Consumer Foodservice in Western Europe

May 2024

After a strong recovery in 2021 and 2022 from the pandemic-induced steep decline seen in 2020, growth in the Western European consumer foodservice industry slowed in 2023, with both businesses and consumers being impacted by the persistently high inflation. Western Europe is expected to continue seeing positive, if gradually slowing, growth in the coming years, with delivery, particularly via online ordering, continuing to gain share over the forecast period.

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Delivery

This report comes in PPT.

Key findings

Staff shortages a problem post-pandemic

Consumer foodservice has been experiencing staff shortages in the post-pandemic period. Many employees lost their jobs or had significantly reduced hours during the pandemic, leading many to seek employment in other industries. However, they have not since returned to the foodservice industry, resulting in a shortage of qualified staff, particularly in full-service restaurants, which generally look to provide a better quality of service.

Eat-in loses share during the pandemic

The pandemic, with its lockdowns and foodservice eat-in bans, saw this mode’s share fall from around three quarters of sales in 2019 to just over half in 2020. While eat-in has clawed back some share since then, home delivery in particular is expected to make gains over the forecast period, although takeaway will remain more popular, with more than a fifth of overall sales.

Foodservice industry continues to digitalise

Industry players are increasingly using technology to streamline their operations and improve the customer experience. This includes mobile payment options, digital menu boards and apps used for online delivery orders. They are offered in particular by chains, which have the necessary capacities for this. As younger consumers tend to use digital channels for all aspects of their everyday lives, they therefore also want to place foodservice orders through them.

Inflationary environment likely to slow growth in the short term

High inflation is a problem for a wide range of industries, including consumer foodservice. Players are struggling with higher costs, as raising prices is not a great strategy at a time when consumers are experiencing downward pressure on their disposable incomes. In the short term, at least, this scenario is likely to hold back the strength of the continued recovery from the sales decline seen in 2020 when the pandemic first hit the region.

Scope
Key findings
Western Europe has the highest regional sales in self-service cafeterias and cafés/bars
Western Europe is third in terms of both value sales and average per capita spend
Positive but slowing growth expected in the coming years
Chains and limited-service restaurants the best performers over 2018-2023
Strong growth for self-service cafeterias in Spain in 2023
Pandemic provides a major boost to sales via delivery
LSR manages to grow as FSR and cafés/bars rack up massive losses
Recovery from the pandemic slows in 2023 due to persistently high inflation
Staff shortages a problem post-pandemic in a number of countries
Consumer foodservice remains a fragmented competitive landscape
Pandemic helped cement the leading position of McDonald’s in Western Europe
UK the largest market for most of the Western European top 10 players
No changes in the top 10 brand rankings
Positive value sales growth expected throughout the forecast period
Ghost kitchens an emerging trend in the Spanish market
Digitalisation and home delivery/takeaway expected to continue developing
Austria: Market Context
Austria: Competitive and Retail Landscape
Belgium: Market Context
Belgium: Competitive and Retail Landscape
Denmark: Market Context
Denmark: Competitive and Retail Landscape
Finland: Market Context
Finland: Competitive and Retail Landscape
France: Market Context
France: Competitive and Retail Landscape
Germany: Market Context
Germany: Competitive and Retail Landscape
Greece: Market Context
Greece: Competitive and Retail Landscape
Ireland: Market Context
Ireland: Competitive and Retail Landscape
Italy: Market Context
Italy: Competitive and Retail Landscape
Netherlands: Market Context
Netherlands: Competitive and Retail Landscape
Norway: Market Context
Norway: Competitive and Retail Landscape
Portugal: Market Context
Portugal: Competitive and Retail Landscape
Spain: Market Context
Spain: Competitive and Retail Landscape
Sweden: Market Context
Sweden: Competitive and Retail Landscape
Switzerland: Market Context
Switzerland: Competitive and Retail Landscape
Turkey: Market Context
Turkey: Competitive and Retail Landscape
UK: Market Context
UK: Competitive and Retail Landscape

Consumer Foodservice

Consumer foodservice is composed of cafés/bars, full-service restaurants, limited-service restaurants, self-service cafeterias and street stalls/kiosks.

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