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.”