Table of Contents
Issues in the Market
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- Key issues
- Definition
- Abbreviations
Future Opportunities
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- SShhhhh…
- Carnivore, Herbivore, Locavore
Market in Brief
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- Overview
- Operator trends
- Price-focused considerations
- Operating costs
- Sales and acquisitions
- Consumer habits and opinion
Broader Market Environment
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- Key points
- Consumer confidence remains fragile
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- Figure 1: GfK NOP Consumer Confidence Index, January 2007-August 2010
- Figure 2: Trends in the impact of the economic downturn on consumers, January 2009-August 2010
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- Figure 3: Trends in consumer sentiment for the coming year, January 2009-August 2010
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- Figure 4: Trends in agreement with selected lifestyle statements, 2006-10
- Demographic factors
- An aging population will be more demanding of quality, both in terms of food and service
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- Figure 5: Trends in the age structure of the UK population, 2005-15
- Figure 6: Forecast adult population trends, by lifestage, 2005-15
- Flexible dining is a trend in its own right but also taps into growing demographic trends
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- Figure 7: UK households, by size, 2005-15
Competitive Context
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- Key points
- Eating out remains the consumers’ top spending priority
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- Figure 8: Consumer spending priorities, November 2009-August 2010
- Supermarkets pose marginal competition to restaurants
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- Figure 9: Changing grocery shopping habits, Jan 2009-July 2010
- Instances where ready meals compete more directly with the eating out market
- Family dining
- Ethnic restaurants/takeaways
- Restaurant retail products as an alternative revenue stream
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- Figure 10: Types of ready meals bought in the last six months, January 2010
Eating Out Market – Sector Overviews
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- Key points
- Eating out market
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- Figure 11: Eating out market*, by sector, 2005-09
- Sector reviews
- Previously established strategies placed the fast food industry in good stead before the recession hit the UK
- Brand differentiation and heavy discounting particular issues for pizza/pasta restaurants/takeaways
- Pub catering negatively affected by longer term market trends
- Sandwich shops benefit from the demand for convenience but lack the ‘experience’ dimension of other eating out sectors
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- Figure 12: Eating homemade sandwiches more than a year ago, June 2009-July 2010
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- Figure 13: Frequency of visiting sandwich bars, 2007-10
- Fast casual sector: An emerging sector and one to watch
- Financial results
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- Figure 14: Sales growth year-on-year (%) across leading restaurant and pub groups, April 2009 to July 2010
- Strong sales performances
- On the fence
- Underperformers
- Expansion plans
- Reinventions
- Coffee Republic
- FutureExpress
- Wimpy
Structural Changes in the Market
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- Key points
- Liquidations
- Administrations
- Acquisitions
- Bay Restaurant Group (BRG)
- Burger King
- Capricorn Ventures
- Carluccio’s
- Living Ventures Restaurants Ltd
- Mitchells & Butlers (M&B)
- Orchid Group
- Paramount Restaurants
- Prezzo plc
- Wagamama
Operating Costs
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- Key points
- Food inflation
- Menu engineering
- Menu flavour trend issues
- Menu psychology
- Non-food cost saving areas
Price-led Trends
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- Key points
- Discounting
- Have the operators trained consumers to buy on promotion?
- Vouchers
- Value ranges
Other Factors Affecting the Market
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- Key points
- Healthy eating trends
- Fast food not junk food
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- Figure 15: Trends in agreement with selected lifestyle statements, 2006-10
- Calorie counting
- Legislation and industry bodies
- Consumer opinion – calories versus ‘fresh’
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- Figure 16: Trends in agreement with selected lifestyle statements, 2006-10
- Figure 17: Attitudes towards nutritional labelling, April 2009
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- Figure 18: Demand for calorie labels on restaurant menus, June 2010-July 2010
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- Figure 19: Important ingredient attributes of a “healthy” meal, February 2010
- Ethical catering
- In-home food purchasers fail to see the benefit of buying organic
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- Figure 20: Statements on buying organic food and drink, August 2010
- Ethical stance in restaurants still an effective marketing strategy
- Other factors affecting the market
- The weather, sporting events and unforeseen occurrences
Brand Communication and Promotion
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- Key points
- Comparative advertising
- Not an easy option
- Quality over price
- Investing in web presence
- Mobile phone technology
- Social media
- Loyalty/prepaid/smart cards and phone applications
- Mobile food vans
Venues Visited
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- Key points
- Pubs remain consumers favourite eating out venue
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- Figure 21: Venues visited, August 2010
- Demographic profiles
Frequency of Eating Out
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- Key points
- From special occasion dining to eating out as a regular treat
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- Figure 22: Frequency of eating out, August 2010
- Demographic profiles
Reasons for Eating Out
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- Key points
- ‘Regular treat’ trumps eating out for special occasions
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- Figure 23: Reasons for eating out, August 2010
- Demographic profiles
How Have Eating Out Habits Changed?
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- Key points
- Over half of diners haven’t changed their eating out habits
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- Figure 24: Eating out behaviour, August 2010
- Education and training
- Demographic profiles
Areas Where Spending Has Increased
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- Key points
- The number of meal occasions that restaurants cater to are gradually developing
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- Figure 25: Increased spending on eating out, August 2010
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- Figure 26: Main meal on weekdays, 2006-10
- Breakfast
- Examples of new entrants to the breakfast market
- Not all breakfast launches are successful
- Lunch
- Balancing low cost with value for money
- Examples of new entrants
- Coffee/tea break
- Snacks
- Demographic profiles
Areas Where Spending On Eating Out Has Decreased
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- Key points
- Leisure experience trumps refuelling exercise
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- Figure 27: Decreased spending on eating out, August 2010
- Demographic profiles
How Consumers Have Cut Back On Eating Out
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- Key points
- Few consumers buy in-home deals instead of eating out
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- Figure 28: Methods of cutting back at restaurants, August 2010
- Price promotions don’t drive visits but can change purchasing behaviour
- Demographic profiles
Eating Out Targeting Opportunities
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- Key points
- Demographics largely determine the impact of the recession on diners’ eating out habits
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- Figure 29: Nets on eating out behaviour, August 2010
- Increased both spend and number of visits
- Increased spend only
- Increased number of visits only
- Both spend and number of visits has stayed about the same
- Decreased spend and number of visits
- Decreased spend only
- Decreased number of visits only
Appendix – Broader Market Environment
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- Figure 30: Trends in the impact of the economic downturn on consumers, by detailed demographics, August 2010
- Figure 31: Trends in consumer sentiment for the coming year, by detailed demographics, August 2010
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- Figure 32: Employment and unemployment, by gender, 2005-15
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Appendix – Competitive Context
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- Figure 33: Consumer spending priorities, by detailed demographics, August 2010
- Figure 34: Changing grocery shopping habits, by detaled demographics, July 2010
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Appendix – Eating Out Market – Sector Reviews
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- Figure 35: Home-made sandwich habits, by detailed demographics, July 2010
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Appendix – Structural Changes in the Market
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- Figure 36: Compulsory liquidations in the restaurants and bars industry, 2007-10
- Figure 37: Creditors’ voluntary liquidations in the restaurants and bars industry, 2007-10
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Appendix – Other Factors Affecting the Market
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- Figure 38: Demand for calorie content on menus, by detailed demographics, July 2010
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Appendix – Venues Visited
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- Figure 39: Most popular venues visited, by demographics, August 2010
- Figure 40: Next most popular venues visited, by demographics, August 2010
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- Figure 41: Other venues visited, by demographics, August 2010
- Figure 42: Venues visited, by most popular venues visited, August 2010
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- Figure 43: Venues visited, by next most popular venues visited, August 2010
- Figure 44: Venues visited, by other venues visited, August 2010
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Appendix – Frequency of Eating Out
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- Figure 45: Frequency of eating out, by demographics, August 2010
- Figure 46: Venues visited, by frequency of eating out, August 2010
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- Figure 47: Frequency of eating out, by most popular venues visited, August 2010
- Figure 48: Frequency of eating out, by next most popular venues visited, August 2010
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- Figure 49: Frequency of eating out, by most popular venues visited, August 2010
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Appendix – Reasons for Eating Out
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- Figure 50: Most popular reasons for eating out, by demographics, August 2010
- Figure 51: Venues visited, by most popular reasons for eating out, August 2010
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- Figure 52: Reasons for eating out, by most popular venues visited, August 2010
- Figure 53: Reasons for eating out, by next most popular venues visited, August 2010
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- Figure 54: Reasons for eating out, by other venues visited, August 2010
- Figure 55: Reasons for eating out, by frequency of eating out, August 2010
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Appendix – How Have Eating Out Habits Changed?
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- Figure 56: Eating out behaviour, by detailed demographics, August 2010
- Figure 57: Eating out behaviour, by demographics, August 2010
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- Figure 58: Venues visited, by eating out behaviour, August 2010
- Figure 59: Venues visited, by eating out behaviour, August 2010
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- Figure 60: Reasons for eating out, by eating out behaviour, August 2010
- Figure 61: Reasons for eating out, by eating out behaviour, August 2010
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- Figure 62: Reasons for eating out, by eating out behaviour, August 2010
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Appendix – Areas Where Spending Has Increased
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- Figure 63: Increased spending on eating out, by demographics, August 2010
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Appendix – Areas Where Spending Has Decreased
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- Figure 64: Decreased spending on eating out, by demographics, August 2010
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Appendix – How Consumers Have Cut Back on Eating Out
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- Figure 65: Most popular methods of cutting back at restaurants, by demographics, August 2010
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- Figure 66: Next most popular methods of cutting back at restaurants, by demographics, August 2010
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- Figure 67: Venues visited, by most popular methods of cutting back at restaurants, August 2010
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- Figure 68: Venues visited, by next most popular methods of cutting back at restaurants, August 2010
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- Figure 69: Methods of cutting back at restaurants, by frequency of eating out, August 2010
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- Figure 70: Reasons for eating out, by most popular methods of cutting back at restaurants, August 2010
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- Figure 71: Reasons for eating out, by next most popular methods of cutting back at restaurants, August 2010
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- Figure 72: Methods of cutting back at restaurants, by most popular reasons for eating out, August 2010
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- Figure 73: Decreased spending on eating out, by most popular methods of cutting back at restaurants, August 2010
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- Figure 74: Decreased spending on eating out, by next most popular methods of cutting back at restaurants, August 2010
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- Figure 75: Methods of cutting back at restaurants, by decreased spending on eating out, August 2010
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Appendix – Eating Out Targeting Opportunities
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- Figure 76: Nets on eating out behaviour, by demographics, August 2010
- Figure 77: Venues visited, by nets on eating out behaviour, August 2010
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- Figure 78: Frequency of eating out, by nets on eating out behaviour, August 2010
- Figure 79: Reasons for eating out, by nets on eating out behaviour, August 2010
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- Figure 80: Eating out behaviour, by nets on eating out behaviour, August 2010
- Figure 81: Increased spending on eating out, by nets on eating out behaviour, August 2010
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- Figure 82: Decreased spending on eating out, by nets on eating out behaviour, August 2010
- Figure 83: Methods of cutting back at restaurants, by nets on eating out behaviour, August 2010
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