UK – In its most recent report, food service analytics firm Meaningful Vision has revealed promotional activities remain an integral marketing strategy for UK restaurants, growing by 25% in QSR chains and 13% in casual dining restaurants in H1 2024.
The promos are becoming increasingly important in the sector as many restaurant chains struggle with rising cost pressures as the cost of ingredients and other raw materials continue to increase, a consequence of heightened inflation.
Prices in restaurants and cafes have increased by 8.2% in the first half of 2024.
These increased prices have dampened demand as more customers become increasingly price-sensitive, which has paved the way for value deals and promotions.
The report also reveals that 34% of UK residents eat out at least 3 times a month, the lifeline of the sector. The report attributes this sustained customer demand to value deals QSR and casual dining chains offer to customers.
The most favored strategy is price promotions, which constitute 64% of all promotional activity in casual dining chains and 86% in QSR chains in the UK.
Price promotion offers in the delivery channel are also frequently employed, with 57% of promotions offered by casual dining, and 68% of QSR featuring discounted products.
The average discount offered by promotions in the first half of 2024 was around 24% in QSR and 22% in casual dining.
Special price promotions dominate the QSR dine-in sub-segment with 79% of all promotional activity in 2024. These special price promotions are less prevalent in the casual dining sector, representing 43% of all promotions.
In contrast, a modest 3% growth was recorded in the delivery sector, where promo deals are a well-utilized marketing tool.
However, QSR and casual dining chains have embraced digital platforms to offer targeted deals to an increasing audience. The report revealed many chains have rolled out loyalty programs and app-based promotions, rewarding customers with discounts or deals and encouraging repeat business.
In H1 2024, the number of offers for free products in exchange for app sign-ups has surged reaching 4% of all promotions, a significant increase from the previous year.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE
