BUSINESS STRATEGY THE CATERING SECTOR INTERNATIONAL HOSPITALITY MANAGEMENT Group 3. 30 th November...
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Transcript of BUSINESS STRATEGY THE CATERING SECTOR INTERNATIONAL HOSPITALITY MANAGEMENT Group 3. 30 th November...
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BUSINESS STRATEGY
THE CATERING SECTORTHE CATERING SECTOR
INTERNATIONAL HOSPITALITY MANAGEMENT
Group 3. 30th November 2001
BECKY DEADMAN, KATY EAGLE, LISA GALLAGHER, LAURA WALTON
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Format of Presentation
•General Catering Sector - specifically looking at Fast Food
•What is Fast Food?
•An analysis of the market and competition with analytical tools
•Discuss external factors that affect the fast food sector
•Consider stakeholders
•Look into the future and forecast of the fast food market
•Conclusion
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IN-STORE RESTAURNATS
PUB CATERIING
INDEPENDENT & CHAIN RESTAURANTS
OTHER CATERING
FAST FOOD
HOTEL CATERING
ROAD SIDE CATERING
THE CATERING
SECTOR
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The Eating Out MarketFast Food
Pub Catering
Independent &Chain RestaurantsIn-storeRestaurantsRoad Side Catering
Hotel Catering
Other Catering
26%
22%22%
5%
2%
17%
6%
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General Eating Out Trends
•The eating out sector has increased 32% between 1996 - 2001
•Higher Disposable Income
•Demand for Value For Money
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FAST FOOD
•Food which is prepared and served quickly to customers on order
•Food may be takeaway or eat on premises
•In general Fast Food is collected from a counter, not table service
•Relatively cheap food
•Convenient
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Fast Food Includes…….•Burger Bars e.g, McDonalds and Burger King
•Pizza Restaurants, Takeaway and Home Delivery Outlets
•Pasta Chains e.g, Bella Pasta
•Chicken Chains e.g, KFC
•Fish and Chip Shops
•Ethnic Takeaway
•Other Fast Food e.g, Jacket Potatoes, Sausages, Vegetarian Specialists and filled croissants
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Key
Markets
BurgersPizzas
Fried Chicken
Juice BarsPasta
Sandwiches
Jacket Potatoes
Ethnic Takeaway
Traditional New emerging markets
Organic Specialities
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0 1,000 2,000
£m
95
96
97
98
99
2000
Yea
rThe Fast Food Market
OtherEthnic TakeawayFried ChickenFish & ChipsPizza & PastaBurgers
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Growth of Fast Food Market
•Domination of eating out sector
•Consumer spending doubled over the last 10 years
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Market Structure
•Large Scale
•Characteristics
•Key Features
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Market Environment
•Ease of Entry to Market
•High Failure Rate
•Competitive
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Fast Food Customer Trends
•Core Market - Young, Social & Affluent
•Elderly & Cash Constrained
•Family Market
Regional Differences
•Similar throughout the UK
•North/ South divide
•Reasons for differences
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High
Low
GROWTH
LowMARKET SHARE
BOSTON CONSULTANCY GROUP MATRIX
Ethnic takeaways
Sandwich shops
McDonalds
Burger King
KFC
Pizza Hut
Yo! Sushi
Wimpy
Harry Ramsdens
Wendys
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PORTERS FIVE FORCES MODEL - FAST FOOD
Competition/ Rivalry New FF restaurants
Existing FF restaurants serving different types of
fast food.
Potential entrants Ease of entry into market.
Buyers- Customers Have so much choice
that they can now demand value for money and have
bargaining power.
Suppliers As a new company suppliers have the bargaining power
over the companies.
However if there are ample suppliers then the companies are able to choose. Substitutes
Increased ‘pub’ restaurants which are
good value for money. Retail food e.g.. Marks
& Spencer's
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Factors Affecting the Catering Sector
Political
•The Governments reaction to Food Scares
•The encouragement of healthy eating
•Government encouragement for families to sit round the table
•Government legislation on employment
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Economical
•High property and operating costs
•Increase in taxation
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Social
•Increase in the young eating out
•Lifestyle changes
•Smaller fast food outlets have a reputation for poor hygiene
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Technological
•Drive through
•Advertising and ordering on the internet
•Improved cooking techniques and facilities
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Environmental
•Decrease in inbound tourism
•Foot and Mouth disease
•BSE crisis
•September 11th 2001 – Terrorist attacks
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Stakeholders
• Customers
• Community
• Competitors
• Employees
• Suppliers
• Government
• Owners & share holders
• Financial lenders
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The Future
2001 £m 2002 £m 2003 £m 2004 £m 2005 £m % change
Burgers 1,840 1,987 2,130 2,283 2,465 +34Ethnic takeaway 1,490 1,553 1,615 1,682 1,764 +18Pizza & pasta 1,021 1,115 1,189 1,267 1,352 +32Fish & chips 850 893 931 975 1,026 +21Chicken 691 751 807 865 932 +35Other fast food 126 134 141 150 160 +27Fast Food Total 6,018 6,433 6,813 7,222 7,699 +28
Restaurant Total 15,889 16,608 17,267 17,874 18,557 +17Other venues 1,344 1,395 1,451 1,503 1,565 +16TOTAL 23,251 24,436 25,531 26,599 27,821 +20
Forecast of the Eating out market 2001 - 2005
Source: Mintel Report - Eating Out Review. 18/06/2001
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The Future
•Fierce Competition
•Keep prices down
•Consumers demand better quality of food & service and value for money
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The Future
•Personal Disposable Income (PDI)
•The socio-economic status of the population
•The structure of the UK population
•Families will still remain a very attractive market to target
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The Future
•New sales opportunities through the internet
•A “gap” in the children’s vegetarian market
•The concept of healthy fast food
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Forecast•Pizza restaurants - key area:delivery
•Chicken & Burger bars - the market appears to be saturated
•Ethnic takeaway - Chinese & Indian remain popular but new competition from other ethnic
cultures
•Fish & Chips - remain an old favourite but new fish bars may start to compete
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Conclusion•Easy to enter but hard to succeed
•Highly competitive, diverse and large market
•Growth markets are new ethnic takeaways
•Move towards healthy eating such as sandwich shops
•Positive outlook for the future
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Thank-you for listening.
Any Questions?