Convenience meals and premium products boost out-of-home market

Key drivers

The key drivers behind this growth for food and drink in the OOH market were cafés, bakeries and sandwich shops, and full-service restaurants (FSRs). In contrast, quick service restaurants (QSRs), workplaces, coffee shops, and pubs and bars saw growth, but their market share declined.

Figure 1. 2024 value growth per channel OOH (food and drink)

Source: Kantar out-of-home, 52 w/e 29 December 2024

The growth of cafés, bakeries, and sandwich and salad shops was driven by strong value offerings, as well as the rising trend of earlier dining out times reflected over the festive period according to IGD (Away from home market: 2024 review & 2025 outlook), increasing demand for snacks and convenient, on-the-go meals. Similarly, FSRs, sit-down restaurants that offer a more leisurely dining experience, are also seeing a surge in growth. This is due to an uptick in social occasions, driven by a desire for shared experiences and post-pandemic social reconnection, and consumers’ need for enjoyment and treating. On the other hand, QSRs, such as fast-food restaurants, are witnessing a decline in market share due to substantial price hikes, challenging their value for money perceptions.

Cafés, bakeries, sandwich and salad shops

Cafés, bakeries, and sandwich and salad shops have remained resilient in 2024 OOH performance, as the average dish price of cafés declined by 1.9%, while bakeries rose completely in line with the market at 6.6% (Kantar, 52 w/e 29 December 2024). According to Kantar, consumers are continuing to show loyalty to this channel, as reflected by 11.1% and 4.3% year-on-year increases in volume sales for cafés and bakeries, respectively. This suggests that price sensitivity is less of a barrier here, likely due to this channel’s alignment with convenience, speed and on-the-go consumption habits – which remains a key driver for OOH purchases. This growth is also driven by a shift towards earlier dining times and snacking occasions, which aligns well with this channel.

The growth for café’s, bakeries, and sandwich and salad shops is highly beneficial for the pork sector as it heavily overtrades in this channel, making up a total of 42.5% of total pork dish volume sales. Sandwiches and savoury pastries, like sausage rolls and bacon rolls, are the key dishes driving this performance, reflecting pork’s versatility and practicality as a quick meal or snack option. According to Kantar, pork dishes in these channels gained share, seeing 13.4% and 8.3% year-on-year increases in volume for cafés and bakery channels, respectively, despite a price decrease of -1.9% in cafés and a 6.6% price increase in bakery channels (Kantar, 52 w/e 29 December 2024). This suggests that consumers are willing to absorb modest price increases when products meet their need for convenience, and highlights pork’s strength in the on-the-go and snacking market.

FSRs

With an increase in price (+7.5% YoY), the value of FSRs rose by (+10.1%) in 2024, and volumes in 3.4%, according to Kantar. Despite prices increasing slightly below the market average, FSR offerings are generally more premium, continuing to appeal to consumers who are seeking indulgent or treat-led occasions. This trend is driven by the increasing popularity of social events, which are increasingly viewed as an opportunity to dine OOH. Consumers are also placing an emphasis on enjoyment, with 90% of occasions in 2024 chosen primarily for this reason – a slight increase of 0.8% from 2023. While this trend is evident across all age groups, those aged 55+ make up the largest portion, likely due to their higher disposable income.

This growth in FSRs benefits the lamb sector, as this channel accounted for 15.8% of total OOH lamb volumes in 2024. Lamb continues to overtrade in this channel, with meat-centred hearty meals and Indian cuisine being the main contributors. A drop in price of 1.2% resulted in an 11.5% increase in the volume of lamb dishes sold, suggesting that consumers are responding positively to more affordable lamb options. This ultimately contributed to a 10.1% rise in total spend for lamb dishes (Kantar, 52 w/e 29 December 2024). Kantar also reported that lamb dishes were predominantly consumed for enjoyment purposes in 2024, highlighting lamb’s ability to resonate with OOH behaviours for enjoyment, indulgence and experience.

While beef is typically associated with QSRs due to its strong presence in burgers, burgers also feature in FSRs – though are declining. A steep increase of 9.9% in beef prices in this channel suggests that beef is particularly exposed to price sensitivity, potentially leading consumers to trade down to cheaper alternatives. Within the channel, premium dishes like steak grew by 3.7%, while beef burgers – which can be seen as less indulgent – declined sharply by 21.7%, reflecting a shift towards more treat-led choices.

QSRs

While FSR value increased, according to Kantar, QSRs are losing market share (-0.9% YoY). This decline is fuelled by a combination of factors – growing health consciousness among consumers, weaker performance in both enjoyment and value perceptions, as well as the sharpest price hike (+9.4%) compared to other channels, hindering their value positioning. To address rising prices and maintain consumer loyalty, operators are innovating products and offering strategies like affordable sharing options and in-store premiumisation opportunities to cater to price-sensitive consumers.

As highlighted, QSRs play the most significant role in beef’s OOH performance, with 51.8% of total beef dish volumes going through this channel. Despite beef burgers being the largest contributor, representing 70.3% of all QSR burger occasions, like the channel, a significant 22.7% increase in price has led to a slowdown in growth, with a year-on-year decline of 8.4% in share (Kantar, 52 w/e 29 December 2024). This signals a growth in price sensitivity among consumers, who may be opting for more affordable alternatives within QSRs.

As beef burgers lose share within the QSRs channel, lamb is gaining momentum – particularly through kebabs, which have seen a 20.2% year-on-year volume increase. QSRs now account for 67.9% of total lamb dish volume, underlining the channel’s importance for the protein. A modest price rise of just 2.2% may have contributed to this shift, positioning lamb as a better-value, flavourful alternative among consumers.

Key takeaways

• Convenience and value for money are increasingly important; therefore, ensuring red meat products are prominent in on-the-go and snacking sessions are crucial
• Treating and indulgence are gaining traction across OOH occasions, making it essential for red meat dishes to communicate quality and exclusivity. Opportunities to raise the reputation of red meat, particularly British meat are discussed here (Opportunities to raise the reputation of red meat in the dining out market | AHDB)
• For more detailed beef, lamb and pork performance, please see our Foodservice dashboards. If you would like more red meat insights by channel, please contact the Strategic Insight team.

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