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Traditional hospitality settings claw back market share

Family eating

The easing of coronavirus restrictions over the summer has delivered a much-needed boost in average hospitality spend with pubs and restaurants benefitting the most, latest figures confirm.

According to the Lumina Intelligence UK Eating Out Market Report, average spend per consumer per visit increased by 3.9% from £9.01 to £9.36 for the three months to 11 July.

Over half of the UK adult population had an eating or drinking out occasion as restrictions eased across the UK during July.

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The proportion of UK consumers who had an eating out occasion increased to a peak of 52% over the 12-week period measured by Lumina.

The increased spend comes as pubs and bars saw their share of UK eating out occasions rise from 3.8% to 12.5% compared with the previous quarter, while restaurants grew from 9.7% to 11.5%.

In contrast, quick service restaurants decreased in channel share by 10 percentage points, from 41.3% to 30.9%.

This comes as on-premise purchasing was no longer limited to takeaway as lockdown restrictions were eased.

Restrictions easing also had a notable impact on delivery and click and collect. Delivery declined in share by 9.8 percentage points and click and collect declined by 5.7 percentage points as more consumers ate and drank out of home with increasing consumer confidence and sporting events including the Euros bolstering occasions.

The report also highlighted that more consumers are identifying as non-drinkers (13%), with many choosing to opt for low to no alcohol beverages where possible and more identified as flexitarian or vegetarian in the latest quarter (37% in total).

A higher proportion also identify as gluten free and dairy free (almost 7%).

Katherine Prowse, senior insight manager at Lumina Intelligence, said: “Positively for the UK hospitality industry, the easing of restrictions has shown signs of consumers returning to normality. Pubs, bars and restaurant are driving participation and spend, with delivery playing less of a pivotal role. This is something that we expect to continue to grow, particularly now that all restrictions have eased.”

“We are also seeing more spontaneity from consumers. ‘I was out and about (e.g. shopping)’ is now the second biggest reason for eating or drinking out. As town and city centres continue to open up, operators should see this as a great opportunity to generate incremental footfall and inspire consumers that may have not been considering eating out.”

Operators bank on new menus and concepts to remain relevant in post-Covid world

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Andrew Seymour

The author Andrew Seymour

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