I am fortunate enough to be able to work for some of the leading businesses in their respective fields. One such company is MealTrak, a specialist Food to Go and Eating out of Home Data platform giving granular detail information to food manufacturers and retailers in this industry. Part of my work for MealTrak includes analysing thier continuous data and producing top line summaries. It is free to subscribe to MealTrak’s newsletter (mealtrak.com/contact) so if you’d like to receive your own copy, head on over to them and subscribe.
The Food to Go Sector in the UK has experienced a levelling off in this period, with Eating out of Home witnessing a 5% rise while Food to Go has experienced a slight 1% decrease. However, amid market challenges, there are those companies who demonstrate exceptional resilience, showcasing remarkable growth and setting a standard for competitors.
Discounters Take the Lead
While multiples still maintain their strength with continued growth at +14%, the Discounters have taken the lead with an impressive growth rate of +22%. The Cost of Living Crisis continues to impact consumer behaviour and recent news of increased mortgage rates only adds to this effect. Nevertheless, the Discounters are thriving and displaying impressive numbers despite still being lower than the multiples in terms of occasions.
Workplace, Vending, Mobile and Street Food on the Rise
In an encouraging sign of return to work patterns, the Workplace, Vending, Mobile and Street Food sector has seen a rise of 14% this time. This trend signifies a positive outlook for food providers targeting the workforce.
Fast Food and Takeaway Sector Challenges
The Fast Food and Takeaway Sector has experienced a slowdown with a notable decrease of 10%. While the overall sector is facing challenges, there are shining stars among the competitors. Once such standout performer is Domino’s Pizza in the UK and Ireland.
Domino’s Pizza: A Remarkable Success Story
Domino’s Pizza has reported exceptional H1 results, showcasing their ability to excel even amidst a challenging market landscape. Highlights from their recent results release include:
- Accelerated Expansion: The business opened 29 new stores with 11 franchise partners in H1, marking a significant acceleration compared to the previous year.
- Best Quarter for Openings: Q2 of this year was their best quarter for new store openings in the last 5 years, a testament to their strategic growth initiatives.
- Increasing Orders: Domino’s received 17.4 million orders in Q2 23, marking an impressive 2.8% increase from Q2 22.
- Growing Market Share: Their market share rose from 6.6% in Q2 22 to 7.3% in Q2 23.
MealTrak Data Validates Domino’s Success
MealTrak’s data tracking reveals Domino’s impressive growth in contrast to their competitors. The number of occasions tracked by MealTrak shows a remarkable increase of 7% in W116 for Domino’s. This stands out when compared to the competitors’ tracked occasions which have been decreasing. Domino’s also saw a rise of 105 in W114 and 13% in W115.
Eating Out – Pubs Take the Lead
Eating out of Home has shown a slight increase of 1% this period. Among the different establishments, Pubs have displayed the best growth with an impressive 16% rise YOY 52 weeks. However, Restaurants have face a setback with a 3% decrease during this time.
Missions – Quick, Easy & Sweet
Consumer preferences for something inexpensive combined with quick and easy options have increased by +20% and +17% respectively. Additionally, there is a growing demand for sweet treats with this particular mission witnessing a significant 14% increase.
In Summary
Despite challenges faced by the Food to Go Sector in the UK, Domino’s Pizza shows us that it is possible to stand out as a beacon of success. Domino’s continuously excels in an ever-evolving market. With their accelerated expansion, increasing market share and strong performance, they serve as an inspiration to the Food to Go and Eating out of Home Industry. As consumer preferences continue to shift, there are valuable lessons to be learned from Domino’s success, particularly in areas of innovation, customer engagement and adaptability. In times of uncertainty, businesses like Domino’s show that the right strategies and a customer-centric approach can lead to triumph in the very competitive food industry.