The UK Foodservice industry is confident of
revenue growth in 2012
Respondents from companies operating in the profit sector channels are confident with regards to the growth of the foodservice industry over the next 12 months. In total, 62% of respondents from the profit sector channels are “very confident” or “confident” about revenue growth. The highest levels of optimism are identified among foodservice operators in the catering channel, with 82% of such respondents confident of growth. The ongoing recovery of the UK’s economy, rising employment opportunities, the London 2012 Olympic Games and expectations of an increase in disposable income are projected to drive revenue growth within the foodservice industry in 2012.
Overall, 41% of respondents in the cost sector channels expect an increase in foodservice budgets. While 30% of respondents expect no change and 19% expect budgets to decrease.
On average, accommodation foodservice operators expect to see the greatest increase in profitability of 3.4%, followed by operators in the catering channel who expect an increase of 2.9% and operators of pubs, leisure and travel and restaurants who expect respective increases of 1.3% and 0.3%. Operators in the workplace channel project the lowest increase in profitability with a decrease of -1.7%.
Food and beverage prices are expected to increase slightly in 2012, but suppliers are projected to increase their prices
A total of 75% of respondents from the profit sector and 56% from the cost sector expect an increase in food and beverage prices, however, 17% of respondents from the profit sector and 28% of respondents from the cost sector expect prices to “increase considerably.” Concerns such as increases in the cost of raw materials and high inflation rates have severely impacted supplier companies’ profit margins and as a result operators expect suppliers to pass on the price burden to customers over the next 12 months.
Over 65% of respondents across profit sector channels expect supplier prices to increase. Notably, 100% of respondents from the caterers channel and 97% of respondents from the pubs, leisure and travel channel forecast an increase in supplier prices over the next 12 months. With foodservice operators already running with tight margins, any increase in raw material, fuel or commodity prices will force foodservice supplier companies to increase their prices over the next 12 months.
‘Seasonal updating of menu and drink menu options’ is expected to drive demand in 2012
According to 28% and 27% of respective respondents, “improving sanitation and hygiene” and the “seasonal updating of menu and drink menu options” are considered important drivers of customer demand for foodservice operators in the profit sector channels. “Targeting customers’ online” and “innovating menu and drink menu options” are considered important drivers of customer demand as identified by 22% of respondents each.
The “Seasonal updating of menu and drink menu options,” “providing balanced diet options” and “innovating menu and drink menu options” are considered important drivers by 41%, 33% and 31% of respective respondents in the cost sector. Stringent government guidelines with regards to healthy eating habits and a focus on the nutritional value of meals are encouraging foodservice operators to provide a balance diet to educational institutions. The ability to offer cost-effective, balanced diet options will significantly increase an operator‘s chances of success in the market.
The seasonal updating of menus helps foodservice operators to procure food from local farms based on availability. The taste, freshness and safety of such food encourage customers to visit restaurants, pubs and other foodservice outlets. Since local procurement decreases transportation costs products may be offered to customers at reduced prices.
‘Increasing cost of raw materials’, ‘decreasing consumer or government expenditure’ and ‘increase in value added tax’ are key concerns for the UK foodservice industry
According to the survey results, the “increasing cost of raw materials,” “decreasing consumer or government expenditure” and “increase in value added tax” (VAT) are the most pressing business concerns faced by the UK foodservice industry. The “increasing cost of raw materials” is considered a critical concern by 70% of respondents from the profit sector and 59% from the cost sector, as the price of agricultural commodities increases. According to a press release by the Office for National Statistics in December 2011, the highest increase in prices were registered by food and non-alcoholic beverages, wherein the prices of fruits increased by 6.4% and meat by 1.6% during October–November 2011. A rise in fuel prices has also increased the financial pressures on foodservice operators.
With the exception of the restaurants and workplace channels, the majority of respondents across all channels are either “very concerned” or “moderately concerned” about the costs incurred when displaying nutritional or calorie information on their products. With an increasing number of UK citizens‘ dining out and health budgets growing to tackle obesity levels, a total of 37 food companies in September 2011 agreed to voluntarily provide calorie information as part of the government‘s public health responsibility deal. Displaying calorie information on food and drink items is expected to help consumers identify healthier foods and better manage their diets.
‘Price’, ‘quality of product’, ‘existing relationship with supplier’ and ‘speed of delivery’ are key elements of supplier selection process
“Price,” “quality of products,” “existing relationship with supplier,” and “speed of delivery” are considered key factors for supplier selection by respondents in both the profit and cost sectors. Of respondents from the cost sector, “level of after care service” and “healthiness of products” are also considered important by 33% and 44% of respective respondents.
According to 86% and 79% of respective respondents from the profit and cost sectors the “quality of products” is considered one of the primary factors when considering supplier selection. Customers in UK are becoming increasingly aware of buying superior quality, value for money products. The FSA has a set of strict regulations on food usage. It mandates foodservice operators to know the source of their products and food processing quality standards.
An increase in capital expenditure is expected in ‘new product development’, ‘IT infrastructure development’ and ‘equipment machinery or purchase’
“New product development,” “IT infrastructure development” and “equipment or machinery purchase” are areas that will register a “significant increase” or “increase” in investment, as identified by 44%, 43% and 41% of respective profit sector respondents. Foodservice operators are concentrating on innovating new product combinations to attract customers to their food outlets. For example, SeeWoo, a supplier of oriental foods to restaurants, developed the first extra virgin soy sauce in UK in January 2012.
Among cost sector respondents, 42%, 38% and 33% respectively report a “significant increase” or an “increase” in areas such as “IT infrastructure development,” “equipment or machinery purchase” and “expand premises.” During the 2011 survey, “new product development,” investment in “IT infrastructure development” and “equipment or machinery purchase” were identified as areas likely to register an increase in investments.
Offering ‘locally grown produce’, ‘fresh food’ and ‘vegetarian offerings’ are prominent trends in the UK foodservice industry
“Locally grown produce,” “fresh food,” “vegetarian offerings” and “meals prepared from scratch” are the prominent trends identified by respondents from profit and cost sector channels. A growing awareness of healthy eating habits among customers has led to an increase in a demand for fresh food. This has supported the demand for “local produce,” which UK foodservice operators consider one of the best ways to provide fresh food to their customers.
A total of 40% of respondents from the restaurant channel expect an increased investment in “organic produce.” Significantly, many customers are changing their eating habits from away from those foods grown with the aid of pesticides towards organic foods, which contain more nutrients, minerals and vitamins than foodstuffs that have been intensively farmed. Such a change in consumer trends has induced many restaurants in the UK to increase their expenditure towards organic produce.
An increase in capital expenditure is expected in ‘new product development’, ‘IT infrastructure development’ and ‘equipment machinery or purchase’
“New product development,” “IT infrastructure development” and “equipment or machinery purchase” are areas that will register a “significant increase” or “increase” in investment, as identified by 44%, 43% and 41% of respective profit sector respondents. Foodservice operators are concentrating on innovating new product combinations to attract customers to their food outlets. For example, SeeWoo, a supplier of oriental foods to restaurants, developed the first extra virgin soy sauce in UK in January 2012.
Among cost sector respondents, 42%, 38% and 33% respectively report a “significant increase” or an “increase” in areas such as “IT infrastructure development,” “equipment or machinery purchase” and “expand premises.” During the 2011 survey, “new product development,” investment in “IT infrastructure development” and “equipment or machinery purchase” were identified as areas likely to register an increase in investments.
Offering ‘locally grown produce’, ‘fresh food’ and ‘vegetarian offerings’ are prominent trends in the UK foodservice industry
“Locally grown produce,” “fresh food,” “vegetarian offerings” and “meals prepared from scratch” are the prominent trends identified by respondents from profit and cost sector channels. A growing awareness of healthy eating habits among customers has led to an increase in a demand for fresh food. This has supported the demand for “local produce,” which UK foodservice operators consider one of the best ways to provide fresh food to their customers.
A total of 40% of respondents from the restaurant channel expect an increased investment in organic produce‘. Significantly, many customers are changing their eating habits from away from those foods grown with the aid of pesticides towards organic foods, which contain more nutrients, minerals and vitamins than foodstuffs that have been intensively farmed. Such a change in consumer trends has induced many restaurants in the UK to increase their expenditure towards organic produce.
About Industry Review:
Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.
We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.
The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.
With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.
For more information, please visit our website at www.industryreview.com
For more information on the article, please contact:
Press Contact:
Shelly Wills
Tel: +44 (0) 20 7936 6671
shelly.wills@industryreview.com
Respondents from companies operating in the profit sector channels are confident with regards to the growth of the foodservice industry over the next 12 months. In total, 62% of respondents from the profit sector channels are “very confident” or “confident” about revenue growth. The highest levels of optimism are identified among foodservice operators in the catering channel, with 82% of such respondents confident of growth. The ongoing recovery of the UK’s economy, rising employment opportunities, the London 2012 Olympic Games and expectations of an increase in disposable income are projected to drive revenue growth within the foodservice industry in 2012.
Overall, 41% of respondents in the cost sector channels expect an increase in foodservice budgets. While 30% of respondents expect no change and 19% expect budgets to decrease.
On average, accommodation foodservice operators expect to see the greatest increase in profitability of 3.4%, followed by operators in the catering channel who expect an increase of 2.9% and operators of pubs, leisure and travel and restaurants who expect respective increases of 1.3% and 0.3%. Operators in the workplace channel project the lowest increase in profitability with a decrease of -1.7%.
Food and beverage prices are expected to increase slightly in 2012, but suppliers are projected to increase their prices
A total of 75% of respondents from the profit sector and 56% from the cost sector expect an increase in food and beverage prices, however, 17% of respondents from the profit sector and 28% of respondents from the cost sector expect prices to “increase considerably.” Concerns such as increases in the cost of raw materials and high inflation rates have severely impacted supplier companies’ profit margins and as a result operators expect suppliers to pass on the price burden to customers over the next 12 months.
Over 65% of respondents across profit sector channels expect supplier prices to increase. Notably, 100% of respondents from the caterers channel and 97% of respondents from the pubs, leisure and travel channel forecast an increase in supplier prices over the next 12 months. With foodservice operators already running with tight margins, any increase in raw material, fuel or commodity prices will force foodservice supplier companies to increase their prices over the next 12 months.
‘Seasonal updating of menu and drink menu options’ is expected to drive demand in 2012
According to 28% and 27% of respective respondents, “improving sanitation and hygiene” and the “seasonal updating of menu and drink menu options” are considered important drivers of customer demand for foodservice operators in the profit sector channels. “Targeting customers’ online” and “innovating menu and drink menu options” are considered important drivers of customer demand as identified by 22% of respondents each.
The “Seasonal updating of menu and drink menu options,” “providing balanced diet options” and “innovating menu and drink menu options” are considered important drivers by 41%, 33% and 31% of respective respondents in the cost sector. Stringent government guidelines with regards to healthy eating habits and a focus on the nutritional value of meals are encouraging foodservice operators to provide a balance diet to educational institutions. The ability to offer cost-effective, balanced diet options will significantly increase an operator‘s chances of success in the market.
The seasonal updating of menus helps foodservice operators to procure food from local farms based on availability. The taste, freshness and safety of such food encourage customers to visit restaurants, pubs and other foodservice outlets. Since local procurement decreases transportation costs products may be offered to customers at reduced prices.
‘Increasing cost of raw materials’, ‘decreasing consumer or government expenditure’ and ‘increase in value added tax’ are key concerns for the UK foodservice industry
According to the survey results, the “increasing cost of raw materials,” “decreasing consumer or government expenditure” and “increase in value added tax” (VAT) are the most pressing business concerns faced by the UK foodservice industry. The “increasing cost of raw materials” is considered a critical concern by 70% of respondents from the profit sector and 59% from the cost sector, as the price of agricultural commodities increases. According to a press release by the Office for National Statistics in December 2011, the highest increase in prices were registered by food and non-alcoholic beverages, wherein the prices of fruits increased by 6.4% and meat by 1.6% during October–November 2011. A rise in fuel prices has also increased the financial pressures on foodservice operators.
With the exception of the restaurants and workplace channels, the majority of respondents across all channels are either “very concerned” or “moderately concerned” about the costs incurred when displaying nutritional or calorie information on their products. With an increasing number of UK citizens‘ dining out and health budgets growing to tackle obesity levels, a total of 37 food companies in September 2011 agreed to voluntarily provide calorie information as part of the government‘s public health responsibility deal. Displaying calorie information on food and drink items is expected to help consumers identify healthier foods and better manage their diets.
‘Price’, ‘quality of product’, ‘existing relationship with supplier’ and ‘speed of delivery’ are key elements of supplier selection process
“Price,” “quality of products,” “existing relationship with supplier,” and “speed of delivery” are considered key factors for supplier selection by respondents in both the profit and cost sectors. Of respondents from the cost sector, “level of after care service” and “healthiness of products” are also considered important by 33% and 44% of respective respondents.
According to 86% and 79% of respective respondents from the profit and cost sectors the “quality of products” is considered one of the primary factors when considering supplier selection. Customers in UK are becoming increasingly aware of buying superior quality, value for money products. The FSA has a set of strict regulations on food usage. It mandates foodservice operators to know the source of their products and food processing quality standards.
An increase in capital expenditure is expected in ‘new product development’, ‘IT infrastructure development’ and ‘equipment machinery or purchase’
“New product development,” “IT infrastructure development” and “equipment or machinery purchase” are areas that will register a “significant increase” or “increase” in investment, as identified by 44%, 43% and 41% of respective profit sector respondents. Foodservice operators are concentrating on innovating new product combinations to attract customers to their food outlets. For example, SeeWoo, a supplier of oriental foods to restaurants, developed the first extra virgin soy sauce in UK in January 2012.
Among cost sector respondents, 42%, 38% and 33% respectively report a “significant increase” or an “increase” in areas such as “IT infrastructure development,” “equipment or machinery purchase” and “expand premises.” During the 2011 survey, “new product development,” investment in “IT infrastructure development” and “equipment or machinery purchase” were identified as areas likely to register an increase in investments.
Offering ‘locally grown produce’, ‘fresh food’ and ‘vegetarian offerings’ are prominent trends in the UK foodservice industry
“Locally grown produce,” “fresh food,” “vegetarian offerings” and “meals prepared from scratch” are the prominent trends identified by respondents from profit and cost sector channels. A growing awareness of healthy eating habits among customers has led to an increase in a demand for fresh food. This has supported the demand for “local produce,” which UK foodservice operators consider one of the best ways to provide fresh food to their customers.
A total of 40% of respondents from the restaurant channel expect an increased investment in “organic produce.” Significantly, many customers are changing their eating habits from away from those foods grown with the aid of pesticides towards organic foods, which contain more nutrients, minerals and vitamins than foodstuffs that have been intensively farmed. Such a change in consumer trends has induced many restaurants in the UK to increase their expenditure towards organic produce.
An increase in capital expenditure is expected in ‘new product development’, ‘IT infrastructure development’ and ‘equipment machinery or purchase’
“New product development,” “IT infrastructure development” and “equipment or machinery purchase” are areas that will register a “significant increase” or “increase” in investment, as identified by 44%, 43% and 41% of respective profit sector respondents. Foodservice operators are concentrating on innovating new product combinations to attract customers to their food outlets. For example, SeeWoo, a supplier of oriental foods to restaurants, developed the first extra virgin soy sauce in UK in January 2012.
Among cost sector respondents, 42%, 38% and 33% respectively report a “significant increase” or an “increase” in areas such as “IT infrastructure development,” “equipment or machinery purchase” and “expand premises.” During the 2011 survey, “new product development,” investment in “IT infrastructure development” and “equipment or machinery purchase” were identified as areas likely to register an increase in investments.
Offering ‘locally grown produce’, ‘fresh food’ and ‘vegetarian offerings’ are prominent trends in the UK foodservice industry
“Locally grown produce,” “fresh food,” “vegetarian offerings” and “meals prepared from scratch” are the prominent trends identified by respondents from profit and cost sector channels. A growing awareness of healthy eating habits among customers has led to an increase in a demand for fresh food. This has supported the demand for “local produce,” which UK foodservice operators consider one of the best ways to provide fresh food to their customers.
A total of 40% of respondents from the restaurant channel expect an increased investment in organic produce‘. Significantly, many customers are changing their eating habits from away from those foods grown with the aid of pesticides towards organic foods, which contain more nutrients, minerals and vitamins than foodstuffs that have been intensively farmed. Such a change in consumer trends has induced many restaurants in the UK to increase their expenditure towards organic produce.
About Industry Review:
Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.
We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.
The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.
With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.
For more information, please visit our website at www.industryreview.com
For more information on the article, please contact:
Press Contact:
Shelly Wills
Tel: +44 (0) 20 7936 6671
shelly.wills@industryreview.com
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