UK foodservice industry is returning to growth helped by menu and brand innovation

Consumers’ average spend on eating now stands at £13.80 with 72% of adults regularly eating out and food and drink sales for the eating out sector rose to £42.8bn in 2011. Horizons believes the industry is in a “strong position” to emerge from the downturn as expendable income increases.

The casual dining sector is set for the highest growth as it targets consumers at the £10-£20 point with pub restaurants, healthy eating concepts and coffee shops also doing well.

Other factors responsible for the bounce-back include the innovation of outlets and menus. However, managing director Peter Backman warned that continued investment and understanding customers are necessities.

“There is now some excitement in the market and sales are likely to grow by at least 1% over the next 18 months,” Backman told delegates at a Horizons’ Breakfast Briefing at London’s Armourers’ Hall.

“By the end of this year they will return to 2006 levels, and by 2013 they will get back to 2008 levels. The signs are that things are beginning to level out — the population is growing, particularly among the restaurant-using over-40s, and employment is starting to rise. This is all good news for a sector that has performed better than the retail sector and emerged fairly unscathed from the downturn.”

Director of services Paul Backman added: “The challenge to the industry is to start to understand the consumer better – who they are, what they want and when they want it. Loyalty cards and voucher schemes offer the opportunity to find out much more about the customer.”