Meal deals 'may have peaked'

NPD said visits including by deals decreased by 1% during the final quarter of 2014, compared to the 6% recorded at the tail end of 2013.

Meanwhile non-deal visits grew by 2% in the final quarter of 2014 compared to 0.3% for the same period in 2013. It comes as the latest voucher tracker from Horizons shows usage falling steadily over the past five years. NPD’s research showed that pubs are the most common users of meal deals, making up 32%, followed by quick service restaurants at 27% and full service restaurants at 22%.

The group said: “Despite deals driving growth in the QSR and overall foodservice market over the past three years in particular, the final quarter of 2014 saw a decline in deals. With a deal rate approaching 30% of all visits and younger shoppers using deals in up to 36% of their visits, can traditional promotions continue to grow? Or will Q4 2014 performance continue?”

Horizons said the use of vouchers peaked after Christmas but has since continued to decline.

Managing director Peter Backman said: “The figures show the declining nature of voucher offerings. With the use of technology and gathering of customer data it has become apparent that vouchers are not necessarily offered to the masses but are now becoming more tailored to the individual i.e. birthday offers of bottles of bubbles. The use of Facebook and Twitter has also increased as a means of driving customers to specific outlets.

“I think the customer has become more ‘offer’ savvy as well, one would simply never eat at Pizza Express and pay full price as there is always an offer being run (speaking from experience, 25% off food currently, or their usual 3 courses for £12).

“Across the board from national outlets to independent traders customer loyalty schemes are becoming increasingly popular. McDonalds, for example offer a free coffee after six have been drunk and also run competitions to ensure further brand loyalty and drive frequency of visits.

“We only track vouchers on a monthly basis but I also believe that there are more time specific vouchers being offered i.e. Pizza Express 25% off is only valid after 5pm Monday, all day Tuesday-Thursday and after 5pm Sunday. Pizza Express is also one restaurant which has teamed up with Tesco’s to offer clubcard voucher deals (others include ASK, Café Rouge, Zizzi). “I don’t think that voucher usage will ever die out but the nature of the offer has changed.”