The fourth quarter also extended a “steady” post-pandemic rise in the number of venues managed by contract caterers, which means that top catering groups now serve 4% more outlets than they did 12 months ago.
Karl Chessell, director at CGA by NIQ, said: “Double-digit Q4 growth caps an exceptionally good year for Britain’s contract catering sector. Businesses have built back superbly from the after-shocks of Covid and the extended period of high inflation, and a surge in sales over the festive season shows their services remain attractive to both public and private sector clients.
“This year will bring more cost pressures, not least from unwelcome increases in National Insurance contributions, but the outlook for contract catering is very positive.”
Kate Nicholls, chief executive of UKH, added: “Contract caterers are once again delivering significant sales growth, demonstrating its economic importance and ability to grow. The sector continues to drive impressive growth despite ongoing cost pressures, but these pressures will only intensify in April when £3.4 billion of cost hits the sector.
“We’re urging the government to delay the changes to the employer National Insurance Contributions threshold. We’re also raising the urgent need for the government to overhaul school meals and increase the per-meal funding allowance. This will help to rectify the situation many caterers are facing where funding for provision has dropped dramatically and now lags significantly behind key input costs such as labour and food.”
