Challenging times for eating out market

29th July 2010, 11:30am

Despite things starting to look up for the UK eating out market, recovery is being slowed by spend and behaviour changes arising from the recent recession, according to a report produced by industry analysts Allegra Strategies.

The report tracks the eating habits of thousands of people. It also underlines how foodservice operators are having to work harder to get their share of spend, but are rising to this challenge with strong evidence of improved customer service.

Key findings include on average one in 10 meals are being consumed away from home in 2010, marginally down on the one in nine level previously, and discounting has helped support market resilience by enhancing affordability and boosting footfall. A total of 38% of adults now regularly use vouchers.

The report also found that lunch is the most popular meal eaten out of home, with 27% of consumers having at least one lunch meal out per week. This compares with 18% for dinner and 8% for breakfast. 

Meanwhile 51% of consumers claim that healthier eating now forms part of their overall eating out behaviour, with 35% having made a conscious decision to eat out more healthily over the past year.

Steve Gotham, project director, Allegra Strategies, said: "It is clear the lessons consumers learnt during the recession are not being forgotten. Encouragingly, the evidence of the market recovery after a difficult 2009, allied with a series of improving ratings by customers for their eating out experiences, shows that foodservice operators are responding and delivering enhanced value propositions to customers."

"However, with trading conditions set to be impacted by continuing economic uncertainty and the VAT rise to 20% in 2011, which will only serve to widen the price gap between the cost of eating in versus going out, short term market prospects are set to remain challenging. This will further test the capability and resolve of more operators to respond to the needs of more demanding consumers."

Related Articles:

• 16 Sep 2010 - Voice of Joe Public counts more than “expert reviews” when choosing restaurants, shows poll
• 15 Jul 2009 - Spending on eating out falls for first time in 40 years
• 27 Mar 2009 - Restaurant executives gear up for industry summit

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