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Fast Casual Restaurants - UK - August 2011

INTRODUCTION
Definition
Limited-service restaurant (LSR)
Buffet/carvery
Cafeteria/canteen
Food court
Fast food/Quick Service Restaurants (QSR)
Fast casual dining (FCD)
Casual dining
Full-service restaurant
Fine/upscale/gourmet dining
Abbreviations
EXECUTIVE SUMMARY
The market
Market factors
Ongoing demand remains for convenience
Consumer trends
Figure 1: Trends in the impact of the economic downturn on consumers, January 2009-July 2011
Figure 2: Consumer spending priorities, November 2009-July 2011
Companies, brands and innovation
The consumer
Table service is the most popular restaurant concept
Six in ten still see table service as an important part of the experience
Figure 3: Attitudes towards restaurant service formats, May 2011
Strong potential for Vietnamese, Caribbean and North African food
Figure 4: Interest in global street food, May 2011
What we think
ISSUES IN THE MARKET
What role does fast casual dining play in the overall eating out market
How can menu innovation drive sales in the fast casual market?
What factors can the fast casual sector leverage to support growth as consumers remain cautious?
How can the fast casual sector appeal to the slowly growing family market?
FUTURE OPPORTUNITIES
The Real Thing
FSTR & HYPR
INTERNAL MARKET ENVIRONMENT
Key points
The recession hastened the pace of life
Figure 5: Trends in agreement with lifestyle statements relating to the pace of lifestyles and convenience, 2006-10
Over half of consumers will switch shops if it proves quicker/more convenient
Figure 6: Trends in agreement with selected lifestyle statements, 2006-10
Poor perceptions of fast food linger among a minority
Figure 7: Trends in agreement with the statement ‘Fast food is all junk’, 2006-10
The economic climate has put pressure on the lunch occasion
Figure 8: Eating habit trends relating to homemade sandwiches and bread, June 2009-July 2011
Seasonal menus can cut costs and boost engagement
BROADER MARKET ENVIRONMENT
Key points
Recovery worse than recession for some consumers...
Figure 9: Trends in the impact of the economic downturn on consumers, January 2009-July 2011
...but consumers continue to prioritise ‘experiences’ such as going out and dining out
Figure 10: Consumer spending priorities for extra money, November 2009-July 2011
Eating out is becoming increasingly casual in formats…
…and in menus
Ageing of the population poses a challenge for fast casual formats
Figure 11: Trends in the age structure of the UK population, 2006-16
Figure 12: Forecast adult population trends, by lifestage, 2006-16
COMPETITIVE CONTEXT
Key points
Fast food venues
Limited-service restaurants
In-home options
Figure 13: Trends in buying premium foods instead of eating out, January 2009-July 2011
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key point
Actively chasing footfall
Lifestyle brands
Store redesigns
Snack ranges
COMPANIES AND PRODUCTS
Key points
Overview
Figure 14: Selected fast casual restaurant chains, by outlet number, July 2011
Chilango
Gourmet Burger Kitchen (GBK)
Figure 15: Key financials for Gourmet Burger Kitchen, 2009 and 2010
Leon
Figure 16: Key financials for Leon UK, 2008 and 2009
Nando’s
Figure 17: Key financials for Nando's Chickenland Limited, 2009 and 2010
Pho
Tampopo
Wagamama
Figure 18: Key financials for Wagamama Limited, 2009 and 2010
YO! Sushi
Me Love Sushi
Other
Brand communication and promotion
EATING OUT VENUES VISITED BY TYPE OF SERVICE
Key points
Table service continues to dominate in the eat in restaurant market
Figure 19: Eating out venues visited, by type of service, May 2011
FREQUENCY OF VISITING RESTAURANTS, BY TYPE OF SERVICE
Key points
Limited-service venues are visited more frequently
Figure 20: Frequency of visiting restaurants, by type of service, May 2011
ATTITUDES TOWARDS RESTAURANT BY SERVICE FORMATS
Key points
Traditional versus forward-thinking
Figure 21: Attitudes towards restaurant service formats, May 2011
Parents look for easy eating
Technology can cater for speed and transparency
Service still plays a key role in customer satisfaction
Paying when you order raises the question as to what diners do if they aren’t happy with the food they receive?
CONSUMER INTEREST IN GLOBAL STREET FOOD
Key point
Over half of diners would like to try Vietnamese street food
Figure 22: Interest in global street food, May 2011
Mexican has made its mark
Sushi leaves one in three consumers cold
Vietnamese holds strong potential
Youngsters yearn for Caribbean
FAST CASUAL RESTAURANTS TARGETING OPPORTUNITIES
Key points
Fast casual restaurants target groups
Figure 23: Fast casual restaurants target groups, May 2011
Fledglings (26% of diners)
Silver Service-ers (34% of diners)
Fuss Free (41% of diners)
APPENDIX – INTERNAL MARKET ENVIRONMENT
Figure 24: Agreement with selected lifestyle statements, by detailed demographics, 2010
APPENDIX – EATING OUT VENUES VISITED BY TYPE OF SERVICE
Figure 25: Eating out venues visited, by type of service, by detailed demographics, May 2011
Figure 26: Eating out venues visited, by type of service, by venues visited, May 2011
APPENDIX – FREQUENCY OF TYPES OF SERVICE USED
Figure 27: Frequency of using table-service restaurants, by detailed demographics, May 2011
Figure 28: Frequency of using counter-service restaurants, by detailed demographics, May 2011
Figure 29: Frequency of using mixed-service restaurants, by detailed demographics, May 2011
Figure 30: Frequency of using self-service restaurants, by detailed demographics, May 2011
Figure 31: Frequency of using takeaway/home delivery, by detailed demographics, May 2011
APPENDIX – ATTITUDES TOWARDS RESTAURANT SERVICE FORMATS
Figure 38: Attitudes towards restaurant service formats, May 2011
Figure 32: Agreement with the statements ‘Table service is an important part of the experience’ and ‘I don’t like waiting to pay the bill’, by detailed demographics, May 2011
Figure 33: Agreement with the statements ‘I just like to order my food with the minimum of fuss’ and ‘I prefer to order at the counter but have my food delivered to the table’, by detailed demographics, May 2011
Figure 34: Agreements with the statements ‘I’m more concerned with the food than the service’ and ‘The food at self-service bars (eg in-store café, carvery) is usually poor’, by detailed demographics, May 2011
Figure 35: Agreement with the statements ‘Type of service (eg table service, counter service) doesn’t affect what restaurants I go to’ and ‘Speed of service is more important to me than type of service (eg table service, counter service)’, by detailed demographics, May 2011
Figure 36: Agreement with the statements ‘I have stopped going to some restaurants because of the poor service I received’ and ‘I have recommended restaurants to friends/family because of good service’, by detailed demographics, May 2011
Figure 37: Agreement with the statements ‘I’m generally satisfied with the standard of service I receive at restaurants these days’ and ‘I just like to order my food with the minimum of fuss’, by detailed demographics, May 2011
Figure 39: Attitudes towards restaurant service formats, by types of service at eating out venues visited, May 2011
APPENDIX – INTEREST IN GLOBAL STREET FOOD
Figure 40: Interest in Vietnamese street food, by detailed demographics, May 2011
Figure 41: Interest in North African (eg Moroccan) street food, by detailed demographics, May 2011
Figure 42: Interest in Japanese/sushi street food, by detailed demographics, May 2011
Figure 43: Interest in Caribbean street food, by detailed demographics, May 2011
Figure 44: Interest in Eastern European (eg Polish sausage) street food, by detailed demographics, May 2011
Figure 45: Interest in Mexican street food, by detailed demographics, May 2011
APPENDIX – FAST CASUAL RESTAURANTS TARGETING OPPORTUNITIES
Figure 46: Fast casual restaurants target groups, by detailed demographics, May 2011
Figure 47: Attitudes towards restaurant service formats, by target groups, May 2011
Figure 48: Types of service at eating out venues visited, by target groups, May 2011
Figure 49: Frequency of table service used, by target groups, May 2011
Figure 50: Frequency of counter service used, by target groups, May 2011
Figure 51: Frequency of mixed service used, by target groups, May 2011
Figure 52: Frequency of self-service used, by target groups, May 2011
Figure 53: Frequency of takeaway/home delivery used, by target groups, May 2011
Figure 54: Interest in global street food, by target groups, May 2011

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