How to Sell a Catering Services Business
Catering services businesses — contract catering, event catering, school or corporate catering — achieve EBITDA multiples of 3.0–5.5× from buyers attracted by long-term service contracts and recurring site-based income. Contract caterers operating on school, hospital, corporate, and industrial sites on multi-year agreements are significantly more acquirable than event-only caterers dependent on discretionary event budgets.
Who Buys Catering Services Businesses?
National and regional contract catering companies (Compass, Sodexo independents, Apetito) seeking site additions. FM companies internalising catering services. Individual operators with hospitality management backgrounds. Healthcare catering specialists.
What Drives Value in a Catering Services Sale
Long-term contract catering agreements (3-5 year site contracts) with public sector or commercial clients. NHS or education sector contracts providing inflation-linked, publicly-funded income. TUPE-employed skilled kitchen team reducing transition risk. BRC Food Safety or Safe Catering certification. FSA 5-star food hygiene ratings across all operated sites.
Common Due Diligence Concerns
Contract catering agreements often contain change-of-control provisions requiring client consent for ownership transfer. TUPE obligations for kitchen and service staff are significant — staffing costs must continue under the new owner. Food hygiene and allergen compliance documentation across all sites must be current. Kitchen equipment at client premises — ownership versus leasing arrangements must be reviewed. Seasonal volume variability for school and corporate caterers.
Typical Sale Timeline
A catering services business typically takes 5–9 months to sell from preparation to completion.
What Is a Catering Services Business Worth?
EBITDA multiples for catering services businesses in the UK range from 3.0–5.5×. See our full Catering Services valuation guide.