UK Catering Market

• Publication date: March 2007
• Report size: 228 pages

The UK catering market grew by an estimated 4% in 2006 to £30.91bn at retail selling prices (rsp). The industry as covered by Key Note includes the following markets: restaurants; fast food and takeaways; contract catering and foodservice management; hotels; public houses; licensed clubs; and holiday camps/villages and caravan/camping sites. In 2006, the fastest-growing market was public houses, followed by restaurants. However, all markets demo...

The UK catering market grew by an estimated 4% in 2006 to £30.91bn at retail selling prices (rsp). The industry as covered by Key Note includes the following markets: restaurants; fast food and takeaways; contract catering and foodservice management; hotels; public houses; licensed clubs; and holiday camps/villages and caravan/camping sites. In 2006, the fastest-growing market was public houses, followed by restaurants. However, all markets demonstrated some growth during the year.

The catering industry is gearing up for the Government's smoking ban, which will be introduced across the UK by July 2007. The ban already applies in Scotland and its impact there suggests that large pubs serving high volumes of good food at attractive prices can benefit from it, although smaller pubs, with limited food capacity and a bias towards beer sales might suffer. To minimise the adverse impact of the smoking ban, many pub operators are developing their gardens and outside sheltered areas. Others aim to widen the social appeal of their pubs in order to attract new, casual dining customers, who currently avoid pubs because of tobacco smoke.

Many leading organisations in the catering industry, including most of the large pub companies, are investigating the opportunities provided by the Real Estate Investment Trusts (REIT) legislation, which came into effect in January 2007. REITs are tax-efficient investment vehicles that enable companies to set up, develop, manage and sell real-estate assets. They also allow participants to invest in a portfolio of properties. If the leading pub companies do not convert to REIT status, they could become bid targets from private-equity companies.

The UK catering industry continues to undergo a considerable amount of merger and acquisition activity. This was a particular feature of the public houses sector in 2006, although it has also occurred in most other sectors, including restaurants, contract catering, hotels and licensed clubs. In some of these markets, competition for acquisitions has pushed prices up to such high levels that future opportunities for consolidation activity might be limited.

Key Note forecasts that the UK catering market will produce further steady growth over the period to 2011. The UK economy is expected to remain favourable, a strong tourist market should help boost sales, and the expansion and refurbishment plans of many of the leading operators should add to the appeal and attractiveness of the various types of catering outlet. Slightly uncertain at present is the reaction of consumers to the smoking ban and the forecast drop in the number of young people in the population, which could have a negative impact on some markets.

Restaurant And Food Services Industry in the United Kingdom

1. Industry Overview
REPORT COVERAGE
REPORT BACKGROUND
ECONOMIC TRENDS
MARKET SIZE
MARKET SEGMENTATION
INDUSTRY STRUCTURE
MARKET POSITION
KEY TRENDS
Restaurants
Fast Food and Takeaways
Contract Catering and Foodservice Management
Hotels
Public Houses
Other Catering Markets
LEGISLATION
KEY TRADE ASSOCIATIONS
British Beer and Pub Association
British Hospitality Association
HOTREC

2. PEST Analysis
POLITICAL FACTORS
ECONOMIC FACTORS
SOCIAL FACTORS
TECHNOLOGICAL FACTORS

3. Key Note Primary Research
INTRODUCTION
OCCASIONS FOR EATING OUT
During Special Occasions and While on Holiday
While Shopping and For Snacks Between Meals
Before or After Going to the Cinema/Theatre or the Pub
At Airports, Motorway Service Areas and Railway Stations
At Sunday Lunchtimes and For Weekday Breakfasts

4. Competitive Structure
THE MARKETPLACE
Restaurants
Contract Catering
Hotels
Public Houses
Night Clubs
MARKET LEADERS
Compass Group PLC
Ladbrokes PLC
Mitchells & Butlers PLC
Whitbread PLC
Punch Taverns PLC
McDonald's Restaurants Ltd
Enterprise Inns PLC
JD Wetherspoon PLC
Greene King PLC
InterContinental Hotels PLC
Other Companies
BurgerKing Ltd
De Vere Group Ltd
Luminar PLC
Millennium & Copthorne Hotels PLC
PizzaExpress Ltd
The Restaurant Group PLC
Sodexho Ltd
Spirit (SGL) Ltd
Thistle Hotels Ltd
Marstons PLC (The Wolverhampton & Dudley Breweries PLC)
Yum! Brands Inc
OUTSIDE SUPPLIERS
MARKETING ACTIVITY

5. Restaurants
DEFINITION
KEY TRENDS
MARKET SIZE
MARKET SEGMENTATION
Pub Restaurants
Roadside Restaurants
Other Restaurants
SUPPLY STRUCTURE
MAJOR PLAYERS
Ask Restaurants Ltd
Luminar PLC
Mitchells & Butlers PLC
Nando's Chicken Ltd
Paramount Ltd
The People's Restaurant Group Ltd
PizzaExpress Ltd
The Restaurant Group PLC
Spirit (SGL) Ltd
Town Centre Restaurants Ltd
Tragus Holdings Ltd
Whitbread PLC
MARKETING ACTIVITY
BUYING BEHAVIOUR
FORECASTS 2007 TO 2011

6. Fast Food and Takeaways
DEFINITION
KEY TRENDS
MARKET SIZE
MARKET SEGMENTATION
Sandwiches
Burgers
Fish and Chips
Pizza
Chicken
Other Fast Food and Takeaways
SUPPLY STRUCTURE
MAJOR PLAYERS
Sandwiches
Benjys Group Holdings Ltd
Greggs PLC
O'Briens Irish Sandwich Bars (UK) Ltd
Pret A Manger (Europe) Ltd
Subway
Burgers
BurgerKing Ltd
McDonald's Restaurants Ltd
Wimpy Restaurants Group Ltd
Pizza
Domino's Pizza UK & Ireland PLC
Perfect Pizza Ltd
Pizza Hut
Chicken
Kentucky Fried Chicken (Great Britain) Ltd
Other Fast Food and Takeaways
Coffee Shops
Compass Group PLC
MARKETING ACTIVITY
BUYING BEHAVIOUR
FORECASTS 2007 TO 2011

7. Contract Catering and Foodservice Management
DEFINITION
KEY TRENDS
MARKET SIZE
MARKET SEGMENTATION
SUPPLY STRUCTURE
MAJOR PLAYERS
Aramark Ltd
Avenance PLC
Compass Group PLC
Initial Catering Services Ltd
Sodexho Ltd
WSH Group Ltd
Other Companies
Charlton House Catering Services Ltd
Lindley Catering Ltd
Massarella Catering Ltd
OCS Group Ltd
BUYING BEHAVIOUR
Household Expenditure
Education
Survey Findings
Healthcare 125
FORECASTS 2007 TO 2011

8. Hotels
DEFINITION
KEY TRENDS
MARKET SIZE
SUPPLY STRUCTURE
MAJOR PLAYERS
Accor UK Economy Hotels Ltd
Best Western
Choice Hotels Europe
Corus Hotels PLC
De Vere Group PLC
Hilton International
InterContinental Hotels PLC
Jarvis Hotels Ltd
Macdonald Hotels and Resorts Ltd
Millennium & Copthorne Hotels PLC
Premier Travel Inn Ltd
Thistle Hotels Ltd
Travelodge Hotels Ltd
MARKETING ACTIVITY
FORECASTS 2007 TO 2011
The Total Market
Catering Sales

9. Public Houses
DEFINITION
KEY TRENDS
MARKET SIZE
SUPPLY STRUCTURE
MAJOR PLAYERS
Punch Taverns PLC
Enterprise Inns PLC
Marstons PLC (The Wolverhampton & Dudley Breweries PLC)
Greene King PLC
Mitchells & Butlers PLC
Admiral Taverns Ltd
Spirit (SGL) Ltd
Wellington Pub Company PLC
JD Wetherspoon PLC
Other Companies
MARKETING ACTIVITY
BUYING BEHAVIOUR
FORECASTS 2007 TO 2011

10. Other Catering Markets
DEFINITION
KEY TRENDS
LICENSED CLUBS
Definition
Market Size
Supply Structure
Major Players
Gala Coral Group Ltd
London Clubs International PLC
Luminar PLC
Novus Leisure Ltd
The Rank Group PLC
Stanley Leisure PLC
Marketing Activity
Buying Behaviour
Forecasts 2007 to 2011
HOLIDAY CAMPS/VILLAGES AND CARAVAN/CAMPING SITES
Definition
Market Size
Supply Structure
Major Players
Bourne Leisure Ltd
Center Parcs (UK) Group Ltd
Pontins Ltd
Marketing Activity
Forecasts 2007 to 2011

11. A Global Perspective
WORLD TOURISM
SELECTED CATERING MARKETS
Restaurants
Contract Catering and Foodservice Management
Hotels

12. The Future
INTRODUCTION
FORECASTS 2007 TO 2011
FUTURE TRENDS
Merger and Takeover Activity
Bed Tax
Incoming Tourism Market
Impact of the Smoking Ban

13. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
SPENDING FROM SAVINGS

14. Further Sources