Foodservice market slips to five-year low as growth slows

ISLAMABAD, PAKISTAN:  Pakistani cooks prepare dishes in the kitchen of Cafe Lazeez restaurant, a British curry chain, in Islamabad, 02 March 2005.  Cafe Lazeez owner Zahid Kasim, who launched the first of his Cafe Lazeez eateries in London 13 years ago and helped to update the country's ubiquitous "Indian" restaurants from relics of the 1970s to trendy culinary experiences, has gambled that he can successfully export his fusion of South Asian and European cuisine the 6,000 kilometers (3,728 miles) back to Islamabad, the capital of his food-crazy native country.   AFP PHOTO/Farooq NAEEM  (Photo credit should read FAROOQ NAEEM/AFP/Getty Images)

Stunted growth within the foodservice industry has seen the sector report its weakest six months in five years, new figures suggest.

While average spend and visit rates grew by 2% and 1% percent respectively during the second quarter, it was less than the previous three months, leading to lowest rate of half-year growth since 2012, according to the NPD Group.

All foodservice industry growth has been driven by quick service restaurants (QSR). All other segments, including full service restaurants (FSR) and retail, were flat or saw a decline in visits, the firm said.

QSR saw an increase of 4% in visitor numbers over the three month period while full-service restaurants saw traffic fall by 1%.

NPD

QSR, where average spend is £4.22, is outperforming the market while FSR, where average check is £8.97, struggles.

The NPD, which divided the average check into dayparts, reported the biggest increase to be QSR breakfast, which saw an 8% boost, while at the other end FSR dinner service fell by 1%.

One area of the foodservice industry that has grown across all segments is overnight (10 pm to 6 am). Consumers increasingly want to order food and beverages 24 hours a day, spurring the growth in delivery.

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