Barclays has today launched a new report that reveals different consumer tastes up and down the country in the restaurant and takeaway sector.

Barclays Market and Customer Insights analysed the dining choices and spending of more than 8 million Barclays’ customers between July 2016 and June 2018. The aggregated data shows that restaurant and takeaway sales growth in the north vastly outpaced growth in the south.

Although restaurants and takeaway branches based in the south continue to dominate the total share of sales (67.3 per cent), the first six months of 2018 saw sales growth in the north increase almost four times the amount in the south (9.6 per cent year-on-year sales growth compared to 2.5 per cent). Over the two years the report covered, on-premise sales grew in Manchester by 12.6 per cent, representing the fastest growth in the country (compared to the national average of 8.9 per cent).

Nationally, demand for fast food and takeaways is rising rapidly, with overall sales growth of 20.6 per cent compared to 7.2 per cent growth in full service, dine-in restaurant sales. A closer analysis reveals that those in Manchester spend considerably more money on fast food and takeaways than those in London (28 per cent of total spend versus 16 per cent).

The report also revealed that while customers appear to be dining more frequently, they’re doing so at a lower cost. Average transaction values have fallen in Manchester by 3.9 per cent to £13.45 over the two years covered by the analysis, far greater than a national average of a 1.5 per cent decline. This trend clearly favours lower price-point outlets, fuelled by the growing popularity of eating in, easy-to-use delivery apps and online directory services.

Philip Richardson, Director, Hospitality and Leisure, Barclays Corporate Banking, said: “Over-supply aligned with higher input costs is causing pressure in the market. That said, the demand for good locations remains strong – our Market and Customer Insights analysis has become increasingly important as operators seek to make informed decisions on their strategic expansion based on hard facts.”

Raj Pattni, Head of Insights Platform, Barclays, said: “This research shows that Manchester, and the wider north is clearly outperforming the rest of the country in terms of sales growth within the dining and takeaway sectors. Businesses seeking to capitalise on this must turn their attention to offering attractive, tailored in-store experiences that will result in long-term customer retention.”


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