2021
9
UK Pizza and Italian Restaurants Market Report 2021
2021-10-13T04:11:49+01:00
OX1049149
2195
143456
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Report
en_GB
“While dining in pizza/Italian restaurants has been badly affected by COVID-19, the takeaway/home delivery segment has weathered the storm much better. Much of takeaway sales' growth comes against a background…

UK Pizza and Italian Restaurants Market Report 2021

£ 2,195 (Excl.Tax)

Description

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

While dining in pizza/Italian restaurants has been badly affected by COVID-19, the takeaway and home delivery segment has weathered the storm much better. More than half (52%) of Britons ordered a pizza takeaway in the 12 months to July 2021 compared to just 23% who dined in.

The pandemic has therefore had a profound impact on pizza/ Italian restaurants operators that rely on diners eating in, resulting in some brands closing sites and using CVAs to restructure their debts. Even pizza and Italian restaurant operators that were trading strongly prior to COVID-19 were not immune to the crisis, including the Azzurri Group – owner of the ASK Italian, Zizzi and Coco Di Mama brands.

The unprecedented challenges of Brexit have provided further disruption for pizza/Italian restaurant operators, contributing towards a shortage of both staff and raw materials (goods traded between the UK and the EU now face extensive customs and regulatory checks, adding additional cost and complexity to cross-border trade). Meanwhile, a weaker Pound has seen some operators that source ingredients from outside the UK notice increases in their food input prices.

Pizza/Italian takeaways can lay a guilt trip on some people for not cooking meals from scratch. We know that many of those who are planning to order takeaway in the next 12 months are also interested in buying pizza/Italian restaurant-branded ingredients. Therefore, a cross-selling strategy which includes restaurant-branded ingredients as part of a pizza/Italian restaurant takeaway/ home delivery offering is likely to bridge the gap between people’s desire to cook from scratch and order takeaways. And most importantly, boost revenue and broaden appeal.

Read on to discover more details or take a look at all of our UK Food and Foodservice market research.

Quickly understand

  • The impact of COVID-19 on the pizza/Italian restaurant and takeaway/home delivery sectors.
  • Consumers’ intentions to use pizza/Italian restaurants in the next 12 months.
  • How much consumers are willing to pay for pizza and pasta dishes when eating in at a pizza/Italian restaurant.
  • Consumers’ interest in non-core menu items (beyond pizza and pasta), as well as interest in pizza/Italian restaurant-branded grocery items.
  • Consumers’ perceptions of key pizza and Italian restaurant brands – Domino’s, Pizza Hut, Papa John’s, PizzaExpress and Franco Manca.
  • Target market for italian restaurant.
  • Pizza restaurant market share.

Covered in this report

Brands: Domino’s, PizzaExpress, Franco Manca, Pizza Hut, Papa John’s, Prezzo, Coco di Mama, Zizzi, Frankie & Benny’s, Bella Italia, ASK Italian.

Expert analysis from a specialist in the field

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

While dining in pizza/Italian restaurants has been badly affected by COVID-19, the takeaway/home delivery segment has weathered the storm much better. Much of takeaway sales’ growth comes against a background of continuing investments in digital innovation by the big brands and marketing and promotional activities. Meanwhile brands that rely on consumers’ dining-in look to expand beyond the high street through exploring non-traditional formats and locations, including setting up outposts in pubs and holiday parks.
Trish Caddy - Research AnalystTrish Caddy
Senior Foodservice Analyst

Table of Contents

  1. Overview

      • Key issues covered in this Report
        • COVID-19: Market context
          • Economic and other assumptions
            • Products covered in this Report
            • Executive Summary

                • Impact of COVID-19 on pizza/Italian restaurants
                  • Figure 1: Short-, medium- and long-term impact of COVID-19 on pizza/Italian restaurants dine-in and takeaway/home delivery, 2020-25
                • The market
                  • Value of the takeaway pizza market to surpass pre-COVID level in 2021
                    • Figure 2: COVID-19 scenario forecasts for the pizza/Italian takeaway/home delivery market, 2016-26
                  • The value of the pizza/Italian restaurant dine-in market still expected to be 44% shy of its 2019 level in 2021
                    • Figure 3: COVID-19 scenario forecasts for the pizza/Italian dine-in market, 2016-26
                  • Companies and brands
                    • Brand awareness high across national brands
                      • Figure 4: Key metrics for selected brands, 2021
                    • Domino’s dominates the pizza/Italian restaurant market
                      • Figure 5: Selected pizza and Italian restaurants and takeaways, by outlet numbers, 2016-21
                    • The staffing shortage crisis
                      • The consumer
                        • Many are still cautious about dining out
                          • Figure 6: Impact of COVID-19 on foodservice expenditure, 2021
                        • Home delivery segment weathered the storm
                          • Figure 7: Usage of pizza/Italian restaurants, 2021
                        • More than half have used Domino’s
                          • Figure 8: Pizza/Italian brands used, 2021
                        • Two thirds have ordered directly from the restaurant
                          • Figure 9: Pizza/Italian takeaway ordering methods, 2021
                        • A third plan to eat in at pizza/Italian restaurants
                          • Figure 10: Intentions to use pizza/Italian restaurants, 2021
                        • Two thirds are willing to spend £10 or more on a large pizza
                          • Figure 11: Willingness to spend on a pizza/Italian restaurant meal, 2021
                        • Almost all are interested in dishes other than pizza and pasta
                          • Figure 12: Interest in alternative pizza/Italian menu items, 2021
                        • Two third of Britons interested in restaurant branded ingredients
                          • Figure 13: Interest in buying pizza/Italian restaurant-branded ingredients, 2021
                      • Issues and Insights

                        • Diversify to reduce supply chain risk
                          • Grocery items
                            • Non-core menu choices
                              • Premiumise menus to stay profitable
                                • Survive the cannibalism of home delivery
                                  • Dark kitchens’ order of the day
                                    • Destination restaurants
                                    • The Market – Key Takeaways

                                      • Value of the takeaway pizza market to surpass pre-COVID level in 2021
                                        • The value of the pizza/Italian restaurant dine-in market still expected to be 44% shy of its 2019 level in 2021
                                        • Market Size and Performance

                                          • Impact of COVID-19 on pizza/Italian restaurants
                                            • Figure 14: Short-, medium- and long-term impact of COVID-19 on pizza/Italian restaurants and takeaway/home delivery, 2020-25
                                          • Value of the takeaway pizza market to surpass pre-COVID level in 2021
                                              • Figure 15: UK forecast for the value of the pizza/Italian takeaway/home delivery market, at current prices, 2016-21
                                            • The value of the pizza/Italian restaurant dine-in market still expected to be 44% shy of its 2019 level in 2021
                                                • Figure 16: UK forecast for the value of the pizza/Italian dine-in market, at current prices, 2016-21
                                            • Market Forecast

                                              • Takeaway sales set to be worth £3.4 billion by 2026
                                                • Figure 17: UK forecast for the value of the UK pizza/Italian takeaway/home delivery market, at current prices, 2016-26
                                              • Dine-in sales to return to pre-pandemic value by 2026
                                                • Figure 18: UK forecast for the value of the pizza/Italian dine-in market, at current prices, 2016-26
                                              • Market drivers and assumptions
                                                • Figure 19: Key drivers affecting Mintel’s market forecast, 2020-25 (prepared on August 2021)
                                              • Forecast methodology
                                              • COVID-19 Scenario Performance

                                                • Mintel’s approach to predicting the impact of COVID-19
                                                  • Fundamental differences in how COVID-19 is affecting consumer markets
                                                    • The pizza/Italian takeaway segment is less dependent on COVID developments
                                                      • Figure 20: COVID-19 scenario forecasts for the pizza/Italian takeaway/home delivery market, 2016-26
                                                    • A £712 million sales difference between Mintel’s rapid COVID recovery and extended COVID disruption scenarios in the dine-in segment in 2026
                                                      • Figure 21: COVID-19 scenario forecasts for the pizza/Italian dine-in market, 2016-26
                                                    • COVID-19 market disruption: risks and outcomes
                                                      • Figure 22: Summary of Mintel scenario expectations and the impact on the foodservice market, 2021
                                                  • Market Drivers

                                                    • Supply chain disruption
                                                      • COVID-19
                                                        • Brexit
                                                          • The staffing shortage crisis
                                                            • Underlying climate change impacts wheat production
                                                              • Pizza/Italian restaurants’ role in helping customers de-stress
                                                                • Figure 23: COVID-19 impact on stress/wellness, by intention to use pizza/Italian restaurants, 2021
                                                              • The strength of independently-owned pizza/Italian restaurants
                                                                • Figure 24: Usage of independent pizza/Italian restaurants, by age groups, 2021
                                                            • Companies and Brands – Key Takeaways

                                                              • Domino’s dominates the pizza/Italian restaurant market
                                                                • Pizza/Italian vegan options take root
                                                                  • Domino’s ‘We Got This’
                                                                    • Brand awareness high across national brands
                                                                    • Market Share

                                                                      • Domino’s dominates the pizza/Italian restaurant market
                                                                        • Figure 25: Selected pizza and Italian restaurants and takeaways, by outlet numbers, 2016-21
                                                                      • Impact of COVID-19 on pizza/Italian restaurants
                                                                        • CVAs
                                                                          • Mergers and acquisitions
                                                                            • Location, location, location
                                                                              • Confidence in recovery
                                                                              • Launch Activity and Innovation

                                                                                • Pizza/Italian restaurants’ sustainability approach
                                                                                  • Vegan options take root
                                                                                    • Sustainable dining
                                                                                      • Extending pizza/Italian restaurant brands
                                                                                        • Grocery range
                                                                                          • Figure 26: PizzaExpress’ Cook-At-Home range, 2021
                                                                                        • Non-core menu items
                                                                                          • Advancing technological services
                                                                                            • In-car collection
                                                                                              • Group ordering
                                                                                                • Google Cloud
                                                                                                • Advertising and Marketing Activity

                                                                                                  • Domino’s ‘We Got This’
                                                                                                    • Figure 27: Advertising expenditure by selected pizza/Italian restaurants or takeaway/home delivery brands, 2018-21
                                                                                                  • The Papa John’s Trophy wins
                                                                                                    • Pizza Hut wins with esports
                                                                                                      • PizzaExpress shifts advertising priorities
                                                                                                        • Nielsen Ad Intel coverage
                                                                                                        • Brand Research

                                                                                                            • Brand map
                                                                                                              • Figure 28: Attitudes towards and usage of selected brands, 2021
                                                                                                            • Brand awareness high across national brands
                                                                                                              • Figure 29: Key metrics for selected brands, 2021
                                                                                                            • Higher income groups drive usage
                                                                                                              • Figure 30: Usage of pizza/Italian restaurant brands in the last 12 months, by socio-economic group and household income, 2021
                                                                                                            • Younger generations are core users of pizza/Italian restaurants
                                                                                                              • Figure 31: Usage of pizza/Italian restaurant brands in the last 12 months, by generation, 2021
                                                                                                            • Brand attitudes: Pizza Hut outranks the others in value
                                                                                                              • Figure 32: Attitudes, by brand, 2021
                                                                                                            • Brand personality: pizza/Italian restaurant brands are fun
                                                                                                                • Figure 33: Brand personality – macro image, 2021
                                                                                                              • Franco Manca represents the growing pizza/Italian ‘craft’ segment
                                                                                                                • Figure 34: Brand personality – micro image, 2021
                                                                                                            • The Consumer – Key Takeaways

                                                                                                              • Many are still cautious about dining out
                                                                                                                • Home delivery segment weathered the storm
                                                                                                                  • More than half have used Domino’s
                                                                                                                    • Two thirds have ordered directly from the restaurant
                                                                                                                      • A third plan to eat in at pizza/Italian restaurants
                                                                                                                        • Two thirds are willing to spend at £10 or more on a large pizza
                                                                                                                          • Almost all are interested in dishes other than pizza and pasta
                                                                                                                            • Two third of Britons interested in restaurant branded ingredients
                                                                                                                            • Impact of COVID-19 on Consumer Behaviour

                                                                                                                              • Many are still cautious about dining out
                                                                                                                                  • Figure 35: Impact of COVID-19 on foodservice expenditure, 2021
                                                                                                                                • Operators can anticipate a late summer/autumn dining boom
                                                                                                                                    • Figure 36: Trends in going out for an expensive meal, 2018-21
                                                                                                                                • Usage of Pizza and Italian Restaurants

                                                                                                                                  • Three in five used pizza/Italian restaurants
                                                                                                                                    • Figure 37: Pizza/Italian restaurant participation, 2021
                                                                                                                                  • Home delivery segment weathered the storm
                                                                                                                                    • Figure 38: Usage of pizza/Italian restaurants, 2021
                                                                                                                                  • In-person collections were hit hard
                                                                                                                                  • Pizza and Italian Brands Used

                                                                                                                                    • More than half have used Domino’s
                                                                                                                                        • Figure 39: Pizza/Italian brands used, 2021
                                                                                                                                    • Pizza and Italian Takeaway Ordering Methods

                                                                                                                                      • Two thirds have ordered directly from the restaurant
                                                                                                                                          • Figure 40: Pizza/Italian takeaway ordering methods, 2021
                                                                                                                                        • Third-party aggregators helped dine-in sector roll out delivery services
                                                                                                                                            • Figure 41: Pizza/Italian brands used, by pizza/Italian takeaway ordering methods, 2021
                                                                                                                                        • Intentions to Use Pizza and Italian Restaurants

                                                                                                                                          • Two thirds plan to use pizza/Italian restaurants
                                                                                                                                            • Figure 42: Intentions to use pizza/Italian restaurants, 2021
                                                                                                                                          • A third plan to eat in at pizza/Italian restaurants
                                                                                                                                              • Figure 43: Intentions to use pizza/Italian restaurants, 2021
                                                                                                                                          • Amount Consumers are Willing to Spend

                                                                                                                                            • Two thirds are willing to spend at £10 or more on a large pizza
                                                                                                                                                • Figure 44: Willingness to spend on a pizza/Italian restaurant meal, 2021
                                                                                                                                              • Half would cap their spending on pasta at £9.99
                                                                                                                                                • Premiumising pizza for those based in London and East of England
                                                                                                                                                    • Figure 45: Willingness to spend on a pizza/Italian restaurant meal, by locations, 2021
                                                                                                                                                  • Promoting pasta as a value dish in the north
                                                                                                                                                  • Alternative Pizza and Italian Menu Items

                                                                                                                                                    • Almost all are interested in dishes other than pizza and pasta
                                                                                                                                                        • Figure 46: Interest in alternative pizza/Italian menu items, 2021
                                                                                                                                                    • Interest In Pizza and Italian Restaurant Branded Items

                                                                                                                                                      • Two third of Britons interested in restaurant branded ingredients
                                                                                                                                                        • Figure 47: Interest in buying pizza/Italian restaurant-branded ingredients, 2021
                                                                                                                                                      • Only a fifth are interested in restaurant-branded meal kits
                                                                                                                                                          • Figure 48: Pizza Express Spicy Tomato and Chilli Pizza Dipping Sauce, August 2021
                                                                                                                                                        • Scope to sell ingredients as part of takeaway/home delivery offering
                                                                                                                                                          • Figure 49: Interest in buying pizza/Italian restaurant-branded ingredients, by intention to use pizza/Italian restaurants, 2021
                                                                                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                          • Abbreviations
                                                                                                                                                            • Consumer research methodology
                                                                                                                                                            • Appendix: Central Forecast Methodology

                                                                                                                                                                • Figure 50: Value of the pizza/Italian restaurants takeaway/home delivery market, 2016-26
                                                                                                                                                                • Figure 51: Value of the pizza/Italian restaurants dine-in market, 2016-26
                                                                                                                                                              • Market forecast and prediction intervals
                                                                                                                                                                • Figure 52: Pizza/Italian restaurants takeaway/home delivery market forecast and prediction intervals, 2021-26
                                                                                                                                                                • Figure 53: Pizza/Italian restaurants dine-in market forecast and prediction intervals, 2021-26
                                                                                                                                                              • Market drivers and assumptions
                                                                                                                                                                • Figure 54: Key drivers affecting Mintel’s market forecast, 2021-26
                                                                                                                                                              • Forecast methodology
                                                                                                                                                              • Appendix: COVID Scenario Performance Methodology and Assumptions

                                                                                                                                                                • Scenario performance
                                                                                                                                                                  • Figure 55: Pizza/Italian restaurants takeaway/home delivery scenario performance, 2016-26
                                                                                                                                                                  • Figure 56: Pizza/Italian restaurants dine-in scenario performance, 2016-26
                                                                                                                                                                • Rapid COVID recovery, central and extended COVID disruption scenarios outline
                                                                                                                                                                  • Scenario methodology

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