According to the annual report, this year entitled ‘Leading Through Unprecedented Change and Uncertainty: Food Service Management Market Report 2017’, the sector recorded turnover of £35 billion last year.
The BHA predicts that this figure will increase in both the short and medium term, stimulated by demographic trends, the ageing population and rising student numbers.
The ‘unprecedented change and uncertainty’ in the report’s title refers to industry worries about post-Brexit immigration and restrictions on the UK labour market.
Despite these fears and having 31% of their employees coming from the EU, the contract catering businesses surveyed in the report forecast their companies would add 32,000 new jobs next year.
The survey found that the industry’s main ‘ask’ from government is that they “support ways to improve attractiveness of catering as a long-term career choice”.
It also said it wants a more measured approach to the National Living Wage and a stronger recognition of the importance of immigration.
Ufi Ibrahim, chief executive of the BHA, said: “This report is a vital resource for those in the industry. Its results show the strength and confidence of the industry but also its concerns, most notably those about Brexit and its impact on employment.
“We, as the major representative of the hospitality and tourism sector, are the main voice of this industry and can communicate its concerns to government.”
Other findings from the report revealed that contract caterers recognise the rise of new trends with healthy eating and street food important as well as smart payments.
Self-service kiosks and online ordering were also listed as ‘key trends’ for the future. Recognised brands are seen as a major part of the future too.
Simon Stenning, executive director, MCA, said: “This complex market has been constantly evolving to face new challenges, and these keep coming, but the resilience of the leaders within it will ensure that it sees further growth.
“The key challenge from a catering perspective will be how to embrace retailing techniques and skills to fight off stiff competition from the High Street, whilst balancing the need to be ‘foodie’ caterers.”
The industry showed that it is firmly behind the government’s ambition to combat obesity and increase the nation’s health with almost all companies reducing the amount of sugar and salt in their offerings and providing healthier alternative meals.
Caroline Fry, chief executive – Business & Industry, CH&Co, said: "This sector works with just about every part of the economy and is a very big employer. Given how supportive we are of the Government’s efforts to reduce obesity and improve the nation’s health, we hope that in return they will understand the challenges faced by the industry and support us, especially when it comes to planning the potential restrictions on the UK labour market.”