Transcript Document
BUSINESS STRATEGY THE CATERING SECTOR INTERNATIONAL HOSPITALITY MANAGEMENT Group 3. 30th November 2001 BECKY DEADMAN, KATY EAGLE, LISA GALLAGHER, LAURA WALTON Format of Presentation •General Catering Sector - specifically looking at Fast Food •What is Fast Food? •An analysis of the market and competition with analytical tools •Discuss external factors that affect the fast food sector •Consider stakeholders •Look into the future and forecast of the fast food market •Conclusion FAST FOOD OTHER CATERING HOTEL CATERING THE CATERING SECTOR INDEPENDENT & CHAIN RESTAURANTS ROAD SIDE CATERING IN-STORE RESTAURNATS PUB CATERIING The Eating Out Market Fast Food Pub Catering 6% 26% 17% 2% 5% 22% 22% Independent & Chain Restaurants In-store Restaurants Road Side Catering Hotel Catering Other Catering General Eating Out Trends •The eating out sector has increased 32% between 1996 - 2001 •Higher Disposable Income •Demand for Value For Money FAST FOOD •Food which is prepared and served quickly to customers on order •Food may be takeaway or eat on premises •In general Fast Food is collected from a counter, not table service •Relatively cheap food •Convenient Fast Food Includes……. •Burger Bars e.g, McDonalds and Burger King •Pizza Restaurants, Takeaway and Home Delivery Outlets •Pasta Chains e.g, Bella Pasta •Chicken Chains e.g, KFC •Fish and Chip Shops •Ethnic Takeaway •Other Fast Food e.g, Jacket Potatoes, Sausages, Vegetarian Specialists and filled croissants Burgers Pizzas Fried Chicken Key Pasta Markets Sandwiches Ethnic Takeaway Jacket Potatoes Traditional Juice Bars Organic Specialities New emerging markets The Fast Food Market 2000 Year 99 98 Other Ethnic Takeaway Fried Chicken Fish & Chips Pizza & Pasta Burgers 97 96 95 0 1,000 £m 2,000 Growth of Fast Food Market •Domination of eating out sector •Consumer spending doubled over the last 10 years Market Structure •Large Scale •Characteristics •Key Features Market Environment •Ease of Entry to Market •High Failure Rate •Competitive Fast Food Customer Trends •Core Market - Young, Social & Affluent •Elderly & Cash Constrained •Family Market Regional Differences •Similar throughout the UK •North/ South divide •Reasons for differences BOSTON CONSULTANCY GROUP MATRIX MARKET SHARE Low High Ethnic takeaways Sandwich shops Yo! Sushi GROWTH McDonalds Burger King Low KFC Pizza Hut Wendys Wimpy Harry Ramsdens PORTERS FIVE FORCES MODEL - FAST FOOD Potential entrants Ease of entry into market. Suppliers As a new company suppliers have the bargaining power over the companies. However if there are ample suppliers then the companies are able to choose. Competition/ Rivalry New FF restaurants Existing FF restaurants serving different types of fast food. Substitutes Increased ‘pub’ restaurants which are good value for money. Retail food e.g.. Marks & Spencer's Buyers- Customers Have so much choice that they can now demand value for money and have bargaining power. Factors Affecting the Catering Sector Political •The Governments reaction to Food Scares •The encouragement of healthy eating •Government encouragement for families to sit round the table •Government legislation on employment Economical •High property and operating costs •Increase in taxation Social •Increase in the young eating out •Lifestyle changes •Smaller fast food outlets have a reputation for poor hygiene Technological •Drive through •Advertising and ordering on the internet •Improved cooking techniques and facilities Environmental •Decrease in inbound tourism •Foot and Mouth disease •BSE crisis •September 11th 2001 – Terrorist attacks Stakeholders • Customers • Community • Competitors • Employees • Suppliers • Government • Owners & share holders • Financial lenders The Future Forecast of the Eating out market 2001 - 2005 2001 £m 2002 £m 2003 £m 2004 £m 2005 £m % change Burgers Ethnic takeaway Pizza & pasta Fish & chips Chicken Other fast food Fast Food Total 1,840 1,490 1,021 850 691 126 6,018 1,987 1,553 1,115 893 751 134 6,433 2,130 1,615 1,189 931 807 141 6,813 2,283 1,682 1,267 975 865 150 7,222 2,465 1,764 1,352 1,026 932 160 7,699 +34 +18 +32 +21 +35 +27 +28 Restaurant Total Other venues TOTAL 15,889 1,344 23,251 16,608 1,395 24,436 17,267 1,451 25,531 17,874 1,503 26,599 18,557 1,565 27,821 +17 +16 +20 Source: Mintel Report - Eating Out Review. 18/06/2001 The Future •Fierce Competition •Keep prices down •Consumers demand better quality of food & service and value for money The Future •Personal Disposable Income (PDI) •The socio-economic status of the population •The structure of the UK population •Families will still remain a very attractive market to target The Future •New sales opportunities through the internet •A “gap” in the children’s vegetarian market •The concept of healthy fast food Forecast •Pizza restaurants - key area:delivery •Chicken & Burger bars - the market appears to be saturated •Ethnic takeaway - Chinese & Indian remain popular but new competition from other ethnic cultures •Fish & Chips - remain an old favourite but new fish bars may start to compete Conclusion •Easy to enter but hard to succeed •Highly competitive, diverse and large market •Growth markets are new ethnic takeaways •Move towards healthy eating such as sandwich shops •Positive outlook for the future Thank-you for listening. Any Questions?