Restaurant spend has increased in all regions in the last five years, says research
According to a report from Savills, the restaurant market and in particular the casual dining market has seen considerable growth over the last five years despite mixed fortunes in retail since the economic downturn. 1,800 restaurants opened in the UK during the 12 months to October 2015 (a 6.9% increase yoy), with branded restaurants increasing 55% in the past decade.
The report examined some of the key shifts in trends, locations and consumer behaviour that has been at the core of this growth.
The study found that the dining out market has recovered well from the economic turmoil of the last eight years. Restaurant spend has increased in all regions in the last five years, with the Southwest and Yorkshire/Humber expanding most significantly with spend on dining out estimated to be £580 more per household than five years ago.
"The next five years are expected to see household spend growth slow and the longer trend shows that we are still spending less on eating out than we were back in 2008. It will be another decade before household restaurant spend is expected to be at pre-recession levels. This is with the exception of Northeast, Wales, Southwest and Northern Ireland regions, where spend already exceeds 2008 levels," the report said.
The report also found that casual dining has reached a point where it is both influencing and being influenced by a change in consumer trends that impacts on a wide range of demographic groups. However, certain groups are leading the way, or have the potential to result in significant growth if their spend can be captured. The two main groups on the radar are Millennials and Families.
In 2015, 60% of people aged 18-24 ate out at least weekly; 5% more than 25-34s, twice the frequency of people over-60, and ahead of the GB average (44%). So while restaurant visitation is up for all demographic groups, younger diners, with lower financial commitments and more free time are helping to drive market growth. Millennials are particularly adventurous, dynamic, social and techsavvy. They are a key group to target, but as they also lack brand loyalty building a solid network of repeat customers is challenging. These diners are very trend focussed, like to try new places and have wide culinary tastes.
Visit savills.co.uk/research to find out more.
