Contract caterers see Q1 sales rise 9.5% year-on-year

Contract caterers’ sales rose 9.5% year-on-year in the first quarter of 2025, according to the latest Contract Catering Tracker from CGA by NIQ, Bidfood and UKHospitality.

The increase marks the 15th consecutive quarter of growth for the sector, with sales expanding in every quarter since mid-2021. Growth in 2024 ranged between 7% and 12%.

Twelve-month sales to March 2025, including new contracts, were up 7.7% compared to the previous year – outpacing UK inflation over the same period. The number of venues managed by contract caterers also rose, climbing 2.8% in the year to March.

Karl Chessell, director for 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 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.”

Debra Morrell, business development controller for business and industry at Bidfood, said the continued growth “demonstrates the value of high quality product and service, coupled with the hard work of teams and individuals”.

Kate Nicholls, chair of UKHospitality, added: “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.”