The UK Foodservice Delivery Market Report 2023 shows that wide reaching investment in delivery services including development of aggregator platforms, optimisation of brand sites and prominent marketing activity will drive growth.
High inflation and increases in fees will also in-part contribute to a robust growth figure.
However, delivery volume is set to suffer as cost-conscious consumers reduce market penetration and frequency in 2023.
Value-scrutiny will be a crucial consideration, according to the report, with 57% of those not ordering delivery doing so to save money.
The most important age group in the market – 25 to 34-year-olds – has seen the largest decline in share of delivery occasions, over-indexing in wanting to save money as a barrier to ordering delivery.
“The cost of living crisis is expected to continue to impact consumer behaviour until at least early 2024 and delivery market operators need to ensure that value messaging, reward schemes and subscription models are being utilised,” the report states.
Branded traditional fast food has seen the largest growth in share across the market, up 12 percentage points, with delivery a crucial facet of strategy for channel leaders McDonald’s, KFC and Burger King.
Additionally, coffee, sandwich and bakery is set for the largest percentage growth in delivery turnover, rising 20.7% between 2020 and 2023, albeit from a small base.
Overall, foodservice delivery is predicted to hold a 11.9% share of the total market by the end of the year, reflecting a rise of 4.8 percentage points between 2019 and 2023 that's been propelled by a 'pandemic-driven boom'.
“Investment in digitalisation of estates to ensure sites are well equipped for delivery operations, as well as prominent marketing and promotional activity are key drivers of the foodservice delivery market,” the report adds.
Lumina Intelligence UK Foodservice Delivery Market Report 2023 is the definitive report on foodservice delivery, quantifying the size and growth of the channel and market forecasts out to 2026, with a detailed look at growth drivers and potential inhibitors. For more information, click here.
