The year-on-year increase of 9.5% between January and March means caterers’ sales have now risen in every quarter since mid-2021, when venues were reopening after Covid-19 restrictions. It builds on growth of between 7% and 12% in each of the four quarters of 2024.
The first quarter of 2025 also extended a steady increase in the number of venues managed by contract caterers, which rose by 2.8% in the year to end-March.
Karl Chessell, director - hospitality operators and food, EMEA at CGA by NIQ, said: “Contract catering has been a standout performer in the out-of-home food and drink sector ever since the end of the Covid-19 pandemic, and their momentum has continued into 2025.
“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.”
The tracker offers businesses a valuable benchmarking tool to measure performance across various metrics and market groupings, and participants in the Tracker receive additional analysis in return for their contributions.
CGA by NIQ’s partners on the Contract Catering Tracker include: ABM Catering, Artizian Catering Services, Bartlett Mitchell, BaxterStorey, Blue Apple, CH&CO, Compass UK, Elior UK, Harrison Catering Services, Olive Catering and Sodexo UK.
Debra Morrell, business development controller for B&I at Bidfood, added: “I’m delighted to see that contract catering continues to perform strongly, demonstrating the value of high quality product and service, coupled with the hard work of teams and individuals.
“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.”