Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Consumer foodservice by chained/independent; Consumer foodservice by type;
Consumer foodservice by type and chained/independent
Executive summary
Smoking ban pushes up value sales and transactions
Value sales and transactions both posted encouraging growth in 2006, despite
the fact that outlet numbers did not change markedly from the previous year.
The smoking ban pushed the pub estates into expanding their food offerings to
pick up the slack from declining alcohol sales in their existing pubs, which
kept outlet growth down but pushed value sales and transaction numbers up as
more people bought pub food on more occasions and pubs expanded their menus
with premium offerings.
World Cup provides a welcome fillip for pubs and bars
The 2006 football World Cup in Germany boosted many consumer foodservice
sectors and in particular helped other cafés/bars stem losses. The tournament
- alongside better outdoor facilities, food and the hot weather - attracted
millions to the country' s pubs as football fever gripped the nation.
Private equity hits the high street
Private equity money is changing and reshaping the competitive landscape of
consumer foodservice. Large restaurant groups such as Tragus Holdings Ltd are
being formed on the back of private equity cash funding aggressive expansion
and takeovers. Conversely, some restaurant groups such as Whitbread Plc are
being stripped down into their constituent parts while private equity
companies pick at the carcass.
Independents suffer as chained operators flex their muscles
The majority of sectors within consumer foodservice witnessed a shift towards
chained operators in 2006, at the expense of independents. This can largely be
explained by the lack of capital, low-skilled and low-paid staff, poor brand
strength, limited marketing ability and financial backing associated with the
latter. Rising rental and property costs as well as proportionally bigger tax
and utility burdens are also forcing many independents out and creating
barriers to entry for prospective businesses.
Promising forecast prospects as value sales push ahead of transactions
Consumer foodservice in the UK is set to achieve modest growth over the
forecast period, though notably there will be a considerable slowdown in
outlet development. This is because operators' focus is expected to be on
securing transactions and consolidating position rather than expansion in unit
numbers. Despite this slowdown in outlets, transactions and value sales will
continue to grow well. The fact that value sales are set to outpace
transaction growth is evidence that premiumisation will continue to occur, as
increasingly time-poor and cash-rich customers rely upon consumer foodservice
offerings rather than eating at home.
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