First lockdown cost food and drink industry £751m a week in lost sales, research shows
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The first UK-wide national lockdown cost the food and drink industry £751m a week in lost revenue, according to the latest research.
Out-of-home food consumption fell 36 per cent in the first half of 2020, as the closure of restaurants and cafes and the shift to remote working forced Brits to eat more meals at home.
According to analysis by Kantar, just one week of lockdown cost £312m in lost spending on snacks and non-alcoholic drinks in Great Britain.
On average, £751m per week was lost on total out-of-home food consumption during the first month of national lockdown.
The fall in spending was not completely compensated for by the rise in grocery sales, the research found. In Great Britain, combined grocery shopping and out-of-home food purchasing fell 11 per cent in the first half of the year.
However, meal delivery spending grew from £157m per month in 2019 to £521m a month in the second quarter of this year, offsetting some of the losses.
Kantar strategic insight director Lucy Chapman said: “While hospitality businesses have been some of hardest hit by the Covid-19 pandemic, the innovation and growth seen in home delivery services has been a bright spot for the sector.
“Following a trend well established in Asia and Latin America, Brits are increasingly using food deliveries as a chance to treat themselves at home – something that has been much needed this year.
“There are opportunities for traditional out-of-home brands to find new ways to help consumers recreate restaurant experiences while going out is restricted.”