London and the South lead the charge
The latest analysis of the foodservice sector from Horizons has pinpointed a number of regional differences around the UK.
Food and drink sales in the foodservice market grew at 1.6% in 2005. But there were substantial differences across the regions, and the North-South divide become wider. While sales in the south of England grew by 2.2%, the North, Scotland and Northern Ireland each saw an increase of only 0.8%.
Sales in Wales totalled £710 million and averaged £2.23 per meal, just about half the average spend per meal in London. Outlets in Wales also experienced the lowest average income at £43,730 over the year; in Scotland the figure was £68,814 almost exactly the same as outlets in the West Country.
These differences are due to a wide range of factors ranging from underlying economic conditions to the number of restaurants in an area – the more restaurants, the greater the opportunity for people to eat out and the greater likelihood that they will actually do so. Nevertheless, the comparatively good performance of the south, and London in particular, is due to the growth of the economy in those regions coupled with the impact of tourism and growing international business.
Past experience shows that regional trends are cyclical and regions that do will this year are not necessarily those that will prosper next.
