Multi-sites restaurants industry Year 2020 in Review

 

qsrmedia.co.uk

We look back at the highs and lows of the UK multi-site restaurant industry these past twelve months.

This year, Britain’s quick service and fast casual restaurant industry has been largely defined by how it is looking to survive and, in some cases, thrive amidst the series of challenges brought about by the coronavirus pandemic. All that and more on QSR Media UK’s Year In Review.

• Navigating sets of restrictions

COVID-19, considered by many in the industry as the “great accelerator”, became a much more grim reality for the UK's foodservice industry when the government ordered all pubs, cafes and restaurants to close last March, with players that had delivery and takeaway capabilities being the ones allowed to operate. This came on top of the lingering uncertainty about Brexit that is due to be completed by year-end.

Months later, lockdown rules were eased and the “Eat Out to Help Out” scheme by the government was established to boost businesses and consumer confidence. Currently, Britain’s foodservice is doing its best to navigate the recently-implemented tier system in place.

• Delivery, takeaway, drive-thru now a necessity

Once considered just a welcome revenue stream, the delivery, takeaway and drive-thru channels became a necessity for industry players overnight. Particular categories that have heavily invested in these off-premise models have recovered faster compared to their peers. Drive-thru locations are now being sought out by an increasing array of players.

• Virtual brands, restaurant kits

Meal kits, virtual brands also became an alternative source of revenue, some of which were created during the height of the restrictions. They look set to stay too as a way for brands to deepen their relationship with their customers.

• Store network reductions, CVAs

The challenges brought about by the pandemic have resulted in chains closing branches, whilst others were forced to enter company voluntary agreements (CVA). The difficulties have provided opportunities too for larger groups looking to acquire good brands brought down by the pandemic.

• New customer engagement approaches

Businesses are also discovering innovative propositions to deepen their relationship with their customers. Pret and LEON, for example, unveiled their takes on coffee as a subscription service. Chains such as Wagamama remained in the minds of consumers with online cooking videos.

• Towards suburban locations

With consumers likely to remain occasionally working from home once the pandemic is over, chains with suburban locations are likely to outperform city centre locations in the short to medium term.

• Product development unfazed

In terms of product development, some chains opted to either showcase reduced menus or continue to release new innovations. The year consisted of value-focused items, premium choices and vegan- and vegetarian-friendly products.

• Giving back to frontliners

Despite its difficulties, the QSR industry also took this time as a chance to offer support to workers in the frontlines, offering discounts or free meals.

• Growth in a post-pandemic world

As restaurant chains continue to navigate this post-pandemic world, growth remains as a top priority. Brands, especially those who were able to thrive this year, remain unfazed in seeking and opening new locations, exploring new markets and testing new store models in 2021 and beyond.