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OOH Eating Back In Growth With C-Stores Amongst Best Performers

Latest results from MealTrak, the food-to-go and out-of-home tracking programme developed in partnership with TWC Group, show the total number of out-of-home eating occasions grew 4% over the 12 weeks to 15 May compared to the equivalent period in 2022. On a 52-week basis, occasions were unchanged.

Occasions in the ‘eating out’ channel (comprising pubs, restaurants and hotels) grew by 7% over the 12 weeks, whilst pubs continued to outperform the other sub-channels (+25%), ahead of hotels (+14%) and restaurants (-8%).

Total food-to-go occasions grew by 4%, driven by the discounters (+27%), multiples (+10%), independent convenience stores (+10%), high street (+7%) and fast food & takeaways (+6%).

Meanwhile, forecourts (-13%), transportation sites (-8%), sandwich shops and specialists (-4%) and coffee shops and cafés (-1%) were all in decline, and the workplace sector was static.

In value terms, sales increased 7% on a 52-week basis and by 9% over the 12-week period.

Tom Fender, Development Director at TWC, said: “It is really encouraging to see out-of-home eating occasions back in growth this period, not just in value but also in terms of the number of occasions, which were up 4% in the latest 12 weeks (vs. year ago). Encouragingly, independent convenience stores are one of the star performers in the latest data, with 12 week ending growth of 10%, which is in line with the multiples, who have been outperforming the market for some time.

“The winning missions continue to be ‘something quick and easy’ and ‘regular favourite’, suggesting consumers want ease and are not willing to take risks (‘something different’ remains in strong decline). Meanwhile, ‘something inexpensive’ remains in year-on-year growth but is not driving the market to the extent it was a few months ago. A shift away from the sector being entirely value driven can only be a good thing for suppliers and operators and aligns with the gradual improvement in consumer confidence (as reported by GFK).”

NAM Implications:
  • Encouraging moves, but suppliers need to keep in mind that they are dealing with cautious, savvy consumers…
  • …that are becoming more expert in home cooking i.e. increasingly critical of what they receive in hospitality.
  • That said, opportunities for those that tailor to their need.
  • And deliver more than it says on the tin, always…