Eating out becomes a modern
As consumers become increasingly bold with
their meal choices it is estimated that the ethnic food industry will
rise 45.1% between 2012 and 2016 (Key Note), having grown by 11% in
2011 alone. The cooking sauces and food seasonings market will rise
6.5% between 2013 and 2017 having risen by 2% in 2012.
Since 1990 we have had a very real culinary
revolution in Britain, meaning that in 2013 we are, as a nation,
eating out more than ever before.
This is for a variety of reasons, many of
which are due to the changing nature of daily life in Britain and
other social factors. These include the changes in family make-up,
more women out at work rather than running the home, the pace of
modern life and the lack of time available for 'family dining', the
growth in ready meals, a the growing lack of cooking knowledge of
successive generations and lastly the availability of a very vibrant
and varied restaurant industry.
A report from the Office for National
Statistics in 2006 trumpeted that "The value of households'
spending on eating out has passed spending on food sector products
eaten at home in 2004, and doubled between 1992 and 2004".
Cultural changes in food consumption, with
people eating out more regularly and enjoying a wider range of
cuisine, continue to have an impact on the UK economy according to
the report. Household spending on fresh and processed food and drink
products was £85.8 billion in 2004,
up 53.4 per cent between 1992 and 2004. Over the same period,
spending on food and drink products consumed outside the home grew by
102.2 per cent, to £87.5 billion in 2004.
Household spending on all food sector products
was £173.3 billion in 2004, up 74.6 per cent between 1992 and
2004. By comparison, spending on catering products consumed outside
the home grew by 102.2 per cent. In 2004, the contribution of the
food sector to whole economy GVA accounted for £80.3 billion,
7.7 per cent of the total. GVA for the food sector grew by 39.5 per
cent between 1995 and 2004 compared with the growth of GVA for the
whole economy of 63.0 per cent over the same period.
according to Horizons/Foodservice Intelligence UK had 26,416
restaurants serving 734 million meals at value of £7.61 bn inc
drinks. In 2010
there were 420,034 catering outlets (restaurants, catering, canteens)
with 112,769 enterprises employing 1,415,000 (National Statistics).
By contrast Sheffield Hallum University gave
eating out figures of 2008
£86.7 - 2009
£85.6 showing a 1.3% drop, the first drop for many years, -
50/50 food. Meanwhile spend in European-style restaurants, those with
Italian, Spanish, British and French menus, rose 19%, with the
average price paid rising from £17.20 in 2004 to £20.51 in
2008. Spend in Chinese and Indian restaurants rose 16%, with
consumers paying an average of £12.66 for an ethnic meal.
A Mitchells Butler review recently saw eating
away from home 2010
back up to peak of £42.6 bn after small fall in 2009. Over the
last four decades the proportion of household expenditure spent on
eating out and drinking out has been constant at between 8 and 9%,
however the proportion of eating out has grown from 36% to 60%.
Key findings include:
o On average in 2010 UK consumers spent
£8.54 a week on eating out plus £1.72 on takeaways and
£6.19 on alcohol. (£24.50 household expenditure).
* Household expenditure on food and drink in
2010 was £98.7bn falling 5.20% in real terms 2007-2010.
* Food prices rose 12% in real terms 2007-2010
(3x as much compared with France).
o 7.7 billion informal meals are eaten out a
year in the UK, or 128 meals for every person in the UK
o There are now 250,500 informal eating out
establishments across the UK, of which an estimated 108,400 are
independent - 43% of the total number of outlets
o Eating out accounts for 22% of what we spend
on food and drink compared to just 14% in 1969
o The informal eating out sector is now a top
ten industry and employs 1.13 million people in the UK
The impact of the recession:
o The value of eating out was expected to be
£40.3billion in 2009 - a fall of 0.5% from 2008. This is the
first time there has been a decline since the 'informal eating out
market' emerged in the 1960s
o 15,000 jobs were lost in the sector 2009
o In 2009, we were eating 1 in 9 meals away
from home, down from 1 in 8 in 2008
o 35% of people ate out less in 2009, 20%
planned to eat out less in 2010
o Growth returned in 2010 with the market
expected to grow again to £47.5 billion by 2014 thanks to rising
trends in affluence, mobility, more youthful older customers and an
Olympics boost in 2012
o By Q3 in 2010 Eating Out was up 1.6% to be
back to the late 2007 level after the 2009 slump.
In general terms, the most popular ethnic
cuisine in mainland Europe is Oriental, which encompasses both
Chinese and South-East Asian foods and accounts for around 70% of the
market on mainland Europe, whereas it accounts for less than 30% in
"This is due to the presence of large
Chinese communities in the Republic of Ireland, Spain, the
Netherlands and France," said Walker of Keynote, "the
influence of which has also driven sales of Oriental foods to
In the UK Chinese and Indian cuisines (27.5%
and 41.7% in value terms) "typically dominate the market",
with Mexican/Tex Mex, Thai as other major players on the up,
although novel cuisines such as Caribbean and Polish are also marking
inroads with "rapid growth".
Competition is cut-throat amongst suppliers
and manufacturers, who "perpetually have to reinvent products
and innovate to maintain customer interest and loyalty. This involves
a constant refreshing of their lines as well as new product
development, brand extensions and advertising campaigns."
After the hiccup of 2009, the Eating Out
market in Britain continues to be on an upward trend with one of the
success areas being in Cooking Sauces which has experienced a growth
of 31% since 2005 reaching £833 million in 2010.
With nearly £2 billion (US$3.1 billion)
in annual sales, the high-growth, high-value UK pizza sector also
offers serious opportunity for operators
STOP PRESS 2011
Estimated at £3.3 billion in 2010, the prepared meals and pies
and pasties market has experienced growth of 11.9% between 2005 and
2010 (Mintel). British dishes account for £355m of
£1bn-a-year ready meals market. Expected to reach £2.7
billion in 2010, the ready meals market has grown by just 7% since
2005. The market contracted in 2008 as a result of consumer cut
backs, but has bounced back strongly since, suggesting that the six
million users switching to more cooking have not been lost for good.
STOP PRESS 2012
Theres a new for trend eating out in the UK and its
rapidly overtaking the traditional fast food restaurants that have
fared so well as consumers trade down in the recession.
Research from expert foodservice analysts, The NPD Group, reveals
that since their arrival in the UK in 2001, fast casual restaurants
that combine the ambiance of a full service restaurant with
the speed and delivery of a fast food/quick service restaurant (QSR)
have built a 3.0% share of the £49.2 billion foodservice
market in the UK.
In fact, for the 12 months ending March 2012,
the fast casual sector posted a 3.6% increase in consumer visits and
sales growth of 2.5%. This compares to a 0.9% increase in consumer
visits and 1.6% sales growth for QSR, a channel considered by many to
be the bright spot in foodservice over the last few years. Fast
casual restaurants that offer consumers a fresh alternative to
traditional fast food generally pay greater attention to food quality
and service, as well as ambiance, décor and design. Chains
such as Chipotle, offering Mexican food and Vapiano, with its fresh
take on Italian food, epitomise the attributes of fast casual dining.
Others include Nandos, where consumers pay for their meals when
ordered, enabling them to leave when they choose without waiting for
the bill. Food is priced to enable young consumers to dine out.
Despite the problems for London restaurants
with the Olympic Games, Harden's Guide notes that there have been 134
new openings in London in the past year (up 25%) compared to 74
2013 There are now
226,350 informal eating out outlets dominated by fast food with
Subway leading the expansion with 134 new stores and Dominos with
102. (Allegra). Jamie Oliver's high street chain Jamie's Italian is
the brand with the highest sales per outlet. They also found eating
out to be more frequent with 4.1 lunchtime visits per month in 2011
as against 4.2 in 2012 and dinner from 2.4 in 2011 to 2.7 in 2012.
Lunchtime spend was down from £7.34 to £7.07 but diner up
from £13.11 to £14.37.
Food prices rose in UK 22% between 2007 and
2013 whilst rising only 12% in Germany and 13% in France. Household
expenditure on food and drink was £107bn in 2012 with consumers
spending £80.7bn on catering services. Consumer expenditure
continued to rise in 2012 to £188 billion on food, drink and
catering with the spend on alcohol up 6%.
Alcohol was 61% more expensive in UK than in
France with prices in UK the highest in the EU apart from Turkey,
Ireland and the Scadinavian countries.
- There are now estimated to be 2000 Thai restaurants in UK with
Trip Advisor listing 359 in London alone. The total food service and
hospitality market will be £90bn by 2018 (Allegra). 19 million
eat out at least once a week compared with 17m in 2013 and total
outlets wuill reach 337,000 by 2018 (Allegra). Main trend remains
value for money.