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UK takeaway industry controlled by Domino's Pizza

Industry Sector

Food and Drink

Published

20 December 2012

Author

Matt Bodimeade

Type of News

Market

The UK takeaway industry has been experiencing a growth in recent decades, nationally one in six meals are now eaten out of the home with men deriving a quarter of their energy and women a fifth from these foods.

Takeaway foods offer an alternative to the routine of shopping, food preparation and cooking and an over abundance of outlets can distort what is available. Recent evidence in the UK suggests a rise in the consumption of fast foods as individuals downgrade from more expensive restaurant meals due to the economic downturn.

Certain types of food that are normally served in sit-down restaurants are commonly available as take-out. Pizza is one example: some pizzerias and chains have no tables, and supply for take-out and delivery only. Another classic take-out food is Western-styled Chinese food. In the UK, South Asian food such as Indian and Pakistani cuisine is also a popular form of take-away, as well as kebabs from the Middle East.

Domino's Pizza was the clear leader of the UK takeaway industry at the end of 2011, accounting for 8% of total value sales and a dominant 68% share of chained value sales. The company benefits from its large outlet volume, strong locations and strong marketing.Domino's Pizza

The company notably distributes leaflets to consumers in the vicinity of its outlets on a regular basis, with these offering vouchers and highlighting price promotions and new launches

The UK takeaway market saw chained pizza saw the strongest performance in 2011 over the previous year, growing current value sales by an impressive 9%. This channel benefited from the strength of Domino's Pizza, a dominant and aggressively-expanding player that opened an additional 55 outlets in 2011 to bring its total to 671.

This expansion in turn inspired expansion by its competitors, with Papa John's Pizza, Pizza Hut and Perfect Pizza adding an additional 24 outlets to their networks in 2011 to bring their combined total to 502.

The UK takeaway industry will continue to outperform most other channels within the consumer foodservice industry through to 2016. This strong performance will be linked to consumers' ongoing strong demand for convenience and indulgence, with many preferring to order food in rather than leave their homes.

For more information on the UK takeaway industry, see the latest research: UK Takeaway Industry

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