INSIGHT
« MARKET RECOVERY
Eating-out market growing With restrictions ending in July, focus turned to market recovery, says Bonnie Whist, Head of Insight, Lumina Intelligence
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here’s no denying that the pandemic has had a pretty catastrophic effect on eating-out operators, with the UK eating-out market declining by -47.8% to £47.7 billion in 2020, not helped by there only being 11.3 weeks of normal trading last year.
GOOD NEWS
The good news is the market is expected to grow +33.4% in 2021 to £63.6bn, and to make a full recovery and exceed its pre-pandemic value by the end of 2022. It’s set to be worth £91.9bn by that time. The growth would have increased further had it not been for closures at the start of this year for mainly dine-in outlets. The outlook is most positive for the retail, travel and leisure sub-segment of
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the total market as it’s expected to have the quickest turnover recovery. In addition, on-the-go and low-ticket channels are considered to be well-placed for takeaway and recessionary trading.
SALES BOOM
For those working in hotels, pubs and restaurants – the THE TOP largest sub-segment of the THREE ACTIVITIES total eating-out market by PEOPLE value and by outlets – HAVE recovery to two thirds of its MISSED DOING ARE: 2019 value is expected this year (+32.1% to £44.8bn). However, prolonged MEETING restrictions on indoor dining OTHERS and travel will limit further recovery. That said, those EATING OUT venues in popular tourist AT A areas around the UK are RESTAURANT likely to have seen sales boom as people opted for HOLIDAYS a staycation this summer.
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Blonnie Whist, Insight Director at Lumina Intelligence, says: “With all restrictions on the hospitality sector ending in July, attention now turns to market recovery. “In the interim, we will see slight polarisation between channels, with on-the-go and relatively low-ticket solutions well placed to continue to capitalise on demand for takeaway, as well as combat any recessionary trading. “Hotels, pubs and restaurants are set for a slower recovery, as prolonged restrictions on indoor dining and limited travel hamper 2021 trading. “However, between 2022 and 2024 there is a £3.1bn growth prize for operators to target.” Source: Lumina Intelligence UK Eating Out Market Report 2021
ISSUE 6 2021
« Eat
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