New research from global information company The NPD Group suggests Britain’s older consumers could support growth in eat-out lunch business in future years.
Hospitality and Catering News reports that there were 1 billion lunch visits out-of-home (OOH) by the over-50 age group for YE June 2017, and this demographic spent £6 billion on lunch over the year.
Compared to YE June 2008, the visits tally is up 6% while total spend is up some 12%. Consumers over 50 can be expected to contribute to the growth of Britain’s food delivery revolution, and could be a catalyst to the development of new food choices that are better suited to the needs of people as they grow elder.
Cyril Lavenant, Foodservice Director UK at the NPD Group, said: “The over-50s demographic in Britain will grow in size and become wealthier, more active and more experimental than previous generations.
For anybody running a business in Britain’s £54 billion food service industry, there’s a distinct ‘over-50s opportunity’.
People in late middle age and older will respond well to the innovative approach we see on Britain’s high streets to lunchtime eating.
The over-50s represent an excellent target for the food service industry and will definitely play a bigger role in the growing popularity of eating lunch out of home.”
Lunch is growing, especially lunch-to-go.
The wider lunch occasion is already growing faster than the overall eat-out market. The 4.0 billion overall lunch visits (both on-premise and off-premise) for YE June 2017 were up 3% on the same period a year earlier.
This compares well to the resilient 1% visit growth seen in the total British OOH food service market in YE June 2017.
But the lunch-to-go segment (food consumed off the premises) is doing even better with 4% growth.
NPD says the growing popularity of eating lunch-on-the-go could generate nearly 2.2 billion visits annually to food service operators by the end of 2019, an increase of 11% over the nearly 2.0 billion visits recorded for YE June 2017.
Lunch-to-go could soon account for 53% of overall lunch visits and 19% of all OOH visits in Britain each year.
Cyril Lavenant, Foodservice Director UK at the NPD Group, added: “Modest or zero wage growth coupled with rising inflation has prompted many consumers to trade down from dinner where we now see declining visits.
Lunch meanwhile has strong appeal because it is affordable, and offers high quality and an enormous choice of formats and cuisines whether it is consumed on or off the premises.
There’s absolutely no doubt that lunch is an increasingly relevant offer for consumers.
Foodservice operators have also made their lunch products more attractive through time-saving technology such as contactless payment and click-and-collect apps.”
The one to watch: click-and-collect
The click-and-collect market is small but growing quickly, accounting for 56 million quick-service restaurant (QSR) visits for YE June 2017, up 25% on the same period a year earlier.
Click-and-collect at lunchtime appeals to consumers because it avoids the extra charge for delivery. The average bill for an OOH lunch in Britain is £3.56 (YE June 2017) but delivery can increase this significantly.
Hunger for innovation
Foodservice operators have shown they fully understand the intense competition in Britain’s food service industry and are disrupting and innovating to win business.
In the lunch market, top retailers and QSR chains, as well as smaller independents, are increasingly responding well to the demand for balanced eating by offering vegetarian and vegan choices, superfoods, organic products, reduced calories and sugar, as well as meat substitutes.
They are also meeting consumer expectations for new tastes and experiences by using foods high in protein, antioxidants and Omega 3.
Britain’s over-50s are welcoming these new opportunities to enjoy balanced eating during lunch away from home.
(Story source: Hospitality and Catering News)
