As the UK’s out-of-home (OOH) sector gears up to grow by 2.5% to hit 101bn this year1, Lantmännen Unibake’s Americana brand has launched a guide to help operators maximise growth opportunities.
Nearly 60% of UK adults now eat or drink out weekly, averaging 1.6 visits per week with an average spend of £18.06 – a 13% year-on-year increase2. This growth in spend can be seen across all dayparts, but it’s breakfast that presents the biggest opportunity for operators with average spend increasing by 33% to £16.35 last year2.
Research by Americana highlights that for the first meal of the day, operators should keep it classic: crispy bacon (63%), juicy sausage (57%), friend egg (46%), golden hash browns (45%) and earthy mushrooms (25%) are the fillings consumers want in a breakfast bap3. Over a third (37%) of breakfast consumers want these ingredients in a soft, buttery brioche bun3, following the trend in coffee shops and branded chains.
Notably, 74% of consumers would pay more for a gourmet bun at breakfast, adding £1 to every breakfast served in a gourmet bun3, highlighting the revenue opportunity that premium buns provide operators. And with 29% of consumers prioritising value for money when dining out for breakfast2, premium options that deliver quality satisfy this demand while boosting revenue.
It’s not only breakfast that is on a growth trajectory. Driven by consumer demand for premium experiences that aren’t available at home, visitation and spend has increased across all three dayparts2, extending the opportunity for operators. Lunchtime spend rose by 15% to £17.962 last year, and dinner, which has the largest share of all occasions at 30%2, grew by 12% to £26.382.
Additionally, 74% of consumers are happy to pay more for a gourmet bun at lunch, equaling £1.07 more per lunch item in a gourmet bun, and 72% will pay more for a gourmet bun at dinnertime, totaling £1.41 more per dinner item in a gourmet bun3. This is evidence that the premiumisation trend within the market remains strong which presents an opportunity for operators to drive sales.
Mel Charles, Customer Category Manager at Americana, comments: “OOH operators have an exciting opportunity to capture increased consumer spend across every mealtime. This is being driven by volume recovery and the consumer desire to spend as pressure on household budgets start to soften. Even as the eating out market returns to more stable growth patterns, value is imperative and is denoted by quality. If an outlet communicates and offers higher quality meals it can command a higher price point that consumers are willing to pay.
“Burgers rank second when it comes to the most popular menu items in the UK4 and 85% of consumers purchase a burger in the OOH market at least once a month3, so it’s easy to see how this approach is driving considerable volume within the market. Outlets are capitalising on this and leveraging the ‘nostalgia’ mega-trend by offering classic menu options like burgers and upgrading them with higher quality ingredients or reimagining them based on global cuisine trends to create a more premium, value-centric offering.”
Jamie Munro, Brand Manager at Americana, adds: “Our research tells us that quality ingredients – particularly premium buns – are a sure fire way to maximise the opportunity, with 73% of consumers willing to pay more for a gourmet bun across all dayparts3. This trade-up is a simple and cost-effective way to increase the quality and value perception of a meal, enabling operators to charge a higher price point.
“The OOH industry is still suffering from high staff turnover and ever-increasing supply chain costs. However, with more people dining out and spending more too, now is the time for operators to get in on the action to boost their revenue. We are pleased to help operators maximise the opportunity throughout the day, using the insights in our latest burger guide.
“Our guide is a one-stop-shop for QSR, pub and bar operators wanting to understand more about how they can leverage not just the breakfast opportunity, but lunch and dinner, too. Our buns work for all OOH sectors, and we have quality products for every price-point, all of which is detailed in our insight-led guide along with recipe inspiration for every daypart, too.”
Download Americana’s ‘The Best Bun For Every Occasion’ guide here.
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