The strong quarter reflects consumers’ steady return to workplaces and other locations served by contract caterers. It represents a small improvement on the 27% growth recorded by the Tracker in the fourth quarter of 2022.
Karl Chessell, CGA’s director - hospitality operators and food at EMEA, said: “These figures show contract caterers have made a strong recovery in the last 12 months from the turmoil created by Covid restrictions.
“Demand for the sector remains high, and we can expect the positive trends to continue through the spring and summer. However, with soaring costs putting caterers and their clients they serve under strain, trading conditions will remain challenging for some time to come.”
The latest year-on-year comparison benefits from a challenging first quarter of 2022, when the Omicron variant of Covid-19 kept some consumers away from public spaces. With inflation running above 10%, growth is also more modest in real terms.
Debra Morrell, business development controller for B&I at Bidfood, added: “Although there are some variations by month and the trend for March looks to be a little down on the months of January and February, the latest quarterly growth vs last year remains encouraging, sitting at 29.6%, which is ahead of the previous quarter which was 26.8%.
“We are heartened to see that positive upward trend across contract catering continues, particularly in the private sector, despite the three major challenges impacting the sector: rising food inflation, the cost of living crisis and staff shortages. Businesses are showing strong resilience, agility, and resourcefulness when it comes to encouraging footfall and spend at a time when consumers are counting every penny.”