Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Costs rise but opportunities knock
- Burger
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- Figure 1: UK burger restaurants market, value sales and forecast, 2012-22
- Chicken
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- Figure 2: UK chicken restaurants market, value sales and forecast, 2012-22
- Companies and brands
- McDonald’s remains the leading player while KFC experiences the halo effect
- Home delivery takes off in the UK
- Social media engages young diners
- The consumer
- People visit burger venues more than chicken venues
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- Figure 3: Fast food outlet usage, by type, June 2017
- Eating out is a treat for parents and young diners
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- Figure 4: Frequency of eating in or getting a takeaway from fast food outlets, June 2017
- Understanding diners’ motivations to visit
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- Figure 5: Motivations to visit burger and chicken outlets/restaurants, June 2017
- Healthy initiatives diners would most like to see
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- Figure 6: Healthy initiatives diners would most like to see, June 2017
- Behaviours towards eating burger and chicken out of home
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- Figure 7: Behaviours towards eating burger and chicken out of home, June 2017
- What we think
Issues and Insights
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- It’s vital to engage parents of under-16s
- The facts
- The implications
- There’s scope to cater to older diners
- The facts
- The implications
- Non-core items are important in their own way
- The facts
- The implications
The Market – What You Need to Know
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- Costs rise…
- …but opportunities knock
- Burger and chicken market is in growth
Segment Performance, Market Size and Forecast
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- Burger and chicken restaurants are in growth
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- Figure 8: Value sales for burger and chicken restaurants market, 2012-22
- Demographic changes could temper market growth
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- Figure 9: UK burger and chicken restaurants market, value sales and forecast, 2012-22
- Burger segment continues to dominate the market despite headwinds
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- Figure 10: Values sales of burger restaurants segment, 2012-22
- Figure 11: UK burger restaurants market, value sales and forecast, 2012-22
- Chicken segment experiencing halo effect
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- Figure 12: Value sales of chicken restaurants segment, 2012-22
- Figure 13: UK chicken restaurants market, value sales and forecast, 2011-21
- Forecast methodology
Market Drivers
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- Rising costs on the cards for food operators in 2017
- Business rates
- Rising inflation and the weakened pound
- National Living Wage and National Minimum Wage
- Apprenticeship levy comes into force in April 2017
- Consumer crutch holding up eating out sector
- Driven by those who are ‘getting by’…
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- Figure 14: Trends in how respondents would describe their financial situation, 2009-17
- …and diners who are spending up to £20 on a meal
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- Figure 15: Leisure activity spend on going to a fast food restaurant for a meal, January 2016-April 2017
- Core user group set for stunted growth
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- Figure 16: Trends in the age structure of the UK population, 2011-16 and 2016-21
- Understanding Britons’ attitudes towards food
- Eating for health
- Flexitarianism
- Foodism
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- Figure 17: Trends in selected attitudes towards food, April 2016-May 2017
- Smartphone ownership is peaking
- Hospitality recruitment at its most difficult…
- …but stability is on the horizon
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- Figure 18: Trends in healthy food factors, April 2016-May 2017
- FSA issues new regulations on cooking burgers
- Red Tractor toughens farm standards
Key Players – What You Need to Know
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- McDonald’s leads by store and usage numbers
- KFC experiencing the halo effect
- Home delivery takes off in the UK
- Social media engages young diners
Companies and Brands
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- Figure 19: Selected leading burger and chicken restaurant chains, by outlet numbers, 2013-17
- McDonald’s
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- Figure 20: Key financial data for McDonald’s Restaurants Ltd, 2014-15
- Kentucky Fried Chicken (KFC)
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- Figure 21: Key financial data for Kentucky Fried Chicken (GB) Ltd, 2014-15
- Nando’s
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- Figure 22: Key financial data for Nando’s Chickenland Limited, 2015-16
- Burger King
- Gourmet Burger Kitchen (GBK)
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- Figure 23: Key financial data for Gourmet Burger Kitchen Limited, 2015-16
- Byron Hamburgers
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- Figure 24: Key financial data for Byron Hamburgers Limited, 2015-16
- Five Guys
- Honest Burgers
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- Figure 25: Key financial data for Honest Burgers Limited, 2014-15
- Meat Liquor
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- Figure 26: Selected gourmet burger and chicken outlets, by outlet numbers, 2015-17
- Ones to watch
- Smashburger
- Shake Shack
- Absurd Bird
- Chicken Society
- Patty & Bun
- 7Bone Burger Co
- BIRD
- Wingstop
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Launch Activity and Innovation
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- Home delivery and takeaway gains traction
- Delivery-only format vs expensive restaurant sites
- Using free food to drive footfall
- Smaller formats scale up
- Chicken goes big on new flavours
- Korean
- Nashville
- Jamaican
- Boneless chicken adds zing
- Dipping sauce trend heats up
- Initiatives to help diners make healthy choices
- Quality of ingredients and equipment
- Vegetarian concepts gain traction
- Lighter choices
- Non-core items become important in their own right
Advertising and Marketing Activity
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- Using social media to engage young diners
- Nando’s continues to drive website traffic
- Gourmet Burger Kitchen (GBK) uses visuals to engage
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- Figure 27: Selected burger and chicken brands’ social media presence, 2016-17
- McDonald’s core objective of growing consumer trust
- The end of Olympic sponsorship
- Aligns with UEFA Women’s Euro in 2017
- Continues to target music-lovers in the UK
- Pushes McDelivery services globally
- Using child bereavement to promote Filet-O-Fish backfires
- McCafé pokes fun at hipster coffee in 2017
- Chicken Selects takes centre stage at Christmas
- Launches Night Tube map app for London diners
- KFC remains focused on building trust
- Building trust through behind-the-scenes initiative
- KFC continues to push lunchtime Ricebox range
- The Whole Chicken gets mixed reviews
- Burger King focuses on creative awards
- Attempts to have fun with Google Home backfires
- Gourmet Burger Kitchen (GBK) benefits from US presidential elections
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- Figure 28: Recorded above-the-line, online display and direct mail total advertising expenditure, by selected burger and chicken operators, 2012-17
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 29: Attitudes towards and usage of selected brands, June 2017
- Key brand metrics
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- Figure 30: Key metrics for selected brands, June 2017
- Brand attitudes: Burger King and KFC are seen as widely available
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- Figure 31: Attitudes, by brand, June 2017
- Brand personality: McDonald’s and Nando’s seen as more fun and vibrant
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- Figure 32: Brand personality – Macro image, June 2017
- TGI Fridays is cool and exciting
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- Figure 33: Brand personality – Micro image, June 2017
- Brand analysis
- Nando’s attracts more affluent diners
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- Figure 34: User profile of Nando’s, June 2017
- KFC is surging forward
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- Figure 35: User profile of KFC, June 2017
- TGI Fridays has low brand commitment
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- Figure 36: User profile of TGI Fridays, June 2017
- McDonald’s is a favourite brand
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- Figure 37: User profile of McDonald’s, June 2017
- Burger King is falling behind
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- Figure 38: User profile of Burger King, June 2017
The Consumer – What You Need to Know
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- Under-35s and parents are frequent diners
- Understanding burger and chicken diners
- What are diners’ motivations to visit?
- How to help diners make healthy choices?
- Understanding burger and chicken diners’ behaviours
Usage Habits
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- Students and parents eat burger or chicken out-of-home
- Britons eat at burger venues more than chicken venues
- Demographics of burger diners
- Demographics of chicken diners
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- Figure 39: Any usage, June 2017
- Usage continues to thrive in 2017 despite headwinds
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- Figure 40: Fast food outlet usage, by type, June 2017
- Usage declines with age
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- Figure 41: Fast food outlet usage, by age groups, June 2017
Frequency of Use
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- McDonald’s and Burger King’s frequent users
- KFC and Nando’s frequent users
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- Figure 42: Frequency of eating in or getting a takeaway from fast food outlets, June 2017
Understanding Diners’ Motivations to Visit
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- Most diners are interested in daily deals
- Millennials most likely to click and collect
- Younger diners drawn to late-night opening hours
- Young men enjoy using self-service ordering kiosks
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- Figure 43: Motivations to visit burger and chicken outlets/restaurants, June 2017
- Drinks menus appeal to rotisserie chicken diners
- 35-44-year-olds most likely to use loyalty cards
- Women most likely to enjoy salad and dessert bars
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- Figure 44: Any motivations to visit burger and chicken outlets/restaurants, by any burger or chicken fast food outlets/restaurants usage, June 2017
Healthy Initiatives Diners Would Most Like to See
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- Health factors most important to Britons
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- Figure 45: Trends in healthy food factors, April 2016-May 2017
- Behind-the-scenes visits can help build trust among core customers
- Over-65s want to see less sugar, fat and salt in meals
- Women would like calorie content to be more visible
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- Figure 46: Healthy initiatives diners would most like to see, June 2017
- Healthier meal alternatives become commonplace
- Men want to see a wider range of portion sizes
- Diners expect healthier cooking methods
- Parents of young children seek healthy snacks
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- Figure 47: Any healthy initiatives diners would most like to see, by any burger or chicken fast food outlets/restaurants usage, June 2017
Out-of-home Eating Behaviours
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- Understanding Britons’ behaviours towards food
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- Figure 48: Trends in selected food behaviours which consumers do all of the time, April 2016-May 2017
- Customisation is important across all types of outlets/restaurants
- Health concerns may convert fast food diners into gourmet diners
- Consumers who have ordered home delivery from a burger/chicken restaurant
- Understanding chicken diners
- 16-24-year-olds and over-55s prefer boneless chicken
- Crispy chicken proves more popular than grilled chicken
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- Figure 49: Behaviours towards eating burger and chicken out of home, June 2017
- Gourmet chicken becomes commonplace
- There is scope to promote gift cards
- Chicken diners enjoy dipping sauces
- Gourmet burger diners most adventurous
- Burger diners are lukewarm about paying more for gourmet burgers
- Diners drawn to other chicken outlets for lunchtime meals
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- Figure 50: Any behaviours towards eating burger and chicken out of home, by any burger or chicken fast food outlets/restaurants usage, June 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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- Figure 51: UK burger and chicken restaurants market, value sales, best- and worst-case forecast, 2017-21
- Figure 52: UK burger restaurants segment, value sales, best- and worst-case forecast, 2017-21
- Figure 53: UK chicken restaurants segment, value sales, best- and worst-case forecast, 2017-21
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