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Road to recovery
As restrictions ease and operators look towards reopening, Lumina Intelligence gives an overview of the restaurant market and what’s to come
At the start of 2020, restaurants managed just 11.3 weeks of normal trading and had more than 40 weeks of limited trading. The effect was the total UK restaurant market value was hit with a -53% decline and the equivalent of 42 restaurant outlets closing every week.
Operators adapted with many taking a multichannel approach, with new revenue streams including delivery and ‘makeaways’ – kits for consumers to cook at home. And by also running smaller menus they were able to maintain product quality and consistency while managing with leaner teams in adherence to new safety guidelines.
Identifying and adopting new revenue streams has meant businesses have survived and reached new audiences. Foodservice-branded makeaway kits appeal to a fifth of consumers, with 4 in 10 considering buying ready meals made by foodservice operators and sold through the grocery channel.
EXPERIENCE FOCUS
The good news is that 52% of consumers are very or extremely likely to visit a restaurant by June. The key to success when your doors reopen is creating experiences not easily recreated at home. Consumers have developed habits, such as delivery, throughout the pandemic and the challenge now is to break these. Promote the socialising aspect of dining out that so many have missed.
ROAD FORWARD
Recovery will be helped by continuing with the innovations borne out of the pandemic and encouraging customers to use technology in restaurants – 45% of consumers expect to use technology when dining in in the future. The consumer experience will be improved if technological solutions, such as app and website development, digital ordering and payment, and the use of QR codes, are invested in and rolled out successfully. The knock-on effect is operators could benefit from increased sales as well as improved efficiency.
