Restaurants' delivery and takeaway sales growth slows as volume drops

By Restaurant

- Last updated on GMT

Restaurants' delivery and takeaway sales growth slows as volume drops

Related tags Delivery & takeaway Multi-site Cga Casual dining

Britain’s top managed restaurant groups recorded 1% year-on-year growth in delivery and takeaway sales in December 2023, data shows.

It is a seventh consecutive month of like-for-like growth and caps a year that saw restaurants revive deliveries and takeaways after a post-COVID decline, according to CGA by NIQ’s latest Hospitality at Home Tracker.

However, the 1% figure is unchanged from November and continues a slowdown towards the end of the year, from 6% and 4% in September and October, says CGA, with growth generated by increases in menu prices rather than order volumes, which dropped year-on-year by 4% in December.
As was the case throughout 2023, direct-to-home sales were much stronger than takeaways. Deliveries achieved 6% growth in December, but takeaway and click-and-collect sales fell by 10% as more consumers migrated from collecting meals to delivery to the door.
Deliveries accounted for nearly two thirds (64%) of all restaurants’ orders in December, while takeaways were worth 36%. Combined, they attracted 14 pence in every pound spent with groups, while eat-in sales took 86 pence.

“It was encouraging to see restaurant groups steadily recover their delivery and takeaway sales in 2023 after an extended post-Covid lull,” says Karl Chessell, CGA by NIQ’s director - hospitality operators and food, EMEA.

“However, growth has slowed to well below the rate of inflation, and profit margins on deliveries remain tight for many businesses.

“These challenges are likely to continue for some time, but as cost pressures ease and consumers recover their spending confidence we can be cautiously optimistic that sales will pick up as we move deeper into 2024.”

Related news