Bidfood’s Catherine Hinchcliff: My top takeaways

Bidfood’s Head of Insight shares her thoughts on the current state of the eating-out sector and five opportunities we shouldn’t overlook

Having battled rising costs, sluggish demand, tight purse strings and skill shortages, no one would argue that the hospitality sector hasn’t endured a turbulent 12 months.

While growth is predicted, it is forecast between 2.8% and 3.7% for 2024, barely ahead of inflation, but the Bank of England expects this to ‘increase slightly’ in the second half of the year.

However, as the UK officially exits recession, inflation slows and we have a long-awaited cut in interest rates, is now the time to spot the green shoots? Well, I have been monitoring some of the key out-of-home research agencies lately to identify just five of the key opportunities for the eating-out sector in the coming months.

1

Consumer confidence is improving but it is still fragile and highly susceptible to bad news. Consumers are cautious with their spending so value remains key with promotions, deals and loyalty schemes the name of the game. Low-ticket sectors such as quick-service retail have been growing, as well as lunch, ‘on the go’, drinks-only occasions and inexpensive treats.

2

Businesses serving an on-the-go offer are thriving as consumers return to workplaces, use public transport and travel more.

3

Customer demand for experience, escape, adventure and indulgence continues to rise with plenty of investment in transport hubs, expansion of managed estates, technology that focuses on frictionless transactions, and in design and décor to elevate the consumer journey and experience, which will drive footfall and spend.

4

As the UK gradually shifts to an older demographic, reflect this in your offer. By 2026, the Office of National Statistics is predicting the growth of 15 to 29 year olds (+2.2%) and an incredible 7% increase in those aged 75 and over. Research from Lumina Intelligence’s Eating and Drinking Out Panel data suggests that older consumers are still returning to the out-of- home sector since the pandemic, and the most engaged group in eating out (aged 25 to 34) have bounced back.

5

Whether you’re talking the on-trade, coffee shops or on the go, non-drinking remains a growth opportunity with those aged 18 to 24 most likely to look for non-alcoholic alternatives, and those aged 25 to 34 choosing health-conscious options.

For more information, visit Bidfood’s blog: bidfood.co.uk/blog

Bidfood Catherine Hinchcliff Foodservice insight Lumina Intelligence