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Dining out Still Positive as Home Delivery Grows

UK consumers are still eating out even despite an increase in home delivery, according to new research by purchase intelligence platform Cardlytics.

The study, based on spending data from over three million UK bank customers, revealed spending on eating out grew only 3% year-on-year in the first quarter of 2018, compared with 9% the previous year.

In contrast spending on delivery services increased 17% in the first quarter of 2018, with just eat and Deliveroo the main drivers of growth. Cardlytics said the data revealed casual dining “no longer reigned in the restaurant sector” as delivery services gained a greater percentage of the market. Casual dining used to account for almost half of restaurant spend two years ago but accounts for 40%, followed by quick service (39%) and delivery (16%).

Spending on the casual dining sector fell 1% year-on-year in the first quarter of 2018, compared with 5% growth in 2017 and 10% in 2016. The average transaction value in delivery services increased 10% year-on-year in the quarter, compared with restaurants as a whole, which has seen the average transaction value fall 6% over the past three years.

. Cardlytics UK commercial director Duncan Smith said: our data shows the restaurant landscape is continuing to shift, with casual and high-end casual dining suffering from a challenging winter period. The cold weather has clearly supported delivery services but, with the seasons changing, there is an opportunity for physical restaurants to entice customers back with new partnerships and diversification of their rewards and offers. With profitability set to be one of the biggest issues for the industry in 2018, restaurant owners will need to take a long hard look at their physical high-street presence and examine whether their strategy is sufficiently different to foster loyalty among increasingly discerning customers.”

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