Worldwide Business Information and Market Reports
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Worldwide Business Information and Market Reports
Telephone +44 1404 891528 Fax +44 1404 891717 Email reportfinder @ tiscali.co.uk
Editor: Emma Wiggin
ISBN: 1-84168-177-6
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This report covers: fast food, sandwiches, burgers, fish and chips, pizzas, chicken, ethnic foods,Chinese meals, Indian meals, coffee shops, soup bars
Companies covered include: Greggs, Prêt-à-Manger, DeliFrance, McDonald's Restaurants, Burger King, Wimpy restaurants Group, Pizza Hut, Perfect Pizza, Domino's Pizza, Deep Pan Pizza Company, Kentucky Fried Chicken, Southern Fried Chicken, Favourite Fried Chicken, Nando's Chickenland, Spud-U-Like, Harry Ramsden's, Select Service Partner, The Light Refreshment Company
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Executive Summary Table of Contents
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EngineThe UK fast food and home delivery market was
valued at £7.3bn in 2000 — an increase of 4 percent over 1999. Healthy
annual sales growth has been a feature of the sector in recent years, as higher
disposable incomes have enabled consumers to spend more on eating out, and
demands for convenience foods have grown. Store expansion by the leading fast
food brands continues to be a key driver affecting annual sales growth.
The
largest sector of the market is sandwiches. Sandwiches form a buoyant sector,
recording one of the highest sales increases of all the sectors in 2000. The
sandwich sector has benefited from a number of factors, including the growth in
the number of office workers, shorter lunch breaks, demands for healthier foods
and the development of a premium sandwich sector. The second-largest market
sector is burgers. The burger market struggled in 1996 due to the BSE (bovine
spongiform encephalopathy) crisis but, since then, annual sales growth has
averaged around 6 percent, boosted by new store openings. The pizza market has
benefited from a period of rationalisation in both the eat-in and home delivery
sectors. Menu diversification and new outlets have also helped to boost sales.
The best performing sector in 2000 was chicken, which is often perceived as
a healthy fast food option. Improvements to outlets, new larger outlets and
attempts to attract more family diners have all helped sales. The fish and
chips sector — the traditional British takeaway — continues to suffer
from a fragmented structure, a lack of branding and continued competition from
global fast food brands. Indian and Chinese takeaways form the largest
subsectors in the ‘other fast food and takeaway outlets’ sector.
These outlets suffer from the same problems as the fish and chips sector.
Developing subsectors in the ‘other fast food’ category include
coffee shops, soup bars and bagel outlets.
The fast food and takeaway
market is dominated by global brands, led by McDonald’s, Burger King, KFC
and Pizza Hut. These brands have extended their store networks significantly in
recent years. However, there are some national chains emerging in the UK,
particularly in the sandwich sector. All these brands are benefiting from the
demands for more convenience foods, and from the busy lifestyles that are
reducing the time available for home food preparation.
The market is
forecast to increase at approximately the same rate in 2001 as in 2000 and
should experience steady annual growth up to 2005. An increasing number of
working women, more dual-income families with children and more single-person
households will be among the factors impacting on sales. Store expansion will
continue and ordering via the Internet will become a feature of the market. The
two sectors expected to show the strongest growth will be sandwiches and
chicken. However, growing concerns about healthy eating and obesity, especially
amongst children, could be factors weakening sales in the next few years.
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| Executive Summary | 1 |
| 1. Market Definition | 2 |
| REPORT COVERAGE | 2 |
| MARKET SECTORS | 2 |
| Sandwiches | 2 |
| Burgers | 2 |
| Fish and Chips | 3 |
| Pizza | 3 |
| Chicken | 3 |
| Other Fast Food and Takeaway Outlets | 3 |
| MARKET TRENDS | 3 |
| Increasing Consumption | 3 |
| Outlet Expansion | 4 |
| New Concepts | 4 |
| Menu Diversification | 4 |
| Snacking and Grazing | 4 |
| Increased Competition | 4 |
| MARKET POSITION | 5 |
| UK | 5 |
| Table 1: The UK Catering and Fast Food and Home Delivery Markets at Current Prices (£m at rsp), 1996-2000 | 5 |
| Overseas | 5 |
| KEY TRADE ASSOCIATIONS | 6 |
| British Franchising Association | 6 |
| British Hospitality Association | 6 |
| British Sandwich Association | 6 |
| National Federation of Fish Fryers | 6 |
| Pizza, Pasta and Italian Food Association | 6 |
| 2. Market Size | 7 |
| THE TOTAL MARKET | 7 |
| Table 2: The UK Fast Food and Home Delivery Marketby Value (£m at rsp), 1996-2000 | 7 |
| BY MARKET SECTOR | 7 |
| Table 3: The UK Fast Food and Home Delivery Market by Sector by Value (£m at rsp and percent), 2000 | 8 |
| Sandwiches | 8 |
| Table 4: The UK Sandwich Market by Value (£m at rsp and percent), 1996-2000 | 9 |
| Burgers | 9 |
| Table 5: The UK Burger Market by Value (£m at rsp and percent), 1996-2000 | 9 |
| Fish and Chips | 10 |
| Table 6: The UK Fish and Chips Market by Value (£m at rsp and percent), 1996-2000 | 10 |
| Pizzas | 10 |
| Table 7: The UK Pizza Market by Value (£m at rsp and percent), 1996-2000 | 11 |
| Chicken | 11 |
| Table 8: The UK Chicken Market by Value (£m at rsp and percent), 1996-2000 | 12 |
| Other Fast Food and Takeaway Outlets | 12 |
| Table 9: The UK Other Fast Food and Takeaway Outlets Market by Value (£m at rsp and percent), 1996-2000 | 13 |
| 3. Industry Background | 14 |
| RECENT HISTORY | 14 |
| NUMBER OF OUTLETS | 14 |
| Table 10: Estimated Number of Outlets in the Fast Food and Home Delivery Market (number of outlets and percent), 2000 | 15 |
| Industry Concentration | 15 |
| Table 11: Number of VAT-Based Restaurant and Takeaway Enterprises by Turnover Sizeband (number and percent), 2000 | 15 |
| REGIONAL VARIATIONS IN THE MARKETPLACE | 16 |
| HOW ROBUST IS THE MARKET? | 17 |
| LEGISLATION | 17 |
| Employment- and Customer-Related Legislation | 17 |
| Minimum Wage | 17 |
| Part-Time Workers Regulations | 18 |
| Employment Relations Act, 1999 | 18 |
| Disability Discrimination Act, 1996 | 18 |
| Food-Related Legislation | 18 |
| Food Standards Agency | 18 |
| Labelling of Genetically-Modified Foods | 18 |
| Food Safety and Hygiene | 19 |
| Health and Safety Executive | 19 |
| 4. Competitor Analysis | 20 |
| THE MARKETPLACE | 20 |
| MARKET LEADERS | 20 |
| Table 12: Leading Fast Food and Home Delivery Chains (number of outlets), 2000 | 21 |
| Burger King Ltd | 21 |
| Domino’s Pizza Group Ltd | 22 |
| Greggs PLC | 23 |
| Kentucky Fried Chicken (Great Britain) Ltd | 23 |
| McDonald’s Restaurants Ltd | 24 |
| Perfect Pizza Ltd | 24 |
| Pizza Hut (UK) Ltd | 25 |
| Prêt-à-Manger (Europe) Ltd | 25 |
| Wimpy Restaurants Group Ltd | 26 |
| Other Companies | 27 |
| Compass Group PLC | 27 |
| Fast Food Systems Ltd | 28 |
| Favorite Fried Chicken Ltd | 28 |
| Nando’s | 28 |
| O’Briens | 28 |
| OUTSIDE SUPPLIERS | 28 |
| Food and Drink | 28 |
| Catering Equipment | 29 |
| Packaging | 29 |
| 5. Brand Strategy | 30 |
| INTRODUCTION | 30 |
| BRANDS | 30 |
| Table 13: Estimated Market Shares of Major Fast Food Brands by Sector by Value ( percent), 2000 | 31 |
| ADVERTISING AND PROMOTION | 31 |
| Table 14: Main Media Advertising Expenditure by Leading Fast Food Companies (£000), Year to December 1999 and 2000 | 32 |
| McDonald’s | 32 |
| Burger King | 33 |
| KFC | 33 |
| Pizza Hut | 33 |
| Domino’s Pizza | 33 |
| 6. Strengths, Weaknesses, Opportunities and Threats | 34 |
| SANDWICHES | 34 |
| BURGERS | 35 |
| FISH AND CHIPS | 35 |
| PIZZA | 36 |
| CHICKEN | 37 |
| OTHER FAST FOOD AND TAKEAWAY OUTLETS | 38 |
| 7. Buying Behaviour | 39 |
| HOUSEHOLD EXPENDITURE | 39 |
| Table 15: Household Expenditure on Restaurant, Café and Takeaway Meals (£ per week), 1995/1996-1999/2000 | 39 |
| Frequency of Visiting Fast Food or Takeaway Outlets | 40 |
| Table 16: Penetration of Takeaway Outlets and Fast Food Restaurants ( percent of adults), 2000 | 40 |
| Table 17: Frequency of Visits to Takeaway Outlets and Fast Food Restaurants ( percent of adults), 2000 | 40 |
| Use of Fast Food and Takeaway Outlets by Sex | 40 |
| Table 18: Penetration of Adults Visiting Takeaway Outlets or Eating In at Fast Food Restaurants by Sex ( percent of adults), 2000 | 41 |
| Use of Fast Food and Takeaway Outlets by Age | 41 |
| Table 19: Penetration of Adults Visiting Takeaway Outlets or Eating In at Fast Food Restaurants by Age Group ( percent of adults), 2000 | 42 |
| Use of Fast Food and Takeaway Outlets by Social Grade | 42 |
| Table 20: Penetration of Adults Visiting Takeaway Outlets or Eating In at Fast Food Restaurants by Social Grade ( percent of adults), 2000 | 42 |
| Use of Fast Food and Takeaway Outlets by Region | 43 |
| Table 21: Penetration of Adults Visiting Takeaway Outlets or Eating In at Fast Food Restaurants by Region ( percent of adults), 2000 | 43 |
| 8. Current Issues | 44 |
| CORPORATE ACTIVITY | 44 |
| Acquisitions and Mergers | 44 |
| Benjy’s | 44 |
| The 11th Earl of Sandwich | 44 |
| Oi! Bagel | 44 |
| Starbucks | 44 |
| Turbochef UK | 45 |
| Van der Bergh Foods | 45 |
| Thistle Hotels | 45 |
| ROLE OF THE INTERNET | 45 |
| McDonalds.co.uk | 45 |
| Burgerking.co.uk | 45 |
| Kfc.co.uk | 46 |
| Dominos.co.uk | 46 |
| Perfectpizza.co.uk | 46 |
| HEALTH ISSUES | 46 |
| 9. The Global Market | 47 |
| INTRODUCTION | 47 |
| THE US | 47 |
| CHINA | 47 |
| JAPAN | 48 |
| AUSTRALIA | 48 |
| 10. Forecasts | 49 |
| INTRODUCTION | 49 |
| FORECASTS 2001 TO 2005 | 49 |
| Table 22: The Forecast UK Fast Food and Home Delivery Market by Value at Current Prices (£m at rsp), 2001-2005 | 49 |
| Table 23: The Forecast UK Fast Food and Home Delivery Market by Sector by Value at Current Prices (£m at rsp), 2001-2005 | 50 |
| MARKET GROWTH | 51 |
| Figure 1: The UK Fast Food and Home Delivery Market by Value (£m at rsp), 1996-2005 | 51 |
| FUTURE TRENDS | 51 |
| Demographics | 51 |
| Competitor Forecasts | 52 |
| The Internet | 52 |
| 11. Company Profiles | 53 |
| Burger King Ltd | 54 |
| Domino’s Pizza Group Ltd | 56 |
| Greggs PLC | 58 |
| Kentucky Fried Chicken (Great Britain) Ltd | 60 |
| McDonald's Restaurants Ltd | 62 |
| Perfect Pizza Ltd | 64 |
| Pizza Hut (UK) Ltd | 66 |
| Prêt-à-Manger (Europe) Ltd | 68 |
| Wimpy Restaurants Group Ltd | 70 |
| 12. Company Financials | 72 |
| 13. Further Sources | 74 |
| Associations | 74 |
| Periodicals | 75 |
| Directories | 76 |
| General Sources | 76 |
| Bonnier Information Sources | 77 |
| Government Publications | 78 |
| Other Sources | 79 |
| Understanding TGI Data | 80 |
| Number, Profile, Penetration | 80 |
| Social Grade | 81 |
| Standard Region | 81 |
| Key Note Research | 82 |
| The Key Note Range of Reports | 83 |
Text © 2001 Key Note
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Last updated by Jacob van Eldik 22th November 2000