Cost of living pressures hold down takeaway sales in February
Weak growth has been attributed to a squeeze on many consumers’ spending in light of rising household costs, as well as uncertainty about the economic outlook
British restaurant groups continue to struggle for growth in delivery and takeaway sales in February, according to CGA by NIQ’s Hospitality at Home Tracker, which revealed that like-for-like sales were up by only 1.7% from the same period in the year before.
The like-for-like sales growth, which was below the UK’s current rate of inflation, follows a 0.6% drop in January which was the tracker’s first negative number for more than 12 months.
The flattening of restaurants’ at-home sales is in line with eat-in trends measured by the separate CGA RSM Hospitality Business Tracker, which recorded a year-on-year sales rise of just 0.1% in February.
Weak growth has been attributed to a squeeze on many consumers’ spending in light of rising household costs, as well as uncertainty about the economic outlook.
According to CGA’s Consumer Pulse research, which was carried out in February, showed that well over half of Brits remain either severely (18%) or moderately (39%) impacted by the cost of living crisis, and 42% said they were going out to eat and drink less frequently – more than double the 18% who were going out more often.
A breakdown of CGA’s Hospitality at Home Tracker indicates that deliveries provided slightly stronger sales growth in February 2025, rising 2.4% year-on-year.
Meanwhile, takeaways and click-and-collect orders inched up by just 0.4% – their lowest figure since August.
Karl Chessell, director of hospitality operators and food at CGA, said: “The flatlining of both eat-in and at-home sales has made it a concerning start to 2025 for many hospitality groups. Rising costs continue to compromise consumers’ discretionary spending and they are also intensifying the pressure on restaurants’ menu prices and profit margins.
“Forthcoming increases to employers’ National Insurance contributions will further weaken some vulnerable businesses, and support is urgently needed to sustain this vital sector. Better weather will hopefully encourage more people to go out in the next few months but the outlook for 2025 remains challenging.”
