Pizza, Pasta & Italian Food Magazine - December 2023 - Issue 219

Page 4

NEWS

Our final round-up of 2023 highlights the many opportunities for a career in hospitality, expansion plans for a major operator and a Shaq attack!

Eating out market receives welcome boost

Research from Lumina Intelligence Eating and Drinking Out Panel (WE 02/07/23 to 24/09/23) reveals a greater number of consumers participating in the eating and drinking out market in Q3 2023, an increase of +7ppts, with consumers looking for immediate necessities in the form of drinks. Consumers opting to eat or drink out as part of their normal routine has seen a rise this year, while social missions have grown at dinner, with heightened confidence. More consumers being out and about in Q3 has seen a realignment in day-part shares, with drink-only occasions the only growth area, up +3.8ppts. Lumina data also revealed that consumers are opting for affordable drink-only occasions, with pubs and bars seeing the most notable share growth year-on-year, up +1.3ppts. Growth in pub share of occasions has been driven by an uptick in consumers going to the pub solely for a drink, rising by +4.8ppts. Dinner has failed to gain market share YoY, while the proportion of 4 P&P_Dec23_219_p04-11_news AB.indd 4

those opting for pubs and bars, QSR or restaurants for dinner has declined. Value has become less important as a driver to a venue at lunch and dinner, as financial strain eases for some as inflation drops back. However, those who identify as very value conscious are trading out of the market at these more expensive day parts. Meanwhile, the UK restaurant market is forecast to reach a value of £18.7 billion in 2023, marking a growth of 5.2% and positioning the sector 2.6% behind its pre-pandemic value, latest research from Lumina’s UK Restaurant Market Report has shown. Although operators are struggling to boost volumes, penetration has remained flat YoY – seeing restaurants lose share of the total eating out market and leaving growth behind that of pubs and fast-food outlets. Restaurant players are, inevitably, more exposed to the impacts of cautious consumer spending, rising staff costs with the new national living wage, and ongoing hikes for food, ingredients and drinks.

The unsettling decline in the number of outlets continues to dampen recovery in the restaurant market, with an average of eight sites each week forecast to close in 2023. This equates to a total of 27,020 site closures – around 4000 fewer than in 2018. Challenging trading conditions are not the sole cause: overexpansion has also played a part. In 2023, closures are being driven by independents, as branded restaurants navigate challenging conditions more successfully. Indeed, this segment is predicted to achieve value growth of 9.0% in 2023 and set to open a modest, yet significant 1.1% more outlets. Brands are driving recovery with mergers and acquisitions activity, making operational efficiencies and aligning themselves with consumer trends in products and experience. Restaurant menu management tactics are evolving to balance consumer demands with cost control, as operators navigate price increases without deterring customers. Menu price inflation, a boost in meat-free dishes and lower-calorie additional courses are key menu strategies in 2023. Using premium ingredients, exploring ‘kitchen tourism’ to appeal to the appetite for international cuisine, and adding more ‘veggie-centric’ dishes are key trends. The future looks brighter, with a market value of £19.5 billion forecast for 2026 – underpinned by a continuing stronger performance from branded restaurants. Over the next three years, interest rate reductions and average earnings outpacing inflation are expected to boost consumer spending power. However, restaurant market growth is forecast at 1.4%, behind the total eating out market growth of 2.6%. Market trends – including digital innovation, strategic partnerships and sustainability initiatives – are expected to be central to operator growth strategies. www.pizzapastamagazine.co.uk 13/12/2023 17:15


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