How Predicted Growth In The UK Restaurant Market Will Increase The Demand For Competitive Marketing

There’s been some great news for the UK restaurant industry as we step into spring with industry reports such as the new Lumina Intelligence UK Restaurant Market Report (2021/22) indicating that restaurant industry recovery is set at 94% of its 2019 value for 2022! This means that, when it comes to marketing, the restaurant market needs to look ahead, at the inevitable increase in demand from consumers, and how to create a competitive marketing strategy that reflects these demands.

In this blog, we delve a little deeper into what the Lumina report has reported, and that when it comes to marketing, restaurants need to look ahead to the inevitable demand from consumers with a competitive marketing approach.

Covid-19 Restrictions

There’s no doubt that the last two years, the pandemic has hit the restaurant industry hard, and for a time, it was difficult to see when and how businesses would recover, especially as last year’s Coronavirus restrictions (including no-dine in rules and outdoor only dining during April and May) had such an effect on recovery for the first six months of 2021 and indeed, the rest of that year, with outlets declining at a rate of -2.8%, with a net loss of 817 sites.

Lifting Covid-19 Restrictions

Restaurant's Post-Covid

This recovery continued with the lifting of Covid-19 restrictions, which allowed people to get back together again, and gave them the confidence to do so. This in turn has had a positive impact on restaurant footfall, and this higher demand will create a need for more creative marketing tactics that persuade customers to visit your restaurant over a competitors’ restaurant.

Demand for Growth

Thankfully, the decline shown in 2021 is behind us, and the report predicts positive figures for 2022 such as year-on-year growth of 59.4% and sales of £3bn for the top 10 branded restaurants by turnover. There’s more good news in that, rather than hearing about restaurants closing, leading brand restaurants are forecast to add a net 56 sites before the end of 2022, a 1.5% increase.

One of the most important findings from Lumina is that the UK restaurant market is forecast to see a compound annual growth rate (CAGR) of 1% from 2022F-25F, which means a market recovery of £18.3bn. This continued growth is forecast due to a number of factors, such as unrestricted trading in 2022 and consumer confidence in socialising outside the home (as Covid fears wane) increasing. The increase in sites, and therefore choice, also increases the need for competitive marketing. As a restaurant you’ll need to stand out from the crowd and really show off your USPs.

Delivery is here to stay

The pandemic didn’t just have an effect on customer consumption in the restaurant industry, it has also had an effect on how we order our food and paved the way for restaurants to offer click and collect as well as delivery options. Despite the lifting of Covid restrictions this trend shows no signs of waning and consumers now expect restaurants to offer these options.

Ensuring your online food delivery systems run smoothly is also important as having this added option can really help a restaurant gain a larger market share alongside being a sure way of attracting more customers.

Restaurant Marketing in 2022

Restaurant marketing Domino's Pizza Chef


Such pandemic-led trends coupled with continued growth in the restaurant sector means that it is vital for businesses to adjust their marketing strategy to a changing customer landscape.

Talking to a marketing agency can help enhance and generate interest in your restaurant. At Eat Marketing we can help you get started by carrying out a marketing and brand audit to assess everything you are currently doing and where your business sits in the marketplace. The recommendations from this audit will help to shape a successful marketing strategy for your restaurant business.

If you’re in the restaurant industry, we hope this latest report on restaurant growth in 2022 has added an extra layer of confidence when it comes to your own restaurant, and if you would like to meet this growth with some new marketing plans, get in touch, we’d love to help.

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