Contract catering toasts 12% sales boost in Q4 2024

Contract caterers reported their highest growth of the year in the fourth quarter of 2024, according to recent figures from CGA by NIQ and Bidfood.

The latest Contract Catering Tracker showed that Britain’s top foodservice companies saw a 12% year-on-year sales boost, up from 7%, 10% and 7% in the first three quarters of 2024.

The industry was bolstered by high demand for Christmas catering, with monthly growth peaking in December.

This marks an encouraging trend as caterers have seen sales increasing year-on-year in every quarter since mid-2021.

The leading foodservice providers also reported a 4% increase in the number of outlets they are serving compared to 12 months ago.

Karl Chessell, director, hospitality operators and food, EMEA at CGA by NIQ, said: “Double-digit fourth-quarter 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.”

Debra Morrell, business development controller for B&I at Bidfood, added: “It’s great news to see that after a subdued last quarter’s growth at 6.8% revenue for Q3 2024 versus Q3 2023, we’ve seen greater buoyancy in the market in the latest quarter, which has climbed back up to 11.6% versus a year ago. It’s refreshing to see a positive shift with the sector bucking the previous trend of slowing growth we’ve been seeing for some time.

“This seems to have been driven by the private sector, reflecting a return to offices for some employees. However, there may also be other influences at play, including contract renegotiations and increased levels of outsourcing. Of course, the disparity between public and private sector performance could also be symptomatic of additional pressure on public budgets.”

The Contract Catering Tracker from CGA and Bidfood combines sales from leading operators such as ABM Catering, Artizian Catering Services, Bartlett Mitchell, BaxterStorey, Blue Apple, CH&Co, Compass UK, Elior UK, the Genuine Dining Co, Harrison Catering Services and Sodexo UK.

Photo: Greerascris/Shutterstock