Cost pressures hit growth for contract caterers despite bounce back
CGA said that offices and other venues served by caterers remain well short of pre-pandemic usage, and the soaring costs facing all businesses and consumers are adding to the challenges
Sales in the contract catering sector remain well below pre-Covid levels as sales are 20% below the figure recorded in the first three months (Q1) of 2019, despite year-on-year increases.
According to CGA’s Contract Catering Tracker, caterers now serve around 1,250 fewer units than they did three years ago, and the impact of high inflation on spending and costs are also restricting real-terms growth.
CGA said this reflects the closure of many contract catering venues and lower footfall in others, despite an easing of restrictions and concerns about Covid.
However, sales from January to March 2022 were 69% higher than Q1 2021, when the country was under lockdown restrictions.
The tracker found that, despite the challenges, there are signs that both units and sales are “building momentum”. The three-year sales comparison of -20% marks a steady improvement on the figure of -36% in the Q3 2021, and of -26% in Q4.
Karl Chessell, CGA director of hospitality operators and food, EMEA, said: “These figures show the contract catering sector will be dealing with the after-shocks of Covid-19 for some time to come.
“Offices and other venues served by caterers remain well short of pre-pandemic usage, and the soaring costs facing all businesses and consumers are adding to the challenges. Our Tracker indicates that sales momentum is starting to build, but we can expect fierce competition for sales and share throughout 2022.”
