The UK foodservice sector is set for value growth of £10bn by 2019, making the industry worth over £56.3bn, according to consultancy Horizons.
Managing director Peter Backman told the company’s annual briefing this week: “More robust levels of consumer consumption have been prompted by the fact people are now less exposed to high levels of borrowing, are more certain of their jobs, and are buoyed by low inflation. This is great news for the eating out sector – and while it’s not racing ahead, it is growing at a higher level than we have seen since before the economic downturn,” he said.
He said group operators were driving much of the growth in particular pizza delivery outlets, managed branded pubs, pub restaurants and coffee shops.
Margins were improving, he said, giving operators money to invest, evident in a number of businesses changing hands, rebranding or expanding.
He added: “The use of discounting and money-off vouchers has levelled off, with operators using them much more tactically to support particular events or occasions, such as Mother’s Day or Valentine’s Day.
Horizons’ director of marketing & business development Emma Read outlined the fact that average spend on a three-course meal has risen in the past year to £14.48. She said another ongoing trend is that 35-44 year olds are eating out more than ever.
She said: “We are now also catering for a slightly older average customer, whose needs and habits have changed and vary depending on the occasion, the location and the time of day.”
Read said that current food trends included the increasing number of regional American dishes on menus as well as those of world cuisines such as Vietnamese, Peruvian and Egyptian. She said there was also a trend towards catering for health and well-being considerations as well as offering more indulgent dishes.
Horizons’ director of services Nicola Knight highlighted some of the smaller chains set to become high street brands of the future from Horizons’ Ones to Watch survey, including Fuel Juice Bars, Dunkin’ Donuts, Abokado and Tortilla Mexican Grill.
She said: “Juice bars, Mexican and specialists such as Pieminster and Dunkin’ Donuts are growing their estates and there is still plenty of room left for growth in the coffee sector. “In terms of regional expansion the UK’s hotspots for development include Leeds, Manchester, Bristol and some of the UK’s market towns, along with London.”
