2020
9
UK Pizza and Italian Restaurants Market Report 2020
2020-11-11T03:02:44+00:00
OX989924
2195
127258
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Report
en_GB
“The entrepreneurial spirit of pizza and Italian restaurants/takeaways is strong and some have actively sought out change and embraced innovation amid the pandemic. The first step is to reach out…

UK Pizza and Italian Restaurants Market Report 2020

£ 2,195 (Excl.Tax)

Description

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Pizza and Italian Restaurants: Inc Impact of COVID-19 – UK market including the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Even before the new lockdown in England, Mintel’s Global COVID-19 Tracker showed that 44% of Britons were planning to dine out less over the month following 24 September – 1 October, rising to 50% of those who described their financial situation as “tight”. Some pizza/Italian operators are likely to exit the dine-in sector completely as they explore ways to expand their catchment areas and transform into delivery-only businesses without the overheads of running traditional restaurant sites.

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.

The entrepreneurial spirit of pizza and Italian restaurants/takeaways is strong and some have actively sought out change and embraced innovation amid the pandemic. The first step is to reach out to consumers who need at-home and contactless dining options, and some of these concepts are worth continuing as a means to top up earnings and cater to changing consumer needs
Trish Caddy
Senior Foodservice Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Products covered in this Report
    • COVID-19: Market context
    • Economic and other assumptions
  2. Executive Summary

    • Impact of COVID-19 on pizza/Italian restaurants and takeaway market
      • Figure 1: Expected impact of COVID-19 on pizza/Italian restaurants and takeaway/home delivery, in short, medium and long term, 20 October 2020
    • The market
    • Pizza and Italian market plummets in 2020
      • Figure 2: Total UK pizza and Italian restaurants market, value sales and forecast, 2015-25 (prepared on 5 November 2020)
    • Takeaway sales expected to return to pre-pandemic levels as early as 2021
    • Companies and brands
    • Resurgence of price cuts
    • The consumer
    • Consumer confidence at a standstill
      • Figure 3: Comfort level of going out to eat, 23 July 2020 – 1 October 2020
    • Majority of consumers have ordered a pizza/Italian takeaway since the outbreak began…
      • Figure 4: Participation of ordering pizza/Italian takeaway/home delivery, July 2020
    • … But for many it’s an occasional treat
      • Figure 5: Frequency of ordering pizza/Italian takeaway/home delivery, July 2020
    • Pizza and Italian food appeals to young urbanites
      • Figure 6: COVID-19’s impact on frequency of ordering pizza/Italian takeaway/home delivery, July 2020
    • The rise of snacking occasions
      • Figure 7: Types of items ordered for pizza/Italian takeaway/home delivery, July 2020
    • Brands that maintain familiarity win in pandemic times
      • Figure 8: Venues visited for ordering takeaway/home delivery, July 2020
    • Takeaway/home delivery consumer groups are also willing to dine-out
      • Figure 9: COVID-19’s impact on likelihood of visiting pizza/Italian restaurants, July 2020
    • Consumers satisfied with safety measures
      • Figure 10: Key drivers of satisfaction in ordering takeaway/home delivery from pizza/Italian venues, July 2020
    • Craft pizza and pasta have stretch
      • Figure 11: Interest in pizza/Italian menu trends, July 2020
    • Pizza and the “treat yourself” consumer
      • Figure 12: Attitudes towards pizza/Italian restaurants/takeaways, July 2020
    • Pizza and Italian restaurant/takeaway consumer groups
      • Figure 13: Pizza/Italian restaurants/takeaways consumer segmentation – cluster analysis, July 2020
  3. Issues and Insights

    • Review pricing strategies
    • Get ahead of healthy offerings
    • Improve diet-specific choices
  4. The Market – Key Takeaways

    • Opportunity to explore new distribution channels
    • Takeaway sales will lead recovery
    • “Discount mindset” likely to persist
  5. Market Size, Segmentation and Forecast

    • Impact of COVID-19 on pizza/Italian restaurants and takeaway market
      • Figure 14: Expected impact of COVID-19 on pizza/Italian restaurants and takeaway/home delivery, in short, medium and long term, 20 October 2020
    • Pizza/Italian restaurants/takeaways market plummets in 2020…
      • Figure 15: Total UK pizza and Italian restaurants market, value sales and forecast, 2015-25 (prepared on 5 November 2020)
    • … but recovery begins in 2021
      • Figure 16: Total UK pizza and Italian restaurants market, value sales and forecast, 2015-25 (prepared on 5 November 2020)
    • Takeaway falls slightly in 2020…
      • Figure 17: UK pizza/Italian takeaway/home delivery market, value sales and forecast, 2015-25 (prepared on 20 October 2020)
    • … but returns to pre-pandemic levels by as early as 2021
      • Figure 18: UK pizza/Italian takeaway/home delivery market, value sales and forecast, 2015-25 (prepared on 5 November 2020)
    • Dine-in sector will be slow to recover
      • Figure 19: UK pizza/Italian dine-in market, value sales and forecast, 2015-25 (prepared on 5 November 2020)
      • Figure 20: UK pizza/Italian dine-in market, value sales and forecast, 2015-25 (prepared on 5 November 2020)
    • Market drivers and assumptions
      • Figure 21: Key drivers affecting Mintel’s market forecast, 2020-24 (prepared July 2020)
    • Lessons learnt from the last recession
      • Figure 22: Value sales of the total UK pizza and pasta restaurant/takeaway market, 2008-13
    • Forecast methodology
    • COVID-19: Market context
  6. Market Drivers

    • VAT cut could stimulate the eating out market…
    • … severe restrictions put the brakes on recovery
    • Pizza/Italian operators will need to respond to Government’s plan to tackle obesity
    • “Discount mindset” likely to persist
      • Figure 23: Trends in consumer sentiment for the coming year, January-September 2020
  7. Companies and Brands – Key Takeaways

    • Zizzi launches pizza/Italian grocery range
    • Resurgence of discounts
    • Domino’s is still the ‘Official Food of Everything’
    • PizzaExpress is the place to visit for a special treat
  8. Launch Activity and Innovation

    • Bringing pizza/Italian to where customers are today
    • Grocery range
      • Figure 24: Zizzi Restaurants’ frozen pizzas
    • Nationwide delivery
      • Figure 25: Pizza Pilgrims’ ‘Pizza in the Post’ meal kit
    • Delivery-only brands
    • Pop-ups in neighbourhoods
    • Reaching consumers who are tightening spending
    • Passing on VAT cut to customers
    • Vouchers and discount codes
    • Themed promotions
    • Touch-free physical operations
    • Accommodating to diet-specific needs
    • Gluten-free
    • Vegan options
      • Figure 26: Pumpkin base pizzas, by Firezza, March 2020
  9. Advertising and Marketing Activity

    • Pizza and Italian brands cut traditional ad spend again in 2019
      • Figure 27: Advertising expenditure by selected pizza/Italian restaurants or takeaway/home delivery brands, 2018-20
    • Domino’s is still the ‘Official Food of Everything’
    • Papa John’s UK pulls away from global brand
    • Nielsen Ad Intel coverage
  10. Brand Research

    • Brand map
      • Figure 28: Attitudes towards and usage of selected brands, September 2020
    • Key brand metrics
      • Figure 29: Key metrics for selected brands, September 2020
    • Brand attitudes: Domino’s tops all key performance attributes
      • Figure 30: Attitudes, by brand, September 2020
    • Brand personality: Zizzi and PizzaExpress win on exclusivity and ethical attributes
      • Figure 31: Brand personality – macro image, September 2020
    • Papa John’s needs rebranding to escape from lacklustre brand identity
      • Figure 32: Brand personality – micro image, September 2020
    • Brand analysis
    • Domino’s is most fun and accessible
      • Figure 33: User profile of Domino’s, September 2020
    • 17% of Zizzi’s diners visit all the time
      • Figure 34: User profile of Zizzi, September 2020
    • Papa John’s popular amongst those who are financially struggling
      • Figure 35: User profile of Papa John’s, September 2020
    • Pizza Hut Delivery needs to differentiate itself from its competitors
      • Figure 36: User profile of Pizza Hut Delivery, September 2020
    • PizzaExpress is the place to visit for a special treat
      • Figure 37: User profile of PizzaExpress, September 2020
  11. The Consumer – Key Takeaways

    • Post-COVID-19: three Trend Drivers of growth
    • Wellbeing
    • Value
    • Experiences
    • Craft pizza and pasta have stretch
    • Pizza/Italian restaurant/takeaways consumer groups
  12. Impact of COVID-19 on Consumer Behaviour

    • Consumer confidence at a standstill
      • Figure 38: Comfort level of going out to eat, 23 July 2020 – 1 October 2020
    • “Wendy Houses” for winter
      • Figure 39: Proportion of consumers who feel uncomfortable going to a restaurant/bar indoors, by age groups, 24 September – 1 October 2020
    • Continue to deliver
      • Figure 40: Spending intent over the next month, 23 July – 1 October 2020
    • Unwillingness to dine out
      • Figure 41: Spending intent over the next month, 23 July – 1 October 2020
  13. Usage of Pizza/Italian Takeaway and Home Delivery

      • Figure 42: Participation of ordering pizza/Italian takeaway/home delivery, July 2020
  14. Frequency of Takeaway/Home Delivery

    • Pizza is often an occasional treat
      • Figure 43: Frequency of ordering pizza/Italian takeaway/home delivery, July 2020
    • Important to keep core customers
  15. COVID-19’s Impact on Takeaway/Home Delivery Frequency

    • Pizza and Italian food appeals to young urbanites
      • Figure 44: COVID-19’s impact on frequency of ordering pizza/Italian takeaway/home delivery, July 2020
    • Super users
    • How to insulate the category from cut-backs
      • Figure 45: Key drivers of satisfaction in ordering takeaway/home delivery from pizza/Italian venues, by COVID-19’s impact on frequency of ordering pizza/Italian takeaway/home delivery, July 2020
    • Menu price adjustments
    • Healthy offerings
    • Diet-specific
  16. Types of Items Ordered

    • Quick and easy pasta spirals down
      • Figure 46: Types of items ordered for pizza/Italian takeaway/home delivery, July 2020
    • The rise of snacking occasions
    • Frequent users help drive menu trends
      • Figure 47: Types of items ordered for pizza/Italian takeaway/home delivery, by COVID-19’s impact on frequency of ordering pizza/Italian takeaway/home delivery, July 2020
  17. Venues Visited for Takeaway/Home Delivery

    • Brands that maintain familiarity win in pandemic times
      • Figure 48: Venues visited for ordering pizza/Italian takeaway/home delivery, July 2020
  18. COVID-19’s Impact on Dine-In Venues

    • Older consumers are most loyal
      • Figure 49: Repertoire of venues visited for ordering pizza/Italian takeaway/home delivery, July 2020
    • Takeaway/home delivery consumer groups are also willing to dine-out
      • Figure 50: COVID-19’s impact on likelihood of visiting pizza/Italian restaurants, July 2020
    • Pizza/Italian restaurants excel at retaining satisfied consumers
      • Figure 51: Key drivers of satisfaction in ordering takeaway/home delivery from pizza/Italian venues, by COVID-19’s impact on likelihood of visiting pizza/Italian restaurants, July 2020
    • Three strategies to overcome consumers’ intention not to visit
    • Improve diet-specific choices
      • Figure 52: Interest in pizza/Italian menu trends, by COVID-19’s impact on likelihood of visiting pizza/Italian restaurants, July 2020
    • Review pricing strategies
      • Figure 53: Key drivers of satisfaction in ordering takeaway/home delivery from pizza/Italian venues, by COVID-19’s impact on likelihood of visiting pizza/Italian restaurants, July 2020
    • Get ahead of healthy offerings
      • Figure 54: Key drivers of satisfaction in ordering takeaway/home delivery from pizza/Italian venues, by COVID-19’s impact on likelihood of visiting pizza/Italian restaurants, July 2020
  19. Key Drivers of Satisfaction

    • Consumers satisfied with safety measures 
    • Vast majority of consumers happy with their pizza delivery experience
      • Figure 55: Key drivers of satisfaction in ordering takeaway/home delivery from pizza/Italian venues, July 2020
    • Promote and prioritise snacks – key driver analysis
      • Figure 56: Key drivers of overall satisfaction with takeaway/home delivery from pizza/Italian venues, July 2020
    • Low-cost and healthy melds perfectly together – key driver analysis
      • Figure 57: Overall satisfaction with takeaway/home delivery from pizza/Italian venues, – key driver output, July 2020
  20. Interest in Menu Trends

    • Calzone culture in the North
      • Figure 58: Interest in pizza/Italian menu trends, July 2020
    • Craft pizza and pasta have stretch
    • Encroaching on retail pizza market
    • Sensory pizza/Italian experiences
    • City dwellers seek healthful choices
      • Figure 59: Examples of frozen pizzas by FMCG brands, 2019-20
  21. Attitudes towards Pizza/Italian Restaurants/Takeaways

    • Pizza and the “treat yourself” consumer
      • Figure 60: Attitudes towards pizza/Italian restaurants/takeaways, July 2020
    • Future of hygienic experiences
    • Re-imagining experience
    • Re-defining value
    • Consumers understand value of supporting local …
    • … but also want a quality meal at an accessible price
      • Figure 61: Pizza and Italian restaurants – CHAID – Tree output, July 2020
  22. Pizza/Italian Restaurants/Takeaways Consumer Segmentation

    • COVID-19 pizza/Italian restaurant/takeaways consumer groups
      • Figure 62: Pizza/Italian restaurants/takeaways consumer segmentation – cluster analysis, July 2020
    • Typical characteristics of each group
    • Responsible consumers
    • Futurists
    • Connoisseurs
  23. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • CHAID analysis methodology
      • Figure 63: Pizza and Italian restaurants – CHAID – Table output, July 2020
    • Key driver analysis methodology
    • Interpretation of results
      • Figure 64: Overall satisfaction with takeaway/home delivery from pizza/Italian venues – key driver output, July 2020
      • Figure 65: Satisfaction with takeaway/home delivery from pizza/Italian venues, July 2020
    • Cluster analysis group definitions
    • Premiumisation
    • Basic needs
    • Future experiences

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.

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Data

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