A year of steady recovery for our UK division

2021 was about how pent-up postpandemic demand would benefit food services. 2022 was a slightly different story. For what was until recently known as KK Fine Foods – for several years now a very valuable member of the What’s Cooking group – it has been a year of steady recovery, through focused teamwork, proactive NPD, customer relationship building, and of course, infl ation management.

Furthermore, the plant-based revolution isn’t just underway, it has moved into the mainstream and is now taking centre-stage on restaurant menus, from casual pubs to fine dining. Of course, the new Group Strategy ties in perfectly with this trend.

Another 2022-2023 trend that is worth mention is the importance consumers attach to health. They not only hold themselves accountable for their impact on the environment: responsibility for and awareness of self-health is also a key priority.

Moreover, considering the cost-of-living crisis we are facing, the focus is now largely on high-quality food without the formality. Takeaways, fakeaways, food for sharing and street food are proving more affordable versions of finer dining alternatives. The casual style of eating is an interesting alternative to restaurant dining for many. Affordable luxury is what consumers are after, with seasonal, local ingredients prepared in fuss-free ways.

Lastly, the cultural influence of East Asia, and of Korea and Japan in particular, is growing at pace. Both Korean and Japanese cuisines lend themselves well to fusion dishes with bold, now recognisable ingredients like miso, gochujang and kimchi featuring on many menus. The trend of fusion food also enables people to taste fl avours from all over the world.

The changing UK restaurant market

Let’s zoom in briefly on the social event that eating out is now, more than ever. It’s not only about the company you share but the food you share, too. The vibrancy and variety of market-style street food is a particularly popular choice at the moment, whilst “big night in” and “fakeaways” are taking the spotlight as money-saving alternatives to restaurants.

Consumers are looking for exciting retail options to enjoy at home with friends and family when going out isn’t an affordable option; it’s all about championing on-trend styles of eating that enable consumers to take away the take-away, whilst still feeling as though they’re enjoying something special.

The UK restaurant market is set to value £18.1bn in 2022, returning to 94% of its 2019 value, according to the 2022 UK Restaurant Market Report from Lumina Intelligence. Pubs continue to be a cornerstone of UK life, showing signs of resilience and durability; across 2022, almost one in ten UK adults have visited a pub at least once per week amid a difficult economic outlook.

While the market will face recessionary behaviours from consumers across 2023, Lumina Intelligence expects improvement will foster greater spending and increased footfall in 2024 and 2025.

Soaring costs and endlessly grim challenges posed by the cost-of-living crisis have left operators in a critical position. Pubs, restaurants and cafés have needed to balance increasing menu prices with not wanting to alienate already financially stretched customers. In these challenging times, operators have been acting and making clever changes on their menus.

Outlook for 2023

Seeing that food service infl ation will hit a record and that food infl ation is also rising fast in the retail sector, that restaurant spending falls as more consumers cut back, while take-aways and fast-food spending grow, the question becomes: what does this mean for us and our customers?

First, we must ensure that we choose the right playing field as the food service landscape changes: take-aways and quick service restaurants continue to grow. Secondly, we have to be aware that the way to win is by understanding our own strengths and capabilities. Thirdly, innovation is key: redeveloping or replacing dishes on the menu that attract higher infl ation is preferable to upping the price. The group’s renewed focus on innovation will surely help here. And lastly, we have to ensure we don’t become complacent. Let’s keep on challenging ourselves to broaden our reach and create innovative NPD.

Emma Abram Head of Sales, KK Fine Foods UK

What’s Cooking? Annual report 2022