OOH Eating Occasions Fall But Discounters Growing In FTG Market

 Namnews, 26th April 2023

Latest results from MealTrak, the food-to-go (FTG) and out-of-home (OOH) tracking programme developed in partnership with TWC Group, show the number of out-of-home eating occasions were 1% lower over the year to 20 March 2023. And in the latest 12 weeks, the number of such occasions fell by 10% versus the same period in 2022.

Over the 12 weeks, occasions in the ‘eating out’ channel (comprising pubs, restaurants and hotels) declined by 2%. Pubs continued to outperform the other sub-channels (+2%), ahead of restaurants (-6%) and hotels (-2%).

Total food-to-go occasions declined by 11%, driven by forecourts (-43%), transportation sites (-40%), sandwich shops and specialists (-24%), high street (-17%), coffee shops and cafés (-13%), workplace (-13%), fast food & takeaway (-12%) and independent convenience stores (-2%).

The discounters (+23%) and the multiples (+3%), with their more affordable food-to-go offer, remained the clear winners.

Overall value sales increased 8% on a 52-week basis but were flat over the 12 weeks.

Tom Fender, Development Director at TWC, commented: “Out-of-home eating occasions continued to fall this period, with a decline of -10% in the latest 12 weeks. Interestingly, the ‘eating out’ sector is outperforming food-to-go currently, with a decline of 2% in the latest 12 weeks, vs. 11% for food-to-go occasions.

“We continue to see an outperformance amongst those outlets offering more affordable options, namely the discounters – and to a lesser extent the multiple grocers. Discounters saw growth of 23% in the 12 w/e 20 March 2023.

“Through the cost-of-living crisis, the discounters are performing strongly – with Aldi achieving a record grocery market share of 9.9% in 12 w/e 19 March 2023 and Lidl was the fastest growing supermarket over the same period (Source: Kantar).

“The impact of the discounters on food-to-go can’t be ignored either. With enhanced ranges and an increase in quality through investment in better ingredients, improved packaging and more sustainable practices, the discounters are offering food to go that is not only affordable, but is also a convenient and credible option.”

NAM Implications:

• Patently a shift to less expensive options:
  • Pubs vs restaurants
  • Discounter & mults vs forecourts & transport sites
• Key will be the degree of habit formation in new behaviour.
• i.e need for major effort in increasing appeal to win back ‘economic’ switchers…