Contract caterers’ sales rise 8% in Q2

Contract caterers saw sales and outlets “sharply” rise by 8% in the second quarter of 2025, according the latest Contract Catering Tracker from CGA by NIQ, Bidfood and UKHospitality. 

This continued a “long run of growth” in every quarter since mid-2021, when caterers began to recover from the pandemic. 

After 9.5% growth in Q1, CGA said the latest results “complete a very strong first half of 2025 in which contract caterers have outperformed most other sectors of hospitality”.

The latest figure takes groups’ MAT growth – for sales over the last 12 months compared to the previous 12 months, including new contracts – to 7.9%. 

Businesses also continued an upward movement in outlet numbers over the quarter, as units increased by 9.3% and now stand “well above pre-Covid levels.

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

Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “Contract catering has staged an outstanding comeback from the widespread closures of COVID, and near-double digit growth in both sales and outlets is testament to its resilience and innovation. 

“It is even more impressive in the context of challenging and high-cost trading conditions that have sapped the confidence of businesses and consumers alike. Inflationary pressures are unlikely to ease soon, but caterers are likely to continue to be among the standout performers of the sector for the rest of 2025 and beyond.” 

Debra Morrell, business development controller for B&I at Bidfood, added: “Against a backdrop of economic and market conditions that are not conducive to growth right now, this quarter’s strong results are particularly welcome. Encouragingly, the past couple of months have shown strong signs of recovery, supported by an increase in the number of sites and stronger activity in the private sector. 

“This resilience and adaptability are reassuring. However, with further inflation likely, consumer confidence still fragile, and the Autumn Budget approaching, it will be vital for operators to continue demonstrating that they can offer value compared with the high street.”

Kate Nicholls, chair of UKHospitality, said: “Contract caterers continue to perform strongly and this quarter’s excellent growth in both sales and outlet numbers is clear proof of the demand for the high-quality service the sector provides.

“These impressive numbers are important as costs continue to bite, and I know that contract caterers are continuing to feel the impact of increased costs. It’s critical we see action from the Government to reduce costs at the Budget this autumn to support contract caterers and stop the sector being taxed out.”