Contract caterers end 2023 with fourth quarter of double-digit growth

Britain's leading contract caterers saw sales grow by 12% year-on-year in the final quarter of 2023.

The Contract Catering Tracker by CGA by NIQ and Bidfood shows the sector achieved double digit growth in every quarter of 2023, although the increases have slowed through the year from 30% in the first quarter followed by 18% and 15% in the following two.

Total sales for 2023 were 18% higher than in 2022 despite a drop in the number of outlets served by caterers, which was 3% below 2022 levels at the end of the year and remains well below pre-Covid levels.

Karl Chessell, director at CGA by NIQ, said: "Last year was one of recuperation for contract catering, which has steadily and impressively rebuilt its client base after the upheaval of Covid lockdowns and trading restrictions.

"It also indicates a welcome return of staff to the workplaces served by caterers. However, like all businesses in the out-of-home food and drink sector, caterers continue to face severe cost challenges and deserve support from government in the forthcoming Budget."

Kate Nicholls, chief executive of UKHospitality, said: "Double-digit quarterly growth throughout the year is testament to the ability of contract catering to thrive in adverse economic conditions. However, growth slowing throughout the year illustrates just how challenging the cost-of-doing-business is becoming for businesses to navigate.

"As the voice for contract caterers, UKHospitality is continuing to campaign for the chancellor to introduce measures to mitigate ongoing cost challenges, particularly through a lower rate of VAT and reducing employer National Insurance Contributions."

CGA's partners on the Contract Catering Tracker include ABM Catering, Artizian Catering Services, BM, BaxterStorey, Blue Apple, CH&CO, Compass UK, Elior UK, the Genuine Dining Co., Graysons, Harrison Catering Services and Sodexo UK.

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