3663 Presentation for the FEC BALPPA Meeting at Legoland - Food trends and leisure spends

Catherine Hinchcliff & Jo Hughes22nd May 2014

Food Trends and Leisure Trends

What do you want to hear?

The OutlookChanging customer

needs

What’s Hot& What’s Not

Where should I hangout

to be hip?!?

The outlook is positive

What Peach Report says What Allegra says

Source: ONS, The ITEM Club

GDP growth is recovering and unemployment falling

Source: The ITEM Club

Growth in avg. earnings unlikely to out-pace inflation till 2015

What’s happening now

Source: Visit Britain April 2014

What formats are on the up?

The Peach report 2014

Outperforming channels

67%

36% 33% 20%

45%

STREET FOOD

1

3

4 6

BR

AN

DE

D

58%

5

Coffee shops and street food are most widely expected to outperform the Eating Out market in 2014. Consumers still want a daily coffee fix and street food’s popularity grows .

Source: Allegra UK Foodservice Quarterly Debrief Feb 2014% of senior executives who listed these sectors for growth / decline

+8% sales growth by 2014



Flexible, premium casual dining sectors positioned to thrive


2013 2014 Challenge %

3 1 Intense competition 37%

1 2 Rising food/Ingredient costs 31%

5 3 Attracting and retaining high quality staff 30%

6 4 Discount driven customers 22%

9 5 High rents/Property costs 20%

4 6 Declining consumer spending 15%

11 =7 Demanding consumers 11%

8 =7 Raising profitability 11%

Intense competition is the number one business challenge in 2014. New concept innovation across the sector and continuing physical

expansion, make this marketplace extremely competitive.

Source: Allegra UK Foodservice Quarterly Debrief Feb 2014

Operators’ main challenges

Allegra Strategies, Food Strategy Forum, Top of Mind, January 2013

Key success factors in foodservice

Caterers financial/economic challenges


Food costs are still important, but is not the most pressing cost

Financial challenges

Loyalty is the holy grail, operators are investing in the customer experience

KEY LONG TERM CONSUMER TRENDS IMPACTING THE EATING OUT MARKET, 2014Percentage of Respondents

AGEING POPULATION

CONVENIENCE

DIGITAL CONSUMER

DEMANDING CONSUMER

GROWING FOOD CULTURE

EXPERIENCE-DRIVEN

OBESITY CONCERNS

The consumer trends driving foodservice


Squeeze on household budgets was number one last year, and does not feature in the top factors this year.

ALL-DAY INFORMALITY

PERSONALISATION BRAND TRUST

RECESSIONARY LEGACYPREMIUM FAST FOOD

HEALTHY CONVENIENCE

Key short-term consumer trends in food


Hip pizza

BBQ Chicken Cheaper cuts e.g. Flat Iron Steak

Single item menus

British traditional

Sustainable fish Bakery


50% 42% 34% 33%

33% 30% 24% 24%

% mentions Other mentions:Steak 21%, Hotdogs 19%, Chinese Steamed Buns 13%,

Ceviche 11%, Ramen 10%

What’s hot and what’s not?

“The Street Food boom is just beginning and is tapping into a strong consumer need for variety coupled with integrity.”

Chief Executive, casual dining branded chain

“Street Food will gather momentum outside of London, and will outgrow the overall market.”

Food Buyer, leading department store chain

Top 20 main courses 2013 (2012) 1. Beefburger (1)2. Pizza (2) 3. Chicken burger (3)4. Fish & Chips (4)5. Rump steak (5)6. Roast chicken (7)7. Ribeye Steak (10)8. Chicken curry (6)9. Sirloin steak (9)10. Sunday lunch (11)11. Chicken breast (13)12. Grilled chicken (12)13. Sausage & mash (8)14. Pork ribs (15)15. Beef lasagne (14)16. Vegetable burger (18)17. Chicken pasta (20)18. Combo (16)19. Mixed grill (17)20. Hot dog (20)

Source: Horizons Menurama, Summer 2013

Top dishes featuring on menusTop dishes on menus

Key Cuisine Trends 2013-14

South American

Refining fast food Premiumisation

Source: Allegra Eating out in the UK, 2013

Pan-Asian

• British all-day chain backed by Richard Caring • Emphasis on locally-sourced produce• 12 openings expected for 2014

• Premium burger chain with 1,000+ US sites• Customisable burgers, no frozen ingredients• Over 20 sites to open in UK in 2014

• Fast-growing chicken shop chain• Nando’s-style chicken in KFC-style shops• 18 new sites in 2014, a 47% jump

• Informal all-day café and bar chain• Brunch, tapas, drinks and quirky interiors• 15 new sites in 2014, a 37% increase


• Healthy fast food chain with global flavours• Quirky brand focused on healthy and affordable• Plans to open 11 sites in 2014, doubling estate

• Greene King’s 220-strong pub chain• Huge selection of dishes at competitive

prices• 25 sites to open in 2014


Your customers want to purchase from you

71% expect to buy food and drink from theme parks when they visit

Source: You GovLeisure Catering 2012Base: 1,872 UK adults who have visited Leisure Venues

Refreshments purchased at venue, ranked by popularity of venue

43% wide range available

30% food well presented and

prepared

Opinions on catering at leisure venues on last visit..

19% food low in nutrients

28% food could be more

interesting

21%not enough

hot food

Source: You Gov Leisure Catering 2012

Some of the concepts we work with

And more…

11 to 15 year oldfavourite dishes

1.Pasta2.Pizza3.Sandwich4.Baguette5.Wrap6.Roast dinner7.Chicken burger8.Curry9.Jacket potato10.Beef burgerSource: Research Bods February 2013

What do parents wantto see in school food?

1.Five a day 84%2.Scratch meals 77%3.Free-range eggs 66%4.Fresh ingredients 64%5.Farm assured 64%6.More fibre 62%7.Sustainable fish 60%8.Healthier options 60%9.Wholemeal 57%10.Ban!Fizzy Drinks 64%, Sweets 51%

So we also offer…

What you need to do…Check the rules for nutritional and front of pack information

Train your front and back of house staff

Be ready to give allergen information to your customers- verbally, on leaflets, boards etc

Risk assess your kitchens

See our guide for more information on www.3663.co.uk/fir

Thanks for listening

3663 Presentation for the FEC BALPPA Meeting at Legoland - Food trends and leisure spends

Food

Transcript of 3663 Presentation for the FEC BALPPA Meeting at Legoland - Food trends and leisure spends