Value-scrutiny remains the dominant consumer attitude across the eating out market, according to Lumina Intelligence.
The share of very value-led consumers has fallen back year-on-year, now at 76.1%, though remains +3.4 percentage points ahead of 2022.
Lumina predicts consumers will continue to look for value through quality and experience, and therefore operators need to adapt ranges and offerings accordingly, through in-venue theatre and higher quality menus.
Notably, dinner and drink occasions have seen growth in consumers who are both quality and experience led, representing an opportunity for premiumisation and trade ups in the market.
According to Lumina’s UK Eating Out Market Report 2024, penetration jumped +3.3ppts to 56.6% this year, driven by more people out and about and returning to habitual missions.
Increased visits have been for low-ticket treats, driving drink-only occasions (+1.2ppts).
When it comes to customer satisfaction, demand for higher quality occasions has led to increased expectations around the in-venue environment. Satisfaction ratings around cleanliness has dropped -0.7% year-on-year whilst atmosphere or environment saw a -0.5% drop.
In terms of demographics, the market has re-gained its most active 25-34 age group, following a blip in 2023.
25–34-year-olds have remained the most engaged age demographic and have bounced back the penetration lost, following the peak of the cost-of-living crisis in Q3 2022. They now make up 11.5% of the overall market.
The over 65’s group has also increased year-on-year now sitting at 9.6% compared to 8.6% the previous year.
Lumina notes that more consumers in the market and returning to habitual routines has driven an increase in the number of both males and females in the market.
ABC1 consumers remain the largest demographic due to a higher ability to spend on out of home occasions. More C2DE consumers are in the market year-on-year as cost-of-living pressures ease, growing from 21.5% to 23.2% penetration.
More consumers in the market has been driven mainly by consumers who live alone, aligned with the growth of older consumers.
The growth of health and wellness trends and the rise of sober curiosity is fuelling the increase of consumers who identify as non-drinkers year-on-year. Younger consumers are driving this trend and are increasingly looking for non-alcohol alternatives when eating out. The non-drinkers category has risen from 13.6% to 14.8% year-on-year.
Operators are responding to this trend by introducing functional beverages to menus and expanding low2no ranges.
Meanwhile, those who identify as flexitarian has dropped year-on-year from 31% to 28.7%. Whilst those with vegetarians and vegan preferences has remained relatively flat at 5.5%, and 0.7% respectively.
Data from Lumina Intelligence UK Eating Out Market Report. To find out more, click here.
