Home Delivery in Britain Growing 10 Times Faster Than Eating-Out Market HOW LONG will it be before getting breakfast delivered to our home or workplace becomes routine? Global information company The NPD Group says the delivery channel in Britain’s eating-out foodservice market (known as out-of-home or OOH) was worth £3.6 billion as of YE December 2016, up 6% on the previous year. The delivery channel has grown rapidly, up nearly 50% in value terms since 2008. Last year delivery grew 10 times faster than the total OOH market. While total visits to ‘eat out’ increased just 1% year-onyear to 11.3 billion, the delivery sector jumped nearly 10% to 599 million visits in 2016. Most delivery business (over 80% of visits) is through the fast-food QSR channel, but pubs are now part of the picture too as they begin to partner ‘aggregator’ brands such as Deliveroo, Just Eat, Hungry House and UberEATS. The aggregator brands are a big catalyst in the success of delivery. Although British pubs only account for 4% of the delivery market, they increased their delivery visits by 59% in 2016 over the previous year. Across the wider industry, at the end of 2016, delivery accounted for more than one in 20 (5.3%) of British OOH foodservice visits (versus 3.5% in 2008). Millennials (those aged 18 to 34) use aggregators heavily. The 18-to-24 age group especially has become a major source of demand accounting for 15% of aggregator delivery visits compared to 9% of total OOH visits. Normally associated with evening meals, delivery has room to grow at lunch and even breakfast time. Currently, 65% of all
Silver Celebrations at Flower Pot PAT THATCHER and Tony Read, licensees at the Flower Pot in Aston, were recently presented with a special ‘Silver Celebration’ pump clip and a barrel of Brakspear Bitter to mark their 25 years at the popular pub. Enjoying the beer at a special party for regulars and friends, Pat and Tony recalled the highlights of their quarter-century at the pub. Pat said, “When we took on the pub, we never imagined we’d still be here 25 years later! The whole family has been involved over the years including my granddaughter who recently helped out behind the bar.” The Flower Pot was Pat & Tony’s local back in 1992, and when they learned that the landlord was leaving, they decided to try their hand at running it. Although Pat had worked in the catering industry, Tony was a builder – so taking the keys to a pub was something of a leap of faith. “We didn’t think too hard about it,” says Tony. “If we had, we probably wouldn’t be here now!” Over the years, the pub has attracted its fair share of celebrities including Sir Tom Jones, Vinnie Jones, Brigitte Nielsen, Marco Pierre White to name just a few. It has also raised a huge amount of
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aggregator deliveries are for dinner but breakfast currently accounts for just 5% of deliveries and lunch 11%, suggesting there is a clear market opportunity for expanding these occasions. Cyril Lavenant, Foodservice Director UK at the NPD Group, said: “Ordering ready-to-eat food for delivery via an app or by phone is growing so fast that ‘eating in’ is becoming the new ‘eating out’. It goes beyond getting delivery of conventional ‘takeaway’ food because full-service restaurants are offering delivery too. Delivery obviously saves on the effort of visiting the foodservice outlet – ready-to-eat food comes to your door of course. But it’s now easier to duplicate at home the quality and enjoyment you always associated with eating out at a fullservice restaurant. Plus, you can effortlessly order a wide selection of takeaway food not just from one local restaurant but from several. Millennials are pushing the trend. It’s ultra convenient for them just to ‘tap an app’ to order. “We believe delivery will keep growing. The aggregators will surely view the current low level of penetration at breakfast and lunch as irresistible market opportunities. How soon will it be until we go beyond getting a basic take-away breakfast on the way to work and opt instead for a fancy breakfast delivered to our workplace on a work day or even order a breakfast to our home when we are not working? “By the end of 2020, the value of the delivery channel could grow by nearly 50% to reach £5.3 billion. This is based on a likely faster rate of 10% growth in 2017 and the same amount in each of 2018, 2019 and 2020.” money for local charities, the latest campaign being for Cancer Research, with Pat’s granddaughter Katie having raised £1,000 already through a planned parachute jump. The Flower Pot also has a more unusual boast, as home to the UK’s largest private collection of cased fish, with more than 80 adorning its walls, including a 50+lb pike. “We get a lot of fishing parties in here, so it’s a relevant theme and it gets customers talking,” says Tony. The world has changed since Pat & Tony moved into the Flower Pot, but the pub itself hasn’t changed too much. Tony said, “The price of beer has gone up from £1.40 a pint in 1992 to £3.80 today! But the pub has stayed the same, it’s unspoilt and that’s why our regulars love it.” Tony added, “We’ve enjoyed almost every minute of our time at the Flower Pot, and I think that comes through in how guests experience the pub – if we weren’t happy, they wouldn’t be either.“ Tom Davies, Brakspear chief executive, added, “We congratulate Tony & Pat on this impressive achievement. The past 25 years have not been easy ones for the pub industry, but the Flower Pot has thrived thanks to Tony & Pat’s natural talent as landlords, creating a welcoming, friendly environment for their customers. We’re delighted to have had them within the Brakspear family for all these years – here’s to many more of them!”
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Published on Mar 14, 2017
Issue #198 of CLH News - the leading monthly trade publication for the independent hotel, pub and restaurant sector of the hospitality indus...