What Impact has Immigration had on Eating Out? - UK - May 2008

Table of Contents

• Issues in the Market
• Main issues
• Definition
• Abbreviations
• Market in Brief
• Eating out industry faces ' triple whammy'
• ' We couldn' t do it without them' , say operators
• Migrants are hard workers, in contrast to many UK workers
• Language barrier is biggest drawback of migrants
• Ethnic restaurants particularly badly hit by new system
• Signs of slowdown in flow of Eastern Europeans into industry
  • Figure 1: Trends in number of newly registered A8 workers in the catering sector, by occupation, 2004-07
• Existing non-EU staff may have to go
• An uncertain future for employers
• Internal Market Environment
• Key points
• Trends in the number of hospitality and catering migrant workers
  • Figure 2: Nationality of WRS registered workers in the hospitality and catering sector, 2004-07
  • Figure 3: Geographical distribution of WRS registered workers in the hospitality and catering sector, 2004-07
  • Figure 4: Top sectors in which WRS registered workers are employed, 2004-07
  • Figure 5: Catering occupations in which WRS registered workers are employed, 2004-07
• Immigration points-based system to cause major headaches
• What is the points system and how does it affect the eating out industry?
• How the system works
• Attributes
• Language skills
• Maintenance
• What are the main objections to the scheme among operators?
• How important are formal qualifications?
• How vital are language skills?
• Must it be retrospectively applied to workers already in the UK?
• SBS scheme workers can stay
• What is being done to try and change the system?
• Where now?
• Language barrier low down the list of customer concerns
• Figure 6: Negative factors of customer service likely to affect restaurant visiting, January 2008
• Takeaway troubles on the horizon
  • Figure 7: Consumption of takeaway foods in the last 12 months, 2003-07
• Price rises pile pressure on restaurateurs
  • Figure 8: Trends in the cost of restaurant meals compared to all items and food prices, 2002-07
• UK' s cosmopolitan consumers
  • Figure 9: Types of restaurants visited in the last three months, 2003-07
  • Figure 10: Agreement with selected lifestyle statements, 2003-07
• The ethical consumer?
  • Figure 11: Agreement with selected lifestyle statements, 2003-07
• Broader Market Environment
• Key point
• Migration patterns
  • Figure 12: Migration patterns in the UK, 1997-2006
  • Figure 13: Migration patterns by citizenship, 2002-06
• The impact of accession on migration
  • Figure 14: Migration balance by EU nations, 2004-06
  • Figure 15: National Insurance numbers issued to non-UK nationals, by country of origin, 2005/06 and 2006/07
• PDI has driven immigration, though eating out growth
  • Figure 16: Trends in personal disposable income and consumer expenditure, 2003-13
• AB growth positive in several ways
  • Figure 17: Forecast adult population trends, by socio-economic group, 2003-13
  • Figure 18: Forecast adult population trends, by lifestage, 2001-13
• Shortage of front-of-house workers on the cards?
  • Figure 19: Trends in the age structure of the UK population, by gender, 2003-13
• Strengths and Weaknesses in the Market
• Strengths
• Widespread availability of migrant workers
• Strong work ethic of migrant workers
• Reliability and flexibility
• Fast learners
• ' Authentic' skills-base
• Weaknesses
• Over-dependence on migrant workers
• The transient nature of the job
• Points-based system could reduce potential ' talent pool' of employees
• Language barrier
• Concerned customers
• Competitive Context
• Key points
• Eating out: Britons' biggest area of leisure spend
  • Figure 20: Consumer expenditure on selected leisure goods and activities, 2003-07
• Size and growth of sector makes it attractive to migrants
• Market Size and Forecast
• Key points
  • Figure 21: The UK market for eating out*, 2003-13
• Segment Performance
• Key points
  • Figure 22: The UK market for eating out, * by sector, 2003-07
• Fast food, pubs ideal for migrants due to plethora of low grade positions
• Stagnating ethnic sector
• How Important are Migrant Workers to the Eating Out Industry?
• An industry heavily dependent on migrant workers...
• ...and increasingly so
• Migrant workers drive industry' s recent growth...
• ...continuing a trend of many years
• Why the boom in the proportion of migrant workers?
• Are there areas where there are more migrant workers than average?
• What are the Advantages of Employing Migrant Workers?
• A blank canvas
• The work ethic
• Needs must
• Promotion potential?
• What are the Disadvantages of Employing Migrant Workers?
• Poor language skills
• How poor language skills have manifested themselves
• Strategies for countering problems with language
• The multi-national, multi-ethnic melting pot
• The transient nature of the job
• How is the Points-Based System Impacting on the Industry?
• A8 boom may have given false picture
• Market dynamics quite different from Australia
• More misery for operators?
• Ethnic sector to be particularly badly hit
• Lower-grade kitchen staff biggest area of concern for ethnic restaurants
• Other restaurants employing non-EU staff also face problems
• Training provision in the UK: overlooked?
• What do People Really Think About Immigration?
• Key points
  • Figure 23: Agreement with statements about immigration, March 2008
• Strong feelings and contradictory opinions about immigration
• Commitment most important to younger people
• Multi-cultural Britain: a generational thing
• Worries about immigration peak among older people
• Too many immigrants also concern for older people
• Discomfort with large immigrant communities also an age/class thing
• Younger people least likely to think about immigration
• Clear correlation between tolerance and concerns about immigration
  • Figure 24: A greement with statements about immigration, by agreement with statements about immigration, March 2008
• Average age
  • Figure 25: Average age of respondents, by agreement with statements on immigration, March 2008
• Appendix: What do People Really Think About Immigration?
• Agreement with ' I worry about the level of immigration in the UK' , by detailed demographics
  • Figure 26: Agreement with "I worry about the level of immigration in the UK", by detailed demographics, March 2008
• Agreement with ' It' s nothing to do with me, I don' t think about it' , by detailed demographics
  • Figure 27: Agreement with "It' s nothing to do with me, I don' t think about it", by detailed demographics, March 2008
• Agreement with ' It is a good thing that Britain is such a multicultural society' , by detailed demographics
  • Figure 28: Agreement with "It is a good thing that Britain is such a multicultural society", by detailed demographics, March 2008
• Agreement with ' As long as people are committed to the UK it doesn' t matter what ethnic/national background they are from' , by detailed demographics
  • Figure 29: Agreement with "As long as people are committed to the UK it doesn' t matter what ethnic/national background they are from", by detailed demographics, March 2008
• Agreement with ' I don' t feel comfortable in areas with large immigrant communities' , by detailed demographics
  • Figure 30: Agreement with "I don' t feel comfortable in areas with large immigrant communities", by detailed demographics, March 2008
• Agreement with ' There are too many immigrants in this country already' , by detailed demographics
  • Figure 31: Agreement with "There are too many immigrants in this country already", by detailed demographics, March 2008