1 minute read
Delivery was key for growth in 2020
Making the most of pandemic delivery habits is the secret to success in 2021 and beyond, says Blonnie Whist, Head of Insight, Lumina Intelligence
Being one of the only routes to market available during the height of the Covid-19 pandemic in 2020, it’s no surprise that the foodservice delivery market grew by £3.7 billion to double its 2015 value.
With dine-in operations closed or heavily restricted over the last 12 months, consumers turned to foodservice delivery in their droves, including an additional 4.3 million UK adults who ordered foodservice delivery for the first time.
While we expect the playing field to level out now that restrictions are starting to ease, the impact of 2020 is expected to drive habitual delivery behaviour beyond the pandemic. By 2024, the UK foodservice delivery market will have grown a further 10%, highlighting a significant opportunity.
Promotions will play a key role in driving volume as the recession continues to pinch household incomes. However, in the longer term, offering a point of difference and expanding day-part coverage will be key growth drivers for operators.
These are some of the findings from the Lumina Intelligence UK Foodservice Delivery Market Report 2021.
»One in 12 ordered delivery for the first time during the pandemic, while a quarter increased their usage. Nearly three quarters of current users plan to still order delivery when restrictions are lifted, which shows the importance of continuing to offer a delivery service going forward.
»Consumers are tired of cooking and so ‘didn’t want to cook’ has overtaken ‘treat’ as the top reason for ordering delivery in 2021.
»Uber Eats and Deliveroo grew their share of delivery occasions by partnering with more branded and independent operators at the start of the pandemic.
»The foodservice delivery market will be worth £12.6bn in 2024. More branded outlets will be offering delivery, which will boost growth, but operators need to make the most of pandemic-driven consumer delivery habits to ensure deliveries are a regular habit rather than an occasional treat.