Annual turnover in the UK contract catering market grew by 3.9% to £4.1m in 2008, according to the latest survey by the British Hospitality Association.
Wage and food costs accounted for 77% of the total, similar to 2007.
The biggest rise came in the cost of food and beverages, which increased by 8% to £1.4b. Some companies said their food costs had soared by as much as 20% year-on-year.
With wage increases being contained below 3%, labour costs grew marginally by 0.5% to £1.81m, reflecting also a decline in both full-time and part-time staff.
Other costs increased by 3.8% to £405m. The price of energy has grown by up to 45% since 2007 in some cases.
Income from management fees rose by 3.7% to £560m.
These facts and figures are reported in the Food and Service Management Survey 2008 published by the British Hospitality Association. The report is available for £50 as a hard copy or for £35 as a PDF file.
More facts and figures from the Food and Service Management Survey
Number of meals served by UK contract caterers >>
Key ratios in contract catering >>
Types of catering contract >>
Number of employees in UK contract catering market >>
Structure of the UK contract catering market >>
Annual turnover in the UK contract catering market from 1993 to 2007
| Year | Turnover |
| 2008 | £4.133b |
| - Labour | £1.81b |
| - F&B | £1.358b |
| - Other | £405m |
| - Management fee | £560m |
| 2007 | £3.977b |
| - Labour | £1.79b |
| - F&B | £1.257b |
| - Other | £390m |
| - Management fee | £540 |
| 2006 | £3.768b |
| - Labour | £1.713b |
| - F&B | £1.175b |
| - Other | £360m |
| - Management fee | £520m |
| 2005* | £3.673b |
| - Labour | £1.677b |
| - F&B | £1.126b |
| - Other | £360m+ |
| - Management fee | £510m |
| 2004 | £3.898b |
| - Labour | £1.720b |
| - F&B | £1.296b |
| - Other | £363m |
| - Management fee | ££520m |
| 2003 | £3.783b |
| - Labour | £1.66b |
| - F&B | £1.27 |
| - Other | £343m |
| - Management fee | £520m |
| 2002 | £3.695b |
| - Labour | £1.61b |
| - F&B | £1.31b |
| - Other | £290m |
| - Management fee | £490m |
| 2001 | £3.514b |
| 2000 | £3.266b |
| 1999 | £3.010b |
| 1998 | £2.651b |
| 1997 | £2.258b |
| 1996 | £2.227b |
| 1995 | £2.257b |
| 1994 | £2.180b |
| 1993 | £2.006b |
| - Labour | £862m |
| - F&B | £610m |
| - Other | £124m |
| - Management fee | £210m |
* Figures adjusted to take account of Compass's sale of Select Service Partner in 2006: before adjustments, turnover totalled £3.865b.