Assessing consumer demand for FreeFrom in Foodservice

Emma ReadDirector of Marketing & Business Development17 November 2015

• Is FreeFrom the same as healthy, and does it matter?

• What’s on menus

• How are operators responding?

• What next?

What I’ll be covering

Horizons work in and define the Foodservice Universe

And offer a range of Services giving data and insights

www.hrzns.com

Is FreeFrom the same as healthy, and does it matter?

FreeFrom is a part of Health, but there is more as well

Source: Eating Out-Look Consumer Survey June 2015

0%

2%

4%

6%

8%

10%

12%

14%

Vegetarianoptions

Calorieinformation

Low/ reducedfat options

Low/ reducedsugar

Reduced/ lowsalt options

‘Free From’ foods in general

Gluten/ glutenfree options

Lowcarbohydrate

options

Dairy free/lactose

intolerance

Vegan options

52% of consumers mention at least one health/lifestyle factor affecting choice of where or what to eat

0

20

40

60

80

100

120

140

160

180

200

‘Free From’ foods in general

Dairy free/lactose

intolerance

Gluten/ glutenfree options

Calorieinformation

Reduced/ lowsalt options

Lowcarbohydrate

options

Low/ reducedfat options

Vegetarianoptions

Vegan options Low/ reducedsugar

Index on Total

Men Women

Source: Eating Out-Look Consumer Survey June 2015

Health/lifestyle issues affecting where/what eaten

Women are more engaged on dietary issues than men

Consumer interest in allergen legislation change grows again

16% 19%

17%20%

37%33%

30% 28%

0%

20%

40%

60%

80%

100%

June 2014 June 2015

Unaware & not bothered

Unaware but welcome

Aware & not bothered

Aware & welcome

70%72%

Source: Eating Out-Look Consumer Survey July 2015

What’s on menus

What menus?

Source: Menurama Summer 2015

Brands with gluten free menu options on the increase

Source: Horizons Menurama Summer 2015

• 50% of brands in Menurama now have gluten free options

• Up from 30% a year ago

10%

20%

30%

40%

50%

60%

Summer Winter Summer Winter Summer Winter Summer Winter Summer

2011 2012 2013 2014 2015

As are the number of lines available

Brands offering GF dishes

• Over 600% increase since Summer 2011

• Over 135% increase YOY

Source: Horizons Menurama Summer 2015

0

200

400

600

800

1000

1200

1400

1600

Summer 2011 Winter 2011 Summer 2012 Winter 2012 Summer 2013 Winter 2013 Summer 2014 Winter 2014 Summer 2015

Number of GL Listings on Menu’sWetherspoon

Revolution

Hilton

Flaming Grill

Goose

Papa Johns

Yates's

Bill's

Holiday Inn

Strada

Le Pain Quotidien

Toby Carvery

The Slug & Lettuce

Sainsbury's Café

Costa Coffee

Food To Go

Premier Inn

Marriott

Patisserie Valerie

The Place To Eat

Little Chef

Starbucks

Pizza Hut

Peyton & Byrne

Best Western

Caffè Nero

Taylor Walker

Zizzi

Bhs Café / Restaurant

Pitcher & Piano

Handmade Burger Co

Ed's Diner

Abokado

Chiquito

Chef & Brewer

La Tasca

Marstons Carvery (formerly

Taverners Carvery)

Two For One (Marston's)

Carluccio's

Fayre & Square

Hungry Horse

Greene King Local Pubs

Giraffe

Domino's Pizza

Jamie's Italian

Old English Inns

T.G.I. Friday's

Las Iguanas

Farmhouse Inns

Pod

Bella Italia

Eating Inn

Café Zest

Leon

Ping Pong

Prezzo

ASK

Gourmet Burger Kitchen

Frankie & Benny's

PizzaExpress

0

10

20

30

40

50

60

70

80

Num

ber of Foodservice Brand

s

Summer 2014

Summer 2015

‘Healthy/lifestyle’ factors Dietary requirements

‘Allergens’ and ‘Gluten Free’ are now the ‘norm’ on menus

Source: Menurama Summer 2015

0

10

20

30

40

50

60

70

Num

ber of Foodservice Brand

s

Summer 2014

Summer 2015

And people are seeking more information about their food

Source: Menurama Summer 2015

Brands offering Gluten

Free Dishes

• Abokodo

• Carluccio's

• Chef & Brewer

• Chiquito

• Ed’s Diner

• Jamie’s Italian

• Handmade Burger Co

• La Tasca

• Marstons

• Hungry Horse

Gluten Free continues to lead with separate menus (and www)

Source: Menurama Summer 2015

JD Wetherspoon Website

• Pizza Express

• Ask

• Zizzi

• Prezzo

• Bella Italia

• Harvester

• Gusto

• Beefeater

• Abokado

• Yo Sushi

There are also “Healthy Sections” appearing on menus

The option of a Healthier alternative has proven particularly popular on Casual Italian Menu’s

Source: Menurama Summer 2015

• LEON

• TGI Fridays

• Pizza Express

• Zizzi

• Little Chef

• Thistle

• EAT

‘Lactose/dairy free’ is increasingly an option on menus

TGI Fridays use a colour code system to identify foods that are free from common allergens. This can be used as a filter on their website menu’s.

LEON include a “DF” code to highlight the dairy free options

Source: Menurama Summer 2015

• All Bar One

• ASK

• La Tasca

• Las Iguanas

• Toby Carvery

• Ping Pong

• Pizza Express

• Crown Carvery

• Zizzi’s

As is ‘vegetarian/vegan’

Source: Menurama Summer 2015

How else are operators responding? It’s not just about menus

8 8 8 8 out 10 out 10 out 10 out 10 have made have made have made have made changes changes changes changes since the legislation came into since the legislation came into since the legislation came into since the legislation came into forceforceforceforce

Source: Eating Out-Look Operator Survey: Spring 2015

Operators have responded positively to allergen legislation

Operators are responding to wider health trends - and consumer and government pressures

Others catching up quickly through partnerships…

Pressure on industry to ‘do the right thing’….

Take a (vegetarian) leaf out of Pret’s book?

• Best-selling vegetarian SuperBowlof beetroot, butternut squash and feta

• Falafel and Halloumi wrap now the fastest selling hot wrap

• UK’s healthiest and fastest fast-casual restaurant…

Operators catering for a variety of dietary requirements

…or lifestyle choices!

Healthy Quick Service Restaurants are the 2nd fastest growing outlets

Rank Type Of Offer UK

Outlets2015

Growth Brands Sector

1Italian casual dining

105 81%Caffe Concerto, Cibo Ristorante Bar & Grill, Gusto, La Bottega, La Porchetta, Polpo, San Carlo, Wildwood, Wildwood Kitchen, Zaza

R

2222Healthy Healthy Healthy Healthy quick quick quick quick service service service service

88888888 83%83%83%83%AbokadoAbokadoAbokadoAbokado, , , , Chop'dChop'dChop'dChop'd, Planet Organic [Food To , Planet Organic [Food To , Planet Organic [Food To , Planet Organic [Food To Go], Pure, Tossed, Vital Ingredient, Whole Foods Go], Pure, Tossed, Vital Ingredient, Whole Foods Go], Pure, Tossed, Vital Ingredient, Whole Foods Go], Pure, Tossed, Vital Ingredient, Whole Foods Market Market Market Market

Q Q Q Q

3Mexican burrito fast casual

83 98%Barburrito, Benito's Hat Mexican Kitchen, Chilango, Chipotle Mexican Grill, El Mexicana, FreebirdsWorld Burrito, Mission Burrito, Poncho No 8, Tortilla Mexican Grill

Q

4Sandwich bar quick service

79 55%Bagel Nash, Birley Sandwiches, Camden Food Co., Delice de France, Pita Pit, Simply Eat, Wrap It Up

Q

5 Coffee shop 74 64%

Benugo Cafe Deli, Cafe Grounded, Ca'puccino, DP Cappuccino Espresso, Fait Maison, Fernandez & Wells, Filmore & Union, Ground Espresso Bars, Rhode Island Coffee, Small Batch Coffee Company

Q

Source: Horizons Ones To Watch - April 2015

How they look

Source: Horizons Ones To Watch - April 2015

It’s on the move! Healthy at Motorway Service Stations

Tossed now available in 6

Motorway Service Stations

“Even we were gob-smacked by

the PR,” he said. “Customers are

walking the talk (on healthy food).”

McKie

McKie also revealed that the

fastest growing line at the

Waitrose stores located with

Welcome Break is sushi. “It’s

growing by 35% year-on-year,”

he said.

What’s next?

Source: lunch! Show 2015

Clean, Raw, Paleo, Birch Water, Egg White Bites, Super Yogurt

Source: lunch! Show 2015

Healthy Food for Kids continues to innovate

• Changing from:

• To:

• To:

Last year I talked about the evolution of Free From

It’s a marketing message

It’s what consumers want (& expect)

It’s an active reason for choosing a location

• Changing from:

• To:

• To:

• And now:

This year it’s moved on even further

It’s a marketing message

It’s what consumers want (& expect)

It’s an active reason for

choosing a location

FF is a part of the wider health debate for us all

In summary

• This is not a fad, it’s here to stay. Consumers are voting with their feet!

• Consumers are more educated and are expecting and looking for more choice of healthy options

• Operators are actively making changes to their offer to meet consumer needs

• With plenty of evidence on menus and on the high street, and new operators entering the sector

• FreeFrom is a part of the wider heath debate

In summary

Thank you!

emma.read@hrzns.com