2020
9
UK Eating Out Review Market Report 2020
2021-01-15T03:03:09+00:00
OX989912
2195
132214
[{"name":"Foodservice","url":"https:\/\/store.mintel.com\/industries\/foodservice"}]
Report
en_GB
“For years, pubs and coffee shops have been vying with one another in ruling the high street, and with more consumers staying at home since the start of the pandemic,…

UK Eating Out Review Market Report 2020

£ 2,195 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the UK Eating Out market, including the behaviours, preferences and habits of the consumer.

The UK eating out foodservice market was massively hit in 2020, with lockdowns throughout the year enforcing long periods of closure and extremely restricted trade. The foodservice industry saw an estimated 58% drop in value during 2020, falling from £76.8 billion in 2019 to £32.4 billion in 2020.

While many major foodservice venues did not offer takeaway or delivery during the first pandemic, there has been an increased shift towards online infrastructure in the later half of 2020. The Eat Out To Help Out scheme in the summer also provided the market with a temporary boost, with 46% of all adults taking advantage of the discounts.

However, the November 2020 and January 2021 lockdowns have caused yet another decline in trade, with the industry not expected to reach 2019 levels until 2024. As lockdowns lift, the demand for out-of-home dining experiences will help boost recovery, but the continued uncertainty about indoor dining will mean many venues will have to rely on heated outdoor seating areas.

Read on to discover more details or take a look at all of our UK Food and Foodservice market research.

Quickly understand

  • The impact of COVID-19 on the foodservice market.
  • Consumers’ participation in eating out and how this has been impacted by the pandemic.
  • Ways that brands can adapt their foodservice business to reach more consumers who are staying at home.
  • The impact of COVID-19 on consumers’ eating out decision making process, with a focus on promotional activities.
  • Consumers’ perceptions of foodservice venues.

Covered in this report

Venues: Burger and chicken quick service, pizza takeaways, pubs, branded/managed pubs, tenanted/leased pubs, casual dining restaurants, independent restaurants, coffee shops, hotel catering, roadside catering, in-store restaurants, food-to-go specialists, fast-food outlets, street food/food courts.

Brands: PizzaExpress, Wagamama, Beefeater, JD Wetherspoon, Papa John’s, Domino’s, McDonald’s, KFC, Pret A Manger, Subway, Greggs, Euro Garages UK, Costa, Starbucks, Deliveroo, Patisserie Valerie, Saindbury’s, Greene King, Just Eat, P!ckers, McCain, Côte Restaurants, Dishoom, Hall & Woodhouse, Soylent.

Expert analysis from a specialist in the field

Written by Trish Caddy, a leading analyst in the Foodservice sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

For years, pubs and coffee shops have been vying with one another in ruling the high street, and with more consumers staying at home since the start of the pandemic, a fundamental human need for community unlocks the opportunity for both to respond and give consumers a sense of belonging.

Trish Caddy
Senior Foodservice Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
    • COVID-19: Market context
    • Impact of the January 2021 lockdown and the vaccination rollout
    • Economic and other assumptions
  2. Executive Summary

    • Impact of COVID-19 on foodservice
      • Figure 1: Expected impact of COVID-19 on foodservice, in short, medium and long term, 6 January 2021
    • The market
    • Foodservice market dives in 2020
      • Figure 2: UK central forecast value sales for the foodservice market, at current prices, 2015-25
    • Recovery will start in 2021
    • Brexit’s impact on employment and use of British produce
    • Companies and brands
    • COVID-19 has spurred category-blurring innovations
    • The consumer
    • Eating out becomes less of a priority but underlying demand remains strong
      • Figure 3: Trends in what extra money is spent on, July 2017 – October 2020
    • The enduring appeal of pub restaurants
      • Figure 4: Restaurants and food outlets visited for eat-in meals, 2017-20
    • QSR takeaway venues the crutch in pandemic times
      • Figure 5: Restaurants and food outlets visited for takeaway/delivery, 2017-20
    • The power of ‘free’
      • Figure 6: Types of promotions, September 2020
    • Consumers getting used to eating outdoors
      • Figure 7: Eating out behaviours, September 2020
    • The strength of pubs and coffee shops in communities
      • Figure 8: Perceptions of foodservice venues – Correspondence Analysis, September 2020
  3. Issues and Insights

    • Community spaces: pub and coffee shops
    • Reaching consumers who are staying at home
    • The recession’s impact on foodservice
  4. The Market – Key Takeaways

    • Foodservice plummets in 2020 due to COVID-19
    • Recovery stems from restructuring and resilience
    • VAT cut helps to keep operators afloat
    • Opportunities to cater to remote workers
    • Brexit’s impact on foodservice recruitment
    • Brexit’s impact on British producers and grocers
  5. Market Size and Forecast

    • Impact of COVID-19 on foodservice
      • Figure 9: Expected impact of COVID-19 on foodservice, in short, medium and long term, 6 January 2021
    • Foodservice plummets in 2020…
      • Figure 10: Forecasted value of the UK foodservice market, at current prices, 2015-25
    • …but recovery will start in mid-2021
      • Figure 11: UK central forecast value sales for the foodservice market, at current prices, 2015-25
    • Market drivers and assumptions
      • Figure 12: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 30 November 2020)
    • Lessons learnt from the last recession
      • Figure 13: UK eating out market size and forecast, 2008-13
    • Forecast methodology
    • COVID-19: Market context
  6. Market Drivers

    • VAT cut helps to keep operators afloat
    • National Living Wage to rise with inflation
    • Pubs in upper tiers must serve substantial meals
    • The implications of relaxed takeaway regulations
    • Impact of obesity strategy on promotion
    • Opportunities to cater to remote workers
    • Impact of Brexit on foodservice
    • Recruitment
      • Figure 14: Occupation, by employment status, July 2018-June 2020
    • Menu prices
    • Supply chains
      • Figure 15: Food attitudes, February 2019 – September 2020
  7. Companies and Brands – Key Takeaways

    • COVID-19 has forever changed foodservice
    • Dark kitchens help operators expand food delivery
    • Outdoor dining provides a lifeline for restaurants
    • Crossing over to retail expands accessibility
  8. Launch Activity and Innovation

    • COVID-19 has forever changed the foodservice industry
    • Home delivery
      • Figure 16: McCain Foodservice’s Next Level Delivery Ranges
    • Dark kitchens
    • Drive-thrus
    • Outdoor dining
      • Figure 17: Outdoor dining in London’s Chinatown, August 2020
    • Touch-free
    • Contact tracing
    • Social media
    • New occasions
    • Substantial meals
    • Retail
      • Figure 18: Example of restaurant-branded ready-to-heat meals, as seen in Singapore
  9. The Consumer – Key Takeaways

    • Eating out becomes less of a priority…
    • …but underlying demand remains strong
    • Takeaway comes to the fore…
    • …fuelled by QSRs offering takeaway, delivery and drive-thrus
    • Britons warm up to outdoor dining
    • Community spaces: pub and coffee shops
  10. Impact of COVID-19 on Consumer Behaviour

    • Spending and saving during COVID-19
      • Figure 19: Trends in what extra money is spent on, July 2017 – October 2020
    • Britons warm up to outdoor dining
      • Figure 20: Comfort level going out to eat, 25 June – 19 November 2020
    • Britons access food through delivery
      • Figure 21: Takeaways/home delivery spending expectations over the next month, 16 April – 19 November 2020
  11. Annual Changes in Eating Out Participation

    • COVID-19 fuels Britons appetite for takeaways
      • Figure 22: Overall eating out usage, 2017-20
    • The enduring appeal of pub restaurants
      • Figure 23: Restaurants and food outlets visited for eat-in meals, 2017-20
    • QSR takeaway venues the crutch in pandemic times
      • Figure 24: Restaurants and food outlets visited for takeaway/delivery, 2017-20
  12. Usage of Food Outlets

    • COVID-19 fuels Britons appetite for fast food takeaways
      • Figure 25: Annual changes in food outlets visited, September 2019 – September 2020
    • Cafés and coffee shops the most popular eat-in outlets
      • Figure 26: food outlets visited for eat-in occasions, September 2020
    • Fish and chips and kebab takeaways fuel Britons
      • Figure 27: food outlets visited for takeaway occasions, September 2020
    • Promiscuous consumers fuel food outlet visitations
      • Figure 28: Repertoire of food outlets visited for eat in or takeaway, September 2020
  13. Usage of Restaurants

    • Bumper year for restaurant takeaways amid COVID-19
      • Figure 29: Annual changes in restaurants visited, September 2019 – September 2020
    • Eating in pub restaurants is part of British lives
      • Figure 30: Restaurants visited for eat-in occasions, September 2020
    • Chinese and curry houses backbone of the restaurant takeaway segment
      • Figure 31: Restaurants visited for takeaway occasions, September 2020
    • Loyalty is hard-earned in the age of the promiscuous consumer
      • Figure 32: Repertoire of restaurants visited for eat in or takeaway, September 2020
  14. Most Popular Types of Promotions

    • The power of ‘free’
      • Figure 33: Types of promotions, September 2020
    • Older generations require traditional discounts
    • Younger generations want deals, not discounts
    • The foodservice business of doing good
    • Anticipation keeps younger consumers coming back
  15. Eating Out Behaviours

    • COVID-19 has changed the way consumers eat out
    • Deposits and tickets to deal with no-shows
      • Figure 34: Eating out behaviours, September 2020
    • Building trust with COVID-19 communications
    • Consumers getting used to eating outdoors
    • The value of customer data
      • Figure 35: Eating Out Review – CHAID – Tree output, September 2020
    • The ‘demonisation’ of HFSS’ impact on eating out
      • Figure 36: Healthy food factors, February 2019 – September 2020
    • The impact of consumers’ food attitudes on eating out
    • Taking food safety for granted
      • Figure 37: Food attitudes, April 2016 – September 2020
    • Embracing meat-free concepts
    • Exploring healthier alternatives
      • Figure 38: Example of a fortified meal replacement drink, by Soylent
    • Matching drinks with food
      • Figure 39: An example of food and drink pairing, by Wagamama
  16. Perceptions of Venues

    • The strength of pubs and coffee shops in communities
      • Figure 40: Perceptions of foodservice venues – Correspondence Analysis, September 2020
    • The negatives of fast food outlets
      • Figure 41: Perceptions of foodservice venues – Correspondence Analysis, September 2020
    • Healthy perception strongest for sandwich shops
    • Casual dining restaurants in a weak position
  17. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • CHAID Methodology
      • Figure 42: Eating Out Review – CHAID – Table output, September 2020
    • Correspondence analysis methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

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Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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