Food and drink sales up in first quarter
Sales in the second quarter are expected to rise by 2.1% on the previous year and reach £12.4bn, it added.
However, Horizons managing director Peter Backman alluded to a slow in foodservice sales by the end of the year. As a result, full-year sales would grow by just 1.8% compared with 2015.
‘Consumer research shows’
Key figures:
- £10.8m in Q1 sales
- 2.3% YOY rise
- 2.1% sales rise in Q2
- £14.07 average consumer spend
- 70% of operators expect food sales to rise
He said: “Our consumer research shows that frequency of eating out is now at 2.04 times in a two-week period, although the average spend is down to £14.07.
“Brexit and the national minimum wage are both causing uncertainty, but UK operators have already proved how versatile and adaptable they can be by embracing new food trends and keeping consumers dining out. The fact there was growth in quarter one demonstrates this resilience.”
Roughly two thirds of operators asked in a recent survey by Horizons said food sales had increased year-on-year.
Yet, a smaller proportion of operators reported growth in sales when compared with the previous year.
Food operators asked
In a 12-month period, 70% of operators asked expected food sales to rise.
Horizons analyst Liz Land said: “Having recovered from the economic downturn, the eating-out market is now levelling out and growth is likely to be much more conservative – illustrated by the declining number of operators still expected to see sales growth.
“Feedback from the market suggests that consumers are still being cautious over spending. This demonstrates the need for operators to keep their practices competitive,” added Land.
