The Greggs Phenomenon: Dominating UK's Hospitality Spending
Posted by Emma on 20th Dec 2023
In a detailed analysis by Hospitality Data Insights (HDI), Greggs has been identified as a leading force in the UK hospitality sector. HDI's research, which delves into various sector areas such as pubs, bars, delivery services, and coffee and sandwich shops, highlights the significant shift in consumer habits over the past four years.
HDI's Business Development Director Mark Bentley praised Greggs for its impressive performance. "Greggs has become a beacon in the bricks and mortar landscape, capturing almost £2 for every £100 spent in UK hospitality," he said. This figure has risen from £1.60 in previous years. Bentley also acknowledged other sector winners like Loungers and Craft Union, emphasizing the importance of understanding customer needs and local market tailoring as key success factors.
HDI's study, covering 10.2 million people's spending in the hospitality sector, revealed intriguing trends. Delivery services have surged to 12.5% of total sales, a significant leap from their 6.5% pre-pandemic share in 2019. Coffee and sandwich shops also increased, now holding 12.7% of the market.
"The landscape of UK hospitality has been turbulent, facing challenges from the pandemic to economic pressures," Bentley noted. Despite these obstacles, he remains optimistic about the sector's stability in 2024, emphasizing the importance of strategic planning for future challenges.
Further supporting Greggs' popularity, data from digital bank Monzo highlights its dominance in the North East. Contrary to the national trend of McDonald's being the top choice for eating out, Sunderland and Newcastle residents prefer Greggs. Additionally, Monzo's data indicates Greggs' nationwide appeal, being the favoured lunchtime spot in all regions except London.
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