Chain Versus Independent Venues - UK - September 2009

Table of Contents

• Issues in the Market
• Main issues
• Definition
• Abbreviations
• Market in Brief
• Recession bites...
• ...but spares some
• The lure of the local...
• Future forward
• Split support
• Masters of their own destiny...
• ...versus the power of the brand and security
• Other factors hinder
• Internal Market Environment
• Key points
• Bingo operators deal with new regulation...
• ...and tax hikes
• The smoking ban
• Minimum wage increases
• Power to the workers
• Utilities continue to soar
• Cinema -- the digital age
• Cinema holds its own
  • Figure 1: Frequency of cinema going, 2004-08
• Coffee light
  • Figure 2: Frequency of visiting coffee shops, 2007-08
• High class coffee
• A retiring sit in
• Bingo on the slide
  • Figure 3: Participation in bingo (admission charged), 2004-08
• Bingo -- a female pursuit
• Pub visiting in decline
  • Figure 4: Pub/bar visiting for a drink or a meal in the last 12 months, 2004-08
• Men prefer a drink whilst women opt for a meal
• Daytime drinking -- a class divide
• The social element
• Offering meals during the day attracts a wider demographic
• Premium pub meals
• Let' s eat out!
  • Figure 5: Restaurant visiting in the last 12 months, 2004-08
• Affluent diners
• Visiting less often
  • Figure 6: Frequency of restaurant visiting in the last 12 months, 2004-08
• The time and money
• Healthy clubs
  • Figure 7: Leisure centre, gym or health club visiting in the last 12 months, 2006-08
• Young and single key users
• Broader Market Environment
• Key points
• Keeping an eye on spend
  • Figure 8: GDP, PDI, consumer expenditure and savings, at constant 2004 prices, 2004-14
• Rising unemployment
  • Figure 9: UK unemployment rates (seasonally adjusted), 2004-08
• Independents boosted by growth in ABs
  • Figure 10: Forecast adult population trends, by socio-economic group, 2004-14
• Growth in golden oldies benefits independents
  • Figure 11: Trends in the age structure of the UK population, by gender, 2004-14
• Feeling the pinch
  • Figure 12: Spending intentions towards the leisure activities in coming year, July 2009
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Overview and Forecast
• Key points
• Coffee shops sales slow
  • Figure 13: Market size and forecast of coffee shops, at current and 2008 prices, 2003-13
• Is the pub still the place?
  • Figure 14: Total pub market, 2003-13
• Independent advantage
  • Figure 15: UK independent pub market, outlets and turnover, 2004-14
• Restaurant market continues to grow but at a slower rate
  • Figure 16: UK restaurants, by value and number of outlets, 2004-13
• Bingo revenues on the slide
  • Figure 17: Bingo club turnover*, 2004-14
• Health and fitness clubs: Exclusivity vs expenditure
  • Figure 18: Membership numbers and revenue of UK health and fitness clubs, 2002-12
• Cinemas stand strong
  • Figure 19: UK cinema market, by admission and value*, 2003-13
• Case Studies
• Key points
• Chain venues
• Costa Ltd
  • Figure 20: Costa Ltd, key financials, 2007-08
• Odeon
• PizzaExpress
• Independent venues
• Nonna' s
• Orion Cinema
• Red Roaster
• Trade Perspective -- Pros and Cons of Being a Chain/Independent Venue
• Key points
• What about red tape/bureaucracy?
• Freedom
• Security
• Job satisfaction
• Competition
• Staffing
• Losing touch
• Brand power
• Trade Perspective -- Key Characteristics of Being a Chain/Independent
• Key points
• What separates a chain from an independent venue (and vice versa)?
• What do you think people want when they come to you?
• What can a chain provide that an independent can' t (and vice versa)?
• Trade Perspective -- The Recession
• Key points
• How would you rate your performance in the current economic climate?
• Since the recession began, have you changed your fundamental proposition to cater for the downturn in trade?
• Trade Perspective -- Competition
• Key points
• Do you view yourselves as competing directly with chain/independent venues?
• Why do you think people choose you over a competitor?
• Do you have your own area of specialisation that sets you apart from your competitors?
• Trade Perspective -- Customer Perceptions
• Key points
• Do you think customers value the security of the brand over a more personal approach?
• What about familiarity over authenticity?
• Other issues
• Brand power
• A focus on quality
• Consumer Leisure Activities
• Key points
  • Figure 21: Frequency of leisure activities, July 2009
• Leisure loving cinema goers
  • Figure 22: Most popular regular activities at leisure time, by regular activities at leisure time, July 2009
• A pint and the match
  • Figure 23: Next most popular regular activities at leisure time, by other regular leisure activities, July 2009
• Location is where it' s at
  • Figure 24: Factors influencing the choice of leisure venues visited regularly or occasionally, July 2009
• Factors Influencing Consumer Choice
• Key points
  • Figure 25: Statements on choosing a leisure venue to visit, July 2009
• Good service does it for women
• Young guns stick to what they know...
• ...whilst the wealthy are more adventurous
• Recession bites
• Wealthy shun the corporate profile...
• ...whilst families go green
• Advertising and endorsements lure the young
• Service sells
  • Figure 26: Most popular statements on choosing a leisure venue to visit, by regular leisure activities, July 2009
• Club service
  • Figure 27: Next most popular statements on choosing a leisure venue to visit, by regular leisure activities, July 2009
• Bingo players buck the trend
  • Figure 28: Other statements on choosing a leisure venue to visit, by regular leisure activities, July 2009
• Choosing Between Chains and Independents
• Key points
  • Figure 29: Statements on choosing an independent leisure venue or a well-known national or multi-national brand, July 2009
• Feel good factor drives consumers to go local
• Demand for quality continues
• Chains considered impersonal and uncaring...
• ...and apathy strikes
• Demographic divide
• Independent venues score well with those dining out
  • Figure 30: Most popular statements on choosing an independent leisure venue or a well-known national or multi-national brand, by regular leisure activities, July 2009
• Health and fitness favour the chains
  • Figure 31: Next most popular statements on choosing an independent leisure venue or a well-known national or multi-national brand, by regular leisure activities, July 2009
• Price led bingo
  • Figure 32: Other statements on choosing an independent leisure venue or a well-known national or multi-national brand, by regular leisure activities, July 2009
• Appendix -- Internal Market Environment
  • Figure 36: Frequency of visiting coffee shops at all, by demographic sub-group, 2008
  • Figure 37: Frequency of visiting coffee shops (sit in only), by demographic sub-group, 2008
  • Figure 38: Frequency of visiting coffee shops (takeaway only), by demographic sub-group, 2008
  • Figure 39: Participation in bingo, by demographic sub-group, 2008
  • Figure 40: Pub/bar visiting for a drink or a meal in the last 12 months, by demographic sub-group, 2004-08
  • Figure 41: Frequency of visiting pubs/bars for a drink only in the daytime, by demographic sub-group, 2004-08
  • Figure 42: Frequency of visiting pubs/bars for a drink only in the evening, by demographic sub-group, 2004-08
  • Figure 43: Frequency of visiting pubs/bars for a meal only in the daytime, by demographic sub-group, 2004-08
  • Figure 44: Frequency of visiting pubs/bars for a meal only in the evening, by demographic sub-group, 2004-08
  • Figure 45: Restaurant visiting in the last 12 months, by demographic sub-group, 2004-08
  • Figure 46: Frequency of restaurant visiting in the last 12 months, by demographic sub-group, 2004-08
  • Figure 47: Leisure centre, gym or health club visiting in the last 12 months, by demographic sub-group, 2008
• Appendix -- Consumer Leisure Activities
  • Figure 48: Most popular frequency of activities at leisure time (regularly), by demographic sub-group, July 2009
  • Figure 49: Next most popuular frequency of activities at leisure time (regularly), by demographic sub-group, July 2009
  • Figure 50: Other frequency of activities at leisure time (regularly), by demographic sub-group, July 2009
  • Figure 51: Most popular frequency of activities at leisure time (occasionally), by demographic sub-group, July 2009
  • Figure 52: Next most popular frequency of activities at leisure time (occasionally), by demographic sub-group, July 2009
  • Figure 53: Other frequency of activities at leisure time (occasionally), by demographic sub-group, July 2009
  • Figure 54: Most popular frequency of activities at leisure time (not in last year), by demographic sub-group, July 2009
  • Figure 55: Next most popular frequency of activities at leisure time (not in last year), by demographic sub-group, July 2009
  • Figure 56: Other frequency of activities at leisure time (not in last year), by demographic sub-group, July 2009
  • Figure 57: Most popular frequency of activities at leisure time (never), by demographic sub-group, July 2009
  • Figure 58: Next most popular frequency of activities at leisure time (never), by demographic sub-group, July 2009
  • Figure 59: Other frequency of activities at leisure time (never), by demographic sub-group, July 2009
• Appendix -- Factors Influencing Consumer Choice
  • Figure 60: Most popular statements on choosing a leisure venue to visit, by demographic sub-group, July 2009
  • Figure 61: Next most popular statements on choosing a leisure venue to visit, by demographic sub-group, July 2009
  • Figure 62: Most popular statements on choosing a leisure venue to visit, by occasional activities at leisure time, July 2009
  • Figure 63: Next most popular statements on choosing a leisure venue to visit, by occasional activities at leisure time, July 2009
  • Figure 64: Other statements on choosing a leisure venue to visit, by occasional activities at leisure time, July 2009
  • Figure 65: Most popular statements on choosing a leisure venue to visit, by activities at leisure time -- not in last year, July 2009
  • Figure 66: Next most popular statements on choosing a leisure venue to visit, by activities at leisure time -- not in last year, July 2009
  • Figure 67: Other statements on choosing a leisure venue to visit, by activities at leisure time -- not in last year, July 2009
  • Figure 68: Most popular statements on choosing an independent leisure venue or a well-known national or multi-national brand, by demographic sub-group, July 2009
  • Figure 69: Next most popular statements on choosing an independent leisure venue or a well-known national or multi-national brand, by demographic sub-group, July 2009
  • Figure 70: Most popular statements on choosing an independent leisure venue or a well-known national or multi-national brand, by occasional activities at leisure time, July 2009
  • Figure 71: Next most popular statements on choosing an independent leisure venue or a well-known national or multi-national brand, by occasional activities at leisure time, July 2009
  • Figure 72: Other statements on choosing an independent leisure venue or a well-known national or multi-national brand, by occasional activities at leisure time, July 2009
  • Figure 73: Most popular statements on choosing an independent leisure venue or a well-known national or multi-national brand, by frequency of activities at leisure time -- not in last year, July 2009
  • Figure 74: Next most popular statements on choosing an independent leisure venue or a well-known national or multi-national brand, by frequency of activities at leisure time -- not in last year, July 2009
  • Figure 75: Other statements on choosing an independent leisure venue or a well-known national or multi-national brand, by frequency of activities at leisure time -- not in last year, July 2009