Eating out
Eating out
By 2020 Britons are likely to spend more money on eating out than on food they eat at home, according to a new report from catering market specialists Foodservice Intelligence.
The report, called Catering Forecasts 1999, cites similarities between the US and British markets and reveals that, despite some differences, the story which is developing across the pond will be repeated over here.
Currently the percentage of food dollars spent on eating out in the USA is 52.7 per cent having risen from 39.2 per cent in 1977. With the UK eating out market running roughly 25 years behind that in the USA it is likely that within the next few years the UK will be in the same position.
This means that more and more people will rely on eating food out of the home and it could be that eventually the catering market will become more powerful than the retailers who have had a major hold on the food market for the last few years.
The report takes into account the chances of a recession slowing growth but points out that because of changes in lifestyle the catering market will continue as a major force in the economy. In fact it predicts that in the long term some key areas will grow considerably.
These areas, which the report calls the "Activity" sector, are:
hotels;
pubs;
travel and leisure.
Key findings and highlights of the report include:
It is likely that the number of meals served by caterers will increase by 400 million by the year 2002.
The retail market is innovating rapidly to cope with the threat of the food-service market which is predicted to be larger than the retail sector by 2020 if present trends continue.
In the short term the market will be affected by: changes in economic growth, the rise of tourism and the growth of eating out as entertainment and food as "fashion".
It is likely that a recession or economic slow down will lead in the short term to a reduction in the prices of meals. People will: trade down to cheaper establishments and choose cheaper menu items or miss out starters and desserts. Meanwhile operators are likely to offer special reductions.
Changes in lifestyles which have affected the eating out market include: a more relaxed attitude to eating out; the fracturing of family life with more single parents and smaller households; longer working hours with a 24 hour a day economic life becoming an increasing reality.
There will be less money coming into the country from foreign tourists and businessmen because they are likely to come from Europe rather than Asia. Those who have not travelled long distances and prepared for a special holiday may not be as willing to spend as those who came from Asia. However, tourism is likely to increase eventually.
Operators are facing new challenges which are a result of the fact that customers these days are fickle and they demand more from their eating out experience, seeing food as a "fashion" item and wanting entertainment as well as feeding.
Home meal replacement, which includes take-aways from supermarkets and chilled foods, is a growing market.
In the public sector there is likely to be some form of market segmentation with some sectors seeking to increase sales while others concentrate on reducing costs.
The role of outside contractors in this sector, which has been falling, will continue to decline.
Group operators are likely grow in size by acquiring smaller groups and by using their access to funds to drive expansion of the acquired businesses. Obviously those groups who have more funds are likely to weather any downturn in the economy more easily than independents.
Barriers are coming down between France and Britain and there are growing similarities between the catering markets. This looks likely to continue with more and more French people coming to live and work in the UK, many of them in the food-service industry.
Catering Forecasts 1999 is priced at £650 plus VAT and is available from Umesh Raichada, Publications Manager, Foodservice Intelligence Ltd, 84 Uxbridge Road, London W13 8RA. Tel: 0181 799 3200; Fax: 0181 566 2100.
