E ating
O ut
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| Hospitality Today | Oct/Nov 2016
&
Trends
Breakfast threatens to cannibalise
lunch trade
The competition to attract consumers
for lunch out-of-home (OOH) has
become more intense than ever. There is
competition between branded operators
and independents as well as added
pressure for all players from the growing
trend to spend money on breakfasts, with
this day part growing much faster than
lunch.
Brands doing better than
independents for lunch
With high-street restaurant chains
having invested vigorously in their lunch
products since the 2008/2009 downturn,
the well-known branded foodservice
chains are successfully building business
at the expense of independent operators.
Figures released by global information
company The NPD Group show that in
June 2008, there were 13 chains with a
1%+ share of the OOH lunch market. By
June 2016 this had grown to 17 chains.
News
Breakfast growing faster than lunch
NPD data shows that the average bill for
eating breakfast out is 31% higher (at £3.30)
than it was eight years earlier. In contrast,
the average bill for lunch is only 6.5% higher
over the same period (£4.57 vs £4.29). While
people still spend more at lunchtime, the
gap is closing. As of YE 2008, the price of an
eat-out breakfast was 59% that of lunch;
fast forward to YE 2016 and it is 13% higher
at 72% the price of lunch. It’s the same story
when viewed in terms of visits. Since June
2008, lunch has lost over 80 million visits,
while breakfast has added an extra 107
million. Dinner is flat.
NPD Group says that more people are
having breakfast out because they don’t
have the time to focus on that meal at
home. Breakfast offerings on the high
street – both food and drink – are also more
numerous than before and offer wider
choice. With operators opening much
earlier too, breakfast out amounts to a
much better option than anything we
could prepare at home.