Restaurant brands, retailers doing more delivery after ‘eerily quiet' quarter: analyst
This is despite the “high price” paying by customers.
Consumers are spending less in restaurants and pubs and are increasing its use of delivered meals from restaurants, according to foodservice analyst Peter Backman.
“The last quarter has been eerily quiet, as if the industry is waiting for something to happen. Brexit – perhaps. Consumer confidence has been volatile, with some fearful about becoming unemployed, despite only a relatively small increase in unemployment to 3.9%,” he wrote in his latest bulletin.
Backman added that there was a “sense of trepidation and caution” over the prospect of the situation worsening and added that it was “unlikely” to change before the year ends.
“The positive to note is the businesses that rely on overseas customers. They have been doing well, based on the low value of sterling and the overall growth of 13% in overseas visitors to the UK this year,” he said.
He also cited the increasing number of restaurant brands and retailers targeting delivery, such as Sainsbury’s trials of delivery of store baked pizza via Deliveroo, Pret A Manger and Deliveroo’s exclusive partnership, The Restaurant Group launching Jumping Pans to join its other delivery brands – Pyjama Hotel, Stacks, Burger and Kick Ass Burrito – through UberEats and Just Eat.
Bistrot Pierre, meanwhile, was noted for launching its virtual delivery brand Birds, Buns and Bowls whilst Starbucks was cited for expanding its delivery service in London, Manchester and Glasgow, in partnership with UberEats.
