​Sustained Growth in the Delivery and Takeaway Industry Amid Economic Challenges

The delivery and takeaway sector in the UK's top-managed restaurant groups has seen a 4% increase in sales compared to January 2023, according to the latest Hospitality at Home Tracker by CGA by NIQ. This marks the eighth month of consistent like-for-like growth, improving upon a 1% increase in December 2023. Despite this upward trend, growth has decelerated recently, with year-over-year gains not surpassing the current 4% inflation rate, as indicated by the Consumer Prices Index, since September.

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The report highlights that January's growth was primarily driven by higher delivery sales and increased pricing rather than takeaway services or the volume of orders. Specifically, delivery sales were up 7% from January 2023, whereas takeaway and click-and-collect revenues saw a 5% decline. Moreover, there was a 2% drop in combined order numbers year-over-year.

Deliveries now represent 11% of every pound spent with restaurant groups, with takeaways contributing 4%and dine-in services accounting for 85%, as per CGA by NIQ's findings.

Karl Chessell, a director at CGA by NIQ, commented, " While a 4% growth rate might not seem extraordinary, the consistent year-on-year increases over the past eight months signal a stable period for the delivery and takeaway sector." He added, "Maintaining profitability, especially through third-party platforms, continues to be challenging. However, this stability in the at-home and dine-in sales mix is aiding restaurant groups in planning their operations more confidently. The hope is that the recent disruptions caused by staff strikes at major delivery services will not have a lasting impact on order volumes."

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