From restaurants to fast food operations, food service establishments across the UK are set to enhance their food and beverage supply chains to meet an increase in demand across the nation’s Eating Out Market.
This comes after a recent MCA report forecasted the UK Eating Out Market to grow by 1.8% in 2020 to a value of approximately £92.6 billion. This marks an improvement on the growth for 2019 (1.3%), with the growth rate expected to improve further in 2021 (2%) and 2022 (2.1%). With the Brexit process underway with an empowered new government, the pound stronger, and consumer confidence potentially rising positively on the back of this, the market could be expected to grow even further.
As a result, food procurement is becoming an increasingly demanding business element for all food service businesses. Because of this, supply chain management companies are currently working to provide the best food procurement services for the most effective cost savings.
Among these is rapidly-growing Equinoxe Solutions.
“As more and more British people are expected to go searching for the best eating-out experiences at pubs, restaurants and fast food chains, and expecting to get great value, it’s essential for these establishments to keep their food procurement costs down,” said Meikan Perumall, Head of Commercial at Equinoxe Solutions. “This is why we’re always keeping an eye on the latest market and commodity trends, so we can ensure the best supply chain services for our clients at the best possible prices.”
With Eating Out demand set to increase year on year despite supply chain costs being affected by the current political climate, foodservice businesses are seeking assistance from businesses, like Equinoxe, with industry insight in order to give them a competitive edge. This means it’s more important than ever for procurement service providers to have their fingers on the pulse of Brexit and the numerous market shifts it causes.
In response to this issue, Equinoxe recently enlisted the help of foodservice market insights specialist Simon Stenning. With a vast network of connections, Simon has worked with the likes of Hilton, Albert Roux and Pret a Manger.
One particular food service sector which is becoming increasingly competitive is the Travel Hub Food Service Market. A report by global information company NPG Group shows the Travel Hub Food Service Market is now worth an estimated £2.75 billion, with consumer spend up 11% in the past year – this includes airports, train stations and roadside service stations.
This increase in business is likely due, at least in part, to the uncertainty of international travel conditions caused by Brexit. In other words, UK residents are now more inclined to stick to national holidaying, thus increasing the amount of motorway travel and roadside stops. There are other benefits from this change in behavior, with the whole Leisure sector set to grow substantially, supported additionally by the UK’s ageing population who will spend more of their free time and money on leisure-related activities.
So, there are significant opportunities for growth in the UK food service market, yet it will remain highly competitive; delivering great value will be critical and therefore reviewing costs in all food and beverage procurement should be a top priority. With improved food margins, operators can concentrate on delivering great service, ensuring that they can exceed consumer expectations and make the most out of the future growth opportunities.