Leadership

Delivery rescues the dining sector

Apr 25

by Willie Biggart

Recent UK dining industry data collected by Cardlytics has shown that spend on delivery rose by 19% in 2018, when the overall industry saw just a 3% increase. A close look at the figures reveals just how powerful food delivery can be for all kinds of caterer.
 

 

Coffee perks up… with a little help from Spoonfed

I was pleased to read in Cost Sector Catering’s coverage of the data that while consumers are cutting their spending in many areas, this is not the case for many UK coffee chains, including one that runs on Spoonfed:

“Spend in coffee chains remained resilient, up 5% in 2018, greater than any other category. Among the best performers were Benugo, Café Nero and Paul.”

Benugo has been running their corporate catering using Spoonfed since 2016 and Paul joined us in the US early last year. Two out of three ain’t bad. We are already working with some of the biggest brands in the restaurant and Food Service Management industries, and plan to reach a lot more this year.
 

Delivery on the rise

The growing importance of delivery has broad implications in the hospitality industry. While the average spend at restaurants declined from £21.73 in 2015 to £19.95 in 2018, the opposite was seen for delivery, where it grew from £18.97 to £20.56 in that time. Quick service brands have been among the hardest hit, with burger and fried chicken brands seeing the steepest drops in spending as victims of the move towards healthy eating.

These statistics all relate more to the B2C market than B2B, which we are concerned with. But they reveal a trend that will be seen across the board. The shift from bricks and mortar dining to eating-in will increasingly be seen in the workplace, as customers bring their habits to the B2B marketplace.

Cardlytics UK head of business development Duncan Smith said: “Delivery services continue to be the big success story in the UK. As consumers increasingly opt for eating in over dining out, bricks-and-mortar restaurants are feeling the pressure. Yet facing into the headwinds by embracing these platforms and other consumer trends could pay dividends.”

At Spoonfed we’ve always maintained that restaurants can introduce a valuable secondary revenue stream by providing catering - a great way to get frequent large-value orders, avoid quiet times and expand a customer base. In total, companies that ran their catering on Spoonfed averaged 27% revenue growth last year, with web order values up 53%. Those are dividends that any restaurant would be happy to receive.

For more information about results seen by caterers using Spoonfed, go to discover.getspoonfed.com

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