THE UK’S foodservice sector is predicted to grow to £56.3bn by 2019, according to industry consultancy Horizons.
Speaking at Horizon’s Annual Briefing, Peter Backman, managing director of Horizons, revealed that this growth will be a result of rising household consumption, increasing national wages and falling unemployment.
The UK’s foodservice sector has already experienced significant growth in recent years; in 2014 the value of the foodservice sector saw a growth (including inflation) of 3.8%, with real growth at 2.9%, giving it a current value of £46.6bn.
Backman said: “More robust levels of consumer consumption have been prompted by the fact people are now less exposed to high levels of borrowing, are more certain of their jobs, and are buoyed by low inflation.”
Backman added that margins are improving, giving operators’ money to invest, which is evident in a number of businesses changing hands, rebranding or expanding.
“This is great news for the eating out sector – and while it’s not racing ahead, it is growing at a higher level than we have seen since before the economic downturn.
“Overall things are looking good for the UK’s foodservice market with group operators driving much of that growth, in particular pizza delivery outlets, managed branded pubs, pub restaurants and coffee shops.” Backman continued.
Horizon’s Annual Briefing also highlighted other trends that are contributing to this financial growth within the sector. This includes an increase in average spending, consumers eating out more, and a rise in the availability of global cuisines and specialist menus.
Backman concluded the discussion with some advice for operators: “Keep in touch with the way people are eating out now and the products they want – the market is changing all the time and if you don’t offer what they want, someone else will.”