Growing

The Takeaway Economy ReportCommissioned by Just Eat for the British Takeaway Campaign

Innovating

Investing

Welcome to the Takeaway Economy Report, commissioned by Just Eat for the British Takeaway Campaign, a new body representing all those involved in the supply and preparation

of takeaway food. It was prepared with the support of the Centre for Economics and Business Research (Cebr)

and examines the valuable economic, social and cultural contribution that the takeaway

industry makes to the UK.

What is takeaway?

An engine of growthP6-11

36,855 dedicatedtakeaways

across the UK

231,350

30,000

41,000

J BSNEW J BS

34%

At the heart of communities P16-19

That drives innovationP12-15

And invests in the futureP20-25

£9.9 billion

total UK spending on takeaway (2016)

increase in takeaway spending since 2009

2009

2016

12.1% of total spending on food in 2016was on takeaway

in the takeaway sector

new jobs createdsince 2009

1 /8th (13.2%) of GVA of whole food services sector

45%

39%

21% growth

65% 59%

of takeaways now offer

LOW FAToptions

of in-person payments in takeaways nowcontactless

of restaurantsusing appsincreased ordersoutside of mealtimes

in Northern Irelandsince 2014 – largest regional increase

of takeaways now offer

LOW SALToptions

Italian

Indian

Chinese

£2.7 billion takeaway marketin London & South East

largest in the UK2014

2016

30,000jobs supportedin the North West

41%

41%

of t

akea

ways are actively involved in comm

unity activities

of takeaways88%

place strong value on relationships withlocal community

£11.2 billion

projected size of takeaway sector

by 2021

by 2021

STAFF WANTED

of takeawayscurrently unable torecruit the staff they need

23%

need

to re

cruit s

killed staf from outside EU 29%

37%

report

skills shortages in specific areas

Most popular cuisine by UK Nations

In this report, takeaway is defined as food that is eaten off premises from restaurants, cafes and other catering establishments. The food can be hot or cold and the orders can be collected or delivered. What is not included as takeaway is food and snacks purchased in shops such as supermarkets, newsagents and greengrocers.

of restaurants say apps have been

positive72%for their business

2 3

Executive summary by Graham Corfield, UK

Managing Director, Just Eat

Takeaway restaurants sit at the heart of our high streets and communities, and are an engine of economic growth. From familiar names to small, independent restaurants, takeaways are embracing new technologies and adapting rapidly to consumers’ appetite for better food and greater choice.

This has helped the sector grow by more than a third since the beginning of the decade, employing more people than ever before. Just Eat has been operating in the UK since 2006 and has witnessed an unprecedented and ongoing shift within our industry. We understand the needs of our 27,650 Restaurant Partners better than anyone. They have always supported positive change.

However, to support the future success of takeaway restaurants, we need to address the challenges they face – including shortages of

skilled staff and a tax regime that can hurt small businesses.

This report helps launch the British Takeaway Campaign. Chaired by Ibrahim Dogus, the Campaign brings together those who supply and prepare the nation’s favourite foods – providing one voice for the sector.

Commissioned by Just Eat, a leading global marketplace for online food delivery and a founding member of the British Takeaway Campaign, the report draws on analysis from the Centre for Economics and Business Research (Cebr) and a comprehensive survey of takeaway restaurants, to show the trends shaping the sector in the UK today.

As the report shows, the takeaway industry is an economic beacon. Total UK spending on takeaway reached £9.9 billion in 2016 – a 34% increase on 2009. In the same period, the sector has created 41,000 new jobs – now employing 231,350 people across the UK. It continues to grow at a rate well above the rest of the UK economy.

This growth has been driven by the sector’s ability to adapt to consumer demand for more variety and more convenience. Takeaways have rapidly taken advantage of new technologies – online apps in particular are now a mainstream part of business for restaurants offering takeaway.

Innovation has been central to the industry’s success and now, more than ever, the sector needs to be where the customer is. This is why over the last year we have invested in developing ordering functionality on Facebook Messenger, Amazon Alexa and Xbox – we know that today’s customers want to be able to order takeaway from any

device they are on and to move seamlessly between devices when checking on their order status.

And, to support the increasing demand our restaurants face, we executed the world’s first delivery by robot to help them to keep pace with order volumes at peak times. We are driven to help our restaurants navigate the operational challenges of today’s marketplace and continuous technological innovation will be fundamental to that.

Driving demand to high streets, new technologies are helping to reinforce the bond between customers and their local takeaways. These relationships reinforce takeaways’ central role in their local communities. Whether it is sponsoring sports teams or providing food to charities, takeaway restaurants are active in their communities and care about their customers – 88% of takeaway restaurants place a strong value on these relationships.

The takeaway sector can approach the future with confidence. Total spending is expected to grow steadily and reach £11.2 billion by 2021. This will help takeaway restaurants create 30,000 new jobs across the UK.

However, supporting this strong growth will require investment in the sector’s future – particularly in skills. Almost two-fifths of restaurants currently face skill shortages – especially in more skilled positions: 78% of those reporting problems had issues recruiting chefs.

At Just Eat, we’re passionate about tackling these issues, and highlighting the growing contribution of the takeaway sector to our economy and our communities.

“The takeaway industry is an economic beacon. It continues to grow well above the rest of the UK economy.”

“The British Takeaway Campaign will bring together the sector to ensure we are working to tackle the challenges that takeaways face.”

INTRODUCTION INTRODUCTION

Foreword by Ibrahim Dogus, Chair, British Takeaway Campaign

In cities, towns and villages across the country, takeaway restaurants are flourishing.

From my own background starting and growing independent restaurants in London, I can speak with first-hand experience of the dynamism of a sector where small, family-run businesses compete with international chains.

Having made a career bringing new tastes to British consumers, I can also testify to the vibrancy of a market defined by ever-greater choice, convenience and responsiveness to consumer demands.

The eye-catching figures in this Takeaway Economy Report – on the sector’s steady growth, even during the last recession, and in the number of jobs it is forecast to create over the next few years – therefore come as no surprise.

As the sector grows in size, and scope, this has an impact not just on our culinary options for a night in, but on the health of our economy – with the sector supporting a £9.4 billion contribution (GVA or gross value added) to the UK economy.

But as the sector grows, the challenges it faces also increase in importance. Whilst takeaway spending is expected to hit £11.2 billion in 2021, barriers to growth – from skills shortages to an unwieldy business rates system – remain a headache for many budding entrepreneurs in the sector, which we need to tackle.

This is why I am proud, along with the other founding members, to use this report

to help launch the new British Takeaway Campaign (BTC) – a new body representing all those involved in the supply and preparation of takeaway food.

The BTC, which I am delighted to chair, will seek to safeguard our industry’s future success. It brings together independent restaurants and major players in the sector, including Just Eat, who have supported this report, to ensure we are working together to tackle the challenges that takeaways face.

These include getting the right skills training in place for the sector, ensuring anticipated changes to the immigration system don’t exacerbate labour shortages, and overhauling the current business rates regime to make it fairer and more transparent.

The economic, social and cultural contribution that the takeaway sector makes to the UK is deservedly recognised in this report. Takeaway restaurants across the country should take pride in its findings – and I hope that everyone will take note of the sector’s impressive growth, and exciting future.

4 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.

Increase in UK takeaway expenditure – nominal £

Data from other sectors drawn from ONS (2015) data. Takeaway sector statistics from 2016 (Cebr analysis).

Takeaways represent a small but growing portion of household food expenditure – 12.1% of total spending on food in 2016, or an average of £30 a month. This spending has increased significantly in recent years – up 25% since 2009 – growing steadily even during the last recession.

This growth reflects the ability of the sector to cater to a greater variety of consumer demand – for example, the number of cuisines on offer

at Just Eat increased from 66 in 2010 to 127 in 2016 – and provide greater quality and convenience for busy consumers.

Increasingly, households are valuing the role that takeaway restaurants can play in contributing towards a balanced lifestyle – as a healthy alternative to a home-cooked meal. This can be seen in the sharp growth of new takeaway options since 2014 alongside the enduring popularity of the UK’s favourite takeaway options.

Spending on takeaway has grown by 34% since 2009

2009 20162012

£9.9bn

£8.8bn£7.4bn

Takeaway is bigger than the broadcasting and entertainment industries

12.1% of total spending on food in 2016 was on takeaway

To put the above into context: measured by revenue, the takeaway sector is greater in size than two of the UK’s most high profile industries, telecoms and entertainment and events.

3 2

TELECOMS ENTERTAINMENT

£8.6bn

£8.1bn

TAKEAWAY

1

£9.9bn

Greater cuisine choice and changing lifestyles are driving increased household spending

AN ENGINE OF GROWTH AN ENGINE OF GROWTH1 16 7

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 people – more than telecoms, advertising and Premier League football.

As a sector led by dynamic small businesses – 75% of takeaway restaurants employ fewer than five staff – the employment options it offers are varied. It provides many people with their first, often part-time, taste of the world of work, but also offers a rewarding career path for budding entrepreneurs and highly-trained catering staff.

As of 2016, the industry directly supported more than 79,000 full-time employees, and over 128,000 part-time employees – alongside 23,000 self-employed entrepreneurs.

When we founded Brunch back in February 2013 there were only two of us with a little dream that we could really add something to our local community. We wanted to create a place where people could enjoy a delicious breakfast or lunch using high quality, locally sourced ingredients in a pleasant, neighbourly environment.

The first few years have been hard work, but very rewarding as we built up a strong local customer base. Our game changer was back in May 2015. Our customers kept on telling us that in our area all types of cuisines were available for delivery, but with the exception of a good old English breakfast menu. We filled that gap by teaming up with an online aggregator and it’s been the ideal platform for us to reach customers, grow our business and get Brunch to the next level.

Just six months after joining Just Eat we were awarded Best Takeaway in the North West at the British Takeaway Awards (BTAs) and we had to increase staff numbers to six to accommodate the increase of business. In December 2016, we amazingly won the BTAs again and once more we had to increase our staff levels to keep up with the demand.

Four years in and we’re a thriving local business. We are hoping to expand our current premises in July 2017 to triple our space and go from 6 to 18/22 covers. That will allow us to open an evening bistro and offer our customers a new, exciting, early evening menu.

Thanks to our little dream we now employ 12 people from our local community and if all goes to plan we’ll employ a further two drivers and another four team members, taking us to a fantastic team of 18.

Takeaways are a leading UK employer

Since 2009 the takeaway sector has created

41,000 new jobs

TAKEAWAYS

231,350

PREMIER LEAGUE FOOTBALL 103,000

ADVERTISING 181,200

TELECOMS 214,100

“Thanks to our little dream we now employ 12 people from our local community.”

MY TAKEAWAY ECONOMYSharon Carline, owner of Brunch, Prescot

AN ENGINE OF GROWTH AN ENGINE OF GROWTH1 1

An industry that is supporting record employment

ONS (2015), Premier League (2015) and Cebr (2016) data

8 9

Takeaways’ supply chain boosts the UK economy

Takeaways make up over one-eighth of the entire food services sector

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 chain is taken into consideration, each £1 of takeaway sector GVA supports an additional £1.08 of GVA through the economy.

When taking into account these ‘multiplier’ impacts, the total contribution of the takeaway sector is estimated at £9.4 billion in 2016, including:

In addition to the people employed directly in the sector, through its supply chain the takeaway sector supported an additional 38,970 full-time equivalent (FTE) jobs, alongside a further 34,300 FTE jobs supported by takeaway sector employees’ spending across the economy – a total of 73,270 (FTE) additional jobs.

Takeaways’ contribution to UK tax revenuesThe £4.5 billion GVA contribution to GDP generated by takeaways produced £1.63 billion for the UK Exchequer in 2016, up 9% from 2014 and an increase of more than 40% since 2009.

An industry taking off – GVA generated by takeaways

SCHEDULED PASSENGER AIR TRANSPORT

TRAVEL AGENCIES & TOUR OPERATORS

TAKEAWAYS

£4.5bn£4.2bn £4bn

£4.5bn GVA directly generated

by takeaway restaurants

£2.45bn generated as a result of the

spending of those employed by takeaway restaurants and

their suppliers

AN ENGINE OF GROWTH AN ENGINE OF GROWTH1 1

£2.45bn generated along their supply chain (such as spending on

food manufacturers who provide ingredients for the takeaways)

ONS (2015) and Cebr (2016) data

10 11

Takeaway is at the forefront of the digital revolution

Continual investment in future technology has been central to the growth of the takeaway sector over the last decade. Small, independent takeaway restaurants have embraced digital innovation, with new apps helping to provide a greater choice and quality of food for consumers.

Almost 35,000 establishments now use online apps – over a third of takeaways, restaurants and cafes in the UK.1

Takeaway restaurants have been early adopters of new technologies. The majority (54%) of restaurants using these apps have been using them for more than two years, and almost

half (49%) now use two or more apps to bring in orders to their business. Using these new platforms to engage with customers is now mainstream business, and 72% of restaurants say that online apps have had a positive impact on their business.

Similarly, technologies are improving the in-person experience in takeaways – contactless card payments totalled 45% of all transactions made in takeaway restaurants between October 2016 and March 2017. This gives the sector the fourth highest rate of contactless card transactions across the economy – above newsagents, clothes stores and hotels.2

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 House, Deliveroo and Uber Eats).

2 UK Cards Association, May 2017, www.paymentsense.co.uk/blog/top-20-merchants-contactless-payments/

Online apps are central to the takeaway restaurant business model

DRIVING INNOVATION DRIVING INNOVATION2 2

What makes takeaway so special in this country is that it continues to innovate and grow, and Chicken George is a great example of that.

We are a 32-year-old fried chicken business and last year we were named as the best takeaway in the UK. My dad founded it, with just our mum as part-time help and eight items on the menu. They sacrificed everything, working all hours, seven days a week to make the business a success.

Now we’re the second generation doing the same. We have loyal customers who have grown up with us, but we are also attracting new customers online and we’ve over 50 items on the menu because we know consumer tastes are changing.

We make nearly everything fresh on site from slow roasting our pulled pork for up to 12 hours, through to our signature dish of sticky BBQ ribs, which has been a best seller since my dad first created it. It’s a labour of love: we hand cut and trim all the ribs every morning seven days a week and make our own sticky BBQ sauce for them, the recipe for which is a closely guarded secret.

We put on a special every two weeks ranging from Southern fried duck’s leg with sweet potato fries and smoked garlic mayo through to home-made mac and cheese with local Woburn Estate black smoked ham. My home-made special hot sauce made with Scotch bonnets is so popular we can’t keep up with demand – we even bottled it up for people to buy as Christmas gifts.

I came back to this industry because its future is so exciting. I trained in a Michelin-starred restaurant and won rosettes as head chef in a number of restaurants. I have the same approach to food in Chicken George as I did there – buy local from people with the same ethos on quality as you.

We know we’re doing something right because it’s full on from the moment we open the doors to when they close. Online orders are booming. We have queues that go outside the door and round the corner on weekend nights. Like my mum and dad, we literally do not have any downtime. But we’re not going to stop – this is a business and an industry on the up. Roll on the next 32 years.

“I came back to this industry because its future is so exciting.”

MY TAKEAWAY ECONOMYChris Cheah, owner of Chicken George, Luton

of restaurants say apps have been

positive72%for their business

12 13

New cuisines and healthy options are transforming takeaways

The instant choice new online apps offer across a range of local takeaway options has helped drive up demand by more than a third since 2009. It is also leading to a greater range of options available as the sector responds to increasingly demanding consumers.

This can be seen in the fast pace of growth in the popularity of cuisines that have not been traditional staples of the British takeaway. Takeaway orders from Middle Eastern and North African restaurants have increased three-fold over the last three years, supported by a dramatic increase in popularity for culinary options (relatively) new to the British high street – orders for Syrian takeaway food have increased ten-fold since 2014, for example.

Takeaways are also responding to consumers as they become accustomed to the greater

convenience and flexibility offered through new online platforms. Restaurants report a substantial increase in orders outside of traditional mealtimes – 39% of takeaways have seen an increase in such orders since using online apps.

This trend can also be seen in the sharp growth of non-traditional takeaway options over the last three years – from morning breakfasts (with orders up six-fold) to the lunchtime sandwich (orders for which have increased five-fold).

The sector is also responding to a shift to more health-conscious appetites, with restaurants now offering a greater range of menu options in response. An impressive 96% of takeaway restaurants now offer vegetarian options, whilst almost two-thirds (65%) offer low fat options and 59% offer low salt options. A further 73% offer small portion sizes.

VEGETARIAN LOW FAT LOW SALTSMALL PORTION SIZES

96% 73% 65% 59%

Calowries is a prime example of the innovative and changing face of takeaway. We are three friends and two of us are IT consultants. A lot of professionals like us don’t want to waste time making food at home and we would rather buy healthy cooked meals. But we couldn’t find anywhere local to us that did it at an affordable price, so we thought why not do it ourselves and cater for this market.

We developed the menu and recipes and we brought in a team to follow these and produce it. As you would expect salad is popular, but our best sellers are the grilled products, like chicken shish and king prawns. Even if people want a bit of indulgence we try and make that healthy. On our menu are things like chips and chicken nuggets, but we do them air fried – we even have a range of low calorie burgers.

We’ve quickly realised that there is huge potential in the health market. And one of the amazing

things is we’ve not advertised so far – our main awareness comes from being on Just Eat. And week-on-week, month-on-month we are growing.

We initially thought it would be gym-goers who would be our customers, but what has surprised us is the variety of people ordering. We have everyone from housing estates to multi-million pound mansions. We’ve got singles and families, and a generational mix between young and old. What we have is customers wanting to eat healthy. We’ve people coming in and ordering combinations of food that match their calorific intake.

The increasing reality for takeaway is that we now have consumers who know what is good for them and what is not. People are more educated in the food choices they are making and there are more restaurants which are reflective of those choices. There is a huge demand and at Calowries we’re proof the market is running with it.

“People are more educated in the food choices they are making and there are more restaurants which are reflective of those choices.”

MY TAKEAWAY ECONOMYSalik Saeed, co-owner of Calowries, Putney

Takeaways are reflective of changing health behaviour

DRIVING INNOVATION DRIVING INNOVATION2 214 15

Takeaways are helping regional economies grow and thriveThe 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 proliferation of new options for consumers, as the sector continues to introduce UK customers to new flavours from right across the globe.

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.

It’s increasing demand

In the context of growing takeaway orders across the country, analysis of the different regions reveals significant variations in demand. Northern Ireland in particular has experienced a takeaway boom in recent years – with spending growing by 18.8% since 2014, the highest expenditure per household in the UK (£55 a month).

In London, where the high density of takeaway restaurants adds to ease of delivery and wider consumer choice, the average household expenditure was £36 a month (making up 12.6% of total average household spending on food, compared to 12.1% on average across the UK).

Manchester, Liverpool and the other cities and towns of the North West have also seen a marked growth in household spending on takeaway – up 11.8% since 2014 to an average of £30 a month spent by each household on takeaway.

Northern Ireland

Spending per region Employment per region Spend per household per week

Scotland

North East

Yorkshire & Humber

West Midlands East Midlands

North West

Wales

South West South East London East

It’s bringing in new revenue

As the takeaway sector grows, it is bringing in new revenue and supporting new jobs in regions across the UK.

The largest takeaway markets are in London and the South East, which accounted for over a quarter (£2.7 billion) of spending on takeaway in 2016 – up 5.5% from 2014.

But the sector’s vibrancy can be seen across the country. Since 2014, the areas with the highest growth were Northern Ireland (21.3%) and the North West (13.2%).

It’s supporting more jobs

As demand for takeaway continues to rise, the economic growth this has stimulated has supported tens of thousands of new jobs up and down the UK.

In the North West, the region’s hearty appetite for takeaway supported almost 30,000 jobs in 2016 – a rise of 10.3% since 2014.

KEY

£

£

£0.83bn

20,173

£6.50

££0.51bn

7,837

£12.93

£

£0.4bn

11,089

£5.63

£

£0.7bn

18,700

£5.62

£ £1.3bn

29,162

£6.59

£ £0.96bn

25,082

£7.11

£

£0.78bn

13,823

£6.10

£ £0.65bn

18,542

£6.10

£

£0.85bn

23,107

£6.91

£

£1.4bn

23,569

£8.20

£

£1.1bn

29,816

£6.91

£ £0.38bn

10,450

£6.46

£

AT THE HEART OF THE COMMUNITY AT THE HEART OF THE COMMUNITY3 316 17

Community engagement is one of my favourite aspects of my business. I’m a big believer that if you support your community then they will support you.

We do a lot with our local football, cricket, bowls and cheerleading clubs, not only providing finance and sponsorship but offering food at cost to help them at fundraising events and keep these important community organisations going.

We also support a small village that has no shops or pubs. We help organise a monthly skittles and quiz night with a fish and chip supper which, again, we provide at cost. What’s great about it is that it gives the community a sense of occasion and something to look forward to.

I do think it’s important to be a good corporate citizen. This year we rolled out a housebound delivery service for the elderly. We have access to a key so we can go straight in, deliver a customer’s food, plate it up and have a little chat. Often we might be the only face they see all day, so we see it as an important social service.

We also cater for over a dozen residential care homes where we provide fish and chip suppers and give the home kitchens a rest day – we know the residents love the newspaper wrapping and reminisce about the days when they used to have fish and chips by the seaside, so that’s nice.

And it’s important to look after the next generation too. We go into local schools to talk to children about the food chain, so where their fish and chips come from. We also heard about the kids at a local school not having the budget for food for their prom night. We provided the food for free. Some things are just the right thing to do.

My favourite community event was last Christmas. Our local Santa got a parking ticket for parking his sleigh in a pedestrian zone when meeting and greeting local shoppers and children. As this was for charity, and was taking money away from them, we weren’t having that at Chris’s Fish and Chips! We arranged for Santa to come down the next week, we paid his fine, and got 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.

“I’m a big believer that if you support your community then they will support you.”

MY TAKEAWAY ECONOMYStratis Kyriacou, owner of Chris’s Fish and Chips, BarwellTakeaways play an important

role at the heart of communities

41%62%

61%

AT THE HEART OF THE COMMUNITY AT THE HEART OF THE COMMUNITY3 3

Takeaways involved in community-based activities

Sponsor local activities / sports teams

Provide food to charities, care homes or local events

Takeaway restaurants’ contribution to local high streets is underpinned by their deep roots in local communities – and as they continue to grow in popularity, they increasingly value the importance of giving back to the local community.

Notably, 88% of takeaway restaurants see being a valued part of the local community as “important” or “very important”. This is reflected in the work they take forward in their local areas.

More than two-fifths (41%) are actively involved in community-based activities – 62% of these restaurants sponsor local activities or sports teams, and 61% provide food to charities, care homes or local events.

18 19

INVESTING IN FUTURE GROWTH INVESTING IN FUTURE GROWTH4 4

Annual growth of 2.6% over the next five years

The takeaway market is expected to continue growing at a strong rate, averaging annual growth of 2.6% over the next five years. Total spending on takeaway will reach £11.2 billion by 2020/21 as greater variety and convenience, supported by online aggregator platforms, continue to fuel growth and takeaway demand.

30,000 more jobs by 2021

As the sector continues to grow, it will provide an increasing number of jobs across the UK.

Based on current projections of demand, takeaway employment is expected to reach 250,000 by 2020, and will rise above 261,000 by 2021 – a growth of 37% on 2010.

GVA to top £5 billion

Demand for takeaway is estimated to have added £4.5 billion in value to the UK economy in 2016. This is expected to continue to grow steadily in the years to 2021 – by a total of 13% to reach £5.1 billion a year by the beginning of the next decade.

The takeaway industry will continue to be a beacon of growthThe 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.

2014

2010

190,000 Jobs

261,000 Jobs

2016

Forecast total household takeaway expenditure (£billion)

The value of takeaway to the UK economy

Jobs growth in takeaway

2016 20182015 2017 2019 2020 2021

2021

2021

9.39.5

9.910.1

10.410.6

10.911.2

£5.1bn£4.5bn

What I love about the takeaway industry is the way that technology supports entrepreneurial spirit. When I set up my business in March 2015 the only conventional bit of it was the food. I didn’t have a shopfront – instead I had a separate unit in my house where I was able to cook food that I believed was the authentic taste of Barbados. Crucially, I had an online presence.

I may have been a one-man band, but online I had a presence equal to all the bigger restaurants in Croydon. In my first week of trading we made a rather modest £84. But what was important was that we were making good food and people liked it – we knew this because of the great reviews they left on the site.

It meant that word of mouth quickly spread and then suddenly things just took off, with orders flooding in. And unlike a traditional shopfront

restaurant they don’t just come in at dinner time. I prepare my delicious fresh food at all hours of the day. But I don’t mind that: this business is my passion, and my passion is helping it to be successful.

I was named Best Takeaway Chef in Britain in 2016, less than two years after setting up. The accolade was ultimately for the food and service we provided, but without the technology allowing me easy access to customers none of this would have been possible.

The ultimate proof point that our business is successful is that I’ve outgrown the kitchen unit in my home. We’re now in the process of acquiring a shop so that even more people can enjoy the Big Mike food experience. This is a great industry to be part of.

“I may have been a one-man band, but online I had a presence equal to all the bigger restaurants.”

MY TAKEAWAY ECONOMYMike Springer, owner of Big Mike’s Calypso Kitchen, Croydon

20 21

To help takeaways continue to thrive, we need to address the challenges the sector facesAlthough the outlook for the takeaway industry over the next five years is generally very positive, there are still barriers to growth. Chief among the issues that will be addressed by the British Takeaway Campaign is an unwieldy business rates regime for small firms and predicted skills shortages – action is needed on these to ensure that the sector can continue to thrive.

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 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.

The skills that the takeaway industry needs more of

78%

53%

34%

CHEFS

WANTEDFRONT OF

HOUSE STAFF

WANTED

DRIVERSWANTED

Ensuring 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 front of house staff, whilst 53% say they are experiencing skills shortages for delivery drivers.

INVESTING IN FUTURE GROWTH INVESTING IN FUTURE GROWTH4 422 23

INVESTING IN FUTURE GROWTH INVESTING IN FUTURE GROWTH4 4

Mushtaqs is a restaurant based in Hamilton, just outside Glasgow. We have a very simple operating model. We only serve the Indian food we eat at home, hence the strapline ‘Proper Indian Food’. We are firmly mapped onto Hamilton’s food scene and our customers have an appetite for fast, efficient service. My team delivers our customers exactly what they want – great food within 29 minutes to their door.

We know that works – we started with six employees in 2009 and the team size has grown to 68, so we are a successful local business and 95% of our employees are from the local area.

A business is only as good as its people and we take our role in upskilling staff very seriously. We are proud to pay above the minimum wage, pay bonuses, and have a lot of fun – and have a training programme to give staff the opportunity to grow with the business.

What I am most proud of is our investment in developing the skills of young people in our area. We invest heavily into charitable and community initiatives, and central to that is the Mushtaqs Youth Employment Programme (MYEP).

The programme helps young people learn valuable skills such as teamwork, communication, working under pressure and professionalism. MYEP has helped over 120 schoolchildren who have left school with little or no qualifications move into employment in the past six years.

I am delighted to say that Mushtaqs has recruited 16 youngsters this year as part of the programme. They are an important part of our future. We believe in giving everyone an opportunity regardless of age, background or education.

“I’m very proud of the role that Mushtaqs plays in developing the skills of local young people.”

MY TAKEAWAY ECONOMYAjmal Mushtaq, owner of Mushtaqs, Hamilton

Investment in skills and the right approach to immigration are vital to takeaways in a post-Brexit environment

The skills that takeaway restaurants want the T-level to focus on

Food production and basic kitchen skills

Customer service skills Culinary skills

51%

47%

42%

As Britain leaves the European Union – and the flow of labour to the country risks being restricted – it is likely that the impact of the skills shortages facing restaurants will be intensified. Over a third (37%) of takeaways believe that the UK’s decision to leave the European Union will make it more difficult to recruit staff for their business.

Meanwhile, evidence suggests that a significant proportion of businesses within the takeaway industry would benefit from more flexible immigration rules for skilled workers coming from outside the EU. Over one in four (29%) of businesses say they need to recruit skilled labour from outside the European Union to support their business.

The existing skills shortage, combined with this uncertainty surrounding the future supply of labour into Britain, underlines the urgency of equipping our domestic future workforce with the skills required by employers.

This highlights the importance of developing a world-leading technical education system, which will help ensure the British takeaway sector, along with the broader hospitality and catering industry, has the skills it needs for the future. The government has proposed technical A-levels (‘T-levels’) – an initiative to offer reinvigorated vocational qualifications across 15 areas of technical training, including ‘catering and hospitality’ – and these will play an important role in addressing the takeaway sector’s skill shortages.

Takeaway restaurants recognise this, with 53% of restaurants thinking that the new T-level will help address the skills shortage in the restaurant industry. Looking at the qualification in greater detail, 51% of restaurants would like to see food production and basic kitchen skills included within its programme, whilst 42% would like to see culinary skills included, and 47% would like to see customer service skills covered.

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The great British takeaway menu

Fastest-growing food since 2014

The nation’s favourite food

The top ten of takeaway

Key:

Syrian

MargheritaChipsPizza/Italian Chicken korma Chicken chow mein

2006 2008 2010 2012 2014 2016

1

2

3

4

5

6

7

8

9

10

American

Bangladeshi

Burgers

Chicken

Chinese

British/Fish & Chips

Grill/BBQ

Indian

Italian/Pizza

Japanese

Kebabs

Pakistani

Thai

Turkish

Breakfast Desserts Sandwiches Grill/BBQ

907% 508% 504% 402% 390%

#1 cuisine

#1 single item

#1 pizza

topping

#1 Indian dish

#1 Chinese

dish

Just Eat

Just Eat plc operates a leading global marketplace for online food delivery. Headquartered in London, Just Eat uses proprietary technology to offer a quick and efficient digital ordering service for over 17.6 million users and over 68,500 takeaway restaurants. Just Eat is a member of the FTSE 250 Index and links to all of its businesses can be found at www.just-eat.com.

The British Takeaway Campaign

Launched in 2017, the British Takeaway Campaign (BTC) is an umbrella group representing those involved in the supply and preparation of the nation’s favourite foods. Drawing together major players in the takeaway industry – restaurants, trade associations and supply-chain organisations – the BTC aims to secure recognition of the economic, social and cultural contribution of the sector and to back its growth by boosting training and access to skills.

Find more information about the BTC and its members at www.britishtakeawaycampaign.co.uk and follow @GBTakeaway on Twitter.

The Centre for Economics and Business Research (Cebr)

Cebr is one of the UK’s leading economic consultancies. Since 1992, Cebr has built a reputation on the clear communication and interpretation of macroeconomics, microeconomics, econometrics, market and consumer surveys, quantitative and qualitative research, modelling and scenario planning to provide insightful analysis for public and private sector clients. More information and examples of previous research can be found at www.cebr.com.

About the research – Cebr methodology

This research was conducted by independent economic analysts, Cebr, and was carried out using industry standard macroeconomic models to quantify the impact of the UK takeaway sector.

The model uses data from DEFRA and the ONS to understand the overall weekly expenditure on both ‘takeaway meals eaten at home’ and ‘other takeaway and snack food’.

Cebr used the Business Register and Employment Survey (BRES) to measure the proportions of full- and part-time employees which are supported through takeaway expenditure.

The report also draws upon the Annual Survey of Hours and Earnings (ASHE) to quantify the wages and salaries of workers of eateries and restaurants as a result of the demand presented by consumers’ takeaway purchases.

HMRC data of corporation tax, income tax, National Insurance and VAT is used to quantify the contributions which the sector makes to the UK Exchequer.

Finally, the research was complemented by a survey of 300 takeaways across the UK. Commissioned by Just Eat, this survey was run by survey management company Prevision, with interviews taking place between 5 and 13 April 2017.

About the Takeaway Economy ReportThe Takeaway Economy Report was commissioned by Just Eat to support the launch of the British Takeaway Campaign, a new umbrella body representing the sector. The research was compiled by the Centre for Economics and Business Research.

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