Takeaway sales in the UK have dropped year-on-year for 17 months in a row, new research found.
As the industry gets used to life after the lockdown-driven takeaway boom, operators must prepare for more subdued sales against a backdrop of soaring input costs.
In April, sales dropped by 1% annually, a slight improvement from the 6% fall in February and the 3% drop in March, research from the CGA found.
“Deliveries and takeaways by value attracted 14% of outlet sales in April—sharply down from 24% in April 2022,” said the market research group.
Companies increasing menu prices mitigated the drop in sales as volumes fell “significantly”, CGA added.
“Delivery order volumes in April were 10% below the same month in 2022, while takeaway and click-and-collect orders contracted by 9%,” the group said.
Karl Chessell at CGA added that while the drop in sales “partly reflects the steady return of consumers to restaurants” there was no escaping the fact inflows into the industry are “significantly down in real terms.”
“Conditions will remain challenging for some time, but with signs that inflation and household bills may ease in the second half of 2023 we remain very confident about the long-term outlook for hospitality,” Chessell concluded.
Shares in groups like Deliveroo PLC (LSE:ROO), Uber Technologies Inc (NYSE:UBER) and Door Dash have all rallied in the year to date, all up over 25%.
Just Eat Takeaway.com NV (LSE:JET, NASDAQ:GRUB) has had a slightly harder year, dropping by 20%.