Contract Caterers Experience Double-Digit Growth in Q2 2024 – London Business Update
Britain’s leading contract caterers have seen a significant boost in sales, with a 10% growth in the second quarter of 2024, according to the latest Contract Catering Tracker from CGA by NIQ and Bidfood. This growth marks the 13th consecutive quarter of positive performance for the sector, showing a steady improvement from the 7% growth recorded in the first quarter of the year. The overall growth in MAT sales, comparing the last 12 months to the previous 12 months, has reached an impressive 13%. Despite facing challenges such as a decrease in the number of outlets served by contract caterers, the industry has managed to maintain its upward trajectory.
The Contract Catering Tracker from CGA and Bidfood is a valuable tool that aggregates sales data from leading operators to provide monthly reports with year-on-year analysis. This data allows businesses to benchmark their performance against industry standards and identify areas for improvement. Participants in the Tracker receive additional analysis in return for their contributions, making it a mutually beneficial resource for the sector.
Karl Chessell, business unit director at CGA by NIQ, commented on the strong sales growth, stating, “Double-digit sales growth is a testament to the resilience of Britain’s contract caterers and the confidence of their clients. Despite the challenges posed by the COVID-19 pandemic, the cost of living crisis, and high inflation, the sector has shown remarkable resilience. Looking ahead, the prospects for the remainder of 2024 and beyond are promising. However, the ongoing contraction in the outlets served by caterers highlights the competitive nature of the industry and the importance of attracting and retaining clients.”
Debra Morrell, business development controller for B&I at Bidfood, expressed her satisfaction with the sector’s performance in the second quarter of 2024, particularly compared to the challenges faced earlier in the year. She noted, “April and May were standout months for market growth, despite the adverse weather conditions we experienced in the spring and early summer. This positive performance is a reflection of the sector’s continued progress and adaptability. However, the closures across the hospitality industry serve as a reminder that economic uncertainties, such as the cost of living crisis, continue to impact consumer confidence and spending. Caterers must remain vigilant in offering value, quality, and engaging experiences to meet the evolving needs of consumers.”
Kate Nicholls, chief executive of UKHospitality, emphasized the importance of the contract catering sector’s consistent growth in contributing to the economy. She highlighted the need to address rising costs, as evidenced by a recent member survey showing the impact of cost increases on wages, food, drink, and energy across the industry. While recruitment trends are improving, with a downward trajectory in vacancies, there are still significant challenges with 100,000 vacancies in the sector. Nicholls stressed the importance of implementing measures to support recruitment efforts, particularly for those who are currently unemployed, to sustain the sector’s growth momentum.
Industry Insights and Perspectives
The contract catering industry plays a vital role in providing food services to a wide range of clients, including businesses, schools, hospitals, and other institutions. The sector has undergone significant transformations in recent years, adapting to changing consumer preferences, technological advancements, and economic fluctuations. Despite facing challenges such as labor shortages, supply chain disruptions, and regulatory changes, contract caterers have demonstrated resilience and innovation in meeting the diverse needs of their clients.
Market Trends and Opportunities
The growth of contract caterers in the second quarter of 2024 reflects broader trends in the food service industry, including the increasing demand for convenient, high-quality dining options. With consumers becoming more health-conscious and seeking diverse culinary experiences, contract caterers have an opportunity to differentiate themselves through menu innovation, sustainability initiatives, and personalized service offerings. By leveraging data analytics and consumer insights, caterers can tailor their offerings to meet evolving trends and preferences, driving growth and customer loyalty.
Challenges and Strategies for Success
While the contract catering sector has shown resilience and growth in recent quarters, it continues to face challenges that require strategic planning and proactive solutions. In addition to cost pressures and labor shortages, caterers must navigate changing regulations, fluctuating commodity prices, and evolving consumer expectations. By investing in training programs, technology upgrades, and sustainable practices, caterers can enhance their operational efficiency, reduce waste, and improve customer satisfaction. Collaborating with suppliers, industry partners, and regulatory agencies can also help caterers stay informed about market trends and compliance requirements, ensuring long-term success and sustainability.
In conclusion, the contract catering industry’s double-digit growth in the second quarter of 2024 is a testament to the sector’s resilience, adaptability, and commitment to excellence. By leveraging data-driven insights, embracing innovation, and addressing key challenges, contract caterers can capitalize on emerging opportunities and sustain their growth trajectory in the dynamic food service landscape. As the industry continues to evolve, collaboration, creativity, and customer-centricity will be essential drivers of success for contract caterers looking to thrive in a competitive market environment.