Dine-in Occasions Continues to Increase, as Restaurants and Pubs/Bars Grow Share

According to the latest update to the Lumina Intelligence UK Eating Out Market Report 2021, the proportion of out-of-home occasions that are purchased and consumed on-premise increased by +3.4ppts, from 70.6% in the 12 weeks ending (12WE) 11/07/21 to 74.0% in the 12 WE 03/10/2021.

Delivery declined in share by -2.1ppts and Click & Collect declined by -1.5ppts, as consumers ate and drank out of home more often.

In the latest 12-week period, over half of the UK adult population had an eating or drinking out occasion each week, peaking at 58% WE 05/09/2021, coinciding with the late August bank holiday, warm weather and increased leisure time driving a rise in out of home occasions.

Average spend increased by +8.9% in the latest 12 weeks, from £11.01 per visit to £11.99. This is driven by consumers visiting higher spend channels, including restaurants and pubs & bars. Restaurants share of total eating out occasions increase +3.5ppts, from 15.3% to 18.8%, and pubs & bars increased share by +2.4ppts, from 15.4% to 17.8%. The QSR channel maintains the highest share of occasions, however in the latest 12-week period it has fallen -2ppts, from 37.7% to 35.7%, driven by the -2ppt decline in delivery occasions.

Lunch occasions increased by +2.3ppts over the past quarter, with dinner occasions decreasing by -2.2ppts. Lunch accounted for over one-in-three (34%) eating out occasions.

KFC saw its share of occasions increase by +1ppt in the past 12 weeks with McDonald’s and Greggs both experiencing -1ppt declines. KFC has been focusing its expansion efforts on drive thru formats, capitalising on consumers travelling throughout the school holidays.

Commenting on the results, Blonnie Whist, Insight Director at Lumina Intelligence said, “The easing of restrictions is resulting in consumers returning to more indulgent, higher ticket channels, such as pubs/bars and restaurants. This will come as positive news for operators, ahead of a critical festive period that is reliant on restrictions remaining eased and consumer confidence in socialising continuing to grow. The end of Summer also coincided with many returning to the office in some capacity, which will be a key driver in the increase in lunch occasions. City centre operators, who have had a torrid 18 months will be buoyed by the steady return of workers and the increases in commuter traffic.”