NPD: Goodbye full service, casual dining is good enough

London / UK. (npd) What choices are Britons making when they eat out? Foodservice industry figures from global information company The NPD Group show that casual dining as of year ending March 2014 has increased annual traffic by 11,6 percent compared to five years ago. That means 47 million more visits to casual dining restaurants now than in 2009. This is a strong performance given that the overall market in Britain for eating out of home has lost 4,8 percent of its traffic in the same five year period. Among some 30 brands that NPD Group says are contributing to the growth of casual dining are: Cafe Uno, Nandos, Wagamama, Gourmet Burger Kitchen, Strada, Yo Sushi, Zizzi, Carluccio´s and Giraffe. The success of casual dining compares to quick-service restaurants serving fast food (burgers, chicken, fish and chips, sandwiches, and including coffee shops and bakery outlets), which recorded only 4,2 percent traffic growth over the same five year period. Casual dining is taking business from full service restaurants, which have seen traffic decline by 11,4 percent since year end March 2009.

What is the appeal of casual dining?

It is not only price. Despite the average bill per visit of 11,90 GBP for a dinner, casual dining´s growth has outpaced the cheaper fast food channel, where the average bill per visit is much lower at a tempting 5,06 GBP. Casual dining is only slightly more affordable than the full service channel, where bills per visit work out at 15,17 GBP. Instead, The NPD Group says consumers like the combination of the ambiance and quality of food of a full service restaurant and the speed and delivery of a fast-food / quick service restaurant. Britons also see casual dining as a good family option when eating out. At dinner time, 36 percent of all the meal occasions in casual dining restaurants are due to family visits, whereas they only account for 25 percent of the meal occasions in restaurants generally. The «family factor» is a much stronger motivation for choosing casual dining than with fast food and full service choices. Around 11 percent of the visits in casual dining are because «Kids like it there»; this motivation only applies 6,5 percent of the time for restaurants in general.

The best of both worlds

«People are telling us that casual dining is the best of both worlds – speed combined with a good ambiance», said Cyril Lavenant, Director of Foodservice UK. «The new casual dining restaurants are proving popular with people who want good food in a pleasant environment but who are also keeping an eye on what they spend. In difficult economic times, consumers need to save money. That helps to explain why full service restaurants have suffered. But casual dining is successful because it offers a good experience when eating out and a good option for when people want a «treat» for themselves or their kids. The food is also priced at the level that makes it easy for younger people to dine out».

Casual dining set to grow further in Britain

The casual dining sector remains small, accounting for only four percent in traffic terms of Britain´s total foodservice market that generates eleven billion visits annually. But The NPD Group says further growth is likely. Casual dining visits in Britain grew 1,5 percent in the year ending March 2014 while fast food restaurants grew 0,6 percent. Cyril Lavenant added: «The success of casual dining in Britain is the beginning of a new way of eating out; this is definitely not a blip. At The NPD Group we believe that casual dining restaurants will continue to take business from full service restaurants».

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