Foodservice market slips to five-year low as growth slows

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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