2022
9
UK Attitudes towards Lunch Out-of-Home Market Report 2022
2022-06-11T04:07:09+01:00
OX1104591
2195
152076
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Report
en_GB
“Lunchtime foodservice operators’ margins have been squeezed more than ever before having felt the brunt of the pandemic, Brexit, VAT returning to 20% from 1 April 2022 and now unprecedented…

UK Attitudes towards Lunch Out-of-Home Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Lunch Out-of-Home Market Report identifies consumers’ attitudes towards purchasing lunch outside of the home, the impact of the cost-of-living crisis and future innovations to encourage participation in the out-of-home lunchtime market. This report covers the food-to-go market size, market forecast, market segmentation and industry trends for the Lunch Out-of-Home market in the UK.

Current Market Landscape 

Even as more workers return to offices across the UK, Mintel’s market report identifies how consumers prefer to bring a packed lunch to eat out of home, rather than buy lunch from a food outlet or restaurant. This stems from the cost-of-living crisis, the aftermath of the pandemic and a rise in VAT that is putting pressure on consumers’ willingness and ability to purchase ready-made lunches from foodservice establishments, resulting in them favouring lower-cost alternatives.

 

Market Share and Key Industry Trends

Lunchtime food industry operators’ margins have been squeezed over the past year. The food-to-go market size is likely to face continual challenges due to high inflation and hybrid working, which will restrict the level of growth of the market. The foodservice industry will need to rely on innovation in its services and products to attract consumer attention once more.

As the cost-of-living crisis intensifies, consumers are changing their lifestyles and reprioritising how much they spend on lunch. The stay-at-home mandates during COVID-19 have encouraged people to spend time developing their food preparation and cooking skills, which has resulted in accelerated consumer interest in making lunches compared to pre-pandemic.

  • 64% of consumers would prefer to bring a packed lunch to eat out of home than buy lunch from a food outlet or restaurant.
  • 47% of at-home lunch consumers make their lunchtime meal entirely from scratch.
  • 24% of UK consumers confirm they are open to the option of buying fresh lunch items from a vending machine.
  • 84% of consumers agree that price rises would reduce their spending on everyday lunches from food outlets or restaurants.

Future Market Trends in the Lunchtime Market

As value becomes ever more important to the consumer, food industry operators will be motivated to justify their menu prices, especially if they are passing on rising food costs to customers. The future of the food-to-go market will lean on innovations comparable to smart vending machines, prepaid top-up cards, pre-ordering and checkout-free technology. Future innovations must enable people to access food and drinks conveniently and provide consumers with a greater range of lunchtime foodservices than they had before.

Read on to discover more details or take a look at all of our UK Foodservice Market Research.

Covered in this Report

Product Types: Fast-food outlets, motor services, convenience stores, grocery stores, takeaway app, coffee shop, sandwich/bakery, restaurants, pub/bar, street food markets.

Brands:  Subway, Greggs, Pret A Manger (Pret Express), McDonald’s, EG Group, Applegreen, Welcome Break, Roadchef Motor Services, Just Eat, Asda, Boparan, Sainsbury’s, Sodexo (eat>NOW), Bad Egg, Costa Coffee, Amazon (Amazon Go), Tesco (GetGo), Tim Hortons, The Green King, Nando’s, Wagamama, Uber Eats.

 

Understand Quickly

  • The impact of the cost-of-living crisis on the lunch out-of-home (foodservice) market, including consumers’ preference to eat packed lunch.
  • How the current COVID-19 recovery phase will shape lunch out of home in future, including workplace catering.
  • Lunch out-of-home participation and venues used for takeaways in the last 12 months.
  • Factors that influence consumers’ decision-making when eating/ordering lunch out of home.
  • Consumers’ attitudes towards lunch out-of-home service channels, including click-and-collect and drive-through.

Expert Analysis from a Specialist in the Field

This report, written by Trish Caddy, a leading senior analyst in the Foodservice sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Lunchtime foodservice operators’ margins have been squeezed more than ever before having felt the brunt of the pandemic, Brexit, VAT returning to 20% from 1 April 2022 and now unprecedented increases in fuel/energy and ingredients costs. They must also contend with Britons’ preference towards eating lunch at home, resulting in people spending less money on out-of-home lunches than in the past. Therefore, a strong value proposition becomes ever more important to ensure that lunchtime foodservice operators are able to justify their menu prices, especially if they are passing on rising food costs to customers.”

Trish Caddy - Research Analyst

Trish Caddy
Senior Foodservice Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for the lunch out-of-home (foodservice) market
      • Figure 1: Category outlook for lunch out of home (foodservice), 2022-27
    • The market
    • Impact of price rises on lunch out-of-home market
      • Figure 2: Impact of price rises/shortages, 2021 and 2022
    • Impact of at-home lunch participation on consumer behaviour
      • Figure 3: Participation in lunch at home, 2022
    • Companies and brands
    • Micro-markets offer effortless on-the-go experience
    • Prepaid cards offer flexibility for employers to manage staff perks
    • The consumer
    • On-premise lunch dining saw 15 percentage points increase in 2022
      • Figure 4: Annual changes in lunch out-of-home purchase methods, 2021 and 2022
    • Takeaway consumers are now spreading usage across more venues
      • Figure 5: Annual changes in lunch takeaway venues used, 2021 and 2022
    • COVID-19 in the rear-view mirror
      • Figure 6: Annual changes in lunch out-of-home purchase drivers, 2021 and 2022
    • Scope for ‘micro-market’ lunchtime food outlets in cities
      • Figure 7: Interest in lunch out-of-home innovations, 2022
    • More than half prefer grazing throughout the day
      • Figure 8: Lunch out-of-home behaviours, 2022
    • Workers want greater lunchtime convenience
      • Figure 9: Workers’ lunch out-of-home behaviours, 2022
    • Three quarters of workers bring packed lunch to work…
      • Figure 10: Workers’ packed lunch usage, 2022
    • …mostly to save money
      • Figure 11: Workers’ packed lunch motivators, 2022
  3. Issues and Insights

    • Four lunchtime habits in an inflationary environment
    • Eating lunch at home
    • Bringing packed lunches to eat away from home
    • Turning to ‘saver’ menu deals
    • ‘More’ is value for money
    • Two lunchtime offerings for reaching younger consumers
    • The convenience of automated solutions
    • The preference to graze throughout the day
    • Three strategies for workplace catering
    • Hassle-free pre-ordering options
    • Top-up prepaid cards
    • Offer sustainable packaging
  4. Market Drivers

    • Households really feeling the pinch
      • Figure 12: Impact of price rises/shortages, 2021 and 2022
    • Impact of at-home lunch participation
      • Figure 13: Participation in lunch at home, 2022
    • The conflict in Ukraine will hurt the UK economy
    • GDP reached pre-pandemic levels in November 2021…
    • …but the post-COVID-19 bounce-back will be followed by a period of slower growth
    • Employment has held up better than expected
    • Inflation is the key concern for 2022 for consumers, brands and the economy
    • Consumers’ financial wellbeing has slipped from its recent high point…
      • Figure 14: Household financial wellbeing index, 2016-22
    • …and concerns over inflation are coming to the fore
  5. Market Share

    • Greggs catching up with Subway in the sandwich/grab-and-go market
      • Figure 15: Selected lunch foodservice brands, by number of outlets, 2012-22
    • Foodservice stream accounts for 59% of EG’s gross profit in 2021
      • Figure 16: Selected motorway service operators, by number of motorway service stations, 2021 and 2022
  6. Launch Activity and Innovation

    • Foodservices lead resurgence of in-store catering in supermarkets
    • Asda to launch ‘mini’ stores with Greggs and Subway
    • Boparan casualises restaurant brands for food hall format
    • Loss-leader pricing strategy helps drive footfall
    • Micro-markets offer effortless on-the-go experience
    • Prepaid cards offer flexibility for employers to manage staff perks
  7. Annual Changes in Lunch Out-of-Home Purchase Methods

    • On-premise lunch dining saw 15 percentage points increase in 2022
      • Figure 17: Annual changes in lunch out-of-home purchase methods, 2021 and 2022
    • Majority of OOH lunchtime consumers bought from foodservices
      • Figure 18: Annual changes in foodservice vs supermarket purchase methods, 2021 and 2022
  8. Annual Changes in Takeaway Venues Used

    • Takeaway consumers are now spreading usage across more venues
      • Figure 19: Annual changes in lunch takeaway venues used, 2021 and 2022
  9. Annual Changes in Purchase Drivers

    • Pricing influences OOH lunch choices in an inflationary environment
      • Figure 20: Annual changes in lunch out-of-home purchase drivers, 2021 and 2022
    • Options beyond pricing by age groups
    • Filling food for 16-44 year olds
    • Older consumers are steered by what they know
    • COVID-19 in the rear-view mirror
  10. Interest in Lunch Out-of-Home Innovations

    • Scope for ‘micro-market’ lunchtime food outlets in cities…
      • Figure 21: Interest in lunch out-of-home innovations, 2022
    • …with demand driven by lunchtime takeaway consumers
      • Figure 22: Lunch takeaway venues used, by interest in lunch out-of-home innovations, 2022
  11. Lunch Out-of-Home Behaviours

    • More than half enjoy trying new menu items
      • Figure 23: Lunch out-of-home behaviours, 2022
    • More than half prefer grazing throughout the day
    • Packed lunches threaten OOH foodservices
      • Figure 24: Attitudes towards Lunch Out of Home – CHAID – Tree output, 2022
  12. Workers’ Lunch Behaviours

    • Almost half of workers enjoy up to a one-hour break
      • Figure 25: Length of main break at work, 2022
    • Pubs and restaurants can adapt to suit hour-long lunchbreaks
      • Figure 26: Lunch takeaway venues used, by length of main break at work, 2022
    • Workers want greater lunchtime convenience
      • Figure 27: Workers’ lunch out-of-home behaviours, 2022
    • Three quarters of workers bring packed lunch to work…
      • Figure 28: Workers’ packed lunch usage, 2022
    • …mostly to save money
      • Figure 29: Workers’ packed lunch motivators, 2022
  13. Workplace Catering

    • Two fifths of workers have access to a staff canteen
      • Figure 30: Availability of workplace canteen, 2022
      • Figure 31: Job seeking intentions, 2021
      • Figure 32: Reasons for looking for a new job, 2021
    • Scope for staff canteens to innovate
    • Meal plans offer hassle-free pre-ordering options
    • Prepaid cards allow employers to manage staff benefits
    • Staff canteen users gravitating towards sustainable packaging
      • Figure 33: Interest in lunch out-of-home innovations, by availability of workplace canteen, 2022
  14. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • CHAID analysis methodology
      • Figure 34: Attitudes towards Lunch Out of Home – CHAID – Table output, 2022

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.

Consumer

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

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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