Eating out sector recovery to slow.

In some new forecasts launched at HRC 2022, and in-depth analysis for the eating out sector, IGD – providers of insight and foresight for the food and consumer goods industry – has highlighted the road to recovery and its complexities, driven by evolving consumer behaviour and socioeconomic factors.

Modelled on three different economic scenarios to reflect current global volatility, their forecasts aim to give manufacturers, wholesalers and operators a view of the challenges ahead and actionable insights to help with planning for both short-term and longer-term recovery.

Nicola Knight, senior analyst and lead on the new forecasts and report commented: “During the pandemic, we saw an unprecedented and accelerated level of diversification and innovation in the sector that enabled survival for some businesses. As the market recovers from the shockwaves of the last two years, there are a new set of challenges to face, such as the rising cost of living and inflation, and now, the significant implications of the war in Ukraine.

“Recovery will be at a slower pace than industry would have hoped. Our low-mid growth forecasts are most likely to play out, meaning that the market will not return to its pre-pandemic state until at least 2024.

“Recovery will also vary by sector and QSR is currently the driving force behind growth, offering a convenient, consistent and value-driven alternative to eating at home, providing the ‘lipstick effect’ for consumers. That said, city-centre and transport hub focused brands will continue to chase 2019 sales levels.”

Pubs and restaurants will see recovery slow; mid-market operators will be squeezed as consumers eat out less or down-trade, yet high-end restaurants will be protected to an extent, the data reveals.

Hotels and leisure will find recovery the most challenging as discretionary spend is scaled back by more consumers. Staycations will continue at higher than pre-pandemic levels due to pre-booking but international tourism will still be considerably reduced. Income from domestic and international business travellers will remain significantly depressed this year, say IGD.

Staff catering will see some growth prompted by returning office workers. However, some businesses have removed facilities or remodelled to lower cost formats. With businesses facing increased costs there will be little desire to re-invest in the short-term, the researcher add, with healthcare, education and government-run services likely to revert to pre-pandemic patterns with inflation driving growth.

Nicola Knight concluded: “There’s no denying, the industry is facing a challenging time; planning and prioritising must sit at the top of the agenda for businesses to navigate the year ahead and beyond. Priorities will vary by sector, but there are clear behaviour themes driving the industry forward which include an enhanced focus on customer experience and loyalty, investment in technology and implementing strategies to mitigate costs.”

Roadchef brings a taste of Italy to the motorway

Motorway service area operator, Roadchef, has announced an exciting new partnership with Italian food to go brand, Coco di Mama, to bring the restaurant’s premium innovative pasta offering to motorway users for the first time.

Located at Roadchef’s flagship Norton Canes service area on the M6 Toll, the counter will serve Coco di Mama’s award-winning signature pasta range including Ham Hock Carbonara and Slow Cooked Bolognese sauces.

The partnership adds a diverse new dimension to Roadchef’s current food and drink portfolio, offering customers greater choice and flexibility when it comes to dining on-the-go, as Howard Lockwood, catering & brand development director at Roadchef explained: “We are very excited to be working with Coco di Mama on this pioneering project to bring its innovative Italian food to the motorway. We are constantly striving to add new creative concepts and delicious menu options to our service areas, and we feel that this partnership will give road users a broad range of exciting food options while still having great synergy with the other offerings already in place. “The company’s ethos is firmly focused on providing good, honest food with the freshest ingredients and a seasonal focus, which chimes perfectly with our philosophy of constantly striving to delight our customers with the experience that we offer.”

Coco di Mama currently operates in 145 locations nationwide. However, this will be the brand’s first foray into the travel sector.

Managing director, Jim Atwood, said: “We are delighted to partner with Roadchef to offer our iconic, generous pasta pots to roadside customers served at speed. We first opened our doors in London in 2011 and have been building up our ‘food to go’ stores, delivery kitchens and grocery channel partnerships ever since. This move into the travel hospitality sector is a bit of a extension for us, but one which we believe fits well with our business and will suit the model of the motorway service industry perfectly.” If the trial is successful, Roadchef says that it will look at extending it to their other service areas.