Food sales on the increase, Horizons survey finds

According to the latest Eating Out-Look report, undertaken by Horizons and JRA, 26% of food businesses reported a large increase, with around half said they are serving more meals at the weekend than they did this time a year ago.

The report, which surveys 300 pubs, restaurants, hotels and quick-service operators, showed that 18% of customers are now spending £12 to £16 for a meal – up from 12% a year ago.

It also found that fewer customers are trading down to lower-priced meals – 22% this autumn compared with 33% last year.

At the same time, operators report that the number of customers purchasing food using meal-deals or promotions has dropped to 34%, compared with 41% a year ago.

Average spend​

The proportion of customers spending an average of £6 to £12, meanwhile, has dropped from 24% to 21%.

Those perceived by operators to spend more £25 has risen three percentage points, from 10% to 13% in the same period.

The positive results were also reflected in the 28% of businesses that have increased staff numbers – more than those having to cut staff or freeze wages.

Emma Read, Horizons’ director of marketing and business development, said the survey showed that recovery in the hospitality sector is well under way.

“Our previous operator survey [May 2014] showed that businesses were much more optimistic about future trading, with a third expecting increases in food sales.

“Six months on, their optimism has been proved correct, with the majority of respondents reporting an actual rise in food and drink sales and confidence in the sector even higher.”

Consumer mindset​

Read believed that while the drop in the number of meal-deals might reflect that there are fewer available, it also showed that the consumer mindset is starting to change.

“No longer is price as paramount as it once was – consumer confidence is returning and with that comes a new willingness among diners to treat themselves to a meal out without worrying quite so much about the cost,” she explained.

“A decline in mentions of cost reducing actions illustrates operators’ new-found confidence, as previous surveys have revealed that menu changes and re-negotiation of supplier contracts have been key ways for operators to keep their costs down.”

Of the operators that took part in the survey, nearly 90% expect food sales to increase further over the next 12 months, with a quarter of those expecting large increases, significantly higher than in 2013.

Foodservice boost​

In a separate study, foodservice companies are also reporting positive figures.

According to the Zolfo Cooper Foodservice Growth Report 2014, the sector has continued to produce strong turnover growth and margins are improving.

It found that competition from the high street is driving improvements and innovation across the sector, with brand recognition becoming more important.

It also concluded that foodservice operators are now recognising that it’s not 'just about the food' and diversifying into complementary services such as front-of-house, venues and event management.

Additionally, many are taking advantage of improved trading conditions to invest in their businesses to support future growth.