EXCLUSIVE: Slowing food price inflation not enough to prevent footfall reduction
Since June, foodservice price inflation has consistently decreased.
Meaningful Vision tracks the top 100 chains among fast food, coffee shops, and casual dining; according to their analysis of the most recent data the major UK fast-food chains experienced an average 16% price increase in the second half of 2023 in comparison with the previous year.
Since June 2023, foodservice price inflation has consistently decreased with November witnessing the smallest month-on-month average price rise at 13%, intensifying the trend seen throughout this period toward less significant month-on-month price increases.
The UK’s Office for National Statistics reported the core CPIH annual inflation rate was 5.2% in November 2023, whilst prices for food and beverages went up by 9%. Additionally, it reports a slowdown in the rate of price increases for the food and beverage sector by 8%, from 17% to 9% in the latter half of 2023.
"Whilst decreasing food price inflation is potentially good news for both operators and consumers, it must be noted that fast-food, coffee shop and casual dining prices increased with greater rapidity than the general inflation rate for the food and beverage sector, including retail," Meaningful Vision CEO Maria Vanifatova remarks.
"However, limitations imposed on operators by a decline on the side of consumer demand could result in restrictions against further price increases."
Read the full story here.