UK Food Service 2023

Sector Forecast: UK Food Service Sector 2021 - 2023
Published 2021 - Report Highlights

Despite recent market disruption there is still growth in this sector

Competing in the UK food service sector is more challenging than ever, In the short-to-medium term, industry revenue is expected to recover from the difficult economic conditions that stemmed from the UK's exit from the European Union and the COVID-19 (coronavirus) pandemic,

the continual rise in labour costs and shortages, an uncertain climate, shifting customer trends, supply chain issues make for testing times across independents, national and international brands alike. Operators are expected to face higher cost pressures as a result of ongoing increases in the National Living Wage (NLW), the introduction of EU-UK customs checks and the new skill-based immigration system. The high level of industry competition is anticipated to prevent operators from passing on cost increases to consumers.


A new approach to market is required to attract customers and increase profits 

In a climate of depressed consumer discretionary spending, non-cost strategies must be utilised to improve profitability and grow sales share as brand loyalty remains low. In the UK, discounting is being heavily utilised by players looking to increase sales share. 


Riding out the storm 

The current period of extreme volatility is not expected to continue in the long term. The likely appreciation of the value of the British pound will help restaurants recover dampened profit margins, while rising interest rates will slow inflation and discretionary spending will likely recover. 

  

Multiples will shrink but outperform the independents beyond 2023  

Despite these underlying concerns, a significant number of brands have been able to sustain strong growth. Generally, this has been achieved via the development of niche brands targeting a specific cuisine or product line. 


A new approach to market is required to attract customers and increase profits 

In a climate of depressed consumer discretionary spending, non-cost strategies must be utilised to improve profitability and grow sales share as brand loyalty remains low. In the UK, discounting is being heavily utilised by players looking to increase sales share. 


Software in all sectors will change the status quo 

Consumer food service areas continue to adopt a raft of technologies for marketing, profitability and growth purposes. Services such as Deliveroo and Uber Eats have maintained strong growth, with these services now providing up to 30% of revenue for some restaurants. 

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Highly valued analysis & market intelligence
for your sector

Discover the latest market trends and uncover sources of future market growth for the UK Food Service industry with insight from the UK Food Council. 

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis and plan your corporate strategy with our expert qualitative analysis and growth projections. If you're in the Food Service industry, our research will save you time and money while empowering you to make informed, profitable decisions. 

When you purchase this industry sector Insight report, you also get the data and the content from these UK category reports for free: 

  • Home Delivery and Takeaway
  • Casual Dining
  • Consumer Food Service by Location
  • Street Food & Fast Food
  • Full-Service Restaurants
  • Self-service cafeterias

In addition this report includes: 

  • Analysis of key supply-side and demand trends
  • Historic volumes and values, company and brand market shares
  • Five yearforecasts of market trends and market growth 
  • Robust and transparent market research methodology, conducted in-country

Why buy this report? 

Gain competitive intelligence about market leaders 

Track key industry trends, opportunities and threats 

Inform your marketing, brand, strategy and market development, sales and supply functions
 

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