Good Q4 for contract catering but sales still behind 2019 levels
The number of outlets served by contract caterers has fallen by about 14% since late 2019
Contract catering sales were 27% higher between October and December 2022 compared with 2021, according to data from CGA and Bidfood.
Caterers’ sales in the private sector were up by 32% year-on-year as more people switched back from home-based working to offices.
However, Q4 in 2021 was impacted by growing concerns about the Omicron variant of COVID-19 aiding the increase.
Sales in the last quarter of 2022 were 7% below the equivalent period in 2019, and even lower in real terms as a result of ballooning inflation.
The number of outlets served by contract caterers has fallen by about 14% since late 2019.
Karl Chessell, CGA’s director – hospitality operators and food, EMEA, said: “Contract caterers have battled back well from the havoc of COVID-19 and lockdowns, and sales have steadily grown since the end of restrictions.
“But sales and margins are now under intense pressure from the soaring energy and food costs that face both caterers and the places they serve. Real-terms growth will be difficult in 2023, and all businesses will be hoping for respite on inflation as the year goes on.”
Debra Morrell, business development controller at Bidfood added: “It’s good to see that on the face of it, the sector is creeping back towards its pre-COVID-19 levels, although we believe value sales (due to inflation) may mask the true picture in terms of meals served. It’s also difficult to factor in the difference that train strikes, the cold weather and the cost of living crisis may have had on this quarter’s results.
“We are certainly seeing operators respond proactively through innovation in terms of exciting concepts, and social or sharing offers to encourage uptake and spend. With the right offer, there is always an opportunity to compete with the high street.”
