2023
9
UK Eating Out Review Market Report 2023
2023-01-20T03:04:19+00:00
OX1154783
2195
159716
[{"name":"Foodservice","url":"https:\/\/store.mintel.com\/industries\/foodservice"}]
Report
en_GB
"The cost of living crisis spurs demand for high quality dining experiences, where premium experiences attract a higher price. For example, as consumers gain a deeper understanding of ethical food…

UK Eating Out Review Market Report 2023

£ 2,195 (Excl.Tax)

Description

The UK Eating Out Review Market Report examines consumers’ participation in eating out and ordering takeaways, the evolving perception of ‘high-quality’ food and the impact of the rising cost of living on the UK eating out market. This report covers the UK restaurant industry market size, market forecast, market segmentation and trends in the foodservice industry.  

 

What is the market size of the UK restaurant industry?

The UK eating out market value reached an estimated £78 billion in 2022. Mintel’s data forecasts that the UK eating out market value is expected to continue with this positive trajectory and is forecasted to grow 15% and reach £90bn in 2027.

 

UK Eating Out Market Landscape

Extreme pressure on household finances will restrict consumers’ ability to spend on discretionary areas, such as eating out and ordering takeaways. Some operators in the UK restaurant industry will be forced to rely on offers and deals to encourage footfall, but a decline in visiting and ordering frequency will see the UK eating out market struggle to keep pace with inflation.

Trends and UK Restaurants Industry Statistics

With consumers’ disposable incomes becoming increasingly squeezed, many are having to make decisions about which leisure activities to prioritise. Many will consider forgoing meals out in order to afford much-needed holidays.

Younger consumers generally find themselves in a worse-off financial position, so they are most likely to gravitate towards cheaper foodservice options such as burger and chicken restaurants. In the last six months, a significant 56% of 16-24-year-olds ordered cheaper dishes or items at a restaurant or food outlet than they would normally. This will put pressure on foodservice operators to offer targeted discounts or free items to retain usage, drive traffic and boost brand awareness, without having to place a heavy squeeze on margins.

UK restaurant industry statistics

  • 42% of UK adults have ordered a takeaway from a delivery-only service in the last 12 months.
  • 65% of consumers eat at restaurants or food outlets to ‘treat themselves’.
  • 39% of Brits have ordered from a set menu at a restaurant as a way to limit spend.
  • 55% of 16-24 year olds have redeemed rewards via a restaurant or food outlet’s branded mobile app in the last six months (vs 32% of all adults).

Future Innovations and Trends in the UK Eating Out Market

As the economy settles down, the UK eating out market should return to growth in real terms, as consumers prioritise experiences such as dining out with family and friends.

Mintel’s market analysis identifies that 55% of consumers eat in at restaurants or food outlets to celebrate birthdays or special occasions. Innovation is necessary to guarantee footfall of these celebratory dining experiences. Operators that introduce immersive activities, like games or themed restaurants, will offer diners a greater dining experience with a sense of occasion.

Meanwhile, technology in foodservice is expected to drive future growth in the UK eating out market, with younger consumers embracing new ways to access foodservice. This is a win-win for both consumers and operators, as time-saving solutions enhance customer experience levels, while food outlets and restaurants can maximise trade at busy times if simpler ways to access foodservice are available.

To discover more about the UK Eating Out Review Market Report 2023, read our UK Pizza and Italian Restaurants Market Report 2022, or take a look at our other Foodservice Market Research.

Quickly Understand

  • The impact of the rising cost of living on the UK eating out market.
  • How consumers’ participation in eating out and ordering takeaways has changed over recent years.
  • How consumers’ perceptions of what makes a high-quality dish compare now to before the COVID-19 pandemic.
  • Consumer participation and interest in a range of foodservice initiatives and formats.
  • Diners’ motivations for eating in at a restaurant or food outlet.

 Covered in this Report

Products: Burger and chicken, pizza takeaway, pubs, casual dining restaurants, independent restaurants, coffee shops, hotel catering, roadside catering, in-store restaurants, fast-food outlets, and street food.

Brands: Subway, Rockfish, Pizza Hut, TGI Fridays, PizzaExpress, Gregg’s, Zizzi, Asking Italian, Roadchef, Bella Italia, Costa Coffee, Patty & Bun, Tortilla, Athenian, Frankie & Benny’s, Boxpark, Pacha Group, Howdy!.

 Expert Analysis from a Specialist in the Foodservice Sector

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

The cost of living crisis spurs demand for high quality dining experiences, where premium experiences attract a higher price. For example, as consumers gain a deeper understanding of ethical food systems, operators that strike a balance of local, seasonal and ethical food choices will broaden their appeal. Meanwhile, with the leisure sector offering greater food and drink options within their concepts, some foodservice operators are ramping up their dining experiences with immersive dining to meet consumer demand.”

Trish Caddy - Research Analyst

Trish Caddy
Principal Analyst – Foodservice

Table of Contents

  1. Overview

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

    • The five-year outlook for foodservice
      • Figure 1: Category outlook, 2023-27
    • The market
    • Cost of living crisis will restrict the growth of the UK foodservice market
      • Figure 2: Forecast for the value of the UK foodservice market, at current prices, 2017-27
    • A regular takeaway is the new normal
      • Figure 3: Autumn participation in food and drink-related leisure activities in the last month, 2019-22
    • Companies and brands
    • Cost of living deals
    • Immersive dining
    • The consumer
    • Table-service dine-in participation continues to appeal
      • Figure 4: Restaurants and food outlets visited for eat-in meals, 2018-22
    • Some sectors have seen a decline in takeaway participation
      • Figure 5: Restaurants and food outlets visited for takeaway/delivery, 2018-22
    • Cost of living crisis spurs demand for premium dining experiences
      • Figure 6: Perceptions of a high quality dish, 2019-22
    • Younger consumers seek foodservices with strong value propositions
      • Figure 7: Eating out attitudes and interests, 2022
    • Treat purchases and celebratory dining experiences are valuable
      • Figure 8: Reasons for dining in at food outlets/restaurants, 2022
    • Younger consumers drive demand for nose-to-tail cooking concepts
    • Cost of living crisis spurs demand for foodservice branded supermarket ranges
    • Scope for vending experiences to broaden appeal among young working class
      • Figure 9: Eating out attitudes, 2022
  3. Issues and Insights

    • Impact of cost of living crisis on foodservice
    • Targeted discounts
    • Bundle deal strategy
    • Loss leader strategy
    • Value of foodservice
    • Treat purchases
    • Problem solving
    • Re-fuelling
    • Straight to you
    • Future of foodservice
    • Sustainability
    • Crossing over to retail
    • Advanced technologies
  4. Market Size and Performance

    • Value of the UK foodservice market exceeded its 2019 level in 2022
      • Figure 10: UK forecast for the value of the foodservice market, at current prices, 2017-22
  5. Market Forecast

    • The five-year outlook for the foodservice market
      • Figure 11: Category outlook, 2023-27
    • Cost of living crisis will restrict the growth of the UK foodservice market
      • Figure 12: Forecast for the value of the UK foodservice market, at current prices, 2017-27
    • Learnings from the last income squeeze
      • Figure 13: UK foodservice market size and forecast, 2008-13
    • Forecast methodology
  6. Market Drivers

    • A regular takeaway is the new normal
      • Figure 14: Autumn participation in food and drink-related leisure activities in the last month, 2019-22
    • Leisure sector threatens foodservice market with value propositions
      • Figure 15: British household expenditure, 2019-22
    • Impact of staff shortage on the foodservice market
    • Shorter trading
    • Robotic systems
    • Inflation is the key concern for consumers and brands…
    • …and despite Government support, energy prices are still a major concern
    • Rising interest rates mean that the pressure will move up to middle- and higher-income households
    • High inflation and rising interest rates will compound the impact of the slowing recovery
    • Consumer spending power will be curbed
    • Unemployment is at a near-50 year low
    • Consumers’ financial wellbeing has fallen from the highs of 2021…
      • Figure 16: Household financial wellbeing index, 2016-22
    • …and most people are feeling the effects of price rises
  7. Launch Activity and Innovation

    • Alternative distribution channels
    • Travel hubs
    • Food halls
    • Delivery-only
    • Barge conversions
    • Cost of living deals
    • Percentage off discounts
    • Meal deals
    • Quiet hour discount
    • Kids eat free
    • Gift card
    • Free meal
    • Immersive dining
  8. Eating Out Participation

    • Britons continue to dine out, while a regular takeaway is the new normal
      • Figure 17: Overall eating out usage, 2017-22
    • Dining in pubs and restaurants continues to appeal
      • Figure 18: Restaurants and food outlets visited for eat-in meals, 2018-22
    • Some sectors have seen a decline in takeaway participation
      • Figure 19: Restaurants and food outlets visited for takeaway/delivery, 2018-22
    • Slightly wider repertoires as younger Britons access more food outlets
      • Figure 20: Annual changes in repertoire of food outlets^ visited, 2020-22
    • Scope to encourage older Britons to use more restaurants
      • Figure 21: Annual changes in repertoire of restaurants^ visited, 2020-22
  9. Perceptions of Quality

    • Consumers desire fresh and tasty food experiences
      • Figure 22: Perceptions of a high quality dish, 2019-22
    • Natural ingredients good compromise for authenticity
    • Balance of local, seasonal and ethical food choices
    • Balance of healthy options and treat purchases
  10. Eating Out Behaviours and Interests

    • Younger consumers seek foodservices with strong value propositions
      • Figure 23: Eating out behaviours and interests, 2022
    • Cost-conscious consumers drive demand for discounted better choices
    • Strong consumer participation and interest in dark kitchens
    • Under-35s most interested in foodservice subscriptions
  11. Reasons for Dining In

    • Treat purchases and celebratory dining experiences are valuable
      • Figure 24: Reasons for dining in at food outlets/restaurants, 2022
    • Two in seven re-fuel in a restaurant or food outlet while shopping
    • For two fifths of diners, eating out offers time-saving hacks
    • One in five takes advantage of a dining out special offer/gift card
  12. Eating Out Attitudes

    • Younger consumers drive demand for nose-to-tail cooking concepts
      • Figure 25: Eating out attitudes, 2022
    • Cost of living crisis spurs demand for foodservice branded supermarket ranges
      • Figure 26: Eating out attitudes, 2022
    • Scope for vending experiences to broaden appeal among young working class
      • Figure 27: Eating out attitudes – CHAID – Tree output, 2022
  13. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • CHAID analysis Methodology
      • Figure 28: Eating Out Review – CHAID – Table output, 2022
  14. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 29: Value of the UK foodservice market, 2017-27
      • Figure 30: UK foodservice market forecast and prediction intervals, 2022-27
    • Market drivers and assumptions
    • Forecast 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.

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.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch