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UK consumers are eating out less, according to research agency NPD Group

16th Mar 2012 - 00:00
Abstract
According to latest figures by independent foodservice research agency NPD Group, UK consumers ate out of home 181 times last year, a significant drop of 15 visits per year since 2008.
The NPD Group's data reveals that the decline is particularly noticeable amongst 18-24 year olds who accounted for 222 visits in 2008 but only made 184 visits last year, and 25-34 year olds who dined out 28 fewer times in 2011 compared to 2008. Guy Fielding, business development director for Foodservice Europe at The NPD Group, commented on the results: "Although the market generated 11 billion visits to restaurants in 2011, the loss of more than 90 million visits as customers cut back shows that the eating out of home market is shrinking. Nationwide foodservice brands and independents alike are fighting for both customer visits and for serving share in a ferociously competitive environment. "Every time one brand wins a new customer, another brand loses one. The market continues to contract, and it is difficult to predict a return to growth in the short term. At the same time some consumers are 'trading-out', in other words, they are simply no longer eating out, removing themselves from the market entirely." There has also been a decline in workplace eating, added Fielding. "2012 will be a tough year. Foodservice brands need to understand and leverage their core strengths, find fresh ways to connect with their customers and watch and react to changing offerings from their competitors. "We're already seeing the UK's foodservice landscape change. Some foodservice outlets have extended opening hours, others have launched new products in new categories and some have even introduced different service formats. On the other hand, some have reacted by simply slashing prices and offering more deals. Consumers are being offered more choice whilst brands and independent outlets are fighting for their share of a declining market. "For foodservice brands to succeed in this environment they must attract and claim their share of a shrinking audience that is increasingly cost-conscious. They need to offer a clear value proposition, and ensure that they communicate it to consumers with messaging that is relevant to them. "Whether that message is value, healthy food, local sourcing, great service, or a place for kids and families, the brands that survive and thrive will have successfully moved beyond price, price, price."
Written by
PSC Team