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Bakery equipment could be in even more demand if the market continues its upwards trajectory.

Research firm The NPD Group says data from its new Bakery Trends Tracker report shows bakery outlets have over the past year (YE April 2019) seen the strongest growth in on-premise business among major British quick-service restaurant (QSR) channels, with sales and visits up more than 19% and nearly 18% respectively in the past year.

For those catering equipment firms with bakery-related appliances within their portfolio, this growth could herald a further uptick in fortunes.

The NPD Group says Britain’s bakery chains and independents are now in a strong position to increase their off-premise business and challenge the well-known sandwich retailers, supermarkets and quick-service restaurants for a larger share of the food-to-go, click and collect as well as delivery channels.

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Recent figures for the British out-of-home (OOH) or eat-out foodservice industry show that bakery outlets are already a popular option for food-to-go customers, with eight out of 10 bakery purchases consumed on the move. But with bakeries only accounting for £1.2bn (5%) of Britain’s £22.5bn food-to-go business annually, up from £1bn 5 years ago, there is room to grow. Bakeries also only service 3% of total click and collect but sales are already increasing from this low base. While delivery business for bakeries is also still at a very low level, delivery volume is up nearly 63% in the past year and the value of delivery sales has increased by over 47%.

Britain’s bakers and patisseries are in good shape based on their recent performance in total sales, visits and servings. Bakery outlets boosted sales by 6% in the year ending (YE) April 2019 and increased visits by 2.2%, outperforming pizza and chicken outlets, which saw visits drop. The best evidence for success is in servings, with bakery outlets recording a 9% jump to 1.17bn servings – the strongest servings growth in the past year of any other quick-service-restaurant (QSR) channel.

Peter Linden, insight manager foodservice UK, The NPD Group, said: “Bakeries and patisseries are an important part of Britain’s £57bn ‘out of home’ or eat-out foodservice industry. Many businesses – small and large – are moving away from their traditional bakery offering to a sharper food-to-go focus. This involves putting on good coffee, offering new food choices such as pizza, salads, pasta, hot sandwiches, croissants, pasties and much more, and meeting the demand for click and collect and delivery.

“Bakeries by their very nature focus on food-to-go and this is where the growth is, with sales in this part of Britain’s total OOH market having grown by 8% in the year to April 2019. Bakeries can secure more growth by increasing their share of the food-to-go market from their current level of just 5%, and by bringing their food-to-go appeal to dayparts they don’t normally service, such as dinner. They also have scope to provide delivery, especially at breakfast time and at weekends.”

Tags : bakerybakery equipmentmarket researchnpd groupresearchThe NPD Group
Clare Nicholls

The author Clare Nicholls

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