Table of Contents
Executive Summary
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- The market
- Rising real incomes bolster the market
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- Figure 1: UK ethnic restaurants and takeaways, market size and forecast, 2010-20
- Restaurants
- Takeaways
- National Living Wage will increase wage costs
- Other foodservice operators pose a threat to ethnic restaurants
- Stalled growth in the core 16-34 user group may dampen market growth
- Companies and brands
- A fragmented market
- Caribbean restaurant market continues to see new activity
- Ethnic restaurant brands use crowdfunding to raise finance
- Acquisitions and funding set to fuel expansion
- Japanese-style restaurants enhance their breakfast menus
- Operators use cultural events to drive interest
- The consumer
- Majority of Brits use ethnic restaurants
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- Figure 2: Frequency of ordering an ethnic takeaway/home delivery, February 2012, November 2012 and October 2015
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- Figure 3: Frequency of visiting an ethnic restaurant, February 2012, November 2012 and October 2015
- Chinese remains most popular ethnic cuisine type
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- Figure 4: Use of and interest in ethnic restaurants/takeaways, by cuisine, October 2015
- Strong demand for authenticity
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- Figure 5: Menu enticements at ethnic restaurants/takeaways, October 2015
- 78% of diners see the need for expert chefs in ethnic restaurants
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- Figure 6: Attitudes towards ethnic restaurants/takeaways, October 2015
- Ethnic chain restaurants lag behind independents on perceptions of freshness and authenticity
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- Figure 7: Correspondence map of qualities associated with ethnic food, by venue type, October 2015
- What we think
Issues and Insights
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- Ethnic restaurants must promote authenticity to fend off competition from non-specialists
- The facts
- The implications
- Using technology to engage core consumers
- The facts
- The implications
- Growing use of Mexican restaurants presents opportunities
- The facts
- The implications
The Market – What You Need to Know
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- Rising real incomes bolster the market
- Restaurants
- Takeaways
- Introduction of National Living Wage will increase wage costs
- Other foodservice operators pose a threat to ethnic restaurants
- Stalled growth in the core 16-34 users may affect market going forward
Segment Performance, Market Size and Forecast
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- Rising real incomes bolster the market
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- Figure 8: UK ethnic restaurants and takeaways, market size and forecast, 2010-20
- Figure 9: UK ethnic restaurants and takeaways, market size and forecast, 2010-20
- Restaurants
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- Figure 10: UK ethnic restaurants, market size and forecast, 2010-20
- Figure 11: UK ethnic restaurants, market size and forecast, 2010-20
- Takeaways
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- Figure 12: UK ethnic takeaways, market size and forecast, 2010-20
- Figure 13: UK ethnic takeaways, market size and forecast, 2010-20
Market Drivers
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- Introduction of National Living Wage will increase wage costs
- Dining out is still struggling to win share in consumer spend
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- Figure 14: Proportion of people who spend extra money on dining out, November 2009-October 2015
- Other foodservice operators pose a threat to ethnic restaurants
- Stalled growth in the core 16-34 users may affect market going forward
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- Figure 15: Trends in the age structure of the UK population, 2010-15 and 2015-20
Key Players – What You Need to Know
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- A fragmented market
- Indian restaurants largely independent; Japanese chains gain scale
- Caribbean restaurant market continues to see new activity
- Ethnic restaurant brands use crowdfunding to raise finance
- Acquisitions and funding set to fuel expansion
- Wagamama revamps takeaway service
- Cuban sandwiches gain visibility in 2014/15
- Japanese-style restaurants enhance their breakfast menus
- Operators use cultural events to drive interest
Launch Activity and Innovation
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- Wagamama makes its takeaway packaging more appealing
- Cuban sandwiches see increased visibility in 2014/15
- Operators use menus to mark cultural events
- ‘Flat’ food
- Japanese-style restaurants enhance their breakfast menus
Market Share
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- A fragmented market
- Ethnic restaurant brands use crowdfunding to raise finance
- Indian
- Indian restaurants: Ubiquitous, but largely independent
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- Figure 16: Selected Indian restaurant/takeaway chains, by outlet numbers, 2010-12 and 2015-16
- Japanese and other Asian cuisines
- Controlling stake in YO! Sushi sold to Mayfair Equity Partners
- Itsu secures £40m of finance for expansion
- Waitrose enters the sushi market
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- Figure 17: Selected Japanese restaurant/takeaway chains, by outlet numbers, 2010-12 and 2015-16
- Figure 18: Selected Chinese restaurant/takeaway chains, by outlet numbers, 2010-12 and 2015-16
- Giggling Squid attracts £6.4 million investment
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- Figure 19: Selected other Asian restaurant/takeaway chains, by outlet numbers, 2010-12 and 2015-16
- South American
- Las Iguanas restaurant chain is sold to Casual Dining Group
- Barburrito acquires Mexican Kitchen
- Caribbean restaurant market continues to see new activity
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- Figure 20: Selected South American restaurant/takeaway chains, by outlet numbers, 2010-12 and 2015-16
- Middle Eastern sees mixed support
Brand Communication and Promotion
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- Wagamama launches biggest ever campaign to promote revamped takeaway
- YO! Sushi launches YOLO fusion food campaign…
- …and partners with console games developer Playrise Digital
- Mexico’s Cinco de Mayo provides a focus for promotions/competitions
- Pho runs awareness campaign ahead of Manchester launch
The Consumer – What You Need to Know
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- Majority of Brits use ethnic restaurants
- Chinese remains most popular ethnic cuisine type
- Strong demand for authenticity
- 78% of users see the need for expert chefs in ethnic restaurants
- 65% of users want customisation
- Chains lag behind independents on perceptions of freshness and authenticity
Frequency of Visiting Ethnic Restaurants/Takeaways
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- A majority of Brits use ethnic restaurants
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- Figure 21: Frequency of ordering an ethnic takeaway/home delivery, February 2012, November 2012 and October 2015
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- Figure 22: Frequency of visiting an ethnic restaurant, February 2012, November 2012 and October 2015
- 16-34s are the most frequent ethnic restaurant diners
Usage of and Interest in Ethnic Restaurants/Takeaways by Cuisine
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- Chinese remains the most popular type of ethnic restaurant
- Mexican cuisine sees a surge in usage
- Rio 2016 Olympics should boost interest in South American cuisine
- Fusions/mash-ups can help boost knowledge of African cuisine
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- Figure 23: Use of and interest in ethnic restaurants/takeaways, by cuisine, December 2014 and October 2015
- A third of users eat at only one or two types of ethnic restaurant
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- Figure 24: Repertoire of ethnic restaurants used, October 2015
Menu Enticements at Ethnic Restaurants/Takeaways
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- Strong demand for authenticity
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- Figure 25: Menu enticements at ethnic restaurants/takeaways, October 2015
- Ethnic versions of traditional dishes interest one in five users
- Two in five diners are interested in low-fat/carb/salt dishes
- Low-carb
Attitudes towards Ethnic Restaurants and Takeaways
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- 78% of users see the need for expert chefs in ethnic restaurants
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- Figure 26: Attitudes towards ethnic restaurants/takeaways, October 2015
- 65% of users want customisation
- 37% of users would order via a tablet/mobile app
- Drinks pairing could give operators an edge over competitors
Qualities Associated with Ethnic Food, by Venue Type
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- Ethnic chain restaurants lag behind independents on freshness and authenticity
- Authenticity
- Perception of freshness
- Ethnic chains and independents fall down on quick service
- Diners need convincing over ‘street food’
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- Figure 27: Qualities associated with ethnic food, by venue type, October 2015
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- Figure 28: Correspondence map of qualities associated with ethnic food, by venue type, October 2015
- Methodology
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
- Best- and worst-case forecast
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- Figure 29: Best- and worst-case forecasts for UK ethnic restaurants and takeaways market, 2015-20
- Figure 30: Best- and worst-case forecasts for UK ethnic restaurants market, 2015-20
- Figure 31: Best- and worst-case forecasts for UK ethnic takeaways market, 2015-20
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