Allegra Foodservice’s UK EatingOut Panel™ reports that eating out frequency has increased at both pubs and supermarket-to-go channels in Q1 2014 trading, and that consumer spending levels have also increased across all day-parts in these channels.
Overall eating out spend is up
The Panel data reveals that overall eating out participation and frequency is down but spend is up, with year-on-year percentage growth higher than the rate of inflation, suggesting that consumers are choosing premium options when eating out.
The UK EatingOut Panel™, which tracks the eating out activity of 6,000 consumers’ every month, shows that eating out participation is lower in Q1 2014 compared with Q1 2013 – 92.2% Q1 2013 vs 91% Q1 2014. The reasons for the decline in participation include the wettest winter on record, Easter falling outside March this year (when it fell within Q1 last year), and continued dampened consumer confidence.
Dampened consumer confidence
Speaking at the UK Foodservice Quarterly Market Debrief in London, Simon Stenning, director, Allegra Foodservice said: “42% of consumers still do not feel confident about their future income levels and 60% don’t agree that their money is going further now than it did six months ago.”
Stenning went on to reveal that: “Dampened consumer confidence has also impacted frequency which has decreased, except at lunch where frequency has increased marginally. This increase in frequency at lunch has been driven by growth in supermarket to go channel and branded chains.”
Attendees at the debrief included contract catering companies, Elior, Sodexo, Compass and Aramark as well as restaurant operators TRG, Wagamama, McDonald’s, Prezzo and TGI Fridays, plus pub companies M&B and Punch, amongst other operators, suppliers and distributors.
The debrief concluded with a panel discussion featuring emerging restaurateurs:
- James Nye, Anglian Country Inns,
- Kavi Thakrar, Dishoom
- Charlie Nelson, Fundi Pizza
- Bunmi, Olokosi, Arabica Bar & Kitchen
Allegra Foodservice’s outlook for 2014:
- Operators are very optimistic about trading performance for the rest of 2014.
- There will be a rise in consumer confidence.
- Expect a rise in participation and frequency across all segments.
- The World Cup with generate an uplift in the market, especially for pubs.
- Spend is expected to remain high with the new era of premiumised informality driven by food pleasure seekers.
The UK EatingOut Panel™ tracks consumer eating out activity on a monthly basis to provide the UK’s most accurate continuous consumer dataset. Each month, the panel provides a fully representative sample of 6,000 consumers’ eating habits and preferences across all day-parts within the entire out of home market.
Each quarter, Allegra Foodservice hosts the UK Foodservice Quarterly Market Debrief which summarises the latest consumer eating out behaviour from the previous quarter. Taking insight from the UK EatingOut Panel™, each debrief has a market overview, channel and category focus. Guest speakers add context and additional insight.
Allegra Foodservice delivers best-in-class business and consumer intelligence for the UK food and beverage sector. Services provide foodservice operators, suppliers, distributors and stakeholders with crucial market data, consumer insight and competitive intelligence.
Clients are able to realise their corporate, strategic and tactical aims through programmes that are tailored to meet their requirements.
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