Dutch spend record amount on out of home

This year, Dutch consumers' spending on restaurants and cafes has reached an unprecedented high, according to the FoodService Institute Netherlands (FSIN). The forecast suggests that the turnover of the Out of Home sector in 2023 will rise to over €22 billion, marking a 15.8% increase compared to the previous year. However, FSIN anticipates a slowdown in growth for 2024.

The total revenue of the foodservice sector, encompassing all consumption of food and beverages outside the home, has climbed from €19 billion to €22 billion. This figure notably surpasses the €19.8 billion recorded in 2019, before the onset of the COVID-19 pandemic. Part of this revenue surge can be attributed to inflation; prices in restaurants and fast-food establishments have risen by 5% to 10% this year.

Two primary factors have driven this revenue growth: the strict 2022 lockdown and the absence of COVID-19 restrictions in 2023. It's also noted that younger generations, such as Gen Z and Millennials, spend more time and money dining out than older generations.

Yet, the foodservice sector's market share in 2023 hasn't rebounded to its pre-pandemic level of 33%. This year, the ratio stands at 30-70 between Foodservice and Foodretail. The combined turnover for both sectors is estimated at €72.5 billion.

60% of the Dutch population finds dining out too expensive

The heightened prices for dining out have taken their toll, with 60% of the Dutch population finding it too expensive. Still, they continue to frequent restaurants. Despite this record turnover, the profitability of the Out of Home sector is being challenged by rising costs and staff shortages, especially chefs. Many dining establishments have reduced their operating hours due to the shortage of staff.

FSIN predicts a modest 6.1% growth for the Out of Home sector in 2024, projecting a turnover of just over €23 billion.

Fsin.nl