United Kingdom Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The United Kingdom Foodservice Market is Segmented by Type (Full-service Restaurants, Quick-service Restaurants, Street Stalls and Kiosks, Cafes and Bars, 100% Home Delivery Restaurants) and Structure (Independent Consumer Foodservice and Chained Consumer Foodservice). The report offers market size and forecasts in value (USD million) for the above segments.

Market Snapshot

Snapshot
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 3.02 %

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Market Overview

The United Kingdom foodservice market is projected to register a CAGR of 3.02% during the forecast period, 2021-2026.

There has been a definite impact of the coronavirus outbreak on the overall foodservice business, with various segments being affected in varying degrees in the United Kingdom. The COVID-19 pandemic has placed unprecedented stresses on food supply chains, with bottlenecks in farm labor, processing, transport, and logistics, as well as momentous shifts in demand. Lockdown resulted in the closure of all pubs, cafes, and restaurants in the country. During this time, the entire industry came to a complete halt; however, some restaurants remained open for delivery and takeaway. To address the lockdown hit to the industry, the UK government implemented an initiative to help the restaurant industry, the Eat Out to Help Out scheme, in August 2020, following the first COVID-19 lockdown. During the month of August, diners in participating restaurants received a 50% discount on food items, up to GBP 10, purchased in restaurants, pubs, and cafes. Such factors are likely to change the market scenario in the coming years.

British consumers dine out more frequently, as solo dining is one of the ongoing trends, reflecting the busy and hectic lifestyle of consumers. In 2016, the restaurant booking site, OpenTable, claimed that the number of bookings for dinners-for-one increased by 110% over 2014-2016. The foodservice operators are benefiting from a dynamic and expanding corporate sector in areas like full-service dining, among other sectors.

The increasing frequency of restaurants offering various ethnic foods, such as Asian, American, Chinese, Japanese, and Thai cuisines, is the major factor driving the market in independent outlets among consumers. Furthermore, the increasing number of quick-service restaurants, such as KFC, McDonald’s, Pizza Hut, Domino’s, and others, have captured maximum consumer attention from consumers looking for convenience in their everyday meal requirements.​

Scope of the Report

Foodservice defines those businesses, institutions, and companies responsible for any meal prepared outside the home. The United Kingdom foodservice market is segmented by type and structure. By type, the market is segmented into full-service restaurants, quick-service restaurants, street stalls and kiosks, cafes and bars, and 100% home delivery restaurants. By structure, the market is segmented into independent and chained. Cafes and bars is the dominant segment due to the country’s strong café culture, which has resulted in an increasing number of cafes and bars. This trend is expected to continue throughout the forecast period. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Type
Full-service Restaurants
Quick-service Restaurants
Street Stalls and Kiosks
Cafes and Bars
100% Home Delivery Restaurants
By Structure
Independent Consumer Foodservice
Chained Consumer Foodservice

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Key Market Trends

Cafes and Bars Hold a Significant Share in the Market

The country’s strong café culture has resulted in an increasing number of cafe and bar establishments every year. In 2017, about 1,215 café stores were opened, with more than three cafes opening per day on average across the country. The increasing number of cafes and bars includes a blend of non-specialists, independents, and major chains, such as Starbucks, Costa Coffee, and Caffe Nero, thus meeting the consumers’ demand for different coffee blends.​ About 39% of UK consumers claim that their coffee consumption has increased over the past couple of years, with 18% visiting cafes at least once a day. The country’s strong coffee culture has registered a significant growth of coffee shops/cafes. ​As coffee consumption increases in the country, this beverage is increasingly considered an important part of consumers’ everyday lives.

UK Foodservice Market1

Growing Demand for Multicuisine or Ethnic Cuisines

The demand for multi- or ethnic cuisines in European countries, including the United Kingdom, is increasing, as more consumers, especially millennials and baby boomers, are willing to experiment with new and global cuisines. Moreover, the high rate of immigration, tourist population, and increasing sporting events have supported the ethnic food demand in the country. Therefore, in order to serve the personalized taste of consumers, cuisine-specific caterers or restaurants are setting up their kiosks in the games village and stadiums or near venues where sporting events are held to increase the indulgence of sports with ethnic food. Some of the most popular ethnic cuisines consumed include Japanese, Chinese, Mexican, Italian, Greek, French, Thai, Spanish, and Indian, which are increasingly served to consumers via hotels, restaurants, food halls, fast-food holdings, etc.

UK Foodservice market2

Competitive Landscape

The United Kingdom foodservice market is highly competitive, owing to the number of small and giant players dominating the market. Some of the key players in the market are McDonald’s, Starbucks Coffee Company, Domino's, Whitbread PLC, and Yum! Brands. Major players are embarking on market expansions and innovations in terms of online delivery of foodservice to achieve consolidation while optimizing their offerings and increasing their market shares.

Recent Developments

  • In 2020, KFC launched a vegan chicken burger as a permanent product on its menu in 900 UK stores. The burger features a bespoke Quorn fillet, coated in the Colonel’s iconic Original Recipe herbs and spices.
  • In 2020, Domino's launched its first meat-alternative with a vegan chicken pizza and Southern-fried nuggets in all Domino’s stores, adding to the existing Vegan Margarita and Vegan VegiSupreme.
  • In 2020, the Canadian fast-food brand, Tim Hortons, announced its plans for a major expansion in the United Kingdom to capitalize on the increased demand for drive-thru dining. It is also planning to open an outlet in every major city and town over the next two years.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

    1. 3.1 Market Overview

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Full-service Restaurants

      2. 5.1.2 Quick-service Restaurants

      3. 5.1.3 Street Stalls and Kiosks

      4. 5.1.4 Cafes and Bars

      5. 5.1.5 100% Home Delivery Restaurants

    2. 5.2 By Structure

      1. 5.2.1 Independent Consumer Foodservice

      2. 5.2.2 Chained Consumer Foodservice

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Yum! Brands Inc.

      2. 6.4.2 Starbucks Corporation

      3. 6.4.3 McDonald's Corporation

      4. 6.4.4 Domino's Pizza Inc.

      5. 6.4.5 Burger King Corporation

      6. 6.4.6 Mitchells & Butlers

      7. 6.4.7 Whitbread PLC

      8. 6.4.8 PizzaExpress (Restaurants) Limited

      9. 6.4.9 Nando's Group

      10. 6.4.10 The Restaurant Group PLC

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The United Kingdom Foodservice Market market is studied from 2016 - 2026.

The United Kingdom Foodservice Market is growing at a CAGR of 3.02% over the next 5 years.

McDonald's, Yum! Brands RSC, Burger King Corporation, Whitbread PLC, Starbucks Coffee Corporation are the major companies operating in United Kingdom Foodservice Market.

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