The UK Catering Market Grew By an Estimated 4.3% in 2007 to GBP 32.44Bn at Current Retail Selling Prices
Research and Markets (http://www.researchandmarkets.com/reports/c88974) has announced the addition of “Catering Market – Market Review 2008″ to their offering.
The UK catering market grew by an estimated 4.3% in 2007 to £32.44bn at current retail selling prices (rsp). The industry as covered includes the following markets: restaurants; fast food and takeaways; contract catering and food service management; hotels; public houses; licensed clubs; and holiday camps/villages and caravan/camping sites. In 2007, the fastest-growing market was public houses. However, all markets demonstrated some growth during the year.
Companies involved in catering faced a challenging marketplace in 2007, with pubs and high-street dining chains being affected by the smoking ban (which was introduced progressively throughout the UK in 2006/2007), consumer concerns about high interest rates and the need to reduce debt, and tighter consumer-credit lending restrictions by banks. Profit warnings were issued by a number of restaurant chains in the second half of the year, and the low-cost finance deals that fuelled much of the takeover and merger activity witnessed in recent years has become less common.
The introduction of the smoking ban across the UK has presented the catering industry — and pubs, licensed clubs and restaurants, in particular –with one of its greatest challenges. For example, operators of bingo clubs, which attract a high proportion of smokers, have been badly affected by the ban, and public houses that cater mainly for drinkers, have no outside drinking area and offer a minimal food service are also under pressure. Some restaurants that attracted large numbers of smokers before the ban might also be affected by the potential loss of this customer group. By contrast, the many public houses and pub-restaurant groups that place a strong emphasis on food are already reporting increasing sales from their establishments.
In 2007, the volume of beer sold through pubs was at its lowest level since the 1930s. In the face of this, food sales have gained even greater importance for the leading pub chains, and many have introduced initiatives aimed at stimulating the market, such as: investment in upgrading pubs; the development of menus, with greater emphasis on local sourcing and healthy eating; and promotional activity targeted at families and more mature customers. The development of catering formats that are appropriate for different markets is also being pursued, e.g. pubs that specialise in particular types of food, such as seafood, meat or pizza/pasta.
We forecast that the UK catering market will produce further steady growth over the period from 2008 to 2012, although, in the short term, the possibility of lower consumer spending could affect sales in some sectors. Over the longer term, the UK economy is expected to remain favourable, and a strong incoming tourist market should continue to boost sales. The expansion and refurbishment plans of many of the leading operators, combined with the greater emphasis on food by many of the leading pub chains, should also encourage sales growth. Although the medium-term impact of the smoking ban remains uncertain, most of the leading pub and restaurant chains are confident that a smoke-free atmosphere will benefit sales in the long term.
Companies Mentioned:
Burger King Ltd
Financial Results
Guoman Hotels Ltd
Financial Results
Marston’s PLC
Financial Results
Millennium & Copthorne Hotels PLC
Financial Results
The Rank Group PLC
Financial Results
The Restaurant Group PLC
Financial Results
Sodexo Ltd
Financial Results
Yum! Brands Inc
The Clapham House Group PLC
Gondola Holdings Ltd
Greene King PLC
The Laurel Pub Company Ltd
Little Chef
Whitbread PLC
Greggs PLC
Lyndale Foods Ltd
O’Briens Irish Sandwich Bars (UK) Ltd
Pret A Manger (Europe) Ltd
Subway
Burgers
BurgerKing Ltd
McDonald’s Restaurants Ltd
Wimpy Ltd
Domino’s Pizza UK & Ireland PLC
Perfect Pizza Ltd
Pizza Hut
Harry Ramsden’s Ltd
Kentucky Fried Chicken (Great Britain) Ltd
Aramark Ltd
Compass Group PLC
Elior UK Ltd
Initial Catering Services Ltd
Sodexo Ltd
WSH Group Ltd
Charlton House Catering Services Ltd
Lindley Catering Ltd
Massarella Catering Ltd
OCS Group Ltd
Accor UK Ltd
The Alternative Hotel Group Ltd
Best Western
Britannia Hotels Ltd
Choice Hotels Europe
Millennium & Copthorne Hotels PLC
Premier Inn Hotels Ltd
Travelodge Hotels Ltd
Admiral Taverns Ltd
Enterprise Inns PLC
Greene King PLC
Marston’s PLC
Mitchells & Butlers PLC
Punch Taverns PLC
Scottish & Newcastle Pub Enterprises
Spirit (SGL) Ltd
Wellington Pub Company PLC
JD Wetherspoon PLC
Gala Coral Group Ltd
Genting International PLC
Harrah’s Entertainment Inc
Novus Leisure Ltd
The Rank Group PLC
Bourne Leisure Ltd
Center Parcs Ltd
Pontins Ltd
For more information, visit http://www.researchandmarkets.com/reports/c88974