Contract caterers buck 2025 trend with near double-digit sales growth

Contract caterers have bucked the trend in hospitality having recorded near double-digit sales growth in the first three months of 2025.

According to aggregated data from foodservice businesses including BaxterStorey, Compass, Elior and Sodexo, year-on-year sales grew 9.5% between January and March 2025, while there was a 2.8% rise in the number of venues managed by contract caterers.

The Contract Catering Tracker from CGA by NIQ, Bidfood and UKHospitality, has now recorded a rise in sales for every quarter since mid-2021.

The growth in the first quarter is in line with last year, in which the caterers surveyed recorded growth of between 7% and 12% for every quarter.

The latest figure takes the moving annual total for sales over the last 12 months – compared to the previous 12 months – to 7.7%.

Karl Chessell, director of hospitality operators and food, EMEA at CGA by NIQ, said that contract catering had been the standout performer in the out-of-home food and drink sector ever since the end of the COVID-19 pandemic.

He added: “Above-inflation growth and an upward trajectory in the client base are particularly impressive given a tough economic environment in which business and consumer confidence are fragile. While cost pressures remain high, we can be confident about further real-terms growth over the rest of the year.”

UKHospitality chief executive Kate Nicholls said: “Contract caterers are once again delivering strong growth, both in terms of their sales and the number of venues they manage. 

“This is very positive news for the sector and shows the strong demand for the high-quality food and service that our caterers deliver. 

Debra Morrell, business development controller for B&I at Bidfood, said: “Given the challenge of increased costs faced by the industry, it is reassuring to see the continued level of growth, which is also reflected in increases in the number of venues now managed by contract caterers. This certainly bodes well for the future outlook of the sector.”