Restaurants look set to recover as consumers still prefer to dine out with friends and when they want something special to eat
Global information company The NPD Group says amid the severe and unprecedented COVID-19 business pressures affecting Britain’s out-of-home (OOH) foodservice industry, the delivery channel has been a welcome success story. Comparing the January-to-October period this year with the same period in 2019, delivery is up 14% in visit terms to 804 million and has seen a 40% increase in spend to £5.7 billion. However, although delivery has met a need during this unprecedented period of enforced home living, working and entertaining, NPD’s research shows that consumers still continue to value eating out and many plan to do so as soon as they are able.
COVID rules are boosting delivery by 12 million visits a month
In the meantime, with stricter rules in force across the foodservice industry, demand for delivery is strong. The NPD Group says on current trends delivery could finish 2020 with visits in the 12 months up 16% to break the 1 billion barrier and reach 1.1bn visits with spend projected up by 42% at £7.1 billion. That would be the equivalent of a 12 million monthly increase in visits versus 2019 and a £177 million monthly boost to spend.
Dominic Allport, Insights Director (Foodservice), The NPD Group, said: “Delivery is the silver lining in the otherwise very black cloud that hangs over Britain’s foodservice sector and has been the standout performer in 2020. Delivery spend peaked in July at 51% above pre-COVID levels but this trailed off as foodservice operators re-opened and with the August Eat-Out-to-Help-Out scheme. It’s now rising again amid the return to stricter lockdown rules and we expect it to see further success in the colder winter months and on into 2021. While the delivery channel is often seen as a threat by some operators, during the COVID-19 crisis it is bringing valuable business to many outlets that are otherwise facing the severest business challenges, and helping to feed a nation locked down in their homes.”