Foodservice market drops by 13%

The credit crunch has caused the foodservice market to decline 13% to £29.3 billion according to new QuickBite data but the report stresses that it isn't all bad news and there are some foodservice winners.

The bottom end of the market, which sees consumers spend on average £5 for a meal has felt the biggest pinch according to the figures.

Fast food outlets, workplace meals, coffee shops, sandwich bars and bakeries which 18 months ago accounted for 40% of the market now account for 34%.

The premium casual segment, covering gastropubs, upmarket country inns and speciality restaurants such as Loch Fyne saw double digit growth as consumer tastes shifted from mainstream restaurants to more specialised eateries.

Chinese food was the other surprise winner overtaking pub food as the most popular out-of-home meal. Market value topped $5 billion with particular growth in Chinese takeaways as consumers switch from pub meals to eating at home.

The report from QuickBites paid particular attention to pubs and their well-documented decline.

It said pubs have lost "significant ground in the value segment (£5-£11)" and major branded restaurant chains were now their biggest competition, with added pressure from 'two for one' deals.

But the data showed that customers in the 55-64 age group who have turned their backs on the local pub have had the greatest effect on trade.

David Humphreys, from QuickBite described the outlook for the eating out market: "Because of its heavy dependence on discretionary expenditure the eating out market is very sensitive to consumer disposable spend. 

"It can thus act as a lead indicator of the consumer economy, so the surprising uplift in September's out of home meal volume compared to September last year, poses the question 'has the market bottomed out?'."

Words: Clare Riley

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