Restaurant sector continues to suffer from lack of consumer confidence: analyst
The food-to-go sector was touted as the “bright spot” in the market.
The restaurant sector continues to suffer from various factors like lack of consumer confidence, and falling standards of food and service, according to fresh analysis from Peter Backman.
Other factors include lack of clearly defined offers, poor reputation caused by issues such as allergens, and the rising costs of property, food and labour.
Whilst the uncertainty surrounding Brexit has been resolved, Backman noted that the economy is slowing down.
However, he noted that the food-to-go sector has been the “bright spot” in the market.
Moreover, it took a positive note of the pubs sector’s sales increase in the last quarter, as well as rise in alcohol sales. “This continued strong performance suggests that the big shakeout in the pub sector, which has lasted for two decades, may be coming to an end,” Backman commented.
Meanwhile, in the delivery space, a boost was seen from the emergence of delivery kitchens, which are “likely” to expand and transform the sector, as well as impact the grocery retail market.
The expansion of online delivery via sites such as City Pantry and Seamless is said to put pressure on caterers, whilst lunchtime feeding at work is also facing pressure from newer forms of working, like home working and co-working spaces.
“The overall effect of these activities are restricted to specific geographies (notably London), but they’re likely to grow and change the nature of workplace feeding in the longer term,” he said.
