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Foodservice 2022 C
Foodservice 2022 C
Dining out
at home
How meal delivery
is transforming Foodservice
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Foodservice:
An industry with
a lot on its plate
After a tumultuous couple of years,
has the industry fully recovered?
A sigh of relief
for the industry
After years of disruption with government general, we are going back to our ‘normal’ capitalising on consumers’ desire for ease and
enforced closures across the globe, and habits rather quickly, across the OOH offering affordability in an increasingly tough
consumer anxiety about gathering in a public landscape, from fast food chains right through financial landscape. And with over 50% of
place, the Foodservice industry is finally seeing to sit down dinners. foodservice occasions now not taking place
some true signs of recovery. But the industry’s on-premises, it’s clear there has been a
story is far from straightforward, with brands Globally, total food occasions are up by 33% noticeable shift away from OOH consumption
having to navigate rapidly transforming versus a year ago – across all channels. This is to immediately available freshly prepared food,
consumer expectations on how, when and brilliant news for the industry. regardless of where we eat. We see delivery
where we eat. winning out as a way to offer consumers
But as this report unpicks, growth is not equal ultimate convenience – and we see how
Restaurants are the perfect get-together for across every channel. Some channels, such as aggregators are changing the landscape for
consumers after a long period of isolation. In Quick Service Restaurants do particularly well, our food delivery future.
general, we are going back to our ‘normal’ capitalising on consumers’ desire for ease and
We are seeing recovery across all regions. It is impacting how we are consuming food in an
at its highest in Mexico, at 64% growth OOH setting.
followed by Brazil and Portugal at 54%.
Something important to note, however, is that Across the board, brands are having to diversify
the countries have kept the same ranking as how they entice consumers back to
last year, which indicates that growth has been foodservice. Focusing on in-person dining in
fairly consistent across all markets. isolation is no longer cutting the mustard, and
outlets are finding new strategies to rebound
But there are now new pressures facing the towards pre-pandemic revenue levels. But who
industry. Inflation is high around the globe, with is winning out in the new normal of
headlines referring to the cost-of-living crisis foodservice?
and economic hardship. Naturally, this is
impacting how we are consuming food in an
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Shifting service
and transforming
tastes
As people across the world embrace
in-person dining again, how has
foodservice evolved to meet demand?
Gastronomy But this year has been a cause for optimism in
the sector. There has been a real bounce back in
But in spite of this, 47% of foodservice
occasions happened on-premises this year, up
Since the pandemic, how and where we choose With global efforts to limit human contact, we While the foodservice landscape indicates a
to eat has changed significantly. Foodservice saw an undeniable surge in consumers healthy appetite for on-premises dining, local
businesses have had to adapt to years of choosing collected or delivered meals last year. nuances across Latin America, Europe and Asia
government restrictions and changing And this trend is only set to continue, with 22% show that different markets are responding to
consumer priorities to keep pace and remain of foodservice occasions being collected meals, post-pandemic recovery with their own
competitive. and 31% being delivered in 2022. distinctive flavour.
In Latin America, consumers are showing a clear
preference for delivery service and eating in with Case study: the European equation
each occupying 39% (78% in total) of foodservice The verdict is in for foodservice in Europe this year. On premises dining is back, and it has
occasions in the region. In contrast, the European proven to be overwhelmingly popular across the region. But the story of which outlets
foodservice industry still heavily relies on consumers are choosing to purchase from is far less uniform, and our country breakdown
traditional on-premise dining, with eating in suggests that businesses looking to grow in Europe must be specific in terms of where they
accounting for 59% of dining occasions. choose to set up shop.
With a strong heritage of bar and café culture,
there is a clear appetite for dine-in environments Local habits across Europe depict an increasingly varied channel landscape for foodservice
in Europe and these will remain a key area for providers. While the continent-wide picture indicates 30% of spend happens in bars,
brands to harness in their growth strategies. The cafés, and coffee shops, this accounts for only 9% of foodservice spend in France. With a
Asian markets offer a more balanced foodservice strong pub culture, it’s also unsurprising to see 36% of spending happening in similar spaces
model, with eating in (34%) and delivery (36%) in the UK.
only slightly outweighing collected food (30%).
But Full Service Restaurants (FSR) have also had a strong year with 37% of spend occurring in
It’s clear that foodservice is transforming across the these outlets in Spain; and in France nearly half (49%).
world at pace. Across all markets, new models and
platforms are changing how and when people
engage with the service industry. Outlets and
providers will have to look beyond traditional eat in
only models, even if it plays a key role in their
offerings.
The first thing to mention is that QSRs growth Post-COVID, it is clear that OOH eating habits
may be due to it being one of the most affordable have changed. Consumers are back eating in
channels. Amidst rising inflation around the the OOH space, but there is a shift in priorities;
globe, QSRs offers a lower cost meal option. they are putting weekend meals on-premise
first, but are opting for the more affordable
As you can see from the data, QSRs have seen a channel of QSR. For QSR brands looking to
7% increase in buyers. But this is not where we capitalise on the trend, it will be fruitful to
see most of the channel’s growth. We are seeing extend the menu choice to include more
that the channel has seen buyers spending affordable ranges. As the cost of living becomes
more – with an increase of 25% per trip. an increasing concern amongst consumers,
brands who keep pace and develop discounts
and promotions will ultimately win out.
Close to home: where QSRs are deterred from their usual on-premise With QSR we see an entirely different story. For a
seeing the most growth consumption due to anxieties around catching start, it is the only channel that has seen value
Covid in environments with larger groups, and growth (vs 2019) – and steep growth at that
When we compare the different restaurant many restaurants and coffee shops closed due (21%).
types over the three-year period in Western to government enforced lockdowns in the Pre-pandemic, the channel already had a
Europe, we see two different stories. period. With 2022’s ‘return to normal’, we higher share of value coming from delivery and
generally see consumers migrating back to collection pre-pandemic, meaning QSRs were
best-prepared for the disruption COVID would
cause. The channel saw growth in delivery and
collection during this time to a far greater
degree than the other channels, and in 2022 off
the back of the pandemic, that continues to be
the story. Food delivery and collection
contributes to two thirds of the total QSR
revenue.
The demand
for delivery
After two years of
pandemic-induced growth,
delivery services are
showing no sign of
slowing down.
An order
of optimism
We have already outlined the welcome return While the surge in ordering delivered meals in In fact, meal delivery services have added
to in-person dining in many regions, but the 2020 and 2021 may have seemed like a flash- new buyers everywhere in the world
story of booming delivery services is also cause in-the-pan increase because of covid compared to 2020 levels.
for cautious optimism for brands this year. restrictions, our 2022 data has shown that
delivery services are still very much in demand. Areas less reliant on in-person dining such as
In fact, meal delivery services have added Brazil, Thailand, Mainland China, and South
Korea have all seen continuous year-on-year
growth in market penetration for delivery
services and these markets have been largely
unaffected by the lifting of restrictions.
Democratising
deliveries with
aggregators
With convenience and versatility
dominating demands for
delivery services, aggregators
are instrumental in increasing
everyday ordering.
Growing In 2022, we have seen that the market
penetration for aggregator use increase since
We know that promotions are a significant Two case studies from this market of global population citing no delivery fees as
influencer of buyers choosing aggregators, but aggregators tapping into this demand are a motivator to use an aggregator. This
what are the specific benefits people look for Meituan and Eleme. For ¥15/ month, Meituan benefit is perceived as particularly important in
from their delivery platforms? offers broad and comprehensive services the UK, where 60% of delivery service users
beyond simply meal delivery with daily coupons seek no delivery fees on their purchases. As
Discounted ticket prices have a big impact on that can increase in value within a set period of such, we are seeing increased pressure on
purchasing behaviours. Globally, 50% of meal time. As a member of Eleme, for ¥12/ month, operators and aggregators to remove delivery
delivery customers actively look for users can save more than¥20/ month through fees and apply discounted ticket prices in all
discounted items when using aggregators to games and entertainment offerings. regions.
purchase orders. Mainland China is a key
market where this demand appears with 70% Delivery fees are also a major consideration for
of buyers seeking this type of promotion. many consumers, with 45% of the
global population citing no delivery fees as
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A peek into
the future of
Foodservice
With rising costs and a tricky
economic climate ahead,
what will the impact be on
Foodservice going forward?
In our final chapter, we’re going to take a look into the crystal ball of Foodservice, starting
with changes we can expect in the short-term consumer habits changes through to some
longer term, structural changes for the sector more widely.
1. What is 2. Access to
explaining the full survey
meal delivery including
growth in your additional
country of deep dive
interest? questions
Who: Age / SEL / Region What: Full ranking of dishes
When: Moment, day, people ordered in meal delivery
present What makes you decide
How: Ordering method between ordering methods?
Why: Reasons for using Do you use promotions and
what type?
+15 attitudinal statements 1
(disagree) to 5 (agree)
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How meal delivery has OOH recovery drives 8% boost in Out-of-home snacks and drinks
transformed the Foodservice spend on snacks and drink spend is still 8% lower than 2019
industry
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