Home Blog 2019 British foodservice industry visits will decrease over next two years as consumers increasingly prefer off-premise dining options
Feb 4, 2019

UK: Driven by technology and convenience, British foodservice industry visits fall as consumers increasingly prefer ‘off-premise’ dining options

Subscribe to our blog

Based on recent NPD research, after reaching its peak of 11.35 billion visits in 2017, we’re expecting the out-of-home or eat-out foodservice market will fall over the next two years in Britain. 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 is waning as more people shop online and opt for faster and more convenient ways of dining.

All of the meaningful growth in foodservice will be ‘off-premise’, which is where the industry will address the decline on the high street. The modest growth in the large takeaway and grab ‘n’ go channel, supported by the continuing delivery revolution, is enough to provide a significant majority of the growth in spend over the next two years for the entire British foodservice industry.

The growth of drive-thru is part of a trend towards more convenience and on keeping a lid on spending. This should come as no surprise given the average on-premise cost is nearly twice that of off-premise purchases; and the established trend of consumers trading down to cheaper eats when eating out is expected to continue.

But the reason why we’re seeing this growth in off-premise dining isn’t as simple as lower cost. Sure, cost has a lot to do with it, but consumer behavior and technology play roles, too.

Both casual dining and the QSR channel, including burger and bakery chains, will continue to grow as more consumers seek convenience through food delivery services, as well as the increase in emphasis on product and service quality. Our industry has caught up with technology in a big way with the number of customers using digital kiosks or order screens in a foodservice outlet, or ordering online or via apps for delivery or takeaway / grab ‘n’ go expected to exceed 1 billion per year for the first time by the end of 2020. The use of apps in particular is expected to continue to see a rapid increase in adoption and use, with visits that originate from an app (both click and collect and delivery apps) forecast to leap by 88% between now and the end of 2020.

In my opinion, any future growth in foodservice visits will be overwhelmingly tech-driven. Operators have realized that the full-scale implementation of digital order channels which offer a combination of convenience, engagement and new experience is a prerequisite for survival and growth in a sluggish, over-supplied market.


Stay current in your industry
SUBSCRIBE

Related Content

Tagged: Foodservice


From Animal Meat to Fungi, U.S. Consumers Tap into A Host of Sources to Get More Protein into Their Diets
From Animal Meat to Fungi, U.S. Consumers Tap into A Host of Sources to Get More Protein into Their Diets

The want of more protein in their diets have U.S. consumers seeking the coveted macronutrient from a variety sources.

Londoners Driving Trend for Delivery of Snacks and Coffee
Londoners Driving Trend for Delivery of Snacks and Coffee

Demand from families for snacking delivered by foodservice operators and delivery platforms increased 95% in London in 2020 versus 2019.

Despite Rising Restrictions, A Steady Flow of Canadian Consumers Turned to Their Favourite Restaurants in 2020
Despite Rising Restrictions, A Steady Flow of Canadian Consumers Turned to Their Favourite Restaurants in 2020

All off-premise order modes grew by varying degrees in 2020, while on-premise/dine-in orders declined by double-digits in 2020, according to The NPD Group

Edurne Uranga joins The NPD Group as Head of Foodservice Spain
Edurne Uranga joins The NPD Group as Head of Foodservice Spain

Edurne Uranga, joins The NPD Group as Head of Foodservice Spain - has extensive experience in providing analysis and insights to the foodservice market.

Newsletter

Subscribe and get key market trends and insights relevant to your industry each month.

We will not sell your information. View privacy notice. | Cookie Settings