The share of in-restaurant price promotions reached 86% in the first half of the year.
Promotions play a vital role in the marketing strategies of businesses across the UK’s foodservice industry. From fast-food chains to casual dining establishments, operators utilize a range of promotions to attract and retain customers.
Recent data from Meaningful Vision indicates a notable increase in promotional activities. In the first half of 2024, the number of promotions rose by 25% in Quick Service Restaurants (QSR) and by 13% in casual dining. The delivery sector saw a more modest growth of 3%, where promotions are already common, characterized by frequent and varied offers.
Price promotions are prevalent, representing 64% of all in-store promotional activities in casual dining and 86% in QSR. In the delivery sector, price promotions account for 57% in casual dining and 68% in QSR. The average discount from promotions in the first half of 2024 was approximately 24% for QSR and 22% for casual dining.
In June and July 2024, price promotions continued to dominate, with average discounts ranging from 20-25%. This strategy aims to mitigate rising prices and ensure affordability for customers.
Special price offers are becoming increasingly popular among price promotions, while free delivery incentives for delivery orders are on the rise. Meal deals remain a central focus of promotional strategies.
Summer promotions are often linked to sporting events; for instance, Greggs offered free rolls during matches, and Domino’s provided free pizza through a cashback partner.
Many operators are utilizing websites and apps to deliver targeted deals to broader audiences. Numerous chains have introduced loyalty programs and app-based promotions to reward customers and foster repeat business. This year, free product offers for app sign-ups have increased significantly, accounting for 4% of all promotions, marking a substantial rise from the previous year.
Maria Vanifatova, CEO of Meaningful Vision, noted the growing trend of utilizing apps for promotions: “More and more companies are using their apps to run promotions, creating additional engagement and helping to build long-term relationships with customers. Additionally, we’re seeing more promotions focused on special occasions, such as breakfast deals at McDonald’s and Greggs, or lunch offers at KFC and Domino’s.”
