Allegra’s 2013 ‘Eating Out in the UK’ report identifies all day eating, the importance of adding value beyond price, and the rise of the era of the individual as key future trends that will impact the foodservice industry.
Operators that embrace these key trends will be well positioned for success in the evolving UK eating out market that is estimated to deliver continued growth in 2013 and beyond, with the total UK Foodservice and Hospitality market reaching £90bn in value by 2018.
But just what is meant by adding value beyond price, and the rise of the era of the individual? H & C News is grateful to Anya Marco, Director of Insight at Allegra Strategies, for helping to clarify these trends.
Adding value beyond price
Adding value beyond price is basically about recognising that consumers now have a multitude of drivers influencing their choice of eating out establishment, and this means choosing where to eat out at establishments that match their own personal values.
Effectively, this is taking ‘sustainability’ down to a personal level. It is becoming far more important to add value beyond the simple trinity of price, quality and experience.
Big brands that are already showing a degree of recognising this are McDonald’s, Pret A Manger and M&S in terms of adding ethical values. Transparency and integration is the key here, matching brand values to consumer values.
Examples of smaller chains would be Leon or Pod. Both have healthier eating and ethical values at the heart of the business, and this shines through without being preachy.
It’s no longer enough to seek to establish credibility by quoting eco-labels (Fairtrade, Soil Association, Rainforest Alliance, and others): these are now an expectation rather than adding value beyond price. This is partly because so few consumers have any real personal connection with them, and many do not really understand what they represent other than doing good somewhere!
As this is a long term trend, this is more about those brands and establishments that live and breathe these values rather than just stick a label on. The Sustainable Restaurant Association (SRA) is a good example of an association that is contributing to this with its star rating system, though it and its members probably have some way to go in raising customer understanding.
The rise of the era of the individual
In terms of the era of the individual, this is again a consumer led trend where fewer people who go out to eat display the “I’ll have what he/she’s having” attitude. Instead, as the British consumer becomes more informed about food and therefore more passionate, they are more likely to demand exactly what they want.
The current trend of customising is meeting this to some degree but, in the long term, us Brits will be far more comfortable with the Five Guys ordering system i.e. simple burger turned into your own creation.
Those brands that tackle this will be able to offer consumers a menu that has specific options which can then be adjusted to meet individual tastes and needs.
Currently there are few examples of establishments offering this “individual” approach, with Vapiano a rare exception where customers can select according to their taste the type of pasta and components, also pizza.
But the UK consumer is starting to become aware that they can demand what they want and how they like it…
For more information on The Eating Out in the UK Report 2013, please contact:
Simon Stenning, Foodservice Strategy Director, Allegra Strategies
+44 (0) 20 7691 8800