How restaurant promotions are changing in foodservice

Amongst the UK's top 100 foodservice chains, about 70% of promotions revolve around price offers.

The number of restaurant promotions in the UK surged by 9% in the first eight months of 2023. The promotional mechanics used by market players were evolving, focusing more on delivering unique value propositions, as per the data provided by Meaningful Vision.

Amongst the UK's top 100 foodservice chains, about 70% of promotions revolve around price offers: special price offers on specific items accounted for 47% of all promotions, closely followed by menu or category discounts at 24%.

These strategies are prevalent amongst foodservice venues and delivery aggregators, often linked to loyalty programs promoting repeat orders. The remaining 30% of promotions are divided between Free/Extra product deals, such as Buy-one-get-one and Free delivery

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In the food delivery industry, discounts dominate at 42%, with an average depth of discount of 23% in August 2023. Compliment products and free delivery account for 40% of all promotions in this sector.

Notably, promotions offering free products for specific spending amounts have increased by 30%, constituting nearly 15% of restaurant promotions and 22% in the delivery sector. Free delivery is also gaining traction, with delivery aggregators increasingly using this technique, peaking in May-June at nearly 28% of all delivery promotions.

Maria Vanifatova, CEO of Meaningful Vision, said this underscores the importance of innovative promotions in response to the current cost of living crisis.

"To differentiate businesses and enhance customer perception of value, restaurants and delivery aggregators are shifting from discount-based offers to extra services, such as complimentary products and free delivery. This is because consumers may become accustomed to discounts without fully recognizing their value. Monitoring competitors and selecting effective promotional methods are essential to addressing the challenges in the current market," Vanifatova said.

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