The Takeaway Economy Report - Innovating Commissioned by Just Eat for the British Takeaway Campaign - Just Eat plc
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Growing
The Takeaway
Economy Report
Commissioned by
Just Eat for the
Investing British Takeaway
Campaign
Innovating
An engine Welcome to the Takeaway Economy Report, commissioned
by Just Eat for the British Takeaway Campaign, a new body
of growth representing all those involved in the supply and preparation
P6-11 That drives of takeaway food. It was prepared with the support of the
Centre for Economics and Business Research (Cebr)
innovation and examines the valuable economic, social and
£9.9
billion
36,855 P12-15 cultural contribution that the takeaway
dedicated industry makes to the UK.
takeaways
across the UK
At the
total UK spending on
takeaway (2016)
heart of
of restaurants communities
2016
72% say apps have been
positive
2009
P16-19
for their business
And invests
12.1%
of total
34% increase in takeaway
spending since 2009
Most popular cuisine by UK Nations
in the future
spending on
food in 2016
was on 45% Indian
P20-25
takeaway
231,350
J BS
in the takeaway sector
of in-person payments
39%
of restaurants
Italian £11.2
billion 30,000
in takeaways now using apps NEW J BS
(13.2%) of GV contactless increased orders
outside of mealtimes
Chinese by 2021
t h A
of
1 /8
41,000
w
ho
le f
projected size
o
new jobs created
od services
of takeaway sector
since 2009
by 2021
£2.7 billion 23%
ec s
takeaway market
to
r
2016 TED
STAFF WAN
in London & South East
65% 59% 2014
largest in the UK
of takeaways
currently unable to
of takeaways now offer of takeaways now offer
LOW FAT LOW SALT 21% growth recruit the staff they need
in Northern Ireland
options options since 2014 – largest regional increase
30,000
jobs supported
in the North West
What is takeaway? 37%
88%
of takeaways ys a
re active
ly
report
In this report, takeaway is defined as food wa i skills shortages
ts
kille
d staff f
rom
nv
i
a
that is eaten off premises from restaurants, cafes in specific areas
ke
u
olv
41% of ta
place strong value on
cr
ou
ed in comm
need to re
relationships with
and other catering establishments. The food can be hot
tside
local community 41%
or cold and the orders can be collected or delivered. What is not 29%
EU
included as takeaway is food and snacks purchased in shops such as
un
ity
act
supermarkets, newsagents and greengrocers.
ivities
2 3
skilled staff and a tax regime that device they are on and to move Having made a career bringing to help launch the new British
can hurt small businesses. seamlessly between devices when new tastes to British consumers, Takeaway Campaign (BTC) –
checking on their order status. I can also testify to the vibrancy a new body representing all
This report helps launch the British
of a market defined by ever- those involved in the supply and
Takeaway Campaign. Chaired And, to support the increasing
greater choice, convenience preparation of takeaway food.
by Ibrahim Dogus, the Campaign demand our restaurants face,
and responsiveness to
brings together those who supply we executed the world’s first The BTC, which I am delighted
consumer demands.
and prepare the nation’s favourite delivery by robot to help them to to chair, will seek to safeguard
foods – providing one voice for keep pace with order volumes The eye-catching figures in this our industry’s future success.
the sector. at peak times. We are driven to Takeaway Economy Report – on It brings together independent
help our restaurants navigate the the sector’s steady growth, even restaurants and major players
“The takeaway Commissioned by Just Eat, a operational challenges of today’s “The British during the last recession, and in in the sector, including Just
leading global marketplace for marketplace and continuous
industry is an online food delivery and a founding technological innovation will be
Takeaway the number of jobs it is forecast to Eat, who have supported this
create over the next few years – report, to ensure we are working
economic beacon. member of the British Takeaway fundamental to that. Campaign will bring therefore come as no surprise. together to tackle the challenges
Campaign, the report draws together the sector
It continues to on analysis from the Centre for Driving demand to high streets,
that takeaways face.
As the sector grows in size,
grow well above Economics and Business Research new technologies are helping to ensure we are and scope, this has an impact These include getting the right
the rest of the (Cebr) and a comprehensive to reinforce the bond between working to tackle not just on our culinary options skills training in place for the
survey of takeaway restaurants, to customers and their local for a night in, but on the health sector, ensuring anticipated
UK economy.” show the trends shaping the sector takeaways. These relationships
the challenges that
of our economy – with the changes to the immigration system
in the UK today. reinforce takeaways’ central role in takeaways face.” sector supporting a £9.4 billion don’t exacerbate labour shortages,
Executive summary by their local communities. Whether contribution (GVA or gross value and overhauling the current
Graham Corfield, UK As the report shows, the takeaway it is sponsoring sports teams
added) to the UK economy. business rates regime to make it
Managing Director, Just Eat industry is an economic beacon. or providing food to charities, Foreword by Ibrahim Dogus, fairer and more transparent.
Total UK spending on takeaway takeaway restaurants are active in Chair, British Takeaway But as the sector grows, the
Takeaway restaurants sit at the reached £9.9 billion in 2016 – a their communities and care about Campaign challenges it faces also increase The economic, social and cultural
heart of our high streets and 34% increase on 2009. In the same their customers – 88% of takeaway in importance. Whilst takeaway contribution that the takeaway
communities, and are an engine period, the sector has created restaurants place a strong value on In cities, towns and villages across spending is expected to hit £11.2 sector makes to the UK is
of economic growth. From familiar 41,000 new jobs – now employing these relationships. the country, takeaway restaurants billion in 2021, barriers to growth deservedly recognised in this
names to small, independent 231,350 people across the UK. are flourishing. – from skills shortages to an report. Takeaway restaurants
restaurants, takeaways are It continues to grow at a rate well The takeaway sector can approach unwieldy business rates system across the country should take
embracing new technologies and above the rest of the UK economy. the future with confidence. Total From my own background
– remain a headache for many pride in its findings – and I hope
adapting rapidly to consumers’ spending is expected to grow starting and growing independent
budding entrepreneurs in the that everyone will take note of the
appetite for better food and This growth has been driven by steadily and reach £11.2 billion restaurants in London, I can speak
sector, which we need to tackle. sector’s impressive growth, and
greater choice. the sector’s ability to adapt to by 2021. This will help takeaway with first-hand experience of the
exciting future.
consumer demand for more variety restaurants create 30,000 new jobs dynamism of a sector where small, This is why I am proud,
This has helped the sector and more convenience. Takeaways across the UK. family-run businesses compete along with the other founding
grow by more than a third since have rapidly taken advantage of with international chains. members, to use this report
the beginning of the decade, new technologies – online apps in However, supporting this strong
employing more people than particular are now a mainstream growth will require investment in
ever before. Just Eat has been part of business for restaurants the sector’s future – particularly
operating in the UK since 2006 and offering takeaway. in skills. Almost two-fifths of
has witnessed an unprecedented restaurants currently face skill
and ongoing shift within our Innovation has been central to the shortages – especially in more
industry. We understand the needs industry’s success and now, more skilled positions: 78% of those
of our 27,650 Restaurant Partners than ever, the sector needs to be reporting problems had issues
better than anyone. They have where the customer is. This is why recruiting chefs.
always supported positive change. over the last year we have invested
in developing ordering functionality At Just Eat, we’re passionate
However, to support the future on Facebook Messenger, Amazon about tackling these issues, and
success of takeaway restaurants, Alexa and Xbox – we know that highlighting the growing contribution
we need to address the challenges today’s customers want to be of the takeaway sector to our
they face – including shortages of able to order takeaway from any economy and our communities.
4 INTRODUCTION INTRODUCTION 5
The UK takeaway sector is
a thriving engine of growth
The takeaway sector has been one of the strongest performing areas of the UK economy over the
last decade. The number of dedicated takeaways increased almost 10% from 2013-15, to 36,855.
The small, often family-run businesses that characterise the sector have adapted rapidly to new
technologies and our changing appetites. This has supported a strong growth in demand, as
consumers take advantage of greater choice and more convenience than ever before. Spending
on takeaway grew to £9.9 billion in 2016, up more than a third (34%) since 2009.
Spending on takeaway has grown by 34% since 2009 Greater cuisine choice and changing lifestyles
are driving increased household spending
£9.9bn
Takeaways represent a small but growing at Just Eat increased from 66 in 2010 to 127
£8.8bn
£7.4bn portion of household food expenditure – in 2016 – and provide greater quality and
12.1% of total spending on food in 2016, or convenience for busy consumers.
an average of £30 a month. This spending
has increased significantly in recent years – Increasingly, households are valuing the role that
up 25% since 2009 – growing steadily even takeaway restaurants can play in contributing
2009 2012 2016 during the last recession. towards a balanced lifestyle – as a healthy
alternative to a home-cooked meal. This can
This growth reflects the ability of the sector to be seen in the sharp growth of new takeaway
Increase in UK takeaway expenditure – nominal £
cater to a greater variety of consumer demand options since 2014 alongside the enduring
– for example, the number of cuisines on offer popularity of the UK’s favourite takeaway options.
Takeaway is bigger than the broadcasting and entertainment industries
£9.9bn
To put the above into context:
measured by revenue, the
takeaway sector is greater in size
£8.6bn
12.1% of total
than two of the UK’s most high
£8.1bn spending on food
profile industries, telecoms and
entertainment and events.
in 2016 was on
1 takeaway
3
2
Data from other sectors drawn from ONS (2015) data.
Takeaway sector statistics from 2016 (Cebr analysis). TELECOMS TAKEAWAY ENTERTAINMENT
6 1 AN ENGINE OF GROWTH AN ENGINE OF GROWTH 1 7
An industry that is supporting
record employment MY TAKEAWAY ECONOMY
Sharon Carline, owner of Brunch, Prescot
The increase in consumer spending has supported strong growth in employment. Across the UK,
the takeaway sector has created 41,000 new jobs since 2009, and now employs a record 231,350
“Thanks to our little dream we now employ
people – more than telecoms, advertising and Premier League football. 12 people from our local community.”
As a sector led by dynamic small businesses – Takeaways are a When we founded Brunch back in February Just six months after joining Just Eat we were
75% of takeaway restaurants employ fewer than
five staff – the employment options it offers are
leading UK employer 2013 there were only two of us with a little dream awarded Best Takeaway in the North West at the
that we could really add something to our local British Takeaway Awards (BTAs) and we had to
varied. It provides many people with their first,
community. We wanted to create a place where increase staff numbers to six to accommodate
often part-time, taste of the world of work, but
people could enjoy a delicious breakfast or lunch the increase of business. In December 2016, we
also offers a rewarding career path for budding TAKEAWAYS 231,350 using high quality, locally sourced ingredients in a amazingly won the BTAs again and once more
entrepreneurs and highly-trained catering staff.
pleasant, neighbourly environment. we had to increase our staff levels to keep up
As of 2016, the industry directly supported with the demand.
The first few years have been hard work, but
more than 79,000 full-time employees, and over TELECOMS 214,100 very rewarding as we built up a strong local Four years in and we’re a thriving local business.
128,000 part-time employees – alongside 23,000
customer base. Our game changer was back We are hoping to expand our current premises
self-employed entrepreneurs.
in May 2015. Our customers kept on telling in July 2017 to triple our space and go from 6
us that in our area all types of cuisines were to 18/22 covers. That will allow us to open an
ADVERTISING 181,200
available for delivery, but with the exception of a evening bistro and offer our customers a new,
Since 2009 the takeaway good old English breakfast menu. We filled that exciting, early evening menu.
sector has created gap by teaming up with an online aggregator
and it’s been the ideal platform for us to reach Thanks to our little dream we now employ 12 people
41,000 new jobs PREMIER LEAGUE
FOOTBALL 103,000
customers, grow our business and get Brunch to from our local community and if all goes to plan we’ll
the next level. employ a further two drivers and another four team
ONS (2015), Premier League (2015) and Cebr (2016) data members, taking us to a fantastic team of 18.
8 1 AN ENGINE OF GROWTH AN ENGINE OF GROWTH 1 9
Takeaways’ supply chain
boosts the UK economy
Measured by gross value added (GVA) – the new wealth created by the sector (its output less all
inputs) – takeaways contributed £4.5 billion to the UK economy in 2016.
This is equivalent to over one-eighth (13.2%) of the entire food services sector, which includes
restaurants, cafes, canteens, pubs, bars, events, catering and, of course, takeaways.
It also means the takeaway sector contributed more to the UK’s economy than the holiday industry
and passenger air travel.
In addition, every £1 in GVA generated by the sector stimulates a further 54p of activity through the
industry’s supply chain. When the spending of takeaways’ employees and workers in the supply
An industry
chain is taken into consideration, each £1 of takeaway sector GVA supports an additional £1.08 of
GVA through the economy. taking off –
GVA generated
When taking into account these ‘multiplier’ impacts, the total contribution of the takeaway sector is by takeaways
estimated at £9.4 billion in 2016, including:
£4.5bn GVA £2.45bn £2.45bn
directly generated generated along their supply generated as a result of the
by takeaway restaurants chain (such as spending on spending of those employed by
food manufacturers who provide takeaway restaurants and
ingredients for the takeaways) their suppliers
ONS (2015) and Cebr (2016) data
In addition to the people employed directly in the sector, through its supply chain the takeaway
£4.2bn £4.5bn £4bn
sector supported an additional 38,970 full-time equivalent (FTE) jobs, alongside a further 34,300 FTE TRAVEL AGENCIES & TAKEAWAYS SCHEDULED PASSENGER AIR
jobs supported by takeaway sector employees’ spending across the economy – a total of 73,270 TOUR OPERATORS TRANSPORT
(FTE) additional jobs.
Takeaways’ contribution
Takeaways make
to UK tax revenues
up over one-eighth
of the entire food The £4.5 billion GVA contribution to GDP
generated by takeaways produced £1.63 billion
services sector for the UK Exchequer in 2016, up 9% from 2014
and an increase of more than 40% since 2009.
10 1 AN ENGINE OF GROWTH AN ENGINE OF GROWTH 1 11
Takeaway is at the forefront
of the digital revolution
Continual investment in future technology has half (49%) now use two or more apps to bring
been central to the growth of the takeaway in orders to their business. Using these new
sector over the last decade. Small, independent platforms to engage with customers is now
takeaway restaurants have embraced digital mainstream business, and 72% of restaurants
innovation, with new apps helping to provide a say that online apps have had a positive impact
greater choice and quality of food for consumers. on their business.
Almost 35,000 establishments now use online Similarly, technologies are improving the in-
apps – over a third of takeaways, restaurants person experience in takeaways – contactless MY TAKEAWAY ECONOMY
and cafes in the UK.1 card payments totalled 45% of all transactions Chris Cheah, owner of Chicken George, Luton
made in takeaway restaurants between October
Takeaway restaurants have been early adopters 2016 and March 2017. This gives the sector
of new technologies. The majority (54%) of the fourth highest rate of contactless card
restaurants using these apps have been using transactions across the economy – above “I came back to this industry because its
them for more than two years, and almost newsagents, clothes stores and hotels.2
future is so exciting.”
What makes takeaway so special in this country We put on a special every two weeks ranging from
is that it continues to innovate and grow, and Southern fried duck’s leg with sweet potato fries
Chicken George is a great example of that. and smoked garlic mayo through to home-made
Online apps mac and cheese with local Woburn Estate black
We are a 32-year-old fried chicken business and smoked ham. My home-made special hot sauce
are central to of restaurants
72%
last year we were named as the best takeaway in made with Scotch bonnets is so popular we can’t
the takeaway say apps have been
positive
the UK. My dad founded it, with just our mum as keep up with demand – we even bottled it up for
restaurant part-time help and eight items on the menu. They people to buy as Christmas gifts.
business model for their business sacrificed everything, working all hours, seven
days a week to make the business a success. I came back to this industry because its future is so
exciting. I trained in a Michelin-starred restaurant
Now we’re the second generation doing the same. and won rosettes as head chef in a number of
We have loyal customers who have grown up with restaurants. I have the same approach to food in
us, but we are also attracting new customers online Chicken George as I did there – buy local from
and we’ve over 50 items on the menu because we people with the same ethos on quality as you.
know consumer tastes are changing.
We know we’re doing something right because
We make nearly everything fresh on site from slow it’s full on from the moment we open the doors to
roasting our pulled pork for up to 12 hours, through when they close. Online orders are booming. We
to our signature dish of sticky BBQ ribs, which has have queues that go outside the door and round
been a best seller since my dad first created it. the corner on weekend nights. Like my mum and
It’s a labour of love: we hand cut and trim all the dad, we literally do not have any downtime. But
ribs every morning seven days a week and make we’re not going to stop – this is a business and an
1
ONS data (2015): there are 93,285 restaurants, cafes, takeaways and food stands in UK. Just Eat estimate approximately 35,000 restaurants use online apps (including Just Eat, Hungry our own sticky BBQ sauce for them, the recipe for industry on the up. Roll on the next 32 years.
House, Deliveroo and Uber Eats).
2
UK Cards Association, May 2017, www.paymentsense.co.uk/blog/top-20-merchants-contactless-payments/ which is a closely guarded secret.
12 2 DRIVING INNOVATION DRIVING INNOVATION 2 13
New cuisines and healthy options
are transforming takeaways
MY TAKEAWAY ECONOMY
Salik Saeed, co-owner of Calowries, Putney
The instant choice new online apps offer across convenience and flexibility offered through new
a range of local takeaway options has helped online platforms. Restaurants report a substantial
drive up demand by more than a third since increase in orders outside of traditional “People are more educated in the food choices
2009. It is also leading to a greater range of
options available as the sector responds to
mealtimes – 39% of takeaways have seen an
increase in such orders since using online apps.
they are making and there are more restaurants
increasingly demanding consumers.
This trend can also be seen in the sharp growth
which are reflective of those choices.”
This can be seen in the fast pace of growth in of non-traditional takeaway options over the
the popularity of cuisines that have not been last three years – from morning breakfasts (with Calowries is a prime example of the innovative things is we’ve not advertised so far – our main
traditional staples of the British takeaway. orders up six-fold) to the lunchtime sandwich and changing face of takeaway. We are three awareness comes from being on Just Eat. And
Takeaway orders from Middle Eastern and (orders for which have increased five-fold). friends and two of us are IT consultants. A lot week-on-week, month-on-month we are growing.
North African restaurants have increased three- of professionals like us don’t want to waste time
fold over the last three years, supported by The sector is also responding to a shift to more making food at home and we would rather buy We initially thought it would be gym-goers
a dramatic increase in popularity for culinary health-conscious appetites, with restaurants healthy cooked meals. But we couldn’t find who would be our customers, but what has
options (relatively) new to the British high street – now offering a greater range of menu options anywhere local to us that did it at an affordable surprised us is the variety of people ordering.
orders for Syrian takeaway food have increased in response. An impressive 96% of takeaway price, so we thought why not do it ourselves We have everyone from housing estates to
ten-fold since 2014, for example. restaurants now offer vegetarian options, whilst and cater for this market. multi-million pound mansions. We’ve got singles
almost two-thirds (65%) offer low fat options and and families, and a generational mix between
Takeaways are also responding to consumers 59% offer low salt options. A further 73% offer We developed the menu and recipes and we young and old. What we have is customers
as they become accustomed to the greater small portion sizes. brought in a team to follow these and produce wanting to eat healthy. We’ve people coming in
it. As you would expect salad is popular, but and ordering combinations of food that match
Takeaways are reflective of changing health behaviour our best sellers are the grilled products, like their calorific intake.
chicken shish and king prawns. Even if people
want a bit of indulgence we try and make that The increasing reality for takeaway is that we now
healthy. On our menu are things like chips and have consumers who know what is good for them
chicken nuggets, but we do them air fried – we and what is not. People are more educated in the
even have a range of low calorie burgers. food choices they are making and there are more
96% 73% 65% 59% restaurants which are reflective of those choices.
We’ve quickly realised that there is huge potential There is a huge demand and at Calowries we’re
VEGETARIAN SMALL PORTION SIZES LOW FAT LOW SALT in the health market. And one of the amazing proof the market is running with it.
14 2 DRIVING INNOVATION DRIVING INNOVATION 2 15
Takeaways are helping regional KEY
£ Spending per region Employment per region Spend per household per week
economies grow and thrive
Northern Ireland Scotland
The increasing demand that the sector has supported over the past decade – with spending on
takeaway up a third since 2009 – has seen growth in orders of long-standing favourites, but also a £ £0.51bn £ £0.83bn
proliferation of new options for consumers, as the sector continues to introduce UK customers to
7,837 20,173
new flavours from right across the globe.
£12.93 £6.50
We can also see distinct regional preferences across the four UK Nations. While Italian remains
the most common takeaway option across most of England, Indian food is the top preference in
Scotland, and Chinese food is the favourite in Wales and Northern Ireland. But takeaway has a
regional impact beyond our cuisine preferences. North West North East
£ £1.1bn £ £0.38bn
29,816 10,450
It’s bringing in new revenue £ It’s increasing demand £6.91 £6.46
As the takeaway sector grows, it is bringing in In the context of growing takeaway orders
new revenue and supporting new jobs in regions across the country, analysis of the different
across the UK. regions reveals significant variations in Wales Yorkshire & Humber
demand. Northern Ireland in particular has
The largest takeaway markets are in London experienced a takeaway boom in recent years
and the South East, which accounted for over a
£ £0.4bn £ £0.85bn
– with spending growing by 18.8% since 2014,
quarter (£2.7 billion) of spending on takeaway in the highest expenditure per household in the 11,089 23,107
2016 – up 5.5% from 2014. UK (£55 a month).
£5.63 £6.91
But the sector’s vibrancy can be seen across the In London, where the high density of takeaway
country. Since 2014, the areas with the highest restaurants adds to ease of delivery and wider
growth were Northern Ireland (21.3%) and the consumer choice, the average household
North West (13.2%). expenditure was £36 a month (making up 12.6% West Midlands East Midlands
of total average household spending on food,
It’s supporting more jobs compared to 12.1% on average across the UK). £ £0.78bn £ £0.65bn
13,823 18,542
As demand for takeaway continues to rise, Manchester, Liverpool and the other cities
the economic growth this has stimulated has and towns of the North West have also seen £6.10 £6.10
supported tens of thousands of new jobs up and a marked growth in household spending on
down the UK. takeaway – up 11.8% since 2014 to an average
of £30 a month spent by each household on
In the North West, the region’s hearty appetite for takeaway. South West South East London East
takeaway supported almost 30,000 jobs in 2016 –
a rise of 10.3% since 2014. £ £0.7bn £ £1.3bn £ £1.4bn £ £0.96bn
18,700 29,162 23,569 25,082
£5.62 £6.59 £8.20 £7.11
16 3 AT THE HEART OF THE COMMUNITY AT THE HEART OF THE COMMUNITY 3 17
MY TAKEAWAY ECONOMY
Takeaways play an important Stratis Kyriacou, owner of Chris’s Fish and Chips, Barwell
role at the heart of communities “I’m a big believer that if you support your
community then they will support you.”
Takeaway restaurants’ contribution to local high streets is underpinned by their deep roots in local Community engagement is one of my favourite We also cater for over a dozen residential care homes
communities – and as they continue to grow in popularity, they increasingly value the importance of aspects of my business. I’m a big believer that if you where we provide fish and chip suppers and give the
giving back to the local community. support your community then they will support you. home kitchens a rest day – we know the residents
love the newspaper wrapping and reminisce about
Notably, 88% of takeaway restaurants see being a valued part of the local community as “important” We do a lot with our local football, cricket, bowls the days when they used to have fish and chips by
or “very important”. This is reflected in the work they take forward in their local areas. and cheerleading clubs, not only providing finance the seaside, so that’s nice.
and sponsorship but offering food at cost to help
More than two-fifths (41%) are actively involved in community-based activities – 62% of these them at fundraising events and keep these important And it’s important to look after the next generation
restaurants sponsor local activities or sports teams, and 61% provide food to charities, care homes community organisations going. too. We go into local schools to talk to children about
or local events. the food chain, so where their fish and chips come
We also support a small village that has no shops or from. We also heard about the kids at a local school
Takeaways involved in community-based activities pubs. We help organise a monthly skittles and quiz not having the budget for food for their prom night.
night with a fish and chip supper which, again, we We provided the food for free. Some things are just
provide at cost. What’s great about it is that it gives the right thing to do.
Sponsor local the community a sense of occasion and something to
activities / look forward to. My favourite community event was last Christmas. Our
62% sports teams
local Santa got a parking ticket for parking his sleigh
I do think it’s important to be a good corporate in a pedestrian zone when meeting and greeting local
41% citizen. This year we rolled out a housebound delivery
service for the elderly. We have access to a key so
shoppers and children. As this was for charity, and
was taking money away from them, we weren’t having
we can go straight in, deliver a customer’s food, plate that at Chris’s Fish and Chips! We arranged for Santa
Provide food to
it up and have a little chat. Often we might be the only to come down the next week, we paid his fine, and got
61% charities, care
homes or local
events
face they see all day, so we see it as an important
social service.
a load of media coverage which helped to raise even
more money for the charity. Santa got to get on with
his job to provide presents and we got on with ours to
provide fish and chips for the community.
18 3 AT THE HEART OF THE COMMUNITY AT THE HEART OF THE COMMUNITY 3 19The takeaway industry
will continue to be a
beacon of growth
The takeaway sector is optimistic about its future – anticipating strong growth up to 2020 and
beyond. As an industry that has proved resilient to economic downturn, embraced new technologies
and adapted successfully to changing consumer demand, it is building on solid foundations.
Over the next five years, total spending on takeaway is expected to grow a further 13%, reaching
£11.2 billion by 2021.
Annual growth of 2.6% over the Forecast total household takeaway expenditure (£billion)
next five years MY TAKEAWAY ECONOMY
Mike Springer, owner of Big Mike’s Calypso Kitchen, Croydon
11.2
10.9
10.6
10.4
The takeaway market is expected to continue 9.9
10.1
9.5
growing at a strong rate, averaging annual growth 9.3
of 2.6% over the next five years. Total spending
on takeaway will reach £11.2 billion by 2020/21 “I may have been a one-man band, but
as greater variety and convenience, supported
by online aggregator platforms, continue to fuel online I had a presence equal to all the
growth and takeaway demand. 2014 2015 2016 2017 2018 2019 2020 2021
bigger restaurants.”
30,000 more jobs by 2021 Jobs growth in takeaway
What I love about the takeaway industry is the restaurant they don’t just come in at dinner
way that technology supports entrepreneurial time. I prepare my delicious fresh food at all
As the sector continues to grow, it will provide an spirit. When I set up my business in March hours of the day. But I don’t mind that: this
increasing number of jobs across the UK. 2015 the only conventional bit of it was the business is my passion, and my passion is
261,000
190,000 Jobs food. I didn’t have a shopfront – instead I had a helping it to be successful.
Based on current projections of demand, takeaway Jobs separate unit in my house where I was able to
employment is expected to reach 250,000 by cook food that I believed was the authentic taste I was named Best Takeaway Chef in Britain in
2020, and will rise above 261,000 by 2021 – a of Barbados. Crucially, I had an online presence. 2016, less than two years after setting up. The
2010 2021
growth of 37% on 2010. accolade was ultimately for the food and service
I may have been a one-man band, but online we provided, but without the technology allowing
The value of takeaway to the UK economy
I had a presence equal to all the bigger me easy access to customers none of this would
GVA to top £5 billion restaurants in Croydon. In my first week of have been possible.
trading we made a rather modest £84. But what
Demand for takeaway is estimated to have added was important was that we were making good The ultimate proof point that our business is
£4.5 billion in value to the UK economy in 2016. food and people liked it – we knew this because successful is that I’ve outgrown the kitchen
This is expected to continue to grow steadily in of the great reviews they left on the site. unit in my home. We’re now in the process of
the years to 2021 – by a total of 13% to reach £5.1 £5.1bn acquiring a shop so that even more people can
£4.5bn
billion a year by the beginning of the next decade. It meant that word of mouth quickly spread and enjoy the Big Mike food experience. This is a
then suddenly things just took off, with orders great industry to be part of.
2016 2021 flooding in. And unlike a traditional shopfront
20 4 INVESTING IN FUTURE GROWTH INVESTING IN FUTURE GROWTH 4 21Ensuring there are enough staff to meet increasing demand
Whilst employment within the takeaway industry is set to rise over the next five years, it is expected
that the numbers will be insufficient to meet the demand for employees. This is a common concern
shared by restaurant owners, who are already facing skills shortages. At present, almost a quarter
(23%) of restaurants claim that they are unable to recruit the staff needed to run their business.
Businesses cite a combination of barriers facing firms around skills. Out of those struggling to recruit and
retain staff for their business, 38% state that the biggest barrier is their lack of access to skilled labour.
Over a third (37%) of restaurants report skills shortages in specific areas. These shortages are
felt most acutely in skilled kitchen roles, where 78% of those reporting problems have had issues
recruiting chefs.
On top of this, 34% of restaurants reporting problems say they are experiencing skills shortages for
To help takeaways continue to front of house staff, whilst 53% say they are experiencing skills shortages for delivery drivers.
thrive, we need to address the The skills that the takeaway industry needs more of
challenges the sector faces
Although the outlook for the takeaway industry over the next five years is generally very positive,
DRIVERS OF
there are still barriers to growth. Chief among the issues that will be addressed by the British CHEFS D FRONT AFF
ST
E WANTED HOUS
E
Takeaway Campaign is an unwieldy business rates regime for small firms and predicted skills WANT WANT
ED
shortages – action is needed on these to ensure that the sector can continue to thrive.
78%
34%
Countering the challenge of the business rates regime
Concerns about potential brakes on business growth can be detected in the sector – close to a third
(29%) of restaurants are not confident about the prospects of the UK economy. In the short term,
uncertainty about the new business rates regime – which has significant cost implications for many 53%
high street businesses – is weighing on many restaurants. More than a third of restaurants (35%) feel
they will be negatively affected by the recent review of the business rates regime.
22 4 INVESTING IN FUTURE GROWTH INVESTING IN FUTURE GROWTH 4 23Investment in skills and the
right approach to immigration
are vital to takeaways in a
post-Brexit environment
As Britain leaves the European Union – and the This highlights the importance of developing a
flow of labour to the country risks being restricted world-leading technical education system, which
– it is likely that the impact of the skills shortages will help ensure the British takeaway sector,
facing restaurants will be intensified. Over a third along with the broader hospitality and catering
(37%) of takeaways believe that the UK’s decision industry, has the skills it needs for the future. The
to leave the European Union will make it more government has proposed technical A-levels
difficult to recruit staff for their business. (‘T-levels’) – an initiative to offer reinvigorated MY TAKEAWAY ECONOMY
vocational qualifications across 15 areas of Ajmal Mushtaq, owner of Mushtaqs, Hamilton
Meanwhile, evidence suggests that a significant technical training, including ‘catering and
proportion of businesses within the takeaway hospitality’ – and these will play an important
industry would benefit from more flexible role in addressing the takeaway sector’s skill
immigration rules for skilled workers coming
from outside the EU. Over one in four (29%)
shortages.
“I’m very proud of the role that Mushtaqs plays
of businesses say they need to recruit skilled Takeaway restaurants recognise this, with 53% in developing the skills of local young people.”
labour from outside the European Union to of restaurants thinking that the new T-level will
support their business. help address the skills shortage in the restaurant
industry. Looking at the qualification in greater Mushtaqs is a restaurant based in Hamilton, What I am most proud of is our investment in
The existing skills shortage, combined with this detail, 51% of restaurants would like to see food just outside Glasgow. We have a very simple developing the skills of young people in our area.
uncertainty surrounding the future supply of production and basic kitchen skills included operating model. We only serve the Indian food We invest heavily into charitable and community
labour into Britain, underlines the urgency of within its programme, whilst 42% would like to we eat at home, hence the strapline ‘Proper initiatives, and central to that is the Mushtaqs
equipping our domestic future workforce with the see culinary skills included, and 47% would like Indian Food’. We are firmly mapped onto Youth Employment Programme (MYEP).
skills required by employers. to see customer service skills covered. Hamilton’s food scene and our customers have
an appetite for fast, efficient service. My team The programme helps young people
delivers our customers exactly what they want – learn valuable skills such as teamwork,
great food within 29 minutes to their door. communication, working under pressure and
The skills that takeaway restaurants want the T-level to focus on professionalism. MYEP has helped over 120
We know that works – we started with six schoolchildren who have left school with little or
employees in 2009 and the team size has grown no qualifications move into employment in the
to 68, so we are a successful local business and past six years.
47% 95% of our employees are from the local area.
I am delighted to say that Mushtaqs has recruited
A business is only as good as its people and 16 youngsters this year as part of the programme.
51% 42% we take our role in upskilling staff very seriously.
We are proud to pay above the minimum wage,
They are an important part of our future. We
believe in giving everyone an opportunity
pay bonuses, and have a lot of fun – and have a regardless of age, background or education.
Food production and Customer service skills Culinary skills training programme to give staff the opportunity
basic kitchen skills
to grow with the business.
24 4 INVESTING IN FUTURE GROWTH INVESTING IN FUTURE GROWTH 4 25About the Takeaway The great British takeaway menu
Economy Report
The Takeaway Economy Report was commissioned by Just Eat to support the launch of the British The top ten of takeaway
Takeaway Campaign, a new umbrella body representing the sector. The research was compiled by
the Centre for Economics and Business Research. 1 Key:
2 American Indian
3 Bangladeshi Italian/Pizza
Just Eat
Burgers Japanese
About the research – Cebr 4
Just Eat plc operates a leading global marketplace
for online food delivery. Headquartered in London, methodology 5
Chicken Kebabs
Just Eat uses proprietary technology to offer a quick Chinese Pakistani
This research was conducted by independent 6
and efficient digital ordering service for over 17.6 British/Fish & Chips Thai
million users and over 68,500 takeaway restaurants. economic analysts, Cebr, and was carried 7
Just Eat is a member of the FTSE 250 Index and links out using industry standard macroeconomic Grill/BBQ Turkish
models to quantify the impact of the UK 8
to all of its businesses can be found at
www.just-eat.com. takeaway sector.
9
The model uses data from DEFRA and 10
The British Takeaway Campaign the ONS to understand the overall weekly
2006 2008 2010 2012 2014 2016
expenditure on both ‘takeaway meals eaten at
Launched in 2017, the British Takeaway Campaign
home’ and ‘other takeaway and snack food’.
(BTC) is an umbrella group representing those
involved in the supply and preparation of the nation’s Fastest-growing food since 2014
Cebr used the Business Register and
favourite foods. Drawing together major players in the
Employment Survey (BRES) to measure the
takeaway industry – restaurants, trade associations
proportions of full- and part-time employees
and supply-chain organisations – the BTC aims to 907% 508% 504% 402% 390%
which are supported through takeaway
secure recognition of the economic, social and cultural
expenditure.
contribution of the sector and to back its growth by
boosting training and access to skills.
The report also draws upon the Annual Survey
of Hours and Earnings (ASHE) to quantify
Find more information about the BTC and its
the wages and salaries of workers of eateries
members at www.britishtakeawaycampaign.co.uk
and restaurants as a result of the demand
and follow @GBTakeaway on Twitter. Syrian Breakfast Desserts Sandwiches Grill/BBQ
presented by consumers’ takeaway purchases.
The Centre for Economics and HMRC data of corporation tax, income tax,
Business Research (Cebr) National Insurance and VAT is used to quantify
The nation’s favourite food
the contributions which the sector makes to
Cebr is one of the UK’s leading economic the UK Exchequer.
consultancies. Since 1992, Cebr has built a reputation
1
# #1 # 1 # 1 # 1
on the clear communication and interpretation of Finally, the research was complemented cuisine single pizza Indian Chinese
item topping dish dish
macroeconomics, microeconomics, econometrics, by a survey of 300 takeaways across the
market and consumer surveys, quantitative and UK. Commissioned by Just Eat, this survey
qualitative research, modelling and scenario planning was run by survey management company
to provide insightful analysis for public and private Prevision, with interviews taking place
sector clients. More information and examples of between 5 and 13 April 2017. Pizza/Italian Chips Margherita Chicken korma Chicken chow mein
previous research can be found at www.cebr.com.
26 27You can also read
