40% increase in food delivery spend could see it total £7.1 Billion in 2020
/In Britain’s out-of-home foodservice industry delivery is up 14% in visit terms to 804 million and has seen a 40% increase in spend to £5.7 billion, research by the NPD Group reveals, comparing the January-to-October period this year with the same period in 2019.
On current trends delivery could finish 2020 with visits in the 12 months up 16% to break the 1 billion barrier and reach 1.1bn visits with spend projected up by 42% at £7.1 billion. That would be the equivalent of a 12 million monthly increase in visits versus 2019 and a £177 million monthly boost to spend.
Dominic Allport, Insights Directer at NPD Group said “Delivery is the silver lining in the otherwise very black cloud that hangs over Britain’s foodservice sector and has been the standout performer in 2020. Delivery spend peaked in July at 51% above pre-COVID-19 levels but this trailed off as foodservice operators re-opened and with the August Eat-Out-to-Help-Out scheme. It’s now rising again amid the return to stricter lockdown rules and we expect it to see further success in the colder winter months and on into 2021. While the delivery channel is often seen as a threat by some operators, during the COVID-19 crisis it is bringing valuable business to many outlets that are otherwise facing the severest business challenges, and helping to feed a nation locked down in their homes.”
Britons still very much value eating out in restaurants, with 50% saying they prefer to dine out or get a takeaway from a restaurant when spending time with friends. Almost six in 10 (58%) say they choose restaurants to eat ‘something special’. This bodes well for the sector, providing hope for when it begins to reopen and recover from the pandemic.