UK managed restaurant delivery sales drop 2%
This is the 15th consecutive year-on-year sales decline.
Sales of delivery and takeaway orders at top-managed restaurant groups in the UK were down 2% in January 2023 compared to the same period last year, according to CGA by NielsenIQ's latest Hospitality at Home Tracker.
This marks the 15th consecutive month of year-on-year sales decline for the ordering-in market, as delivery volumes fell by 12%. Despite this, delivery and takeaway sales remain significantly higher than pre-pandemic levels, accounting for 17% of total sales at managed restaurant groups.
Karl Chessell, CGA's director for hospitality operators and food, EMEA, noted that the plateauing of delivery and takeaway sales since late 2021 has both positive and negative implications for restaurant operators. On the one hand, it suggests that many consumers have returned to dining out as restrictions ease, seeking the unique experiences that only in-person dining can provide. On the other hand, rising household bills and high business costs are leading some consumers to cut back on discretionary spending. Chessell also highlighted the challenge of protecting thin profit margins amidst the high costs of doing business and the sizable cuts taken by third-party delivery platforms.
The CGA Hospitality at Home Tracker offers a benchmark for measuring delivery and takeaway sales performance, with monthly reports on the value and volume of sales and year-on-year comparisons..