Promotions continue to drive growth in UK’s foodservice industry

Restaurant promos grew by 25% in QSR and 13% in casual dining.

Promotional activities continue to be an essential ingredient in successful marketing strategies by restaurants in the UK with the number of promotions increasing by 25% in quick-service restaurants (QSRs) and 13% in casual dining in the first half of the year, Meaningful Vision reveals.

Meanwhile, a relatively modest 3% growth was witnessed in the delivery sector, where promotional deals are already well represented with frequent and numerous offers an established feature of the market.  

Moreover, websites and apps have emerged as key channels for promotional activity.

Fast-food chains and casual dining restaurants alike have embraced digital platforms to offer targeted deals to an ever wider audience. Many chains have rolled out loyalty programs and app-based promotions, rewarding customers with discounts or deals and encouraging repeat business. This year, the number of offers for free products in exchange for app sign-ups has surged reaching 4% of all promotions, a significant increase from the previous year. 

One favoured strategy amongst the top UK brands is price promotions, constituting 64% of promotional activity in casual dining, and 86% in QSRs. 

Price promotion offers in the delivery channel are also frequently employed, with 57% of promotions offered by casual dining, and 68% of QSR featuring discounted products. The average discount offered by promotions in the first half of 2024 was around 24% in QSR and 22% in casual dining.

Special price offers dominate the QSR dine-in segment with 79% of all promotional activity in 2024, an increase compared to the previous year. By contrast, for the casual dining sector special price offers are less prevalent, representing 43% of promotions. 

Casual dining

In the casual dining sector, free or extra products are a popular promotional tactic representing one third of all promotions (36%). 

For example, Frankie & Bennys offer a free pizza when you purchase any drink, and ASK Italian offers a deal of “2 for1” on main meals, or free dessert when purchasing a main meal with an email code. TGI Fridays promote their “Kids eat for free” special offers. 

Discounts and daypart promotions

Discounts, both percentage-based and absolute, are a familiar promotion type. For casual dining, absolute discounting has a smaller share than price promotions or special prices, but in the delivery sector discounts are the dominant promotion type, with their popularity increasing over the previous year, to 45% for eat-in promotions, and to 53% for delivery.

Many chains are also focused on daypart-specific promotions. For instance, Greggs and McDonald's offer breakfast deals, whilst KFC and Domino's target the lunch crowd and TGI Fridays have introduced a weekday lunch special. Pizza Hut and Greggs have introduced special evening promotions.

The impact of sporting events

Major sporting events, such as the Euro 2024 football tournament, significantly influenced consumer behaviour and drove increased promotional activity. 

Fast-food chains experienced a decline in the number of in-store visits during Football games this summer, partially offset by a surge in delivery orders from football fans gathering at home to watch matches. KFC offered a delivery bundle for £10, whilst McDonald’s launched two event related delivery deals – The Squad and Burger Deals. Notably, Just Eat, an official UEFA sponsor offered enticing promotions for eat-at-home spectators like 25% off food and free delivery during England's match days.

Many venues employed special deals, themed menus, and food promotions to capitalise on the football frenzy. Greggs were offering free rolls every match-day that England or Scotland remained in the tournament. Domino’s promotions featured a free pizza worth £15 via a cashback partner. Beverage and snack sales, particularly beer, and finger foods, witnessed a significant rise as fans gathered to cheer on their teams.

Meal deals

Meal deals remain a cornerstone of promotional strategies, with their share increasing by 5% in the first six months of 2024 compared to the previous year. Pizza continues to be a popular choice, accounting for over 20% of promotional offers. In addition to meal deals, savoury bakery items and sides have also seen a surge in promotional activity this year.

"Promotions are playing an increasingly prominent and important role in attracting and retaining customers, a trend we believe will continue in the months ahead. We anticipate promotions will become more focused and tailored to specific demographics and dayparts. The power of promotions as a tool for driving footfall and sales should not be underestimated. Equipped with a detailed understanding of consumer preferences, in combination with utilising digital platforms, businesses can create innovative and highly effective campaigns to boost sales, foster brand loyalty, and differentiate themselves from competitors in a crowded marketplace,” Maria Vanifatova, CEO of Meaningful Vision said.