Fast food is dominating informal eating out market growth, with Subway the main driver of expansion growth in absolute terms, adding 134 stores to its estate to reach 1,557 outlets, followed by Domino's adding an additional 102 outlets, according to new research.
According to eating out in the UK 2012, Allegra's latest instalment of the eating out series, growth of the Informal eating out market (worth £52bn, with 226,350 outlets) outperforms growth of the rest of the foodservice market and the wider retail market. The total UK foodservice market is estimated to reach £75bn in 2012.
The leading group in terms of turnover is McDonald's, followed by restaurant group Yum! Brands, with brands, KFC and Pizza Hut. However, Jamie's Italian stands out in sales per outlet, with average weekly sales at £50,000.
Consumer Attitudes and Behaviours
Consumer confidence is fragile with 45% of consumers stating they do not feel confident about their future income levels. This lack of confidence influences 62% to spend cautiously when eating out.
Spend and Frequency
There has been a change in spend in eating out, with lunchtime spend down to £7.07 in 2012, from £7.34 in 2011; however, evening dining out has seen an increase in spend to £14.37 from £13.11 previously.
The majority of British adults prefer to either maintain a healthy lifestyle when eating out, or at least try to, with 57% claiming that this influences their eating out behaviour. There has been a decline in the desire to see calories on menus, with only 31% of consumers stating that the provision of calorie information would influence their meal choice.
The Informal eating out market is forecast to grow from £52bn to £65bn by 2017 with a CAGR of 4.9%. This is reinforced by Allegra's prediction that consumer spending will rise alongside increased average earnings and a further drop in inflation, in the short term, fuelling sales growth of the informal eating out market in 2013 of 3.6%.
Source: Allegra Strategies