Consumer Foodservice in Western Europe

August 2023

Consumer foodservice has recorded an impressive recovery in 2021 and 2022 from the steep decline seen in 2020 due to COVID-19 restrictions. However, growth is expected to slow significantly from 2023 as high inflation directly impacts the industry in terms of rising costs as well as indirectly by putting pressure on consumers’ purchasing power. Western Europe will see positive growth in the coming years, but will not return to its pre-pandemic sales level before the end of the forecast period.

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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
Full-service restaurants the leading channel in Western Europe
Western Europe is third in terms of both value sales and average per capita spend
Continued recovery expected in the coming years, but at slower annual growth rates
Ireland loses more than half of its consumer foodservice sales in 2020
Turkey’s LSR channel benefits from its low-cost and takeout nature
Pandemic’s rush to adopt “to-go” sales methods expected to remain a long-term trend
LSR manages to grow as FSR and cafés/bars rack up massive losses
Recovery from the pandemic continues, but being undermined by high inflation
Staff shortages a problem post-pandemic in a number of countries
Increasing demand for plant-based and sustainable options among German consumers
Despite some concentration over 2017-2022, consumer foodservice remains fragmented
Pandemic helped cement McDonald’s leading position
UK the largest market for most of the Western European top 10 players
McDonald’s and Burger King maintain their top two spots
Positive growth expected throughout the forecast period for value sales
No return to pre-pandemic sales levels before the end of the forecast period
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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