- Britvic’s latest Soft Drinks Review has found delivery accounted for £2 in every £10 spent in foodservice in 2021[1]
- Foodservice delivery is expected to reach £13.3bn in value this year[2]
- The opportunity has continued to grow, even after the lifting of Coronavirus lockdowns[2]
Foodservice businesses have found strong and growing revenue streams in delivery following the pandemic, unlocking a significant opportunity to bolster soft drinks sales from consumers who have incorporated the format into their everyday lives, Britvic’s 2022 Soft Drinks Review reveals.
After moving into delivery out of necessity to continue trading during the pandemic, foodservice outlets have opened new and permanent revenues, which grew by 50% in 20202. Volume sales rose by a further 6.5% in 2021, adding £0.7bn of additional revenue[2].
Nearly a third (29%) of delivery occasions now contain a soft drink[3], with a high proportion of orders including a combination of food and drink, as consumers add on sales to justify delivery fees or negate them by reaching a value threshold2.
Food and drink delivery is expected to grow by 5.3% in 2022, showing the format isn’t slowing, providing foodservice businesses with £13.3 billion of revenue2. Even after lockdown restrictions eased, consumers made delivery part of their repertoire, increasing orders by 9% in the 12 weeks to 23rd January 2022[2].
New delivery occasions
Delivery accounted for £2 in every £10 spent in foodservice in 2021 and is on an upward trajectory as many consumers maintain their order-in habits post-pandemic1.
In the past, foodservice delivery had relied on the ‘treat’ occasion, usually in the evenings and at weekends, but now Brits are ordering meals to their homes during the day and are doing so on most occasions to have a better work/life balance[4].
The number of people ordering lunch at home to spend more time with their partner has increased by 27% since 20205. Almost a third (29%) are ordering at dinner time because they have no food in the house, while another 26% are ordering in to spend more time with family and friends[5].
“Clearly, foodservice has changed its relevance in households across the UK following the pandemic, this year’s Britvic Soft Drinks Review shows,” said Katy Watts, Head of Channel Development (Foodservice & Licensed), at Britvic. “Foodservice has become a part of people’s everyday lives as more options and delivery services have emerged, making it more accessible and permissible for people to order-in the brands they’d buy from when out of home.
“There is more room for growth within the format, especially when it comes to meal deals, as big brands with long-established presence in the market are dominating, achieving 57% share of delivery occasions, increasing to almost 80% when soft drinks are included[5]. Quick service restaurants capitalise on soft drink delivery due to the availability of meal deals that often include soft drinks. Meal deals and box formats continue to prove popular and are easier for customers to order than selecting multiple options6.”
Bountiful opportunities
Within the wider foodservice and licensed market, foodservice takes roughly a 50% split of deliveries with and without drinks[6]. QSR is the largest identified opportunity for soft drinks delivery, with 29% of occasions containing a drink, 37% of which are soft drinks7. Historically, outlets focus on draught serves, such as Pepsi MAX, but delivery opens the opportunity to cater to more tastes with packaged, including single-serve Pepsi variants, Fruit Shoot for children and larger one or two-litre bottles for family meal deals.
Lagging, however, is restaurants, with two in every three occasions consisting of food only, and soft drinks being included just 19% of the time7. This represents a big opportunity for added soft drink sales, as restaurant brands have shown high adoption of delivery Right This Minute sales[7].
“The data shows some foodservice segments, such as fast food, are already capitalising on delivery, with a high inclusion of soft drinks,” continued Watts. “However, research from the Soft Drinks Review also highlights many opportunities for growth, particularly within restaurants, where these sales can be increased. This may be down to such brands not providing food and drink meal deals on their websites or apps, or perhaps not prompting customers to order a drink before concluding their transaction.”
Having the right technology in place, which is simple and easy to use, is pivotal to growing delivery sales further, having the potential to drive revenues both in outlet and through delivery[6]. This can be achieved by ensuring a website or app is simple and contains the right amount of detail and imagery, as well as information on a product or deal.
Perfecting a digital offering can bolster add-on soft drinks sales, with 73% of consumers likely to upgrade their soft drink choice if a pop up on an app or website suggests it[7]. Having a brand named or pictured is also essential on digital menus, with 76% of consumers specifying brands when ordering a drink8.
“Consumers don’t always know they want something until they see it, which means ordering apps and websites must work harder for outlets to achieve greater cut through on soft drinks sales,” added Watts. “A pop-up that asks a consumer if they’d like to add a soft drink to their order, for example, is a way to increase sales and drink revenues on orders that may have otherwise completed without one[8].”
Delivery and takeaway in brief[9]
- 66% think price is the most important factor when ordering in
- 56% base their decisions on past experiences
- 53% of consumers choose where to order from based on cost
- 53% would order a family feast bundle that included soft drinks
- 42% decide based on cuisine type
- 39% consider delivery time
- 35% order based on delivery cost
The Britvic Foodservice Soft Drinks Review is available to download at Britvic.com
Notes to Editors:
For further press information or to request any infographics from the report, please contact the Britvic team at Cirkle via britvic@cirkle.com
All reader enquiries should be directed to: Customer Services, Britvic Soft Drinks on 0345 7581781
[1] Lumina UK Foodservice Delivery Market Report, March 2021
[2] Lumina UK Foodservice Delivery Market Report Feb 2022
[3] Lumina Intelligence Eating and Drinking Out Panel 12WE 26.12.2021 & CTP Dec 2021
[4] Lumina Eating and Drinking Out Panel 2020-22
[5] Lumina Intelligence & Britvic - Influencing Shopper Behaviour Jan 2021
[6] Lumina Intelligence Eating and Drinking Out Panel Jan 2021 to Dec 2021
[7] CGA Menu Report 2021
[8] CGA Pubs & Bars state of the nation Q4 2021
[9] Mintel: Attitudes towards Lunch Out-of-Home - UK - June 2021