SLIDE 1
Where is the foodservice industry going?
- Trends and lessons
Presented by Peter Backman 5 June 2015
- The USA and Europe
- Who and what is driving the market
- London – a case in point
- Some conclusions
- Trends and lessons Presented by Peter Backman 5 June 2015 Things - - PowerPoint PPT Presentation
- Trends and lessons Presented by Peter Backman 5 June 2015 Things - - PowerPoint PPT Presentation
Where is the foodservice industry going? - Trends and lessons Presented by Peter Backman 5 June 2015 Things Ill talk about The USA and Europe Who and what is driving the market London a case in point Some
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100 200 300 400 Food and Beverage Sales: $bn US Europe
Europe and the US in 2014
Sources: Horizons Market Structure and Trends; National Restaurant association
+ +
Popular eating out Hospitality Non-commercial
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- Growth
Ho hum!
- Where is the sun shining?
Fast casual ? But …
- What do customers want?
I want what I want. Now What will you give me?
Where is the market going?
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Europe - The big numbers
773 million Popular eating out $271 bn Foodservice $375 bn
Sources: Horizons Market Structure and Trends; Eurostat; CIA
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The Potential for Europe
773 million 319 million
+
$271 billion $493 billion
+
France: $697 Moldova: £17 $310 per person $1,544 per person
Sources: Horizons Market Structure and Trends; Eurostat; CIA
+
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Market drivers
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Where the game is being played
5 Countries 41% Popular eating
- ut +
Hotels 5 Countries 77% Population 5 Countries = USA $493 bn $185 bn
Sources: Horizons Market Structure and Trends; Eurostat; CIA
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Where do consumers eat out?
$0 $20 $40 $60 $80 Top 5 Rest of Europe $ B Billio lion Restaurants Quick Service Drinking places Hotels 0% 20% 40% 60% 80% 100% Top 5 Rest of Europe Europe
Sources: Horizons Market Structure and Trends; Eurostat; CIA
- Similar patterns across Europe
- Different quantums / quanta
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T
- p 25 Full Service
UK France Germany US
… UK in Full Service US brands dominate
Where does the inspiration come from?
T
- p 25
US McDonald's UK France Other
T
- p 25 QSR
US UK France Other
…. in Quick Service
Note the “McDonald’s effect”
UK brands 60% of all European brands
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1 2 F&B Sales $ Billion Full Service QSR
19% Market share
25 Leading Brands in Europe
Sources: Horizons; Company information $22Bn $3.4Bn
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$0 $200 $400 $600 $800 F&B Sales in Europe: $Million latest year end
Top 25 Casual Dining Brands in Europe
Sources: Horizons; Company information
Top 25
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500 1,000 1,500 2,000 £ F&B Sales £ Million Other Beverage Pubs QSR Full service
Beverage not associated with food
25 Leading Groups in the UK – the action is hotting up
Includes
- Restaurants, QSR, Pubs
- UK only
- System-wide sales
- Groups sales - not individual
brands
- Beverage not associated with
food – only applies to Pubs
Tragus spins off Strada SSP IPO TGI sale
Sources: Horizons; Company information
Greene King acquires Spirit Gondola splits PE, Ask / Zizzi Jamie’s in play Tragus rebrands as Casual Dining Group Pret expands in US
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London
- An old city with the most
youthful eating out market
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London
- Largest city in Europe
- GDP $600 billion
- 8.6 million people
- 4,700 people/km2
- 7th largest country in the EU
- 5th largest city in the world
- Still growing
0% 5% 10% 15% 20% 0-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 >81
Age profile – London ndon vs UK
UK London .
More of this
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An international city
- 16.8 million international visitors in 2013
- 26 nationalities - with >20,000 people
- Poles 110,000; French 69,000; Americans 43,000
- 192 foreign banks
- 300+ languages
English French Spanish Italian Arabic Hindi Urdu Chinese Turkish Nigerian Punjabi Persian Pushto Dutch Danish Norwegian German
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Culture
- 300 museums, art galleries
- 41 West End theatres
- 10 concert halls
- London Fashion Week
- Notting Hill Carnival
- Design
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Travel
- Underground
- 12 lines
- 402 kms
- 1.1 billion travellers pa
- Crossrail
- 5 international airports
- Buses
- 1.2 billion travellers pa
- Trams, Rickshaws, Black cabs, Mini-cabs
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Modern iconic buildings
- Shard
- Gherkin
- London Eye
- Walkie Talkie
- Canary Wharf
- Heron Tower
- Cheesegrater
- 02
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Sport
- 6 Premiership teams
- 2 world class cricket grounds
- Rugby
- O2
- Wembley
- Olympics
- Wimbledon
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F&B Sales 2013
Restaurants QSR Pubs Hotels
Eating out in London
- Eating Out in London:
$18.2 billion
- 34% of total UK eating out
- 13% of UK population
- Grown by 10% since 2007
Source: Horizons
$0 $2 $4 $6 $ Billion
F&B Sales 2007-2013
2007 2013
Spend
- Average:
£10.75 ($16)
- QSR:
£6.80 ($10)
- Hotels:
£23.33 ($35)
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Distinct markets
- Type of consumer/shopper
- Male/Female
- Age 0-100
- Activity
- Office worker
- Shopper
- Tourist
- Niche - theatre-goer, stag
parties …
- Need state
- Convenience
- Destination
- Hunger
- Day part
- Breakfast
- Lunch
- Dinner
- Spend
- Average: £10.75 ($16)
- QSR
£6.80 ($10)
- Hotels £23.33 ($35)
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What’s happening?
- Competitive pricing
- Vouchers – dying out
- Meal deals - tactical
- Secret menus
- Convergence – Pret < > Starbucks
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Day parts – the growth of Breakfast
Day part vs All-day
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Marketing
… and
- Guerrilla marketing
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A landing place for brands from other countries
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New venues
- Pop Ups
- Street food
- Food trucks
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The Trendsetters Ones to Watch + Bubbling Under = 369 brands 1,856 outlets – 82% in London
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The trends
T
- p 5 Trends
Store numbers – change in 2014
1. Healthy Quick Service +107 2. Italian Casual +91 3. Mexican Burrito Fast Casual +78 4. Artisan Bakery +74 5. Sandwich bars +74
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Lessons to learn
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- Countries
- Where there are young people
- Where the economy is growing
- Where there is a culture of innovation
- Sectors
- Value
- Excitement
- Fit with changing lifestyles
- Companies
- Match the above
Where is the dynamism?
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The Space Race - Trains, Planes and Automobiles
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Sweating the assets - in space and time
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Retail and Foodservice - blurring and evolving
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Service and Technology come together
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Global flavours for cosmopolitan consumers
South American Mediterranean / Middle Eastern Pan Asian US-inspired food
- Hot dogs
- ‘New breed’
burgers
- Salted caramel
- Flavoured slaw
- Loaded
mac’n’cheese
- Flat iron steak
- Katsu curry
- Korean flavours
- Wasabi
- Teriyaki
- Halloumi
- Dukkah
- Mezze
- Burritos
- Tacos
- Chimichurri
- Chillis
“Authentic Ethnic” How far will this go? Fusion, Local, Sustainable and more
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