Supply chain · 4 April 2018

Restaurant-shunning millennials could cost UK catering industry 1bn

catering sector
Restaurants could see annual visits from younger consumers reduced by 155m by 2022
Millennials preferring to eat at home than go out could cost the UK’s catering industry close to 1bn in lost revenue over the next four years, according to a new report.

However, the The Future of Foodservice? study, from the NPD Group, suggested that restaurant and caf? owners could compensate for the loss by targeting the more adventurous over 50s.

The report said so-called out of home visits (OOH) in the foodservice industry by people aged between 25 and 34 would decrease from 20 per cent to around 18 per cent of the sector’s total of 11.5bn visits between today and 2022.

That is equivalent to 155m fewer visits annually and a potential loss in annual spend of up to 800m. NPD said this would represent another strong visit decline after a big drop between 2007 and 2012 in the same age group.

Foodservice operators should make up for this by targeting people aged over-50. NPD said this fast-growing demographic will account for more than 70 per cent of the growth in the country’s population between now and 2022.

It said this was an attractive proposition? for UK hospitality, especially as many over 50s are wealthier, more active and more experimental when eating out than previous generations.

Indeed, total OOH visits among those over 50 could rise by over four per cent by 2022, equivalent to 130m visits, three times faster than the total OOH market.

The average bill for the 50-to-64 age group at a full-service restaurant is 13.41, higher than any of the other age bands, including 25-to-34s. The over 65s have the second highest average spend at 13.10.



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