How Do I: Understand What Is Foodservice?
How Do I: Understand What Is Foodservice? The purpose of this guide is to give Scottish food and drink manufacturers an overview of the UK Foodservice market, especially those companies who have ambition to enter this market for the first time. Whether for market entry or development this guide should be used in conjunction with other How do I? guides such as How do I: know if I am ready to supply the foodservice market? and How do I: better understand public sector tendering? KEY MARKET FACTS Foodservice sales are worth £27bn at consumer prices Foodservice sales account for 30% of consumer food purchases The foodservice market is worth around £8bn at suppliers’ prices There are over 260,000 foodservice outlets 2,500 groups account for 40% of the market. 200,000 independents make up the rest Compass Group, Sodexho and Aramark are the three largest contract caterers McDonalds and Burger King are the two largest operators/franchisors in the quick service sector 3663 and Brakes are the two largest delivered wholesalers Booker is the largest Cash & Carry operator Some food service operators will require suppliers to have industry accreditation in areas such as quality, safety and due dilligence. BRC Global Food (British Retail Consortium) and Safe and Local Supplier Approval (SALSA) are most common. Food and drink companies are encouraged to find out more about these schemes and how to gain accreditation. SALSA - suitable for small food processing businesses supplying locally, such as start-up food businesses; www.salsafood.co.uk http://www.sfqc.co.uk/processing/safeandlocalsuppliersapprovalsalsa BRC - suitable for established food processing businesses seeking to distribute products nationally or internationally. www.brcglobalstandards.com http://sfqc.co.uk/processing/britishretailconsortiumbrc (Source TL Dempster Strategy & Research 2006) The Structure of the UK Food Market The Value of the UK Food Market The UK food market is estimated to be worth approximately £90 billion. Between 2003 and 2004, the retail market grew by 4.1%, the food service market by 2.6%, and the market as a whole by 3.6%. The retail market is more than double the value of foodservice, but foodservice outlets outnumber retail by 2 to 1 £M 100% 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 33% 130,000 outlets 80% 60% 70% £64 billion Foodservice Retail 40% 20% 67% 260,000 outlets 30% £27 billion 0% Market Value 2003 Foodservice Outlets 2004 Retail Total (Source TL Dempster Strategy & Research 2006) (Source TL Dempster Strategy & Research 2006) The value of the UK Foodservice Market Foodservice Meal Consumption by Region The UK Foodservice sector is currently valued at £26.7bn, an increase of 22% since 1999 London and the South East is the most important region for eating out, primarily due to above average per capita income and high levels of tourist activity. This area is clearly a most attractive target for food and drink suppliers, and local competition is intense. Scotland has the joint lowest percentage of eating out, but this has increased in recent years and is likely to continue to do so in the future. 30,000 8% 25,000 13% 36% £M 20,000 10% 15,000 10,000 12% 8% 13% 5,000 London & SE Yorkshire & NE 0 1999 2000 2001 2002 2003 East Wales & SW Midlands Scotland 2004 (Source TL Dempster Strategy & Research 2006) (Source TL Dempster Strategy & Research 2006) North West The structure of the UK Foodservice sector Foodservice Market Map 2,500+ Groups account for 40% of the market 200,000+ Independents make up the 60% balance Foodservice Profit Sector Restaurants Hotel High Street Fine Dining Local In-Store Food Courts, Malls, Shopping Centres Coffee Shops Tea Rooms Bakers Cafeterias Quick Service Restaurants Site Based Pubs Pubs Food Primary Function Burger Chicken Pizza Ethnic Fish & Chips Bakers Sandwich Shops Ice Cream Home Delivery Retail Restaurants Outdoor Eating Bar food Clubs Night Clubs Social Clubs Private Member Clubs Food Secondary Function Garden Centres Sandwiches & Snacks Forecourts Supermarkets Convenience Store Newsagent Mobile Operators Source: TL Dempster Strategy & Research 2006 Cost Sector Hotels Leisure Full Service Guest House B&B Sports Sports Centres Health Clubs Sports Clubs Stadia Speciality eg. Racecource Tourist Attractions Stately Homes, etc Museums Galleries Theme Parks Zoos, Safari Parks Cinemas, Theatres Casinos, Bingo Halls Holiday Camps Travel Outside Caterers Staff Catering Contract Self Managed Facilities Management Healthcare Education Services Local Authorities Schools, Colleges, Universities Hospitals Nursing Homes Social Services Police Prisons Armed Services The Structure of the UK Foodservice Market by Number of Outlets The Structure of the UK Foodservice Market by Number of Meals Served Pubs have the highest number of outlets, closely followed by hotels. However, a proportion of these, especially small hotels and B&Bs, will serve little food. Restaurants, QSRs and pubs serve almost three quarters of all meals. This is a group which purchases primarily from foodservice wholesalers such as 3663 and Brakes. 969 51,267 47,389 29,496 509 396 18,995 26,208 20,839 50 2,600 129 223 31,048 34,630 Restaurants Quick Service Pubs Hotels Staff Catering Health Care Education Services (Source TL Dempster Strategy & Research 2006) Leisure 26 253 90 Restaurants Quick Service Pubs Hotels Staff Catering Health Care Education Services (Source TL Dempster Strategy & Research 2006) Leisure Foodservice Meal Consumption by Sector and Consumer Type Foodservice Sector Meal Consumption by Day of Week Adult females consume more meals in the profit sector because of the higher levels of ‘eating out’ with friends. Not surprisingly, school meals account for the higher child consumption of meals in the cost sector In contrast to the cost sector, almost 40% of all foodservice meals consumed within the profit sector are consumed at the weekend. The differing demand for products within these two sectors may have significant implications for suppliers, for example, of fresh produce. % of meals consumed 100% 80% 36 44 30 25 60% 31 40% 38 Adult females Adult males Children 20 15 10 20% 33 18 5 0 0% Monday Profit Sector Cost Sector (Source TL Dempster Strategy & Research 2006) Tuesday Wednesday Thursday Profit sector (Source TL Dempster Strategy & Research 2006) Friday Saturday Cost sector Sunday The Structure of the UK Foodservice Market – Major Routes to Market Foodservice Meal Consumption by Time of Day Manufacturer/Producer/Supplier Cost sector consumption concentrated in the early afternoon 40 Contract Distributor 35 Profit % o f m e a ls c o n s u m e d 30 25 Cost Profit sector consumption primarily mid-evening Delivered Wholesaler Cash & Carry 20 15 Others inc. Retail 10 5 t gh ni gh t-6 am m id Foodservice Operator M pm -M id -1 pm 10 11 (Source TL Dempster Strategy & Research 2006) ni 1p 0p m pm 9p m -1 pm 8p m -9 pm 7p m -8 pm -7 m 6p 5p m -6 pm pm 4p m -5 pm 3p m -4 pm -3 m 2p pm -2 m 1p n No on oo -N am 11 -1 m m 1a 0a 10 am -1 -1 m 9a 6A M -9 AM 0 (Source TL Dempster Strategy & Research 2006) The Structure of the UK Foodservice Market Food Purchases by Major Routes to Market OTHER USEFUL SOURCES OF INFORMATION Over half of all food sold to foodservice operators is delivered wholesale. Larger operators will invariably purchase from national wholesalers. Smaller outlets may also use a wholesaler, but may also buy from Cash & Carries or even retail stores. 53% Visit www.scotlandfoodanddrink.org and choose Marketing & Sales or Foodservice Zone: Marketing & Sales Zone: access relevant data sources available on markets, sectors, exports and more. The Business Directory also features a constantly updated list of specialist marketing suppliers. Foodservice Zone: access foodservice-specific market data and download free profiles on the UK’s largest catering operators. 13% There are many other How Do I? Guides which can help you grow your business www.scotlandfoodanddrink.org - The information service tailored to the food and drink industry. To contact Scotland Food & Drink please call us on 0131 524 8632 or, to access our food and drink information Helpline, contact us on 0845 601 3752. 16% 18% Delivered Wholesaler Cash & Carry Contract Distribution (Source TL Dempster Strategy & Research 2006) Others including retail
© Copyright 2024