United Kingdom Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United Kingdom Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The United Kingdom foodservice market is projected to register a CAGR of 3.02% during the forecast period, 2021-2026.

There has been a definite impact of the coronavirus outbreak on the overall foodservice business, with various segments being affected in varying degrees in the United Kingdom. The COVID-19 pandemic has placed unprecedented stresses on food supply chains, with bottlenecks in farm labor, processing, transport, and logistics, as well as momentous shifts in demand. Lockdown resulted in the closure of all pubs, cafes, and restaurants in the country. During this time, the entire industry came to a complete halt; however, some restaurants remained open for delivery and takeaway. To address the lockdown hit to the industry, the UK government implemented an initiative to help the restaurant industry, the Eat Out to Help Out scheme, in August 2020, following the first COVID-19 lockdown. During the month of August, diners in participating restaurants received a 50% discount on food items, up to GBP 10, purchased in restaurants, pubs, and cafes. Such factors are likely to change the market scenario in the coming years.

British consumers dine out more frequently, as solo dining is one of the ongoing trends, reflecting the busy and hectic lifestyle of consumers. In 2016, the restaurant booking site, OpenTable, claimed that the number of bookings for dinners-for-one increased by 110% over 2014-2016. The foodservice operators are benefiting from a dynamic and expanding corporate sector in areas like full-service dining, among other sectors.

The increasing frequency of restaurants offering various ethnic foods, such as Asian, American, Chinese, Japanese, and Thai cuisines, is the major factor driving the market in independent outlets among consumers. Furthermore, the increasing number of quick-service restaurants, such as KFC, McDonald’s, Pizza Hut, Domino’s, and others, have captured maximum consumer attention from consumers looking for convenience in their everyday meal requirements.​

Key Market TrendsCafes and Bars Hold a Significant Share in the Market

The country’s strong café culture has resulted in an increasing number of cafe and bar establishments every year. In 2017, about 1,215 café stores were opened, with more than three cafes opening per day on average across the country. The increasing number of cafes and bars includes a blend of non-specialists, independents, and major chains, such as Starbucks, Costa Coffee, and Caffe Nero, thus meeting the consumers’ demand for different coffee blends.​ About 39% of UK consumers claim that their coffee consumption has increased over the past couple of years, with 18% visiting cafes at least once a day. The country’s strong coffee culture has registered a significant growth of coffee shops/cafes. ​As coffee consumption increases in the country, this beverage is increasingly considered an important part of consumers’ everyday lives.

Growing Demand for Multicuisine or Ethnic Cuisines

The demand for multi- or ethnic cuisines in European countries, including the United Kingdom, is increasing, as more consumers, especially millennials and baby boomers, are willing to experiment with new and global cuisines. Moreover, the high rate of immigration, tourist population, and increasing sporting events have supported the ethnic food demand in the country. Therefore, in order to serve the personalized taste of consumers, cuisine-specific caterers or restaurants are setting up their kiosks in the games village and stadiums or near venues where sporting events are held to increase the indulgence of sports with ethnic food. Some of the most popular ethnic cuisines consumed include Japanese, Chinese, Mexican, Italian, Greek, French, Thai, Spanish, and Indian, which are increasingly served to consumers via hotels, restaurants, food halls, fast-food holdings, etc.

Competitive Landscape

The United Kingdom foodservice market is highly competitive, owing to the number of small and giant players dominating the market. Some of the key players in the market are McDonald’s, Starbucks Coffee Company, Domino's, Whitbread PLC, and Yum! Brands. Major players are embarking on market expansions and innovations in terms of online delivery of foodservice to achieve consolidation while optimizing their offerings and increasing their market shares.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Yum! Brands Inc.
Starbucks Corporation
McDonald's Corporation
Domino's Pizza Inc.
Burger King Corporation
Mitchells & Butlers
Whitbread PLC
PizzaExpress (Restaurants) Limited
Nando's Group
The Restaurant Group PLC

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.