Delivery and takeaway sales slip in January as consumers tighten spending

Delivery and takeaway sales at Britain’s top managed restaurant groups were 2% down in January compared to the previous year, CGA by NielsenIQ’s latest Hospitality at Home Tracker shows.

The ordering-in market has continued to plateau with year-on-year sales dropping for 15 months in a row. January’s delivery volumes fell by 12% as some consumers reduced the frequency of their orders, although spent more when they did so.

However, delivery and takeaway sales remained substantially ahead of pre-Covid levels after they became a more regular consumer habit during lockdown. Combined, they accounted for 17 pence in every pound spent with managed restaurant groups in January 2023.

Karl Chessell, CGA’s director - hospitality operators and food, EMEA, said: “The levelling out of delivery and takeaway sales since late 2021 has been a double-edged sword for restaurant operators.

"Positively, it shows that many consumers have returned to their pre-Covid-19 habits, replacing deliveries with the special experiences that only eating out can provide. But it also indicates that other consumers are reining in their spending as household bills continue to soar. With business costs so high as well, and third-party delivery platforms taking a large slice of sales, protecting already thin profit margins will be a challenge throughout 2023.”