Stock photo /Unsplash
Cheaper restaurants earned more in 2022
Restaurants that averaged £15 experienced strong growth between 2021 to 2022.
More than eight out of 10 F&B brands with a sub £15 average transaction value, such as Pret a Manger, Greggs, Tortilla, Chopstix, and itsu, experienced strong market growth between November 2021 and November 2022. This contrasts with sales growth of only 29% of operators with an average transaction value of £30 or more, a report by consumer and location intelligence specialist CACI revealed.
According to CACI Brand Dimensions Lead, Rachael Bedford, consumers are still committed to spending on social occasions but are choosing lower-cost options and money-saving deals that provide an opportunity to socialise and take a night off cooking at home.
In addition, CACI found that brands with a clear campaign have performed well, with some of the UK's most well-known names, such as McDonald's, KFC, and Franco Manca, implementing successful loyalty schemes to drive visit frequency and spending.
CACI also noted the impact of this on the delivery sector, where Uber Eats and JustEat grew their market shares by 0.3% and 0.9%, respectively, at the expense of Deliveroo. They are 16% cheaper on average and have a wider geographical spread than Deliveroo, whose market share fell by 1.7%.
CACI's Brand Dimensions also highlighted that the trend towards lower-cost socializing is mirrored in pubs and bars, which saw 38% market growth in Q4 of 2022 compared to Q4 of 2021, with the average spend down 16%. This suggests a trend away from "rounds," with consumers seeking greater control over their spending while still socializing in large numbers. According to CACI, this shift could result in venues exploring ways to deal more efficiently with a higher volume of smaller orders.
"Through Brand Dimensions, we can further explore the fundamental relationship between brands and consumers," said Rachael Bedford, Brand Dimensions Lead at CACI. "The trend of lower cost socializing alone provides hospitality businesses with crucial insight into how they can adjust their offer to continue to appeal to their customers, in the knowledge that they are still determined to enjoy a meal or drinks out with friends, family, and colleagues."
Brand Dimensions tracks the total monthly spend, average transactional spend, and balance of spend across online and offline channels, monitoring brand performance and the share of spend taken from consumers.
