It continues a plateauing of the ordering-in market that has now seen year-on-year sales drop for 15 months in a row. January’s delivery volumes fell by 12% as some consumers reduced the frequency of their orders, but spent more when they did so.
Nevertheless, delivery and takeaway sales remain substantially ahead of pre-COVID levels, after lockdowns cemented them in consumer habits. Combined, they accounted for 17 pence in every pound spent with managed restaurant groups in January 2023.
Karl Chessell, CGA’s business unit director – hospitality operators and food, EMEA, said: “The levelling out of delivery and takeaway sales since late 2021 has been a double-edged sword for restaurant operators. Positively, it shows that many consumers have returned to their pre-COVID habits, replacing deliveries with the special experiences that only eating out can provide. But it also indicates that other consumers are reining in their spending as household bills continue to soar. With business costs so high as well, and third-party delivery platforms taking a large slice of sales, protecting already thin profit margins will be a major challenge throughout 2023.”
The CGA Hospitality at Home Tracker is the leading source of data and insight for the delivery and takeaway market. It provides monthly reports on the value and volume of sales, with year-on-year comparisons and splits between food and drink revenue. It offers a benchmark by which brands can measure their performance, and participants receive detailed data in return for their contributions.
Partners on the Tracker are: Azzurri Group, Big Table Group, BrewDog, Burger King UK, Byron, Cote, Dishoom, Five Guys, Gaucho Grill, Honest Burgers, Island Poke, Mitchells & Butlers, Nando’s, Pizza Express, Pizza Hut UK, Prezzo, Rosa’s Thai, TGI Fridays UK, The Restaurant Group, Tortilla, Wagamama, Wasabi and YO! Sushi. Anyone interested in joining the Tracker should contact Karen Bantoft at karen.bantoft@cgastrategy.com.
