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

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

Posted by Emma on 22nd Feb 2024

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.

UBER Eats Delivery Cyclist Riding Through a Busy Oxford Road in Manchester shopblocks, CC BY 2.0, via Wikimedia Commons

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.

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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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