Deliveries and casual dining to fuel UK foodservice growth over next two years- NPD Group

Industry
16/11/2017 - 07:00
The British foodservice industry should grow by an additional 83 million visits in 2018, predicts market research company NPD Group.

The group also forecasts that in 2019, visits in the eat-out or out-of-home (OOH) market could grow by a further 93 million.

Delivery services are expected to continue to expand and grow by an additional 101 million visits by 2019, which would be a 16% increase on 2017’s numbers.

NPD is predicting an additional spend of £656m (+17%) by consumers on deliveries in two years time.

Breakfast, lunch, burgers and casual dining were other factors listed as potential market drivers.

According to NPD, breakfast is currently on track to make up one-eighth of the 11.36 billion OOH visits expected by the end of this year.

This market is expected to grow by 5.7% in 2018 and by a further 4.8% in 2019 while it is expected that lunch will grow steadily by 2.2% and 1.9% respectively in the same two years.

Dinner visits are expected to decline by 134 million visits by the end of 2019, driven by “pressure on consumer spending”.

This part of the sector will be offset by the growth of delivery and other less expensive and more contemporary ways of dining, according to Cyril Lavenant, foodservice director UK at the NPD Group.

He said: “The rapid rise of delivery, providing a more affordable way of ordering from restaurants in a manner that resembles eating out, will provide some relief. Without delivery’s success, dinner visits would register a much sharper decline.

“Delivery shows no signs of running out of steam over the next two years and will help to bring home the bacon in Britain’s £55 billion foodservice industry.

“Burgers, casual dining, breakfast and lunch are also thriving and should help operators shrug off fragile consumer confidence, as well as inflation and stagnant wages, to achieve growth.

“We are especially bullish about burger chains and casual dining as these restaurants are meeting the consumer’s appetite for a contemporary experience that also offers a family-oriented treat.

“Regardless of a soft Brexit or a hard Brexit, any foodservice operator that invests for the future, and gives consumers the value, product quality and service quality they want, can look forward to growing their business in 2018 and 2019.”

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