Uk F&B Market Size

Topics: Alcoholic beverage, Public house, Restaurant Pages: 11 (1791 words) Published: August 28, 2013
MARKET SIZING

F&B LANDSCAPE

F&B LANDSCAPE

UK FOODSERVICE MARKET
Food Retail Market £150.8 bn Fullservice restaurant s £ 15.7 bn (29.1%) Cafes/Bars £14.75 bn (27.3%) Fast food £13.8 bn (25.6%) •Foodservice is defined as food consumed away from home. •FSR serve customers meals at the table, receive waitress services and typically pay at the end of the meal. •Cafes are defined as establishments which primarily serve coffee. •Bars are establishments which serve alcoholic drinks for consumption on the premise. Some feature entertainment.

Foodservice Market £54 bn

Home Delivery/ Others £9.75 bn (18.1%)

UK RESTAURANT MARKET VALUE
Year Restaura nt revenue (in £ billion) % Growt h Year Restaura nt revenue (in £ billion) % Growt h

2007
2008 2009 2010 2011

48.3
50.1 49.0 50.3 53.6 3.8% (2.4%) 2.7% 6.6% 2.6%

2011
2012 2013 2014 2015 2016

53.6
55.1 57.3 59.6 62.1 65.0

6.6%
2.8% 4.0% 4.0% 4.3% 4.7%

CAGR: 200711 Source: Marketline

CAGR: 201116

3.9%

UK DRINKS MARKET VALUE
Year Drinks revenue (in £ billion) 37.1 % Growt h Year Drinks revenue (in £ billion) 33.6 % Growt h (0.7%)

2007

2011

2008
2009 2010 2011 CAGR: 200711

36.2
34.1 33.8 33.6

(2.5%)
(5.9%) (0.7%) (0.7%) (2.5%)

2012
2013 2014 2015 2016

33.6
33.7 33.9 34.1 34.2

0.1%
0.4% 0.5% 0.6% 0.3%

Source: Marketline

CAGR: 201116

0.4%

PUB INDUSTRY LANDSCAPE

MARKET STRUCTURE OF UK PUBS
Ownership Type Sub-total Freehouses Sub-total 16,000 16,850 18,230 55,530 Total 60,000 59,564 Source: Institute for Public Policy Research (IPPR) 1989 2004 2009 Managed/Leased pubs 44,000 42,714 37,300

Note: Six largest pubcos (Punch Taverns, Enterprise Inns, Admiral Taverns, Mitchells & Butlers, Scottish & Newcastle Pub Company and Spirit Group) accounted for around one third of supply

REGULATORY CHANGES
Smoking ban Alcohol tax escalator • Under Health Act 2006, it is • Introduced in 2008, alcohol illegal to smoke in enclosed areas duty will increase by 2% above inflation every single year •Beer duty was dropped, but wine and spirits are still tapped

COMPETITION FROM RETAIL
•Attributed to the ability of supermarkets to absorb taxation costs and sell alcohol at a lower retail price. 30 % 70 %

Retail
Pubs

•Since 1987, the BBPA has stated a 187% increase in the price of beer compared to just a 52% increase by retail. • Notable shift towards a culture of socialising and drinking/staying at home.

ANALYSIS
Pub industry more geared towards foodservice  Pubs have versatility to diversify its business model  Pub operators are forced to tap into previously unchartered sectors  Case studies: 

Wetherspoon has chosen to focus more on the morning breakfast crowd.

M&B has chosen to focus more on marketing its brand as value-formoney.

INCREASE IN FOOD-LED SALES AMONG PUB
OPERATORS

CASE STUDIES

WETHERSPOON
Background
•Engaged in the development and management of public houses in the UK. •A total of 860 pubs •Strong growth in coffee business in recent years

Strategies
• Investment in pub’s premises •Building a reputation for value-for-money •First pub to introduce coffee with breakfast and extend opening hours

•Adopts a centralised buying and distribution model

MITCHELLS & BUTLERS
Background
•Operates managed pubs, bars and restaurants across 1,600 outlets

•Diversified majority of its lodging properties, shifting focus to its core business of pubs

Strategies
•Offering value-for-money •Free Wi-Fi •Investment in niche potential foodservice market segments

Upmarket social £8 billion Special £22 billion Family £5 billion Everyday social £2 billion Heartland £4 billion

•Space is focused on refined but relaxed environment in suburban and urban locations • Potential customer groups include colleagues and friends who want to socialise and enjoy a drink • Caters specially to special occasion dining with high quality food from established and trusted brands •...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Markets: UK Potable Water Industry 2014, Global Industry Analysis, Size, Share, Growth, Trends and Forecast Research Paper
  • f and b Research Paper
  • f and b Essay
  • F&B Training Manual Essay
  • market size UK Essay
  • f n b notes Essay
  • F&B Observation Standards Essay
  • F&B Concepts Nh Research Paper

Become a StudyMode Member

Sign Up - It's Free