According to Lumina Intelligence, the UK restaurant market reached a value of £18.6bn in 2023, spearheaded by premium branded establishments and menu price inflation.
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With the festive period upon us, Chris Losh asks how restaurants might fashion a silk purse out of a pig of a trading climate.
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The latest Lumina research has revealed that consumers are opting for affordable drink-only occasions, with pubs and bars seeing the most notable share growth year-on-year, up 1.3% in Q3.
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In its latest research project, Lumina Intelligence, a leader in food and drinks insights, has found that consumers remain cautious about discretionary spending in the on-trade.
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Encouraging new data has shown that menus are re-expanding again following a period of contraction and rationalisation during the worst months of Covid.
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It seems no matter where the cost increase comes from – whether it be energy bills, business rates or fuel increases – the consumer will always pay the ultimate price.
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As inflation takes hold of consumers and businesses alike, the hospitality industry remains in a deadlock, with businesses planning for more challenging times ahead.
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According to the new Lumina Intelligence Eating Out Market Report, the UK on-trade is set to value £95.2 billion in 2022, +4% versus its 2019 value, meaning that inflation is outpacing market growth.
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According to the latest data from Lumina Intelligence, consumer spending in the on-trade has declined by -9%, in the 12 weeks ending 20/03/2022.
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Over the last 24 months, food and drinks deliveries became one of the only routes to market for operators across the UK, which continues to grow despite coronavirus restrictions easing.
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A third (34%) of consumers either have or are considering purchasing food and drink for Christmas before the end of October, new research has revealed.
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Dine-in occasions are on the rise as consumers return in-person to restaurants – a shift in consumption patterns which has resulted in greater buy-in for drinks.
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The total eating and drinking out market is expected to see 44.7% YOY growth in 2022, the equivalent value of almost £92bn and surpassing its 2019 value growth as pent up demand is set to give the sector a boost in its recovery from the pandemic.
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