Pizza Express and Zizzi's 'buy one get one free' vouchers boosting the UK's foodservice industry

The UK foodservice market has increased at a compound annual growth rate (CAGR) of 1.36% over the past five years, reaching a total of £65.14 billion in 2012.

A reduction in costs and an increasing awareness of nutritional information remained the major trends in the sector throughout 2012. Furthermore, the recession resulted in a substitution of fine dining with casual dining and fast food transactions, as demand from full-service restaurants shifted towards quick service restaurants (QSRs).

The UK foodservice sector has been recently driven by the changing demographics of the population and a shift in consumer preferences towards nutritional and healthy eating.

The health and wellness trend has grown strong in the UK, leading Brits to spend more money on food and beverages in health centers. The British government has put increased efforts into encouraging consumers to eat 'healthy' through governmental campaigns and other means; one of the reasons is that the UK's obesity rates are now the highest in Western Europe. As a result, consumers are increasingly demanding healthier products, to which the industry as a whole has had to respond.

The sector saw the emergence of a number of new trends, including restaurants offering discounts and promotional offers in the economic crisis period and then cutting back on promotional discounts in 2011 to reduce costs, and reducing portion sizes without changing menu prices, in order to deal with food inflation.

As a means to remain in business, foodservice operators sought opportunities to attract cash-strapped consumers with promotional vouchers and discounts. Pizza Express, Zizzi and Bella Italia were among those that offered 'buy one, get one free' meals, among other offers, as operators competed with ready-meal deals offered by supermarket chains, which would allow consumers to spend less by staying in.

According to research conducted by HitWise Intelligence, the 'Pizza Express voucher' was the most popular branded voucher search, with the only other company to have a branded voucher in the top 10 apart from restaurants being Tesco.

Food consumption in the UK is being shaped by a number of factors. Changing demographics have influenced tastes, with a whole new ethnic food sector emerging around the large numbers of immigrants from Central and Eastern Europe. More significantly, the uncertain prognosis for the UK's economy is causing value for money to remain at the forefront of consumers' minds.

Foodservice will continue to face tough competition from retailers, which have strongly promoted a number of deals that are clearly presented as an alternative to eating out. Ready meals are set to grow as a result of these meal deals offered by retailers.

For more information on the UK foodservice market, see the latest research: UK Foodservice Market

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