The Rise of the Afternoon Tea in 2023
With costs rising from every angle and the impact of ever-increasing inflation rates hitting consumers and businesses hard, out of home dining is changing.
At Creed, we wanted to understand the challenges facing hospitality destinations on a more granular level, in order to offer our knowledge and advice to aid establishments in maximising profits in this difficult climate. Out of this, the Plates to Profit report was born. From surveying hospitality operators across the country, some shocking statistics came to light.
"60% are now experience led and 77% are value-led in their motivations to eat out of home."
One theme that is clear when assessing the current consumer trends is that occasion and experience led dining provides a huge opportunity.
Whilst consumers are dining out less often and less willing to spend in excess on the day-to-day, 60% are now experience led and 77% are value-led in their motivations to eat out of home. This therefore identifies a customer preference for occasion dining, and a willingness pay a premium for shareable, unique experiences.
One example of this trend comes in the form of your classic afternoon tea!
Whilst remaining a well-loved British tradition seeing major uplifts during key calendar events such as Mother’s Day and Easter, interestingly, the afternoon tea as a meal has seen the highest spend uplift of all mealtimes in 2023, after an evening meal. Typically comprised of a relatively simple food and beverage offering, with a set menu and a single serving, on average customers are willing to spend over £20 per head on an afternoon tea experience, up £5 since 2021 (CGA Food Trends, 2023).
This data therefore showcases an opportunity for establishments to upsell an afternoon tea offering and create high profit margins on an uncomplex product range, with consumers placing value upon the experience itself.
With the traditional connotations, you could be forgiven for thinking an afternoon tea experience attracts an older generation of consumers, however 43% of 25-34 year old celebrate a birthday with an Afternoon Tea (JINGTM Tea Survey, Dec 2022) and 21% enjoy the meal at least once a month.
With this in mind, there is an opportunity to spruce up a classic sandwich and scone offering with innovative flare and flavour twists, as over 75% of consumers state they enjoy sweet baked goods with a spin on tradition (Dawn Global Bakery Trends Study, 2022). Consumers are also becoming more adventurous and want to see a range of flavours from different cuisines, including a lot of Asian and Middle Eastern influences, alongside the traditional afternoon tea. With the rise of social media also, serving up visually appealing, unique and shareable courses will only add to the reach of your establishment and aid the growth in demand, ultimately justifying a higher price point.
If you think you could be missing a trick in maximising profits through your afternoon tea offering, why not get in touch today to speak with our Insights Manager, Anna, and Head Development Chef, Rob, to see how we can work with you to develop this concept, and ensure your offering is the highest value it could be.
