Contract caterers finish Q4 2025 with 9% growth

Contract caterers ended 2025 with near-double-digit growth in sales, CGA by NIQ’s latest Contract Catering Tracker has revealed.

Sales in the fourth quarter of the year were 9% ahead of the same period in 2024, reflecting high demand in the run-up to Christmas.

The numbers have shown a run of growth for contract caterers, with comparisons above 8% in every quarter of 2025, though the figure was slightly down from the total of 12.2% in the third quarter.

The moving annual total growth for sales over the whole of 2025 compared to 2024 stood at 8.4%, which is more than double the UK’s rate of inflation throughout the 12 months.

The Contract Catering Tracker, supported by Bidfood and UKHospitality, shows a more modest increase in the number of outlets served by contract caterer, which rose by 1.3% quarter-on-quarter. This indicates that the bulk of caterers’ sales growth in 2025 was organic rather than driven by new sites.

Karl Chessell, director – hospitality operators and food, EMEA at NIQ, said: “In a tough trading environment, contract caterers did exceptionally well to touch double-digit growth throughout 2025. Crucially the fourth-quarter performance was driven not just by new clients or raised prices but by high volumes, which will have helped to offset some sharp increases in key costs. The figures reflect the broad appeal and high quality of Britain’s catering sector, and it can look forward to more growth in 2026.”

Debra Morrell, business development controller for B&I at Bidfood, said: “We’re delighted to see that the sector has enjoyed a strong last quarter of 2025, sitting ahead of the wider out of home market and ahead of inflation. Consumer confidence remains fragile, and with the gap between wages and inflation narrowing, the pressure will continue in 2026 to deliver value for money in the face of a strong competition and promotional activity from the high street.

“Innovation, quality, value and great service have all been at the heart of the sector’s growth over the last few years, and these strengths will lend us the resilience to see us through another year of rising costs, operational challenges and regulatory change.”

Allen Simpson, chief executive of UKHospitality, added: “Contract caterers continue to deliver excellent growth, across both sales and outlets served. In the face of acute cost challenges, this consistent performance demonstrates the sector’s resilience and its significant contribution to the economy.”

NIQ’s partners on the Contract Catering Tracker include ABM Catering, Bartlett Mitchell, BaxterStorey, Blue Apple, CH&Co, Compass UK, Elior UK, Harrison Catering Services, Olive Catering and Sodexo UK.

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