18th April 2019
Spend on delivery services rose 19% in 2018, significantly outperforming the rest of the sector and driving growth in UK dining according to data from Cardlytics analysts.
The report, based on the transactions of more than 2.5 million UK bank customers last year, revealed overall dining grew only 3% year-on-year, compared with 9% in 2017 and 17% in 2016.
Average spend per delivery order has risen from £18.97 in 2015 to £20.56 in 2018, compared with a decline at restaurants from £21.73 in 2015 to £19.95 in 2018.
Older consumers are driving growth in delivery spending – those aged 49 to 58 spent an average £21.95 per order in 2018 compared with 19 to 28-year-olds who spent £19.30. Coffee chains also defied the slowdown with sector spend up 5% year-on-year in 2018, while spending growth in bars was up 1% in 2018 compared with 8.3% the year before. Quick service brands were among the sectors hardest hit by the slowdown, with spending growth reducing to 1% year-on-year in 2018 compared with an 11% increase in 2017.
This shift has been primarily led by consumers aged 19 to 28, whose spend on fast food declined 2% in 2018. Average spend per visit to quick service chains has fallen to £6.28 in 2018, compared with £6.58 in 2015. Burger and fried chicken brands saw some of the largest declines in 2018, with spending down 7% and 6% respectively.
Consumers are opting for healthier and trendier on-the-go options, with spend on salads, soup and sandwiches up 5%.
Cardlytics UK head of business development Duncan Smith said: “Delivery services continue to be the big success story in the UK. As consumers increasingly opt for eating in over dining out, bricks-and-mortar restaurants are feeling the pressure. Yet facing into the headwinds by embracing these platforms and other consumer trends could pay dividends. Tapping into areas such as door-to-door delivery and click-and-collect, a desire for healthier choices and other new marketing platforms could be the recipe for success in 2019.”