Lockdown ate £751m per week from takeaway and restaurants

On average £751m per week was lost on total OOH food consumption during the first month of national lockdown.

As countries around the world enter a second wave of lockdowns, new findings from Kantar have revealed the economic impact of the first shutdowns early this year. Low out of home (OOH) food purchasing patterns are costing global economies millions in lost revenue. Reduced consumer confidence and restrictions on social contact have created an environment where the foodservice industry is reliant on in-home delivery services.

During the first half of 2020, just one week of lockdown cost £312m in lost spending on snacks and non-alcoholic drinks in Great Britain, while on average £751m per week was lost on total OOH food consumption during the first month of national lockdown. Across the first half of 2020 (to mid-June), OOH food consumption in Great Britain fell by 36%.

As countries emerged from the first wave of lockdowns, the transition to home working restricted the recovery in spending. In Q2 2020, Great Britain experienced a continued decline of 35% compared with Q1 2020. Meal delivery spending in Great Britain grew from £157m per month in 2019 to £521m per month in Q2 2020, compensating for some of the losses from consumers not eating out.

Lucy Chapman, strategic insight director for Kantar, said: “While hospitality businesses have been some of hardest hit by the Covid-19 pandemic, the innovation and growth seen in home delivery services has been a bright spot for the sector. Following a trend well established in Asia and Latin America, Brits are increasingly using food deliveries as a chance to treat themselves at home – something that has been much needed this year. There are opportunities for traditional out of home brands to find new ways to help consumers recreate restaurant experiences while going out is restricted.

“Maintaining brand presence is important and many people are likely to be looking forward to returning to their favourite restaurants. Four out of five consumers went back to eating or drinking out over the summer, suggesting that when it’s open, people want to interact with the hospitality market.”