Data from Lumina Intelligence shows that, following the lifting of restrictions on dine in occasions, more than two thirds of purchases within hospitality are now ordered and consumed on premise.
Lumina’s latest consumer insight update goes on to highlight some of the key differences between branded and independent restaurants, such as a greater proportion of consumers eating in in independent restaurants, which is helping to drive a greater average spend.
In addition, alcoholic drinks are more likely to purchased in independent restaurants compared to branded restaurants. However, in both types of restaurants, soft drinks are the top choice of beverage.
Independent restaurants have seen a steady increase in channel share of occasions, as consumers opt to support local businesses and get together following the easing of restrictions. In the 12 weeks to 11 July, independent restaurants saw growth in share across the 12-week period, peaking at 8%. Part of this behaviour may be linked to changes in work patterns, as well as the school holidays.
Independent restaurants greater share of dine in occasions could be an influence in terms of average spend per head, with independents attracting spend of £20.60 per visit, compared to £18 for branded restaurants.
Lumina’s data shows that independent restaurants achieve higher than average customer satisfaction scores, with scores of 78% for freshness and food quality and taste. By contrast, branded restaurants underperform compared to the market average.
Branded restaurants remain more reliant on delivery and click and collect than independents. Collectively, these two order channels, represent more than half of purchases made in branded restaurants during the 12 weeks to 11 July.
Pizza Hut remains the most visited restaurant brand. 12% of branded restaurant occasions were served by Pizza Hut, driven by its established delivery offering. Nando’s and Wagamama are the next most visited brands by share, due to the vast number of outlets across the UK, as well as appealing to more health conscious shoppers with a variety of healthier options to traditional fast food choices.
Younger and London-based consumers are more likely to visit branded restaurants according to Lumina’s data. To appeal to younger consumers, restaurants should build on digital strategies including order and pay apps and offering digital promotions.
Additionally, a third of branded restaurant occasions are made by flexitarian consumers, highlighting the importance of availability for different dietary needs on restaurant menus.
For more information about Lumina Intelligence’s report click here
Precis
INSIGHT
Lumina: dine-in represents more than two thirds of reopening sales
Data from Lumina Intelligence shows that, following the lifting of restrictions on dine in occasions, more than two thirds of purchases within hospitality are now ordered and consumed on premise. Lumina’s latest consumer insight update goes on to highlight some of the key differences between branded and independent restaurants, such as a greater proportion of consumers eating in in independent restaurants, which is helping to drive a greater average spend.
