Contract caterers' sales surge 9.5% in first quarter of 2025

Britain’s leading contract caterers achieved near-double-digit sales growth in the first three months of 2025, according to the new Contract Catering Tracker from CGA by NIQ, Bidfood and UKHospitality.

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 latest figure takes groups’ MAT growth—for sales over the last 12 months compared to the previous 12 months, including new contracts—to 7.7%, well above the UK’s level of inflation in that period. 

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.  

The Contract Catering Tracker from CGA, Bidfood and UKHospitality aggregates sales from leading operators to provide quarterly reports with year-on-year analysis. It 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.  

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.” 

Debra Morrell, business development controller for B&I at Bidfood, said: “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.” 

Kate Nicholls, chief executive of UKHospitality, said: “Contract caterers are once again delivering strong growth, both in terms of their sales and the number of venues they manage.  

“This is very positive news for the sector and shows the strong demand for the high-quality food and service that our caterers deliver.  

“Of course, these figures are before the significant cost increases that hit the sector in April. I hope the resilience the sector has shown over the past four years persists, in face of these challenging circumstances.”