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Non High Street Foodservice Trends - UK,

March 2014

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Table of Contents Non High Street Foodservice Trends UK, March 2014

© Mintel Group Ltd. All rights reserved. iii

INTRODUCTION ..................................................................................................................................... 8

Definition ......................................................................................................................................... 8 Abbreviations .................................................................................................................................. 8

EXECUTIVE SUMMARY ......................................................................................................................... 9

Market drivers ................................................................................................................................. 9 Supermarket foodservice offering ................................................................................................... 9 Airport foodservice offering ............................................................................................................. 9 Motorway service stations/roadside catering .................................................................................. 9 Train stations................................................................................................................................. 10 The consumer ............................................................................................................................... 11

In-store and transport hub catering outlets visited ............................................................................................ 11 Figure 1: In-store and transport hub catering outlets visited, by usage at least a few times a month, December 2013 ................................................................................................................................................ 11 Reasons for using in-store and transport hub catering outlets .......................................................................... 12 Figure 2: Reasons for visiting in-store and transport hub catering outlets, December 2013.............................. 12 Attitudes towards in-store and transport hub catering outlets ........................................................................... 13 Figure 3: Attitudes towards in-store and transport hub catering, December 2013 ............................................. 13 Interest in products/services at supermarket catering outlets ........................................................................... 14 Figure 4: Interest in products/services at supermarket catering outlets, any interest, December 2013 ............. 14 Use of vending machines and self-service machines ....................................................................................... 14 Figure 5: Use of vending machines and self-service machines in the last 12 months, December 2013 ............ 15 Attitudes towards self-service machines ........................................................................................................... 16 Figure 6: Attitudes towards self-service machines, December 2013 ................................................................. 16 Attitudes towards vending machines ................................................................................................................ 17 Figure 7: Attitudes towards vending machines, December 2013 ...................................................................... 17

What we think................................................................................................................................ 18

MARKET DRIVERS .............................................................................................................................. 19

Key points ..................................................................................................................................... 19 Consumer spending priorities ....................................................................................................... 19

Figure 8: Consumer spending priorities (after bills), dining out, November 2009- January 2014 ...................... 19 Figure 9: Selected consumer spending priorities (after bills), January 2011- January 2014.............................. 20

Eating out market .......................................................................................................................... 21 Figure 10: UK eating out market size and forecast, 2008-18 ............................................................................ 21 Drive-through concepts..................................................................................................................................... 21 University campuses ........................................................................................................................................ 22

High street concerns ..................................................................................................................... 22 The changing face of retail poses a threat to the high street ............................................................................. 22 New initiatives look to re-energise high streets ................................................................................................. 23 More leisure-focused high streets ..................................................................................................................... 23 Changing consumer expectations call for flexibility ........................................................................................... 24

ISSUES AND INSIGHTS ....................................................................................................................... 25

Capitalising on consumer demand for convenience ..................................................................... 25 The facts ........................................................................................................................................................... 25 The implications................................................................................................................................................ 25

Profiting from high street restaurant brands ................................................................................. 26 The facts ........................................................................................................................................................... 26 The implications................................................................................................................................................ 26

The grab and go opportunity ......................................................................................................... 27 The facts ........................................................................................................................................................... 27 The implications................................................................................................................................................ 27

TREND APPLICATION ......................................................................................................................... 28

Trend: Life Hacking ....................................................................................................................... 28 Trend: Many Mes .......................................................................................................................... 28 Mintel Futures: Human .................................................................................................................. 29

SUPERMARKET FOODSERVICE OFFERING .................................................................................... 30


© Mintel Group Ltd. All rights reserved. iv

Key points ..................................................................................................................................... 30 Overview ....................................................................................................................................... 30 Tesco ............................................................................................................................................ 31

Giraffe .............................................................................................................................................................. 32 Harris + Hoole (H+H) ........................................................................................................................................ 32 Decks ............................................................................................................................................................... 33

Waitrose ........................................................................................................................................ 33

TRAVEL HUBS ..................................................................................................................................... 35

Key points ..................................................................................................................................... 35 Airports .......................................................................................................................................... 35

Overview .......................................................................................................................................................... 35 Gatwick............................................................................................................................................................. 36 Heathrow .......................................................................................................................................................... 36 Other airport developments .............................................................................................................................. 38

Motorway service stations/roadside catering ................................................................................ 38 Overview .......................................................................................................................................................... 38 Welcome Break ................................................................................................................................................ 39 Extra Motorway Services .................................................................................................................................. 40 Euro Garages ................................................................................................................................................... 41

Train stations................................................................................................................................. 41 Overview .......................................................................................................................................................... 41 Figure 11: Passenger kilometres on national railways, 2008/9-2012/13 ........................................................... 42 London Underground ........................................................................................................................................ 42 Network Rail ..................................................................................................................................................... 42

DEPARTMENT STORES, VARIETY STORES & CLOTHING RETAILERS ....................................... 44

Key points ..................................................................................................................................... 44 Overview ....................................................................................................................................... 44 John Lewis .................................................................................................................................... 44 Debenhams ................................................................................................................................... 45 BHS ............................................................................................................................................... 45 Next ............................................................................................................................................... 45 Mothercare .................................................................................................................................... 46

OTHER RETAIL SECTORS .................................................................................................................. 47

Key points ..................................................................................................................................... 47 Garden centres ............................................................................................................................. 47

Garden Centre Group (GCG) ........................................................................................................................... 47 Tesco/Dobbies.................................................................................................................................................. 47

DIY stores ..................................................................................................................................... 48 B&Q .................................................................................................................................................................. 48

Bookstores .................................................................................................................................... 48 Other ................................................................................................................................................................ 49

THE CONSUMER – IN-STORE AND TRANSPORT HUB CATERING HABITS ................................. 50

Key points ..................................................................................................................................... 50 In-store and transport hub catering outlets visited ........................................................................ 50

Supermarket cafés/restaurants are most frequently used in-store catering options .......................................... 50 Figure 12: In-store and transport hub catering outlets visited, December 2013 ................................................ 51 Figure 13: In-store and transport hub catering outlets visited, by usage at least a few times a month, December 2013 ................................................................................................................................................ 52

Reasons for using in-store and transport hub catering outlets ..................................................... 53 Refuelling is a key reason for using in-store catering outlets ............................................................................ 53 Figure 14: Reasons for visiting in-store and transport hub catering outlets, December 2013 ............................ 53 Nearly half of supermarket café users are looking for a quick bite .................................................................... 54 Figure 15: Reasons for visiting supermarket cafés/restaurants, December 2013 ............................................. 54 Department store cafés should create more visual cues to prompt ‘treat’ behaviour ........................................ 55 Figure 16: Reasons for visiting department store/variety store cafés/restaurants, December 2013 .................. 55 Speed of service is important to MSA catering users ........................................................................................ 56 Figure 17: Reasons for visiting MSA/petrol station cafés/restaurants, December 2013 .................................... 56 Catering to varying needs at train stations ........................................................................................................ 57


© Mintel Group Ltd. All rights reserved. v

Figure 18: Reasons for visiting train station cafés/restaurants, December 2013 ............................................... 57

THE CONSUMER – ATTITUDES TOWARDS IN-STORE AND TRANSPORT HUB CATERING OUTLETS .............................................................................................................................................. 59

Key points ..................................................................................................................................... 59 Perceptions of high prices deter consumers from using outlets in non-high street locations ....... 60

Figure 19: Attitudes towards in-store and transport hub catering, December 2013 ........................................... 60 Consumers are looking for brand assurances, but few are willing to pay a premium for it .......... 61 Opportunities for promoting local/regional food ............................................................................ 61 Technology could help operators reduce instances of being overlooked ..................................... 62

THE CONSUMER – INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS .............................................................................................................................................. 63

Key points ..................................................................................................................................... 63 Four in five supermarket catering users want to see more low-cost, grab and go options .......... 63

Figure 20: Interest in products/services at supermarket catering outlets, any interest, December 2013 ........... 63 Figure 21: Interest in products/services at supermarket catering outlets, December 2013 ............................... 65

Convenience-driven consumers ................................................................................................... 65 Leisurely consumers ..................................................................................................................... 66

THE CONSUMER – VENDING & SELF-SERVICE MACHINES .......................................................... 67

Key points ..................................................................................................................................... 67 A third of adults have used vending or self-service machines in the last year ............................. 68

Figure 22: Use of vending machines and self-service machines in the last 12 months, December 2013 .......... 68 Attitudes towards self-service machines ....................................................................................... 69

Figure 23: Attitudes towards self-service machines, December 2013 ............................................................... 69 Improvements to self-service machines boost availability… ............................................................................. 69 … with scope also to support demand .............................................................................................................. 70 Food trucks can act as a middle ground between machines and human service .............................................. 70

Attitudes towards vending machines ............................................................................................ 71 Figure 24: Attitudes towards vending machines, December 2013 .................................................................... 71 Quality concerns hold back vending machines ................................................................................................. 71 Global innovation suggests wide scope in vending ........................................................................................... 72 Fresh, fast food................................................................................................................................................. 72 Opportunity for healthier vending machine products ......................................................................................... 73 Experiential vending opportunities .................................................................................................................... 73

APPENDIX – IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED ......................... 74

Figure 25: In-store and transport hub catering outlets visited, December 2013 ................................................ 74 Figure 26: In-store and transport hub catering outlets visited – Supermarket, by demographics, December 2013 ................................................................................................................................................ 75 Figure 27: In-store and transport hub catering outlets visited – Department store, by demographics, December 2013 ................................................................................................................................................ 77 Figure 28: In-store and transport hub catering outlets visited – Variety store, by demographics, December 2013 ................................................................................................................................................ 79 Figure 29: In-store and transport hub catering outlets visited – Clothing shop, by demographics, December 2013 ................................................................................................................................................ 81 Figure 30: In-store and transport hub catering outlets visited – Furniture store, by demographics, December 2013 ................................................................................................................................................ 83 Figure 31: In-store and transport hub catering outlets visited – Garden centre, by demographics, December 2013 ................................................................................................................................................ 85 Figure 32: In-store and transport hub catering outlets visited – Bookstore, by demographics, December 2013 ................................................................................................................................................................. 88 Figure 33: In-store and transport hub catering outlets visited – Other shop, by demographics, December 2013 ................................................................................................................................................ 90 Figure 34: In-store and transport hub catering outlets visited – Shopping centre, by demographics, December 2013 ................................................................................................................................................ 92 Figure 35: In-store and transport hub catering outlets visited – Motorway service areas/petrol stations, by demographics, December 2013 ................................................................................................................... 94 Figure 36: In-store and transport hub catering outlets visited – Train stations, by demographics, December 2013 ................................................................................................................................................ 96 Figure 37: In-store and transport hub catering outlets visited – Airports, by demographics, December 2013 ................................................................................................................................................................. 99


© Mintel Group Ltd. All rights reserved. vi

APPENDIX – REASONS FOR USING IN-STORE AND TRANSPORT HUB CATERING OUTLETS ............................................................................................................................................ 101

Figure 38: Reasons for visiting in-store and transport hub catering outlets, December 2013 .......................... 101 Figure 39: Most popular reasons for visiting in-store and transport hub catering outlets – Supermarket café/restaurant, by demographics, December 2013 ....................................................................................... 102 Figure 40: Next most popular reasons for visiting in-store and transport hub catering outlets – Supermarket café/restaurant, by demographics, December 2013 .................................................................. 104 Figure 41: Most popular reasons for visiting in-store and transport hub catering outlets – Café/restaurant in a department/variety store, by demographics, December 2013 ......................................... 106 Figure 42: Next most popular reasons for visiting in-store and transport hub catering outlets – Café/restaurant in a department/variety store, by demographics, December 2013 ......................................... 108 Figure 43: Most popular reasons for visiting in-store and transport hub catering outlets – Café/restaurant in a motorway service area/petrol station, by demographics, December 2013 ...................... 110 Figure 44: Next most popular reasons for visiting in-store and transport hub catering outlets – Café/restaurant in a motorway service area/petrol station, by demographics, December 2013 ...................... 112 Figure 45: Most popular reasons for visiting in-store and transport hub catering outlets – Café/restaurant at a train station, by demographics, December 2013 ............................................................ 113 Figure 46: Next most popular reasons for visiting in-store and transport hub catering outlets – Café/restaurant at a train station, by demographics, December 2013 ............................................................ 115

APPENDIX – ATTITUDES TOWARDS IN-STORE AND TRANSPORT HUB CATERING OUTLETS ............................................................................................................................................ 117

Figure 47: Attitudes towards in-store and transport hub catering, December 2013 ......................................... 117 Figure 48: Most popular attitudes towards in-store and transport hub catering, by demographics, December 2013 .............................................................................................................................................. 118 Figure 49: Next most popular attitudes towards in-store and transport hub catering, by demographics, December 2013 .............................................................................................................................................. 120

APPENDIX – INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS ............................................................................................................................................ 123

Figure 50: Interest in products/services at supermarket catering outlets, any interest, December 2013 ......... 123 Figure 51: Interest in products/services at supermarket catering outlets, December 2013 ............................. 123 Figure 52: Interest in products/services at supermarket catering outlets – Lower-cost snacks, by demographics, December 2013 ...................................................................................................................... 124 Figure 53: Interest in products/services at supermarket catering outlets – Made to order food, by demographics, December 2013 ...................................................................................................................... 126 Figure 54: Interest in products/services at supermarket catering outlets – More comfortable seating areas, by demographics, December 2013 ...................................................................................................... 128 Figure 55: Interest in products/services at supermarket catering outlets – Quick to eat, convenient savoury snacks, by demographics, December 2013 ....................................................................................... 129 Figure 56: Interest in products/services at supermarket catering outlets – A coffee shop/restaurant more clearly separated from the shop, by demographics, December 2013 .................................................... 131 Figure 57: Interest in products/services at supermarket catering outlets – Wider range of breakfast items, by demographics, December 2013....................................................................................................... 133 Figure 58: Interest in products/services at supermarket catering outlets – Coffee/hot drinks to take away, by demographics, December 2013 ....................................................................................................... 135 Figure 59: Interest in products/services at supermarket catering outlets – Grab and go hot food, by demographics, December 2013 ...................................................................................................................... 137 Figure 60: Interest in products/services at supermarket catering outlets – Well known/high street coffee shop/restaurant brand, by demographics, December 2013 ............................................................................ 138 Figure 61: Interest in products/services at supermarket catering outlets – Being able to take hot drinks around the store while you shop, by demographics, December 2013 ............................................................. 140 Figure 62: Interest in products/services at supermarket catering outlets – Coffee vendor in car park/outside café/restaurant, by demographics, December 2013 ................................................................... 142 Figure 63: Interest in products/services at supermarket catering outlets – Table waiter service, by demographics, December 2013 ...................................................................................................................... 143

APPENDIX – VENDING MACHINE USAGE ...................................................................................... 146

Figure 64: Vending machine usage, December 2013 ..................................................................................... 146 Figure 65: Vending machine usage, by demographics, December 2013 ........................................................ 146

Attitudes towards vending machines .......................................................................................... 148 Figure 66: Attitudes towards vending machines, December 2013 .................................................................. 148 Figure 67: Most popular attitudes towards vending machines, by demographics, December 2013 ................ 148 Figure 68: Next most popular attitudes towards vending machines, by demographics, December 2013 ........ 150


© Mintel Group Ltd. All rights reserved. vii

APPENDIX – SELF-SERVICE MACHINE USAGE ............................................................................ 153

Figure 69: Self-service machine usage, December 2013................................................................................ 153 Figure 70: Self-service machine usage, by demographics, December 2013................................................... 153

Attitudes towards self-service machines ..................................................................................... 155 Figure 71: Attitudes towards self-service machines, December 2013 ............................................................. 155 Figure 72: Attitudes towards self-service machines, by demographics, December 2013 ................................ 156

UK RESEARCH METHODOLOGY ..................................................................................................... 160

Consumer research .................................................................................................................... 160 Sampling and weighting.................................................................................................................................. 160 Definitions ....................................................................................................................................................... 162 Qualitative Research ...................................................................................................................................... 164

Trade research ............................................................................................................................ 164 Informal .......................................................................................................................................................... 164 Formal ............................................................................................................................................................ 164 Desk research ................................................................................................................................................ 164

Statistical Forecasting ................................................................................................................. 165 European Research Methodology .............................................................................................. 167

Introduction Non High Street Foodservice Trends UK, March 2014

© Mintel Group Ltd. All rights reserved. 8

Introduction With the future of the high street uncertain, it is increasingly common for restaurant brands to

target alternative distribution channels with higher footfall such as shopping centres and transport

hubs. Brands such as Wasabi and Patisserie Valerie have pursued this strategy by launching outlets in

train stations with particular vigour in recent years.

This is also the case for sectors such as coffee shops, which have explored vending machines and

drive-through formats partially in response to fears of saturation in the traditional coffee shop market.

Costa also partnered with a garden centre group in 2013 to extend its presence in this sector and reach

older consumers.

This report will also examine renewed investment in in-store catering, for example by Tesco and John

Lewis. Mothercare is also rolling out cafés, whilst B&Q is reportedly also looking into buying a small

business to integrate into its stores as Tesco did with Giraffe.

Definition

This is an issue-based report, which will discuss the trends currently affecting and the consumer usage

of attitudes with regards to sales channels such as foodservice outlets in transport hubs, drive-throughs,

shopping centres, airports, and in-store channels (department stores, garden centres etc) etc.

Abbreviations GCG Garden Centre Group H+H Harris + Hoole M&S Marks & Spencer MSA Motorway Service Area RPI Retail Prices Index TfL Transport for London TRG The Restaurant Group

Executive Summary Non High Street Foodservice Trends UK, March 2014


Executive Summary “In order to grow revenues in the face of an increasingly competitive eating out market, and with

the continuing uncertainty about high street footfall, operators are exploring additional

distribution channels where footfall is more guaranteed such as supermarkets, shopping centres,

motorway service areas and train stations.”

– Helena Spicer, Senior Foodservice Analyst

Market drivers

Although the eating out market is set for steady growth, this is largely expected to be fueled by

inflation rather than underlying growth in consumer demand. As such, in recent years operators have

been looking to additional distribution channels to drive growth and make it easier or consumers to

choose their brand and therefore grow the brand’s market share.

Supermarket foodservice offering

Supermarkets are putting increased focus on foodservice provision, particularly within their larger

stores, as they look to utilise the store space and drive footfall and provide additional reasons to visit at

out of town locations.

As well as developing their own in-house concepts such as Tesco’s Decks brand, supermarkets are

also leveraging the trust already engendered amongst consumers by well-known high street restaurant

brands (such as Costa Coffee and Giraffe) to address concerns about quality and value for money.

For example, Tesco acquired the family-friendly restaurant chain Giraffe in March 2013 in a deal

worth £48.6 million. The grocery giant also invested in a 49% stake in the new high street Harris +

Hoole coffee shop chain in 2012, with the first Harris + Hoole outlet opening within a Tesco store in

early 2013. In December 2013 it was reported that Tesco was in talks to follow a similar investment

model with a sandwich chain brand, although this is yet to be confirmed.

Airport foodservice offering

Wavering passenger numbers in recent years have pushed airport caterers to look to maximise the

opportunity from existing footfall by improving the catering offers in these locations. To counteract

consumer concerns of airport catering being expensive and poor quality, many airports have been

overhauling their range of outlets.

A number of operators such as Caffè Nero, EAT and YO! Sushi have launched innovative new

concept stores in these locations, with new services such as pre-ordering takeaways for a flight,

technological capabilities such as self-service tills, multilingual information points, digital menu

boards and more experiential elements such as staging live music performances.

Motorway service stations/roadside catering

The roadside catering market has benefited from the economic downturn bolstering interest in breaks

in the UK, although growth in the domestic holiday market has slowed from its peak during the

staycation trend of 2009. The related increase in footfall levels has made roadside catering increasingly

attractive for many foodservice operators, with brands such as Domino’s and Greggs exploring these

opportunities.



JD Wetherspoon has also opened its first service station pub in January 2014 at the M40 Beaconsfield

Services, with service area operator Extra. At the end of 2013 it was reported that Nando’s was in talks

with Extra to open an outlet next to Wetherspoon’s new roadside pub. Like airports, motorway service

areas (MSAs) have looked to established brands to provide consumers with assurance on price and

quality.

Train stations

Rail travel continues to be a growth area in terms of mode of transport in the UK, with passenger

kilometres travelled on railways growing by 14.6% between 2008/09 and 2012/13, the related growth

in footfall making train stations more attractive for foodservice operators.

For example, Fuller’s, the pub company, announced plans to develop more pubs in transport hubs such

as railway and underground stations as well as airports in December 2013. The brand opened The

Parcel Yard at the revamped King’s Cross Station in 2012, which the company has said is the highest

performer of the group.

Whilst venues such as pubs should appeal to the 29% of train station catering users looking to kill

time, other outlet launches at travel hubs tend to be more grab and go orientated. For example,

following the success of SSP brand Nam-Po! at London’s Euston railway station, the Pan Asian brand

is also planning to open in the city’s Paddington Station. Its on-the-go format features hot food, as well

as sushi.

Treat concepts are also looking to gain traction in this market. For example, Patisserie Valerie secured

seven former Paul sites across London train stations such as Euston, Paddington, Marylebone, St

Pancras and Victoria in 2013, following the launch of its first train station site at King’s Cross in 2012.



The consumer

In-store and transport hub catering outlets visited FIGURE 1: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED, BY USAGE AT LEAST A FEW TIMES A MONTH, DECEMBER 2013

“How often have you visited a café/restaurant at each of the following locations, to buy food and/or drink for immediate consumption in the last 12 months? Please select one answer for each location.”

Base: 2,000 internet users aged 16+

SOURCE: GMI/MINTEL

Supermarket cafés/restaurants dominate the in-store catering market in terms of usage, supported by

the high frequency of visits to grocery stores. Shopping centre cafés/restaurants come second in terms

of usage.

Venues which consumers visit less regularly, such as airports, naturally see lower overall usage of

their catering outlets. However, the in-store catering market arguably remains undeveloped at present

in sectors such as DIY stores, which may benefit from adding more dynamic catering options to

increase dwell time.

Usage of the majority of these in-store venues is biased towards men, those aged 25-34, those with

children aged 0-9 in the household, and Londoners.



Reasons for using in-store and transport hub catering outlets FIGURE 2: REASONS FOR VISITING IN-STORE AND TRANSPORT HUB CATERING OUTLETS, DECEMBER 2013

“Which, if any, of the following describe the main reasons why you choose to visit cafés/restaurants at each of the following locations? Please select all that apply per location.”

Base: internet users aged 16+ who have visited a café/restaurant at one or more of these locations in the last 12 months Supermarket

café/restaurant Café/restaurant in a department/

variety store

Café/restaurant in a motorway service area/petrol station

Café/restaurant at a train station

Sample size 1,111 1,049 1,021 925 % % % %

To grab a quick drink/bite to eat

44 35 44 40

For a treat 24 26 10 9 As a last resort 11 7 17 11 To relax and unwind 23 26 19 10 To take advantage of promotional deals

9 10 7 6

To kill time 16 11 9 29 The food outlet(s) look inviting 10 9 7 7 The food/drink looks appealing 12 13 7 7 None of these 10 10 10 10 SOURCE: GMI/MINTEL

Men are the most likely to say that they use venues such as cafés in supermarkets, department stores

and train stations to kill time. In contrast, women and those aged 55+ are more likely to use in-store

and travel hub venues to grab a quick bite.

Hot grab and go concepts should work well in supermarkets given that the most popular reason to use

these venues is to grab a quick bite/drink. Consumer research for this report further shows

considerable demand for IKEA-style catering approaches, with 82% of supermarket catering users

stating their interest in low-cost snacks such as hotdogs for £1, with 33% very interested in this

concept. This should arguably allow operators to capitalise on the impulse-led mentality of the core

25-34 users and parents of young children, more likely than average to note eating at these venues if

the food/drinks look appealing.

Despite the image of department store shopping as a leisure activity, only a quarter of users have

visited the in-store catering venues for a treat or to relax. Simple initiatives such as visual cues in other

parts of the store, positioning the in-store catering as part of the leisure experience, could help

operators to more effectively capitalise on this mentality.

Speed of service is crucial in the MSA arena, where nearly half (44%) of users are looking to grab a

quick bite. As such, fast service payment concepts are also important to this sector.

The catering services at train stations face contrasting demands, with 40% of users looking to grab a

quick bite whilst 29% are looking to kill time. Vendors such as Giraffe are already launching tailored

concepts in an attempt to target these consumer groups with varying needs more specifically, eg

through its Giraffe Stop and Giraffe Kiosk outlets.



Attitudes towards in-store and transport hub catering outlets FIGURE 3: ATTITUDES TOWARDS IN-STORE AND TRANSPORT HUB CATERING, DECEMBER 2013

“Still thinking about visiting cafés/restaurants located within stores (eg supermarkets, department stores), shopping centres, motorway service areas/petrol stations, train stations or airports. Which, if any, of the following statements do you agree with? Please select all that apply.”

Base: 1,600 internet users aged 16+ who have visited a café/restaurant at one or more of the locations in the last 12 months

13

12

13

13

16

17

18

20

21

23

27

38

0 5 10 15 20 25 30 35 40

None of these

I often forget cafés/restaurants in these locations are there

It’s worth paying more for food/drink from brands I know and

trust

I look for something different from what I usually eat/drink when

visiting these outlets

Smaller brands tend to offer a more appealing range of products

than some of the bigger chains

I prefer outlets offering local products

It’s quicker/easier to use a national chain’s outlet because I know

the product range

I prefer small brands because they’re better value for money than

national chains (eg Costa Coffee)

I’m more likely to buy food/drink from a brand I know (eg Costa

Coffee) than an unfamiliar one

I prefer to use large chains (eg Starbucks, Costa, McDonald's etc)

because I know what to expect in terms of quality

Unclean tables/facilities have put me off visiting an outlet in these

locations

I avoid buying food/drink at locations such as motorway servicestations/airports etc because it is so expensive

%

SOURCE: GMI/MINTEL

Consumers’ familiarity with their product range and service help bolster the appeal of nationwide

brands in these non-high street locations. However, few consumers are willing to pay a premium for

such assurances.

A pricey image continues to dog the in-store/travel hub catering market, with four in ten users stating

that they avoid buying food/drink at locations such as MSAs/ airports because they view it as

expensive. Brands therefore need to reassure consumers that prices in these locations are not different

from those found in the rest of their estate, where applicable. Alternatively, brands could look to

readdress the value for money perception at these sites by adding a more experiential element. This

could include using these sites as testing ground for new concepts to help improve the value

perception.

Local/regional products can help operators engage with older consumers in non-high street locations

with around 17% of users preferring outlets which sell local products, rising to 22% amongst those

aged 65+.



Meanwhile, making use of technological advancements such as GPS tracking and more sophisticated

vending options could increase the appeal of catering in these areas among younger consumers, and

help reduce lost revenue from the 12% of users who often forget the outlets are there. For example,

sandwich shop EAT has signed up to trial iBeacon technology, an Apple creation which aims to

“push” tailored messages to a customer’s smartphone when they enter their shops.

Interest in products/services at supermarket catering outlets FIGURE 4: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS, ANY INTEREST, DECEMBER 2013

“Which of the following products/services, if any, would you be interested in using at a café/restaurant in a supermarket? Please select one answer per row.”

Base: 1,111 internet users aged 16+ who have visited a café/restaurant in a supermarket in the last 12 months

50

50

55

64

65

67

67

68

70

75

77

82

0 10 20 30 40 50 60 70 80 90

Coffee vendor in car park/outside café/restaurant

Table waiter service

Being able to take hot drinks (eg in takeaway cups) around thestore while you shop

Well known/high street coffee shop/restaurant brand (eg PizzaExpress)

Grab and go hot food (eg hot sandwiches, chips, portable

porridge)

Wider range of breakfast items (eg pancake stacks)

Coffee/hot drinks to take away

A coffee shop/restaurant more clearly separated from the shop

(eg separate entrance)

Quick to eat, convenient savoury snacks (eg sausage rolls, pizza

slices)

More comfortable seating areas (eg sofas)

Made to order food (eg sandwiches, salads)

Lower-cost snacks (eg £1 coffee, £1 hot dog)

%

SOURCE: GMI/MINTEL

Supermarket catering operators face diverse demands, from convenience-driven products to more

leisure-focused dining occasions. For example, lower-cost snacks (such as £1 coffee or hot dogs) and

made to order food (eg sandwiches or salads) top the list of catering enticements that users would be

likely to use at supermarkets, with four in five at least somewhat interested. Meanwhile, interest in

improvements to cafés which would cater to the more leisurely consumer are also evident, with three

quarters (75%) of supermarket catering users interested in more comfortable seating areas (eg sofas)

and 22% very interested in these improvements.

This suggests a need for a greater range of tailored concepts in-store or “zones”, rather than a one-size-

fits-all approach to in-store catering.

Use of vending machines and self-service machines



FIGURE 5: USE OF VENDING MACHINES AND SELF-SERVICE MACHINES IN THE LAST 12 MONTHS, DECEMBER 2013

“Have you bought food/drink from a vending machine (pre-packaged products eg chocolates, bottled drinks) or self-service machine (eg freshly made/made to order coffee) in the last 12 months?”


32

34

62

57

5

9

Self-service machine (freshly made/made to order coffee)

Vending machine (pre-packaged products eg chocolates, bottleddrinks)

%

Yes No Can’t remember/don’t know

SOURCE: GMI/MINTEL

A third of UK adults have used a vending machine in the last 12 months, and an equal share have used

self-service machine with usage peaking amongst men, students, those aged 16-34 and people living in

urban locations.

Consumers’ relatively limited vending experience at present may be leading four in ten UK adults to

view these machines as last resort purchases only. However, 15% of adults say they’d be more likely

to use vending machines if they sold more varied food/drink choices or healthier options.

Self-service machines are becoming more prevalent as operators such as Costa Coffee continue to

develop these in order to reach distribution channels such as universities, hospitals, offices and

motorway service areas. Design developments are enabling coffee shop brands to extend their reach

further into non-high street locations. For instance, Costa Coffee now operates two types of self-

service coffee machine; a larger more eye-catching unit for use in channels such as motorway service

areas and petrol stations, and a smaller, more discreet machine designed for environments such as

offices, hospitals and universities.



Attitudes towards self-service machines FIGURE 6: ATTITUDES TOWARDS SELF-SERVICE MACHINES, DECEMBER 2013

“Still thinking about buying food/drink from self-service machines (eg freshly made/made to order coffee), which of the following statements, if any, do you agree with? Please select all that apply.”


44

16

16

20

20

0 5 10 15 20 25 30 35 40 45 50

None of these

I don’t trust self-service hot drinks machines to be hygienic

I’d be interested in self-service drinks machines which offer

made to order drinks (eg lemonade with raspberry, latte with

vanilla)

I’d be more likely to buy fresh food/drinks (eg coffee) from a

from a self-service machine from a well-known brand (eg Costa

Coffee, Nescafe)

I would rather buy food/drink products from a mobile vendor

(eg a coffee kart) than a self-service machine)

%

SOURCE: GMI/MINTEL

With value for money very much a top consumer concern, the reassurance offered by brands can

support sales in the self-service market: a fifth of UK adults state that they’d be more likely to buy

fresh foods/drinks (eg coffee) from a self-service machine from a well-known brand (eg Costa Coffee,

Nescafé), with Costa currently the front-runner in this area.

Opportunities also exist to use mobile operators (such as food trucks or karts) to bridge the gap

between brick and mortar coffee shop outlets and machine vending concepts, as nearly a fifth of UK

adults state that they’d rather buy food/drink from a mobile vendor (eg a coffee kart) than a self-

service machine.



Attitudes towards vending machines FIGURE 7: ATTITUDES TOWARDS VENDING MACHINES, DECEMBER 2013

“Still thinking about buying food/drink from vending machines (pre-packaged products eg chocolates, bottled drinks), which of the following statements, if any, do you agree with? Please select all that apply.”


30

13

14

15

15

15

18

38

0 5 10 15 20 25 30 35 40

None of these

Vending machines should offer mobile phone or credit/debit card

payment

I would be more likely to use vending machines if it saved me

time queuing in stores

I would be willing to buy sandwiches/fruit/bakery items from a

vending machine if it was restocked daily

I would use vending machines more if they stocked healthier

products

I would be more likely to use vending machines if they sold

new/more varied food/drink choices

Concerns about food quality do/would put me off buying fresh

food (eg sandwiches) from vending machines

I only tend to use vending machines as a last resort

%

SOURCE: GMI/MINTEL

Poor quality perceptions will need to be addressed by vending machine operators in order to widen

their use in the eating out market, with nearly a fifth (18%) of UK adults deterred from purchasing

fresh food (eg sandwiches) from vending machines by concerns over the food quality.

Offering users more transparent information could help operators to address these, such as on the

temperature maintained by the vending machine, the best before dates of products, or – in high footfall

locations where regular servicing is feasible – the frequency of re-stocking fresh foods. For example,

clear signage detailing when the machine was stocked should appeal to the 15% of adults who state

that they would be willing to buy sandwiches/fruit/bakery items from a vending machine if it was

restocked daily.

If these concerns were addressed, operators have the potential to target the 15% of adults who would

be likely to use vending machines that stocked more varied food/drink ranges.



What we think

Foodservice operators are likely to continue to expand into additional distribution channels as they

look to increase their share of the leisure pound. Consequently, brands should benefit from further

investment in concept experimentation and develop differing formats in order to best meet the needs of

each location; be it big and bold concepts to grab the attention of drivers in motorway service areas, or

more discreet units to fit into areas such as hospitals and offices.

The varying levels of success of some operators’ attempts to enter different marketplaces from in-store

catering to non-traditional locations, however, show that moving beyond the high street in itself is not

a panacea for every player in the market. For example, Domino’s trial outlet in a Tesco’s superstore in

Dudley, launched in 2011, was closed the following year, whereas the brand has been looking increase

its takeaway offer on motorways, rolling out six new outlets in Extra service stations from August

2013.

It is also evident that foodservice operators and consumers alike are increasingly open to more

innovative service formats such as pop-ups and street food markets, especially in high footfall areas

such as shopping centres, creating another dynamic in the eating out market. Think of examples such

as Trinity Kitchen in Leeds Trinity Shopping Centre which has modernised its take on a traditional

food hall concept by incorporating five food stalls for emerging food brands rotated on a monthly

basis.

Market Drivers Non High Street Foodservice Trends UK, March 2014


Market Drivers

Key points

Consumers’ cautious approach to spending is ongoing in the face of continued pressures on

household budgets, with saving for a rainy day the top consumer spending priority after

bills.

In light of this, operators are continuing to look to additional distributional channels to drive

growth, resulting in corresponding development of niche areas such as drive through

concepts, as brands look to make it increasingly easy for consumers to choose their brand.

There has been much debate around the idea of the “future of the high street”, with the role

of foodservice operators one strategy that is being pushed in an attempt to increase the

reasons for consumers to visit these locations in the face of rising online shopping habits.

However, wavering levels of footfall mean that high streets are not necessarily the most

attractive locations for foodservice operators, with many retailers and foodservice operators

looking instead to areas with more guaranteed footfall, such as travel hubs and

supermarkets.

Consumer spending priorities FIGURE 8: CONSUMER SPENDING PRIORITIES (AFTER BILLS), DINING OUT, NOVEMBER 2009- JANUARY 2014 Base: 2,000 internet users aged 16+

0

5

10

15

20

25

30

35

40

45

%

Dining out

SOURCE: GMI/MINTEL



Consumers generally remain committed to dining out as a key area of discretionary spending, with

waning enthusiasm at the start of 2014 likely to be partially attributable to the extreme weather such as

flooding experienced by many areas of the country, combined with natural seasonal drops in dining

out after the festive period.

However, the category risks losing share of secondary expenditure, with cautious attitudes driving

people to choose saving for a rainy day as their top spending priority after bills.

FIGURE 9: SELECTED CONSUMER SPENDING PRIORITIES (AFTER BILLS), JANUARY 2011- JANUARY 2014 Base: 2,000 internet users aged 16+

0

5

10

15

20

25

30

35

40

Jan-11 Jan-12 Jan-13 Jan-14

%

Dining out Going out (eg cinema etc)

Small “extras” for family members Savings account/emergency/rainy day fund

Food/drink at home for a “special” occasion

SOURCE: GMI/MINTEL



Eating out market FIGURE 10: UK EATING OUT MARKET SIZE AND FORECAST, 2008-18

SOURCE: MINTEL’S EATING OUT REVIEW – UK, JUNE 2013

Although the eating out market is expected to achieve modest growth going forward, this is expected

to be largely inflation-driven rather than due to increases in underlying consumer demand.

Furthermore, despite considerable improvements in consumer confidence in 2013, the eating out

market still has to contend with household incomes being squeezed. As such, the highly competitive

nature of the eating out market has been driving brands to look to additional distribution channels such

as motorway service areas, supermarkets and train stations in a bid to make it increasingly convenient

for consumers to choose their brand and to increase sales by creating new revenue streams.

Drive-through concepts

The expansion of drive through concepts is another indication of this strategy of widening the brand

presence, with recent examples in this area including:

Whitbread announced in summer 2013 plans to grow its high performing 10-strong Costa Coffee

Drive-Thru estate to around 70 to 80 outlets as it looks to new markets to drive sales growth. As

part of these plans, Costa is due to open a drive through outlet at Five Ways, Edgbaston,

Birmingham in summer 2014. It has also signed leases on six out-of-town stores at retail parks for

additional coffee shops under a new-format drive-through store first trialled at Meadowhall in

Sheffield. A drive-through branch at the Railway Triangle was also given the green light in early

2014, marking the 12th Costa outlet in Gloucester.

Starbucks continues to open new drive-through formats following its announcement in 2011 to add

a further 200 units in the UK going forward, including a deal with Euro Garages to open 100 new

stores at its petrol stations over the following five years. Recent openings include a new24-hour

drive-through outlet in Milton Keynes in March 2014.



Meanwhile, KFC opened its drive-through format at a motorway service area at Welcome Break’s

Cardiff Gate at the end of 2013. Seven more Starbucks Drive Thru outlets are due to open across

Welcome Break sites in the first few months of 2014.

Dunkin’ Donuts aims to open 1,000 UK sites as part of its long-term plan, with 15 of the 150

openings planned for the next five years designated as drive-through sites.

Independent concepts have also emerged, eg Coffee Drive in Edinburgh describes itself as

“Scotland’s only independent drive-through coffee shop”. The concept launched in October 2013,

serving a range of hot and cold drinks as well as savoury hot snacks such as bacon rolls, filled

croissants, sausage rolls and pies and other snacks and confectionary such as crisps, popcorn,

porridge bars and biscuits.

In February 2014 it was reported that Muzz Buzz, the 55-strong drive-thru coffee concept from

Australia, had signed a franchise agreement with a UK company in the UK to bring the brand here.

University campuses

Chains are also looking to other consumer categories more specifically to drive growth, with high

footfall locations such as university campuses particularly appealing for fast food and fast casual

brands.

For example, Subway signed a franchise deal with Sodexo in July 2013 as part of the contract caterer’s

attempt to introduce high street brands into high-volume sites such as universities, hospitals and

military locations. Other similar “fresh fast food concepts” have also been looking to enter the

university catering market. For instance, in 2014 the four-strong Hummus Bros is also looking to

university locations to help drive its expansion plans. The brand extended its series of pop-up sites

including pitches at City University, Roehampton University and Middlesex University, all in London,

in March 2014.

Wrapchic (an Indian burrito concept) expanded over 2013, also opening on a number of university

campuses including Coventry, Leicester, Roehampton and Middlesex. Other high street brand names

looking to enter this market include Domino’s, which launched a trial site in Newcastle University’s

student union in autumn 2013, with the brand also increasing its presence in other high footfall arenas

such as sports stadia in recent years. Brand assurances appeal to students, with nearly a third stating

that they’d be more likely to use on-campus catering if it included outlets such as Costa Coffee,

Greggs and Subway. See Mintel’s Contract Catering – UK, September 2013 for more details.

High street concerns

The changing face of retail poses a threat to the high street

The rise of online shopping has put pressure on the high street as a whole as well as on particular retail

segments, such as specialist music and video retailers. Meanwhile, young consumers aged 16-24 are

increasingly buying more clothes online than in-store, according to Mintel’s Fashion Online – UK,

August 2013.This has pushed bricks and mortar retailers towards adding different dimensions or

complementary services to create added reasons for visiting stores, as a direct response to these shifts

in consumer shopping habits.

http://oxygen.mintel.com/sinatra/oxygen/display/679021/display/id=54691




Concerns over footfall levels on UK high streets are also driving foodservice operators to look to new

selling channels. For example, McDonald’s shut several high street outlets towards the end of 2013,

including the restaurants on high streets in Scunthorpe, Dunfermline and Hampstead. Meanwhile,

Marks & Spencer announced in October 2013 that it plans to open 150 M&S Simply Food stores over

a three-year period, with half of these openings expected to be franchised in non-traditional locations

such as motorway service areas, train stations, airports and hospitals. The company has partnerships

with BP, SSP and Moto, which operate around 250 stores nationwide.

New initiatives look to re-energise high streets

There has been much debate in recent years over the best way to reinvigorate high street locations.

Controversy has surrounded the different opinions of government advisors such as former Iceland boss

Bill Grimsey, who released his review of the high street in September 2013 and retail guru Mary

Portas’s review in December 2012, whilst Brandon Lewis was appointed the new minister for high

streets in late 2013. From May 2014, he is set to launch a new rescue plan for the high street. This will

incorporate ideas from a number of the earlier plans such as testing the plans in selected locations, in

an approach similar to the Portas Review. Three- to five-year goals will be set to create a more formal

approach to planning following Grimsey’s suggestions for a more business-minded approach to

measuring the success of these rejuvenation strategies.

A number of different strategies have been put forward by stakeholders in “the future of the high

street” over the years as possible solutions to tough tradition conditions on the high street. These have

included reviews to business rates and parking charges as well as considering roles such as greater

community involvement in both town centres as a whole and in individual venues. Some have also

called for less of a retail focus on high streets, with more services such as medical diagnostic services

being added to create more reasons for consumers to visit these locations.

Croydon Council launched a competition in March 2014 designed to help regenerate the area, inviting

new operators to pitch ideas for start-up businesses for a chance to win their share of £7,000

investment to open a pop-up concept. The initiative reportedly follows a successful pop-up shop

programme in 2013.

Meanwhile other reports point to the rising role of foodservice operators such as restaurants, coffee

shops and bars as experience providers on the high street to drive footfall, so that the landscape would

change from being predominantly retail to being more leisure and services focused.

More leisure-focused high streets

Hospitality operators such as McDonald’s, the British Beer and Pub Association, Costa Coffee and

Spirit Pub Company were asked by the new minister for high streets, Brandon Lewis, to join a

government-backed forum at the end of 2013 to advise ministers on the challenges facing British high

streets and come up with possible solutions.

The Future High Street Forum also secured a new £1 billion support package at the end of 2013 which

included changes to parking policies to help encourage footfall back to high streets. At the start of

2014, a further £8 million initiative was launched, designed to further tackle the decline of the high

street through technological innovations. The Technology Strategy Board planned to hold a

competition for funding to trial innovative ways to attract consumers back to UK high streets as part of

a “re-imagining of the high street”.

This culture of reassessing consumer motivations for visiting high street locations is also arguably

benefiting new, more innovative brands, as landlords look to drive footfall by signing up less

commonly available brands to create a point of difference. Recent moves by some street food traders

to bricks and mortar outlets such as Boom Burger illustrate this.



Changing consumer expectations call for flexibility

Meanwhile, other market developments further indicate changing market conditions for operators in

terms of consumer expectations and footfall drivers. For example, the Trinity Leeds Shopping Centre

opened in March 2013 with a re-imagined food court concept, Trinity Kitchen, following in October

2013. Trinity Kitchen features seven permanent high street food brands also incorporating five food

stalls for emerging food brands rotated on a monthly basis. London-based hotdog seller Big Apple

Hotdogs and Indian street food brand Manjit’s Kitchen are among the temporary operators. SSP’s

Food Court at Manchester Airport takes a similar approach to foodservice leases; The Food Court,

which relaunched in summer 2013, now incorporates a selection of street food pop-up offerings which

change seasonally.

Such innovative approaches tap into the Mintel Inspire trend Experience is All, which describes how

retailers’ over-emphasis on speed, convenience and price has led consumers to crave experience more

than ever. The trend discusses how shopping can be about more than just price or convenience, but

how in recent years globalisation has created something of a monotonous retail experience. Instead,

the opportunity remains to re-engage with consumers via shared retail and leisure destinations (think

of the new hybrid store between coffee shop operator Ca’puccino and newsagent WH Smith which is

due to open at Heathrow Terminal 2.)

Such mixed use locations are already evident in the innovative foodservice offerings at shopping

centres. For example, a number of fledgling London brands have used shopping centres as their

conduit for regional expansion, such as operators like Pho signing a lease at the new Leeds

Trinity shopping centre. Similarly, in early 2014 it was reported that Lakeside shopping centre’s food

court was undergoing redevelopment, with operators such as Wasabi and Rhythm Kitchen signing up

for units, set to widen the breadth of food on offer.

Cinemas are also increasingly being used in shopping centres in order to drive footfall, further

illustrating this more rounded leisure/retail/foodservice approach. For further information on this,

please see Mintel’s Menu Flavours – UK, January 2014.

Issues and Insights Non High Street Foodservice Trends UK, March 2014


Issues and Insights “Concerns over the future of the high street and the mature eating out market have seen operators

attempt to widen distribution channels. High footfall areas such as travel hubs, shopping centres

and university campuses are proving popular choices for operators looking for new opportunities.”

– Helena Spicer, Senior Foodservice Analyst

Capitalising on consumer demand for convenience

The facts

The eating out market is forecast to grow by 11% between 2013-18. However, this growth will be

largely inflation-driven, rather than due to increases in underlying demand.

Concerns over footfall levels on UK high streets are driving foodservice operators to look to new

selling channels.

Brands such as Costa Coffee, Giraffe, Subway and Leon have been particularly active at exploiting

non-high street locations.

Their emphasis is on increasing consumer convenience, tapping into footfall at high volume sites

such as transport hubs, forecourts and supermarkets.

Development of new payment technology can support this trend.

The implications

Consumers feel that their speed of life is increasing, and that their free time is coming under more and

more pressure. This perception, outlined in Mintel’s FSTR HYPR Inspire trend, is leading them to

change the way in which they interact with brands across almost every consumer-facing market.

In the fast food and fast casual dining markets, more agile brands have already started to react to these

changes. Costa Coffee’s roll out of its self-service machine concept, Costa Express, is one example of

the foodservice operators’ strategy of developing alternative concepts in order to target non-high street

locations. Healthy fast food brand Leon is another player which seems keen to explore this strategy; in

order to help facilitate the brands growth outside of London, Leon is said to be focusing on travel hub

sites.

Subway, too, has been active in this strategy of focussing on non-high street/non-traditional locations.

It has partnered with MSA operators such as Welcome Break and forecourt operators like Euro

Garages, signed a franchise deal with Sodexo to help tap into high-volume sites like universities and

hospitals, and has opened franchises within Lidl and Asda supermarkets.

Technological development in the payments market can help consolidate this move towards more

convenient dining options. Starbuck’s mobile app has been hugely successful. In the US, it now

accounts for 14% of in-store transactions, and offers multiple benefits. For customers, it is directly

linked to the company’s loyalty scheme, and the functionality continues to improve to ensure that

using the app is more and more convenient. For Starbucks, it helps cement customer loyalty, and

allows it to collect data on customers’ buying behaviour.



In the UK, Greggs has recently launched a rewards mobile app, whilst it has been reported that both

Giraffe and Subway have been trialling Near Field Communication (NFC) technology in order to send

out ‘daily treat’ deals and giveaways. Adding the ability to pre-order and pre-pay for food to

foodservice apps would be a powerful differentiator, and help build loyalty.

In keeping with such technological developments, the opportunity remains to for foodservice brands to

further utilise vending machines in order to increase their audience reach. For example, in the UK,

Wrapid, a healthy fast food concessions chain, launched a new self-service dispensing system for its

burrito and wrap products which it was trialling at three university sites at the start of 2014. Similar

concepts are operating in the US, including California-based Burritobox vending machines.

There are limitations to vending machine sales. Concerns over the freshness of food offered in vending

machines will also need to be addressed first in order to maximise this opportunity. But if these

concerns are met, there is a substantial market opportunity. 15% of UK adults would be willing to buy

sandwiches/fruit/bakery items from a vending machine if it was restocked daily.

Taken individually, each of these three developments (vending, non-high street locations and mobile

payments) opens up new opportunities. But it’s in combining all three that an operator could create a

genuinely new offering. Brands could take convenience to the next level by offering vending machines

selling high quality food at high-footfall locations, linked to mobile services that make payments

straightforward and frictionless, and that facilitate sophisticated loyalty schemes.

Profiting from high street restaurant brands

The facts

The rise of online shopping has put pressure on retailers. High street operators and those with large

out of town stores are re-investing in in-store catering in order to offer additional reasons to visit.

A number of these rejuvenation plans have involved incorporating high street branded restaurants

into the retail experience, such as Giraffe at Tesco and Mothercare’s Hungry Caterpillar Play Café.

Some 23% of in-store/travel hub users prefer to use large chains (eg Starbucks, Costa, McDonald’s

etc) because they know what to expect in terms of quality.

Some 17% of supermarket catering users are very interested in well-known/high street coffee

shops/restaurant brands (eg PizzaExpress).

The implications

Patisserie Valerie’s new partnership with the clothing retailer Next is the latest in a string of

collaborations, exemplifying how foodservice operators are able to add a leisure element to out-of-

town retail locations. Mintel’s research shows that high street foodservice brands enjoy cautious

consumer interest in the in-store environment, while, importantly, being seen to offer reassurance of

quality.

Other similar collaborations between retailers and foodservice brands are likely to emerge in the

coming years as foodservice brands look to piggy back off of these high footfall venues. Such

partnerships could also work well for department stores and variety stores where around a quarter of

users say they use in-store catering outlets for a treat or to relax and unwind. Among the coffee shops,

Costa for example enjoys a strong image for customer service and high quality, which should allow it

to tap into these occasions effectively.



Operators deciding against such partnerships should still utilise the basic lessons behind such moves.

For example, providing more comfortable dining environments which better reflect consumer

experiences and expectations on the high in terms of dining out of home. Similarly, in-house in-store

catering operations could also benefit from a stronger focus on interior design in order to help create

more engaging, dynamic, eye catching and inviting interiors to drive footfall.

The grab and go opportunity

The facts

Nearly a fifth of adults aged 16+ have used supermarket café/restaurant at least once week/a few

times a month, and 11% have used a department store café/restaurant with the same frequency.

Lower-cost snacks (eg £1 coffee, £1 hot dog) enjoy strong appeal: a third of supermarket catering

users say they would be very interested in such concepts in a supermarket.

Nearly a fifth (18%) of supermarket catering users are very interested in being able to take hot

drinks around the store whilst they shop, whilst 14% are very interested in coffee vendors in the

car park.

The implications

As well as more leisurely in-store catering offers (such as that seen through the Tesco and Giraffe

collaboration), the opportunity also remains for retailers to develop additional revenue streams by

pushing the idea of more grab and go purchases.

By offering low cost ready to eat snacks such as hot sausage rolls, it may be relatively easy for

retailers to tempt consumers to part with their pocket change, therefore appealing to even the more

price sensitive consumer groups.

Furniture retailer IKEA’s strategy of operating fast food outlets serving items such as low cost hot

dogs near their check outs already demonstrates the viability of this concept. Smaller items in a grab

and go format should also appeal to the many shoppers looking to make their visit to the supermarket

as fast as possible.

Tesco’s collaboration with new specialist coffee shop brand Harris + Hoole has also highlighted the

opportunity of providing additional grab and go options to consumers via a mobile coffee cart located

outside the supermarket. This allows customers to purchase a coffee to take away with them in their

car or alternatively purchase it to consume whilst shopping, with cup holders now provided on the

small trolleys at the supermarket.

Trend Application Non High Street Foodservice Trends UK, March 2014


Trend Application Mintel’s approach in this section goes beyond merely identifying trends. We apply trends from

Mintel’s trend tool, Inspire, to understand the wider implications of cultural changes, gaining insight

into how companies and brands can translate these into on-the-ground opportunities relevant for in-

store and travel hub catering.

Trend: Life Hacking

The Mintel Inspire trend Life Hacking describes how consumers are seeking tools to help them perfect

their productivity in an era when they are increasingly time-pressed and stressed. In the foodservice

environment, this often means that consumers have little patience for queuing, pushing operators to

find more efficient methods of service from fast casual formats to technological developments such as

pre-ordering apps.

Big brands benefit from consumers being time-pressed in many respects. For example, nearly a fifth

(18%) of in-store/travel hub catering users agree that it’s quicker/easier to use a national chain’s outlet

because they know the product range.

Meanwhile, opportunities remain for non-branded in-store catering outlets to better meet the needs of

these convenience-led consumers. For example, separate quick service counters for grab and go

products such as hot sandwiches could appeal to the nearly half (44%) of supermarket café/restaurant

visitors who say they’ve used them to grab a quick drink/bite to eat.

Tesco’s collaboration with new specialist coffee shop brand Harris + Hoole has also highlighted the

opportunity of providing additional grab and go options to consumers via a mobile coffee cart located

outside the supermarket. This allows customers to purchase a coffee to take away with them in their

car or alternatively purchase it to consume whilst shopping, with cup holders now provided on the

small trolleys at the supermarket. Nearly a fifth (18%) of supermarket catering users are very

interested in the idea of being able to take hot drinks around the store whilst they shop, whilst 14% are

very interested in coffee vendors in the car park.

Supermarkets could even look to the emerging area of food trucks to widen the range of grab and go

products they can offer customers such as burritos. The time limited nature of food markets and food

truck events could also help add a sense of urgency to purchase for consumers, which is somewhat

lacking at present.

Trend: Many Mes

The Mintel Inspire trend Many Mes describes how consumers are looking for specialisation and

variety to reflect the fact that they are diverse individuals, with multiple identities and niche interests.

The trend advises that marketing approaches need to avoid pigeonholing consumers and instead think

of them as diverse individuals who need to be approached and consulted.

Caterers in travel hubs such as MSAs can use this approach to help elevate diners’ perceptions of

catering in these areas, helping to push it from a last resort to a “want to buy” purchase. For example,

17% of in-store/catering hub users say that they prefer outlets offering local products, rising to 23%

amongst high earners.

Trend Application Non High Street Foodservice Trends UK, March 2014


MSAs’ wide geographical presence suggests that they are well placed to tap into this interest, creating

a sense of uniqueness to their venues by stocking products from the local area. The relative exclusivity

of offering products tailored to that particular location or region is also likely to appeal to the 13% of

in-store/travel hub users who look for something different from what they usually eat/drink when

visiting these outlets.

This approach could be extended to include other merchandise too such as recipe books etc. For

inspiration, operators could look to other areas of popular culture that has already utilised the basic

principles behind this meta-trend. For example, the TV series Jamie and Jimmy’s Friday Night Feast

saw celebrity chef Jamie Oliver and farmer and TV presenter Jimmy Doherty tour Britain with the aim

of trying to revive interest in some of Britain’s niche regional foods such as the Lancashire Tosset cake

and the Huckle My Buff drink from Sussex.

Mintel Futures: Human

The Mintel Inspire Futures trend Human describes how automation is here to stay but that this, in

turn, will elevate human service and artisan goods. The trend suggests companies need to ascertain

which elements of their offering require efficiency or service, or a combination, or choice of both.

The trend above (Many Mes) explored how companies such as MSAs could leverage interest in local

and artisan goods to drive catering sales. Caterers could further tap into this side of the Human trend

by ensuring a heightened sense of customer service in outlets which aren’t mainly convenience-driven

in order to tap into demand for areas to escape to relax and unwind in.

For example, 26% of department/variety store catering users say they visit them to relax and unwind

whilst the same percentage visit these venues as a treat. Increasing the visibility of key workers in-

store could help to re-inject the “human” element into the in-store catering experience here, whilst

holding events such as tastings could help market any individual, local or regional artisan products

being used in-store as well.

Operators looking for less labour-intensive catering options could look to vending machines to provide

additional selling opportunities. For example, 15% of UK adults say they would be willing to buy

sandwiches/fruit/bakery items from a vending machine if it was restocked daily, rising to 22%

amongst those aged 25-34.

Similarly, self-service drinks machines are likely to appeal to the 21% of supermarket catering users

who are very interested in coffee/hot drinks to take away. Offering a customisable drinks element to

these machines could help bolster their usage, with 16% of adults saying that they’d be interested in

self-service drinks machines which offered made to order drinks (eg lemonade with raspberry, latte

with vanilla).

Supermarket Foodservice Offering Non High Street Foodservice Trends UK, March 2014


Supermarket Foodservice Offering

Key points

Supermarkets with large stores are opening branded foodservice concessions within their

stores in order to drive footfall and provide additional reasons to visit at out of town

locations. This has coincided with many high streets coming under pressure, prompting

foodservice brands to consider alternative locations.

Supermarkets can leverage the trust already engendered amongst consumers by well-known

high street restaurant brands to help drive sales by addressing concerns about quality and

value for money.

Meanwhile, the rollout of Tesco’s Decks concept suggests that an approach to in-house

catering which is more reflective of high street trends in terms of both branding and service

is also proving popular.

More convenience-driven concepts (eg Costa Express) are also starting to emerge in the in-

store catering arena within supermarkets as operators become more focused on tapping into

sustained consumer demand for quick products and services.

Overview

A number of coffee shop and fast food brands have been trialling formats in non-traditional locations

as they look to increase sales via alternative distribution channels. Subway has been particularly

notable for following this strategy: it launched its first franchise within a Lidl discount supermarket in

Cromer, Norfolk, in June 2013, and its first within an Asda store in London in November 2013, and is

focusing on non-traditional locations as a key area of growth. Domino’s has also trialled outlets in a

number of non-traditional locations, but with varying success. For example, its trial outlet in a Tesco’s

superstore in Dudley, launched in 2011, was closed the following year.

For supermarkets too, improved in-store catering options have been highlighted as a key area of

growth with the aim of addressing some central industry challenges. For example, large out-of-town

grocery stores have been underperforming as consumers shop more online (for both foods and non-

foods) and also shop more locally, which has also partially been driven by rising fuel prices, according

to Mintel’s Supermarkets: More than Just Food Retailing – UK, November 2013.

As such, major players in this market have been scaling back on large hypermarket store openings and

have instead focused store expansion in the convenience sector, such as Tesco with its smaller Express

stores. However the supermarket giant has also been revamping some of its larger stores with an

increased focus on in-store catering outlets in a bid to drive footfall, most notably incorporating

branded restaurant and coffee shop chains.

Meanwhile, other stores have been taking more of a local approach in order to drive interest in

products and services within bricks and mortar stores. For example, Spar UK opened a farm shop-style

outfit and café in Calver, Derbyshire 2013 using products from regional supplies in the café as well as

on shelves. Waitrose also opened a new farm shop on the Leckford Estate in Hampshire in August

2013 selling produce from suppliers in the local and regional area.



This approach taps into the demand identified in the Mintel Inspire trend Locavore which describes

how consumers have been increasingly questioning the supermarkets’ provision of globally sourced

food, leading them to scrutinise farming and sourcing methods. Meanwhile, research for this report

shows that 17% of in-store/travel hub catering users prefer to use outlets which offer local products.

Retailers could tap into this demand by illustrating both the individual and community-level benefits

of buying local produce. In-store cafés provide an opportunity to for operators to demonstrate how

these ingredients can be used as proof before purchase as well as providing a dining experience in their

own right.

Tesco

In recent years, Tesco has been developing its own improved in-store catering concept, Decks which

runs a breakfast food station, carvery area, pastry area and deli@decks, which offers diners the choice

of a build-their-own sandwich concept featuring a choice of four different fresh breads as well as range

of hot and cold fillings and salad bar.

Tesco has also developed a New York-style deli-diner concept called Fred’s Food Construction which

is due to open at its Tesco Extra Osterley store at the end of March 2014. The concept is due to serve

food to eat in or takeaway and will be accessible both via the store as well as having its own separate

entrance. The main focus of the menu will be sub rolls and sandwiches.

Tesco has established a formal Family Dining Division in the company in 2013. It has also been

acquiring stakes in established foodservice and bakery brands in order to benefit from their experience

in the area.

Using established restaurant brands in-store also enables supermarkets to provide customers with a

sense of quality guarantee, tapping into demand from a fifth (21%) of in-store catering users who state

that they’re more likely to buy food/drink from brands they know.

Tesco acquired the family-friendly restaurant chain Giraffe in March 2013 in a deal worth £48.6

million.

The grocery giant also invested in a 49% stake in the new high street Harris + Hoole coffee shop

chain in 2012 with the first Harris + Hoole outlet opening within a Tesco store in early 2013.

Euphorium Bakery chain opened its first outlet within a Tesco store in late 2012/early 2013.

In December 2013 it was reported that Tesco was in talks to follow a similar investment model

with a sandwich chain brand, although this is yet to be confirmed.

Incorporating a number of these new catering developments, as well as additional technological

shopping developments such as self-scanners, Tesco launched a new “store of the future” at Watford

in August 2013. The newly renovated out of town store was designed to be both a shopping and a

leisure destination.

Tesco has since announced plans to revamp all of its 300 remaining large stores by the end of 2017

following further successful trials to create destination venues in Coventry and Putney as well.



Giraffe

After Tesco’s acquisition of the high street restaurant chain Giraffe in March 2013, the first in-

store outlet was opened in the newly developed Tesco Extra store in Watford, Hertfordshire, in

August 2013. This was followed by a restaurant in the retailer’s flagship Extra store in Cheshunt in

November 2013, and two more in Abingdon, Oxfordshire and Twickenham, London in December.

The restaurants each have their own character, with the Cheshunt site featuring a 10-foot tall

giraffe with both indoor and outside seating for 192 people. Meanwhile, the Abingdon restaurant

features leather booths, while the Twickenham site uses bare wood, glass and plants as interior

elements.

The retailer plans to open 10 Giraffe restaurants within Tesco stores in the 12 months between July

2013 and 2014 to provide more out-of-town dining opportunities, in particular fun, family friendly

options, as well as five outlets on the high street. It is understood that locations planned for 2014

include Inverness, Glasgow, Newcastle and Peterborough.

Giraffe launched a new pop up “pod” concept (a temporary service unit) at the end of February

2014, which is designed for use at locations where it is due to open a restaurant, offering items

such as breakfast, paninis, soups and afternoon tea. The first such concept was launched at the

Tesco Extra site in Wisbech, where a permanent Giraffe outlet is due to open in April 2014.

Harris + Hoole (H+H)

Tesco opened its first in-store boutique coffee shop in a Tesco Metro near London Bridge at the

beginning of 2013. As part of its plans to double the chain in size over the following year, Tesco

has rolled Harris + Hoole shops out in a number of stores including Watford, Osterley and

Guildford, as well as continuing with its standalone stores.

H+H reports to have been inspired by the East London artisanal coffee movement but aims to be

more accessible to meet the demands of a wider audience. As part of its image as an artisanal

coffee brand, H+H changes the method of brewing its coffee (eg water temperature, extraction

time, grams of coffee used) in order to react to the quality of the beans as they age. The stores

display this recipe of “what’s brewing today?” both online and in-store.

The brand also places emphasis on interior design and food/drink presentation in order to highlight

its artisanal positioning and project its authority in producing hand-crafted drinks. For example,

egg timers accompany tea served in-store, allowing customers to steep their drinks for the

recommended time whilst merchandise such as the egg timers and other crockery used in-store is

also available to buy.

Some of the features at H+H’s outlets vary according to the individual requirements of the outlet

concerned. For example, in the H+H outlet in Tesco Extra in Watford, customers are given

beepers to alert them when their coffee is ready, giving an added sense of assurance that they are

being served, whilst ensuring that the serving counter is not overcrowded.

The evolution of this brand in-store in Tesco locations has also led to the operator pushing new

selling approaches. For example, at the revamped Tesco Extra in Watford, H+H operates a mobile

coffee cart to provide Tesco customers with a catering option whilst the in-store catering offer was

being developed, as well as providing an additional sales format after the work was completed.

Linked to this, coffee cup holders were added to small shopping trolleys, further encouraging

customers to purchase on the go coffee to drink whilst they shop, not just as a break or after they

have completed their Tesco shopping.

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The Harris + Hoole chain also operates a mobile app, enabling customers to pre-order coffee on

their smartphone before paying at the till. The app involves creating a profile and details of the

customer’s favourite coffee, so that they can simply select “my usual” on their phone.

For further discussion of this coffee shop brand, please see Mintel’s Coffee Shops – UK, October

2013.

Decks

The launch of a new in-store family carvery brand called Decks in 2013 is further evidence of

Tesco’s redevelopment strategy to convert some of its stores from just a supermarket into a retail

and leisure destination. The restaurant, which is based upon the idea of “real British food”, offers a

variety of foods including salads, roasts (such as beef, pork, and chicken), sandwiches, pastries

and child friendly options and also serves alcohol. Customers help themselves to vegetables and

sides, while trained staff serve food presented on “decks” such as the carving deck, pastry deck

and breakfast deck.

Owned 100% by the new company Tesco Family Dining Limited, the first Decks restaurant

opened in Tesco’s Coventry branch in August 2013 on a trial basis. Following this, Decks were

opened inside the Tesco Extra Newport Spytty, Wales in October and in front of the Tesco Extra

in Broadstairs, Kent in December.

In February 2014 it was announced that the supermarket planned to roll out the concept to a

further three sites in the UK which are thought to be at Tesco Extra locations in Lincoln, Slough

and Bidston Moss.

With the opening of Decks at Newport, the supermarket also leased retail space to the Funky

Monkeys play centre. The soft children’s play area opened in November in a bid to attract families

and help convert the supermarket to an all-encompassing destination.

Waitrose

Waitrose is owned by the department store group John Lewis and currently has around 300 shops in

the UK, with plans to expand by an additional 15 new supermarkets and 10 “little Waitrose”

convenience shops in 2014. Recent in-store catering developments for the brand include:

Waitrose installed coffee machines across its stores without cafés in 2013 for on-the-go customers.

The myWaitrose loyalty card entitles members to a free daily coffee, which doesn’t require

additional in-store purchases. The company reported that it has been serving 1 million cups of

coffee a week.

Waitrose announced a new partnership with Eurostar, the Channel Tunnel railway service

operator, in April 2013 in a deal which saw the supermarket start supplying food and drink to all

Standard class buffet cars across Eurostar’s network.

In July 2013 it was reported that Waitrose was planning to open an in-store restaurant with waiter

service towards the end of 2014. It will serve some food on sale in the supermarket and offer a

different concept from the self-service format offered by many other grocers.



After releasing its annual results in March 2014, Waitrose announced that it was planning on

opening more cafés in the following 12 months with plans to effectively double the number of

cafés in-store from 100 to 200. It also planned to trial further hospitality concepts such as its steak

and oyster bar located at its Canary Wharf store.

Travel Hubs Non High Street Foodservice Trends UK, March 2014


Travel Hubs

Key points

Healthy fast food has been a key trend in the development of catering in travel hubs in

recent years. Operators such as Leon are attempting to sell fresh “real” convenience food to

commuters to help expand its estate outside of the London “bubble”.

Ethnic food and treat providers such as bakery products have been other key trends in this

arena, such as Wasabi and Patisserie Valerie opening outlets at train stations.

Whilst many of the foodservice brands’ developments in the travel hub arena have been

focused on fast service concepts, concepts offering longer dwell time options such as pubs are

also an area of development in areas of high footfall such as travel hubs. For example, JD

Wetherspoon opened the UK’s first pub at a motorway service station in January 2014,

whilst Geronimo Inns is reportedly looking to add sites in airports, railways stations and

shopping centres as well.

Airports

Overview

Mintel estimates that UK consumers took 94.1 million holidays in 2013, up slightly against the

previous year but down 1.9% on 2008 levels according to Mintel’s Holiday Review – UK, January

2014. The report describes how the overseas holiday market suffered considerably during the recession

as squeezed incomes pushed consumers to look to domestic UK breaks instead.

The overseas holiday market has been unsteady since 2009 and has failed to return to pre-recession

levels, although improvements in consumer confidence in 2013 and 2014 should help to bolster the

market going forward. Mintel expects overseas holidays to grow by 13.3% in terms of number of

holidays taken between 2013 and 2018, but this will still be down 10.1% against 2008 levels, as the

market saw a 20.6% decline between 2008 and 2013.

Wavering passenger numbers in recent years have pushed airport caterers to maximise the opportunity

from existing footfall with a focus on enticing and engaging offers such as Jamie’s Italian and YO!

Sushi. Such established brand names are also well placed to address consumer concerns over value for

money in the airport catering market. As part of plans by Manchester Airports Group (MAG) to

redevelop the main terminal building at Stansted Airport, a number of key food/beverage concessions

were put out to tender in November 2013.

To counteract consumer fears of airport catering being expensive and poor quality (see Mintel’s

Airport Catering – UK, February 2010), many airports have been overhauling their range of outlets.

Many operators are looking for a mix of familiar anchor brands and more innovative, interesting

concepts to grab consumer attention. The latter should appeal to the treat mentality of the 19% of those

who ate at airport terminals who state that they felt like they had already started their holiday once

they got to the airport.

Healthy fast food has been another key trend in the development of airport catering in recent years.

This should be well placed to tap into demand from 13% of airport catering users who said they’d buy

more food at the airport if there were more fresh/healthy options available (see Mintel’s Airport

Catering – UK, February 2010).



One of the unique trading conditions in the airport catering arena is the need for brands operating there

to offer all day dining menus, with airports such as Heathrow stating that breakfast is the most popular

dish bought at its venues. With the growing trend for high street brands to target a wider range of

occasions, this should be less of a challenge for brands looking to move into this space going forward.

Gatwick

Gatwick Airport has been revamping both its South and North Terminals in recent years with

foodservice developments including the addition of brands such as Jamie’s Italian, YO! Sushi,

Starbucks and Pret a Manger. For example:

Nando’s is due to open its first airport restaurant with a site in Gatwick South Terminal in summer

2014. The 5,900 sq ft outlet will be open for 20 hours a day from 4am to 12am and serve 200

covers.

The London-based Lebanese fast casual concept, Comptoir Libanais, opened its first airport site

with an outlet at Gatwick’s North Terminal in autumn 2013 in partnership with TRG Concessions.

The brand has since opened a unit at Heathrow’s Terminal 4 development in early 2014.

Heathrow

Since 2003, Heathrow has invested £11 billion in developments such as the construction of Terminal

5, and the refurbishment of Terminals 3 and 4.

Heathrow secured £3 billion private sector investment in February 2013, to continue development

plans at the airport such as the completion of Terminal 2: The Queen’s Terminal in June 2014 as part

of its business plan for Q6 (which is the 6th period of 5 years, from April 2014 -2019).

The new Terminal 2 will eventually serve 20 million passengers each year and as such has been seen

as an attractive proposition for many foodservice providers. In 2012, Heathrow challenged retailers to

respond to six key directions including multi-channel experiences, customised services and an

emphasis on mobile interaction in order to win a contract at Terminal 2. Each unit at Terminal 2

received an average of five proposals, surpassing the tender process for Terminal 5.

Terminal 2 will have 67 outlets in total including shops, bars and restaurants with confirmed

foodservice operators including:

Coffee shops

Caffè Nero is due to open three outlets at Terminal 2 (two in arrivals and one airside). The largest

of the outlets will have a “Farmers Market” area offering products from artisan producers, zoned

seating areas for consumers (ranging from family-friendly private booths to a business hub), a

Roasting Room for coffee as well as an area to stage live music performances, whilst the airside

outlet is due to offer deli food.

Costa Coffee, which already has nine other outlets at Heathrow, is due to open a new £1 million

site at the new airport terminal. New features will include an iPad station for customer use, whilst

zoning interior design techniques will be used to help meet the need of varying consumer groups.

Coffee shop operator Ca’puccino is due to open a hybrid store with neighbouring newsagent outlet

WH Smith at Heathrow Terminal 2. The hybrid space aims to link the two outlets through interior

design such as a “wall of Vogue” (a full wall display of global covers of the magazine), with the

coffee chain stating that it was open to further collaboration with the high street newsagent chain

in future.



Fast casual outlets

The sandwich chain EAT is also due to open a new £1 million concept store at Terminal 2. The

outlet will reportedly be unique for the chain in that the kitchen will be at the heart of the site,

enabling customers to watch food being prepared. The format will also include zoned seating areas

to cater to the different needs of individual customers versus groups etc. Technological capabilities

such as self-service tills, multilingual information points and digital menu boards will also be

incorporated into the design.

Japanese restaurant YO! Sushi is due to launch an innovative new outlet in T2. This will include

the ability to pre-order takeaway food online, as well as servers taking orders for dine-in users via

tablets linked directly to the kitchen for speed of service. The venue will also house new pod

seating areas. In addition to the range of soups, rice, noodle dishes and rolls, the restaurant will

provide a Wellness Menu for passengers going on long-haul flights featuring a number of set

menus designed to aid comfort on the journey with nutritional benefits such as those from omega 3

in sashimi.

Healthy fast food provider Leon has also secured a site at the new Terminal 2 through its

partnership with the Autogrill Group. The 2,600 sq ft restaurant will be the brand’s largest, with

130 covers. It marks the partnership’s second airport opening, following one in Heathrow’s

Terminal 3 in 2012.

Full-service outlets

Heston Blumenthal is due to open a “nostalgic” British restaurant at Terminal 2. It is thought that

the menu will include meals featured in the celebrity chef’s TV series In Search of Perfection,

offering meals such as fish and chips with “some truly British eccentricity thrown in for good

measure.”

Giraffe and The Restaurant Group (TRG) are collaborating on a new venture called Wondertree,

due to launch airside at the terminal. Food will be cooked to order at Wondertree, with the venue

offering both a relaxed dining area as well a speedier self-service café option.

The Gorgeous Kitchen is described as a 120-cover contemporary restaurant at Terminal 2. The

concept was created by four female British TV chefs and will specialise in global cuisine made

with British-grown produce. It will offer A La Carte and Express menu options as well as an

afternoon tea, whilst housing an open theatre kitchen, counter dining and banquette seating.

Tragus Group is to open its third concept restaurant at Heathrow, following Huxleys for Terminal

5 and Oriel Brasserie for Terminal 3. The Parisian brasserie La Salle will open in Terminal 2 in

June 2014, offering simple grilled dishes. Featuring a circular bar with sports and news screens for

more casual dining as well as tables, every menu option is designed to arrive on the table in under

15 minutes according to the company.

Fuller’s is due to open its London’s Pride pub at the new terminal, whilst JD Wetherspoon will

open its sixth pub at Heathrow in the new Terminal 2. As well as offering table service, The Flying

Chariot will feature an open kitchen, deli and coffee area offering quick meals.



Other airport developments

East Midlands Airport unveiled a new food court in February 2014. As part of the wider £12

million terminal redevelopment, the new food court offers outlets such as Burger King, Flat White

coffee shop and Castle Rock Taproom and Kitchen pub-style bar. The new catering outlets are

operated by HMS Host Corporation, owned by Autogrill SpA.

Mitchells & Butlers’ All Bar One brand is looking to enter the airport catering market for the first

time with one outlet opening in the South departure lounge of Birmingham Airport in April 2014

and one in the North landside area which is due to open in June 2014.

Manchester Airport has been using pop-ups to stimulate excitement in its new Food Quarter,

which opened in July 2013. Lasting for three months each, the first pop-up was a Ginger’s

Comfort Emporium ice cream outlet. The new food court is operated by SSP and includes Upper

Crust, The Pastry Shop and Mi Casa Burritos as permanent outlets, the latter created specifically

for travel hubs, as well as the pop-up ventures. A Thornbridge pop-up bar from craft beer

specialists Thornbridge was operating at the venue at the time of writing.

Lola’s Cupcakes was announced as the latest pop-up venture at Terminal 5 by Heathrow and TRG

Concessions in November 2013. The frozen yoghurt vendor Frae has previously operated a pop-up

at the terminal. Heathrow first trialled the pop up area at its airport in 2012 with a two-week

themed pop-up concept based around the idea of an indoor picnic area, with resident restaurant

operators tasked with designing bespoke menus for the trial.

In August 2013, Peruvian restaurant Ceviche teamed up with Virgin Atlantic to boost awareness of

its Soho restaurant. The business opened a pop-up restaurant in the Virgin Atlantic Clubhouse at

London Heathrow for its Upper Class passengers for a week offering Peruvian food and cocktails

over lunchtime such as Don Ceviche and Ensalada de Quinoa.

Motorway service stations/roadside catering

Overview

The roadside catering market has benefited from the economic downturn bolstering interest in breaks

in the UK, although growth in the domestic holiday market has slowed from its peak during the

staycation trend of 2009. Mintel estimates that the domestic holiday market will increase by 6.2%

between 2013 and 2018 in terms of volume, compared to 15.1% growth it experienced between 2008

and 2013.

The related increase in footfall levels has made roadside catering increasingly attractive for many

foodservice operators, with brands such as Domino’s exploring the opportunities within this

distribution channel. As a further example, Greggs first trialled motorway services sites at the end of

December 2011 in partnership with Moto. The brand now operates 24 franchised shops in motorway

service stations in partnership with Moto as well as having franchised shops in collaboration with Euro

Garages Ltd and Welcome Break. Some 70% of Greggs’ new shops were in locations away from high

streets, according to its 2013 annual report.



However, increases in fuel costs have influenced consumers’ willingness to spend on catering in some

areas. For example, “fluctuations in fuel prices have a significant impact on fuel sale volumes and also

an impact on non-fuel sales” according to Roadchef Limited’s annual report for the year to 1 January

2013. In the report, Roadchef stated that 68% of visits to the group’s sites result in a sale, with the

group aiming to increase the conversion rate and spend per customer. Recent investment in the

catering offering at key sites (eg the company opened a number of McDonald’s and Costa Coffee

outlets at sites in recent years) has proven to reduce the level of non-conversion by between 10-15%,

according to Roadchef.

Like airports, Motorway Service Areas (MSA’s) have looked to established brands to provide

consumers with assurance on price and quality. Such moves have also helped operators to mitigate any

declines in traffic volumes on motorways. For example:

Traffic volumes on the motorway network were only marginally down year on year according to

Welcome Break Limited’s Annual Report for the 52 weeks to 29 January 2013. The company also

reported that non-fuel sales grew ahead of the traffic trends, largely as a result of the continued

investment in and development of brands such as Waitrose and Starbucks.

Moto experienced “steady” non-fuel sales, according to its annual report for the 52 weeks to 26

December 2012. Whilst group turnover decreased by 1.7% for the year (compared to a 1.9%

increase in 2011), non-fuel turnover increased by 2.3% (compared to a 1.3% decline in 2011). The

company noted an increase in preference for branded food outlets. Moto has been trialling new

food offers with brands such as Greggs and Harvester in recent years.

Whilst like-for-like fuel sales were comparable to the prior year, shop retail sales grew by 4%, and

fast food like-for-like sales increased by more than 5%, according to Euro Garages’ annual report

for the year ended 31 July 2013. It stated that non-fuel sales had increased by 36% as it continued

to diversify away from being just a fuel retailer.

However, against a backdrop of new competition such as from Waitrose and M&S Simply Food stores

and ever evolving grab and go concepts in MSAs, iconic roadside catering brand Little Chef has

struggled to find its footing. In April 2013 it was put up for sale by owners Rcapital. Since taking over

the brand in 2007 the company has disposed of 70 Little Chef restaurants. For example, Euro Garages

took over the lease of five former Little Chef sites in 2013 with the aim of transforming them into

coffee shops under a licensing deal with Starbucks. Little Chef was bought by the UK arm of Kuwaiti-

owned business Kout Food Group in a deal reported to be worth £15 million in August 2013.

Welcome Break

Welcome Break offers roadside restaurants, fuel, overnight accommodation, shopping, rest areas,

leisure facilities, meeting and conference facilities. The group has been shifting to focus on branded

food and drink operators at its sites, phasing out its in-house Eat In brand. For example, Welcome

Break added a drive-through Starbucks shops at its Warwick South Services on the M40 and a

Starbucks coffee kiosk at Warwick North. Welcome Break also opened Harry Ramsden’s, Subway and

Papa John’s outlets at its Oxford service station on junction 8a on the M40 in February 2014.

Welcome Break intends to invest £15 million over the following two years in converting 14 or 15

of its sites to focus on using brands such as Subway and Harry Ramsden’s, moving away from its

traditional free-flow own-branded cafeterias, according to reports in The Times in late February

2014.

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Papa John’s confirmed in January 2013 its plans to open 11 pizza outlets across the Welcome

Break network, following a successful trial in 2012. It is now expected to roll out across all of

Welcome Break’s 29 sites.

Subway has been focusing heavily on non-high street locations and entered into a partnership with

Welcome Break to build upon this strategy, with outlets at Charnock Richard Services on the M6

and Woodall Services in December 2013. Open 24 hours a day and seven days a week, Subway is

committed to the Government’s Public Health Responsibility Deal and has eliminated trans fats

and cut calories, introducing a Low Fat range of Subs. The fact that Subway’s subs contain one of

the recommended five-a-day, and that it has a Kids’ offering, will help Welcome Break attract

customers looking for healthier options as an alternative to the traditional services food.

Fish and chip shop brand Harry Ramsden’s first partnered with Welcome Break in December 2013

with an outlet at the Woodall services near Sheffield. The expansion of the brand, best known for

its fish and chips, is aimed at broadening its customer base and making it more accessible. Rod

McKie, the Chief Executive of Welcome Break, was quoted as saying the group aimed to roll out

the Harry Ramsden’s and Subway brands across its MSA estate and hoped to rejuvenate the

food/beverage offer further through formats such as drive through sites with Starbucks and KFC.

Welcome Break launched its first drive through KFC site at an outlet in Cardiff Gate in November

2013 whilst its first drive-thru Starbucks sites were launched in 2012. Drive-thru Starbucks outlets

now operate at five Welcome Break locations, with the latest opening at Warwick South services

on the M40 at the beginning of 2014, with more expected going forward.

Extra Motorway Services

Extra Motorway Services provide fuel, food & drink, accommodation, parking and meeting rooms for

road users including coaches and trucks. There are currently nine Extra locations.

JD Wetherspoon opened its first service station pub in January 2014 at the M40 Beaconsfield

services with service area operator Extra. The Hope and Champion serves alcohol between 8am

and 1am, causing concern amongst some commentators that it would tempt travellers to drink-

drive. However, the brand states that it offers an extended range of soft drinks and hot drinks, with

free refills. The pub only stocks beer with an ABV of under 5%, with a range of low- and non-

alcoholic variants available, and does not stock any drinks typically drunk as shots. As such, the

venue states that it appeals strongly to families as it offers an environment suitable to longer dwell

time occasions.

The first pub serving alcohol to open at a motorway service area was a Harvester in collaboration

with Moto at Donington Park in summer 2013.

Noodle Oodle Group’s 35-strong brand Chopstix entered the motorway services sector with

openings at Extra’s Cambridge and Peterborough services in October 2013. This served to extend

Extra’s portfolio of different cuisines and eating options. Extra also grew the range of global

cuisines on offer by its expansion of the El Mexicana brand in locations such as Cambridge,

Baldock, Beaconsfield, Cobham and Peterborough. At El Mexicana, customers choose their basic

format (eg burrito, tacos, nachos, tortilla bowl or salad box) and then customise it with choice of

fillings, salsas and sides.



In a bid to increase its takeaway offer on motorways, Domino’s Pizza rolled out six new outlets in

Extra service stations from August 2013. Providing its high street menu, the new Ready2go kiosk

concept for the brand means that drivers can pick up their pizza quickly. Locations include

Beaconsfield, Blackburn and Peterborough services, with the format being well placed to target

the 44% of those who go to cafés or restaurants in motorway services doing so to grab a quick

drink or bite to eat, as found in the research for this report.

At the end of 2013 it was reported that Nando’s was in talks with Extra to open an outlet next to

the new JD Wetherspoon’s outlet in Beaconsfield.

Euro Garages

Lancashire-based Euro Garages describes itself as in the top three independent forecourts in the UK. It

reported a 36% rise in non-fuel sales in the year to July 2013, from £54 million to £73 million. It stated

that this was driven in part by the expansion of its estate with the addition of 32 new Starbucks’ and 34

Subway stores as it continues to diversify away from being purely a fuel retailer. Other recent

developments from the forecourt operator include:

Euro Garages has rapidly expanded its estate and geographical coverage in recent years to around

180 sites – it acquired 45 Esso Garages in the north of England, Yorkshire and Wales in February

2013 and announced a deal to buy a further 48 Esso petrol station sites in the Midlands and East

Anglia in February 2014.

Through such acquisitions the forecourt operator has also expanded the number of foodservice

operators it works with eg Subway, Starbucks, Greggs and Burger King. In June 2013 Subway and

Euro Garages announced plans to open a further 69 Subway sites across the forecourt retailer’s

estate.

Train stations

Overview

Rail travel continues to be a growth area of transport in the UK with passenger kilometres travelled on

railways growing by 14.6% between 2008/09 and 2012/13, the related growth in footfall making train

stations attractive propositions for foodservice operators.

For example, Fuller’s, the pub company, announced plans to develop more pubs in transport hubs such

as railway and underground stations as well as airports in December 2013. The group’s recent travel

hub launches include The Tap on the Line at Kew Gardens, described as the only pub on a London

Underground platform, which reopened in November 2013. Fuller’s also opened The Parcel Yard at

the revamped King’s Cross Station in 2012, which the company has been quoted as saying is the

highest performer of the group.

Whilst venues such as pubs should appeal to the 29% of train station catering users looking to kill

time, other outlet launches at travel hubs tend to be more grab and go orientated. For example, salad

bar chain Chop’d launched an outlet at St Pancras station in 2013 offering takeaway food including

gourmet salads, soups and wraps. Meanwhile, following the success of SSP brand Nam-Po! at London

Euston railway station, the Pan Asian brand is also planning to open in the city’s Paddington Station.

Its on-the-go format food includes hot food as well as sushi.



Treat concepts are also looking to gain traction in this market. For example, Patisserie Valerie secured

seven former Paul sites across London train stations such as Euston, Paddington, Marylebone, St

Pancras and Victoria in 2013, following the launch of its first train station site in King’s Cross in 2012.

FIGURE 11: PASSENGER KILOMETRES ON NATIONAL RAILWAYS, 2008/9-2012/13 Passenger kilometres* (billions)

2008/09 2009/10 2010/11 2011/12 2012/13 % change

All franchised operators: Ordinary fare 35.1 36.4 38.7 41.0 41.9 +19.4 Season ticket 15.5 14.7 15.3 15.9 16.1 +3.9 All tickets 50.6 51.1 54.1 56.9 58.0 +14.6

* Includes franchised chain operators only SOURCE: DEPARTMENT FOR TRANSPORT/MINTEL

Domestic rail travel has also seen a significant increase in recent years, growing by 28% between 2010

and 2012 in terms of number of overnight trips taken in Great Britain, according to Mintel’s Airlines,

UK – July 2013. Train travel therefore increased its market share of overnight tourism from 12.9% to

15.2% over this period, thereby making train stations an increasingly positive prospect for foodservice

operators looking to target such high footfall areas. Adopting similar pricing structures to airlines (eg

booking in advance for cheaper seats) as well as making improvements to the rail infrastructure helped

the sector to compete against other modes of transport. However, rail ticket prices have increased

annually, outpacing increases in RPI (Retail Prices Index), dampening the appeal of rail travel, with

long-distance fares particularly affected, according to Mintel’s Inbound Tourism, UK – November

2013.

London Underground

In late 2013 Transport for London (TfL) announced plans to close the network’s 260 ticket offices by

2015, to be replaced by automatic ticket machines.

London Underground has also discussed a potential plan to incorporate branded coffee shop chains

into tube stations. However, after a 48-hour strike in early February 2014, London Underground

agreed with trade unions to revise its plans for closing all 260 ticket offices on a station-by-station

basis.

In the meantime, other operators are also switching on to the opportunity provided by these high

footfall areas. For example, Lola’s Cupcakes teamed up with TfL to open a cart at Kings Cross St

Pancras Underground station in January 2014. It was reported that the brand was looking to launch

another four carts in various TfL locations over the following six months although no other such travel

sites were listed as store locations at the time of writing.

Independent florist Rockflower also recently opened “the world’s first retail and vending flower

kiosk” at Blackfriars Underground station in early 2014.

Network Rail

In recent years Network Rail has attempted to transform a number of its stations into destinations

(“efficient, iconic hubs”) with improved retail and foodservice brands and services. The company lists

Birmingham New Street, Edinburgh Waverley, Farringdon, King’s Cross, Blackfriars, London Bridge,

Manchester Victoria, Newport, Paddington, Peterborough, Reading and Waterloo as major station

improvement projects.



Recent developments include:

The objectives of the redevelopment at Birmingham New Station include making the new

concourse three and a half times bigger providing more space for passengers as well as creating

additional opportunities for retailers and foodservice providers. The first half of the redevelopment

opened in April 2013 with the project due to be completed in summer 2015. The development has

sparked significant interest from catering brands, with Pho, Tortilla, Tapas Revolution and

Crêpeaffaire among those making their debut in the city. Other brands include Giraffe, YO! Sushi

and Carluccio’s with its largest Birmingham outlet.

In March 2012 the new concourse at London’s King’s Cross station opened featuring new fast

casual formats from the likes of Giraffe (the new Giraffe Stop concept), Prezzo, Leon, Wasabi and

Benito’s Hat. Giraffe is also due to open a new grab and go concept, Giraffe Kiosk, at the station

at the end of March 2014. King’s Cross Square, a 75,000 sq ft public space opened to the public in

September 2013. It aims to further position the station as a destination in its own right and to

“create a whole new vibrant district” according to London Mayor Boris Johnson who helped to

open the final phase of the King’s Cross development.

In 2012 Network Rail also completed work at Waterloo station balcony which aimed to ease

crowding at the station as well as providing an additional 18 retail and foodservice outlet spaces eg

Carluccio’s, YO! Sushi and Benugo Sports Bar and Grill.

London Bridge Station is another development project which aims to help with the regeneration of

the local area (eg through the addition of new shops, restaurants and other facilities), with a

projected completion date of 2018. The plans for the station are to increase passenger capacity by

around two thirds.

The expansion of Reading railway station is seeing the station expand its dining offering with the

opening of a Starbucks, and a Cornish Pasty Co outlet. The new additions will open in April 2014

on the new passenger deck. The station, which is currently run by First Great Western, will be

taken over by Network Rail from spring 2014.

Network Rail aims to target specific lifestyle groups more directly with these revamped stations eg

through local community partnerships such as Glorious Southbank and Team London Bridge, as well

as running targeted events and competitions such as Landscape Photographer of the Year and Glasgow

Jazz Festival. It also attempts to increase brand awareness and push sales through more co-ordinated

marketing campaigns such as “Live at…” campaigns eg those held at Waterloo which market music,

fashion, gifting and food. Social media channels such as Twitter provide an additional platform

through which Network Rail attempts to prompt purchases for everyday occasions as well as events

such as Father’s Day.

Recent financials from Network Rail indicate that venues at train stations tend to perform better than

high street locations, with the company reporting that its overall retail sales for Q4 2013 released in

February 2014 had increased by 7.8% compared to British Retail Consortium figures which mark

growth on the high street as 0.6%. During this period, Network Rail also reported that pubs and bars’

like-for-like sales had increased by 13.9%, whilst dining outlets achieved 14.1% growth in the quarter.

It highlighted high performing brands such as Wasabi (up 19%), Hotel Chocolat (12%), Caffè Nero

and M&S Simply Food (both up 8%) for Q4 2013. Brands such as Leon, Giraffe, Costa, Pret a Manger

and Paperchase were classed as high performers for the three months to the end of June 2013.

Department Stores, Variety Stores & Non High Street Foodservice Trends Clothing Retailers UK, March 2014


Department Stores, Variety Stores & Clothing

Retailers

Key points

As consumers continue to be drawn to online shopping, retailers are looking for ways to

boost the relevance of bricks and mortar outlets. Catering is one avenue being explored to

increase the leisure element of shopping in-store, although it is evident that consumer

expectations of in-store café provisions have increased, with operators needing to better

reflect high street trends.

For foodservice brands, collaborating with retailers enables them to piggyback onto

established footfall, making it an attractive channel for brands looking to expand regionally.

Overview

Retailers are looking to new ways to make the most of the space in their brick and mortar stores,

particularly in larger stores, as consumers are increasingly drawn to shopping online. Consumers are

shopping in a less linear way and are using different channels when they buy from department stores,

according to Mintel’s Department Store Retailing – UK, May 2013. Some 40% of those who have

purchased from a department store prefer to shop online rather than to visit a department store if an

item needs to be delivered, whilst three fifths of shoppers state that they enjoy looking around a

department store, even if they are not planning to make a purchase. The latter highlights the potential

for retailers to use improved foodservice facilities to support footfall, increase dwell time and engender

consumer loyalty.

As part of this, retailers are looking to more inventive ways to use space and foodservice concepts to

drive interest. For example, in summer 2013 it was reported that TK Maxx was trialling a dedicated

food offer at 20 of its sites, called Café Maxx.

Another example of foodservice innovation includes, in early 2014, the launch of a bespoke cocktail

pop-up bar at the high-end department store Selfridges. Located within its Men’s Shoe Gallery, the bar

marked the first anniversary of the department. The small concept is designed to be portable/mobile so

that it can be moved around different locations within the store.

Retailers in other sectors could also look to foodservice concepts to help support footfall and build a

lifestyle positioning. For example, Mintel’s Clothing Retailing – UK, October 2013 describes how

competition faced by clothing retailers has intensified with the growth of online pureplays such as

Asos and non-specialists such as Tesco, pushing retailers to ensure that they have strong USPs and

become more targeted as a result.

In general, however, the clothing retailing sector has held up well in recent years, in turn making it an

attractive one for foodservice brands to explore.

John Lewis

The department store brand reported in December 2013 plans to launch a range of additional services

such as opticians, barbers and post offices in-store in order to create a “high street under one roof”

concept. Linked to this, John Lewis has been investing in new catering offers as part of its strategy to

create more engaging, inspiring in-store experiences in its bricks and mortar venues:



Hotel Chocolat opened its first cocoa bar café concession within a John Lewis store in Edinburgh

in early 2014. An opening is also expected in York.

John Lewis launched its first Joe & The Juice sandwich bar concession (a chain from Copenhagen)

as in its Solihull store in November 2013.

In August 2013 Andy Street, the managing director of John Lewis, told City AM that the company

was looking to improve on its food offer, which it described at the time as “middle of the road”

and not cutting edge enough.

Such moves demonstrate the fact that consumer expectations of in-store café provisions have

increased, with operators needing to better reflect high street trends.

Debenhams

In November 2013, Debenhams unveiled its new Oxford Street flagship store, following a £25 million

refurbishment. The development included seven floors of retail space and three new food outlets; a

“spacious family restaurant” on floor five, café on floor two and bistro located in the shoe department

in the basement level.

The new menu at the restaurant focuses on traditionally British dishes, featuring local and fresh

produce wherever possible in order to appeal to British consumers and tourists alike. For example,

it features a Fish & Chip Shop serving meals such as plaice, cod, fishcakes and scampi with mushy

peas.

The café on the second floor next to the young fashion section is positioned as more relaxed

venue, with a menu including a fish pie, lamb hot pot and sausage rolls. The café features digital

menus to encourage shoppers to stop for a break.

Meanwhile the Bistro in the basement aims to provide a quick and light lunch option for shoppers

and features dishes such as crispy salt & pepper squid and grilled halloumi, almond and courgette

ribbon salad.

BHS

The variety store retailer BHS is expected to further develop its catering offer after the appointment of

Paolo Peretti as its new foodservice director. Peretti’s career history includes head of city operations at

Pret a Manger as well as regional director of SSP.

BHS launched a new grab and go concept as its outlet at the new Trinity Leeds shopping centre in

summer 2013. The menu at Street Kitchen at BHS includes breakfast, lunch and quick snack dishes,

inspired by global cuisines with dishes including British bacon sandwiches and Mexican-style chicken

fajita tortillas as well as fruit smoothies, pastries and a range of hot drinks.

Next

The clothing retailer Next houses branded coffee shop chains such as Costa and Starbucks concessions

in around 34 of its 541 stores. More recently, however, it has also launched a tie-up with Patisserie

Valerie and is apparently looking at further foodservice brand tie-ups:



The first Patisserie Valerie openings in Next stores were at the Gallagher Retail Park in

Cheltenham in late 2013 and two Manchester stores, located at the Manchester Fort Shopping Park

and the Trafford Retail Park. At the end of 2013, Next said it planned to continue with further

rollouts with the patisserie brand.

The expansion into Next stores forms just part of the recent expansion plans of Patisserie Valerie,

which has grown by 50% in the last two years with over 100 outlets. Train stations are another key

area of growth for the brand. The bakery is also reportedly in talks with other retailers for similar

deals.

High street tea shop chain Tea Monkey is reportedly in talks with Next to open franchises in the

stores.

Mothercare

In recent years the maternity wear and children’s products retailer Mothercare has been revamping

stores to provide parents with a more comfortable and efficient shopping experiences by extending the

number of services it offers including café areas. For example, the chain launched its first in-store

Costa Coffee outlet in mid-2012 as well as creating a “mumspace” social space. At the end of 2012, it

was announced that the trial with Costa had been successful and was being rolled out to an additional

20 sites.

More recently, in May 2013 it was reported that Mothercare had announced a partnership with Tea

Monkey to provide the retailer with child-friendly, ethical café areas in a number of its stores, with the

first opening in Leeds. Tea Monkey outlets typically sell 40 different types of tea as well as coffee and

features iPads mounted on the walls for children to play games on.

Other Retail Sectors Non High Street Foodservice Trends UK, March 2014


Other Retail Sectors

Key points

The rise in internet shopping has compounded tough trading conditions for sectors such as

DIY and bookstores, with operators fighting to re-establish the relevance of their bricks and

mortar stores in an increasingly online world.

Meanwhile, like Tesco, the Garden Centre Group is using high street foodservice brands to

drive trade to hard to reach out-of-town locations by creating additional reasons to visit and

emphasising the leisure element of these kind of shopping trips.

Garden centres

Despite the volatility of garden product sales due to the weather, growth prospects for the market

remain positive, bolstered by Britain’s aging population, according to Mintel’s Garden Products

Retailing – UK, July 2013. The fact that specialist garden centres are favoured by those aged 50+ has

helped this sector in recent years given that this age group has been less affected by the economic

turbulence, and as a result spending on this area has held up well in recent years. Garden retailers,

however, still face tough competition from generalist and online sellers and are therefore investing in

improving products and services in order to spread their risks and drive footfall, with in-store catering

providing such opportunities for creating additional reasons to visit.

Garden Centre Group (GCG)

The Garden Centre Group has around 140 sites, 109 of which have restaurants as of January 2014. The

restaurants are positioned as family-friendly with relaxed atmospheres. As well as offering a kids’

menu, children’s parties can also be held at the restaurants and children can use the soft play area.

Costa Coffee partnered with GCG and opened its first concession with the group in Northampton

in August 2013. Costa Coffee also operates outlets at the four outlets of another garden centre

operator, Haskins Garden Centres.

At the same time, GCG announced a tie up with newsagent chain WH Smith at a number of GCG

sites.

In November 2013, Jason Danciger was appointed as Food & Beverage Director at GCG. Having

previously worked at M&S as Head of Hospitality for five years, his experience in being

responsible for over 300 cafés and 80 dining eateries should provide opportunities for GCG to

build upon its portfolio of restaurants and maximise their potential in ensuring that customers

spend more time at its sites.

Tesco/Dobbies

In an effort to help drive footfall to harder to reach out-of-town locations, Tesco, which acquired the

garden centre group Dobbies in 2007, launched the first joint Dobbies and Tesco site in King’s Lynn,

Norfolk in 2013. The superstore features a restaurant and a café which sit between the two stores. The

500-seat restaurant has been created for families and shoppers needing a break. There is also space for

a further 100 on the patio and 70 in the café, which serves tea, coffee and cake.



DIY stores

The economic downturn and its impact on the housing market as well as consumers’ general spending

priorities has created tough trading conditions for DIY specialists in recent years. Added pressure has

been exerted by the growth in non-specialist operators, both online and in-store, increasingly

encroaching on the DIY retailers’ traditional USP, according to Mintel’s DIY Retailing – UK, May

2013.

The brands in this market arguably started to target particular demographics more directly in order to

reassert their respective authority and specialisms. For example, Travis Perkins rolled out a dedicated

tool hire brand called Hire It across branches in the North of England in 2013, whilst Homebase has

been attempting to appeal to a more female demographic in recent years, launching its first Habitat

mini-store in an outlet in Ruislip, London in November 2012.

More recently, financial results from brands in this sector highlight that not all categories or all

retailers are benefiting equally from economic improvements in 2013, with demand for

traditional DIY categories still muted, impacting on B&Q’s results, whilst Homebase’s performance

has been bolstered by its focus on lighter furnishings and homewares.

B&Q

In recent years B&Q has been attempting to downsize some its largest stores by sub-letting space

to retailers such as Tesco. For example, In September 2013, the retailer announced deals with food

retailers in 18 stores, such as Asda in Belvedere, southeast London. The Asda concession has been

successful with nearly the same sales for B&Q, derived from just half the space due to the added

footfall from the supermarket.

Kingfisher, the brand’s parent company, claimed in 2013 that the retailer could maintain existing

sales with 20% less space. Chief executive Ian Cheshire has suggested that this could lead to it

filling these spaces with restaurant and café concessions or a similar acquisition to that of Harris +

Hoole and Giraffe by Tesco, with B&Q potentially buying a small foodservice chain to fill the

extra space in its stores.

Bookstores

Growth in the sale of e-books helped to bolster the ailing book market in 2013 in the face of declining

value of print book sales, according to Mintel’s Books and e-Books – UK, September 2013. The high

street has become less and less important to the sale of books in the face of the growth of online sites,

particularly generalist giant Amazon.

Foodservice has the potential to help buoy the performance of the beleaguered high street book store

market, helping to increase their relevance to consumers’ lifestyles in a changed marketplace: 17% of

book buyers have stated that more designated social spaces (eg coffee shops, customer lounges) for

reading would encourage them to buy a book in-store at a shop rather than via an online retailer. For

example, the Waterstones-branded Café W coffee shops are described as the company’s driver of

growth and form part of its wider plans to refurbish stores to create more experiential venues to attract

consumers, according to accounts for Waterstones Booksellers Limited for the year to 27 April 2013.



Other

A small number of combined café/shops have popped up in recent years, creating a niche area of

lifestyle concepts. For example, a combined café and bike shop called Your Bike Shed opened in York

in November 2013, which describes itself as a bicycle café, coffee shop and repair workshop. The

venue says its ethos is to create a space where like-minded consumers can converse in a social space

whilst getting their bikes fixed/serviced with the added facility of a café serving food sourced locally

where possible.

A similar bike shop/café hybrid called Rockets and Rascals opened in Plymouth in 2013, whilst Cycle

PS is a new bike shop, café and bar located in an old pub in Kennington, London with a similar outlet

in Camberwell which also serves pizza.

Such concepts tap into the Mintel Inspire trend Rebirth of Cities which explores the issues around

urbanisation, such as that it will create a “new patriotism” building identity around a single city or

lifestyle groups, ie creating a tribe mentality. The trend identifies how brands can explore facets

related to this trend to help overcome issues such as city budget cuts or become urban developers to

make city life greener, simpler, cleaner or simply more fun for its inhabitants.

The Consumer – In-Store and Transport Non High Street Foodservice Trends Hub Catering Habits UK, March 2014


The Consumer – In-Store and Transport Hub

Catering Habits

Key points

Supermarket cafés/restaurants dominate the in-store catering market in terms of usage with

nearly a fifth of consumers visiting these outlets at least a few times a month, supported by

the high frequency of visits to grocery stores. Shopping centre cafés/restaurants come second

in terms of usage, with 15% visiting with the same frequency.

Men are the most likely to say that they use venues such as cafés in supermarkets,

department stores and train stations to kill time, whilst women and those aged 55+ are more

likely to use in-store and travel hub venues to grab a quick bite.

Hot grab and go concepts should work well in supermarkets given that the most popular

reason to use these venues is to grab a quick bite/drink, whilst visual cues placed around

department stores should help prompt in-store catering as part of the leisure experience

when shopping as well as more treat purchases.

In-store and transport hub catering outlets visited

Supermarket cafés/restaurants are most frequently used in-store catering options

This section analyses exclusive primary research carried out for Mintel by GMI amongst a nationally

representative sample of 2,000 internet-using adults aged 16+ in November 2013. Respondents were

first asked about the frequency with which they eat out at in-store cafés/restaurants and at travel hubs:



FIGURE 12: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED, DECEMBER 2013


Base: 2,000 internet users aged 16+ At least

once a week

A few times a month

Once a month

Once every

two/three months

Less than once every

three months

Have not visited a

café/restaurant at this location in the last 12

months % % % % % %

Supermarket (eg Tesco, Sainsbury’s)

8 11 11 10 17 44

Department store (eg John Lewis, Debenhams, House of Fraser, Selfridges)

3 8 9 9 18 53

Variety store (eg M&S, BHS) 3 7 9 10 18 52 Clothing shop (eg Next, Topshop) 3 6 6 6 9 70 Furniture store (eg IKEA) 2 4 6 7 15 65 Garden centre 3 5 7 10 21 55 Bookstore (eg Waterstones) 2 4 6 7 13 68 Other shop (eg DIY stores, music stores)

2 5 6 6 10 71

Shopping centre 5 10 14 14 19 38 Motorway service areas/petrol stations

2 6 7 11 24 49

Train stations 3 6 7 9 21 54 Airports 2 5 5 7 28 54 SOURCE: GMI/MINTEL

Supermarket cafés/restaurants dominate the in-store catering market in terms of usage with nearly a

fifth of consumers visiting these outlets at least a few times a month, supported by the high frequency

of visits to grocery stores. Shopping centre cafés/restaurants come second in terms of usage, with 15%

visiting with the same frequency.

Venues which consumers visit less regularly such as airports naturally see lower overall usage of their

catering outlets. However, the in-store catering market arguably remains undeveloped at present in

sectors such as DIY stores which may benefit from adding more dynamic catering options to increase

dwell time, with seven in ten consumers saying that they haven’t used catering outlets in these venues

in the last 12 months. That said, in response to falling footfall in the face of increasing online sales,

B&Q has already been subletting space in selected outlets to other retailers as it looks to downsize its

estate and streamline costs.

Welcoming food markets or food trucks to use shop car parks could enable operators to facilitate

temporary food outlets in a bid to drive visits whilst also allowing them to benefit from the established

foodservice knowledge of these proven operators.



Such changeable concepts could also appeal to the adventurous nature of in-store/travel hub catering

users. Usage of the majority of these in-store venues is biased towards men, those aged 25-34, those

with children aged 0-9 in the household and Londoners. This age group and general demographic,

particularly Londoners, tend to be fairly adventurous when it comes to eating out and are therefore

more expectant of innovative catering solutions. For example, those aged 25-34 are the most likely to

agree that its worth paying more for tasting dishes which offer variety (eg trio of pork cooked different

ways), suggesting an interest in concepts which offer skill, innovation and interest (see Mintel’s Menu

Flavours – UK, January 2014).

FIGURE 13: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED, BY USAGE AT LEAST A FEW TIMES A MONTH, DECEMBER 2013 Base: 2,000 internet users aged 16+

SOURCE: GMI/MINTEL



Reasons for using in-store and transport hub catering outlets

Refuelling is a key reason for using in-store catering outlets

Respondents were then asked about their motivations for visiting these venues:

FIGURE 14: REASONS FOR VISITING IN-STORE AND TRANSPORT HUB CATERING OUTLETS, DECEMBER 2013




variety store



Sample size 1,111 1,049 1,021 925 % % % %

To grab a quick drink/bite to eat 44 35 44 40 For a treat 24 26 10 9 As a last resort 11 7 17 11 To relax and unwind 23 26 19 10 To take advantage of promotional deals

9 10 7 6


Men are the most likely to say that they use venues such as cafés in supermarkets, department stores

and train stations to kill time.

In contrast, women and those aged 55+ are more likely to use in-store and travel hub venues to grab a

quick bite.



Nearly half of supermarket café users are looking for a quick bite FIGURE 15: REASONS FOR VISITING SUPERMARKET CAFÉS/RESTAURANTS, DECEMBER 2013 Base: 1,111 internet users aged 16+ who have visited a café/restaurant at supermarket in the last 12 months

SOURCE: GMI/MINTEL

Nearly half (44%) of supermarket catering users say they tend to use these venues to grab a quick

bite/drink. Consumers aged 55-64 are the most likely to note this reason, this age group also being

more likely to prefer traditional canteen-style in-store dining when eating out, generally speaking.

Those aged 25-34 are the most likely to use supermarket cafés/restaurants because the food/drink

looks appealing, venue looks inviting, as a last resort, or to take advantage of a promotion. Users with

children in the household aged 0-4 also are more likely than average to use supermarket cafés for these

reasons. This suggests that having eg freshly baked goods on show so that they’re visible outside the

café should appeal to these core in-store catering users and help drive impulse purchases.

Londoners are amongst those most likely to state that they use supermarket cafés for a treat or because

the food outlet looks inviting, with full-time workers also showing a bias towards the latter.

Hot grab and go concepts should also work well in supermarkets given that the most popular reason to

use these venues is to grab a quick bite/drink. Consumer research for this report further shows

considerable demand for IKEA-style catering approaches with 82% of supermarket catering users

stating their interest in low-cost snacks such as hotdogs for £1, with 33% very interested in this

concept. This should arguably capitalise on the impulse-led mentality of the core 25-34 users and

parents of young children, more likely than average to note eating at these venues if the food/drinks

look appealing.



This suggests that catering concepts in supermarkets should be more targeted in order not to fall into

the category of being a jack-of-all-trades but master of none – for example, by offering concepts

tailored to appeal to particular demographics or creating zoned areas within dining rooms to meet the

varying needs of different consumer groups.

Department store cafés should create more visual cues to prompt ‘treat’ behaviour FIGURE 16: REASONS FOR VISITING DEPARTMENT STORE/VARIETY STORE CAFÉS/RESTAURANTS, DECEMBER 2013 Base: 1,049 internet users aged 16+ who have visited a café/restaurant in a department/variety store in the last 12 months

SOURCE: GMI/MINTEL

Department stores are generally seen to offer a pleasant shopping experience, with two thirds of

shoppers looking around the stores even when not planning to make a purchase, according to Mintel’s

Department Store Retailing – UK, May 2013. Despite the image of department store shopping as a

leisure activity, only a quarter of users have visited the in-store catering venues for a treat or to relax.

Simple initiatives such as visual cues in other parts of the store, positioning the in-store catering as part

of the leisure experience could help the operators to more effectively capitalise on this mentality.

Playful approaches such as slogans at the tills suggesting the shoppers treat themselves at the café

having completed their shopping could resonate. This also taps into the Mintel Inspire trend Guiding

Choice which describes how consumers are looking for shortcuts to aid their decision making as their

lives are increasingly time-pressed.

Those most likely to state that they use cafés in department/variety stores to grab a quick bite include

women, those aged 55+, C1’s and those with no children in the household.

Those most likely to use department/variety store cafés because the food/drink looks appealing or as a

last resort include those aged 16-34, whilst those consumers who tend to use them to kill time, to take

advantage of a promotional deal or because the food/drink looked appealing are more likely to be aged

25-34.



As frequent in-store catering users, department/variety stores could hope to further appeal to this

demographic via loyalty promotions based around their in-store spend, eg money-off catering

purchases for buying goods in the rest of the store, with the hope of upselling catering options further

(ie giving away a free tea with the assumption that they’ll buy a cake/snack as well). In-store caterers

could also ensure that the restaurant/café’s fresh foods are visible to passing traffic in-store eg via

displays at the entrance for instance, with the aim of prompting catering purchases.

Men are more likely than women to say that they use these venues to kill time or as a last resort,

backing the old stereotype about the different genders’ approach to shopping. This suggests the

opportunity for a zoned approach to dining areas in shops with a greater focus on entertainment in

some of these areas to appeal to men looking for ways to kill time.

Speed of service is important to MSA catering users FIGURE 17: REASONS FOR VISITING MSA/PETROL STATION CAFÉS/RESTAURANTS, DECEMBER 2013 Base: 1,021 internet users aged 16+ who have visited a café/restaurant in a motorway service area/petrol station in the last 12 months

SOURCE: GMI/MINTEL

Speed of service is crucial in the MSA arena where nearly half (44%) of users are looking to grab a

quick bite. As such, fast service payment concepts are also important to this sector. For example, in

February 2014 Welcome Break reported that it had seen “massive” improvements to transaction

speeds after upgrading to a unified payments system at the point of sale, helping to shorten queuing

time, particularly during peak hours.

Men are the most likely to use petrol station or MSA cafés for a treat and because the food/drink

looked appealing. Churros operators may wish to explore MSA locations as potentially lucrative areas

of expansion bearing in mind that data from Mintel’s Menu Flavours – UK, January 2014 shows that

men are also the most likely to state that they haven’t yet but would like to order the Spanish-inspired

doughnuts. Similarly, established MSA operators may benefit from adding products such as churros

onto menus.



Women, those aged 65+, consumers who are separated/widowed/divorced and those with no children

in the household are the most likely to stop at MSA café/petrol stations to grab a quick bite to eat.

Meanwhile, those most likely to use these venues to relax and unwind include those aged 35-44 and

those with children aged 10-15 in the household. Consumers who have children aged 0-4 in the

household are the most likely to use them to kill time and for a treat. Those aged 16-34 and full time

workers are also more likely to use MSAs for a treat.

The diverse uses of motorway service areas suggests that MSAs should further develop zoned areas to

better meet the needs of these different consumer groups. For example, innovations such as

McDonald’s trial of interactive digital play areas may work well in this environment.

Catering to varying needs at train stations FIGURE 18: REASONS FOR VISITING TRAIN STATION CAFÉS/RESTAURANTS, DECEMBER 2013 Base: 925 internet users aged 16+ who have visited a café/restaurant at a train station in the last 12 months

SOURCE: GMI/MINTEL

The catering services at train stations face contrasting demands with 40% of users looking to grab a

quick bite whilst 29% are looking to kill time. Vendors such as Giraffe are already launching tailored

concepts in an attempt to target these consumer groups with varying needs more specifically, eg

through its Giraffe Stop and Giraffe Kiosk outlets.

Meanwhile, the Mintel Inspire trend Cool Vending discusses how global developments in vending

technology means that it doesn’t have to be seen as a last resort purchasing option, with machines now

selling more sophisticated goods such as electrical equipment whilst others are increasingly getting

more experiential, fun and interactive.

Pre-ordering services offers another potential avenue for grab and go operators in the train station

sector, with pre-pay mobile phone apps also likely to help with issues such as queuing time in these

areas.



Conversely, in order to tap into demand from those with time on their hands, a number of operators

have been launching new concepts. For example, at the end of 2013 it was reported that the rib and

burger-focused American concept TGI Friday’s was looking to launch a new outlet in the upper

concourse of Manchester’s Piccadilly Station. The launch is in line with its wider strategy to create a

“new generation” format to allow the brand to open 40 outlets in non-traditional sites in the future.

Meanwhile, in 2014 Glendola Leisure has been developing two new food and drink concepts at

Glasgow’s Central Station including Gordon Street Coffee shop (offering grab and go purchases as

well as seating for 20 people) and Alston Bar & Beef restaurant.

Women, those aged 45-54 and those with no children in the household are more likely than most to

state that they use cafés/restaurants at train stations to grab a quick bite. Over-55s are more likely than

most to use them to kill time.

There is a male bias among those who state that they use cafés/restaurants in train stations to relax and

unwind as well as to make the most of a promotional deal. Deal seeking also peaks among those aged

25-34. Those aged 16-34 are more likely than most to say that they use them because the food/drink

looked appealing as are ABs and those with children aged 0-4 in the household.

Londoners, full-time workers and those with children aged 0-4 are more likely than most to say that

they use cafés in these restaurants because the venues looked inviting.

With visual prompts affecting families’ purchasing habits, venues targeting this demographic in these

locations could benefit from using highly visual advertisements to promote store location as well as

any deals on offer.

The Consumer – Attitudes towards In-Store and Non High Street Foodservice Trends Transport Hub Catering Outlets UK, March 2014


The Consumer – Attitudes towards In-Store and

Transport Hub Catering Outlets

Key points

Consumers’ familiarity with their product range and service help bolster the appeal of

nationwide brands in these non-high street locations. However, few consumers are willing to

pay a premium for such assurances.

Meanwhile, perceptions of high prices deter around four in ten users from buying food/drink

in locations such as MSAs and airports.

Local/regional products can help operators engage with older consumers in non-high street

locations, with around 17% of users preferring outlets which sell local products, rising to

22% amongst those aged 65+.

Meanwhile, technological advancements such as GPS tracking and more sophisticated

vending options could increase the appeal of catering in these areas among younger

consumers and help reduce lost revenue from the 12% of users who often forget the outlets

are there.



Perceptions of high prices deter consumers from using outlets in non-high street locations FIGURE 19: ATTITUDES TOWARDS IN-STORE AND TRANSPORT HUB CATERING, DECEMBER 2013


Base: 1,600 internet users aged 16+ who have visited a café/restaurant at one or more of the locations in the last 12 months

13

12

13

13

16

17

18

20

21

23

27

38

0 5 10 15 20 25 30 35 40

None of these

I often forget cafés/restaurants in these locations are there

It’s worth paying more for food/drink from brands I know and

trust

I look for something different from what I usually eat/drink when

visiting these outlets

Smaller brands tend to offer a more appealing range of products

than some of the bigger chains

I prefer outlets offering local products

It’s quicker/easier to use a national chain’s outlet because I know

the product range

I prefer small brands because they’re better value for money than

national chains (eg Costa Coffee)

I’m more likely to buy food/drink from a brand I know (eg Costa

Coffee) than an unfamiliar one

I prefer to use large chains (eg Starbucks, Costa, McDonald's etc)

because I know what to expect in terms of quality

Unclean tables/facilities have put me off visiting an outlet in these

locations

I avoid buying food/drink at locations such as motorway servicestations/airports etc because it is so expensive

%

SOURCE: GMI/MINTEL

A pricey image continues to dog the in-store/travel hub catering market, with four in ten users stating

that they avoid buying food/drink at locations such as MSAs/airports because they view it as

expensive. Brands therefore need to reassure consumers that prices in these locations are not different

from that found at the rest of their estate, where applicable. This could offer a competitive strength for

high street brands over travel catering specific ones in these contexts. Alternatively, brands could look

to readdress the value for money perception at these sites by adding a more experiential element. This

could include using these sites as testing ground for new concepts, giving away samples of new drinks

or dishes for instance, to help improve the value perception.

Hygiene concerns are also deterring consumer usage in this area with over a quarter (27%) of users

stating that unclean tables/facilities have put them off visiting outlets in these locations. Arguably

something that should be taken as a given, ensuring that such basic cleaning up of general dining areas

is undertaken and facilities are maintained consistently can make a real difference to operators in this

context. As noted above, the inviting look of a venue can prompt a purchase, and operators in this area

could use more food/natural cues in order to drive sales and create less sterile and unengaging

environments.



Ethnic food concepts appear to faring well in these non-high street locations, as reported by operators

such as Network Rail which now houses brands such as Wasabi and Benito’s Hat at London’s King’s

Cross station. Pho and Tortilla have been confirmed for units at Grand Central, the redevelopment

above Birmingham’s New Street train station, which is due for completion in 2015.

Fast casual ethnic operators such as these could similarly be used to add further interest to the roadside

catering market, tapping into demand from 13% of in-store/travel hub users who say they look for

something different at these outlets from what they usually eat/drink.

Consumers are looking for brand assurances, but few are willing to pay a premium for it

Nearly a quarter (23%) of in-store/travel hub catering users say that they prefer to use large chains (eg

Starbucks) because they know what to expect in terms of quality, whilst around a fifth (18%) think that

it’s quick to use a national chain because they’re already familiar with the product range. This

arguably bodes well for MSA operators’ recent tie-ups with high street brands, as well as the decision

of retailers like Tesco to introduce well-known brands like Giraffe to their stores, as opposed to

developing their own in-store brands.

However, only a small proportion of these consumers are willing to pay more for this reassurance,

with only 13% of users stating that it’s worth paying more for food/drink from brands they know and

trust. Brands which do increase their prices in non-high street locations are thus left open to

competition from lower cost alternatives, despite the brand assurances they offer.

Those most likely to agree that they prefer to use large chains (eg Starbucks) because they know what

to expect in terms of quality include 35-44s, Londoners and high earners, whilst those most likely to

say it’s worth paying more for food/drink from brands they know and trust include 25-34s and those

with children aged 0-4. With families being among the core users of many of the in-store and transport

hub catering venues, family-oriented high street brands look well-placed to expand into non high street

locations, as many brands explore such growth areas.

Opportunities for promoting local/regional food

In contrast, some 17% of users prefer outlets offering local products, a factor which appeals most to

those aged 65+, ABs, high earners and those with children aged 5-9. Those aged 65+ and the retired

are also more likely than most to prefer small brands because they view them as better value for

money than national chains (eg Costa Coffee). Big brands may help increase their appeal amongst this

demographic by offering discounts targeted at this age group specifically.

Around 16% of users think that smaller brands tend to offer a more appealing range of products than

some of the bigger chains, with those most likely to agree with including the over-55s and retired, as

well as those living in Yorkshire/Humberside. National brands could help meet the desire of these

consumers by offering more local products as well as their standard menu in these locations.

Some operators in the on-the-go market have already been turning to local/regional producers to help

add interest and personality to menus. For example, in summer 2013 Virgin Trains partnered with

Macclesfield’s RedWillow Brewery to create a brand new beer, Tilting Ale, specifically to be served

on board.



However, operators could do more than just sell local products in order to increase their appeal to

consumers. The Mintel Inspire trend Locavore describes how the local movement is about more than

just food and is instead a shift in why, where and how people consume goods and products. The

emphasis, therefore, is on operators to ensure that they’re not just “local washing”, and instead need to

prove their credibility and transparency in terms of why they’re serving such products. The launch of

Waitrose’s’ new Leckford Estate farm-style shop in 2013 may be evidence of this attempt to increase

the credibility of the store’s approach in order to highlight the true “local” nature of the products to

drive sales.

Technology could help operators reduce instances of being overlooked

More than one in ten in-store/travel hub catering users say that they often forget cafés/restaurants in

these locations are there, representing a significant lost opportunity for caterers.

Those aged 16-24 and full-time students are most likely to say they often forget cafés/restaurants in

these locations are there. This demographic is also more likely than most to agree that they look for

something different from what they usually eat/drink when visiting these outlets. This suggests that in-

store and travel hub catering needs to offer more dynamic, eye catching design and food in order to

capture the attention of these younger consumers.

Offering highly visible vending machines may help operators reduce the missed opportunity from

these consumers by increasing their relevance to this convenience-led group. Those aged 16-34 are the

most likely to agree that they’d use vending machines if it saved them time queuing in stores or if the

machines offered a greater variety or healthier food than currently. Drive-through locations may also

help brands increase usage amongst this group in non-high street locations.

Continued technological development is helping retailers to almost force brand awareness onto

customers. For example, sandwich shop EAT has signed up to trial iBeacon technology, an Apple

creation which aims to “push” tailored messages to a customer’s smartphone when they enter its

shops.

Foodservice operators could also look to other technological developments to help increase consumer

awareness of the locations of their outlets. For example, at the start of 2014, Domino’s in the US

announced a partnership with Ford Motor Company, which will see it launch a shared Easy Order

platform in mid-2014. The platform is designed to enable customers to place a pizza order from their

Ford cars using the Form SYNC Applink and Domino’s Pizza Profile platform. Such concepts tap into

the Mintel Inspire trend Life Hacking which describes how consumers are seeking tools to help them

perfect their productivity such as seeking to better use waiting time – or avoid it altogether.

The Consumer – Interest in Products/Services Non High Street Foodservice Trends at Supermarket Catering Outlets UK, March 2014


The Consumer – Interest in Products/Services at

Supermarket Catering Outlets

Key points

Lower-cost snacks (such as £1 coffee or hot dogs) and made to order food (eg sandwiches or

salads) top the list of catering enticements that users would be likely to use at supermarkets,

with four in five at least somewhat interested.

Supermarket catering operators face diverse demands, from convenience-driven products to

more leisure-focused dining occasions. A greater range of tailored concepts in-store rather

than a one-size-fits-all approach appears to be called for.

There is also considerable interest in portable products, with a fifth of supermarket catering

users very interested in hot drinks to take away and grab and go hot food. Similarly, 18% of

users are very interested in being able to take hot drinks around the store whilst they shop.

Four in five supermarket catering users want to see more low-cost, grab and go options FIGURE 20: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS, ANY INTEREST, DECEMBER 2013



50

50

55

64

65

67

67

68

70

75

77

82

0 10 20 30 40 50 60 70 80 90



Being able to take hot drinks (eg in takeaway cups) around thestore while you shop

Well known/high street coffee shop/restaurant brand (eg PizzaExpress)

Grab and go hot food (eg hot sandwiches, chips, portable

porridge)



A coffee shop/restaurant more clearly separated from the shop

(eg separate entrance)


slices)




%

SOURCE: GMI/MINTEL



Lower-cost snacks (eg £1 coffee, £1 hot dogs) appeal to eight in ten supermarket catering users,

reflecting their tendency to grab a quick drink/bite to eat (see Reasons for Visiting In-Store and

Transport Hub Catering Outlets section). A third of users are very interested in this concept, a

sentiment particularly strong among Londoners and those aged 25-34. Furniture retailer IKEA’s

strategy of operating fast food outlets serving items such as low cost hot dogs already demonstrates

this practice and could be used as an example for supermarkets looking to more effectively target

particular reasons to purchase such as to grab a quick bite.

Made to order food (eg sandwiches, salads) also has significant appeal amongst supermarket catering

users with 77% interested in this concept and 21% saying they’re very interested in seeing these

options in supermarkets. While this can pose a challenge for in-store caterers in terms of their service

formats and facilities, a range of made to order dishes should help to contribute to an image of “real

food”. Subway is already attempting to tap into this demand, opening its first franchise within a Lidl

supermarket in Cromer in Norfolk June 2013, followed by a site opened in an Asda store in Old Kent

Road in London in November 2013 as part of Subway’s strategy of focusing on non-traditional

locations as a key area of growth.

A wider range of breakfast items appeals particularly to those aged 16-34, single people, students,

those living in urban locations or parents with children aged 5-9. By adding Giraffe outlets to selected

sites, Tesco has been able to offer supermarket customers more varied breakfast and brunch options

such as Huevos Rancheros Mexican Breakfast, stacked blueberry and banana pancakes and the

Daybreaker Omelette (egg white omelette served with cherry tomato and avocado salsa). However, the

high interest suggests that its competitors too should benefit from exploring on-trend breakfast items

on their menu, for example as limited time additions.



FIGURE 21: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS, DECEMBER 2013



13

14

17

18

18

19

20

20

21

21

22

33

37

36

47

49

37

49

50

45

56

46

54

49

35

31

26

24

26

25

22

25

18

23

20

13

15

19

10

9

19

7

8

10

5

10

4

5



Well known/high street coffee shop/restaurant brand (eg Pizza

Express)


Being able to take hot drinks (eg in takeaway cups) around the

store while you shop

A coffee shop/restaurant more clearly separated from the shop (eg

separate entrance)


slices)

Grab and go hot food (eg hot sandwiches, chips, portable porridge)





%

Very interested Somewhat interested Not very interested Not at all interested

SOURCE: GMI/MINTEL

Convenience-driven consumers

Seven in ten supermarket catering users show an interest in quick to eat, convenient savoury snacks

such as sausage rolls or pizza slices, with 20% saying they’re very interested in these concepts. The

growth in such convenient snacks in the wider eating out market arguably pushes up consumers’

expectations when it comes to such products, as well as providing supermarket caterers with ideas for

menu development. For example, Greggs has refocused its company strategy on the grab and go area

and continues to launch time-limited products such as its New Spicy Meatball Lattice in early 2014

and its Chicken Madras Lattice launched in late 2013.

There is also considerable demand for other quick to eat products such as grab and go hot food like hot

sandwiches, chips and portable porridge. Sandwich bar and lunch operators in the wider eating out

market have launched a number of such portable products in recent years, in an attempt to enhance the

value for money perceptions to more effectively compete with in-home options. Think of

developments such as Leon’s Egg Pots and EAT’s Hot Pots. Such innovations could act as inspiration

for supermarket caterers’ own menu development plans.

As well as appealing to users aged 25-34, quick to eat, convenient savoury snacks also particularly

appeal to those with children aged 0-4 suggesting that family-oriented quick to eat savoury snacks may

perform particularly well in supermarket catering units. Dishes tailored to the nutritional needs of

children (eg low salt, natural/no artificial additives) particularly appeal to families, according to

Mintel’s Attitudes towards Family Dining – UK, August 2012.



There is also considerable consumer demand for grab and go hot drinks in the supermarket catering

arena. Some 67% of supermarket catering users show interest in coffee/hot drinks to take away, with

21% saying they’re very interested in this concept.

Consumers’ convenience-led nature is further demonstrated by the fact that 55% of supermarket

catering users are interested in being able to take hot drinks (eg in takeaway cups) around the stores

with them, with 18% very interested in this service. Half of supermarket catering users are interested

in additional services such as coffee vendors in car parks.

Tesco’s new destination superstore concept taps into this demand with services provided by a Harris +

Hoole mobile coffee cart outside the Tesco Extra store in Watford, for instance. Takeaway coffee cup

holders have been added to the small trolleys at the superstore to further encourage shoppers to use this

new catering facility. This creates a much wider range of consumption instances for the in-store

catering outlets to capitalise on.

Leisurely consumers

The mixed expectations of supermarket catering outlets are demonstrated by the interest in

improvements to cafés which would appeal to the more leisurely consumer. For example, three

quarters (75%) of supermarket catering users are interested in more comfortable seating areas (eg

sofas) with 22% very interested in these improvements.

Meanwhile, 68% would like to see coffee shops/restaurants in supermarkets more clearly separated

from the shop (eg with a separate entrance), with 19% very interested in this change. Such changes

could also boost the appeal of the in-store cafés to passers-by, by making them more conveniently

accessible and positioning them more actively as a destination in their own right.

Many consumers are looking for brands as a source of assurance when it comes to supermarket

catering with 64% of supermarket catering users interested in more well-known/high street coffee

shops or restaurant brands such as PizzaExpress and Giraffe entering the supermarket catering

environment. This should bode well for Tesco’s recent initiatives.

Supermarket catering outlets which offer waiter service are more divisive amongst consumers, with

half interested and half not interested in this level of service in supermarkets, reflecting in part the

strong associations of in-store catering with speed and convenience.

Rather than trying to create one catering outlet which attempts to appeal to all consumers and reasons

to visit, catering managers now appear more willing to offer shoppers a more diverse range of catering

options within larger stores (think of the revitalised Tesco Extra stores) whilst others may benefit from

zoning seating areas within the same catering outlet. These can range from quick stay coffee shop

offers to more distinct restaurant-style surroundings and menus better suited to those looking for

longer dwell time options. In this way, operators are tapping into the principles laid out in the Mintel

Inspire trend Many Mes, which describes how consumers are diverse individuals, with multiple

identities, and in this case, with multiple reasons for visiting supermarket catering outlets.

The Consumer – Vending & Self-Service Machines Non High Street Foodservice Trends UK, March 2014


The Consumer – Vending & Self-Service Machines

Key points

A third of UK adults have used a vending machine or self-service machine in the last 12

months, with usage peaking amongst men, students, those aged 16-34 and those living in

urban locations.

Concepts such as self-service machines are becoming more prevalent as operators such as

Costa Coffee continue to develop these in order to reach distribution channels such as

universities, hospitals, offices and motorway services. A fifth of UK consumers say they’d be

more likely to buy fresh food/drinks (eg coffee) from a self-service machine from a well-

known brand.

Opportunities also exist to use mobile operators (such as food trucks) to bridge the gap

between brick and mortar coffee shop outlets and machine vending concepts as nearly a fifth

of UK adults state that they’d rather buy food/drink from a mobile vendor (eg a coffee kart)

than a self-service machine.

Consumers’ relatively limited vending experience at present is leading four in ten UK adults

to view these machines as last resort purchases only. However, 15% of adults say they’d be

more likely to use vending machines if they sold more varied food/drink choices or healthier

options.

Concerns over the freshness of food offered in vending machines will also need to be

addressed first in order to maximise this opportunity. For example, 15% of UK adults would

be willing to buy sandwiches/fruit/bakery items from a vending machine if it was restocked

daily.



A third of adults have used vending or self-service machines in the last year

Respondents were then asked about their usage of vending and self-service machines:

“Have you bought food/drink from a vending machine (pre-packaged products eg chocolates, bottled drinks) or self-service machine (eg freshly made/made to order coffee) in the last 12 months?”

FIGURE 22: USE OF VENDING MACHINES AND SELF-SERVICE MACHINES IN THE LAST 12 MONTHS, DECEMBER 2013 Base: 2,000 internet users aged 16+

32

34

62

57

5

9

Self-service machine (freshly made/made to order coffee)

Vending machine (pre-packaged products eg chocolates, bottleddrinks)

%

Yes No Can’t remember/don’t know

SOURCE: GMI/MINTEL

Around a third of UK adults have used a vending machine in the last 12 months and a similar

proportion has used a self-service machine:

Those most likely to have used a vending machine in the last 12 months include men, 16-34s,

those in full-time education, those who live in an urban location, with a healthy financial status,

and singles.

Similarly those most likely to have used a self-service machine (eg freshly made/made to order

coffee) in the last 12 months tend to be men, aged 16-34, Londoners, ABs, high earners, those in

full-time education or living in an urban location, reflecting the availability of such machines in

high footfall areas.



Attitudes towards self-service machines

The next question asked was:


FIGURE 23: ATTITUDES TOWARDS SELF-SERVICE MACHINES, DECEMBER 2013 Base: 2,000 internet users aged 16+

44

16

16

20

20

0 5 10 15 20 25 30 35 40 45 50

None of these

I don’t trust self-service hot drinks machines to be hygienic

I’d be interested in self-service drinks machines which offer

made to order drinks (eg lemonade with raspberry, latte with

vanilla)

I’d be more likely to buy fresh food/drinks (eg coffee) from a

from a self-service machine from a well-known brand (eg Costa

Coffee, Nescafe)

I would rather buy food/drink products from a mobile vendor

(eg a coffee kart) than a self-service machine)

%

SOURCE: GMI/MINTEL

Improvements to self-service machines boost availability…

The share of consumers using self-service coffee machines is only likely to increase going forward as

these machines become more readily available. They look set to gain an increasingly significant role in

the UK coffee shop market as operators look to tap into the fact that convenient location is the top

factor influencing where hot drinks are purchased out of home, as found in Mintel’s Coffee Shops –

UK, October 2013.

Technological developments in the field of self-service machines are also helping the machines to

better compete on quality with foodservice outlets. Meanwhile, technical developments are enabling

coffee shop brands to extend their reach further into non-high street locations. For instance, Costa

Coffee now operates two types of self-service coffee machine; a larger more eye-catching unit for use

in channels such as motorway service areas and petrol stations, and a smaller, more discreet machine

designed for environments such as offices, hospitals and universities.



The unsurprising key role of availability of vending and competing options is apparent in the finding

that six in ten students use vending machines on campus compared to a quarter who do so off campus,

according to Mintel’s Contract Catering – UK, September 2013. Such concepts are also tapping into

student demand to grab a quick bite and for fast service, with 45% of university students stating that

queues at foodservice venues on campus put them off buying food/drink there.

… with scope also to support demand

Such developments form part of wider global trends; for instance, Coffee Haus, from US company

Briggo, is a coffee kiosk concept which enables consumers to order personalised coffees from their

mobile phones and pick them up at the machine, according to Mintel’s Coffee Houses and Donut

Shops – US, December 2013. Launched in July 2013 at the University of Texas’s Austin campus, the

format enables users to customise their drinks such as espressos, lattes, iced coffees, and hot chocolate

with flavourings, types of sweetener and milk, and the amount of each ingredient.

Such customisable self-service concepts are also available in the UK market. For example, in summer

2013, Nestlé Professional launched the Nescafé Milano Lounge which is described as a touch-screen,

self-serve coffee machine, capable of delivering up to 400 drink varieties by allowing consumers to

customise their drinks. Despite the currently limited availability, and therefore awareness, of such

machines, 16% of UK adults express an interest in self-service machines enabling their drinks to be

customised.

With value for money very much a top consumer concern, the reassurance offered by brands can

support sales in the self-service market: a fifth of UK adults state that they’d be more likely to buy

fresh foods/ drinks (eg coffee) from a self-service machine from a well-known brand (eg Costa Coffee,

Nescafé), with Costa currently the front-runner in this area.

Food trucks can act as a middle ground between machines and human service

The Mintel Inspire trend Human describes how the demand for both fast service and automation has

elevated the demand for human service and artisan goods amongst others. So, whilst more leisurely

coffee shops complete with human skill in preparing the coffee (as highlighted by Hoole + Harris) and

human interaction are still in favour in more residential areas, environments such as universities are

key targets for more convenience-focused and automated services such as vending and self-service

machines.

Opportunities exist for mobile foodservice operators (such as food trucks or coffee karts) to bridge the

gap between brick and mortar coffee shop outlets and machine concepts by offering speed of service in

convenient locations with the addition of face-to-face customer service and the quality assurance this

arguably offers.

This would appeal to nearly a fifth of UK adults who state that they’d rather buy food/drink from a

mobile vendor (eg a coffee kart) rather than a self-service machine. ABs and those who live in urban

locations are the most receptive to coffee kart concepts according to demographic analysis (see

Appendix), reflecting the emerging food truck trend, which is increasingly available in cities such as

London and Bristol.



Attitudes towards vending machines

The next question asked was:


FIGURE 24: ATTITUDES TOWARDS VENDING MACHINES, DECEMBER 2013 Base: 2,000 internet users aged 16+

30

13

14

15

15

15

18

38

0 5 10 15 20 25 30 35 40

None of these

Vending machines should offer mobile phone or credit/debit card

payment

I would be more likely to use vending machines if it saved me

time queuing in stores

I would be willing to buy sandwiches/fruit/bakery items from a

vending machine if it was restocked daily

I would use vending machines more if they stocked healthier

products

I would be more likely to use vending machines if they sold

new/more varied food/drink choices

Concerns about food quality do/would put me off buying fresh

food (eg sandwiches) from vending machines

I only tend to use vending machines as a last resort

%

SOURCE: GMI/MINTEL

Quality concerns hold back vending machines

Four in ten UK adults only use vending machines as a last resort, with concerns over product quality

and range likely to be contributing towards this mentality. However, trends for more sophisticated

items to be sold at vending machines may help alter this perception over time. For example, in late

2013, high-end department store Selfridges unveiled a Moët & Chandon vending machine in-store,

selling mini-bottles of the Champagne.

Meanwhile, the availability of buying any kind of products via vending machines is widening globally

according to the Mintel Inspire trend Cool Vending which highlights developments such as vending

machines selling products like bike parts, electronics, art and prescription drugs globally.



However, poor quality perceptions will need to be addressed by vending machine operators in order to

widen their use in the eating out market, with nearly a fifth (18%) of UK adults deterred from

purchasing fresh food (eg sandwiches) from vending machines by concerns over the food quality.

Offering users more transparent information could help operators to address these concerns, such as on

the temperature maintained by the vending machine, the best before dates of products, or – in high

footfall locations where regular servicing is feasible – the frequency of restocking fresh foods.

Global innovation suggests wide scope in vending

If these concerns were addressed, operators would have the potential to target the 15% of adults who

would be likely to use vending machines that stocked more varied food/drink ranges.

In the global market, vending machines offering a wider range of food products are less uncommon.

For example, in the US, Let’s Pizza creates made-to-order pizzas in 2.5 minutes using an infrared

oven. The dough is made from flour and mineral water when the order is received. It is then shaped

and topped with organic tomato sauce and one of four toppings before being fast-fired. Each machine

contains company-branded ingredients for 200 pizzas and the inventory is monitored via the internet.

Other such innovative vending machines available around the world include a French Fry vending

machine created by Beyondte Technology, a manufacturer in China. A similar concept in Belgium by

a supermarket in Brussels in 2013 produced hot chips for users in 90 seconds with the option of

mayonnaise or ketchup as accompanying condiments.

In the UK, Wrapid, a healthy fast food concessions chain, launched a new self-service dispensing

system for its burrito and wrap products which it was trialling at three university sites at the start of

2014. Similar concepts are operating in the US, including California-based Burritobox vending

machines

Fresh, fast food

Clear signage detailing when the machine was stocked would appeal to the 15% of adults who state

that they would be willing to buy sandwiches/fruit/bakery items from a vending machine if it was

restocked daily.

While frequent restocking would be unprofitable for traditional vending machines, this model could in

certain situations allow foodservice operators to use a vending machine effectively as a nearby or out-

of-hours concession to sell their products. For example, the cupcake ATM operated by LA-based

bakery Sprinkles is sited right next to the store, allowing customers 24-hour access to its baked goods.

The location of vending machines thus also alleviates consumer concerns about quality and freshness.

In the UK, Glasgow-based bakery Bradford Bakers launched a similar ATM cupcake concept in the

UK at the end of 2012 in Glasgow’s St. Enoch Centre, whilst family bakery, Fisher & Donaldson,

launched a 24-hour vending machine in St Andrews in late 2013. Such concepts are particularly well

placed to appeal to students, with nearly four in ten university students stating that they’d be likely to

visit campus food/drink outlets more if there was access to food and drink at any time of the day or

night, according to Mintel’s Contract Catering – UK, September 2013.

Fast service is also important to younger consumers with those aged 16-34 amongst those most likely

to agree vending machines should offer mobile phone or credit/debit card payment and that they would

be more likely to use vending machines if they saved them time queuing in stores.



Opportunity for healthier vending machine products

Some 15% of UK adults say they would use vending machines more if they stocked healthier

products, an idea which particularly appeals to core users eg those aged 16-34, those in full-time

education, who live in urban locations, ABs, high earners and single consumers. A similar

demographic profile is also show amongst those who agree that they’d be more likely to use vending

machines if they sold new/more varied food/drink choices.

Global examples of this include Farmer’s Fridge, which is a healthy vending concept that serves fresh

food such a local salads in Chicago. Products are packed and sealed in recyclable containers, which are

delivered to the machines by 10am each morning with any unsold salads being donated to a local food

charity. The company is SPE-certified, providing customers with guarantees regarding product

sourcing and nutritional content, whilst the ethos of the brand is further demonstrated by the fact that

the refrigerated kiosks are clad in reclaimed wood and other recycled materials.

On a more basic level, vending machines that offer a varied range of shelf-stable products such as

breakfast biscuits instead of chocolate bars, or popcorn, fruit snacks or mini crackers instead of crisps,

should also appeal to consumers looking for healthier and more varied vending options.

Experiential vending opportunities

Some brands are adding more experiential elements to vending machines to achieve a number of goals

such as creating marketing opportunities. For example, Molson Canadian beer (a lager brewed by the

Canadian arm of the global brewery group) received significant global coverage for its vending

machine during the 2014 Winter Olympics in Sochi, which offered free drinks to anyone able to scan a

Canadian passport through the machine.

Meanwhile, Coca-Cola created an “invisible” vending machine for Valentine’s Day which lit

up/became more visible when couples walked past it on the pavement where it was situated in

Istanbul.

Back in 2012, the Argentinean Rugbeer vending machine piqued media interest for its unique

approach to vending: cans of beer were dispensed when the machine was rugby tackled.

Other similarly “experiential” examples include Milka’s marketing vending machine in Argentina

which only dispensed free chocolate when passers-by linked hands to create a link between the

machine and a nearby life-size cow model. Meanwhile, in India and Pakistan, Coke attempted to

promote “togetherness” via vending machines in the two regions providing a live communications

portal between people in these areas and requiring them to mirror each other’s actions via the screen in

order to share a Coke moment together.

Whilst niche, such concepts further tap into the Mintel Inspire trend Cool Vending which recognises

the opportunities for brands to use vending machines to offer more than just convenience, and provide

exclusivity, an experience, freshness or customisation as well.

Appendix – In-Store and Transport Hub Non High Street Foodservice Trends Catering Outlets Visited UK, March 2014


Appendix – In-Store and Transport Hub Catering

Outlets Visited FIGURE 25: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED, DECEMBER 2013


Base: 2,000 internet users aged 16+ At least

once a week

A few times a month

Once a month

Once every

two/three months


three months

Have not visited a

café/restaurant at this location in the last 12

months % % % % % %

Supermarket (eg Tesco, Sainsbury’s)

8 11 11 10 17 44

Department store (eg John Lewis, Debenhams, House of Fraser, Selfridges)

3 8 9 9 18 53

Variety store (eg M&S, BHS) 3 7 9 10 18 52 Clothing shop (eg Next, Topshop) 3 6 6 6 9 70 Furniture store (eg IKEA) 2 4 6 7 15 65 Garden centre 3 5 7 10 21 55 Bookstore (eg Waterstones) 2 4 6 7 13 68 Other shop (eg DIY stores, music stores)

2 5 6 6 10 71

Shopping centre 5 10 14 14 19 38 Motorway service areas/petrol stations

2 6 7 11 24 49

Train stations 3 6 7 9 21 54 Airports 2 5 5 7 28 54 SOURCE: GMI/MINTEL



FIGURE 26: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED – SUPERMARKET, BY DEMOGRAPHICS, DECEMBER

2013 Base: 2,000 internet users aged 16+ Sample

size At least once a week/A

few times a month

Once a month

Once every two/three months


three months

Have not visited a café/ restaurant at

this location in the last 12

months % % % % % All 2,000 18 11 10 17 44 Gender: Male 1,000 21 11 10 15 43 Female 1,000 15 10 10 18 46 Age: 16-24 344 22 14 10 17 38 25-34 381 30 16 10 13 31 35-44 379 21 9 8 17 45 45-54 370 13 8 9 17 52 55-64 266 8 5 12 18 57 65+ 260 12 9 11 21 48 Region: Inner and Greater London 271 28 16 7 14 35 South East/East Anglia 496 15 8 9 18 49 South West and Wales 267 15 9 12 21 43 East and West Midlands 326 17 9 13 17 44 North West 204 21 12 9 14 44 Yorkshire, Humberside 172 14 15 13 12 47 North and Scotland 264 19 10 7 18 45 Area you live: Urban location (ie living in a town/city) 786 24 11 10 16 39 Suburban location (ie close to town/city but living outside a town/city)

836 15 10 11 16 48

Village-Rural location/Other 378 13 10 9 20 48 Working status: Employee full-time (30+ hours/week) 850 23 12 10 14 41 Employee part-time (less than 30 hours/week)

287 20 11 9 22 39

Any self-employed 137 12 12 12 9 54 In full-time education 191 16 15 9 19 41 Retired 339 10 7 12 22 49 Not working for any other reason 196 14 5 9 17 55 Socio-economic group: ABC1 1,155 19 11 10 18 43 AB 578 23 12 9 17 38 C1 577 15 10 10 18 47 C2DE 845 17 10 11 15 47 C2 414 18 12 12 16 42 D 290 20 8 8 13 51 E 141 11 7 13 18 52 Education: No formal qualification 112 17 9 10 17 47 GCSE/O-level or equivalent 480 13 12 10 18 47 AS/A-level or equivalent 303 17 9 13 14 47 Vocational qualification (eg NVQs, BTEC)

295 17 7 11 20 45

Further qualification (HNCs, HNDs) 146 14 8 12 18 48 University degree (including undergraduate and masters degrees)

551 24 13 8 16 39



Gross annual household income: Under £9,500 127 20 6 6 12 57 £9,500-15,499 298 19 10 10 16 45 £15,500-24,999 438 15 11 11 18 45 £25,000-49,999 696 18 11 12 17 42 £50,000 or over 287 25 10 7 17 40 Don’t know/Refused 154 14 12 10 14 50 Housing situation: My home is being bought on a mortgage

701 20 12 9 18 41

My home is owned outright 596 15 11 11 18 45 My home is rented from local authority 177 25 12 9 7 46 My home is rented from private landlord 348 16 9 10 15 50 My home is rented from housing association/other

178 20 8 10 18 44

Presence of own children: Aged 0-4 207 39 9 13 13 26 Aged 5-9 225 40 12 13 13 21 Aged 10-15 407 25 13 11 17 34 Aged 16-18 312 18 9 7 21 44 Any children 792 27 11 11 16 34 No children in household 1,208 13 10 9 17 51 Household size: 1 314 13 9 8 17 54 2 668 14 10 11 16 49 3 415 20 9 9 17 45 4 389 20 14 13 17 36 5 or more 214 33 11 7 17 32 Current marital status: Single 602 19 12 9 16 44 Married/Civil partnership/Living as married

1,190 19 10 11 16 43

Separated, divorced or widowed 208 10 8 11 19 52 Financial situation: Healthy – I have money left at the end of the month for a few luxuries or to add to my savings

467 24 9 8 16 43

OK – I get by, but there’s not a lot left by the time the basics are taken care of

909 17 12 11 17 43

Tight – I’m making ends meet, but only just

461 16 10 11 17 46

Struggling/In trouble 163 17 9 6 15 55

SOURCE: GMI/MINTEL



FIGURE 27: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED – DEPARTMENT STORE, BY DEMOGRAPHICS, DECEMBER 2013 Base: 2,000 internet users aged 16+ Sample

size At least once a

week/A few times a month

Once a month



three months

Have not visited a

café/ restaurant

at this location in the last 12


836 8 10 9 17 56


287 13 10 10 17 49


295 7 6 10 19 58


551 19 13 10 17 42




701 13 12 10 16 49


178 10 7 7 20 57


1,190 11 10 9 17 52


467 19 10 7 18 46


909 10 11 11 19 49


461 6 7 10 19 59


SOURCE: GMI/MINTEL



FIGURE 28: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED – VARIETY STORE, BY DEMOGRAPHICS, DECEMBER



few times a month

Once a month



three months

Have not visited a

café/ restaurant


months % % % % %

All 2,000 10 9 10 18 52 Gender: Male 1,000 12 10 10 16 52 Female 1,000 9 8 10 20 53 Age: 16-24 344 13 12 11 20 44 25-34 381 24 15 9 17 34 35-44 379 9 9 9 19 54 45-54 370 4 6 11 17 62 55-64 266 2 4 9 19 66 65+ 260 5 6 11 18 60 Region: Inner and Greater London 271 22 15 10 16 37 South East/East Anglia 496 9 10 7 18 56 South West and Wales 267 6 7 12 21 54 East and West Midlands 326 10 7 12 17 54 North West 204 9 7 10 18 55 Yorkshire, Humberside 172 8 9 9 18 56 North and Scotland 264 9 8 11 20 52 Area you live: Urban location (ie living in a town/city)

786 15 10 10 18 46

Suburban location (ie close to town/city but living outside a town/city)

836 8 9 11 18 55

Village-Rural location/Other 378 5 7 8 19 60 Working status: Employee full-time (30+ hours/week)

850 15 12 11 16 46

Employee part-time (less than 30 hours/week)

287 13 8 11 19 48

Any self-employed 137 4 6 10 23 57 In full-time education 191 10 11 8 23 48 Retired 339 4 6 10 21 60 Not working for any other reason 196 3 6 5 14 71



Socio-economic group: ABC1 1,155 12 11 11 19 48 AB 578 17 13 10 18 42 C1 577 7 9 11 20 54 C2DE 845 8 7 9 17 59 C2 414 9 9 12 21 50 D 290 10 3 7 15 65 E 141 3 7 6 11 73 Education: No formal qualification 112 4 10 12 13 62 GCSE/O-level or equivalent 480 6 7 8 19 60 AS/A-level or equivalent 303 8 10 10 17 55 Vocational qualification (eg NVQs, BTEC)

295 8 4 11 22 55


551 17 13 11 16 43


701 12 11 11 19 48

My home is owned outright 596 10 10 9 20 51 My home is rented from local authority

177 10 5 11 14 60

My home is rented from private landlord

348 8 9 9 15 59

My home is rented from housing association/other

178 8 5 9 21 56


1,190 10 10 9 18 52

Separated, divorced or widowed 208 5 5 13 17 61



Financial situation: Healthy – I have money left at the end of the month for a few luxuries or to add to my savings

467 16 11 8 18 48


909 11 10 11 19 49


461 6 7 11 19 58

Struggling/In trouble 163 4 6 7 13 71 SOURCE: GMI/MINTEL

FIGURE 29: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED – CLOTHING SHOP, BY DEMOGRAPHICS, DECEMBER



few times a month

Once a month



three months

Have not visited a

café/ restaurant


months % % % % %

All 2,000 9 6 6 9 70 Gender: Male 1,000 10 8 7 10 65 Female 1,000 8 4 4 9 75 Age: 16-24 344 13 10 9 10 57 25-34 381 23 13 8 11 46 35-44 379 8 6 8 10 68 45-54 370 4 3 3 10 81 55-64 266 2 1 1 7 89 65+ 260 1 - 2 6 91 Region: Inner and Greater London 271 17 12 9 11 51 South East/East Anglia 496 8 4 5 8 74 South West and Wales 267 4 6 6 9 74 East and West Midlands 326 10 6 5 11 69 North West 204 8 6 4 7 75 Yorkshire, Humberside 172 8 8 3 6 75 North and Scotland 264 9 4 5 11 71 Area you live: Urban location (ie living in a town/city)

786 14 9 7 10 60


836 7 5 5 9 74

Village-Rural location/Other 378 4 3 4 8 81



Working status: Employee full-time (30+ hours/week)

850 14 10 8 12 57


287 10 6 5 8 71

Any self-employed 137 5 2 4 10 79 In full-time education 191 10 8 8 8 65 Retired 339 1 - 1 6 91 Not working for any other reason 196 5 2 3 7 84 Socio-economic group: ABC1 1,155 10 8 6 9 68 AB 578 14 9 5 10 61 C1 577 6 7 6 8 74 C2DE 845 8 4 5 10 73 C2 414 8 5 6 13 68 D 290 11 4 5 6 74 E 141 2 - 4 7 87 Education: No formal qualification 112 7 2 4 7 79 GCSE/O-level or equivalent 480 5 4 5 11 76 AS/A-level or equivalent 303 9 8 5 8 70 Vocational qualification (eg NVQs, BTEC)

295 5 4 5 11 74


551 15 9 7 9 61


701 12 7 6 11 64


177 9 8 10 7 67


348 7 4 6 8 74


178 10 4 5 11 70

Presence of own children: Aged 0-4 207 24 11 10 12 43 Aged 5-9 225 24 12 10 12 42 Aged 10-15 407 15 9 7 9 60 Aged 16-18 312 7 6 4 11 72 Any children 792 15 10 8 10 57 No children in household 1,208 6 4 4 9 78 Household size: 1 314 6 3 4 7 80 2 668 5 5 5 8 77 3 415 11 7 5 11 66 4 389 11 10 7 10 62 5 or more 214 19 7 5 13 56



Current marital status: Single 602 10 8 7 10 64 Married/Civil partnership/Living as married

1,190 10 6 5 9 70


467 15 7 4 8 66


909 10 7 6 10 68


461 4 5 6 11 74


FIGURE 30: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED – FURNITURE STORE, BY DEMOGRAPHICS, DECEMBER 2013 Base: 2,000 internet users aged 16+ Sample


few times a month

Once a month



three months

Have not visited a

café/ restaurant


months % % % % %

All 2,000 7 6 7 15 65 Gender: Male 1,000 8 8 8 15 61 Female 1,000 5 4 6 16 69 Age: 16-24 344 9 10 8 18 54 25-34 381 17 13 13 18 39 35-44 379 7 5 8 17 63 45-54 370 3 2 3 15 76 55-64 266 - 2 2 12 85 65+ 260 - 2 3 10 85 Region: Inner and Greater London 271 14 11 11 17 47 South East/East Anglia 496 6 3 6 14 71 South West and Wales 267 4 8 5 13 70 East and West Midlands 326 7 6 6 16 65 North West 204 7 5 5 18 66 Yorkshire, Humberside 172 4 7 6 13 69 North and Scotland 264 5 5 7 17 66



Area you live: Urban location (ie living in a town/city)

786 11 8 9 16 56


836 4 6 6 15 69


850 11 8 9 17 54


287 7 5 5 15 68

Any self-employed 137 4 1 8 20 66 In full-time education 191 4 12 5 19 61 Retired 339 - 2 2 10 86 Not working for any other reason 196 3 2 6 10 79 Socio-economic group: ABC1 1,155 7 8 8 17 61 AB 578 12 8 7 17 56 C1 577 3 7 8 16 66 C2DE 845 6 4 6 14 71 C2 414 6 5 7 18 64 D 290 7 3 5 9 76 E 141 2 1 3 11 84 Education: No formal qualification 112 5 3 3 8 81 GCSE/O-level or equivalent 480 4 4 4 16 72 AS/A-level or equivalent 303 5 7 7 16 66 Vocational qualification (eg NVQs, BTEC)

295 4 3 6 17 71


551 12 8 10 16 54


701 9 8 7 18 58


177 6 8 10 10 67


348 5 3 8 14 70


178 8 3 4 17 69




1,190 7 6 7 15 65


467 13 7 6 14 61


909 6 7 8 17 63


461 3 4 7 17 69


FIGURE 31: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED – GARDEN CENTRE, BY DEMOGRAPHICS, DECEMBER 2013 Base: 2,000 internet users aged 16+ Sample


few times a month

Once a month

Once every

two/three months


three months

Have not visited a

café/ restaurant


months % % % % %

All 2,000 8 7 10 21 55 Gender: Male 1,000 9 8 12 18 53 Female 1,000 6 6 9 23 57 Age: 16-24 344 10 7 10 20 54 25-34 381 16 10 13 21 39 35-44 379 5 6 11 19 59 45-54 370 4 6 6 20 64 55-64 266 5 3 9 22 61 65+ 260 3 7 13 23 54



Region: Inner and Greater London 271 13 8 10 21 48 South East/East Anglia 496 7 5 12 19 56 South West and Wales 267 6 8 11 21 54 East and West Midlands 326 8 9 8 23 52 North West 204 6 5 11 17 61 Yorkshire, Humberside 172 6 8 6 20 60 North and Scotland 264 8 3 12 23 54 Area you live: Urban location (ie living in a town/city)

786 11 7 11 19 53


836 6 7 10 21 56


850 11 7 12 21 50


287 8 9 8 19 55


295 5 7 9 24 55


551 13 7 12 21 46

Gross annual household income: Under £9,500 127 7 5 5 13 70 £9,500-15,499 298 8 6 9 17 60 £15,500-24,999 438 6 8 9 21 56 £25,000-49,999 696 7 6 13 24 51 £50,000 or over 287 14 9 10 22 45 Don’t know/Refused 154 6 5 9 14 66



Housing situation: My home is being bought on a mortgage

701 10 8 11 22 49


177 8 4 10 11 66


348 4 5 8 20 63


178 6 3 6 16 69


1,190 8 7 11 22 52


467 14 7 10 19 50


909 7 7 12 22 52


461 3 5 8 22 62




FIGURE 32: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED – BOOKSTORE, BY DEMOGRAPHICS, DECEMBER 2013 Base: 2,000 internet users aged 16+ Sample

size At least once a

week/A few times a month

Once a month



three months

Have not visited a

café/ restaurant



836 4 6 7 11 71


287 6 6 9 10 69


295 4 3 5 13 75


551 13 8 8 15 56




701 9 8 8 13 63


178 7 3 3 13 74


1,190 7 6 7 12 68

Separated, divorced or widowed 208 - 3 3 11 83 Financial situation: Healthy – I have money left at the end of the month for a few luxuries or to add to my savings

467 12 7 7 13 61


909 6 7 7 13 67


461 4 4 6 14 72


SOURCE: GMI/MINTEL



FIGURE 33: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED – OTHER SHOP, BY DEMOGRAPHICS, DECEMBER



few times a month

Once a month



three months

Have not visited a

café/ restaurant


months % % % % %


786 11 8 6 12 62


836 5 6 6 8 75


850 11 10 8 12 59


287 7 4 7 9 72

Any self-employed 137 4 1 6 13 75 In full-time education 191 8 7 6 10 69 Retired 339 2 1 1 5 90 Not working for any other reason 196 2 3 3 7 85




295 6 4 6 9 75


551 13 8 7 10 62


701 10 7 7 11 66


177 8 6 8 10 68


348 5 5 4 9 76


178 6 6 6 8 74


1,190 7 7 6 9 71





467 11 8 6 10 65


909 7 7 6 12 68


461 3 4 7 9 77


FIGURE 34: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED – SHOPPING CENTRE, BY DEMOGRAPHICS, DECEMBER 2013 Base: 2,000 internet users aged 16+ Sample


few times a month

Once a month



three months

Have not visited a

café/ restaurant


months % % % % %


786 20 16 14 17 33


836 13 12 14 20 41

Village-Rural location/Other 378 7 13 15 22 44



Working status: Employee full-time (30+ hours/week)

850 19 15 14 18 34


287 17 15 16 15 37


295 13 11 14 24 39


551 20 17 13 19 31


701 19 14 14 19 35


177 15 17 15 12 42


348 11 13 17 19 39


178 16 15 12 16 41

Presence of own children: Aged 0-4 207 24 21 14 15 26 Aged 5-9 225 30 19 17 16 18 Aged 10-15 407 24 17 16 15 29 Aged 16-18 312 16 13 16 18 37 Any children 792 21 17 16 16 30 No children in household 1,208 10 11 14 21 44 Household size: 1 314 9 13 9 20 49 2 668 11 13 14 20 41 3 415 15 11 15 20 38 4 389 17 18 19 17 29 5 or more 214 26 13 13 16 32



Current marital status: Single 602 16 15 15 19 35 Married/Civil partnership/Living as married

1,190 15 14 15 18 38


467 19 12 14 19 36


909 15 15 15 19 35


461 10 13 15 21 42


FIGURE 35: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED – MOTORWAY SERVICE AREAS/PETROL STATIONS, BY

DEMOGRAPHICS, DECEMBER 2013 Base: 2,000 internet users aged 16+ Sample


few times a month

Once a month



three months

Have not visited a

café/ restaurant


months % % % % %

All 2,000 9 7 11 24 49 Gender: Male 1,000 11 9 12 22 46 Female 1,000 6 6 10 26 52 Age: 16-24 344 10 11 13 23 42 25-34 381 21 13 14 22 30 35-44 379 8 8 12 23 49 45-54 370 5 3 9 25 58 55-64 266 2 3 8 25 62 65+ 260 1 2 9 27 60 Region: Inner and Greater London 271 18 10 12 23 36 South East/East Anglia 496 7 7 9 25 51 South West and Wales 267 7 7 11 25 50 East and West Midlands 326 9 5 15 24 47 North West 204 6 7 10 24 53 Yorkshire, Humberside 172 5 10 13 20 51 North and Scotland 264 6 6 8 24 55




786 14 9 13 21 43


836 6 7 10 24 53


850 13 9 12 24 42


287 8 8 13 21 49


295 5 3 11 29 52


551 14 9 13 24 39


701 12 8 13 24 43


177 7 11 12 15 54


348 6 7 12 25 49


178 7 4 6 22 60




1,190 10 7 11 25 47


467 15 7 10 22 45


909 7 8 13 26 45


461 6 5 9 26 54


FIGURE 36: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED – TRAIN STATIONS, BY DEMOGRAPHICS, DECEMBER



few times a month

Once a month



three months

Have not visited a

café/ restaurant


months % % % % %

All 2,000 9 7 9 21 54 Gender: Male 1,000 11 9 11 19 50 Female 1,000 6 6 7 23 58 Age: 16-24 344 15 11 13 20 41 25-34 381 22 13 13 22 30 35-44 379 6 9 9 21 54 45-54 370 2 5 6 23 64 55-64 266 2 3 8 20 67 65+ 260 - 1 3 20 76



Region: Inner and Greater London 271 22 13 10 23 32 South East/East Anglia 496 8 6 8 19 59 South West and Wales 267 8 5 8 19 60 East and West Midlands 326 6 7 11 22 55 North West 204 8 7 8 22 56 Yorkshire, Humberside 172 6 7 10 23 53 North and Scotland 264 4 8 7 24 57 Area you live: Urban location (ie living in a town/city)

786 15 10 11 23 41


836 5 7 8 20 61


850 14 10 11 21 44


287 8 8 7 25 52

Any self-employed 137 7 3 9 22 59 In full-time education 191 10 14 12 20 43 Retired 339 - 1 5 20 74 Not working for any other reason 196 3 2 7 19 70 Socio-economic group: ABC1 1,155 10 9 10 22 48 AB 578 15 11 10 23 40 C1 577 6 7 10 22 56 C2DE 845 6 5 7 20 61 C2 414 8 8 9 23 53 D 290 7 3 6 19 64 E 141 1 1 4 14 79 Education: No formal qualification 112 5 3 4 19 70 GCSE/O-level or equivalent 480 4 6 8 19 63 AS/A-level or equivalent 303 9 7 11 22 51 Vocational qualification (eg NVQs, BTEC)

295 5 3 6 23 62


551 15 11 11 22 42

Gross annual household income: Under £9,500 127 6 6 6 13 69 £9,500-15,499 298 7 6 7 16 64 £15,500-24,999 438 8 5 6 23 58 £25,000-49,999 696 7 9 11 23 49 £50,000 or over 287 19 9 10 23 39 Don’t know/Refused 154 4 8 8 21 58




701 10 9 10 22 49


177 7 6 9 20 57


348 9 8 11 22 50


178 9 6 5 20 60


1,190 8 8 8 20 56


467 16 6 9 18 51


909 7 8 11 23 50


461 6 6 7 22 59




FIGURE 37: IN-STORE AND TRANSPORT HUB CATERING OUTLETS VISITED – AIRPORTS, BY DEMOGRAPHICS, DECEMBER 2013 Base: 2,000 internet users aged 16+ Sample


few times a month

Once a month



three months

Have not visited a

café/ restaurant


months % % % % % All 2,000 7 5 7 28 54 Gender: Male 1,000 9 6 8 27 51 Female 1,000 5 4 6 29 57 Age: 16-24 344 12 6 8 25 49 25-34 381 18 11 10 29 33 35-44 379 4 6 9 26 56 45-54 370 2 2 4 27 66 55-64 266 1 - 5 35 59 65+ 260 - - 3 30 67 Region: Inner and Greater London 271 18 7 9 31 34 South East/East Anglia 496 5 4 6 28 57 South West and Wales 267 5 4 7 23 62 East and West Midlands 326 6 5 6 25 58 North West 204 5 4 5 30 55 Yorkshire, Humberside 172 4 5 7 31 53 North and Scotland 264 3 4 8 29 56 Area you live: Urban location (ie living in a town/city) 786 12 6 9 27 46 Suburban location (ie close to town/city but living outside a town/city)

836 3 5 6 28 58


287 7 5 5 27 57

Any self-employed 137 4 1 9 24 61 In full-time education 191 7 7 8 26 52 Retired 339 - - 4 33 63 Not working for any other reason 196 3 1 3 20 73 Socio-economic group: ABC1 1,155 8 6 8 31 47 AB 578 12 8 8 34 38 C1 577 4 5 7 29 56 C2DE 845 5 2 6 24 63 C2 414 6 3 7 29 55 D 290 5 3 4 19 68 E 141 2 - 4 17 77 Education: No formal qualification 112 6 2 3 26 63 GCSE/O-level or equivalent 480 4 2 4 22 68 AS/A-level or equivalent 303 6 4 8 25 56 Vocational qualification (eg NVQs, BTEC)

295 2 3 5 31 59


551 12 7 10 34 38




701 8 6 6 32 47


178 6 3 4 18 70


1,190 7 5 7 30 52

Separated, divorced or widowed 208 - 3 4 24 69 Financial situation: Healthy – I have money left at the end of the month for a few luxuries or to add to my savings

467 14 5 9 30 43


909 5 5 7 31 51


461 4 3 5 26 62


SOURCE: GMI/MINTEL

Appendix – Reasons for Using In-Store and Non High Street Foodservice Trends Transport Hub Catering Outlets UK, March 2014


Appendix – Reasons for Using In-Store and Transport

Hub Catering Outlets FIGURE 38: REASONS FOR VISITING IN-STORE AND TRANSPORT HUB CATERING OUTLETS, DECEMBER 2013




variety store



Sample size 1,111 1,049 1,021 925 % % % %

To grab a quick drink/bite to eat

44 35 44 40

For a treat 24 26 10 9 As a last resort 11 7 17 11 To relax and unwind 23 26 19 10 To take advantage of promotional deals

9 10 7 6




FIGURE 39: MOST POPULAR REASONS FOR VISITING IN-STORE AND TRANSPORT HUB CATERING OUTLETS – SUPERMARKET

CAFÉ/RESTAURANT, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,111 internet users aged 16+ who have visited a café/restaurant at supermarket in the last 12 months Sample

size To grab a

quick drink/ bite to eat

For a treat

To relax and

unwind

To kill time

The food/drink

looks appealing

% % % % %

All 1,111 44 24 23 16 12 Gender: Male 572 41 23 24 20 13 Female 539 47 27 23 12 11 Age: 16-24 214 42 26 14 21 13 25-34 262 34 30 25 19 16 35-44 208 44 20 26 17 12 45-54 176 52 27 24 16 9 55-64 115 56 22 23 15 7 65+ 136 47 17 30 4 12 Region: Inner and Greater London 175 38 31 24 17 15 South East-East Anglia 251 47 22 23 16 11 South West and Wales 152 45 23 22 14 12 East and West Midlands 184 43 19 22 15 10 North West 114 44 31 32 18 9 Yorkshire and Humberside* 91 47 29 18 15 15 North and Scotland 144 43 21 25 20 12 Area you live: Urban location (ie living in a town/city) 480 39 26 27 19 14 Suburban location (ie close to town/city but living outside a town/city)

436 46 25 21 14 11

Village-Rural location/Other 195 51 18 21 14 8 Working status: Employee full-time (30+ hours/week) 499 39 26 22 20 15 Employee part-time/Self-employed 239 45 26 28 15 9 In full-time education/Retired/Not working for any other reason

373 50 21 23 12 10

Socio-economic group: ABC1 662 44 23 22 17 13 AB 357 43 21 23 19 15 C1 305 45 26 20 14 10 C2DE 449 45 27 26 16 10 C2 240 50 28 24 19 8 D 141 36 28 31 16 13 DE 209 38 25 27 12 13 Education: GCSE/O-level or equivalent 255 46 21 24 15 10 AS/A-level or equivalent 161 42 24 25 15 14 Vocational qualification (eg NVQs, BTEC)

161 47 25 23 16 11

Further qualification (HNCs, HNDs)* 76 53 26 17 13 11 University degree (including undergraduate and masters degrees)

335 42 24 23 18 13



Gross annual household income: Under £15,500 219 36 26 25 15 11 £15,500-24,999 240 41 26 23 15 11 £25,000-49,999 404 49 23 23 16 10 £50,000 or over 171 44 24 24 21 15 Don’t know/Refused* 77 48 25 19 18 18 Housing situation: My home is being bought on a mortgage

413 46 24 24 20 12

My home is owned outright 330 43 18 25 11 12 My home is rented/Other 368 42 31 21 17 12 Presence of own children: Aged 0-4 153 41 25 27 17 18 Aged 5-9 178 37 29 31 22 14 Aged 10-15 268 41 25 29 20 15 Aged 16-18 174 47 21 26 20 11 Any children 522 41 25 27 19 14 No children in household 589 47 24 20 14 10 Household size: 1 or 2 486 45 23 21 13 13 3 230 45 25 27 16 11 4 250 45 26 25 20 11 5 or more 145 37 24 25 21 12 Current marital status: Single 338 38 22 20 19 14 Married/Civil partnership/Living as married

674 47 25 25 16 11

Separated, divorced or widowed* 99 47 31 25 12 10 Financial situation: Healthy 267 40 24 29 17 17 OK 522 43 24 23 16 12 Tight/Struggling/In trouble 322 48 26 20 16 7 * small sub-sample (75-100) SOURCE: GMI/MINTEL



FIGURE 40: NEXT MOST POPULAR REASONS FOR VISITING IN-STORE AND TRANSPORT HUB CATERING OUTLETS –

SUPERMARKET CAFÉ/RESTAURANT, BY DEMOGRAPHICS, DECEMBER 2013 1,111 internet users aged 16+ who have visited a café/restaurant at supermarket in the last 12 months Sample

size As a last

resort The food outlet(s)

look inviting

To take advantage of promotional

deals

None of these

% % % %

All 1,111 11 10 9 10 Gender: Male 572 13 13 9 9 Female 539 7 7 9 10 Age: 16-24 214 11 11 9 11 25-34 262 15 16 15 12 35-44 208 13 7 7 10 45-54 176 9 6 7 5 55-64 115 4 5 5 6 65+ 136 5 7 7 10 Region: Inner and Greater London 175 12 16 11 12 South East-East Anglia 251 8 8 8 9 South West and Wales 152 9 9 11 7 East and West Midlands 184 14 10 10 14 North West 114 10 7 6 8 Yorkshire and Humberside* 91 11 9 7 8 North and Scotland 144 11 8 10 8 Area you live: Urban location (ie living in a town/city) 480 12 13 12 11 Suburban location (ie close to town/city but living outside a town/city)

436 10 9 7 9

Village-Rural location/Other 195 8 5 8 9 Working status: Employee full-time (30+ hours/week) 499 13 13 12 10 Employee part-time/Self-employed 239 13 6 8 6 In full-time education/Retired/Not working for any other reason

373 6 7 6 11

Socio-economic group: ABC1 662 12 10 10 10 AB 357 12 13 12 9 C1 305 12 7 8 11 C2DE 449 8 9 8 10 C2 240 9 10 10 9 D 141 9 10 9 7 DE 209 7 9 6 10 Education: GCSE/O-level or equivalent 255 7 8 5 11 AS/A-level or equivalent 161 9 7 11 7 Vocational qualification (eg NVQs, BTEC) 161 7 8 9 7 Further qualification (HNCs, HNDs)* 76 16 8 7 8 University degree (including undergraduate and masters degrees)

335 15 13 12 10



Gross annual household income: Under £15,500 219 9 7 7 13 £15,500-24,999 240 10 11 10 11 £25,000-49,999 404 10 10 9 7 £50,000 or over 171 15 13 11 10 Don’t know/Refused* 77 6 6 12 10 Housing situation: My home is being bought on a mortgage 413 13 10 9 7 My home is owned outright 330 8 8 9 11 My home is rented/Other 368 10 11 10 11 Presence of own children: Aged 0-4 153 20 19 18 8 Aged 5-9 178 16 12 13 6 Aged 10-15 268 13 10 10 6 Aged 16-18 174 9 7 11 8 Any children 522 14 12 12 7 No children in household 589 7 7 7 12 Household size: 1 or 2 486 8 8 7 10 3 230 12 14 10 11 4 250 11 8 8 6 5 or more 145 16 10 16 10 Current marital status: Single 338 10 11 11 14 Married/Civil partnership/Living as married 674 11 10 9 8 Separated, divorced or widowed* 99 9 6 5 8 Financial situation: Healthy 267 12 13 10 9 OK 522 10 10 10 8 Tight/Struggling/In trouble 322 10 7 8 13 * small sub-sample (75-100) SOURCE: GMI/MINTEL



FIGURE 41: MOST POPULAR REASONS FOR VISITING IN-STORE AND TRANSPORT HUB CATERING OUTLETS – CAFÉ/RESTAURANT

IN A DEPARTMENT/VARIETY STORE, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,049 internet users aged 16+ who have visited a café/restaurant in a department/variety store in the last 12 months Sample

size To grab a

quick drink/bite

to eat

To relax and

unwind

For a treat

The food/drink

looks appealing

To kill time

% % % % %

All 1,049 35 26 26 13 11 Gender: Male 517 30 25 23 12 15 Female 532 40 27 28 13 8 Age: 16-24 212 25 24 27 16 12 25-34 265 31 26 25 17 15 35-44 194 33 23 30 13 9 45-54 160 40 31 24 11 13 55-64 103 50 24 20 6 11 65+ 115 50 29 23 6 4 Region: Inner and Greater London 185 30 23 30 21 12 South East-East Anglia 242 36 22 24 12 12 South West and Wales 131 38 27 26 14 8 East and West Midlands 164 38 26 24 10 11 North West 104 34 32 28 12 13 Yorkshire and Humberside* 85 35 26 21 9 14 North and Scotland 138 36 31 27 9 10 Area you live: Urban location (ie living in a town/city) 461 27 26 28 16 12 Suburban location (ie close to town/city but living outside a town/city)

418 43 26 25 11 11


328 42 30 27 9 9

Socio-economic group: ABC1 664 37 25 25 14 12 AB 368 35 27 19 15 11 C1 296 40 24 31 12 12 C2DE 385 32 26 28 11 11 C2 227 35 25 27 13 12 D 118 25 27 31 11 12 DE 158 28 29 28 9 9 Education: GCSE/O-level or equivalent 210 30 23 28 9 13 AS/A-level or equivalent 157 36 24 24 11 13 Vocational qualification (eg NVQs, BTEC) 146 44 26 26 15 10 Further qualification (HNCs, HNDs)* 81 47 17 28 7 11 University degree (including undergraduate and masters degrees)

341 33 28 25 15 11



Gross annual household income: Under £15,500 183 28 22 27 9 9 £15,500-24,999 215 33 23 29 14 12 £25,000-49,999 390 37 28 26 13 11 £50,000 or over 191 39 27 20 14 14 Housing situation: My home is being bought on a mortgage 388 37 27 25 13 12 My home is owned outright 333 39 26 24 11 9 My home is rented/Other 328 30 25 29 14 13 Presence of own children: Aged 0-4 151 29 26 30 15 17 Aged 5-9 172 29 26 32 19 13 Aged 10-15 243 29 30 29 16 13 Aged 16-18 150 34 32 27 12 9 Any children 480 30 28 29 16 13 No children in household 569 40 24 23 10 10 Household size: 1 or 2 455 39 25 21 11 10 3 220 36 26 30 14 8 4 234 33 30 27 11 18 5 or more 140 26 21 31 18 11 Current marital status: Single 338 29 22 24 15 12 Married/Civil partnership/Living as married 623 38 27 26 12 11 Separated, divorced or widowed* 88 42 30 30 11 10 Financial situation: Healthy 270 35 29 23 15 14 OK 511 34 25 27 13 9 Tight/Struggling/In trouble 268 37 25 26 11 13 * small sub-sample (75-100) SOURCE: GMI/MINTEL




CAFÉ/RESTAURANT IN A DEPARTMENT/VARIETY STORE, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,049 internet users aged 16+ who have visited a café/restaurant in a department/variety store in the last 12 months Sample

size To take

advantage of promotional

deals

The food outlet(s)

look inviting

As a last resort

None of these

% % % %

All 1,049 10 9 7 10 Gender: Male 517 11 10 10 11 Female 532 9 8 5 9 Age: 16-24 212 11 8 12 14 25-34 265 15 14 11 11 35-44 194 9 6 5 11 45-54 160 8 11 4 6 55-64 103 5 7 3 8 65+ 115 5 5 3 9 Region: Inner and Greater London 185 12 10 12 8 South East-East Anglia 242 8 7 8 10 South West and Wales 131 10 15 8 11 East and West Midlands 164 11 7 5 14 North West 104 6 7 7 10 Yorkshire and Humberside* 85 13 12 4 11 North and Scotland 138 12 8 3 11 Area you live: Urban location (ie living in a town/city) 461 11 9 9 11 Suburban location (ie close to town/city but living outside a town/city)

418 10 9 6 9


328 8 7 6 11

Socio-economic group: ABC1 664 10 9 8 10 AB 368 9 11 8 10 C1 296 12 7 7 10 C2DE 385 10 9 6 11 C2 227 10 10 6 10 D 118 12 8 5 12 DE 158 10 8 6 12 Education: GCSE/O-level or equivalent 210 8 10 3 10 AS/A-level or equivalent 157 10 8 4 14 Vocational qualification (eg NVQs, BTEC) 146 8 10 8 10 Further qualification (HNCs, HNDs)* 81 7 1 7 7 University degree (including undergraduate and masters degrees)

341 12 11 10 8



Gross annual household income: Under £15,500 183 7 8 9 16 £15,500-24,999 215 10 8 6 10 £25,000-49,999 390 11 9 8 7 £50,000 or over 191 10 10 8 11 Housing situation: My home is being bought on a mortgage 388 9 10 9 8 My home is owned outright 333 10 5 5 11 My home is rented/Other 328 11 12 8 13 Presence of own children: Aged 0-4 151 15 13 14 7 Aged 5-9 172 13 12 13 5 Aged 10-15 243 14 10 8 6 Aged 16-18 150 12 9 7 10 Any children 480 13 12 9 8 No children in household 569 7 7 5 13 Household size: 1 or 2 455 7 8 6 12 3 220 12 12 7 12 4 234 11 9 7 7 5 or more 140 14 7 11 9 Current marital status: Single 338 10 9 9 14 Married/Civil partnership/Living as married 623 10 9 7 9 Separated, divorced or widowed* 88 7 11 1 7 Financial situation: Healthy 270 13 10 8 10 OK 511 9 8 8 10 Tight/Struggling/In trouble 268 8 10 6 12 * small sub-sample (75-100) SOURCE: GMI/MINTEL




IN A MOTORWAY SERVICE AREA/PETROL STATION, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,021 internet users aged 16+ who have visited a café/restaurant in a motorway service area/petrol station in the last 12 months Sample

size To grab a

quick drink/bite

to eat

To relax and

unwind

As a last resort

For a treat

To kill time

% % % % %

All 1,021 44 19 17 10 9 Gender: Male 538 38 21 18 12 10 Female 483 51 18 16 7 7 Age: 16-24 199 41 17 15 14 12 25-34 266 36 15 18 15 12 35-44 194 43 26 14 10 7 45-54 157 50 18 18 6 8 55-64 101 50 26 21 2 6 65+ 104 57 19 18 2 1 Region: Inner and Greater London 173 38 16 21 15 10 South East-East Anglia 242 48 19 17 9 5 South West and Wales 134 42 20 15 9 9 East and West Midlands 174 44 21 18 9 9 North West* 95 46 21 15 9 13 Yorkshire and Humberside* 84 48 15 15 5 8 North and Scotland 119 41 23 16 10 8 Area you live: Urban location (ie living in a town/city) 447 39 19 17 13 10 Suburban location (ie close to town/city but living outside a town/city)

395 48 21 17 7 8


313 49 18 18 7 8

Socio-economic group: ABC1 646 45 18 17 10 8 AB 357 43 18 17 11 8 C1 289 47 18 16 9 8 C2DE 375 42 22 18 10 10 C2 214 43 22 19 9 9 D 118 39 23 18 12 9 DE 161 41 21 16 11 10 Education: GCSE/O-level or equivalent 204 43 24 16 11 7 AS/A-level or equivalent 156 48 21 11 9 9 Vocational qualification (eg NVQs, BTEC) 141 49 24 17 6 6 University degree (including undergraduate and masters degrees)

334 39 17 19 11 9



Gross annual household income: Under £15,500 155 41 17 19 14 10 £15,500-24,999 216 41 19 15 8 10 £25,000-49,999 398 49 20 15 9 8 £50,000 or over 184 40 20 21 13 9 Housing situation: My home is being bought on a mortgage 400 43 22 18 13 10 My home is owned outright 293 42 19 15 7 5 My home is rented/Other 328 47 17 18 9 10 Presence of own children: Aged 0-4 139 40 21 18 17 14 Aged 5-9 163 31 18 18 13 12 Aged 10-15 250 36 26 18 10 8 Aged 16-18 162 44 21 15 7 7 Any children 480 39 21 18 11 10 No children in household 541 49 18 17 9 8 Household size: 1 or 2 442 49 18 18 9 7 3 213 42 18 16 11 8 4 232 39 22 19 11 12 5 or more 134 37 22 14 10 10 Current marital status: Single 318 42 17 16 11 10 Married/Civil partnership/Living as married

626 43 21 17 10 8

Separated, divorced or widowed* 77 57 13 22 1 4 Financial situation: Healthy 255 44 20 15 11 7 OK 496 43 20 18 11 9 Tight/Struggling/In trouble 270 46 19 19 6 9 * small sub-sample (75-100) SOURCE: GMI/MINTEL




CAFÉ/RESTAURANT IN A MOTORWAY SERVICE AREA/PETROL STATION, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,021 internet users aged 16+ who have visited a café/restaurant in a motorway service area/petrol station in the last 12 months Sample

size The

food/drink looks

appealing


deals

The food outlet(s)

look inviting

None of these

% % % %

All 1,021 7 7 7 10 Gender: Male 538 10 8 8 11 Female 483 4 6 5 8 Age: 16-24 199 8 9 8 10 25-34 266 13 13 12 12 35-44 194 10 6 6 9 45-54 157 3 2 4 8 55-64 101 1 1 1 7 65+ 104 1 2 1 10 Region: Inner and Greater London 173 13 13 13 7 South East-East Anglia 242 6 7 4 8 South West and Wales 134 5 5 6 15 East and West Midlands 174 5 7 8 10 North West* 95 5 4 2 8 Yorkshire and Humberside* 84 11 6 6 12 North and Scotland 119 7 3 8 11 Area you live: Urban location (ie living in a town/city) 447 12 9 9 9 Suburban location (ie close to town/city but living outside a town/city)

395 4 7 4 10


313 3 5 3 11

Socio-economic group: ABC1 646 8 8 7 9 AB 357 10 10 9 9 C1 289 6 7 3 10 C2DE 375 6 5 7 10 C2 214 9 5 7 9 D 118 3 4 8 13 DE 161 2 4 6 12 Education: GCSE/O-level or equivalent 204 3 4 6 10 AS/A-level or equivalent 156 9 8 7 10 Vocational qualification (eg NVQs, BTEC) 141 3 6 6 11 University degree (including undergraduate and masters degrees)

334 11 9 9 8



Gross annual household income: Under £15,500 155 7 6 7 14 £15,500-24,999 216 7 6 6 10 £25,000-49,999 398 7 6 7 7 £50,000 or over 184 11 12 7 10 Housing situation: My home is being bought on a mortgage 400 8 8 8 7 My home is owned outright 293 8 6 5 13 My home is rented/Other 328 7 7 7 11 Presence of own children: Aged 0-4 139 14 10 12 9 Aged 5-9 163 17 15 11 7 Aged 10-15 250 14 9 7 8 Aged 16-18 162 7 7 6 12 Any children 480 12 10 10 9 No children in household 541 3 4 4 10 Household size: 1 or 2 442 4 5 6 10 3 213 8 7 11 13 4 232 12 9 6 7 5 or more 134 9 10 5 10 Current marital status: Single 318 6 10 7 12 Married/Civil partnership/Living as married 626 8 6 7 8 Separated, divorced or widowed* 77 3 1 1 13 Financial situation: Healthy 255 11 11 10 8 OK 496 6 6 6 8 Tight/Struggling/In trouble 270 6 4 4 14 * small sub-sample (75-100) SOURCE: GMI/MINTEL


AT A TRAIN STATION, BY DEMOGRAPHICS, DECEMBER 2013 Base: internet users aged 16+ who have visited a café/restaurant at a train station in the last 12 months Sample

size To grab a

quick drink/bite

to eat

To kill time

As a last resort

To relax and

unwind

For a treat

% % % % %

All 925 40 29 11 10 9 Gender: Male 505 37 29 11 13 10 Female 420 45 29 12 7 7 Age: 16-24 202 35 30 8 12 10 25-34 266 39 23 15 11 12 35-44 174 37 24 11 11 10 45-54 133 50 34 12 9 8 55-64* 87 45 40 9 9 1



Region: Inner and Greater London 184 41 25 15 15 15 South East-East Anglia 202 43 29 11 6 7 South West and Wales 107 37 24 18 10 6 East and West Midlands 148 35 28 8 11 9 North West* 90 41 39 7 11 6 Yorkshire and Humberside* 80 44 35 6 9 6 North and Scotland 114 41 29 12 10 9 Area you live: Urban location (ie living in a town/city) 463 36 27 13 13 11 Suburban location (ie close to town/city but living outside a town/city)

330 44 31 11 8 7


255 44 36 7 7 7

Socio-economic group: ABC1 599 43 29 12 11 7 AB 344 40 30 12 10 8 C1 255 46 28 13 12 7 C2DE 326 36 29 10 10 11 C2 194 38 31 9 8 12 D 103 33 25 12 14 11 DE 132 33 27 12 12 10 Education: GCSE/O-level or equivalent 176 43 32 8 9 7 AS/A-level or equivalent 147 40 27 6 7 10 Vocational qualification (eg NVQs, BTEC) 113 36 32 12 11 7 University degree (including undergraduate and masters degrees)

320 38 27 15 12 9

Gross annual household income: Under £15,500 147 35 29 10 7 10 £15,500-24,999 185 35 33 12 10 10 £25,000-49,999 353 47 27 10 12 8 £50,000 or over 176 38 25 16 12 7 Housing situation: My home is being bought on a mortgage 358 41 28 13 9 11 My home is owned outright 246 37 29 8 11 4 My home is rented/Other 321 42 30 13 12 9 Presence of own children: Aged 0-4 127 38 17 11 10 15 Aged 5-9 151 30 23 14 15 9 Aged 10-15 225 31 24 13 12 8 Aged 16-18 153 37 29 12 8 10 Any children 442 34 25 13 11 11 No children in household 483 46 33 10 10 6 Household size: 1 or 2 390 46 32 11 10 7 3 193 36 30 10 9 11 4 215 37 25 14 13 10 5 or more 127 35 26 10 9 9



Current marital status: Single 328 42 29 10 11 9 Married/Civil partnership/Living as married 525 39 27 12 11 9 Financial situation: Healthy 229 40 26 11 13 8 OK 452 38 29 12 11 10 Tight/Struggling/In trouble 244 45 31 11 8 6 * small sub-sample (75-100) SOURCE: GMI/MINTEL


CAFÉ/RESTAURANT AT A TRAIN STATION, BY DEMOGRAPHICS, DECEMBER 2013 Base: internet users aged 16+ who have visited a café/restaurant at a train station in the last 12 months Sample

size The

food/drink looks

appealing

The food outlet(s)

look inviting


deals

None of these

% % % %

All 925 7 7 6 10 Gender: Male 505 7 8 8 12 Female 420 8 5 4 9 Age: 16-24 202 9 7 8 12 25-34 266 11 11 11 11 35-44 174 6 7 5 13 45-54 133 3 2 3 7 55-64* 87 2 - - 6 Region: Inner and Greater London 184 8 13 11 8 South East-East Anglia 202 5 4 4 7 South West and Wales 107 8 3 5 15 East and West Midlands 148 7 5 7 13 North West* 90 9 7 9 11 Yorkshire and Humberside* 80 8 4 4 13 North and Scotland 114 7 7 3 12 Area you live: Urban location (ie living in a town/city) 463 9 7 8 10 Suburban location (ie close to town/city but living outside a town/city)

330 5 7 5 11


255 4 3 4 12



Socio-economic group: ABC1 599 9 7 7 9 AB 344 11 8 8 8 C1 255 6 4 5 10 C2DE 326 4 7 6 14 C2 194 5 8 6 14 D 103 3 4 6 15 DE 132 3 5 5 14 Education: GCSE/O-level or equivalent 176 2 7 2 11 AS/A-level or equivalent 147 8 5 7 12 Vocational qualification (eg NVQs, BTEC) 113 4 4 5 15 University degree (including undergraduate and masters degrees)

320 10 8 8 8

Gross annual household income: Under £15,500 147 6 7 5 18 £15,500-24,999 185 6 4 7 7 £25,000-49,999 353 6 8 6 8 £50,000 or over 176 10 7 9 9 Housing situation: My home is being bought on a mortgage 358 8 9 7 6 My home is owned outright 246 7 5 5 15 My home is rented/Other 321 6 5 6 12 Presence of own children: Aged 0-4 127 17 14 13 9 Aged 5-9 151 9 12 13 9 Aged 10-15 225 10 8 11 10 Aged 16-18 153 6 5 8 13 Any children 442 10 9 10 12 No children in household 483 5 4 3 10 Household size: 1 or 2 390 6 5 3 9 3 193 7 10 9 13 4 215 9 7 9 10 5 or more 127 7 7 9 10 Current marital status: Single 328 7 6 8 12 Married/Civil partnership/Living as married 525 8 8 6 10 Financial situation: Healthy 229 13 7 10 8 OK 452 6 8 6 9 Tight/Struggling/In trouble 244 3 4 4 16 * small sub-sample (75-100) SOURCE: GMI/MINTEL

Appendix – Attitudes towards In-Store and Non High Street Foodservice Trends Transport Hub Catering Outlets UK, March 2014


Appendix – Attitudes towards In-Store and Transport

Hub Catering Outlets FIGURE 47: ATTITUDES TOWARDS IN-STORE AND TRANSPORT HUB CATERING, DECEMBER 2013


Base: 1,600 internet users aged 16+ who have visited a café/restaurant at one or more of the locations in the last 12 months %

I avoid buying food/drink at locations such as motorway service stations/airports etc because it is so expensive

38

Unclean tables/facilities have put me off visiting an outlet in these locations 27 I prefer to use large chains (eg Starbucks, Costa, McDonald’s etc) because I know what to expect in terms of quality

23

I’m more likely to buy food/drink from a brand I know (eg Costa Coffee) than an unfamiliar one 21 I prefer small brands because they’re better value for money than national chains (eg Costa Coffee) 20 It’s quicker/easier to use a national chain’s outlet because I know the product range 18 I prefer outlets offering local products 17 Smaller brands tend to offer a more appealing range of products than some of the bigger chains 16 It’s worth paying more for food/drink from brands I know and trust 13 I look for something different from what I usually eat/drink when visiting these outlets 13 I often forget cafés/restaurants in these locations are there 12 None of these 13 SOURCE: GMI/MINTEL



FIGURE 48: MOST POPULAR ATTITUDES TOWARDS IN-STORE AND TRANSPORT HUB CATERING, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,600 internet users aged 16+ who have visited a café/restaurant at one or more of the locations in the last 12 months Sample

size I avoid buying

food/drink at

locations such as

motorway service

stations/ airports

etc because it

is so expensive

Unclean tables/

facilities have put

me off visiting

an outlet in these

locations

I prefer to use large

chains (eg Starbucks,

Costa, McDonald’s

etc) because I know what to expect in

terms of quality

I’m more likely to buy food/ drink

from a brand I

know (eg Costa

Coffee) than an

unfamiliar one

I prefer small

brands because they’re better

value for money than

national chains

(eg Costa

Coffee)

It’s quicker/easier to

use a national chain’s outlet

because I know

the product range

% % % % % %

All 1,600 38 27 23 21 20 18 Gender: Male 788 36 24 21 20 19 16 Female 812 40 29 25 23 20 19 Age: 16-24 288 27 25 25 23 14 18 25-34 333 30 21 24 19 20 18 35-44 298 37 26 27 19 15 19 45-54 270 42 26 24 23 19 19 55-64 197 47 38 18 22 25 14 65+ 214 51 31 13 24 30 16 Region: Inner and Greater London 238 30 30 30 24 19 21 South East/East Anglia 388 39 30 22 20 20 17 South West and Wales 198 36 26 17 21 19 17 East and West Midlands 260 40 24 17 19 22 15 North West 169 39 22 24 18 13 14 Yorkshire, Humberside 134 39 24 25 22 25 22 North and Scotland 213 40 26 24 25 20 19 Area you live: Urban location (ie living in a town/city)

670 32 24 24 20 21 16


641 41 27 22 22 19 19

Village-Rural location/Other 289 43 33 22 22 20 18 Working status: Employee full-time (30+ hours/week)

683 32 23 23 19 18 18


239 34 26 26 23 17 18

Any self-employed 102 42 32 18 17 22 12 In full-time education 163 34 28 26 26 14 20 Retired 275 52 33 13 22 31 16 Not working for any other reason

138 43 28 30 27 17 17



Socio-economic group: ABC1 960 39 29 23 23 19 18 AB 496 38 33 23 22 21 19 C1 464 39 25 23 24 18 17 C2DE 640 36 23 23 20 20 17 C2 330 36 26 24 22 21 19 D 214 33 20 24 20 18 13 E* 96 44 20 13 10 25 19 Education: No formal qualification* 85 45 27 20 18 27 26 GCSE/O-level or equivalent 367 36 22 23 17 15 15 AS/A-level or equivalent 233 33 25 26 23 17 14 Vocational qualification (eg NVQs, BTEC)

234 42 29 21 27 23 23

Further qualification (HNCs, HNDs)

118 41 30 22 19 23 18

University degree (including undergraduate and masters degrees)

476 38 28 21 21 22 17

Gross annual household income:

Under £9,500* 77 35 25 13 17 18 18 £9,500-15,499 230 37 20 19 17 22 14 £15,500-24,999 352 39 26 20 20 19 17 £25,000-49,999 580 37 26 25 25 17 18 £50,000 or over 241 38 34 28 21 22 20 Don’t know/Refused 120 36 31 19 22 28 18 Housing situation: My home is being bought on a mortgage

573 39 29 24 22 20 19

My home is owned outright 490 41 29 19 22 22 17 My home is rented from local authority

134 33 20 22 18 19 19


268 34 26 27 21 19 16


135 34 16 23 22 14 15

Presence of own children: Aged 0-4 179 31 22 25 25 17 24 Aged 5-9 208 29 25 28 21 21 20 Aged 10-15 341 35 25 26 20 19 20 Aged 16-18 250 39 28 26 21 22 19 Any children 665 33 25 25 21 19 20 No children in household 935 41 28 21 22 20 16 Household size: 1 233 36 24 21 17 18 14 2 536 44 32 20 23 23 16 3 323 35 24 25 23 16 20 4 329 33 25 25 21 19 20 5 or more 179 35 23 25 20 22 18 Current marital status: Single 484 33 24 24 21 15 17 Married/Civil partnership/Living as married

959 38 28 23 21 22 18

Separated, divorced or widowed

157 47 26 18 22 21 18




386 34 26 22 22 22 19


755 35 28 23 21 19 17


350 46 25 22 21 21 17

Struggling/In trouble 109 45 27 23 27 17 17 * small sub-sample (75-100) SOURCE: GMI/MINTEL

FIGURE 49: NEXT MOST POPULAR ATTITUDES TOWARDS IN-STORE AND TRANSPORT HUB CATERING, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,600 internet users aged 16+ who have visited a café/restaurant at one or more of the locations in the last 12 months Sample

size I prefer outlets offering

local products

Smaller brands tend to offer a more

appealing range of products

than some of

the bigger chains

It’s worth paying

more for food/ drink from

brands I know

and trust

I look for something different

from what I usually eat/drink

when visiting these

outlets

I often forget cafés/

restaurants in these

locations are there

None of these

% % % % % %

All 1,600 17 16 13 13 12 13 Gender: Male 788 17 16 14 13 13 11 Female 812 16 16 13 13 11 14 Age: 16-24 288 14 14 14 18 19 13 25-34 333 18 12 18 14 15 12 35-44 298 15 14 13 12 7 13 45-54 270 16 20 10 13 11 10 55-64 197 15 21 11 8 9 13 65+ 214 22 21 14 11 9 14 Region: Inner and Greater London 238 18 18 16 12 11 9 South East/East Anglia 388 17 16 11 11 10 14 South West and Wales 198 18 14 13 15 17 13 East and West Midlands 260 15 16 13 15 13 17 North West 169 18 13 14 15 13 9 Yorkshire, Humberside 134 12 25 15 16 9 10 North and Scotland 213 16 15 15 12 12 12




670 18 17 14 16 13 12


641 14 16 14 11 11 13


683 16 14 14 12 12 11


239 13 20 15 12 13 12

Any self-employed 102 23 13 6 17 9 14 In full-time education 163 16 15 14 20 20 13 Retired 275 21 24 15 11 8 13 Not working for any other reason

138 14 13 9 12 9 20

Socio-economic group: ABC1 960 19 16 14 14 12 11 AB 496 21 18 14 16 13 9 C1 464 16 14 14 12 12 13 C2DE 640 13 17 13 12 12 15 C2 330 17 17 15 14 12 10 D 214 8 18 11 8 13 19 E* 96 11 16 8 11 7 23 Education: No formal qualification* 85 15 21 13 14 15 12 GCSE/O-level or equivalent 367 14 13 12 12 9 18 AS/A-level or equivalent 233 9 16 14 12 14 11 Vocational qualification (eg NVQs, BTEC)

234 16 19 15 14 9 14


118 17 19 12 11 11 9


476 22 16 13 14 14 9


Under £9,500* 77 12 13 4 18 13 22 £9,500-15,499 230 15 21 16 11 13 16 £15,500-24,999 352 18 16 13 10 9 13 £25,000-49,999 580 14 14 14 13 11 10 £50,000 or over 241 23 17 16 16 13 10 Don’t know/Refused 120 20 18 9 18 18 16 Housing situation: My home is being bought on a mortgage

573 18 16 15 15 13 10

My home is owned outright 490 18 18 15 12 10 12 My home is rented from local authority

134 15 19 8 13 14 16


268 13 13 10 13 9 15


135 12 15 12 9 16 16




959 18 16 14 12 10 11

Separated, divorced or widowed

157 18 22 10 11 10 15


386 20 18 15 13 13 12


755 16 16 14 14 12 12


350 13 18 9 13 12 14

Struggling/In trouble 109 17 7 13 10 10 13 * small sub-sample (75-100) SOURCE: GMI/MINTEL

Appendix – Interest in Products/Services at Non High Street Foodservice Trends Supermarket Catering Outlets UK, March 2014


Appendix – Interest in Products/Services at

Supermarket Catering Outlets FIGURE 50: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS, ANY INTEREST, DECEMBER 2013


Base: 1,111 internet users aged 16+ who have visited a café/restaurant in a supermarket in the last 12 months Any

interest %

Lower-cost snacks (eg £1 coffee, £1 hot dog) 82 Made to order food (eg sandwiches, salads) 77 More comfortable seating areas (eg sofas) 75 Quick to eat, convenient savoury snacks (eg sausage rolls, pizza slices) 70 A coffee shop/restaurant more clearly separated from the shop (eg separate entrance) 68 Wider range of breakfast items (eg pancake stacks) 67 Coffee/hot drinks to take away 67 Grab and go hot food (eg hot sandwiches, chips, portable porridge) 65 Well known/high street coffee shop/restaurant brand (eg Pizza Express) 64 Being able to take hot drinks (eg in takeaway cups) around the store while you shop 55 Coffee vendor in car park/outside café/restaurant 50 Table waiter service 50 SOURCE: GMI/MINTEL

FIGURE 51: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS, DECEMBER 2013


Base: 1,111 internet users aged 16+ who have visited a café/restaurant in a supermarket in the last 12 months Very

interested Somewhat interested

Not very interested

Not at all interested

% % % %

Lower-cost snacks (eg £1 coffee, £1 hot dog) 33 49 13 5 Made to order food (eg sandwiches, salads) 21 56 18 5 More comfortable seating areas (eg sofas) 22 54 20 4 Quick to eat, convenient savoury snacks (eg sausage rolls, pizza slices)

20 50 22 8

A coffee shop/restaurant more clearly separated from the shop (eg separate entrance)

19 49 25 7

Wider range of breakfast items (eg pancake stacks) 18 49 24 9 Coffee/hot drinks to take away 21 46 23 10 Grab and go hot food (eg hot sandwiches, chips, portable porridge)

20 45 25 10

Well known/high street coffee shop/restaurant brand (eg Pizza Express)

17 47 26 10

Being able to take hot drinks (eg in takeaway cups) around the store while you shop

18 37 26 19

Coffee vendor in car park/outside café/restaurant 14 36 31 19 Table waiter service 13 37 35 15 SOURCE: GMI/MINTEL



FIGURE 52: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS – LOWER-COST SNACKS, BY

DEMOGRAPHICS, DECEMBER 2013 Base: 1,111 internet users aged 16+ who have visited a café/restaurant in a supermarket in the last 12 months Sample

size Any

interested Very


Any uninterested

Not very interested


% % % % % % All 1,111 82 33 49 18 13 5 Gender: Male 572 80 34 46 20 15 6 Female 539 84 33 52 16 11 5 Age: 16-24 214 82 34 48 18 14 4 25-34 262 88 39 48 12 10 2 35-44 208 86 35 50 14 9 5 45-54 176 80 32 48 20 14 7 55-64 115 77 30 47 23 18 4 65+ 136 72 23 49 28 15 13 Region: Inner and Greater London 175 92 36 56 8 7 1 South East/East Anglia 251 80 33 47 20 15 5 South West and Wales 152 76 32 43 24 19 5 East and West Midlands 184 77 30 47 23 15 9 North West 114 83 39 44 17 8 9 Yorkshire, Humberside* 91 86 33 53 14 10 4 North and Scotland 144 82 32 50 18 14 4 Area you live: Urban location (ie living in a town/city)

480 83 36 47 17 12 5


436 83 33 50 17 12 5


499 84 34 50 16 12 4

Employee part-time (less than 30 hours/week)/Self-employed

239 81 35 46 19 13 6

In full-time education 112 84 38 46 16 13 3 Retired 172 74 23 51 26 16 10 Not working for any other reason*

89 87 40 46 13 11 2

Socio-economic group: ABC1 662 80 32 48 20 14 6 AB 357 82 33 49 18 13 5 C1 305 79 32 47 21 15 6 C2DE 449 84 35 49 16 11 5 C2 240 83 36 47 17 13 4 DE 209 86 33 53 14 9 5 Education: GCSE/O-level or equivalent 255 82 34 48 18 11 7 AS/A-level or equivalent 161 85 37 48 15 12 2 Vocational qualification (eg NVQs, BTEC)

161 81 35 46 19 14 5

Further qualification (HNCs, HNDs)*

76 76 25 51 24 14 9


335 83 33 50 17 12 5




Under £15,500 219 83 35 48 17 12 5 £15,500-24,999 240 85 35 50 15 10 5 £25,000-49,999 404 81 31 50 19 14 4 £50,000 or over 171 77 34 43 23 16 7 Don’t know/Refused* 77 83 36 47 17 8 9 Housing situation: My home is being bought on a mortgage

413 83 37 46 17 12 5

My home is owned outright 330 75 25 50 25 18 7 My home is rented from local authority*

95 82 38 44 18 12 6


174 88 34 53 12 9 3

My home is rented from housing association/other*

99 90 39 51 10 8 2


674 83 33 50 17 12 5

Separated, divorced or widowed*

99 71 24 46 29 19 10

Financial situation: Healthy 267 80 33 47 20 12 8 OK 522 82 32 50 18 14 3 Tight/Struggling/In trouble 322 83 35 47 17 11 6

* small sub-sample (75-100) SOURCE: GMI/MINTEL



FIGURE 53: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS – MADE TO ORDER FOOD, BY


size Any

interested Very


Any uninterested

Not very interested


% % % % % All 1,111 77 21 56 23 18 5 Gender: Male 572 74 22 52 26 21 5 Female 539 80 20 59 20 15 5 Age: 16-24 214 74 21 54 26 22 4 25-34 262 84 29 56 16 14 2 35-44 208 81 20 61 19 16 3 45-54 176 73 18 55 27 20 7 55-64 115 71 22 50 29 19 10 65+ 136 68 12 57 32 21 10 Region: Inner and Greater London 175 81 23 57 19 18 1 South East/East Anglia 251 80 22 59 20 17 3 South West and Wales 152 75 20 55 25 18 7 East and West Midlands 184 68 18 51 32 22 10 North West 114 82 25 57 18 13 4 Yorkshire, Humberside* 91 69 18 52 31 24 7 North and Scotland 144 77 20 57 23 17 6 Area you live: Urban location (ie living in a town/city) 480 79 24 54 21 17 4 Suburban location (ie close to town/city but living outside a town/city)

436 78 20 57 22 17 5

Village-Rural location/Other 195 69 14 55 31 24 8 Working status: Employee full-time (30+ hours/week) 499 80 25 54 20 16 4 Employee part-time (less than 30 hours/week)/Self-employed

239 77 19 59 23 18 4

In full-time education 112 73 18 55 27 22 4 Retired 172 69 15 53 31 20 11 Not working for any other reason* 89 78 18 60 22 19 3 Socio-economic group: ABC1 662 76 20 55 24 19 5 AB 357 76 25 52 24 20 3 C1 305 75 15 60 25 18 7 C2DE 449 78 22 56 22 17 5 C2 240 81 21 60 19 15 4 DE 209 75 23 52 25 18 7 Education: GCSE/O-level or equivalent 255 75 22 53 25 17 8 AS/A-level or equivalent 161 81 18 63 19 16 2 Vocational qualification (eg NVQs, BTEC)

161 75 18 57 25 20 6

Further qualification (HNCs, HNDs)* 76 71 16 55 29 25 4 University degree (including undergraduate and masters degrees)

335 79 22 57 21 17 4

Gross annual household income: Under £15,500 219 68 21 47 32 22 10 £15,500-24,999 240 82 23 60 18 14 4 £25,000-49,999 404 79 20 59 21 18 3 £50,000 or over 171 78 25 54 22 18 4 Don’t know/Refused* 77 69 17 52 31 23 8




413 79 23 57 21 16 5


95 76 27 48 24 16 8


174 80 21 59 20 17 2


99 79 25 54 21 16 5


674 78 22 56 22 17 5

Separated, divorced or widowed* 99 67 14 53 33 22 11 Financial situation: Healthy 267 76 27 48 24 18 6 OK 522 80 19 61 20 16 4 Tight/Struggling/In trouble 322 73 19 54 27 21 6




FIGURE 54: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS – MORE COMFORTABLE SEATING AREAS, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,111 internet users aged 16+ who have visited a café/restaurant in a supermarket in the last 12 months Sample

size Any

interested Very


Any uninterested

Not very interested


% % % % % % All 1,111 75 22 54 25 20 4 Gender: Male 572 74 22 52 26 21 5 Female 539 77 21 55 23 20 3 Age: 16-24 214 80 25 55 20 17 3 25-34 262 83 26 57 17 15 2 35-44 208 79 23 57 21 18 3 45-54 176 71 20 51 29 22 7 55-64 115 70 17 54 30 27 3 65+ 136 57 13 44 43 32 10 Region: Inner and Greater London 175 85 21 64 15 15 1 South East/East Anglia 251 76 22 55 24 20 3 South West and Wales 152 76 23 53 24 20 4 East and West Midlands 184 70 23 47 30 22 8 North West 114 73 21 52 27 23 4 Yorkshire, Humberside* 91 71 19 53 29 23 5 North and Scotland 144 73 23 50 27 22 6 Area you live: Urban location (ie living in a town/city) 480 80 24 56 20 17 3 Suburban location (ie close to town/city but living outside a town/city)

436 72 19 53 28 23 5


239 79 21 58 21 17 4


161 76 17 59 24 21 3


335 81 27 53 19 17 3





413 78 23 55 22 18 4


95 74 28 45 26 22 4


174 82 28 54 18 16 2


99 81 23 58 19 14 5


674 74 20 54 26 21 4



FIGURE 55: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS – QUICK TO EAT, CONVENIENT SAVOURY

SNACKS, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,111 internet users aged 16+ who have visited a café/restaurant in a supermarket in the last 12 months Sample

size Any

interested Very


Any uninterested

Not very interested


% % % % % % All 1,111 70 20 50 30 22 8 Gender: Male 572 72 22 50 28 21 7 Female 539 68 18 50 32 23 9 Age: 16-24 214 76 24 52 24 21 3 25-34 262 84 32 52 16 14 2 35-44 208 77 21 56 23 18 5 45-54 176 67 12 55 33 24 9 55-64 115 58 13 45 42 25 17 65+ 136 38 7 30 63 38 24



Region: Inner and Greater London 175 79 22 57 21 18 3 South East/East Anglia 251 67 19 49 33 24 8 South West and Wales 152 63 18 45 38 27 11 East and West Midlands 184 67 22 45 33 22 11 North West 114 75 24 51 25 18 7 Yorkshire, Humberside* 91 73 20 53 27 19 9 North and Scotland 144 70 18 52 30 22 8 Area you live: Urban location (ie living in a town/city) 480 75 24 51 25 19 6 Suburban location (ie close to town/city but living outside a town/city)

436 69 19 51 31 22 8


239 69 18 51 31 22 9


161 61 17 44 39 30 9


335 73 23 50 27 19 9

Gross annual household income: Under £15,500 219 66 20 46 34 23 11 £15,500-24,999 240 68 20 48 33 25 8 £25,000-49,999 404 73 20 53 27 20 7 £50,000 or over 171 72 23 49 28 20 8 Don’t know/Refused* 77 69 19 49 31 23 8 Housing situation: My home is being bought on a mortgage

413 73 23 51 27 20 7


95 79 31 48 21 14 7


174 74 17 56 26 22 4


99 78 23 55 22 15 7

Presence of own children: Aged 0-4 153 84 43 41 16 12 4 Aged 5-9 178 82 34 48 18 15 3 Aged 10-15 268 80 27 53 20 16 4 Aged 16-18 174 73 22 51 27 21 6 Any children 522 79 28 51 21 16 5 No children in household 589 62 13 49 38 27 11



Household size: 1 146 56 13 43 44 27 16 2 340 63 14 49 37 26 11 3 230 77 24 52 23 20 4 4 250 78 22 56 22 16 6 5 or more 145 76 32 44 24 21 3 Current marital status: Single 338 74 25 49 26 21 5 Married/Civil partnership/Living as married

674 71 20 51 29 20 9



FIGURE 56: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS – A COFFEE SHOP/RESTAURANT MORE

CLEARLY SEPARATED FROM THE SHOP, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,111 internet users aged 16+ who have visited a café/restaurant in a supermarket in the last 12 months Sample

size Any

interested Very


Any uninterested

Not very interested



436 65 15 50 35 28 7


239 62 17 46 38 31 7

In full-time education 112 65 16 49 35 29 5 Retired 172 57 12 45 43 30 13 Not working for any other reason* 89 67 19 48 33 31 1




161 69 15 54 31 24 7


335 73 23 50 27 21 6


413 70 22 47 30 23 7


95 65 24 41 35 27 7


174 75 18 57 25 21 3


99 71 17 54 29 24 5


674 70 19 50 30 23 7





FIGURE 57: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS – WIDER RANGE OF BREAKFAST ITEMS, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,111 internet users aged 16+ who have visited a café/restaurant in a supermarket in the last 12 months Sample

size Any

interested Very


Any uninterested

Not very interested



436 65 16 50 35 25 9


239 69 17 52 31 22 9


161 68 17 52 32 23 9


335 71 19 52 29 21 7





413 72 20 53 28 21 7


95 76 27 48 24 17 7


174 72 18 55 28 23 5


99 70 20 49 30 21 9


674 65 18 47 35 26 9





FIGURE 58: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS – COFFEE/HOT DRINKS TO TAKE AWAY, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,111 internet users aged 16+ who have visited a café/restaurant in a supermarket in the last 12 months Sample

size Any

interested Very


Any uninterested

Not very interested



436 62 17 45 38 26 11


239 70 23 46 30 22 8


161 65 17 48 35 25 10


335 72 23 49 28 20 8





413 73 22 51 27 19 8


95 74 26 47 26 18 8


174 74 24 49 26 21 5


99 73 27 45 27 18 9


674 66 20 46 34 23 10





FIGURE 59: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS – GRAB AND GO HOT FOOD, BY


size Any

interested Very


Any uninterested

Not very interested



436 62 17 45 38 28 10


239 69 20 49 31 22 10


161 61 16 45 39 27 12


335 72 21 51 28 20 8





413 71 23 48 29 22 8


95 71 31 40 29 18 12


174 74 21 53 26 22 5


99 72 20 52 28 20 8


674 64 18 46 36 25 11



FIGURE 60: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS – WELL KNOWN/HIGH STREET COFFEE

SHOP/RESTAURANT BRAND, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,111 internet users aged 16+ who have visited a café/restaurant in a supermarket in the last 12 months Sample

size Any

interested Very


Any uninterested

Not very interested






436 60 11 48 40 28 12


239 66 18 48 34 23 11


161 55 12 43 45 34 11


335 72 19 53 28 21 7


413 70 20 50 30 23 7


95 68 22 46 32 22 9


174 66 16 50 34 28 6


99 69 22 46 31 23 8





674 65 17 49 35 25 10



FIGURE 61: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS – BEING ABLE TO TAKE HOT DRINKS

AROUND THE STORE WHILE YOU SHOP, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,111 internet users aged 16+ who have visited a café/restaurant in a supermarket in the last 12 months Sample

size Any

interested Very


Any uninterested

Not very interested



436 47 14 33 53 31 22


239 54 17 38 46 26 19

In full-time education 112 68 18 50 32 23 9 Retired 172 16 3 12 84 34 51 Not working for any other reason* 89 45 20 25 55 38 17




161 40 9 31 60 33 27


335 64 24 39 36 19 17


413 59 21 38 41 25 16


95 62 25 37 38 24 14


174 61 18 43 39 25 14


99 62 20 41 38 25 13


674 53 17 35 47 26 21





FIGURE 62: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS – COFFEE VENDOR IN CAR

PARK/OUTSIDE CAFÉ/RESTAURANT, BY DEMOGRAPHICS, DECEMBER 2013 Base: 1,111 internet users aged 16+ who have visited a café/restaurant in a supermarket in the last 12 months Sample

size Any

interested Very


Any uninterested

Not very interested



436 45 11 34 55 32 23


239 50 13 37 50 34 15


161 41 9 32 59 37 22


335 57 18 39 43 28 15





413 57 18 39 43 28 15


95 61 23 38 39 23 16


174 50 11 39 50 37 13


99 48 12 36 52 36 15


674 50 13 37 50 31 19



FIGURE 63: INTEREST IN PRODUCTS/SERVICES AT SUPERMARKET CATERING OUTLETS – TABLE WAITER SERVICE, BY


size Any

interested Very


Any uninterested

Not very interested






436 47 10 36 53 37 16


239 45 11 34 55 39 15


161 45 9 37 55 40 14


335 55 17 38 45 34 11


413 51 15 35 49 36 14


95 59 17 42 41 28 13


174 57 11 46 43 33 10


99 44 8 36 56 41 14





674 48 13 35 52 36 15



Appendix – Vending Machine Usage Non High Street Foodservice Trends UK, March 2014


Appendix – Vending Machine Usage FIGURE 64: VENDING MACHINE USAGE, DECEMBER 2013

“Have you bought food/drink from a vending machine (pre-packaged products eg chocolates, bottled drinks) in the last 12 months?”

Base: 2,000 internet users aged 16+ Vending machine (pre-packaged

products eg chocolates, bottled drinks) %

Yes 34 No 57 Can’t remember/don’t know 9 SOURCE: GMI/MINTEL

FIGURE 65: VENDING MACHINE USAGE, BY DEMOGRAPHICS, DECEMBER 2013 Base: 2,000 internet users aged 16+ Sample

size Yes No Can’t

remember/don’t know

% % %

All 2,000 34 57 9 Gender: Male 1,000 38 54 9 Female 1,000 30 60 10 Age: 16-24 344 49 40 11 25-34 381 46 46 8 35-44 379 37 52 11 45-54 370 30 61 9 55-64 266 17 78 5 65+ 260 13 77 10 Region: Inner and Greater London 271 38 52 9 South East/East Anglia 496 30 63 7 South West and Wales 267 25 66 9 East and West Midlands 326 37 51 12 North West 204 34 54 11 Yorkshire, Humberside 172 39 51 10 North and Scotland 264 38 55 8 Area you live: Urban location (ie living in a town/city) 786 42 48 9 Suburban location (ie close to town/city but living outside a town/city)

836 30 62 9

Village-Rural location/Other 378 26 65 9



Working status: Employee full-time (30+ hours/week) 850 41 51 8 Employee part-time (less than 30 hours/week) 287 36 57 7 Any self-employed 137 26 63 11 In full-time education 191 52 36 12 Retired 339 14 76 9 Not working for any other reason 196 22 68 10 Socio-economic group: ABC1 1,155 36 56 8 AB 578 38 54 8 C1 577 34 57 8 C2DE 845 31 59 10 C2 414 37 53 10 D 290 33 57 10 E 141 11 78 11 Education: No formal qualification 112 21 71 8 GCSE/O-level or equivalent 480 31 61 8 AS/A-level or equivalent 303 37 55 9 Vocational qualification (eg NVQs, BTEC) 295 29 58 13 Further qualification (HNCs, HNDs) 146 30 58 12 University degree (including undergraduate and masters degrees) 551 40 52 7 Gross annual household income: Under £9,500 127 28 55 17 £9,500-15,499 298 28 64 8 £15,500-24,999 438 32 57 11 £25,000-49,999 696 35 59 6 £50,000 or over 287 46 47 7 Don’t know/Refused 154 27 56 17 Housing situation: My home is being bought on a mortgage 701 40 51 8 My home is owned outright 596 24 66 10 My home is rented from local authority 177 33 56 10 My home is rented from private landlord 348 39 53 8 My home is rented from housing association/other 178 32 57 11 Presence of own children: Aged 0-4 207 56 38 6 Aged 5-9 225 55 37 8 Aged 10-15 407 44 50 6 Aged 16-18 312 37 53 10 Any children 792 45 47 8 No children in household 1,208 26 64 10 Household size: 1 314 24 65 11 2 668 25 65 9 3 415 34 57 8 4 389 48 44 7 5 or more 214 48 43 10 Current marital status: Single 602 40 49 11 Married/Civil partnership/Living as married 1,190 33 59 8 Separated, divorced or widowed 208 19 70 11




467 39 54 8


909 33 59 8

Tight – I’m making ends meet, but only just 461 31 57 12 Struggling/In trouble 163 34 58 9 SOURCE: GMI/MINTEL

Attitudes towards vending machines FIGURE 66: ATTITUDES TOWARDS VENDING MACHINES, DECEMBER 2013


Base: 2,000 internet users aged 16+ %

I only tend to use vending machines as a last resort 38 Concerns about food quality do/would put me off buying fresh food (eg sandwiches) from vending machines 18 I would be willing to buy sandwiches/fruit/bakery items from a vending machine if it was restocked daily 15 I would use vending machines more if they stocked healthier products 15 I would be more likely to use vending machines if they sold new/more varied food/drink choices 15 I would be more likely to use vending machines if it saved me time queuing in stores 14 Vending machines should offer mobile phone or credit/debit card payment 13 None of these 30 SOURCE: GMI/MINTEL

FIGURE 67: MOST POPULAR ATTITUDES TOWARDS VENDING MACHINES, BY DEMOGRAPHICS, DECEMBER 2013 Base: 2,000 internet users aged 16+ Sample

size I only tend

to use vending

machines as a last

resort

Concerns about food

quality do/would put

me off buying fresh

food (eg sandwiches) from vending

machines

I would be willing to buy sandwiches/ fruit/bakery items from a

vending machine if it

was restocked

daily

I would use vending

machines more if they

stocked healthier products

% % % %

All 2,000 38 18 15 15 Gender: Male 1,000 36 17 17 14 Female 1,000 40 19 14 16 Age: 16-24 344 33 19 19 22 25-34 381 29 20 22 22 35-44 379 38 17 15 14 45-54 370 43 16 14 12 55-64 266 44 18 11 9 65+ 260 44 18 8 8



Region: Inner and Greater London 271 37 19 17 21 South East/East Anglia 496 37 18 14 14 South West and Wales 267 35 18 16 15 East and West Midlands 326 39 19 16 14 North West 204 41 18 18 15 Yorkshire, Humberside 172 43 15 16 10 North and Scotland 264 36 16 14 16 Area you live: Urban location (ie living in a town/city)

786 36 17 18 20


836 38 18 14 13

Village-Rural location/Other 378 43 18 11 11 Working status: Employee full-time (30+ hours/week) 850 35 17 17 16 Employee part-time (less than 30 hours/week)

287 36 20 15 18

Any self-employed 137 48 18 16 12 In full-time education 191 37 16 19 26 Retired 339 44 19 8 7 Not working for any other reason 196 38 19 15 14 Socio-economic group: ABC1 1,155 38 19 16 18 AB 578 40 21 16 18 C1 577 37 18 15 17 C2DE 845 37 16 15 12 C2 414 36 18 17 13 D 290 40 12 13 12 E 141 33 15 10 7 Education: No formal qualification 112 35 16 12 11 GCSE/O-level or equivalent 480 39 16 14 12 AS/A-level or equivalent 303 37 14 15 15 Vocational qualification (eg NVQs, BTEC)

295 40 18 13 14

Further qualification (HNCs, HNDs) 146 38 21 14 12 University degree (including undergraduate and masters degrees)

551 39 21 18 20

Gross annual household income: Under £9,500 127 37 18 10 14 £9,500-15,499 298 40 16 13 10 £15,500-24,999 438 38 17 13 15 £25,000-49,999 696 38 17 16 14 £50,000 or over 287 37 23 20 21 Don’t know/Refused 154 35 15 18 18 Housing situation: My home is being bought on a mortgage

701 39 18 18 16

My home is owned outright 596 37 17 11 12 My home is rented from local authority

177 31 18 12 15


348 43 18 16 18


178 35 19 18 17



Presence of own children: Aged 0-4 207 32 19 19 23 Aged 5-9 225 32 26 20 19 Aged 10-15 407 34 19 19 17 Aged 16-18 312 42 19 19 15 Any children 792 35 19 20 18 No children in household 1,208 40 17 12 14 Household size: 1 314 39 17 12 11 2 668 40 18 14 14 3 415 36 18 18 16 4 389 38 17 17 16 5 or more 214 33 19 18 21 Current marital status: Single 602 36 18 17 20 Married/Civil partnership/Living as married

1,190 38 17 15 14

Separated, divorced or widowed 208 39 17 13 9 Financial situation: Healthy – I have money left at the end of the month for a few luxuries or to add to my savings

467 36 20 15 18


909 36 17 16 16


461 40 17 16 13

Struggling/In trouble 163 45 14 11 13 SOURCE: GMI/MINTEL

FIGURE 68: NEXT MOST POPULAR ATTITUDES TOWARDS VENDING MACHINES, BY DEMOGRAPHICS, DECEMBER 2013 Base: 2,000 internet users aged 16+ Sample

size I would be

more likely to use vending machines if

they sold new/more

varied food/drink

choices

I would be more likely

to use vending

machines if it saved me

time queuing in

stores

Vending machines

should offer mobile

phone or credit/debit

card payment

None of these

% % % %

All 2,000 15 14 13 30 Gender: Male 1,000 16 15 14 30 Female 1,000 13 13 13 31 Age: 16-24 344 25 22 23 22 25-34 381 23 18 22 22 35-44 379 13 14 12 29 45-54 370 13 12 9 31 55-64 266 6 7 6 40 65+ 260 2 8 5 44



Region: Inner and Greater London 271 20 17 20 24 South East/East Anglia 496 10 13 12 34 South West and Wales 267 13 10 10 35 East and West Midlands 326 14 14 13 30 North West 204 18 14 13 24 Yorkshire, Humberside 172 16 17 15 27 North and Scotland 264 15 15 13 32 Area you live: Urban location (ie living in a town/city) 786 19 17 18 25 Suburban location (ie close to town/city but living outside a town/city)

836 14 14 11 33

Village-Rural location/Other 378 7 10 10 35 Working status: Employee full-time (30+ hours/week) 850 18 15 17 26 Employee part-time (less than 30 hours/week)

287 16 17 15 24

Any self-employed 137 8 15 9 26 In full-time education 191 24 21 19 26 Retired 339 4 8 4 43 Not working for any other reason 196 12 9 11 42 Socio-economic group: ABC1 1,155 16 15 15 27 AB 578 18 16 16 24 C1 577 14 13 15 31 C2DE 845 12 13 11 34 C2 414 13 14 14 31 D 290 16 15 9 29 E 141 4 8 6 55 Education: No formal qualification 112 13 13 12 50 GCSE/O-level or equivalent 480 11 14 9 34 AS/A-level or equivalent 303 20 15 15 29 Vocational qualification (eg NVQs, BTEC)

295 13 12 12 34

Further qualification (HNCs, HNDs) 146 7 11 10 35 University degree (including undergraduate and masters degrees)

551 19 15 19 20

Gross annual household income: Under £9,500 127 15 12 6 41 £9,500-15,499 298 11 11 12 34 £15,500-24,999 438 12 13 11 30 £25,000-49,999 696 14 15 14 27 £50,000 or over 287 21 17 19 23 Don’t know/Refused 154 16 16 16 42 Housing situation: My home is being bought on a mortgage

701 18 16 17 25

My home is owned outright 596 9 11 9 37 My home is rented from local authority 177 15 15 15 34 My home is rented from private landlord

348 17 15 16 24


178 14 13 10 35



Presence of own children: Aged 0-4 207 23 19 21 22 Aged 5-9 225 24 18 20 15 Aged 10-15 407 20 16 15 24 Aged 16-18 312 17 17 13 27 Any children 792 20 17 17 24 No children in household 1,208 11 12 11 34 Household size: 1 314 9 13 11 35 2 668 12 12 11 34 3 415 16 13 15 30 4 389 19 17 16 24 5 or more 214 19 19 17 23 Current marital status: Single 602 19 19 17 26 Married/Civil partnership/Living as married

1,190 14 13 12 31

Separated, divorced or widowed 208 6 9 9 39 Financial situation: Healthy – I have money left at the end of the month for a few luxuries or to add to my savings

467 18 15 16 28


909 13 14 12 29


461 15 16 14 33

Struggling/In trouble 163 11 9 10 33 SOURCE: GMI/MINTEL

Appendix – Self-Service Machine Usage Non High Street Foodservice Trends UK, March 2014


Appendix – Self-Service Machine Usage FIGURE 69: SELF-SERVICE MACHINE USAGE, DECEMBER 2013

“Have you bought food/drink from a self-service machine (eg freshly made/made to order coffee) in the last 12 months?”

Base: 2,000 internet users aged 16+ Self-service machine (freshly

made/made to order coffee) %

Yes 32 No 62 Can’t remember/don’t know 5 SOURCE: GMI/MINTEL

FIGURE 70: SELF-SERVICE MACHINE USAGE, BY DEMOGRAPHICS, DECEMBER 2013 Base: 2,000 internet users aged 16+ Sample

size Yes No Can’t

remember/don’t know

% % %

All 2,000 32 62 5 Gender: Male 1,000 36 59 5 Female 1,000 29 65 6 Age: 16-24 344 41 52 7 25-34 381 42 52 6 35-44 379 36 56 7 45-54 370 31 65 4 55-64 266 19 78 3 65+ 260 17 79 4 Region: Inner and Greater London 271 41 53 6 South East/East Anglia 496 32 64 4 South West and Wales 267 28 66 7 East and West Midlands 326 32 61 7 North West 204 34 61 4 Yorkshire, Humberside 172 31 64 5 North and Scotland 264 29 68 3 Area you live: Urban location (ie living in a town/city) 786 40 54 6 Suburban location (ie close to town/city but living outside a town/city)

836 28 67 4

Village-Rural location/Other 378 26 68 6



Working status: Employee full-time (30+ hours/week) 850 40 55 5 Employee part-time (less than 30 hours/week) 287 31 63 6 Any self-employed 137 32 64 4 In full-time education 191 43 50 7 Retired 339 16 80 4 Not working for any other reason 196 20 75 5 Socio-economic group: ABC1 1,155 35 60 5 AB 578 38 57 5 C1 577 33 63 5 C2DE 845 29 66 6 C2 414 34 61 5 D 290 29 64 7 E 141 11 84 5 Education: No formal qualification 112 22 72 5 GCSE/O-level or equivalent 480 30 66 4 AS/A-level or equivalent 303 31 64 5 Vocational qualification (eg NVQs, BTEC) 295 28 64 8 Further qualification (HNCs, HNDs) 146 28 67 5 University degree (including undergraduate and masters degrees) 551 40 55 5 Gross annual household income: Under £9,500 127 25 66 9 £9,500-15,499 298 26 69 5 £15,500-24,999 438 33 61 7 £25,000-49,999 696 33 64 3 £50,000 or over 287 41 53 5 Don’t know/Refused 154 31 61 8 Housing situation: My home is being bought on a mortgage 701 37 58 5 My home is owned outright 596 27 68 5 My home is rented from local authority 177 30 64 6 My home is rented from private landlord 348 34 60 6 My home is rented from housing association/other 178 32 61 7 Presence of own children: Aged 0-4 207 43 50 7 Aged 5-9 225 47 48 5 Aged 10-15 407 41 55 4 Aged 16-18 312 36 58 6 Any children 792 41 54 5 No children in household 1,208 27 68 5 Household size: 1 314 27 68 4 2 668 28 67 5 3 415 34 61 5 4 389 39 56 5 5 or more 214 40 52 7 Current marital status: Single 602 36 57 7 Married/Civil partnership/Living as married 1,190 33 63 4 Separated, divorced or widowed 208 22 73 6




467 36 60 5


909 33 62 5

Tight – I’m making ends meet, but only just 461 30 63 7 Struggling/In trouble 163 25 69 7 SOURCE: GMI/MINTEL

Attitudes towards self-service machines FIGURE 71: ATTITUDES TOWARDS SELF-SERVICE MACHINES, DECEMBER 2013


Base: 2,000 internet users aged 16+ %

I’d be more likely to buy fresh food/drinks (eg coffee) from a self-service machine from a well-known brand (eg Costa Coffee, Nescafé)

20

I would rather buy food/drink products from a mobile vendor (eg a coffee kart) than a self-service machine

20

I don’t trust self-service hot drinks machines to be hygienic 16 I’d be interested in self-service drinks machines which offer made to order drinks (eg lemonade with raspberry, latte with vanilla)

16

None of these 44 SOURCE: GMI/MINTEL



FIGURE 72: ATTITUDES TOWARDS SELF-SERVICE MACHINES, BY DEMOGRAPHICS, DECEMBER 2013 Base: 2,000 internet users aged 16+ Sample

size I’d be more

likely to buy fresh

food/drinks (eg coffee) from a self-

service machine

from a well-known

brand (eg Costa

Coffee, Nescafé)

I would rather buy food/drink products

from a mobile

vendor (eg a coffee

kart) than a self-

service machine

I don’t trust self-service

hot drinks machines

to be hygienic

I’d be interested in self-service

drinks machines

which offer made to

order drinks (eg lemonade

with raspberry, latte with vanilla)

None of these

% % % % %


786 23 23 16 21 37


836 20 19 15 12 48


850 23 22 16 19 38


287 24 23 19 16 38

Any self-employed 137 11 22 18 10 45 In full-time education 191 24 17 14 27 42 Retired 339 13 17 16 4 59 Not working for any other reason

196 20 16 11 12 57




295 18 21 16 14 44


146 16 19 18 13 45


551 23 24 18 19 34


Under £9,500 127 10 20 17 13 54 £9,500-15,499 298 15 22 18 11 49 £15,500-24,999 438 21 17 14 14 45 £25,000-49,999 696 22 22 16 15 41 £50,000 or over 287 25 20 17 24 38 Don’t know/Refused 154 19 16 14 18 53 Housing situation: My home is being bought on a mortgage

701 25 22 16 19 38


177 12 18 19 16 47


348 18 26 13 20 41


178 21 16 11 16 50


1,190 21 20 15 14 45





467 21 21 16 18 42


909 21 19 14 15 44


461 20 22 18 15 46


Appendix: Research methodology

UK Research Methodology Non High Street Foodservice Trends UK, March 2014


UK Research Methodology Mintel is an independent market analysis company that prides itself on supplying objective

information on a whole range of markets and marketing issues.

There are five main sources of research that are used in the compilation of Mintel reports:

Consumer research

Desk Research

Trade research

Statistical forecasting.

Mintel’s exclusive archive of over 40 years of analysis and expertise

Mintel reports are written and managed by analysts with experience in the relevant markets.

Consumer research

Exclusive and original quantitative consumer research is commissioned for almost all Mintel reports.

In addition, qualitative research is also undertaken for a large proportion of reports in the form of

online focus groups. Mintel invests a considerable sum each year in consumer research, and the

purchaser of a Mintel report benefits, as the price of an individual report is less than the cost of the

original research alone. The research brings an up-to-date and unique insight into topical issues of

importance.

Consumer research is conducted among a nationally representative sample of either adults or internet

users and is generally carried out by GMI (online), Ipsos Mori (face to face), while other suppliers are

used on an ad hoc basis as required. The results are only available in Mintel reports.

Sampling and weighting Face to Face Surveys Ipsos Mori

Ipsos MORI Capibus uses a two-stage random location sample design which generates a very high

quality sample representative of the Great Britain adult population. Interviews are sampled from 145

Output Areas, randomly selected every week, and MOSAIC is employed to set interlocking quota

controls specific to each interviewer location. This ensures consistent accurate representation of the

locations interviewed every week. By using this proven sample design, all sub-sectors of the

population are represented – at a national and regional level.

All information collected on Capibus is then weighted to reflect the known profile of the adult

population in Great Britain. Capibus uses a rim weighting system which weights to mid-2010 census

and NRS defined profiles for age, social grade, region and working status - within gender. Additional

profiles used include tenure and car in household, for example.

Because the sampling process is repeated every week, the Capibus sample is matched wave on wave,

making it ideal for taking successive measurements on the same issue.



Online Surveys

GMI

Founded in 1999, GMI’s double opt-in online consumer panel has reach to approximately 350,000

consumers in the UK. GMI delivers uniquely identified online respondents via extensive use of fraud

detection and location-verification technology at multiple points in the research cycle, from initial

registration through survey fielding and incentive redemption. GMI panelists are profiled on a wide

variety of attributes to deliver the specific hard-to-reach demographics.

TGI data

Additional quantitative data are taken from Kantar Media UK Ltd.’s Target Group Index surveys. The

main TGI survey used is a continuous self-completion survey among a representative sample of

around 25,000 adults throughout Great Britain.

Unless otherwise stated, consumer research data is presented as penetration, ie as a percentage of

demographic sub-groups (usually in rows) such as age.

Population profile

GB population profile, by demographic group, 2012 Q2

Base: adults aged 15+ All 100.0 Gender:

Men 48.8 Women 51.2 Age group:

15-24 15.7 25-34 16.1 35-44 16.8 45-54 16.9 55-64 14.2 65+ 20.3 Socio-economic group:

AB 26.4 C1 28.0 C2 21.7 D 15.4 E 8.5 Presence of children:

Under 1 year 2.4 1-4 years 10.4 5-9 years 11.2 10-15 years 14.4 No children in household 71.1 Marital status:

Single 25.7 Married/living as married 60.6 Separated/divorced/widowed 13.7 Working status:

Full-time 37.7 Part-time 14.4 Not working 47.9



Household size:

1 person 19.1 2 persons 36.0 3 persons 19.4 4 persons 16.5 5 persons+ 9.0 Region:

Greater London 12.8 South East/East Anglia 23.7 South West 8.9 Wales 5.0 East & West Midlands 16.4 North West 10.6 Yorkshire & Humberside 8.8 North 5.2 Scotland 8.6 SOURCE: TGI /MINTEL

Definitions

Socio-economic group

Socio-economic groups are based on the head of household or chief income earner and are defined as

follows:

Socio-economic group Occupation of chief income earner

A Higher managerial, administrative or professional B Intermediate managerial, administrative or professional C1 Supervisory or clerical, and junior managerial, administrative or professional C2 Skilled manual workers D Semi and unskilled manual workers E All those entirely dependent on the state long term, through sickness, unemployment,

old age or other reasons

Retired persons who have a company pension or private pension, or who have private means are

graded on their previous occupation.

Students in higher education living at home are graded on the occupation of the head of the

household. Students living away from home are graded C1 (no account is taken of casual or vacation

jobs).

Lifestage and Special Groups

In addition to the standard breaks, Mintel also analyses consumer research in the following manner.

Lifestage

Lifestages are derived from analysis of consumer research and are split into four main groups, as

follows. The following percentages are nationally representative. An internet representative would

differ slightly.

% of population

Pre-family/no family aged under 45 who are not parents 29.1 Family any age with at least one child aged under 16 still at home 24.6 Third age aged 45-64 with no children aged under 16 still at home 26.0 Retired aged over 65 with no children aged under 16 still at home 20.3



Special Groups

As part of an on-going policy to find new ways of analysing data, Mintel has created of consumers to

typify consumer habits in the early years of the 21st Century. Unlike the lifestage groups, these groups

represent only sections of the population and do not account for all adults.

% of population

ABC1 Pre/no family ABC1 Socio-economic group and in the pre/no

family lifestage 16.7

ABC1 Families ABC1 Socio-economic group and in the family lifestage

12.7

ABC1 Third Age ABC1 Socio-economic group and in the third age lifestage

13.5

ABC1 Retired ABC1 Socio-economic group and in the retired (65+) lifestage

11.1

Two full-time earners couples where both partners work full-time 16.1 One person households under 65 aged under 65 and living alone 11.2 SOURCE: TGI / MINTEL

ACORN

Some reports also use consumer research analysed by ACORN category. ACORN is a geo-

demographic segmentation method, using census data to classify consumers according to the type of

residential area in which they live. Each postcode in the country can, therefore, be allocated an

ACORN category.

The classification is a more powerful differentiator of consumer behaviour than traditional socio-

economic and demographic indicators. The categories, and their components, are as follows:

ACORN category ACORN group % of population 19.3 Wealthy Achievers – Category 1 A – Wealthy Executives 5.7 B – Affluent Greys 6.2 C – Flourishing Families 7.4 10.4 Urban Prosperity – Category 2 D – Prosperous Professionals 1.9 E – Educated Urbanites 4.6 F – Aspiring Singles 3.9 29.7

Comfortably Off – Category 3 G – Starting Out 5.1 H – Secure Families 15.9 I – Settled Suburbia 6.8 J – Prudent Pensioners 1.9 16.8 Moderate Means – Category 4 K – Asian Communities 1.9 L – Post Industrial Families 5.4 M – Blue Collar Roots 9.5 23.3 Hard Pressed – Category 5 N – Struggling Families 15.0 O – Burdened Singles 4.5 P – High Rise Hardship 1.6 Q – Inner City Adversity 2.2

SOURCE: TGI / MINTEL



Confidence levels

Statistical confidence levels of + or – 2% or 3% can be applied to the data, depending on sample size

and percentage of respondents. For example, if 20% of a total sample of 1,000 adults say that they do

something, you can be 95% certain that the figure for the population lies between 17% and 23%. For a

sample of 2,000 adults, you can be 95% certain that the figure lies between 18% and 22%.

Consumer research is stored in a database supervised by Mintel’s statisticians. Additional analysis of

information too abundant to be included in published reports may be available for an additional

charge.

Qualitative Research Toluna/ 2020 Research

Toluna in partnership with 20/20 Research provide Mintel with qualitative bulletin board software.

This allows the creation of Internet-based, ‘virtual’ venues where participants recruited from Mintel’s

online surveys gather and engage in interactive, text-based discussions lead by Mintel moderators.

Trade research

Informal

Trade research is undertaken for all reports. This involves contacting relevant players in the trade, not

only to gain information concerning their own operations, but also to obtain explanations and views of

the strategic issues pertinent to the market being researched. Such is Mintel’s concern with accuracy

that draft copies of reports are sent to industry representatives, to get their feedback and avoid any

misrepresentation of the market. These comments are incorporated into reports prior to final

publication.

Formal

Internally, Mintel’s analysts undertake extensive trade interviews with selected key experts in the field

for the majority of reports. The purpose of these interviews is to assess key issues in the market place

in order to ensure that any research undertaken takes these into account.

In addition, using experienced external researchers, trade research is undertaken for some reports. This

takes the form of full trade interview questionnaires and direct quotes are included in the report and

analysed by experts in the field. This gives a valuable insight into a range of trade views of topical

issues.

Desk research

Mintel has an internal team of desk researchers who monitor: government statistics, consumer and

trade association statistics, manufacturer sponsored reports, annual company reports and accounts,

directories, press articles from around the world and online databases. The latter are extracted from

hundreds of publications and websites, both British and overseas. All information is cross-referenced

for immediate access.

Data from other published sources are the latest available at the time of writing the report.

This information is supplemented by an extensive library of Mintel’s reports produced since 1972 and

added to each year by the 500+ reports which are produced annually.



In addition to in-house sources, researchers also occasionally use outside libraries such as the British

Library or the Department of Trade and Industry. Other information is also gathered from store and

exhibition visits across Europe, as well as using other databases within the Mintel Group, such as the

Global New Product Database (GNPD), which monitors FMCG sales promotions.

All analysts have access to Mintel ’s Market Size and Economic Database – a database containing all

areas of consumer spend and retail sales as well as macroeconomic and demographic factors which

impinge on consumer spending patterns, going back some 20 years.

The database is used in conjunction with an SPSS forecasting program which uses weighted historical

correlations of market dynamics, with independent variables, to produce future spending scenarios.

Statistical Forecasting

Statistical modelling

For the majority of reports, Mintel produces five-year forecasts based on an advanced

statistical technique known as ‘multivariate time series auto-regression’ using the statistical

software package SPSS.

Historical market size data feeding into each forecast are collated in Mintel’s own market size

database and supplemented by macro- and socio-economic data sourced from organisations

such as the Office for National Statistics, HM Treasury and the Bank of England.

Within the forecasting process, the model searches for, and analyses relationships between,

actual market sizes and a selection of key economic and demographic determinants

(independent variables) in order to identify those predictors having the most influence on the

market.

Factors used in a forecast are stated in the relevant report section alongside an interpretation

of their role in explaining the development in demand for the product or market in question.

Qualitative insight

At Mintel we understand that historic data is limited in its capacity to act as the only force

behind the future state of markets. Thus, rich qualitative insights from industry experts

regarding future events that might impact upon various markets play an invaluable role in our

post statistical modeling evaluation process.

As a result, the Mintel forecast complements a rigorous statistical process with in-depth

market knowledge and expertise to allow for additional factors or market conditions outside of

the capacity of the statistical forecast.



The Mintel fan chart

Forecasts of future economic outcomes are always subject to uncertainty. In order to raise

awareness amongst our clients and to illustrate this uncertainty, Mintel has introduced a new

way of displaying market size forecasts in the form of a fan-chart.

Next to historical market sizes and a current year estimate, the fan chart illustrates the

probability of various outcomes for the market value/volume over the next five years.

At a 95% confidence interval, we are saying that 95 out of 100 times the forecast will fall

within these outer limits, which we call the best and worst case forecasts. These, based on the

statistically driven forecast, are the highest (best case) and lowest (worst case) market sizes

the market is expected to achieve.

Over the next five years, the widening bands successively show the developments that occur

within 95%, 90%, 70% and 50% probability intervals. Statistical processes predict the central

forecast to fall within the darker shaded area which illustrates 50% probability, i.e. a 5 in 10

chance.

A general conclusion: Based on our current knowledge of given historic market size data as

well as projections for key macro- and socio-economic measures that were used to create the

forecast, we can assume that in 95% of the time the actual market size will fall within the

purple shaded fan. In 5% of all cases this model might not be correct due to random errors and

the actual market size will fall out of these boundaries.

Weather analogy

To illustrate uncertainty in forecasting in an everyday example, let us assume the following

weather forecast was produced based on the meteorologists’ current knowledge of the

previous weather condition during the last few days, atmospheric observations, incoming

weather fronts etc.



Now, how accurate is this forecast and how certain can we be that the temperature on

Saturday will indeed be 15°C?

To state that the temperature in central London on Saturday will rise to exactly 15°C is

possible but one can’t be 100% certain about that fact.

To say the temperature on Saturday will be between 13°C and 17°C is a broader statement

and much more probable.

In general, we can say that based on the existing statistical model, one can be 95% certain that

the temperature on Saturday will be between 13°C and 17°C, and respectively 50% certain it

will be between about 14.5°C and 15.5°C. Again, only in 5% of all cases this model might not

be correct due to random errors and the actual temperature on Saturday will fall out of these

boundaries and thus will be below 13°C or above 17°C.

( To learn more about uncertainty in weather forecasts visit:

http://research.metoffice.gov.uk/research/nwp/ensemble/uncertainty.html )

European Research Methodology

Mintel surveys the four major European markets - France, Germany, Spain and Italy - with varying

samples of 1,000 and 2,000 adults aged 16+. The surveys are conducted online, via GMI, spanning ten

waves of research a year and all are representative of the online population in each country with quotas

on age, gender and region.

GMI FOUNDED IN 1999, GMI’S DOUBLE OPT-IN ONLINE CONSUMER PANEL HAS REACH OF APPROXIMATELY 240,000 CONSUMERS IN

GERMANY, 210,000 CONSUMERS IN FRANCE, 110,000 CONSUMERS IN ITALY AND 90,000 CONSUMERS IN SPAIN. GMI DELIVERS UNIQUELY IDENTIFIED ONLINE RESPONDENTS VIA EXTENSIVE USE OF FRAUD DETECTION AND LOCATION-VERIFICATION

TECHNOLOGY AT MULTIPLE POINTS IN THE RESEARCH CYCLE, FROM INITIAL REGISTRATION THROUGH SURVEY FIELDING AND

INCENTIVE REDEMPTION. GMI PANELISTS ARE PROFILED ON A WIDE VARIETY OF ATTRIBUTES TO DELIVER THE SPECIFIC HARD-TO-REACH DEMOGRAPHICS.

http://research.metoffice.gov.uk/research/nwp/ensemble/uncertainty.html

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