Chart from Meaningful Vision.
UK foodservice promotions across segments revealed
The share of in-restaurant price promotions was at 86% in H1.
Promotions are an integral part of businesses' marketing strategies throughout the UK’s foodservice industry. From fast-food chains to casual dining restaurants, a wide variety of promotions are leveraged by operators to attract and retain customers.
According to Meaningful Vision's data, promotional activity has seen a significant uptick in recent years. In the first half of 2024 the number of promotions increased by 25% in QSR, and 13% in casual dining. The delivery sector experienced a more modest 3% growth where promotions are already prevalent with frequent and diverse offers being the norm.
Price promotions dominate the sector, comprising 64% of all in-store promotional activities in casual dining, and 86% in QSR. In the delivery sector, price promotions account for 57% in casual dining and 68% in QSR. The average discount offered by promotions during the first half of 2024 was around 24% in QSR and 22% in casual dining.
In June and July 2024, price promotions remained dominant, with an average discount of 20-25%. This reflects a strategic effort by operators to offset rising prices and maintain affordability for customers.
Special price offers have gained popularity amongst price promotions, whilst free delivery has become a more common incentive for delivery orders. Meal deals continue to be a primary focus of promotional offerings.
Summer promotions often tie into sporting events. Greggs offered free rolls during matches, while Domino's provided free pizza through a cashback partner.
Websites and apps are being used to offer targeted deals to a wider audience. Many chains have implemented loyalty programs and app-based promotions to reward customers and encourage repeat business. This year, free product offers for app sign-ups have surged, accounting for 4% of all promotions, a substantial increase from the previous year.
CEO of Meaningful Vision Maria Vanifatova, highlights the growing trend of using apps for promotions: “More and more companies are using their apps to run promotions, creating additional engagement and helping to build long-term relationships with customers. Additionally, we’re seeing more promotions focused on special occasions, such as breakfast deals at McDonald's and Greggs, or lunch offers at KFC and Domino's.”
