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Morning Briefing for pub, restaurant and food wervice operators

Thu 15th Dec 2016 - Pizza and Italian restaurants benefit from increased December foodservice spend
Pizza and Italian restaurants benefit from increased December foodservice spend: Consumers increase their spending at foodservice outlets in December by 12% more than the average month with pizza and Italian restaurant concepts benefiting in particular, according to new research by insights firm NPD Group. Monthly visit figures over the past five years showed customers looking for pizza and Italian either as a takeaway or on-premise meal generate half as many additional visits (56% more) in December than the average month. In December 2015, visits that specifically included a pizza shot up 26% (to 59 million or 12 million more than a normal month). Pasta is popular too, with December 2015 visits up 11% over the average month. There’s a big demand for pizzas especially, with 60 million servings sold in December 2015 versus 49 million in an average month. NPD Group said there’s nothing to stop the 60 million figure being exceeded in 2016. Turkey might be the traditional Christmas choice, but the consumption figures for pizza are roughly equivalent to every person in the UK indulging in festive pizza in December too. The research showed December is extremely important in the £50bn British foodservice industry, representing an opportunity for operators to tap nearly one billion visits and more than £4.6bn in sales. Foodservice establishments offering pizza and Italian in December can look forward to a 77% increase in total spend and a 14% increase in the average bill in this channel. Consumers in foodservice outlets generally spend 12% more in December than they spend in an average month, treating themselves to more expensive items, especially in pubs and restaurants. But the December indulgence can turn into a January hangover. An outlet selling pizza and Italian can expect 25% fewer visits in January compared with an average month. NPD Group UK foodservice director Cyril Lavenant said: “When we eat out in December, Christmas is the season of pizza and goodwill. There’s no doubt millions of Britons tuck into turkey at home on Christmas Day and other days over the festive period, but when we want to eat away from home then pizza and Italian races ahead. Our determination to enjoy the festive season creates strong traffic on the British high street that foodservice operators fight hard to capture. If every month was like December, the £50bn British foodservice industry would be worth nearly £60bn each year. That’s really talking turkey! But if December is good for the foodservice world, the industry slows in January. With many people dieting in January, operators battle to convince cash-strapped consumers to keep eating out.”


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