Table of Contents
Overview
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- What you need to know
- Topics covered in this Report
Executive Summary
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- The market
- Takeaway/home delivery
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- Figure 1: UK pizza and pasta takeaway market, value sales and forecast, 2011-21
- Dine-in restaurants
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- Figure 2: UK pizza and pasta dine-in restaurants market, value sales and forecast, 2011-21
- Key players
- Domino’s leads by store numbers
- Pizza Hut Restaurants outperforms the market
- PizzaExpress rolls out Firezza
- The consumer
- Larger households are the vanguard of home delivery
- Older people dine in pizza or pasta restaurants
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- Figure 3: Frequency of visiting pizza and pasta restaurants and using takeaways/home deliveries, 2015 and 2016
- Dine-in customers are willing to spend more than £30
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- Figure 4: Approximate spend on pizza/pasta on a sit-down restaurant meal, September 2016
- Affluent diners spend less than £15 on takeaway or home delivery
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- Figure 5: Approximate spend on pizza/pasta on a takeaway/home delivery meal, September 2016
- Half of diners are uninterested in special features
- One in five diners are interested in local ingredients
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- Figure 6: Interest in special features at pizza/pasta restaurants/takeaways, September 2016
- Older people expect restaurants to reduce waste
- Smaller meal portions appeal to women
- Heavy users are interested in customisable pizza
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- Figure 7: Attitudes towards pizza/pasta restaurant/takeaway, September 2016
- Young men are interested in live music entertainment
- Digital apps attract students to order home delivery
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- Figure 8: Behaviours towards pizza and pasta restaurant/takeaway, September 2016
- What we think
Issues and Insights
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- Venues can draw on customisation trend to drive growth
- The facts
- The implications
- Women are more addicted to snacking than men
- The facts
- The implications
- Locally sourced ingredients could help operators standout
- The facts
- The implications
The Market – What You Need to Know
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- Pizza and pasta market is in growth
- Decline in core users could temper market growth
- Brits are saving money
- Over-55s make up almost 30% of the population
- Shortfall of hospitality staff intensifies
- Rising food prices
- Pressure to make food portions less sweet or smaller
Segment Performance, Market Size and Forecast
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- Pizza and pasta restaurants are in growth
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- Figure 9: Value sales^ of the total UK pizza and pasta restaurant/takeaway market, 2011-21
- Demographic changes and consumer confidence could temper market growth
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- Figure 10: UK pizza and pasta restaurant total market, value sales and forecast, 2011-21
- The takeaway/home delivery market has been bifurcating
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- Figure 11: Value sales of the UK pizza and pasta takeaway market, 2011-21
- Figure 12: UK pizza and pasta takeaway market, value sales and forecast, 2011-21
- Dine-in restaurants innovate to stay competitive
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- Figure 13: UK pizza and pasta dine-in restaurants market, value sales, 2011-21
- Figure 14: UK pizza and pasta dine-in restaurants market, value sales and forecast, 2011-21
- The impact of the EU referendum vote
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- Figure 15: Alternative market scenarios for the post-Brexit pizza and pasta restaurant total market, at current prices, 2016-21
- Eating out has been resilient in previous slowdowns
- Forecast methodology
Market Drivers
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- Savings to rival eating out as main discretional spending area
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- Figure 16: Selected consumer spending priorities (after bills), October 2015-September 2016
- Britain’s ageing population
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- Figure 17: Trends in the age structure of the UK population, 2011-16 and 2016-21
- Hospitality recruitment at its most difficult
- Brexit fears driving up food costs
- Pressure from health secretary to make food portions less sweet or smaller
- Central London rents and rates continue to rise above inflation
Companies and Brands – What You Need to Know
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- Domino’s retains an unassailable lead by store numbers
- Pizza Hut reports strong performance
- PizzaExpress beefs up takeaway business
Market Share
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- Domino’s retains an unassailable lead by store numbers
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- Figure 18: Outlet numbers of selected major pizza/pasta restaurant/takeaway brands, 2012-16
- Pizza Hut Restaurants reverses losses
- PizzaExpress reports ambitious growth plans for Firezza
- The Azzurri Group strengthens its pipeline
Launch Activity and Innovation
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- Food innovations
- Papa John's innovates in flavour and cooking techniques
- Domino’s trials premium range
- Neapolitan pizza has stretch
- Operators move towards being cashless
- Social media trends
- Short form videos on Snapchat gain traction
- Zizzi trains staff in Instagram photography
- Domino’s rolls out Facebook Chatbot
- Pizza Hut Delivery launches quick service Express format
- One-stop shop concepts on the rise
Advertising and Marketing Activity
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- Big players ramp up above-the-line advertising activities in 2015
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- Figure 19: Advertising expenditure by selected pizza and pasta operators, 2012-16
- PizzaExpress upweighted digital spend
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- Figure 20: Advertising expenditure by selected pizza and pasta operators, by media type, 2012-16
- Domino’s uses TV to support new channels
- Pizza Hut debuts new tagline and TV ad
- Nielsen Ad Intel coverage
Brand Research
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- What you need to know
- Pizza Hut is the most trusted brand of all
- Domino’s excels as an innovative and convenient brand
- PizzaExpress has a good reputation
- Brand map
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- Figure 21: Attitudes towards and usage of selected brands, September 2016
- Key brand metrics
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- Figure 22: Key metrics for selected brands, September 2016
- Brand attitudes: Frankie & Benny’s is worth paying more for, while Papa John’s continues to innovate
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- Figure 23: Attitudes, by brand, September 2016
- Brand personality – Macro: Papa John’s is seen as an ethical brand while Domino’s edges towards boring
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- Figure 24: Brand personality – Macro image, September 2016
- Brand personality – Micro: PizzaExpress is acknowledged for its health proposition while Pizza Hut is perceived as both tacky and exciting at the same time
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- Figure 25: Brand personality – Micro image, September 2016
- Brand analysis
- Domino’s is the top brand in innovation and convenience
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- Figure 26: User profile of Domino’s, September 2016
- 40% of users have never eaten at, but have heard of, PizzaExpress
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- Figure 27: User profile of PizzaExpress, September 2016
- Pizza Hut is the most trusted brand of all
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- Figure 28: User profile of Pizza Hut, September 2016
- Papa John’s is cool and ethical but offers poor value
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- Figure 29: User profile of Papa John’s, September 2016
- Frankie & Benny’s is the most fun brand of all
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- Figure 30: User profile of Frankie & Benny’s, September 2016
The Consumer – What You Need to Know
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- Three in 10 Brits buy pizza or pasta at least once a month
- 44% of diners would spend up to £20 on a sit-down meal
- 35% of diners spend £14.99 on takeaway or home delivery
- 51% of diners are uninterested in special features
- 21% of diners are interested in local ingredients
- 61% of diners would like smaller meal portions
- 67% of diners interested in the option to build their own pizza
Frequency of Visiting Pizza/Pasta Restaurants/Takeaways
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- Three in 10 Brits buy pizza or pasta at least once a month
- Takeaway or home delivery’s heavy users
- Dine-in restaurants’ heavy users
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- Figure 31: Frequency of visiting pizza and pasta restaurants, takeaways/home deliveries, September 2016
- A noticeable uplift in overall usage
- Family time drives uptake for takeaway or home delivery
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- Figure 32: Frequency of visiting pizza and pasta restaurants and using takeaways/home deliveries, 2015 and 2016
- A significant number of older people dine in pizza or pasta restaurants
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- Figure 33: Any users of pizza and pasta restaurants, by age, September 2016
Spend on Pizza/Pasta Restaurants/Takeaways
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- Scope for dine-in customers to splurge on pizza and pasta
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- Figure 34: Approximate spend on pizza/pasta on a sit-down restaurant meal, September 2016
- £15 spend cap for takeaway or home delivery
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- Figure 35: Approximate spend on pizza/pasta on a takeaway/home delivery meal, September 2016
Interest in Special Features at Pizza/Pasta Restaurants/Takeaways
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- Limited interest in special features
- One in five diners are interested in local ingredients
- Regional dishes pique one fifth of diners’ interest
- Under-35s are interested in seasonal menus
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- Figure 36: Interest in special features at pizza/pasta restaurants/takeaways, September 2016
Behaviours and Attitudes towards Pizza/Pasta Restaurants/Takeaways
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- Food waste management is an opportunity to the protect bottom line
- Smaller meal portions weigh heavily on healthy eating
- Reward schemes spark interest among heavy users
- Customisable pizza could help bolster sales
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- Figure 37: Attitudes towards pizza/pasta restaurant/takeaway, September 2016
- Young men are interested in live music entertainment
- Snacking occasions offer growth potential for pizza and pasta venues
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- Figure 38: Behaviours towards pizza/pasta restaurant/takeaway, September 2016
CHAID Analysis
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- Methodology
- Home delivery users order food digitally to save money
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- Figure 39: Pizza and pasta restaurants – CHAID – Tree output, September 2016
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- Figure 40: Target groups based on statements that apply to people about pizza/pasta restaurants/takeaways – CHAID – Table output, September 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
- Brand research
- Brand map
- Consumer research methodology
- Correspondence analysis methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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