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Tue 31st Jul 2018 - NPD Group – overnight foodservice visits are driving 83% of sector growth |
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NPD Group – overnight foodservice visits are driving 83% of sector growth: Insights firm NPD Group has reported 257 million food and beverage outlet visits were made by UK consumers between midnight and 7am for the year ending May 2018. These overnight visits made up 83% of all growth in out-of-home (OOH) foodservice visits in the last two years. The company stated: “It is a small proportion of Britain’s eat-out or OOH foodservice industry, which registered more than 11.3 billion visits for the year ending May 2018 and is now worth some £56bn. But in a market facing pressures from all sides, the growing demand for overnight and early morning food and beverages consumed away from home is an important new source of growth. The overall OOH foodservice industry grew by 43 million additional visits in the two years ending May 2018. The overnight portion made up 83% of this growth, or some 36 million visits. This is a new trend that reflects the ability of Britain’s foodservice operators to make their assets work hard 24 hours a day and is partly supported by rapid growth in delivery. London has provided much of the overnight momentum and now accounts for 26% of night-time traffic nationwide with more than 67 million visits annually. The capital’s overnight foodservice market grew 38% in visits in the two years ending May 2018. Large cities, especially in the north of England and in Scotland – including Liverpool, Manchester, Sheffield, Leeds, Newcastle, Glasgow and Edinburgh – are building night-time business with 20% average visit growth over the past two years. However, cities in Wales, the Midlands and the east of England – including Cardiff, Birmingham, Wolverhampton, Oxford, Cambridge and Norwich – are less successful between midnight and 7am having seen visits dip by 6% on average.” Dominic Allport, insights director with NPD Group, said: “London is leading the overnight and early morning trend. The two years of growth we have identified includes the period since the August 2016 start of London’s Night Tube operations, and the months since the announcement in July 2017 of Sadiq Khan’s 24-hour vision for London. A huge variety of sectors routinely involve night work – including hotels and restaurants, arts and entertainment, media, transport, health and social work, wholesale and retail. People in these occupations want to visit foodservice outlets to buy food and beverages they can consume away from home. Our data indicates the foodservice industry is contributing to London’s 24-hour economy. And we know from other foodservice trends major cities will often follow London. Britain’s QSR (quick-service restaurant) outlets are particularly successful in this new market. On a 24-hour basis, QSR brands grew visits by almost 3% over the two years ending May 2018. But in the overnight market, they have grown visits by nearly 27% over the same period – nine times faster. Foodservice operators selling coffee have seen visit growth of 36% against total market growth of 4% over the same period. An outlet selling coffee that is open any time between midnight and 7am is three times more likely to be visited during this overnight and early morning period than during the rest of the day. The overnight OOH market is now worth close to £1.2bn, having broken the billion-pound consumer spend barrier in the 12 months to May 2018. The NPD Group says this fast-developing market segment could expand from the current level of 257 million visits annually to some 300 million visits by the end of 2020 to create a market potentially worth £1.5bn. Consumers are also much more likely to seek special promotions at night involving vouchers, discounts or meal deals. On any given day, about 28% of visits involve an offer or promotion of some kind, while at night this jumps to 46%. But the bulk of the market is grab-and-go, accounting for 75% of night-time visits compared with the lower figure of 55% when measured across the full day. Foodservice operators face many challenges, including Brexit-related labour issues, workplace pensions, inflation, higher business rates, new wage laws and declining retail footfall, driven partly by growth in online shopping. What we are seeing in London and other major cities is a welcome growth trend that can benefit many operators.”
Women’s Entrepreneur Conference five weeks away: Propel has partnered with Elliotts chief executive Ann Elliott to launch the sector’s first conference featuring an all-female line-up of company leaders. The event, which is open for bookings, takes place on Tuesday, 4 September at One Moorgate Place, London. Speakers will be Wahaca founder Thomasina Miers (“How to ascertain if your business idea is genius or madness”); Mowgli founder Nisha Katona (“From barrister to bunny chow: why risk it all for restaurants?”); Sophie Bathgate, of Sophie’s Steakhouse (“What I would do differently next time”); Artizian founder Alison Frith (“How to market a startup”); Cheshire Cat Pubs & Bars founder Mary Mclaughlin (“Growing an idea from startup to sustainable”); Eve Bugler, founder of BabaBoom (“How to keep the joy when it’s all on your shoulders”); Jane O’Riordan, founder of The Dynamo (“The importance of patience”); Sally Jackson, owner of The Pink Pig Farm (“The ten hardest lessons I’ve learned”); Christine Winton, of Siam Eatery(“Can you have work-life balance when you start a business?”); Vanessa Hall, co-founder of Jack & Alice (“The importance of staying true to your values when you start and expand your business”); and Laura Harper-Hinton, co-founder of Caravan (“Why people are key to your success”). The event will also see an award given to the Wireless Social Female Entrepreneur of the Year. Elliott said: “Female entrepreneurs are making an enormous contribution to the hospitality sector – but we need even more of them. The conference is intended as a showcase of some of the sector’s best female entrepreneurs and to encourage even more of them to take the plunge.” Propel managing director Paul Charity added: “If our sector is to truly serve its market, we need more companies led by women at senior levels. We hope companies send their brightest female talent to the conference to pick up inspiration and develop their entrepreneurial talent. We also believe it’s a great opportunity for male colleagues to gain insights into female entrepreneurial skills.” Tickets are £195 plus VAT for Propel Premium subscribers, £245 plus VAT for operators and £395 plus VAT for suppliers and can be booked by emailing anne.steele@propelinfo.com or calling her on 01444 817691.
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