Contract caterers report double digit sales growth

Contract caterers have seen double digit sales growth in the first quarter of the year, with organic growth in the sector driving performance.

According to the NIQ and CGA Contract Catering Tracker supported by Bidfood and UKHospitality, sales from January to March were 10.5% ahead of the same period in 2025.

The aggregated data from operators including BaxterStorey, Compass, Elior and Sodexo continues the upward trend from 2025, when the caterers achieved year-growth above 8% in all four quarters.

According to NIQ, the growth was partly driven by a 4% increase in the number of outlets tendering since last year, with the majority delivered by rising sales on site.

Karl Chessell, director of hospitality operators and food, EMEA at NIQ, said: "Contract catering has been a hugely impressive success story in recent years, and 16 straight quarters of year-on-year growth in a tough trading environment is a phenomenal achievement. It’s not just fractional increases but sustained above-inflation growth that reflects the quality of catering groups. 

"High costs and fragile confidence are going to impact all businesses in the out-of-home eating and drinking sector for the foreseeable future, but demand for caterers’ services is likely to remain high."

Debra Morrell, business development controller for B&I at Bidfood, said: "Growth is coming not just from more outlets, but from genuinely stronger day to day demand across both private and public sector workplaces. As employers place greater focus on employee experience, wellbeing and value, contract caterers are stepping up with flexible, high quality food and service offer that give people a reason to be in the workplace."

UKHospitality chief executive Allen Simpson said: "The sales growth contract caterers continue to deliver is remarkable, particularly staying ahead of the rate of inflation. It reinforces the importance of the contract catering sector to hospitality, especially at a time when all businesses, caterers included, continue to grapple with increasing costs and regulatory challenges."