Eating Out: The 2025 Reality
14th March 2025
As the UK foodservice market continues to grow, with a projected £177.7 billion by the end of the decade, businesses within the sector must stay attuned to leading trends.
Mintel’s latest report delves into how restaurants, bars, cafes and bakeries can continue to elevate this success, despite industry-wide challenges on the horizon which could threaten this potential for progress. So, let’s tuck into the key insights and help you thrive in this competitive landscape.
Market Overview
In 2024, the UK foodservice market reached £137.4bn – showing a healthy 4.5% year-on-year growth. This upward trajectory is expected to continue, with a projected 29% growth between 2024-2029. Notably, the fast-food sector is leading the growth, closely followed by event catering and full-service restaurants. This booming market offers numerous opportunities for foodservice operators to lean into innovative and exciting trends and initiatives.
Current Consumer Trends
Age-Based Preferences
Research shows that consumers aged 16-34 are highly focused on value and deals, making them a key demographic for businesses offering affordable yet high-quality products, or those that boast deals, offers or limited-time promotions.
For customers aged over 35, data reveals that they tend to prioritise quality and a personalised service. Offering premium items and ensuring a top-tier customer experience – from the moment they encounter your business – can help to attract and retain these diners.
Wholly understanding these preferences and how to appropriately cater to them can ensure your brand is appetising to a wider customer base, maximising revenue, profit and popularity.
Technology & Innovation
Aligned with the pursuit of cost-effective dining for younger clientele, there’s a growing demand for tech-driven experiences, such as self-service kiosks and personalised apps. In fact, almost half (48%) of 16-34-year-olds engage with reward apps, creating a seamless process for ordering online and in-store. In turn, this promotes exciting opportunities for businesses to partner with apps, drive loyalty, and enhance sales.
Plus, the AI phenomenon is taking the sector by storm. The implementation of artificial intelligence, like Wendy’s AI-powered drive-thru, is gaining momentum globally, improving ordering experiences, inventory management, and forecasting demand.
Dining Habits
The majority of consumers still prefer to dine in, but 82% of consumers also regularly opt for takeaway options, highlighting the need to for versatility and flexibility. And, around half of customers favour meal deals, showcasing the desire for value-orientated bundles (such as sandwich combos or complimentary sides).
Sector-Wide Challenges
Despite the impressive growth and potential within the industry, challenges remain that need to be addressed to maximise success. Right now, the most prominent that are set to alter the industry, include:
Rising Costs
As with everything right now, costs are rising – ingredients, energy bills, wages, and more. Additionally, from April 2025, National Insurance Contributions (NICs) are set to increase to 15% in the UK, putting greater pressure on profit margins, particularly for small and medium-sized businesses.
Declining Consumer Confidence
Across the board, consumers are more sceptical than ever, with confidence in brands dropping from 38% to 30% last year. This can impact spending habits – especially on non-essential items – meaning that authenticity is key, as well as promoting positive and personalised customer service experiences.
Declining Pub Numbers
The number of pubs in the UK has decreased since the start of the century. Making up a significant portion of the eating-out sector, this could influence sales, growth and potential across the entire industry, highlighting the need to embrace gastropub trends and innovative initiatives.
Key Takeaways
Balance Tradition with Technology | combining traditional service with innovative technology allows businesses to cater to both consumer preferences for personal interaction and convenience.
At-Home Options | with a growing interest of restaurant-branded heat-at-home meals, offering dining, takeaway, and delivery options allows you to cater to the needs of every consumer – no matter what they fancy.
Experienced-Based Menus | a third of consumers are seeking culturally diverse food options, so adding international offerings to your menu, aligning with seasonal trends, or hosting interactive experiences can attract adventurous diners – and see them coming back for more.
To stay competitive and successful throughout 2025 (and beyond), the industry will require businesses to balance innovation with great service – embracing new technology while continuing to focus on high-quality and personalised experiences. Plus, catering to both premium and value-driven budgets, as well as offering both dining-in and takeaway options, will maximise customer potential and growth opportunities. Recognising and adapting to these evolving trends will allow you to innovate, engage consumers, and continue to thrive.
At Kara, we’re here to help you stay ahead of the curve with the latest trends in the foodservice industry. Whether you’re looking to enhance your offerings, improve customer experience, or discover new ways to elevate your menu, we’ve got the solutions you need. Reach out to us today or explore our range of wholesale products to give your menu the upgrade it deserves.
