Delivery to account for a greater share of consumer meals post Coronavirus

By James McAllister

- Last updated on GMT

Foodservice delivery market to account for a greater share of consumer meals post Coronavirus

Related tags: Lumina Intelligence, delivery, Coronavirus

Increased consumer exposure during lockdown is set to provide a 'long-lasting boost' to the foodservice delivery market, according to Lumina Intelligence’s new Foodservice Delivery Market Report Update 2020.

Prior to the Coronavirus pandemic, delivery accounted for one meal per consumer per month on average.

However, during lockdown this increased to five meals per month as consumers turned to foodservice delivery to fill the void of not being able to eat out.

Despite the UK having now moved out of lockdown and the hospitality sector reopening, foodservice delivery continues to account for three meals per consumer per month.

According to the report, increased exposure to foodservice delivery during lockdown and increased interaction with apps will provide a long-lasting boost to foodservice delivery in the future.

For consumers not engaging with foodservice delivery, the main barrier was price (24%), and as the UK officially enters a recession price is set to play a more defining role with consumers looking to tighten their belts and cut back on discretionary spend.

In fact, the report shows that 63% of consumers are actively trying to save money.

"When the UK first entered lockdown, demand for foodservice delivery outstripped supply, with major players completely closing their operations.

"At the end of March only 19% of operators were offering a delivery and/or collection service. However, throughout lockdown many nationwide operators became delivery/takeaway only and smaller operators introduced delivery for the first time.

"This saw foodservice delivery’s share of total meals grow five-fold.

“With the UK moving out of lockdown and the hospitality sector reopening, foodservice delivery penetration will regress.

"However, the enhancement of technology and increased exposure to the channel during lockdown will result in a long-term boost for the market.

"Price remains a key barrier to entry, but those operators that demonstrate value for money are set to reap the rewards of increased demand.”

Related topics: Trends & Reports

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