The growing trend for convenience has attributed to less consumers going out.
The foodservice industry in the UK is said to have an increase in spend of 5% amidst a continuing fall in visits from 11.29 billion in 2018 to 11.23 billion by 2020.
According to a study by NPD, the spending growth is mainly driven by operators increasing menu prices as a response to rising cost pressures. The average individual cheque reached £5.00 in 2018 and will rise an additional 5.6% by 2020 to £5.30.
Meanwhile, the slip in visits is attributed to more consumers shopping online. The off-premise sector are predicted to see a 4% growth to 7.2 billion visits as well as a 10% rise in spend to £27.87 billion in the next two years. The takeaway and grab-and-go channel contributes 83% of this growth.
“The pressures affecting on-premise eating and drinking is a big theme in British foodservice. The old habit of going shopping and finding a place to sit down and eat is on the wane as more people shop online,” Dominic Allport, insights director with The NPD Group, said.
He also mentioned that the off-premise sector could be a way for the out-of-home foodservice industry to address the decline on the high street.
“But operators must address the big price gap between on-premise versus off-premise. The average on-premise cheque of £7.17 is nearly twice the £3.66 seen for off-premise purchases. Is that good for the industry?” Allport continued.
In addition, delivery and drive-thru are segments that are expected to grow by 2020 as well. The delivery segment will occupy 15% off-premise foodservice market as compared to 13% in 2018. As for drive-thru, NPD says it will contribute 14% in the next two years from up from 6%.
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