New research suggests that Greggs takes almost £2 out of every £100 spent in the UK hospitality sector.
Hospitality Data Insights (HDI), a provider of card spending insight and pricing data to the hospitality sector, has carried out research into spending habits, which has revealed how the Newcastle food-on-the-go firm is proving to be a shining light. The organisation has analysed the performance of sector areas including pubs and bars, delivery, and coffee and sandwich shops, and compared it to figures from four years ago to reveal how consumers’ habits have changed.
Mark Bentley, business development director of HDI, said: “In the realm of bricks and mortar, Greggs shines as the standout performer, with almost £2 out of every £100 spent in UK hospitality finding its way to its shops, up from £1.60 previously. Other notable winners include Loungers, Craft Union, and the broader category of ‘competitive socialising’ venues.
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“The pace of opening new sites clearly plays a pivotal role in overall share growth, and with Greggs recently opening a record 17 shops in one week, it’s clearly not going to be slowing down anytime soon! However, I believe that the ability to scale businesses is intricately tied to delivering a relevant consumer proposition consistently, with the ability to really understand their customers and tailor their offers effectively to local markets being key differentiators for the most successful businesses.”
HDI’s card spending data tracks the purchasing behaviour of 10.2m people across the UK hospitality sector and has given insights from the 12 weeks ending December 5 2023. Research showed that delivery within hospitality emerged as the frontrunner, claiming 12.5% of sales—a significant jump from its 6.5% share before the pandemic in 2019.
Mr Bentley said: “Coffee & Sandwich shops follow suit, securing 12.7% of hospitality sales with a 2.0% increase. This shift means an additional £8 out of every £100 spent on hospitality now flows into delivery, and coffee and sandwich shops. Meanwhile, casual dining has seen the most substantial drop in spending, with its share down by 3.3%, with pubs and bars collectively attracting 4.8% less spending than they did in 2019.”
He added: “Over the past four years, the UK hospitality industry has weathered a storm of challenges, from the disruptive uncertainties of the pandemic to escalating inflation, a cost of living crisis, labour shortages, and unexpected disruptions like train strikes. It’s been a rollercoaster ride with numerous highs and lows, and just when optimism surfaces, another curveball seems to be hurled into the mix.
“As we gaze into 2024, my sense is that the broad shape of the hospitality sector is going to remain relatively stable. While significant shifts in socialising and working patterns have occurred, they’ve largely stabilised, and we’re unlikely to witness further dramatic changes in how people engage with the hospitality sector in the coming years. Despite inevitable challenges, such as further inflationary pressures with the National Living Wage increase in April 2024, businesses can now adopt a more strategic approach and plan for the future.”
Separate figures from the digital bank Monzo have also revealed the popularity of Greggs in its North East heartland. Monzo’s yearly spending data - which sheds a light on the shopping habits of its more than eight million customers in Britain - showed that fast food chain McDonald’s was the top place for eating out in every city in the UK except for Sunderland and Newcastle, where people preferred Greggs.
Monzo’s figures suggest that Greggs is a favourite lunchtime venue around the UK, with everywhere except London preferring Greggs to Pret A Manger. Londoners spending almost £23m at Pret in the last year alone, Monzo’s figures suggest.
