Ethnic Restaurants and Takeaways - UK - February 2015

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: UK ethnic restaurant and takeaway market, market size and forecast, 2009-19
Market factors
Supermarket offerings become increasingly sophisticated
Falling price of crude oil should benefit the sector
Fewer Brits spending extra money on dining out
Companies, brands and innovation
Figure 2: Selected ethnic restaurant/takeaway chains, by number of outlets, 2010-15
Wide-ranging innovation
The consumer
Ethnic restaurants/takeaways remain a rare treat
Figure 3: Frequency of visiting an ethnic restaurant/ordering an ethnic takeaway/home delivery, 2012 and 2014
Chinese is most popular ethnic restaurant/takeaway option
Figure 4: Use of and interest in ethnic restaurants/takeaways, December 2014
Less than one in seven see ethnic restaurants as unhealthy
Authenticity is important to diners in ethnic food
Food from ethnic takeaways seen as less authentic than food eaten in ethnic restaurants
Figure 5: Qualities associated with ethnic food, by channel, December 2014
What we think
ISSUES AND INSIGHTS
Ethnic restaurants and takeaways suffer from a poor value-for-money image
The facts
The implications
Growth of online ordering services means takeaway market is better placed for growth than the eat-in sector
The facts
The implications
Various operators look to expand on national scale
The facts
The implications
TREND APPLICATION
Mintel Trend: Experience Is All
Mintel Trend: Fauxthenticity
Mintel Trend: Guiding Choice
MARKET DRIVERS
Key points
Supermarkets continue to improve their ethnic food offerings
Ready meals
Cooking sauces and seasonings
African food gains visibility at retail
Fewer consumers spending extra money on dining out
Figure 6: Trends in share of consumers who choose to spend their extra money (after bills are paid and they’ve bought all the things they really need) on dining out, November 2009-January 2015
Fewer Brits enjoy spicy food
Figure 7: Agreement with the statement ‘I enjoy spicy food’, March 2012-December 2014
Country-specific events in 2015/16 should boost individual cuisines
Mexican cuisine to gain visibility in UK in 2015
Rio 2016 Olympic Games will provide a focus for South American restaurants
New allergen regulations place a burden on smaller operators
Indian cuisine drives increase in purchase of ethnic food out of home
Figure 8: Indian, Chinese and Thai food – average grams purchased per person per week, out of home in the UK, 2001/02-2013
Falling price of petrol should take pressure off margins
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Cookery schools offer a useful bolt-on
Wahaca taps into half term with free kids’ workshops
Itsu looks for buy-in from diners through crowdsourcing
Ethnic restaurants continue to build a presence in the retail channel
Japanese/Peruvian: The new fusion?
Packaging can provide a point of difference for takeaway/home delivery
Figure 9: The Grand Thali delivery box from The Chilli Pickle Canteen, Brighton
Sushi looks to character merchandising to woo families
SEGMENT PERFORMANCE, MARKET SIZE AND FORECAST
Key points
Improving economy should benefit ethnic restaurants/takeaways
Figure 10: UK ethnic restaurants and takeaways, market size and forecast, 2009-19
Ethnic restaurants
Figure 11: UK ethnic restaurant market, market size and forecast, 2009-19
Figure 12: UK ethnic restaurant market, market size and forecast, 2009-19
Ethnic takeaways
Figure 13: UK ethnic takeaway market, market size and forecast, 2009-19
Figure 14: UK ethnic takeaway market, market size and forecast, 2009-19
Forecast – total market
Figure 15: UK ethnic restaurant and takeaway market, market size and forecast, 2009-19
Nationwide expansion of large chains should benefit the market
Sector still faces challenges
Forecast methodology
COMPANIES AND PRODUCTS
 ONLINE ORDERING SERVICES
Deliveroo
Just Eat
 INDIAN
Sector overview
Figure 16: Selected Indian restaurant/takeaway chains, by UK outlet numbers, 2010-12 and 2015
Ashoka (Harlequin Leisure Group)
Aagrah Group
Masala Zone
Rasa
 JAPANESE
Sector overview
Figure 17: Selected Japanese restaurant/takeaway chains, by outlet numbers, 2010-12 and 2015
Itsu
Figure 18: Itsu Limited, financial performance, 2009-13
Wasabi
Figure 19: Wasabi Co Limited, financial performance, 2010-13
YO! Sushi
Figure 20: YO! Sushi UK Limited, financial performance, 2009-13
 CHINESE
Sector overview
Figure 21: Selected Chinese restaurant/takeaway chains, by outlet numbers, 2010-12 and 2015
Hotcha
Ping Pong
Figure 22: Ping Pong Limited, financial performance, 2010-14
Real China
 OTHER ASIAN
Sector overview
Figure 23: Selected other Asian restaurant/takeaway chains, by outlet numbers, 2010-12 and 2015
Pho
Wagamama
Figure 24: Wagamama Limited, financial performance, 2010-14
 SOUTH AMERICAN, MEXICAN AND CARIBBEAN
Sector overview
Figure 25: Selected South American/Mexican/Caribbean restaurant and takeaway chains, by outlet numbers, 2010-12 and 2015
Chiquito
Figure 26: Financial performance of Chiquito Limited, 2010-13
Las Iguanas
Figure 27: Financial performance of Las Iguanas Limited, 2010-14
BRAND COMMUNICATION AND PROMOTION
Key points
Wagamama adspend rockets in 2014 with radio and in-store campaigns
Figure 28: Above-the-line expenditure of selected operators in the ethnic restaurant and takeaway market, by 2014 expenditure, 2010-14
Radio and press are favoured forms of media for ethnic restaurants
Figure 29: Above-the-line expenditure of selected operators in the ethnic restaurant and takeaway market, by media type, 2014
YO! Sushi targets tech-savvy under-35s with TV advert
Aagrah launches first TV advert
YO! Sushi in movie tie-up with Disney’s Big Hero 6
Brands encourage photo sharing through social media channels
THE CONSUMER – FREQUENCY OF VISITING ETHNIC RESTAURANTS/TAKEAWAYS
Key points
Four in five consumers eat at ethnic restaurants
Figure 30: Frequency of visiting an ethnic restaurant/ordering an ethnic takeaway/home delivery, 2012 and 2014
Ethnic takeaways are eaten more frequently than restaurant meals
In-venue experiences could encourage restaurant dining
Younger consumers more likely to use ethnic restaurants
Consumers use ethnic restaurants less often than in 2012
THE CONSUMER – USAGE OF AND INTEREST IN ETHNIC RESTAURANTS/TAKEAWAYS BY CUISINE
Key points
Chinese is most popular ethnic restaurant/takeaway option
Figure 31: Use of and interest in ethnic restaurants/takeaways, by cuisine, December 2014
Men’s and women’s preferences for Chinese restaurants differ
Caribbean and Malaysian restaurants garner greatest interest in trial
Caribbean
Malaysian
C2DEs and lower earners less open to trying new ethnic restaurants
New restaurant openings should boost Korean cuisine in 2015
THE CONSUMER – QUALITIES ASSOCIATED WITH SELECTED ETHNIC CUISINES
Key points
Less than one in seven diners see any cuisine as unhealthy
Figure 32: Qualities associated with selected types of ethnic restaurant/takeaway, December 2014
One in five see Indian and Mexican food as too spicy
Laying out menus according to heat level would showcase the range available
Only one in four (25%) see any ethnic cuisine as special
Just one in 10 see Middle Eastern food as fun
Caribbean and Middle Eastern cuisine seen most widely as hard to find
Marked difference in value-for-money perception between selected cuisines
THE CONSUMER – ATTITUDES TOWARDS ETHNIC RESTAURANTS/TAKEAWAYS
Key points
Authenticity matters to diners
Figure 33: Attitudes towards ethnic restaurants/takeaways, December 2014
Transparency should help to promote authenticity
Open kitchens garner interest amongst two in five
‘At table’ preparation offers an alternative to open kitchens
One in three interested in multi-cuisine restaurants
Collaboration could benefit single-cuisine operators
Menus tailored to special religious/cultural events appeal to one in five
Wide variety of events exist for restaurants to base special menus around
One in five interested in buying ethnic food from a mobile van
THE CONSUMER – QUALITIES ASSOCIATED WITH ETHNIC FOOD BY CHANNEL
Key points
Food from ethnic takeaways seen as less authentic than from restaurants
Figure 34: Qualities associated with ethnic food, by channel, December 2014
Eat-in ethnic restaurants face poor value-for-money perception
Adding value should help improve the value-for-money perception
Just one in seven see takeaway food as exciting
Less than a third see eat-in ethnic cuisine as fresh
APPENDIX – MARKET DRIVERS
Fewer people replacing restaurant dining with indulgent food at home
Figure 35: Grocery shopping habits: Agreement with the statement ‘I treat myself to indulgent food at home instead of eating out at restaurants’, December 2013-December 2014
APPENDIX – SEGMENT PERFORMANCE, MARKET SIZE AND FORECAST
Ethnic restaurants and takeaways
Figure 36: Best- and worst-case forecast for the UK ethnic restaurant/takeaway market, by value, 2014-19
Ethnic restaurants
Figure 37: Best- and worst-case forecast for the UK ethnic restaurant market, by value, 2014-19
Ethnic takeaways
Figure 38: Best- and worst-case forecast for the UK ethnic takeaway market, by value, 2014-19
APPENDIX – THE CONSUMER – FREQUENCY OF VISITING ETHNIC RESTAURANTS/TAKEAWAYS
Figure 39: Use of and interest in ethnic restaurants/takeaways, November 2012
APPENDIX – THE CONSUMER – USAGE OF AND INTEREST IN ETHNIC RESTAURANTS/TAKEAWAYS BY CUISINE
Figure 40: Top 10 countries of last residence of migrants who are not British citizens, 2013*