2021: Year in Review
We look back at the highs and lows of the British multi-site restaurant industry these past twelve months.
The past twelve months offered a myriad of challenges for Britain’s quick service and fast casual restaurant industry, forcing chains that wish to thrive to be agile amidst lockdowns whilst serving up opportunities for those who were ahead in delivering multi-channel experiences.
QSR Media’s Year In Review looks back at the most significant developments these past twelve months:
Living with lockdowns
It was a long road to reopening for the industry, which dealt with a combination of guidelines for operating. Delivery and takeaway remained a key asset for chains that previously relied on dine-in. Recently, Britain announced the first death from the omicron coronavirus variant, prompting questions if there would be another lockdown soon.
- Losses at top 100 restaurant groups surges 112% to £571m
- Over 7,000 licensed premises in limbo following ‘Freedom Day’: report
- Delivery, takeaway sales slow in October as dine-in confidence builds
- Food-to-go market to return to pre-COVID levels in second half of 2022
Brand pivots, multiple revenue streams
Learning from last year, 2021 was a year of opportunity for chains to augment their business models to fit with current customer expectations. Some went the retail route, whilst others turned to non-traditional locations and unique formats.
- Pizza Hut Delivery expands to petrol stations with EG Group franchise deal
- Meeting customer expectations in a post-lockdown world, as told by Pizza Hut, German Doner Kebab, PAUL and Triple Two Coffee
- Dunkin’ Donuts to showcase items at 300 One Stop stores across the UK
- Pret A Manger enters self-service coffee scene with new ‘Express’ format
The spectre of inflation
The industry is also facing problems stemming from UK inflation, which hit a ten-year high, with the Bank of England expecting it rise further to around 5% in the spring of 2022 before falling back toward its 2% target by late 2023.
- Inflation seen in months ahead due to “chronic” labour shortages, “insufficient” stock
- Shopper conference stable amidst rising inflation
Staffing crisis
QSRs and fast casual restaurants are also feeling the pains resulting from staff shortages to almost all parts of the economy, putting severe pressure especially on medium-sized businesses. Chains have been encouraged to further utilise tech, whilst other chains opted for hiring sprees.
- Can technology fully offset lingering labour shortage pains?
- Domino’s hiring 5,000 chefs, delivery drivers in response to ‘strong’ demand
Ambitious expansion drives, acquisitions
Medium-sized chains and fast food heavyweights also seized the year to announce ambitious growth plans in the UK. American chains such as Popeyes and Wendy's also made their presence felt with new flagships.
- Domino's to accelerate delivery business, eyes 200 additional stores
- Popeyes' UK co-founder says chain coming to "own a space" in chicken segment
- Wendy's planning to have up to 400 new restaurants as it plots UK return
- Caffè Carluccio brews challenge to high street coffee brands with 500-store plan
- Itsu poised to open 100 new outlets after striking Bridgepoint deal
- Pret A Manger draws up plans to open 100 new franchised shops
- Papa John’s eyes 250 restaurants in Germany over next seven years
- Papa John’s is growing an appetite for ‘fortressing’ to drive growth
- A&W reaches deal to pilot Pret A Manger products in Canada
- Creams expands into Egypt with first int’l franchising deal
- EG Group grows F&B portfolio anew with Cooplands acquisition
Sustainability still on the forefront
Sustainability remained a key priority for chains during the year, with major businesses pledging various targets.
- McDonald’s to slash carbon emissions across UK business by 2040
- Boparan Restaurant Group: All brands now carbon neutral
- Le Pain Quotidien makes cage-free eggs commitment
- Greggs pledges to use only Fairtrade chocolate in its products
- KFC eyes “zero-carbon” restaurant concept by 2040
- Starbucks to offer reusable cup-share scheme in European stores by 2025
- Costa Coffee to install EV chargers at up to 200 drive-thru sites
- Nando's on track to become carbon-neutral by November, chain says
More vegan fast food
Vegan food remained a key opportunity for chains looking to reach a growing market, with particular chains turning to partnerships with plant-based producers to hasten product launches.
- Popeyes to feature first vegan product as part of UK debut
- Pizza Hut Delivery adds Beyond Meat range to permanent menu
- Greggs rolls out vegan baguettes nationwide
- Prezzo partners with THIS to expand vegan offering
- Burger King launches Vegan Royale burger
Partnerships, unique activations
Chains also took this year as an opportunity to reach new and growing audiences, including the UK gaming scene. Others turned to unique activations to further brand reach.
