15 February 2019
After noticing various friends participating in the Facebook’s '10 Year Challenge' (a recent social media trend involving posting a picture of yourself from ten years ago side by side with current one) this week, I have been thinking about how things have changed for UK restaurants since the depths of recession. What if the restaurant sector had a Facebook profile? What are the key changes since 2008/09?
Everyone has a voice
The past 10 years has seen social media become indispensable, with over 1.5 billion additional users during this period. For many it is the first thing they look at in the morning and the last thing at night. For restaurants with show stopping dishes, idyllic locations or great customer service this is an opportunity for free advertisement whether through ‘checking in’, reviewing or sharing photos of a meal. However the potential downside is magnified too. Complaints triggered by an off par meal or poor service are now shared with a large audience, meaning the level of reputational risk has also increased exponentially.
Health food evolution
From the raw food and baby food diets of the late ‘00s, to the paleo and keto diets of now, ‘extreme’ diets are big business, but continually changing. These trends (along with our increasing obsession with cookery programmes) suggest today’s consumer is more informed and health-conscious than they were in 2008/09. Whilst restaurants would be ill advised to change menus seasonally to meet the whims of the next best diet, consumers want to know from where their food is sourced and what its nutritional value is, meaning increased pressure on restaurant owners to cater for their needs and provide this information.
Convenience eating
This decade has seen a definite shift in preference towards convenient and flexible dining more compatible with a busy lifestyle. Deliveries remain a small portion of total food sales, but have c.7% growth the past five years whilst the casual dining sector has experienced a boom in demand, only to falter in the last 18 months as higher labour costs, business rates and food costs have caught up with some chains, resulting in branch closures and CVA’s. However for restaurants that can keep control of their costs and offer dining flexibility, this shift in demand remains an opportunity.
Statista identifies that annual turnover of restaurants and mobile food services in the UK have grown at an astonishing rate, from £22m in 2008 to £38m in 2017. Aside from the threat presented by Brexit, these high levels of growth combined with changes in demand and a consumer-led ‘review/comment’ culture present an opportunity within the restaurant sector - but only for those who are able to stay ahead of the game.
If you have any queries or would like to discuss this issue further, please contact your local UHY adviser. Alternatively, fill out our contact form here.
References:
The most popular diet trends over the last 100 years, Insider
6 consumer trends shaping the future of restaurants, Restaurant Business
Number of social media users worldwide from 2010 to 2021, Statista
Annual turnover of restaurants and mobile food services in the UK from 2008 to 2017, Statista
