What you need to know
The value of the contract catering industry grew moderately in 2019 to reach £5.8 billion. Robust consumer spending, the growth of the leisure economy, and the mainstreaming of alternative diets has helped the sector counter serious headwinds.
Headwinds came in the form of rising labour costs due to minimum wage increases, and Brexit-related uncertainty which has reduced business investment and raised input costs through currency devaluation.
Generational shifts in the sector’s consumer base is driving the direction of the industry, with innovation and product launches focused on meeting demands for healthy and sustainable eating from younger generations entering the workplace.
These shifts in consumer preferences have been accompanied by structural changes to the way we work, and the way we use the high street. The continued growth of serviced offices and retail venue catering, in addition to promises of increased public spending, mean the sector is well-positioned for future growth, and continued expansion through cross-brand collaboration and acquisitions of smaller competitors.
Covered in this Report
For the purposes of this Report, contract catering is defined as the part of the foodservice industry that supplies meals to third-party organisations. This encompasses a wide variety of businesses and institutions.
This report concentrates on the main sections of contract catering; Mintel has used the following definitions:
Business and industry: company staff catering, including government and agency locations.
Local authorities: local government.
Education: including both state education, such as schools, colleges and universities and independent schools.
Healthcare: including NHS and trust hospitals, private hospitals, and private nursing homes.
Defence: MoD and armed services.
Remote sites: including oil rigs, training centres and construction sites.
Retail catering: including catering for the public in high-street retail outlets.
There has been an increasing trend for facilities management companies to provide contract catering services. However, as these services are often bundled with other services and provided in one facilities management contract, it is not always possible to analyse the value of the catering aspect.
