Contract catering sector still below 2019 levels due to spending behaviour
Inflation and rising costs affect consumer spending.
As cost-of-living continues to increase, consumers are more conscious in spending their money, which has hit contract catering businesses.
New research from CGA by NielsenIQ and Bidfood’s Contract Catering Tracker revealed that sales of the businesses are 11.5%, which is still down from the second quarter of 2019.
“The Tracker denotes that there are now 1,116 fewer units for caterers to serve than there was this time three years ago, as inflation and rising costs are impacting spending. In addition, it’s indicative of lower footfall at venues, despite an almost complete easing of consumer hesitancy,” read the report.
Karl Chessell, CGA’s director - hospitality operators and food, EMEA, said, “Despite a complete return to the ‘new normal’, the Tracker shows that the contract catering sector continues to lag behind.”
“Recent working from home and hybrid working models are a contributory factor, alongside inflation concerns that are causing businesses and consumers to tighten their belts. But there’s progressively been less loss of units and sales in three consecutive quarters now, indicating a slow but steady return of confidence in the sector,” Chessel added.
