Foodservice growth rate to slow by end of year

The UK foodservice market is continuing to grow, according to foodservice consultancy Horizon, although the rate of growth is expected to slow.

Food and drink sales in the sector were worth £10.8bn in the first quarter of 2016, up 2.3% on the same period last year, and Q2 is expected to see an increase of 2.1% to £12.4bn.

However, the company predicted that, by the end of the year, the UK foodservice market was likely to have shown slower overall growth than in 2015, at around 1.8%.

The figures derive from research by the company’s managing director, Peter Backman, on the foodservice sector. They were released to support the launch of the company’s annual The Foodservice Market report, which looks at the size and growth of the sector as well as key market drivers.

He said: “Our consumer research shows that frequency of eating out is now at 2.04 times in a two-week period, although average spend is down to £14.07. Brexit and the National Minimum Wage are both causing uncertainty, but UK operators have already proved how versatile and adaptable they can be by embracing new food trends and keeping consumers dining out. The fact there was growth in Q1 demonstrates this resilience.”

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