The Olympic Games in Rio this summer is likely to drive interest in South American food, according to the new year predictions by foodservice consultancy Horizons.
The group also predicts increasing blurring of eating out formats and says overcapacity is likely to slow growth in the sector.
Horizons points out that the number of pub restaurants in the UK whose food sales exceed wet has grown from 2,600 in 2001 to 6,100 in 2014 – a 135% increase. The number of chain restaurants has also shown strong growth, from 7,700 outlets in 2001 to some 11,900 in 2014, a 55% rise. Quick service restaurants [primarily takeaways, home delivery and counter-order outlets] have seen a 78% growth, from 7,600 outlets in 2001 to 13,500 in 2014.
“It is difficult to see how this level growth in food outlets can be sustained in the longer term,” said Peter Backman, managing director, Horizons.
“Competition amongst operators means there will be a struggle to improve like-for-like sales across the sector, keeping menu prices fairly flat and margins low.”
The company predicts that 2016 is likely to see a continuation of the experimentation around formats that marked last year, such as the evening offers from Pret a Manger and Starbucks as well as Costa Fresco.
Backman said: “Consumers are looking for a good quality eating experience wherever they are. This, and the pressure on sites means that operators are being extremely innovative and changing their offer to adapt.”
He concluded: “The year ahead is likely to be a challenge for operators with competition at its most intense. Those that maintain their quality, keep their menus fresh, their prices competitive and adapt to changing demand will emerge the winners.”
On food trends, the company predicts: “Dishes are likely to become ever-hotter and more exotic with influences from South America and Brazil, inspired by the 2016 Olympic Games in Rio. Home delivery will benefit from the Games as consumers opt to stay at home to watch the major events. The home delivery market is already fast-evolving with the likes of Deliveroo and Just Eat expanding their businesses.”
