Table of Contents
Overview
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- What you need to know
- Products covered in this report
Executive Summary
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- The market
- Eating out market value continues to grow
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- Figure 1: UK eating out market size and forecast, 2013-23
- Income squeeze has started to ease but many remain cautious
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- Figure 2: UK eating out market size and forecast, 2013-23
- Companies and brands
- Casual dining chains diversify off the high street
- Plastic-free initiatives
- 2018 a year of consolidation
- The consumer
- Number of visitors declined in 2018
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- Figure 3: Restaurants and food outlets visited for eat-in meals, May 2017 and June 2018
- Popular takeaway cuisines lose out to healthier convenience
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- Figure 4: Restaurants and food outlets visited for takeaway/delivery, May 2017 and June 2018
- Most eat in at pubs and buy takeaways from fish and chip or kebab shops
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- Figure 5: Food outlets visited for eat-in versus takeaway occasions, June 2018
- Friday takeaways have cannibalised dine-in sales
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- Figure 6: Days of the week usage for eating out-of-home occasions, June 2018
- Cost is a key barrier to weekday usage
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- Figure 7: Reasons for not eating out-of-home Mondays to Thursdays, June 2018
- Consumers prioritise sharing experiences
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- Figure 8: Dining companions for takeaway/delivery occasions, June 2018
- Customisable meals matter to consumers
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- Figure 9: Eating out-of-home behaviours, June 2018
- What we think
Issues and Insights
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- Allocate weekdays for fun get-togethers with friends
- The facts
- The implications
- Weekday menu choices that cater to healthy lifestyles
- The facts
- The implications
- Enhance takeaway or delivery options for solo diners
- The facts
- The implications
The Market – What You Need to Know
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- Eating out market value is forecast to grow to £83 billion by 2023
- Income squeeze has started to ease but many remain cautious
- Freelance home delivery with questionable employment rights
- Rising costs put pressure on operators
Market Size, Segmentation and Forecast
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- Eating out market holding up well…
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- Figure 10: UK eating out market size and forecast, 2013-23
- …but faces challenges
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- Figure 11: UK eating out market size and forecast, 2013-23
- The opportunities
- Forecast methodology
Market Drivers
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- Confidence holding up but many remain cautious
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- Figure 12: Trends in how respondents would describe their financial situation, September 2009-August 2018
- Rising costs continue to put pressure on operators
- Business rates
- National Living Wage and National Minimum Wage
- UK employment continues to rise
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- Figure 13: Employment and unemployment, by gender, 2013-23
- Delivery workers’ rights
- Growing population can benefit the eating out economy
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- Figure 14: Trends in the age structure of the UK population, 2013-23
- More choice, more competition
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- Figure 15: Eating out behaviours, June 2018
- Third-party ‘dark kitchens’
- In-house delivery-only services
Companies and Brands – What You Need to Know
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- Casual dining chains diversify off the high street
- Plastic-free initiatives
- Greggs and McDonald’s perceived as the most value-oriented brands
- 2018 a year of consolidation
Competitive Strategies
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- Acquisitions
- JAB acquires Pret
- Coca-Cola acquires Costa
- Heineken acquires Punch
- Distribution
- Nando’s grows supermarket range
- Leon eyes Irish market
- Franco Manca expands north
- Refinancing
- Be At One completes refinancing with Santander
- Wasabi receives funding from HSBC
- Business support
- Just Eat launches the ‘Business Booster’
- Deliveroo launches restaurant reward scheme
Case Studies
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- Casual dining targets captive audiences
- Workplace
- Airports
- Cruises
- Travel hubs
- Supermarkets
- Technology drives customer experience
- Email marketing
- Feedback marketing
- Pricing management
Launch Activity and Innovation
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- Plastic-free planet
- Deposit and return scheme
- Reuse model – “like a Boris Bike”
- Restaurant events catering
- Food hygiene
Brand Research
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- Brand map
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- Figure 16: Attitudes towards and usage of selected foodservice brands, July 2018
- Key brand metrics
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- Figure 17: Key metrics for selected foodservice brands, July 2018
- Brand attitudes: Greggs and McDonald’s most value-oriented brands
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- Figure 18: Attitudes, by brand, July 2018
- Brand personality: McDonald’s most fun and Costa most ethical
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- Figure 19: Brand personality – Macro image, July 2018
- While Wetherspoon is most welcoming, it’s not as family-friendly as McDonald’s
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- Figure 20: Brand personality – Micro image, July 2018
- Brand analysis
- Most people unmoved by JD Wetherspoon’s efforts to improve healthy choices
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- Figure 21: User profile of JD Wetherspoon, July 2018
- Greggs appeals to Millennials without alienating older generations
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- Figure 22: User profile of Greggs, July 2018
- Costa Coffee wins Millennials over with healthy options and eco-friendly initiatives
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- Figure 23: User profile of Costa Coffee, July 2018
- Subway stands out as healthiest brand of all
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- Figure 24: User profile of Subway, July 2018
- Innovation and technology has helped transform Domino’s into a fun brand
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- Figure 25: User profile of Domino’s, July 2018
- McDonald’s stands out as the most favourite brand of all
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- Figure 26: User profile of McDonald’s, July 2018
- Pizza Hut fails to boost footfall despite refreshed restaurant image
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- Figure 27: User profile of Pizza Hut, July 2018
The Consumer – What You Need to Know
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- Number of overall visitors declined in 2018
- Most eat in at pubs and buy takeaways from fish and chip or kebab shops
- Friday takeaways have cannibalised dine-in sales
- Cost is a key barrier to weekday usage
- Consumers prioritise sharing experiences
- Customisable meals matter more to time-poor consumers
Annual Changes in Eating Out Participation
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- Decline in eating out
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- Figure 28: Overall eating out usage, June 2018
- Many sit-down venues are under increasing pressure
- Grab-and-go destinations particularly desirable
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- Figure 29: Restaurants and food outlets visited for eat-in meals, May 2017 and June 2018
- Popular takeaway cuisines lose out to healthier convenience
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- Figure 30: Restaurants and food outlets visited for takeaway/delivery, May 2017 and June 2018
Fast Food Venues Visited
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- Most people eat in at coffee shops, burger and chicken outlets
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- Figure 31: Fast food outlets visited for eat-in occasions June 2018
- Half of consumers eat in at one or two types of fast food outlets …
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- Figure 32: Repertoire of fast food outlets visited for eat in occasions, June 2018
- Most people buy takeaways from fish and chip or kebab shops
- Burger and chicken bars the second type most visited for takeaways
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- Figure 33: Fast food outlets visited for takeaway/delivery occasions, June 2018
- People are most likely to buy takeaway from one or two types of fast food outlets…
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- Figure 34: Repertoire of fast food outlets visited for takeaway/delivery, June 2018
Restaurants Visited
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- Most people eat in at pub restaurants or bars
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- Figure 35: Restaurants visited for eat in occasions, June 2018
- People are most likely to eat in at five or six types of restaurants
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- Figure 36: Repertoire of restaurants visited for eat in occasions, June 2018
- Young families and under-45s driving demand for restaurant takeaways
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- Figure 37: Restaurants visited for takeaway/delivery occasions, June 2018
- Ethnic restaurant takeaways the number one type
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- Figure 38: Repertoire of restaurants visited for takeaway/delivery, June 2018
Days of the Week Usage
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- Saturdays attract highest footfall
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- Figure 39: Days of the week usage for eating out-of-home occasions, June 2018
- Friday takeaways have cannibalised dine-in sales
Barriers to Weekday Usage
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- Cooking at home to save money
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- Figure 40: Reasons for not eating out-of-home Mondays to Thursdays, June 2018
- Customisable options matter more when consumers are time-starved
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- Figure 41: Reasons for not eating out-of-home Mondays to Thursdays, June 2018
- Innovative supermarket meals more appealing than boring menus
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- Figure 42: Reasons for not eating out-of-home Mondays to Thursdays, by eating out behaviours, June 2018
Dining Companions
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- Eating out-of-home is a family affair
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- Figure 43: Dining companions for eat-in versus takeaway/delivery occasions, June 2018
- Scope for weekday celebratory experiences
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- Figure 44: Eat-in dining companions, by days of the week usage for eat-in occasions, June 2018
- Solo diners drive weekday takeaway or delivery
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- Figure 45: Takeaway/delivery dining companions, by days of the week usage for takeaway/delivery occasions, June 2018
Eating Out Behaviours
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- It’s customer-oriented to offer customisable options
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- Figure 46: Eating out-of-home behaviours, June 2018
- Operators under pressure to increase value proposition
- Roadside kiosks
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- Figure 47: Costa Coffee roadside kiosk in London
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Figure 48: Best- and worst-case forecasts for the UK eating out market, by value, 2018-23
- Forecast methodology
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