Eating Out Review - UK - June 2014

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: UK eating out market size and forecast, 2009-19
Market drivers
Companies, brands and innovation
Companies and products
Who’s innovating?
Brand perceptions
Figure 2: Attitudes towards and usage of brands in the restaurant sector, April 2014
Figure 3: Restaurant brand personality – Macro image, April 2014
The consumer
Fast food restaurants visited
Figure 4: Fast food restaurants visited, April 2014
Restaurants visited
Figure 5: Restaurants visited – Any visit, April 2013 and April 2014
Frequency of eating out
Figure 6: Frequency of eating out, April 2014
Reasons for eating out
Figure 7: Reasons for eating out, April 2014
Attitudes towards healthy eating when eating out
Figure 8: Attitudes towards healthy eating when eating out, April 2014
What it means
ISSUES AND INSIGHTS
Putting the experience back into the eating out experience
The facts
The implications
Creating additional purchasing opportunities
The facts
The implications
Countering or catering to healthy eating trends?
The facts
The implications
TREND APPLICATION
Big plates versus skinny plates
Help me help myself
Giving consumers control through choice
MARKET DRIVERS
Key points
Consumer confidence improves but real incomes remain under pressure
Figure 9: GfK NOP consumer confidence index, monthly, January 2007-April 2014
Figure 10: Trends in consumer sentiment for the coming year, April 2009-May 2014
Consumer spending priorities – Savings rival eating out
Figure 11: Selected consumer spending priorities (after bills), November 2009-March 2014
Demographic trends pose challenges and opportunities
Figure 12: Forecast adult population trends, by lifestage, 2008-18
Figure 13: Trends in the age structure of the UK population, 2008-18
WHO'S INNOVATING?
Key points
 CONTEMPORARY MAKEOVERS AND BRANDING JOURNEYS
Pizza Hut using venue redesign to emphasise its American heritage to create stronger differentiation
Beefeater looks to celebs to update its ‘boring’ image
Harry Ramsden’s modernises interiors and menus to re-establish its position in the face of rising competition
 TECHNOLOGICAL DEVELOPMENTS
Improvements to website functionality
Booking and pre-ordering
Push marketing
Faster service formats
Payment apps in the UK
In-store technology in the US
In-store technology can add to dining experience
From functional to engaging content
Photo sharing used to promote menu launches and prompt brand conversation
Video content can help build brand transparency…
…and brand personality
MARKET SIZE AND FORECAST
Key points
Eating out market size and forecast
Figure 14: UK eating out market size and forecast, 2009-19
Forecast
Figure 15: UK eating out market size and forecast, 2009-19
Forecast methodology
MARKET SEGMENTATION
Key points
Market segmentation – Overview
Figure 16: Eating out market*, by sector, 2009-13
Emerging concepts heat up the competition in the market
Operators look to menu innovation and lifestyle relevance
Strong performers
Mixed fortunes in pizza/pasta
Pubs hold their lead thanks to value image
Fast food benefits from new occasions…
…and the demand for convenience
Weak performers
MARKET SHARE
Key points
Outlet numbers
Figure 17: Selected leading restaurant chains/operators, by outlet numbers, 2011-14
Competitive marketplace sees numerous brands change hands
While some brands streamline, others grow
Growing pressure on bigger players from emerging ‘brands to watch’
Ed’s Easy Diner
Bill’s
Côte
Drake & Morgan
COMPANIES AND PRODUCTS
Key points
Overview
Gondola Holdings
Background
Figure 18: Gondola restaurants, outlet and employee numbers, by brand, 2010-13
Financial data
Figure 19: Gondola Holdings financial results, 2009-13
Recent developments
Tragus Group
Background
Financial data
Figure 20: Tragus Group financial results, 2009-13
Recent developments
The Restaurant Group (TRG)
Background
Figure 21: The Restaurant Group brands, outlet growth, 2009-13
Financial data
Figure 22: The Restaurant Group financial results, 2009-13
Recent developments
BRAND PERCEPTIONS AND SOCIAL MEDIA
 BRAND PERCEPTIONS
Key brand metrics
Figure 23: Key brand metrics, April 2014
Brand map
Figure 24: Attitudes towards and usage of brands in the restaurant sector, April 2014
Correspondence analysis
Brand attitudes
Figure 25: Attitudes, by restaurant brand, November 2013
Brand personality
Figure 26: Restaurant brand personality – Macro image, April 2014
Figure 27: Restaurant brand personality – Micro image, April 2014
Brand usage
Figure 28: Restaurant brand usage, April 2014
Brand experience
Figure 29: Restaurant brand experience, April 2014
 SOCIAL MEDIA AND ONLINE BUZZ
Social media metrics
Figure 30: Social media metrics of selected restaurant brands, June 2014
Online mentions
Figure 31: Selected restaurant brands’ share of conversation, by week, April 2014
Topics of discussion
Figure 32: Topics of discussion around restaurant brands combined, April 2014
Figure 33: Share of overall brand discussion, by topic, by week, 26 May 2013-31 May 2014
Where discussion is occurring
Figure 34: Where discussion occurs around selected restaurant brands combined, 1 June 2013-31 May 2014
Analysis by brand
T.G.I. Friday’s
Figure 35: Topic cloud around mentions of T.G.I. Friday’s, 26 May 2013-31 May 2014
Wagamama
Figure 36: Topic cloud around mentions of Wagamama, 26 May 2013-31 May 2014
Frankie & Benny’s
Figure 37: Topic cloud around mentions of Frankie & Benny’s, 26 May 2013-31 May 2014
Figure 38: Share of conversation around breakfast, 26 May 2013-31 May 2014
YO! Sushi
Figure 39: Topic cloud around mentions of YO! Sushi, 26 May 2013-31 May 2014
Chiquito
Figure 40: Topic cloud around mentions of Chiquito, 26 May 2013-31 May 2014
Café Rouge
Figure 41: Topic cloud around mentions of Café Rouge, 26 May 2013-31 May 2014
THE CONSUMER – VENUES VISITED
Key points
Fast food venues visited
Figure 42: Fast food restaurants visited, April 2014
Restaurants visited
Figure 43: Restaurants visited – Any visit, April 2013 and April 2014
Restaurants need to be more proactive in giving reasons to visit in order to win market share from other competing categories
Pubs and pizza restaurants must up their game to benefit from rising confidence
Four in five consumers eat out
Figure 44: Restaurants visited, by eat in and takeaway/home delivery, April 2014
THE CONSUMER – FREQUENCY OF EATING OUT
Key points
Nearly a third of diners still manage to eat out at least once a week
Figure 45: Frequency of eating out, April 2014
Youngsters dine out most frequently
Trend data
Figure 46: Frequency of eating out, April 2013 and April 2014
THE CONSUMER – REASONS FOR EATING OUT
Key points
Nearly half of diners eat out for a special occasion
Figure 47: Reasons for eating out, April 2014
Women are more drawn to special and social occasions for dining out
Price promotions continue to prompt usage among a minority
The need to put the ‘experience’ back into eating out
Menu innovation is a key draw
THE CONSUMER – ATTITUDES TOWARDS HEALTHY EATING WHEN EATING OUT
Key points
Healthy eating regulation
Responsibility Deal
Allergen legislation
Consumer interest remains limited
Figure 48: Selected attitudes towards health and healthy lifestyles, 2012-14
Nearly four in 10 diners don’t think about eating healthily out of home
Figure 49: Attitudes towards healthy eating when eating out, April 2014
Healthy eating menus most likely to resonate with 16-34s
Figure 50: Selected attitudes towards healthy eating when eating out, by age, April 2014
Londoners are early adopters of food trends, including healthy eating concepts
Figure 51: Selected attitudes towards healthy eating when eating out, by region, April 2014
Interest in eating healthily out of home varies considerably from sector to sector
More interest in healthy eating among European-style restaurant diners than American
Pub and pizza chains are jumping on the healthy eating bandwagon
Lunch is a key category for healthy eating
Breakfast opportunities
Health opportunities in the ethnic sector
APPENDIX – MARKET DRIVERS
Figure 52: GDP, PDI, consumer expenditure and savings, at constant 2013 prices, 2008-18
APPENDIX – MARKET SIZE AND FORECAST
Figure 53: Best- and worst-case forecasts for UK eating out market size and forecast, 2014-19
APPENDIX – BRAND PERCEPTIONS AND SOCIAL MEDIA
Figure 54: Brand usage, April 2014
Figure 55: Brand commitment, April 2014
Figure 56: Brand diversity, April 2014
Figure 57: Brand satisfaction, April 2014
Figure 58: Brand recommendation, April 2014
Figure 59: Brand attitude, April 2014
Figure 60: Brand image – Macro image, April 2014
Figure 61: Brand image – Micro image, April 2014
Figure 62: Share of conversation of selected restaurant brands, 26 May 2013-31 May 2014
Figure 63: Topics of discussion around selected restaurant brands, 26 May 2013-31 May 2014
Figure 64: Share of overall brand discussion, by topic, by week, 26 May 2013-31 May 2014
APPENDIX – THE CONSUMER – FAST FOOD RESTAURANTS VISITED
Figure 65: Fast food restaurants visited, April 2014
Figure 66: Fast food restaurants visited – Any visit, by demographics, April 2014
Figure 67: Fast food restaurants visited – Eat in, by demographics, April 2014
Figure 68: Fast food restaurants visited – Takeaway/home delivery, by demographics, April 2014
Figure 69: Attitudes towards healthy eating when eating out, by fast food restaurants visited – Any visit, April 2014
APPENDIX – THE CONSUMER – RESTAURANTS VISITED
Figure 70: Restaurants visited, April 2014
Figure 71: Most popular restaurants visited – Any visit, by demographics, April 2014
Figure 72: Next most popular restaurants visited – Any visit, by demographics, April 2014
Figure 73: Most popular restaurants visited – Eaten in, by demographics, April 2014
Figure 74: Next most popular restaurants visited – Eaten in, by demographics, April 2014
Figure 75: Most popular restaurants visited – Takeaway/home delivery, by demographics, April 2014
Figure 76: Next most popular restaurants visited – Takeaway/home delivery, by demographics, April 2014
Figure 77: Attitudes towards healthy eating when eating out, by most popular restaurants visited – Any visit, April 2014
Figure 78: Attitudes towards healthy eating when eating out, by next most popular restaurants visited – Any visit, April 2014
APPENDIX – THE CONSUMER – FREQUENCY OF EATING OUT
Figure 79: Frequency of eating out, April 2014
Figure 80: Frequency of eating out – Eat in, by demographics, April 2014
Figure 81: Frequency of eating out – Takeaway/home delivery, by demographics, April 2014
Figure 82: Attitudes towards healthy eating when eating out, by frequency of eating out – Eat in, April 2014
Figure 83: Attitudes towards healthy eating when eating out, by frequency of eating out – Takeaway/home delivery, April 2014
APPENDIX – THE CONSUMER – REASONS FOR EATING OUT
Figure 84: Reasons for eating out, April 2014
Figure 85: Most popular reasons for eating out – Any, by demographics, April 2014
Figure 86: Next most popular reasons for eating out – Any, by demographics, April 2014
Figure 87: Other reasons for eating out – Any, by demographics, April 2014
Figure 88: Most popular reasons for eating out – Rank 1, by demographics, April 2014
Figure 89: Next most popular reasons for eating out – Rank 1, by demographics, April 2014
Figure 90: Most popular reasons for eating out – Rank 2, by demographics, April 2014
Figure 91: Next most popular reasons for eating out – Rank 2, by demographics, April 2014
Figure 92: Most popular reasons for eating out – Rank 3, by demographics, April 2014
Figure 93: Next most popular reasons for eating out – Rank 3, by demographics, April 2014
Figure 94: Attitudes towards healthy eating when eating out, by most popular reasons for eating out – Any, April 2014
Figure 95: Attitudes towards healthy eating when eating out, by next most popular reasons for eating out – Any, April 2014
Figure 96: Attitudes towards healthy eating when eating out, by most popular reasons for eating out – Rank 1, April 2014
Figure 97: Attitudes towards healthy eating when eating out, by next most popular reasons for eating out – Rank 1, April 2014
Figure 98: Attitudes towards healthy eating when eating out, by most popular reasons for eating out – Rank 2, April 2014
Figure 99: Attitudes towards healthy eating when eating out, by next most popular reasons for eating out – Rank 2, April 2014
Figure 100: Attitudes towards healthy eating when eating out, by most popular reasons for eating out – Rank 3, April 2014
Figure 101: Attitudes towards healthy eating when eating out, by next most popular reasons for eating out – Rank 3, April 2014
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS HEALTHY EATING WHEN EATING OUT
Figure 102: Attitudes towards healthy eating when eating out, April 2014
Figure 103: Most popular attitudes towards healthy eating when eating out, by demographics, April 2014
Figure 104: Next most popular attitudes towards healthy eating when eating out, by demographics, April 2014
Figure 105: Attitudes towards healthy eating when eating out, by most popular attitudes towards healthy eating when eating out, April 2014
Figure 106: Attitudes towards healthy eating when eating out, by next most popular attitudes towards healthy eating when eating out, April 2014