Eating Out Review - UK - July 2016

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
The eating out market maintains slow growth
Figure 1: UK eating out market size and forecast fan chart, 2011-21
Fast food venues perform strongly
Britain’s ageing population poses a challenge for foodservice
Wages and tipping remain thorny issues
Companies and brands
Many operators are expanding their estates
Fast casual pizza and Italian-inspired options
Breakfast and brunch menus
Lesser-known cuisines continue to make their mark
Fast food operators look to wider food trends
Pay-at-table apps
The consumer
Cafés/coffee shops remain popular
Figure 2: Restaurants visited in the last three months, April 2016
28% of restaurant diners eat in at least once a week
Freshness is key for communicating quality
Figure 3: Perceptions of what constitutes a ‘good quality dish’, April 2016
Quicker service is key to boosting the use of ordering technology
Consumers want greater transparency around service charges and tips
Figure 4: Attitudes towards restaurants, April 2016
What we think
ISSUES AND INSIGHTS
Freshness is key for communicating quality
The facts
The implications
Diners show strong interest in transparency on service charges
The facts
The implications
Diners are divided on digital ordering, many would be swayed by speed
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
The eating out market maintains slow growth
Fast food venues perform strongly
Consumer spending power grew in 2015
Britain’s ageing population poses a challenge for foodservice
Wages and tipping remain thorny issues
MARKET SIZE AND SEGMENTATION
The eating out market maintains slow growth
Competition from retail and other leisure remains intense
Menu innovation remains key to driving interest
Delivery and ordering platforms boost takeaway segment
Forecast
Figure 5: UK eating out market size and forecast, 2011-21
Figure 6: UK eating out market size and forecast fan chart, 2011-21
The impact of the EU referendum vote
Figure 7: Alternative scenarios for the eating out market, 2016-2021
No immediate impact on consumers’ finances
The risk of an economic slowdown
The need to offer a compelling leisure experience
Market segmentation
Fast food venues perform strongly
Figure 8: Eating out market*, by sector, 2011-16
Chicken and burger bars
Pub catering
Ethnic Restaurants/Takeaways
Pizza/Pasta Restaurants/Takeaways
MARKET DRIVERS
Consumer spending power grows in 2015
Figure 9: Selected consumer spending priorities (after bills), January 2013-January 2016
Britain’s ageing population poses a challenge for foodservice
Wages and tipping remain thorny issues
2015 fall in energy prices took pressure off operators
Figure 10: Utility prices paid by non-domestic consumers (including the Climate Change Levy), 2007-15
Figure 11: Average fuel prices at the pump for unleaded standard and diesel, 2007-16
Healthy eating is embraced widely
The weather can also influence custom
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Many operators are expanding their estates
Fast casual pizza and Italian-inspired options
Breakfast and brunch menus
Lesser-known cuisines continue to make their mark
Fast food operators look to wider food trends
Pay-at-table apps
MARKET SHARE
Many operators are expanding their estates
Figure 12: Selected leading restaurant chains/operators, by estimated outlet numbers, 2013-16
Subway leads the way
Selected recent activity: acquisitions and investment
LAUNCH ACTIVITY AND INNOVATION
Pizza and Pasta Restaurants
Fast casual pizza and Italian-inspired options
Sourdough and gourmet pizza options
Breakfast and brunch menus
Updated children’s menus
Ethnic Restaurants and Takeaways
‘Wrapped’ food
Japanese-style restaurants enhance their breakfast menus
Lesser-known cuisines continue to make their mark
Using menus to mark cultural events
Burger and Chicken Restaurants
Fast food operators look to wider food trends
Being adventurous with types of meat
Branching out into alcohol
Technological developments
Other selected launches/innovation
Costa Coffee explores on-the-go and in-store baked
Pret A Manger looks into vegetarian food
Vita Mojo looks to offer perfectly tailored meals
The Bunyadi offers naked dining
BRAND RESEARCH
What you need to know
Brand map
Figure 13: Attitudes towards and usage of selected brands, April 2016
Key brand metrics
Figure 14: Key metrics for selected brands, April 2016
YO! Sushi stands out for innovation
Figure 15: Attitudes, by brand, April 2016
Greggs and Harvester suffer from some unfavourable associations…
Figure 16: Brand personality – macro image, April 2016
…but Harvester is viewed favourably as a family brand
Figure 17: Brand personality – micro image, April 2016
Greggs seen as convenient but generic
Figure 18: User profile of Greggs, April 2016
YO! Sushi is perceived as an innovative brand
Figure 19: User profile of YO! Sushi, April 2016
Wagamama enjoys high levels of ‘excellent’ user reviews
Figure 20: User profile of Wagamama, April 2016
Pret A Manger has forged a strong reputation
Figure 21: User profile of Pret A Manger, April 2016
EAT has the lowest user share of the selected brands citing ‘excellent’ experiences
Figure 22: User profile of EAT, April 2016
Harvester is viewed as a family brand but one in need of refreshing
Figure 23: User profile of Harvester, April 2016
Côte is not a widely known brand
Figure 24: User profile of Côte, April 2016
THE CONSUMER – WHAT YOU NEED TO KNOW
Cafés/coffee shops remain popular
28% of restaurant diners eat in at least once a week
Freshness is key for communicating quality
Quicker service is key to increasing the use of ordering technology
Consumers want greater transparency around service charges and tips
VENUES VISITED 
Cafés/coffee shops remain popular
Figure 25: Fast food restaurants visited in the last three months, April 2016
Figure 26: Fast food restaurants visited in the last three months, 2014-16
Sandwich shops are more geared towards takeaways
Dining out remains more popular than takeaways
Figure 27: Restaurants visited in the last three months, April 2016
Little annual change in restaurant usage
Figure 28: Restaurants visited to eat in, 2013-16
Figure 29: Restaurants visited for takeaway/home delivery, 2013-16
FREQUENCY OF EATING OUT 
28% of restaurant diners eat in at least once a week
Figure 30: Frequency of eating out or ordering takeaways/home deliveries, April 2016
Little annual change in frequency of eating out
Figure 31: Frequency of dining out and ordering takeaway/home delivery, 2013-16
DEFINING A ‘GOOD QUALITY DISH’
Freshness is key for communicating quality…
Figure 32: Perceptions of what constitutes a ‘good quality dish’, April 2016
Showing the work can communicate freshness
…as is being handmade, authenticity and local sourcing
Focusing on the ingredients can elevate a dish
The appeal of British
Seasonality resonates
USE OF TECHNOLOGY FOR ORDERING
Quicker service is key to increasing the use of ordering technology
High openness to digital ordering among under-45s
Quicker service the main appeal of digital ordering
Figure 33: Enticements to use digital platforms when ordering food/drink, April 2016
Customising orders appeals to under-35s
Health factors can also play a part
Customer service could also be improved with technology
ATTITUDES TOWARDS RESTAURANTS
Consumers want greater transparency around service charges and tips
Figure 34: Attitudes towards restaurants, April 2016
Tips included in the dish price appeals to many
Healthier options also resonate with many consumers
Suggestions welcome
High expectations for foodservice operator to take responsibility
Potential for dine-in venues to mine on-the-go consumption and snacks
High interest in on-the-go from favourite brands
Snacking holds potential for restaurants
Technology and themed event innovation
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Brand research
Brand map
APPENDIX – MARKET SIZE AND SEGMENTATION
Figure 35: Best- and worst-case forecasts for the eating out market, by value, 2016-21
Forecast Methodology