Takeaway sales sink 11% as delivery dominance grows

Attractive delivery offers helped the restaurant maintain its strong at-home sales in February.

Takeaways and click-and-collect orders have decreased for the 11th month in a row as more Brits choose the convenience of deliveries.

According to a report by CGA by NIQ, new delivery offerings by restaurants have been boosting the segment, with delivery sales rising to 4.7% in February compared to the month before. This was further boosted by wet weather, which has kept people at home in many parts of the country. and by hesitant consumer confidence, which may have led some to reduce their spending on eating out.

Restaurant groups have accelerated growth by extending their delivery offers and partnerships with third-party platforms. February’s total delivery sales, including at restaurants opened in the last 12 months, or ones where deliveries have been introduced for the first time, were 11.8% ahead of the same month last year.

Restaurants’ revenue from takeaways and click-and-collect orders fell by 11.1% on a like-for-like basis in February—an 11th negative month in a row. Takeaways generated only 4.9% of spending with restaurants during the month, while deliveries attracted 13.1%.

Karl Chessell, director - hospitality operators and food, EMEA at NIQ, warned that consumer spending remains tight, and confidence will be sapped further by any inflation that arises from the conflict in the Middle East.

“At a time when restaurants’ sales and profitability are under major pressure, February’s double-digit growth in at-home sales is a positive sign. However, much of the extra revenue for some operators has come at the expense of takeaways and eat-in trading, or from newly-launched delivery operations,” Chessell said.