The Foodservice Industry is predicted to grow by an additional 83m visits in 2018 and 93m visits in 2019 despite pressure on wage growth and rising inflation.
Only 30% of leaders of restaurant, pub, bar and coffee shop groups are optimistic about general market prospects for the next 12 months – a drop of 17% from last year.
Dinner visits expected to drop by 5% between 2016 & 2019 – however this will be offset by an increased 17% consumer spend on delivery with breakfasts up 5.7% in 2018 and 4.8% in 2019. Lunch will remain the largest daypart with 2.2% and 1.9% growth in 2018 and 2019 respectively.
Foodservice price inflation is expected to hit 3.4% by the end of 2018, following a record peak in August 2017 of 9.3%. Though many products are expected to cost more than two years ago due to increased labour costs and specific supply challenges within the sector.
Hotels, Restaurants & Bars continue to buck a downwardtrend , recording rises – albeit modest ones – in spending whilst record falls hit other sectors.
The UK delivery market was expected to hit £7.1bn in 2017 with an annual growth of 7.6%. Delivery-focused chains such as Deliveroo are now accounting for 30% of this sector with branded restaurants and fast food chains claiming a further 12%.
Managed pub and bar companies are now opening new sites at a faster rate than casual dining groups. Restaurant groups returning to like-for-like sales growth as recent as November - up 1.2% - but are continually outperformed by pub and bar groups, which grew collective like-for-like sales by 2.8%.
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