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Mon 10th Sep 2018 - Delivery on the rise but not dampening appetite for eating out, sector launches nine-point plan to safeguard industry
Food delivery on the rise but not dampening appetite for eating out: Food delivery is on the rise – but it is not dampening the appetite for eating out, according to new research. Analysis for Deliveroo by consumer insights firm Morar HPI found over the past six months the proportion of people ordering food for delivery has increased from 31% to 36%. The research found the increased use of mobile technology is driving food delivery. A total of 46% of consumers now order food via a website or app (up 8% since July 2017) compared with 18% in person (down 3% since July 2017) and 36% on the phone (down 5% since July 2017). During focus groups undertaken for the research, participants highlighted busier home life, changing work patterns and the pressure of raising a family with work as key reasons for them ordering more meals at home. This comes as the number of people cooking at home has dropped from 94% to 89%. The younger generation has seen the largest rise in ordering in, with almost three in ten under-30s ordering more food for delivery compared with just 6% of people aged over 50. Deliveroo said orders for delivery are part of the growth in video on-demand as people choose box sets over the dinner table. The research found 67% of people consumed their last delivery in front of the television while only 18% sat at the table. And while food delivery is on the rise, this has not discouraged people from eating out. Morar’s brand tracker found in 2018, the proportion of people dining out each week has remained stable at 60% while carry out (down 10%) and cooking (down 5%) is in decline. The study found 76% of people were likely to dine at a restaurant if they had previously enjoyed an online delivery from there. The survey found more than three quarters cited cost as the largest barrier to dining out more regularly. More than half (57%) who have visited restaurants less often in the past six months have also ordered fewer takeaways while those who have eaten out more also have a higher propensity to order food delivery, again suggesting disposable income is a key influence in people’s dining habits. The data was revealed at Deliveroo’s first conference for restaurant partners, held at the company’s London headquarters in Cannon Street. More than 250 restaurant partners attended the conference. Deliveroo UK managing director Dan Warne said: “Customers still want the restaurant experience to socialise and celebrate, which is why eating out remains broadly stable. But when people spend the night at home, whether they are back late from work or are choosing a night in with a box set, delivery means more opportunities for our restaurant partners. We are proud our growth boosts others.”

Sector calls for employer NIC threshold to be doubled in nine-point plan to safeguard industry: UKHospitality has called for the threshold of employer National Insurance Contributions to be increased from £6,000 to £12,000 to “stimulate greater recruitment and cut business costs” as part of a nine-point plan to safeguard the industry. The Hospitality Workforce Commission 2030, a report by a group of All Party Parliamentary Group chairs, makes nine recommendations aimed to boost employment and retention in the sector, which employs 3.2 million people. The inquiry was commissioned by UKHospitality. The report follows a select committee-style series of parliamentary evidence sessions scrutinising the challenges and opportunities being faced by employers, which heard from industry leaders, employees and MPs. A call for evidence resulted in 50 organisations and individuals contributing to the final report. The report calls on the government to act decisively to help secure the future of the sector and boost the UK’s economy by supporting a cross-industry campaign to tackle negative perceptions of a career in the sector; help provide better quality information about opportunities in hospitality; and collaborate with businesses to improve engagement between businesses and students. UKHospitality is also critical the setting of the National Living Wage rate remains independent and non-politicised. Chief executive Kate Nicholls said: “The UK’s hospitality sector is a resilient and inventive one. It has helped provide growth, jobs and investment in every region and has been vital for the regeneration of UK high streets following turbulent economic periods. However, without government support and immediate action on escalating employment costs, hospitality businesses will struggle to continue to provide these opportunities for people throughout the economic cycle. The recommendations in this report map a path to a post-Brexit hospitality workforce. It is recognised free movement in its current form will end, and it is critical government supports the sector in promoting itself to young people and providing the framework for improved career development. The full potential of the sector will only be realised with positive action from the government to ensure this is achievable. The Hospitality Workforce Commission 2030 exhaustively examined the opportunities and challenges our sector faces and actions to be taken. If acted upon these will enable us to provide even greater investment, and provide more jobs, in communities across the UK. Implementing the recommendations will allow us to more effectively provide careers and opportunities, particularly for harder-to-place workers, and help the government hit its apprenticeship target. With political and economic instability in the aftermath of Brexit, this is too good an opportunity for the government to miss. I thank everyone who gave their time to contribute to this comprehensive investigation and I sincerely hope the government acts upon our recommendations.”

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