Bakery outlets have seen the strongest growth in on premise business amongst quick-service restaurant channels in the UK, according to a new report.
The Bakery Trends Tracker Report, compiled by The NPD Group, reveals that sales and visits in the financial year ending April 2019 were up 19% and 18% respectively.
The report concludes that this growth offers a solid platform with which bakery chains and independents can attempt to gain a greater foothold in the food-to-go and delivery markets.
It claims that currently, bakeries only service 3% of total click & collect, but sales are already increasing from this low base.
Delivery business for bakeries is also still at a very low level, but delivery volume is up nearly 63% in the past year and the value of delivery sales has increased by over 47%.
Peter Linden, Insight Manager Foodservice UK at The NPD Group, said: “Many businesses – small and large – are moving away from their traditional bakery offering to a sharper food-to-go focus.
“This involves putting on good coffee, offering new food choices such as pizza, salads, pasta, hot sandwiches, croissants, pasties and much more, and meeting the demand for click & collect and delivery.
“Bakeries by their very nature focus on food-to-go and this is where the growth is, with sales in this part of Britain’s total OOH market having grown by 8% in the year to April 2019.
“Bakeries can secure more growth by increasing their share of the food-to-go market from their current level of just 5%, and by bringing their food-to-go appeal to dayparts they don’t normally service, such as dinner.
“They also have scope to provide delivery, especially at breakfast time and at weekends.”
Other stats revealed by the report are include the fact that bakery outlets recorded a 9% increase in number of servings to 1.17 billion servings, bakeries have achieved a 15% growth in visits among the 16-24 age group and a 5% growth in the 50+ age group and that they have seen a 10% increase in snack sales in the past year.
Linden added that although ‘old-school’ family run bakeries still exist in the UK there are also a growing number of ambitious outlets ready to compete with big high street chains.
He concluded: “We believe competition will heat up. Bakery chains are ideally suited to riding some of the big trends in British foodservice and have responded imaginatively to consumer demand for convenience.”