This would be the highest level of growth since the recession began, according to Allegra Foodservice. Emerging fast food concepts, coffee shops and further developments in street food will set the pace of growth this year.
The upturn in the market will be supported by an improving economic outlook, strengthening consumer spending power and increasing physical expansion from 4.5% in 2013 to 5.5% in 2014 of branded restaurant and managed pub chains.
The Allegra Foodservice Market Outlook found that 75% of the industry is positive about current trading conditions and expect to see trade improve further this year, though the majority of survey respondents believe that full exconomic recovery will not take hold until the second half of 2015.
Key concerns
Executives identified intensifying competition as concerns around rising food costs and building stronger customer loyalty become critical success factors.
The research highlighted that the pub market continues to polarise between premium operators and lower-end food offers.
"Eating out market value growth of 3% in 2014 will be the highest since the recession began and is clearly welcome news," said Allegra Foodservice strategy director Simon Stenning. "This will come from a combination of increasing consumer eating out participation, an uptick in visit frequency and some average spend gains as consumers start to feel more confident about their personal finances and spending power.
"However, the growth will be hard fought for in an increasingly competitive trading environment and gains will be patchy across the market. The onus on operators will remain innovating on product, refining menu price architectures and adding greater value across the consumer experience to build stronger customer loyalty."
Stenning said operators needs to focus on menu engineering with selective premiumisation.