Eating out has become part of everyday life, a new report from CGA Peach and Barclaycard reveals—but restaurant and pub operators seeking to expand face obstacles in their path.
The free report, Looking for Tomorrow’s Growth, charts the rise of eating out, with nine in ten of British adults now doing so—and two in five at least weekly. Barclaycard data indicates that growth in monthly spending in pubs and restaurants has far outstripped that in supermarkets in the last two years.
But while the frequency of eating out remains high, organic growth has been harder to come by. CGA Peach data shows that total sales for leading managed pub and restaurant groups grew by 4.3% in the year to August—but by just 0.8% on a like for like basis. It indicates that casual dining brands in particular have been reliant on openings for growth—and that has led to a sharp upswing in the supply of restaurants across the country. Separate CGA Peach data shows the number of managed restaurants has increased by 5.6% in the last year, with small to medium sized groups especially active.
The report identifies more key dynamics in eating out, including a generally even distribution of new openings around the country and a particularly high concentration in cities beyond London including Manchester, Birmingham and Glasgow. It identifies important trends in loyalty—with only a third of adults consider themselves loyal to a particular brand, leaving two thirds who are ambivalent or fickle—and insights into the crucial segment of 18 to 34 year-old ‘millennials’, who now account for around half of all eating out visits.
The report also highlights the problem of meeting diners’ rising expectations; only three in ten customers say they are very satisfied with their experience at eating-out brands, a figure that has remained static for several years.
Looking for Tomorrow’s Growth’ is compiled by CGA Peach in partnership with Barclaycard, and pulls together exclusive insights from CGA Peach’s portfolio of research channels, including BrandTrack, Coffer Peach Business Tracker and the Alix Partners Market Growth Monitor. For more details, contact Jamie Campbell at CGA Peach on 0161 476 8375 or email@example.com.