FOODSERVICE DELIVERY TO REACH £13.3BN THIS YEAR

Deliveries across the UK's foodservice industry are expected to reach £13.3bn in value this year. Foodservice businesses have found strong and growing revenue streams in delivery following the pandemic, aiding their post-lockdown recovery, according to Britvic's recent 2022 Soft Drinks Review.

After shifting to delivery to continue trading during the pandemic, foodervice outlets have opened new and permanent revenues, which grew by 50% in 2020. Volume sales surged by a further 6.5% in 2021, generating £0.7bn of additional revenue. 

Almost a third (29%) of delivery occasions now contain a soft drink, with a high proportion of orders containing a combination of food and drink, as consumers add items to justify delivery fees or negate them by reaching a value threshold. 

Food and drink delivery is ecpected to grow by 5.3% this year, generating £13.3bn in revenue for food-centred businesses. Even after the lifting of lockdown restrictions, consumers made delivery part of their repertoire, increasing orders by 9% in the 12 weeks to 23rd January 2022.

New delivery occasions
Delivery accounted for £2 in every £10 spent in foodservice in 2021 and remains on an upward trajectory as consumers retain their order-in habits post-pandemic.

The number of people ordering lunch at home to spend more time with their partner has increased by 27% since 2020. Almost a third (29%) are ordering at dinner time because they have no food in the house, while a further 26% are ordering in to spend more time with family and friends.

"Clearly, foodservice has changed its relevance in households across the UK following the pandemic, this year’s Britvic Soft Drinks Review shows," said Katy Watts, head of channel development (foodservice and licensed) at Britvic. 

Watts explained that established big brands continue to dominate foodservice delivery, achieving a 57% share of occasions – increasing to almost 80% when soft drinks are included. She added that meal deals and box formats remain popular and are easier for customers to order than selecting multiple options. 

Industry opportunities
Within the wider foodservice and licensed market, foodservice takes roughly a 50% split of deliveries with and without drinks. Quick-service restaurants present the largest opportunity for soft drinks delivery, according to Britvic, with 29% of occasions containing a beverage – 37% of which are soft drinks. Outlets have hisotically focused on draughts, but delivery broadens the scope to cater for more tastes via packaged drinks. 

Restaurants, however, are lagging behind, with two in every three occasions consisting solely of food, and soft drinks being included just 19% of the time. This represents an opportunity for added soft drink sales, as restaurant brands have shown high adoption of delivery 'right this minute' sales.

"The data shows some foodservice segments, such as fast food, are already capitalising on delivery, with a high inclusion of soft drinks," Watts explained. 

"However, research from the Soft Drinks Review also highlights many opportunities for growth, particularly within restaurants, where these sales can be increased. This may be down to such brands not providing food and drink meal deals on their websites or apps, or perhaps not prompting customers to order a drink before concluding their transaction."

For more information, you can find the review at britvic.com/soft-drinks-review.

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