Why there’s never been a better time to start up in the UK restaurant industry
The UK’s restaurant scene is booming, thanks in no small part to the growing trend for home delivered restaurant food
The UK boasts a burgeoning restaurant industry, with delivery services alone worth an estimated £3.6 billion. But the latest trends indicate Britons prefer home deliveries…
The eateries and restaurants that peppered the high-end London social scene, replete with in-house diners, are morphing into something entirely different. Now, Britons are joining their American counterparts who prefer the comfort and convenience of home delivered foods from their favourite haunts.
Eating in: The new eating out
UK restaurants have cottoned on to this novel concept, and they are cashing in with companies like Just Eat and Deliveroo. Take out is proving to be a real money spinner for the UK food industry. Consider this astonishing statistic: Food to go outpaced in-house dining by a factor of 10 in 2016. Driving this phenomenal new trend is the Internet of things (IoT), courtesy of food delivery apps.
Research into the UK restaurant sector conducted by the NPD Group found that some 599 million visitors used the UK food delivery sector in 2016. Compare that to the negligible increase in visits to UK restaurants of just +1% for the year. All in all, delivery of food in the UK increased by an astonishing 6% year on year in 2016, and 50% more than the figures posted in 2008.
Clearly, consumer tastes have changed. It appears that Britons are enjoying the high-quality taste sensations of their favourite restaurants much more in the comforts of their own homes. Incidentally, UK pubs account for just 4% of the burgeoning UK delivery market, but their overall visits increased by almost 60% year on year in 2016.
Delivery Services driving growth
Several notable delivery companies have emerged in the UK, including Deliveroo which now operates in 12 countries, across 120 cities. In 2016, the company reported orders growth of 650%, comprised of a 34% spike in healthy food orders, 20% uptick in Monday deliveries and lunch orders, and an overall increase of 10% in deliveries Monday through Wednesday.
Many UK restaurants and eateries are now part of this multinational delivery service, including Ottolenghi, Five Guys and Pizza Pilgrims. According to figures released in March, the weekly consumption of fast food meals is 22 million, with 79 million ready-made meals consumed by UK adults. The demographic most likely to opt for delivery is the 18-24 age group.
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UK consumers have an insatiable appetite for new tastes
Of course, the rapid growth of the UK restaurant industry is the nectar that woos new entrants into the market. While many feel that the market is already saturated, the UK has an insatiable appetite for new taste sensations.
Foremost among the challenges encountered by new restaurants, eateries and pubs are well-equipped kitchens, qualified chefs and wait staff, and the right location. London is the epicentre of the UK food boom. Many entrepreneurs and restaurateurs find it challenging to locate a kitchen to rent in London, but there are many options available.
Companies like the UK’s Foodstars are delivering unbeatable kitchen options to a wide range of members. These include: restaurants, retail, catering & events. These kitchens for rent cover the full spectrum and are proving to be highly desirable
Home delivery can fuel restaurant revenue
With the right food, the home delivery market is an added benefit for restaurants, pubs and local eateries. Consider that the NPD Group case study found that the average bill for delivered food was just £1 less than an in-house dining experience.
This is a remarkable statistic, and one which paves the way for more patrons and more restaurants to seek the home delivery option above battling the traffic and waiting in line to eat a sumptuous meal. Local dishes such as Greek food, Italian food or Indian food are noticeably cheaper when the delivery option is selected over the in-house dining experience. In some cases, the savings are as much as 40%.