The state of eating-out Peter Martin, Peach Factory.
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Transcript of The state of eating-out Peter Martin, Peach Factory.
The state of eating-out
Peter Martin, Peach Factory
Reaction to recession
People aren’t staying at home Search for affordable luxuries Declining trends
‘Experience seeking’ ‘Green / ethical consumerism’
Growing trends ‘Demand for simplicity’ ‘Discretionary thrift’ ‘Mercurial consumption’
Source: ‘The post-recession consumer’, P Flatters & M Willmott, Harvard Business Review, July-August 2009
Record year at the movies
£1bn sales in UK in 2009
Top pub and restaurant chains ahead too
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
May Jun Jul AugSep OctNovDec JanFeb Mar
LFLTotal sales
Six months Easter to Xmas in positive territory
Data from Coffer Peach Business Tracker
People still eating out
3
1
4
5
10
6
4
3
10
7
21
20
20
21
21
23
24
23
32
26
22
24
39
40
33
39
25
24
22
24
22
22
29
30
17
25
24
24
13
11
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Self service
Fine dining
Pub/bar meals
Fast food restaurant
Bakery/sandwich shop
Coffee shop
Casual dining
Pub restaurant
Daily 2-6 x a week 2-4 x a month Every 2-6 months Rarely (once/twice a year) Never
Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009
…compared to 2008
3
1
4
5
9
7
4
4
9
9
18
22
19
21
21
23
21
25
33
23
23
23
38
36
34
34
25
23
21
22
21
23
31
31
19
27
26
25
15
14
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Self service
Fine dining
Pub/bar meals
Fast food restaurant
Bakery/sandwich shop
Coffee shop
Casual dining
Pub restaurant
Daily 2-6 x a week 2-4 x a month Every 2-6 months Rarely (once/twice a year) Never
Source: Eating-out and the Consumer 2008, Peach Factory/Harris Interactive (survey February 2008)
U25s driving eating-out (% eating out at least monthly)
2925
31
42
47
2725
22 23
3539
25
20 21 21 20
30
232428
21
8
16
31
0
10
20
30
40
50
60
70
80
90
100
Casual dining Pub restaurant Pub/bar meals Fast food restaurant Bakery/sandwich shop Coffee shop
16-24 25-34 35-44 45-54 over 55
Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009
A brand literate nationIncrease in recognition across the board in past 18 months
Brand awarenessWhich of the following pub and restaurant brands have you heard of?
Over 90% know:McDonald’s; Pizza Hut; Burger King; KFC; Starbucks; Little Chef; Wetherspoons; Wimpy; Subway
Over 80% heard of:Beefeater; Pizza Express; Costa; Harvester; Over 70% know:Brewers Fayre; TGI Fridays; Frankie & Benny’s; Pret a Manger; Caffe Nero; Yates’s
Over 60% heard of:Slug & Lettuce; Nandos; Café Rouge; Garfunkels
Over 50% recognise:Bella Italia; Caffe Uno; Toby
Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009
Biggest visibility winners• La Tasca - up 19% points• Café Rouge - up 16%• Bella Italia - up 16%• Caffe Nero - up 15%• Carluccio’s - up 15%• Wagamama - up 14%• Toby - up 14%• YO! Sushi - up 12%• Pret - up 11%• Nandos - up 11%
Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009
People are using brands
1. McDonald’s 40%2. KFC 27%3. Wetherspoon 26%4. Subway 26%5. Pizza Hut 21%6. Burger King 20%7. Starbucks 18%8. Costa 17%9. Pizza Express 16%10. Harvester 16%
Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009
% eating at in past six months
People are using brands
11. Brewers Fayre 14%12. Nando’s 13% 13. Frankie & Benny’s 13%14. Beefeater 10%15. Pret 9%16. Caffe Nero 9%17. Café Rouge 9%18. Toby 8%19. Wagamama 8%20. Little Chef 7%Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009
% eating at in past six months
Biggest winners
• Subway +6% pts• Costa +6% • Pizza Express +6%• KFC +5%• Nandos +5%• Wetherspoon +4%• Café Rouge +4%• McDonalds +3%• Wagamama +3%
Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009
Increase in those visiting in past six months
Value and promotion work
Brands in growthannouncements only in past few weeks
• M&B to focus on six core brands
• Punch rolling out new concepts
• Nando’s plans for 20plus openings this year,
• Clapham House plans to triple number of GBKs
• Tampopo plans to expand at a rate of three or four sites a year
• Busaba Eathai plans four more sites,
• Giraffe launches Guerilla Burgers a new burger restaurant
• Living Ventures launches Red Door Neighbourhood Bar & Kitchen.
• David Bruce’s Country Food & Dining secures fourth site
But there’s competition
Operators have to be smart
How good was the experience?A more mixed picture from a more discerning consumer(% rating experience good or excellent)
Over 75% positive rating:Carluccio’s, Nando’s, Prezzo, Wagamama
Over 70% positive rating:Pizza Express; Beefeater; Harvester; La Tasca
Over 65% positive rating:Café Rouge; Toby; Chef & Brewer; GBK; Table Table; Bella Italia; Pizza Hut; Subway; TGI Fridays; Pret a Manger
Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009
But not all good newsConsumers much more critical - by and large a dip in experience ratings
Big risers - giving a better experienceCarluccio’s, Nando’s
Big losers - giving a worse experience….some casual dining brands who might be resting on their laurels
Innovation, excitement and giving people a reason to go out…winning through
Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009
A few words about pubs….
• Only 25% of adults go to their local for a drink at least twice a month; just 8% weekly
• Over 60% drink at home at least twice a month; 38% weekly
• 65% say they “like traditional pubs”• But not the centre of social lives • Prefer pubs with good food and wine
Source: Eating-out and the Consumer 2008, Peach Factory/Harris Interactive (survey February 2008)
What bosses are going to do about it
Market imperatives
Biggest challenges
1. Consumer confidence 2. Economy3. Employee relations4. Access to funding5. Changing customer habits
But are generally optimistic
Issues for consumers
1. Quality of experience2. Service3. Price 4. Consistency
Becoming more important
1. Customer service2. Online marketing3. Staff training4. Strong brand identity5. Menu development6. Customer feedback / research
Technological solutions: Voice recognition to improve drive-thru, carry-out and delivery orders - staying on top of
costs
Where need to improve
1. Online activity2. Consumer research3. Marketing4. Property / site acquisition5. Staff training and development
Where invest
1. Service levels2. Food quality3. Marketing and promotions4. Menu development
Investing in service culture
The new wallet
“It is not the strongest of the species that survives, not the most intelligent, but the one most responsive to change.”
Jim Sullivan quoting Darwin