The ‘out of home’ food sector has surged to new heights, surpassing pre-pandemic levels and reaching a remarkable market value of £9.3 billion in 2023. This surge in growth can be attributed to changing lifestyles, urbanisation, and the allure of diverse cuisines and convenient food delivery services.
However, with rising costs and evolving consumer preferences, businesses in this sector must stay adaptable and prioritise quality while adhering to health and safety regulations. Success lies in understanding consumer behaviours and overcoming the challenges that lie ahead.
Record-breaking Market Value
The ‘out of home’ food sector has achieved a record-breaking market value of £9.3 billion in 2023, surpassing pre-pandemic levels. This significant milestone marks the first time the sector has exceeded its value before the global health crisis.
Despite facing numerous challenges since the start of the decade, the sector has experienced nearly 13% growth in value this year. Factors such as changing lifestyles, busy schedules, urbanisation, and the rise of dual-income households have contributed to the sector’s expansion.
The availability of a wide range of cuisines and dining options, along with the convenience of food delivery services and online ordering platforms, has also attracted consumers to eat out more frequently. Additionally, the trend of socialising and dining out with friends and family has further fuelled the sector’s growth.
Factors Driving Sector Growth
Factors contributing to the growth of the ‘out of home’ food sector include changing lifestyles, urbanisation, and the increasing demand for convenient dining options.
In today’s fast-paced world, people have busier schedules and are looking for quick and ready-to-eat meals. The rise of urbanisation and dual-income households has also played a significant role in driving the sector’s growth.
Additionally, the availability of a wide range of cuisines and dining options has attracted consumers to eat out more frequently. The convenience of food delivery services and online ordering platforms has further facilitated access to ‘out of home’ food.
Moreover, the trend of socialising and dining out with friends and family has contributed to the sector’s expansion.
These factors collectively contribute to the continuous growth of the ‘out of home’ food sector.
Consumer Attitudes and Behaviours
Consumer attitudes and behaviours towards eating out have been significantly affected by the increasing costs and changing dynamics of the ‘out of home’ food sector. Research conducted in Ireland, the UK, and Germany has shown that dining out is now considered more costly.
In Ireland, 86% of respondents believe that dining out has become too expensive for regular occasions, while in the UK, 78% of participants share the same view. Consequently, consumers are increasingly choosing to eat out only for special events such as birthdays and reunions.
To remain within their budget, consumers are selecting less expensive and smaller dishes, and either removing or sharing the cost of certain courses. These shifting attitudes have resulted in a decrease in spontaneous eating out and a greater focus on getting value for money, quality, and consistency in the dining experience.
Challenges Faced by the Industry
Amidst the record growth of the ‘out of home’ food sector, there are several challenges that the industry must face.
Cost inflation, driven by the cost of goods and other input prices, is increasing the cost of eating out. Service providers are passing on higher costs to consumers, who expect consistent value and quality to justify the price increases.
Spontaneous eating out is being eliminated, and consumers are choosing to eat out for special occasions. Rising food costs and overhead expenses present challenges to businesses operating in this sector.
Furthermore, maintaining consistent quality and customer satisfaction is crucial for success. Adapting to changing consumer preferences and dietary trends is necessary to remain relevant in the market.
Meeting health and safety regulations and maintaining hygiene standards is also essential for the sector’s reputation.
Strategies for Success in the Sector
To achieve success in the ‘out of home’ food sector, implementing effective strategies is crucial.
With the sector experiencing significant growth and surpassing pre-pandemic levels, businesses must navigate the challenges and capitalise on the opportunities presented.
One key strategy is to adapt to changing consumer preferences and dietary trends. By offering a diverse range of cuisines and catering to various dietary restrictions, businesses can attract a wider customer base.
Additionally, maintaining consistent quality and customer satisfaction is essential. This can be achieved by closely monitoring food costs, managing overhead expenses, and ensuring compliance with health and safety regulations.
Furthermore, enhancing the overall dining experience can set businesses apart from their competitors. By providing premium experiences, incorporating innovative technologies, and creating unique dining environments, establishments can attract consumers seeking memorable and enjoyable dining experiences.
Conclusion
In conclusion, the ‘out of home’ food sector has experienced significant growth, surpassing pre-pandemic levels and reaching a record value of £9.3 billion in 2023. This growth can be attributed to factors such as changing lifestyles, urbanisation, and the availability of diverse cuisines and convenient food delivery services. However, rising costs and maintaining quality pose challenges for businesses in the sector.
Despite these challenges, the sector continues to adapt to consumer preferences and adhere to health and safety regulations, ensuring its continued success.
One interesting statistic is that the sector has seen nearly 13% growth in value this year alone, showcasing its resilience and ability to recover from the impact of the pandemic.
