london zurich presentation Sept 16
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Transcript of london zurich presentation Sept 16
London – through the roof and still climbing
Presented by Robin Rowland, - CEO Yo Sushi
Compiled by - Ian Dunstall, Brand Consultant
London –through the roof and still climbing
Always unique, sizzling hot and exciting
A global model for restaurant creativity
What makes London a global city? • Population scale &
diversity
• Knowledge economy
• Finance & Business
• International tourism
• Culture & entertainment
• Global wealth
London’s population scale & diversity
• 8.6m population
• 22.7m in SE region
• 37% born outside UK
• 103,000 international students
• 300 languages spoken
• Over 1/3rd population from Black/ Asian/ Minority origin
Knowledge economy
• 1.7m in high skill knowledge based jobs
• 3rd largest start up innovation system ($2.4bn)
• Over 42 Higher Educational Institutes
• Most desired place in world to move to work
• London 16%, NY 12%, Paris 9%
Cultural and entertainment centre
• 300 theatres, 12,000 restaurants, 500 cinema screens
• 240 museums and galleries.
• 40% of city is green space
• Festivals and cultural events
• London 2012 reminded the world it is a cultural powerhouse
International tourist destination
• Over 1m flights per year worldwide
• Over 17m foreign visitors per year to London
• Over 150m passenger movements per year
• Worlds most visited city for international arrivals – 5 international airports
World leading Finance & Business Centre• 40% of foreign equities
traded here• Home to massive
global brands • Home to 33% of
European HQs of Global Fortune 500
• Over 30% of the world's currency exchanges
• Daily global connectivity
Global Wealth centre• London reigns at the top
of global wealth report of High Net wealth Individuals:
1. London2. New York3. Hong Kong4. Singapore5. Shanghai6. Miami7. Paris8. Dubai9. Beijing10.Zurich
The London restaurant market – key issues• Culinary freedom• Location hot spots• Growth of entrepreneurial small
scale brands• Venture Capital• Managing the rent bill • Small space innovation• All day trading• Delivery• Shifting consumption trends• The cost of labour
UK Culinary freedom
• UK has less culinary tradition than other nations
• Colonial influence
• Multi nationality
• So earlier freedom/ adoption of new trends
© CACI Ltd, 2016
15
LONDON TODAY| LONDON IN 2025 |
THE F&B CAPITAL | SEVEN DIALS
SEVEN DIALS
2011-201533%
2013-201514%
Sources: CACI; Oliver O’Brien CDRC UCL; Transport for London; Ordnance Survey; OpenStreetMap; CGA Outlet Index
© CACI Ltd, 2016
16
LONDON TODAY| LONDON IN 2025 |
THE F&B CAPITAL | KINGS CROSS
KINGS CROSS
2011-201574%
2013-201543%
Sources: CACI; Oliver O’Brien CDRC UCL; Transport for London; Ordnance Survey; OpenStreetMap; CGA Outlet Index
© CACI Ltd, 2016
17
LONDON TODAY| LONDON IN 2025 |
THE F&B CAPITAL | LIVERPOOL ST & BROADGATE
LIVERPOOL ST & BROADGATE
2011-201517%
2013-201517%
Sources: CACI; Oliver O’Brien CDRC UCL; Transport for London; Ordnance Survey; OpenStreetMap; CGA Outlet Index
© CACI Ltd, 2016
18
LONDON TODAY| LONDON IN 2025 |
THE F&B CAPITAL | SHOREDITCH
SHOREDITCH
2011-201552%
2013-201511%
Sources: CACI; Oliver O’Brien CDRC UCL; Transport for London; Ordnance Survey; OpenStreetMap; CGA Outlet Index
© CACI Ltd, 2016
19
LONDON TODAY| LONDON IN 2025 |
GROWTH: QUALITY, PROVISION & ACCESSIBILITY
Location 2015-2025:
Growth
Earls Court 433%
Elephant & Castle 417%
Kings Cross 198%
Baker Street 119%
Waterloo 117%
Marylebone 60%
Bloomsbury 59%
West End 53%
Victoria 44%
Covent Garden 44%
CGA Outlet Index, March 2016
Year on year % change in number of outlets by estate size
0 – 24 sites 25 – 99 sites 100 + sites
City City City Small town
+10% +16% +0%
A Hungry Private Equity Market
• Low cost of finance and strong health of restaurant sector
• Continual desire for new deals
• New entrepreneurs scaling quickly to attract investors
Managing the rent bill
• Growing scarcity of affordable sites
• Increasing cost of rent bills
• Demands operators to maximise trading opportunities:• All day/ extended opening times
• Lower cost investments
• Smaller footprints
• Utilisation of additional trading space – basement/ roof top
Low cost innovation in small spaces
• Entrepreneurs seeking ‘cool’ low cost venues in restricted spaces, e.g.
• Ladies & Gentlemen
• Under Dog Clarendon
• Cocktail Cellar
All day trading• Chameleon brands
• Trading to all day parts• Changing the offer by daypart
guest need• Breakfast becoming the norm• Rapid growth of all day café bar
concepts – Bills, Loungers• Stronger focus on after work
drinking market – Be at One• 24 hr tube to stimulate night
time economy• Fri/ Sat on key metro lines
Example innovator: The Breakfast Club• ‘Family Caf’
• 9 locations in trendy areas
• ‘Banging brunches’
• Lunch & evening meals
• Barista Coffee
• Award winning cocktails
• ‘Secret’ hidden bars• behind a fridge, a
launderette, a kitchen and a Dr’s Waiting Room
Growth of delivery market – race for commission• Deliveroo rapidly growing
• 67% awareness in London• Major brands signing up
• Emerging market entrants:• Uber Eat• Amazon Prime
• Development of delivery kitchens, e.g. RooBox
• Just Eat already established
• Potential for c10% sales volume
• c14% takeaway cannabilises restaurant meal:• London c25%• Highest amongst 25-29 age
Shifting consumption trendsKey trends driven by Millennial behaviour:
• Reduced alcohol consumption
• Weekday modesty/ weekend indulgence
• Increase in healthy eating
• Demand for premium artisan ingredients
• Customisation and sharing
• Smaller tapas style eating
The high compound growth of labour cost
• London now becoming high rent/ high labour cost market• Legislative rise in minimum wage• Growing competition for labour
• National Living Wage increased to £7.20
• Recommended ‘Living Wage’ set at • £8.25 OOL• £9.40 in London (+14%)
• Brexit fear to availability of European employees (50% of payroll)
Key London growth sectors• Coffee shops• London Pubs• Burgers• C-stores• Health food• Fine Dining • Hubs and railways• Cocktail • Street food• Asian• Fast casual
Coffee shops
A way of life in London
• Scale distribution of major brands
• New generation of artisan independents
London pubs
• Major investment in prime London pub estates
• Young’s and Fuller’s key players
• Modern and contemporary refits
• Fresh food with skilled chefs
Burgers• Premium burger market strongly
established in last decade –Byron/ GBK etc..
• Continual new market entrants:
• US imports
• Five Guys (56 locations in 3 years)
• Shake Shack
• New entrants from street food origin
• Bleecker, Honest Burgers
C-stores• Continual innovation
of key brands (Waitrose/ M&S)
• Arrival of Whole Foods Market
• Flex of trading formats and locations
• New product innovation – e.g. Sushi Daily
Health food
• Healthy brands key for business on the go markets
• Scale growth of make your own salad brands – Tossed, Chop’d, Vital Ingredient etc.
• Leon now expanding internationally
• Pret – veggie pop up now a long term brand
Fine dining
• Fuelled by wealth and international diversity of London population
• Not just traditional cuisine – all specialities
• Growth of Casual Fine Dining –without the formality – e.g. Social Eating House, Bread Street Kitchen
• Trend setter and innovation stimulus for casual dining market
Travel Hubs – Airports and railways• Airport market – sophisticated
development of restaurants and bars• Key difference in UK is a
scale central departure lounge area
• LHR T2 re-development the latest showcase
• Fast advance of railway station dining facilities to comparable style
Cocktail culture• Craft cocktail bars with
cool atmosphere and quality bar food
• Specialist brands – e.g. Be at One
• Scale city bars – Drake & Morgan
• Prohibition speakeasy style• e.g. Night Jar, Black Rock, Little
Bat, Doll’s House,
Street Food focus
• Developed into major leisure / entertainment venues
• Fueled by high rent cost – chefs seeking affordable premises
• Anti establishment culture
• But many street food operators trialing embryos for high street roll out
Fast casual focus
• Focus on high product quality + fast service speed + value pricing
• Variety of (quick) service models• Key categories in scale development
• Pizza• Burger• Sandwich• Burrito• Asian
• Initially UK concept innovation now US entrants (Five Guys, MOD
• Natural migration from street food markets
Fast casual focus• Many emerging entrants, a few
operators achieving scale – incl international expansion. e.g.
• Pret a Manger – Sandwich
• Yo! Sushi – Japanese
• Itsu – Asian
• Five Guys – Burger
• Tortilla – Burrito
• Wasabi- Asian
Asian focus• Asian cuisine has moved from niche
to mainstream• The 21st century pizza
• Fresh & healthy• Low cost (protein light)• Easy eating• Social
• Asian cuisine developed in all sectors of dining market:• Premium dining – e.g. Roka• Casual dining – e.g. Wagamama,
Sticks n Sushi• Fast casual – Pho. Wasabi, Yo!
Sushi
Asian focus• UK has an international cuisine
palate so adopts latest trends• Historically adopted:
• French• Italian• American• Spanish• Mexican• Asian
• Where will the next trends come from?• South American?• Further Asian specialty?
Themes for the future2016 - 2020
• Disruptive technology• Digital & CRM – social/ bloggers• Immigration• Amazon and home delivery• Licensing/ Health & Safety• Innovation from London to provinces• Fast casual • Street food
To conclude: London
• A vibrant, wealthy, multi cultural society
• Strong demand factors +
intense competition
= strength in innovation
• Ones to watch:
• Asian brands
• Fast casual
• Street food ‘stores’
London –through the roof and still
climbing
Contact Details:
Robin Rowland, CEO Yo! Sushi [email protected] Dunstall, Brand Consultant [email protected]