Spending squeeze keeps delivery and takeaway sales flat in March

UK restaurant groups achieved fractional year-on-year growth of 0.7% in their delivery and takeaway sales in March according to data from CGA.

It ends a slow first quarter of 2025 for the sector, after a like-for-like increase of only 1.7% in February and a 0.6% drop in January.

However, the latest performance was better than wider restaurant trends which recorded a year-on-year drop of 5.7% in managed restaurant groups’ sales in March.

Sales from takeaways and click-and-collect orders rose by 1.7% on a like-for-like basis, while deliveries were exactly level. Total combined sales, including from venues opened in the last 12 months, were 11.0% up on March 2024.

CGA stated that weak delivery and takeaway growth reflected ongoing pressure on many consumers’ spending despite a slowing of inflation, as well as concerns about the outlook for the wider economy.

Sales may also have been impacted by warm weather in March, which drew some people out to drink in pubs rather than use restaurants. The timing of Easter, which fell in March in 2024 but April this year, also affects the comparisons.

Karl Chessell, CGA by NIQ’s director – hospitality operators and food, EMEA said: “A flat first quarter for at-home sales is a disappointing result for restaurant operators. Coupled with ongoing pressure on operating costs, especially from the new burden of National Insurance contributions from April, it means margins will be under severe strain at some groups.

“After a long-term movement towards the convenience of deliveries, the better performance of takeaways lately suggests some consumers may be switching orders to avoid the premium of delivery. While underlying demand for eat-at-home orders remains good, real-terms growth will continue to be hard-earned in the second quarter.”