Alcohol in Restaurants - UK - April 2011

INTRODUCTION
Definition
Consumer research
Abbreviations
ISSUES IN THE MARKET
How are consumers’ attitudes towards eating out impacted by the economy?
What do the recent budget and changes to the regulatory framework mean for the restaurant business?
What factors influence what consumers choose to drink in restaurants?
How can restaurants improve their drinks menus to better meet diners’ expectations?
EXECUTIVE SUMMARY
Market
Market drivers
Figure 1: Trends in agreement with lifestyle statements on drinking, 2006-10
Companies and products
Pricing trends
Making fine wine more accessible
Bring Your Own (BYO) trends
Health trends
Ethical trends
Technology trends
The consumer
Drinking habits
Figure 2: Frequency of drinking alcohol, March 2011
Changes to drinking habits
Figure 3: Changes to drinking habits, March 2011
Drinks ordered in a restaurant
Figure 4: Alcohol drunk in restaurants, March 2011
Motivations for drinks choice
Figure 5: Motivations for drinks choice in restaurants, March 2011
Drinks menu enticements
Figure 6: Drinks menu enticements, March 2011
What we think?
FUTURE OPPORTUNITIES
Using samples to encourage up-selling
Guiding choice whilst prompting sales
INTERNAL MARKET ENVIRONMENT
Key points
2011: Cautious but fairly positive start to the year
Figure 7: Sales growth year on year (%) across leading restaurant and pub groups, November 2009-February 2011
Alcohol duty
Minimum pricing for alcohol debate
VAT increase
Weights and Measures Act update
Pub Health Responsibility Deal
Pledges
Critics
BROADER MARKET ENVIRONMENT
Key points
Consumer confidence still low
Figure 8: GfK NOP Consumer Confidence Index, January 1988-February 2011
Figure 9: Trends in consumer confidence for the coming year, March 2009-March 2011
Consumers balancing the need to save with the desire for ‘experiences’
Figure 10: Consumer spending priorities, November 2009- February 2011
Demographic trends
Figure 11: Forecast adult population trends, by lifestage, 2005-15
RESTAURANT VISITING TRENDS
Key points
Restaurant usage relatively stable…
Figure 12: Trends in frequency of visiting restaurant for a meal, 2006-10
…but diners need more assurance to ‘splash out’
Figure 13: Trends in agreement with selected lifestyle statements on restaurants, 2006-10
Growth in casual dining
Restaurants filling the gaps in consumers’ hectic lifestyles
Figure 14: Agreement with statements on food, by restaurant usage, 2010
PRICE TRENDS
Key points
Consumers prioritise value for money over lowest cost...
...but there’s declining enthusiasm for ‘splashing out’
Figure 15: Trends in agreement with lifestyle statements on drinking, 2006-10
Figure 16: Agreement with statements on drinking, by restaurant usage, 2010
Pricing concerns
Is fine wine becoming more accessible?
Flexible pricing
Menu psychology
Deals and discounting
Bring Your Own (BYO) trends
HEALTH TRENDS
Key points
Figure 17: Consumer demand for calorie content to be displayed on restaurant menus, June 2010-February 2011
ETHICAL TRENDS
Key points
Figure 18: Trends in changing grocery shopping habits, February 2009-February 2011
Figure 19: Agreement with statements on ethical food, by restaurant usage, 2010
TECHNOLOGY TRENDS
Key points
Digital wine lists
Other technological innovations
DRINKING HABITS
Key points
Frequency of drinking alcohol
Figure 20: Frequency of drinking alcohol, March 2011
Shift towards in-home drinking, but both in- and out-of-home drinking are in decline
Figure 21: Trends in drinking habits, 2006-10
Demographic differences
Changes to drinking habits
Figure 22: Changes to drinking habits, March 2011
Figure 23: Reasons why drinkers are consuming less, March 2011
Drinking occasions
Figure 24: Drinking occasions, 2010
ALCOHOL CONSUMPTION IN RESTAURANTS
Key points
Drinks ordered in a restaurant
Figure 25: Alcohol drunk in restaurants, March 2011
Demographic differences
Wine
Figure 26: Types of wine drinkers, April 2010
Beer
Cocktails
Liqueurs
Figure 27: Liqueur drinking occasions in the past year, March 2010
MOTIVATIONS FOR DRINKS CHOICE IN RESTAURANTS
Key points
Most diners are habitual drinkers
Figure 28: Motivations for drinks choice in restaurants, March 2011
Price issues
Recommendations
Figure 29: Motivations for drinks choice in restaurants, by frequency of drinking alcohol, March 2011
Creating a sense of exclusivity and urgency of purchase
Food/drink matching
Taking it a step further
DRINKS MENU ENTICEMENTS
Key points
More consumers are interested in alcohol unit labelling than calorie counting
Figure 30: Drinks menu enticements, March 2011
Alcohol unit labelling
Figure 31: Harvester’s alcohol unit measuring table, 2011
Wine by the carafe
Wine flights
Calorie counting
Wider range of lower-alcohol beverages
ALCOHOL IN RESTAURANTS TARGETING OPPORTUNITIES
Key points
Figure 32: Alcohol in restaurants target groups, March 2011
Enthusiastic Youngsters
Innovation Seekers
Routine Indulgers
Food & Drink Matchers
APPENDIX – BROADER MARKET ENVIRONMENT
Figure 33: Most popular trends in consumer spending priorities, by detailed demographics, December 2010
Figure 34: Next most popular trends in consumer spending priorities, by detailed demographics, December 2010
Figure 35: Other trends in consumer spending priorities, by detailed demographics, December 2010
Figure 36: Least popular trends in consumer spending priorities, by detailed demographics, December 2010
APPENDIX – RESTAURANT VISITING TRENDS
Figure 37: Frequency of visiting restaurant for a meal, by detailed demographics, 2010
Figure 38: When a restaurant is visited regularly, by detailed demographics, 2010
Figure 39: When a restaurant is visited occasionally, by detailed demographics, 2010
Figure 40: Agreement with selected lifestyle statements, by detailed demographics, 2010
APPENDIX – PRICE TRENDS
Figure 41: Agreement with lifestyle statements on drinking, by detailed demographics, 2010
Figure 42: Agreement with lifestyle statements on drinking, by detailed demographics, 2010
APPENDIX – DRINKING HABITS
Figure 43: Frequency of drinking alcohol, March 2011
Figure 44: Frequency of drinking alcohol, by detailed demographics, March 2011
Figure 45: Changes to drinking habits, March 2011
Figure 46: Changes to drinking habits, by detailed demographics, March 2011
Figure 47: Changes to drinking habits, by frequency of drinking alcohol, March 2011
Figure 48: Drinking occasions out of home, by detailed demographics, 2010
Figure 49: Drinking occasions out of home, by detailed demographics, 2010
APPENDIX – ALCOHOL CONSUMPTION IN RESTAURANTS
Figure 50: Restaurant drinking habits, March 2011
Figure 51: Most popular restaurant drinking habits, by detailed demographics, March 2011
Figure 52: Next most popular restaurant drinking habits, by detailed demographics, March 2011
Figure 53: Other restaurant drinking habits, by detailed demographics, March 2011
Figure 54: Restaurant drinking habits, by frequency of drinking alcohol, March 2011
Figure 55: Restaurant drinking habits, by changes to drinking habits, March 2011
Figure 56: Most popular restaurant drinking habits, by restaurant drinking habits, March 2011
Figure 57: Next most popular restaurant drinking habits, by restaurant drinking habits, March 2011
Figure 58: Other restaurant drinking habits, by restaurant drinking habits, March 2011
APPENDIX – MOTIVATIONS FOR DRINKS CHOICE IN RESTAURANTS
Figure 59: Motivations for drinks choice in restaurants, March 2011
Figure 60: Most popular motivations for drinks choice in restaurants, by detailed demographics, March 2011
Figure 61: Next most popular motivations for drinks choice in restaurants, by detailed demographics, March 2011
Figure 62: Motivations for drinks choice in restaurants, by frequency of drinking alcohol, March 2011
Figure 63: Motivations for drinks choice in restaurants, by changes to drinking habits, March 2011
Figure 64: Most popular restaurant drinking habits, by motivations for drinks choice in restaurants, March 2011
Figure 65: Next most popular restaurant drinking habits, by motivations for drinks choice in restaurants, March 2011
Figure 66: Other popular restaurant drinking habits, by motivations for drinks choice in restaurants, March 2011
Figure 67: Most popular motivations for drinks choice in restaurants, by motivations for drinks choice in restaurants, March 2011
Figure 68: Next most popular motivations for drinks choice in restaurants, by motivations for drinks choice in restaurants, March 2011
APPENDIX – DRINKS MENU ENTICEMENTS
Figure 69: Drinks menu enticements, March 2011
Figure 70: Most popular drinks menu enticements, by detailed demographics, March 2011
Figure 71: Next most popular drinks menu enticements, by detailed demographics, March 2011
Figure 72: Drinks menu enticements, by frequency of drinking alcohol, March 2011
Figure 73: Drinks menu enticements, by changes to drinking habits, March 2011
Figure 74: Most popular restaurant drinking habits, by drinks menu enticements, March 2011
Figure 75: Next most popular restaurant drinking habits, by drinks menu enticements, March 2011
Figure 76: Other popular restaurant drinking habits, by drinks menu enticements, March 2011
Figure 77: Most popular agreement with attitudes towards drinking in restaurants, by drinks menu enticements, March 2011
Figure 78: Next most popular agreement with attitudes towards drinking in restaurants, by drinks menu enticements, March 2011
Figure 79: Most popular drinks menu enticements, by drinks menu enticements, March 2011
Figure 80: Next most popular drinks menu enticements, by drinks menu enticements, March 2011
APPENDIX – ALCOHOL IN RESTAURANTS TARGETING OPPORTUNITIES
Figure 81: Alcohol in restaurants target groups, by detailed demographics, March 2011
Figure 82: Alcohol in restaurants target groups, by frequency of drinking alcohol, March 2011
Figure 83: Alcohol in restaurants target groups, by changes to drinking habits, March 2011
Figure 84: Alcohol in restaurants target groups, by restaurant drinking habits alcohol, March 2011
Figure 85: Alcohol in restaurants target groups, by motivations for drinks choice in restaurants, March 2011
Figure 86: Alcohol in restaurants target groups, by drinks menu enticements, March 2011