UK takeaway orders fall 12% as households try to rein in spending

theguardian.com:

UK households ordered 12% less takeaway food in January than a year before, while the sector also faced more competition from restaurants and cafes after the lifting of pandemic restrictions.

Despite the fall in the number of items ordered as customers tried to rein in spending amid the cost of living crisis, spending fell by just 2% as inflation pushed up the cost of each dish, according to the Hospitality at Home spending tracker by analysts at CGA and NielsenQ.

Karl Chessell, CGA’s director for hospitality operators and food in Europe, said the decline in sales would put pressure on takeaway restaurant’s profits in an already tough market where costs from labour, food prices and energy are on the rise.

“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.”

The figures come as households finally face big winter energy bills, with increases in per unit costs combining with cold weather in late January.

About a third of those aged between 25 and 44 reported they were borrowing more money or using more credit than usual between September and the end of January compared with the same period a year before, according to the Office for National Statistics, as food, energy and mortgage or rental costs rose faster