2022
9
UK Travel Hub Foodservice Market Report 2022
2022-07-12T04:08:52+01:00
OX1103019
2195
152880
[{"name":"Foodservice","url":"https:\/\/store.mintel.com\/industries\/foodservice"}]
Report
en_GB
“Having endured an extremely challenging couple of years, UK travel hubs must now contend with the cost-of-living crisis. The threat of commuters seeking cheaper alternatives is driving travel hub foodservices…

UK Travel Hub Foodservice Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Travel Hub Foodservice Market Report identifies consumers’ attitudes towards travel hub foodservice, factors that influence consumers’ decision-making when visiting travel hub foodservices, and the impact of the cost-of-living crisis on the travel hub foodservice market. This report covers the travel hub foodservice market size, market forecast, market segmentation and industry trends for the UK travel hub foodservice market.

 

Current Market Landscape 

Significant challenges for the travel hub market are the impact of the conflict in Ukraine on travel costs and the cost-of-living crisis. These challenges are creating financial strain for many consumers, influencing their decisions to avoid buying food and drink from food outlets or restaurants at travel hubs due to the high prices and would seek out a cheaper alternative instead.

The travel hub foodservice market is also battling with a drop in overall usage of motorway, airport and roadside travel hubs, largely due to increased working from home, as well as the prolonged travel disruption.

 

Market Share and Key Industry Trends

The threat posed by commuters seeking out cheaper alternatives (such as supermarket meal deals or food made at home) is driving UK foodservice market operators to play on price. For example, some fast food operators have launched new value or saver menus to encourage visits from those on a tighter budget.

Over half of UK consumers would be interested in buying food and drink from a checkout-free food outlets at travel hubs. As well as helping operators manage staff shortages, using advanced vending machines and checkout-free technology at travel hubs will help increase accessibility to foodservice.

  • 66% of UK consumers have bought a freshly made hot drink from at a travel hub in the last 12 months.
  • 55% of UK travellers agree that quick service influences their decision over which food outlet/restaurant they choose over another at travel hubs.
  • 82% of Travel Hub visitors agree that high prices make them avoid purchasing food/drink.
  • 55% of UK travellers agree that they would be interested in purchasing in buying food/drink from a checkout-free food outlet/restaurant.

 

Future Trends in the UK Travel Hub Foodservice

There is an opening to expand the travel hub foodservice market size by unlocking an opportunity for operators to increase dwell time by offering an option for hybrid or electric car users to charge their vehicles. Given that it can take up to 35 minutes for drivers to top up charging with a rapid charger, fitting high-speed electric vehicle charging points will likely see this group spend more time eating and drinking at travel hub foodservices.

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

Understand Quickly

  • The impact of the cost-of-living crisis on the travel hub foodservice market.
  • How the current COVID-19 recovery phase will shape travel hub foodservice market share and size in future.
  • Travel hub foodservice venues used and items bought.
  • Factors that influence consumers’ decision-making when visiting travel hub foodservices.
  • Consumers’ perceptions and attitudes towards travel hub foodservices.

 

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.

Having endured an extremely challenging couple of years, UK travel hubs must now contend with the cost-of-living crisis. The threat of commuters seeking cheaper alternatives is driving travel hub foodservices to play on price, but high overheads make this unsustainable.
Providing good value is not always about being the cheapest. Rather than treating commuters like a captive audience left with no choice but to purchase from them, travel hub foodservices would be wise to improve their value propositions, for instance through the merchandising of giftable foods.”

Trish Caddy - Research AnalystTrish 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 market
    • Impact of price rises on travel hub foodservice consumers
      • Figure 1: Expected impact of the conflict in Ukraine on travel, by age, 2022
    • Demand for staycations exceeds pre-pandemic levels
    • EV charging opportunities
    • Companies and brands
    • Smart vending offers effortless on-the-go experience
    • Immersive retail concept increases dwell time and boosts footfall
    • The consumer
    • Travel hub usage yet to return to pre-COVID levels
      • Figure 2: Usage of travel hubs, 2019 and 2022
    • Coffee shops lead travel hub foodservice venues
      • Figure 3: Foodservice venues visited in travel hubs, 2022
    • Only one in six bought pre-packaged baked goods
      • Figure 4: Most popular types of food/drink bought from travel hub foodservices, 2022
    • Variety-seeking 16-44s desire guilt-free indulgence
      • Figure 5: Key factors when choosing travel hub foodservice, 2022
    • Scope to merchandise foodservice foods and drinks as gifts
      • Figure 6: Travel hub foodservice behaviours, 2022
    • Airport foodservices varied but overpriced and chaotic
      • Figure 7: Perceptions of travel hub foodservices, 2022
  3. Issues and Insights

    • Travel hub dining in an inflationary environment
    • Strategies for modernising travel hub foodservices
    • Prepaid meal cards
    • Smart vending machines
    • Checkout-free food outlet/restaurant
    • Click-and-collect
    • Permissible indulgences for reaching younger consumers
  4. Market Drivers

    • Future of travel hub usage
    • Prioritising hybrid workers
    • Sharing the road with cyclists
    • EV charging opportunities
    • Catering for family outings
      • Figure 8: Usage of travel hubs, by area, 2022
    • Demand for staycations exceeds pre-pandemic levels
    • Rising travel costs
      • Figure 9: Expected impact of the conflict in Ukraine on travel, by age, 2022
    • Continuing travel hub chaos to cost foodservice
    • Rail strikes will knock foodservice market off track
    • Airport travel chaos blights holidaymakers and travel industry
    • 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 10: Household financial wellbeing index, 2016-22
    • …and concerns over inflation are coming to the fore
  5. Launch Activity and Innovation

    • Smart vending offers effortless on-the-go experience
    • Immersive retail concept increases dwell time and boosts footfall
  6. Travel Hub Usage

    • Travel hub usage yet to return to pre-COVID levels
      • Figure 11: Usage of travel hubs, 2019 and 2022
      • Figure 12: Usage of travel hubs, 2019 and 2022
    • Food and drink most sought after at travel hubs
      • Figure 13: Travel hub purchases, 2022
  7. Venues Visited

    • Travel hubs represent a distinct foodservice market
      • Figure 14: Foodservice venues visited in travel hubs, 2022
    • Coffee shops lead travel hub foodservice venues…
    • …while fast food venues suit those on a tight budget
      • Figure 15: Foodservice venues visited in travel hubs, 2022
    • Scope for food-led venues to adapt to travel hubs
      • Figure 16: Foodservice venues visited in travel hubs, by travel hubs used, 2022
  8. Items Bought

    • Scope for family-sized meal deals at travel hubs
      • Figure 17: Most popular types of food/drink bought from travel hub foodservices, 2022
    • Younger commuters have a more diverse repertoire
      • Figure 18: Repertoire of food/drink bought from travel hub foodservices, by age, 2022
    • Room to improve bus/coach station foodservices
      • Figure 19: Most popular types of food/drink bought from travel hub foodservices, by travel hubs used, 2022
  9. Factors Impacting Choice of Travel Hub Foodservice

    • Scope to improve speed of service with geolocation tech
      • Figure 20: Key factors when choosing travel hub foodservice, 2022
    • Variety-seeking 16-44s desire guilt-free indulgence
    • Good food hygiene integral to good customer experience
    • Quick service and good food hygiene appeal to two thirds of travel hub users – TURF analysis
      • Figure 21: TURF Analysis – Travel Hub Foodservice, 2022
  10. Travel Hub Foodservice Behaviours

    • Two strategies to meet increased demand for travel hubs
      • Figure 22: Travel hub foodservice behaviours, 2022
    • Checkout-free foodservices allow commuters to skip queues
    • Prepaid meal cards allow commuters to automate recurring food/drink purchases
    • Scope to merchandise foodservice foods and drinks as gifts
      • Figure 23: Travel hub foodservice behaviours, by travel hubs used, 2022
    • Potential for vending machines to fill gaps in travel hubs
      • Figure 24: Travel Hub Foodservice – CHAID – Tree output, 2022
  11. Perceptions of Travel Hub Foodservices

    • Airport foodservices varied but overpriced and chaotic
      • Figure 25: Perceptions of travel hub foodservices, 2022
    • Motorway service area most unhealthy of all
    • Railway station foodservices lack seating
    • Better waste management required in bus stations
  12. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • CHAID analysis methodology
      • Figure 26: Travel Hub Foodservice – CHAID – Table output, 2022
    • TURF analysis methodology
      • Figure 27: Table – TURF Analysis – Travel Hub Foodservice, 2022

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