Eating Out Review - UK - July 2011

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: UK eating out market size and forecast, 2006-16
Market factors
Figure 2: Consumer demand for display of calorie content on restaurant menus, June 2010-June 2011
Companies, brands and innovation
The consumer
Figure 3: Eating out venues visited, May 2011
Diners are prioritising value not lowest cost
Figure 4: Attitudes towards ordering, May 2011
Operators chasing footfall rather than waiting for it to come to them
Figure 5: Eating out behaviour, May 2011
What we think
ISSUES IN THE MARKET
How is the economic climate affecting the eating out market?
With so much focus on ‘value’, how else can brands stand out?
Do diners want ‘safe bets’ or something new and adventurous?
How can menu innovation drive sales?
FUTURE OPPORTUNITIES
Education, entertainment, engagement and excitement
Guiding choice
INTERNAL MARKET ENVIRONMENT
Key point
One-off events in 2011 are impacting different sectors in different ways
Figure 6: Like-for-like sales growth year-on-year (%) across leading restaurant and pub groups, November 2009-May 2011
Rising food costs continue to put pressure on the market
Healthy eating remains on the agenda, but it’s taking a new direction
Figure 7: Consumer demand for display of calorie content on restaurant menus, June 2010-June 2011
So why do operators continue to label menus?
BROADER MARKET ENVIRONMENT
Key points
Consumer confidence still volatile as personal disposable income remains squeezed
Figure 8: GfK NOP Consumer Confidence Index, January 2007-May 2011
COMPETITIVE CONTEXT
Key points
Eating out: ranked a top priority but experiencing mixed results
Figure 9: Consumer spending priorities for extra money, 2010 and 2011
Figure 10: Trading down from eating out to premium in-home foods, January 2009-June 2011
Figure 11: Trading down from out-of-home to homemade sandwiches, June 2009-June 2011
Additional revenue streams – from restaurant to retail
WHO’S INNOVATING?
Key points
 TECHNOLOGICAL ADVANCES
Convenience
Interaction
 NEW MENU/PRODUCT LAUNCHES/TRENDS
 REDESIGNS AND BRAND REVITALISATION
Re-establishing a value position
Interior redesigns
Lifestyle branding
Restaurants as social spaces
Diffusion brands
MARKET SIZE AND FORECAST
Key points
Eating out market size and forecast
Figure 12: UK eating out market size and forecast, 2006-16
Discounting dampens value growth
New era of M&A
Rollouts
Administrations
Portfolio consolidations
Forecast
Figure 13: UK eating out market size and forecast, 2006-16
Forecast methodology
MARKET SEGMENTATION
Key points
Market segmentation – overview
Figure 14: Eating out market*, by sector, 2006-10
Pubs
Ethnic restaurants and takeaways
Pizza/pasta restaurants/takeaways
Chicken/burger bars
Fish and chips
Coffee shops
Roadside catering
Sandwiches and lunchtime food
Hotel catering
In-store catering
COMPANIES AND PRODUCTS
Key points
Figure 15: Leading UK restaurant chains/operators and their brands, 2011
Gondola Holdings
PizzaExpress
Zizzi
ASK
Byron
Kettner’s
 MITCHELLS & BUTLERS
Harvester
All Bar One
Browns
Toby Carvery
Sizzling Pubs
 THE RESTAURANT GROUP (TRG)
Chiquito
Frankie & Benny’s
Garfunkel’s
 WHITBREAD GROUP
Beefeater Grill
Brewers Fayre
Table Table
Taybarns
Costa Coffee
 YUM!
Clapham House Group/GBK Restaurants Ltd
Paramount Restaurants
 TRAGUS GROUP
Café Rouge
Bella Italia
Strada
EATING OUT VENUES VISITED
Key points
Pubs still the most popular eating out venue
Figure 16: Eating out venues visited to eat in and for takeaway/home delivery, May 2011
Growth of specialists
COURSES ORDERED
Key points
Room for growth in intros and coffees
Figure 17: Courses ordered, May 2011
ATTITUDES TOWARDS ORDERING
Key points
Cheapest meal drives only 13% of diners
Figure 18: Attitudes towards ordering and choice of food, May 2011
HOW HAVE EATING OUT HABITS CHANGED?
Key points
Figure 19: Eating out behaviour, May 2011
Service formats/extending channels to market
Food festivals and food trucks
INCREASED SPENDING ON EATING OUT
Key points
Eating out during the week has gained most from rising spending
Figure 20: Increased spending on eating out, May 2011
REDUCED SPENDING ON EATING OUT
Key points
Discounting cuts spontaneity
Figure 21: Decreased spending on eating out, May 2011
EATING OUT TARGETING OPPORTUNITIES
Key points
 EATING OUT TARGET GROUPS
Figure 22: Eating out target groups, May 2011
Young and Excitable
Older and Adventurous
The Detached
Traditionalists
APPENDIX – EATING OUT VENUES VISITED
To eat in
Figure 23: Most popular eating out venues visited to eat in, by detailed demographics, May 2011
Figure 24: Next most popular eating out venues visited to eat in, by detailed demographics, May 2011
Figure 25: Other eating out venues visited to eat in, by detailed demographics, May 2011
To take away/ for a home delivery
Figure 26: Most popular eating out venues visited for takeaway/home delivery, by detailed demographics, May 2011
Figure 27: Next most popular eating out venues visited for takeaway/home delivery, by detailed demographics, May 2011
Other tables
Figure 28: Types of eating out venues visited, by most popular eating out venues visited to eat in, May 2011
Figure 29: Types of eating out venues visited, by next most popular eating out venues visited to eat in, May 2011
Figure 30: Types of eating out venues visited, by other eating out venues visited to eat in, May 2011
Figure 31: Eating out venues visited to eat in, by most popular eating out venues visited to eat in, May 2011
Figure 32: Eating out venues visited to eat in, by next most popular eating out venues visited to eat in, May 2011
Figure 33: Eating out venues visited to eat in, by other eating out venues visited to eat in, May 2011
APPENDIX – COURSES ORDERED
Figure 34: Intro’s (eg olives, breads) course ordered, by detailed demographics, May 2011
Figure 35: Starters ordered, by detailed demographics, May 2011
Figure 36: Main course ordered, by detailed demographics, May 2011
Figure 37: Desserts ordered, by detailed demographics, May 2011
Figure 38: Cheeseboard ordered, by detailed demographics, May 2011
Figure 39: Alcohol (ie wine/beer) ordered, by detailed demographics, May 2011
Figure 40: Coffee/tea (eg Americano, liqueur) ordered, by detailed demographics, May 2011
Figure 41: Eating out venues visited to eat in, by courses ordered, May 2011
Figure 42: Eating out venues visited to eat in, by courses ordered, May 2011
APPENDIX – ATTITUDES TOWARDS ORDERING
Figure 43: Attitudes towards ordering and choice of food, May 2011
Figure 44: Agreement with the statements ‘I tend to always order the same thing’ and ‘I tend to order something I don’t/can’t cook myself at home’, by detailed demographics, May 2011
Figure 45: Agreement with the statements ‘I usually go to the same place/places’ and ‘I usually choose the cheapest meal’, by detailed demographics, May 2011
Figure 46: Agreement with the statements ‘What I choose depends on the season/weather (eg lighter dishes in summer, hearty food when it’s cold)’ and ‘I often eat out on the spur of the moment’, by detailed demographics, May 2011
Figure 47: Agreement with the statements ‘I prefer to eat in an independent restaurant than a chain’ and ‘I’m always looking for new restaurants to eat in’, by detailed demographics, May 2011
Figure 48: Agreement with the statement ‘I would like to see the number of calories of each dish on restaurant menus’, by detailed demographics, May 2011
Figure 49: Eating out venues visited to eat in, by most popular attitudes towards ordering and choice of food, May 2011
Figure 50: Eating out venues visited to eat in, by next most popular attitudes towards ordering and choice of food, May 2011
Figure 51: Courses ordered, by most popular attitudes towards ordering and choice of food, May 2011
Figure 52: Courses ordered, by next most popular attitudes towards ordering and choice of food, May 2011
Figure 53: Attitudes towards ordering, by most popular attitudes towards ordering and choice of food, May 2011
Figure 54: Attitudes towards ordering, by next most popular attitudes towards ordering and choice of food, May 2011
APPENDIX – HOW HAVE EATING OUT HABITS CHANGED?
Figure 55: Change in amount spent on eating out in a typical month, by detailed demographics, May 2011
Figure 56: Change in frequency of eating out in a typical month, by detailed demographics, May 2011
Figure 57: Eating out behaviour, by types of eating out venues visited, May 2011
Figure 58: Courses ordered, by change in amount spent on eating out in a typical month, May 2011
Figure 59: Courses ordered, by change in frequency of eating out in a typical month, May 2011
Figure 60: Attitudes towards ordering, by change in amount spent on eating out in a typical month, May 2011
Figure 61: Attitudes towards ordering, by change in frequency of eating out in a typical month, May 2011
Figure 62: Financial situation over the next year or so, by change in amount spent on eating out in a typical month, May 2011
Figure 63: Financial situation over the next year or so, by change in frequency of eating out in a typical month, May 2011
Figure 64: Eating out behaviour, by financial situation over the next year or so, May 2011
Figure 65: Eating out behaviour, by change in amount spent on eating out in a typical month, May 2011
Figure 66: Consumer spending priorities, by change in frequency of eating out in a typical month, May 2011
Figure 67: Consumer spending priorities, by financial situation over the next year or so, May 2011
APPENDIX – INCREASED SPENDING ON EATING OUT
Figure 68: Increased spending on eating out, by detailed demographics, May 2011
Figure 69: Increased spending on eating out, by increased spending on eating out, May 2011
APPENDIX – REDUCED SPENDING ON EATING OUT
Figure 70: Most popular decreased spending on eating out, by detailed demographics, May 2011
Figure 71: Next most popular decreased spending on eating out, by detailed demographics, May 2011
Figure 72: Other decreased spending on eating out, by detailed demographics, May 2011
Figure 73: Decreased spending on eating out, by most popular decreased spending on eating out, May 2011
Figure 74: Decreased spending on eating out, by next most popular decreased spending on eating out, May 2011
Figure 75: Decreased spending on eating out, by other decreased spending on eating out, May 2011
APPENDIX – EATING OUT TARGETING OPPORTUNITIES
Figure 76: Eating out target groups, by types of eating out venues visited, May 2011
Figure 77: Eating out target groups, by eating out venues visited to eat in, May 2011
Figure 78: Eating out target groups, by eating out venues visited for takeaway/home delivery, May 2011
Figure 79: Eating out target groups, courses ordered, May 2011
Figure 80: Eating out target groups, by attitudes towards ordering, May 2011
Figure 81: Eating out target groups, by detailed demographics, May 2011