The new survey from audit, tax and consulting firm RSM hasrevealed 45% of operators are expecting to increase their delivery sales over the next two years.
The UK has the largest food delivery service market in Europe. The ten billion pound industry has found itself expanding in recent years largely due to the introduction of online ordering apps like Just Eat, with operators opening ‘dark kitchens’ to capitalise on the trend.
However, the report that contained responses from over 300 middle market consumer business leaders, found the number one priority for respondents was reducing costs.
In order to prepare for a more cost effective business 86% of respondents have already reduced or plan to reduce rental costs, with 40% seeking to increase internal efficiencies as a means of reducing the impact of national minimum wage and national living wage rises.
Paul Newman, RSM’s head of leisure and hospitality, said: “The majority of respondents to our survey agreed that there is still potential for expansion in the delivery market but operators considering a move into home delivery need to carefully consider the costs and the potential impact on dine-in custom and brand equity.
“Overall, bars, restaurants and club operators are feeling positive about the year ahead but remain focused on reining in costs. As a result, landlords can expect more attempts by operators to renegotiate lease terms as a means of mitigating increases in operating and staff costs.
“While there are some signs of a Boris bounce in early year trading, consumer confidence could be rocky over the coming year, so operators will need to remain alert and adaptable.”
The survey highlighted issues operators have been facing, with 87% of respondents admitting difficulty in recruitment over the last 12 months. Also 81% of operators fear ending of freedom of movement will impact their ability to hire effectively.