The NPD Group’s new Bakery Trends Tracker report show bakery outlets have over the past year seen strong growth in on-premise sales among major British quick-service restaurant channels.
The report shows Britain’s bakery chains and independents are now in a strong position to increase their off-premise business and challenge the well-known sandwich retailers, supermarkets and quick-service restaurants for a larger share of the food-to-go, click & collect as well as delivery channels.
Targeting food-to-go
Recent figures for the British out-of-home or eat-out foodservice industry show that bakery outlets are already a popular option for food-to-go customers with eight out of 10 bakery purchases consumed on the move.
But with bakeries only accounting for just £1.2 billion (5%) of Britain’s £22.5 billion food-to-go business annually, up from £1 billion five years ago, there is clearly room to grow.
Bakeries also only service 3% of total click & collect but sales are already increasing from this low base. While delivery business for bakeries is also still at a very low level, delivery volume is up nearly 63% in the past year and the value of delivery sales has increased by over 47%.
Peter Linden, Insight Manager Foodservice UK, The NPD Group, said: “Bakeries and patisseries are an important part of Britain’s £57 billion ‘out of home’ or eat-out foodservice industry.
“Many businesses – small and large – are moving away from their traditional bakery offering to a sharper food-to-go focus. This involves putting on good coffee, offering new food choices such as pizza, salads, pasta, hot sandwiches, croissants, pasties and much more, and meeting the demand for click & collect and delivery.
“Bakeries by their very nature focus on food-to-go and this is where the growth is, with sales in this part of Britain’s total out-of-home market having grown by 8% in the year to April 2019. Bakeries can secure more growth by increasing their share of the food-to-go market from their current level of just 5%, and by bringing their food-to-go appeal to dayparts they don’t normally service, such as dinner. They also have scope to provide delivery, especially at breakfast time and at weekends.”