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Growth in foodservice predicted to be driven by burgers and delivery bikes

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Growth in foodservice predicted to be driven by burgers and delivery bikes

The foodservice industry is predicted to continue its growth into the next two years, driven by breakfast, lunch and burgers.

According to the NPD Group’s Foodservice Industry Outlook, the UK foodservice industry could grow by an additional 83 million visits in 2018 and by 93 million in 2019 (up 0.7% and 0.8% a year respectively), despite pressure on wage growth and rising inflation.

It predicts that this growth would be driven by the expansion of delivery services and the popularity of dining out for breakfast and lunch.

As delivery firms expand their reach across the country, NPD is predicting an additional spend of £656m (up 17%) by consumers on delivery orders by 2019.

This will offset the drop in dinner visits, which will remain the most expensive day-part but by the end of 2019 is predicted to decline by 5% compared with 2016, representing 134 million visits.

By contrast breakfast (which currently represents more than one in eight of the 11.36 billion OOH visits expected by the end of 2017) is expected to grow by 5.7% in 2018 and 4.8% in 2019, while lunch will remain the largest daypart and is forecast to grow by 2.2% and 1.9% in 2018 and 2019 respectively.

NPD Group foodservice director Cyril Lavenant said: “Delivery shows no signs of running out of steam over the next two years and will help to bring home the bacon in Britain’s £55b foodservice industry.

“Burgers, casual dining, breakfast and lunch are also thriving and should help operators shrug off fragile consumer confidence, as well as inflation and stagnant wages, to achieve growth. We are especially bullish about burger chains and casual dining as these restaurants are meeting the consumer’s appetite for a contemporary experience that also offers a family-oriented treat.

“Regardless of a soft Brexit or a hard Brexit, any foodservice operator that invests for the future, and gives consumers the value, product quality and service quality they want, can look forward to growing their business in 2018 and 2019.”

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