Home News Insights Planning Promotions That Captivate UK Consumers

Planning Promotions That Captivate Consumers

By Cyril Lavenant
Executive Director Foodservice U.K.
The NPD Group

Various forms of deals and promotions account for 28 percent of visits to Britain’s out-of-home (OOH) market, adding up to 3 billion visits a year. In 2017, those visits led to about £14.5 billion in consumer spending.

Visits involving a deal or promotion grew more slowly than non-deal visits throughout 2016 and most of 2017. That slow growth can be attributed to consumers finding good value for money without using more meal deals and promotions and not being inspired by what was on offer. The majority of foodservice outlets offered a basic meal deal, a price reduction, or a voucher. The result? Nothing really stood out from the crowd. Consumers began to suffer from discount fatigue.

Despite this recent fatigue, deals and promotions remain a key part of the foodservice industry and will increase in importance as economic factors continue to put pressure on consumers’ wallets. In fact, our latest data shows deals are already recovering. In 2017, deal and promotion visits grew by +2.8 percent while non-deal visits declined by -0.4 percent.

Operators need to make sure they do not return to old habits. They should focus on making their deals and promotions more targeted; this, in turn, will make deals more effective. For example, meal deals are ideal for lunch, allowing consumers to pick up a selection of items for a set price, saving them time and money. At dinner, the best promotions are price reductions or vouchers offering discounts, as dinner is the most expensive daypart, but consumers still want more choice.

Consumers love saving money – a deal or promotion is perfect for this. To really stand out from the crowd, deals and promotions must be impactful. Offering a free product (with nothing expected in return from the customer) will be a welcome surprise. Equally, offering a substantial and worthwhile reduced price for a limited time only is a great way to drive footfall. It’s also a promising tactic for creating a buzz with a good chance that news of the promotion will spread via word-of-mouth.

For more data and insights about the types of promotions and deals that work best in your sector, who uses promotions, and the types of products to include in deals, contact us at +442033184563 or contactnpd@npd.com.

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