Transcript THE NATIONAL TRUST

Strategic Analytical
Review of the Catering
Sector
James Guild
Oliver Benbow
Gareth Williams
Claire Ryder
Lisa Westwood
Bournemouth University
BAIHM
Business Strategy
Introduction
Catering sector consists of:
- Restaurants
- Takeaways/Café’s
- Pubs/Bars
- Hotels
Each sub-sector caters for a similar
segment of the entire market
Investing in the sector?
Introduction - statistics
Restaurants take up 68% of the eating
out market
Market value reached an estimated
21.8 billion pounds in 2000
This indicates a market growth of 6%
between 1995 and 2000
2 in 10 adults are choosing to eat out
more often (leisure intelligence, 2001)
Analysed Sector Restaurants
Restaurants
- Fine Dining
- Independent /Privately owned
- Brassiere
- Ethnic
- A la Carte
- Table d’hote
- Themed/Branded Restaurants
Boston Consultancy
Group Model
Reason for analysing Restaurants:
High
Market Share
Hotels
Convenience
f oods
Restaurants
Pubs/Bars
Roadside
Catering
Growth
Low
Low
Trends In The Catering
Sector
People want value for money
More leisure time
Social trends towards a healthier
lifestyle
Increase in PDI and consumer
expenditure
Increase PDI and Consumer
Expenditure Trends 1994-1999
700
600
500
£Bn
400
300
200
Consumer Expenditure
PDI
100
0
1994
1995
1996
1997
Year
1998
1999
Increase in eating out
Trends In The Catering
Industry
Inbound tourism
30000
25000
20000
15000
10000
5000
0
1995
1996
1997
1998
1999
2000
2001
Spending(£000) 11763 12290 12244 12671 12498 12780 10500
Visits(000)
23537 25163 25515 25747 25934 25192 20250
Competitors
Direct
- Takeaways/Café’s
- Supermarket/Convenience Food
- Pubs
- Hotels
- Contract Catering i.e. in store
Competitors
Indirect
- Theme parks
- Leisure centres
- Shopping centres
- Cinemas
- Hobbies
(DEEPLIST) Factors
Influencing The Catering
Sector
Demographic
- American demography of “large portions”
- Woman from a large % of customers to
restaurants in the daytime, however equal
split during the evening
- Consumers continue to seek value for
money, with an AVG spend per capita of
£389
- The UK public with the help of technology
are more knowledgeable regarding foreign/
branded food
(DEEPLIST) Factors
Influencing The Catering
Sector
Economic
- Possible predicted “recession”
- Current base rate lowest ever for decades
- Food prices remain constant in the industry,
following BSC and foot and mouth
- Economic cycles
(DEEPLIST) Factors
Influencing The Catering
Sector
Ecological
- Consideration towards the use of recyclable
goods
- Possibility of extra operating expenses due
to environmental friendliness
- Foot and mouth
(DEEPLIST) Factors
Influencing The Catering
Sector
Political
- Impact of current worldwide political unrest
- Implications of the Euro on the future
economic position within the UK
- Policies on subsidisation
(DEEPLIST) Factors
Influencing The Catering
Sector
Legal
- Legislation regarding increased minimum
wage
- European Union working time directive, 48
hour working week
- Food and Safety Act 1995
- Disability Discrimination Act (Updated)
(DEEPLIST) Factors
Influencing The Catering
Sector
Informational
- Increased access to multimedia systems
- Virtual tours
- Consumers choice to access and research
specified eating requirements
(DEEPLIST) Factors
Influencing The Catering
Sector
Social
- Competition for leisure time
- More women are working
- Family orientation values (cocooning)
- Large target market
- Consumers are comfortable with established
high street branded restaurants
(DEEPLIST) Factors
Influencing The Catering
Sector
Technological
- Cook-chill methods are on the increase
allowing for a less skilled workforce to be
employed
- Growing use of internet
- More consumer awareness via media
publications
Risk Factors For Market
Entry
Saturated market
Predicted recession
High start up costs
Increased home leisure activities
Strict legislative factors
Ego of founder
Uncertainty of foreign expenditure
1998 TOURIST EXPENDITURE IN THE
UK
USA
20%
GERMANY
7%
FRANCE
6%
OTHER
57%
ITALY
4%
HOLLAND
3%
AUSTRALIA
3%
Future Trends In The
Catering Industry
Systematically increasing Disposable income
Indirect competitors expected to gain in
popularity in the next 4 years (i.e.theme
parks)
Social trends towards a healthier lifestyle
Main target market (55+) is growing in age
and numbers
Main Market Audience
Recommendations
Branding/theme of product
- possible franchise affiliation
Strive to offer value for money
Reserve of adequate capital
Use celebrity image to produce image of
quality
Develop effective marketing strategies
- target correct and emerging markets
Recommendations
Demographic location/infrastructure
Know your legislation
Effective and efficient use of resources
Conclusion
The next 5 yrs will see an uncertain economic
climate, worldwide. However current trends
indicate a growth in eating establishments,
particularly branded outlets. People will
continue to eat out,as it is now a characteristic
of the population!