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Eating Out Review - UK - September 2017

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Eating out market faces challenges…
…but there are opportunities for growth
Figure 1: UK eating out market size and forecast fan chart, 2012-22
Companies and brands
Foodservice technologies
Opportunities in retail spaces
Menu and restaurant concepts
The consumer
Types of venues for eating in
Figure 2: Restaurants and food outlets visited for eat in meals, May 2017
Types of venues for takeaways
Figure 3: Restaurants and food outlets visited for takeaway/delivery, May 2017
Frequency of eating in at restaurants
Frequency of ordering takeaways
Figure 4: Frequency of eating out or ordering takeaways/home deliveries, May 2017
Reasons for eating out
Figure 5: Reasons for eating in at food outlets or restaurants, May 2017
Dining companions
Figure 6: Dining companions, May 2017
Behaviours towards eating out
Figure 7: Behaviours towards eating in or ordering takeaway, May 2017
What we think
ISSUES AND INSIGHTS
Breakfast potential
The facts
The implications
Attracting Millennials
The facts
The implications
Retaining parents
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Eating out market is in slow growth
Businesses face headwinds…
…but opportunities knock
MARKET SIZE AND FORECAST
Eating out market holding up well despite headwinds
Figure 8: UK eating out market size and forecast, 2012-22
The winners
Pubs
Burger and chicken
Ethnic restaurants
Food-to-go
Pizza and Italian
Coffee shops
The challenges
The opportunities
Figure 9: UK eating out market size and forecast fan chart, 2012-22
Forecast methodology
MARKET DRIVERS
A view of the UK consumer
Consumers are holding up the eating out market
Figure 10: Trends in how respondents would describe their financial situation, 2009-17
Takeaway/home delivery becomes ubiquitous
Eating at pubs is the most popular leisure activity
Consumers’ appetite for fast food grows
Figure 11: Frequency of Leisure Activities, July 2016-17
Spending at pubs is holding up well 
Parents are big spenders in casual dining restaurants
Diners are spending up to £20 on a fast food meal
Figure 12: Approximate spending, July 2016-17
Foodism
Flexitarianism
Figure 13: Trends in selected attitudes towards food, April 2016-May 2017
Eating behaviours
Figure 14: Trends in selected food behaviours which consumers do all of the time, April 2016-May 2017
Healthy food factors
Figure 15: Trends in healthy food factors, April 2016-May 2017
What are the key challenges?
Hospitality recruitment at its most difficult
Apprenticeship levy comes into force in April 2017
Rising business rates
Rising inflation and the weakened Pound
National Living Wage and National Minimum Wage
Where are the market opportunities?
Growth of the workforce
Figure 16: Employment and unemployment trends, 2011-16 and 2016-21
Population growth can benefit the market
Figure 17: Trends in the age structure of the UK population, 2011-16 and 2016-21
Smartphone ownership is peaking
Figure 18: Ownership of mobile phones, January 2012-December 2016
Marine Stewardship Council declares North Sea cod sustainable
KEY PLAYERS– WHAT YOU NEED TO KNOW
Consumers' perceptions of selected restaurant brands
What's new in foodservice technology?
Why are restaurants opening in retail spaces?
Menu and restaurant concepts that stood out
Examples of restaurant groups that are growing
COMPANIES AND BRANDS 
Pubs
Figure 19: Selected leading pub operators in the UK, by outlet numbers, 2012-16
Burger and chicken
Figure 20: Key financial data for Nando's Chickenland Limited, 2015-16
Figure 21: Key financial data for Gourmet Burger Kitchen Limited, 2015-16
Coffee shops
Figure 22: Key financial data for Costa Limited, 2015-16
Figure 23: Key financial data for Starbucks Coffee Company (UK) Ltd, 2014-16
Figure 24: Key financial data for Caffè Nero Group Ltd, 2015-16
Pizza and Italian
Figure 25: Key financial data for Domino's Pizza UK & Ireland Limited, 2015-16
Figure 26: Key financial data for PizzaExpress (Restaurants) Limited, 2015-16
Figure 27: Key financial data for Bella Italia Restaurants Limited, 2015-16
Ethnic restaurants and takeaways
Figure 28: Selected Japanese restaurant/takeaway chains, by outlet numbers, 2011-16
Figure 29: Key financial data for Wagamama Limited, 2015-17
Figure 30: Key financial data for Turtle Bay Restaurants Ltd, 2015-16
Figure 31: Key financial data for Las Iguanas Limited, 2015-16
Food-to-go specialists
Figure 32: Key financial data for Greggs Plc, 2015-16
Figure 33: Key financial data for Leon Restaurants Ltd, 2014-15
Ones to watch
LAUNCH ACTIVITY AND INNOVATION
New technology in foodservice
Wi-Fi solutions
Pre-ordering apps
Feed It Back
Amazon Alexa ordering
Click-and-collect
Deliveroo x TripAdvisor
Brands rolling out home delivery
Brands that opened in retail spaces
Supermarkets
Roadside catering
Menu options that stand out
Set menus
Breakfast
Nitro cold brew
Concepts that gained traction
Cocktail bars
Reusable cup scheme
Japanese concepts
BRAND RESEARCH
Brand map
Figure 34: Attitudes towards and usage of selected brands, July 2017
Key brand metrics
Figure 35: Key metrics for selected brands, July 2017
Brand attitudes: McDonald’s is on par with Greggs as good value
Figure 36: Attitudes, by brand, July 2017
Brand personality: Costa Coffee and McDonald’s seen as ethical
Figure 37: Brand personality – Macro image, July 2017
JD Wetherspoon is welcoming and traditional
Figure 38: Brand personality – Micro image, July 2017
Greggs known for its healthy eating credentials
Figure 39: User profile of Greggs, July 2017
Costa Coffee seen as fun, and vibrant
Figure 40: User profile of Costa Coffee, July 2017
Wagamama benefits from its healthy reputation
Figure 41: User profile of Wagamama, July 2017
JD Wetherspoon continues to offer good value
Figure 42: User profile of JD Wetherspoon, July 2017
Domino’s is convenient and family-friendly
Figure 43: User profile of Domino’s, July 2017
Côte is special and welcoming
Figure 44: User profile of Côte, July 2017
McDonald’s represents value for money
Figure 45: User profile of McDonald’s, July 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
The frequency of eating out
Types of venues that people visit
Understanding the reasons for eating out
Identifying the types of dining companions
Examining the behaviours towards eating out
TYPES OF VENUES FOR DINING AND TAKEAWAY
Most people eat in pub restaurants/bars
British restaurants are amongst the most popular venues
More than half of Brits visit coffee shops
Figure 46: Restaurants and food outlets visited for eat in meals, May 2017
Fish and chip/kebabs are the most popular takeaway foods
More than half of Brits order takeaway from ethnic restaurants
Figure 47: Restaurants and food outlets visited for takeaway/delivery, May 2017
More people eat-in than buy takeaway
Demographics of eat in consumers
Demographics of takeaway consumers
Figure 48: Overall eating out usage, May 2017
Most people buy takeaways from one type of fast food outlet
Figure 49: Repertoire of fast food venues visited for takeaway/delivery, May 2017
Most people visit three to four types of restaurants for dining
Figure 50: Repertoire of restaurants visited for dining, May 2017
FREQUENCY OF EATING OUT 
Most consumers go out to eat once every three months
One in five consumers buys takeaways once a week
Once every 1-3 months takeaway users
Figure 51: Frequency of eating out or ordering takeaways/home deliveries, May 2017
Understanding the core customers of restaurant diners
25-34-year-olds are core customers for dining out
One in three parents of under-16s dines out
Figure 52: Frequency of dining at a food outlet or restaurant once a week or more, by age and parent status, May 2017
Understanding the core customers of takeaway meals
Parents of under-16s are the core customers of takeaways
One in three 16-44-year-olds buy takeaways
Figure 53: Frequency of ordering takeaways at a food outlet or restaurant once a week or more, by age and parent status, May 2017
REASONS FOR EATING OUT
Most diners eat out to treat themselves
More than half of diners eat out to celebrate birthdays/special occasions
Figure 54: Reasons for eating in at food outlets or restaurants, May 2017
Shoppers are most likely to eat at burger/chicken fast food outlets
Three in ten diners consider dining out to be affordable
Parents and wealthy diners are most likely to use special offers
One in five diners is time-poor
European restaurant diners are most likely to visit for work day lunches
Figure 55: Any reasons for eating out, by any restaurants visited for dining, May 2017
DINING COMPANIONS
Two in five diners dine with their partners
Figure 56: Dining companions, May 2017
Young men are dining out alone
Sandwich shops are some of the best places to hang out with friends
Figure 57: Any companions, by any fast food outlets visited for dining, May 2017
Gen X lead family dining occasions
Figure 58: Any companions, by any restaurants visited for dining, May 2017
BEHAVIOURS TOWARDS EATING OUT
Restaurants are a social space for family and friends
A good way to enjoy new experiences
Enjoying food that people do not cook at home
Eating out is a hobby
Most people are unsure about pre-order and pay
Takeaway containers should be recyclable
More can be done to encourage people to order takeaway
Rewarding takeaway customers for their loyalty
Letting takeaway customers order directly from restaurants
People are unsure about online reviews
Transparency matters to people who eat out
Figure 59: Behaviours towards eating in or ordering takeaway, May 2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
Brand research
Brand map
APPENDIX – MARKET SIZE AND FORECAST
Figure 60: Best- and worst-case forecasts for the eating out market, by value, 2017-22
Forecast methodology

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