All rights reserved. No part of this publication may be reproduced or stored in a retrieval system, in any form or by any means, electrical, mechanical, photocopying or otherwise without the prior consent of the publishers. The views and forecasts presented in this report represent independent findings and conclusions drawn from a comprehensive study of the UK coffee shop market by Allegra Strategies. Main sources of information include published information, opinions and information shared by interviewees and consumers with Allegra Strategies during the period of study.

This report has been produced under significant time constraints to ensure that the information contained within it is as up-to-date as possible.

Great care has been taken to ensure that all information contained in this report is accurate, free from bias and fully describes the latest developments in the fast growing UK branded restaurant market, as of June 2013.

However, Allegra Strategies can accept no responsibility for any investment decision made on the basis of this information or for any omissions or inaccuracies that may be contained in this report.

This report has been produced in good faith and independently of any operator or supplier to the industry. We trust that it will be of significant value to all readers.

Allegra Strategies Limited No 1 Northumberland Avenue, Trafalgar Square, London WC2N 5BW Tel: +44(0)20 7691 8800 Fax: +44(0)20 7691 8810 Email: [email protected] Website: www.allegra.co.uk Registered in England No: 3645920

UK Branded Restaurant Market – Strategic Analysis, June 2013 © TABLE OF CONTENTS

TABLE OF CONTENTS INTRODUCTION AND BACKGROUND 1 I.1 Objectives and Scope 2 I.2 Key Terms and Definitions 3 Table I.2.1 – Key Terms Used Throughout Project Restaurant 2013 3 I.3 Primary Information Sources 4 Table I.2.2 – Primary Information Sources 4 SECTION 1 – EXECUTIVE SUMMARY 5 1.1 Overview 6 1.2 Market Overview 7 1.3 Competitive Landscape 8 1.4 Customer Insight 9 1.5 Market Outlook 10 SECTION 2 – MARKET 11 2.1 Market Overview 13 2.1.1 Key Events 14 Table 2.1.1 – Key Events in UK Branded Restaurant Chain History, 2007-2013 14 2.1.2 Section Summary 19 2.1.3 Total Eating Out Market Landscape 20 2.1.4 Total Eating Out Market Size by Outlet Numbers 21 Figure 2.1.1 – Total Number of UK Eating Out Outlets, by Type, 2008-2018F 21 2.1.5 Total Restaurant Market Size by Outlet Numbers 22 Figure 2.1.2 – Total Number of UK Branded Restaurant Outlets, by Channel, 2008-2018F 22 2.1.6 Branded Restaurant Market Size by Outlet Numbers 23 Figure 2.1.3 – Total Number of UK Branded Restaurant Outlets, by Channel, 2008-2018F 23 2.1.7 Branded Restaurant Market Size and Growth by Outlet Numbers 24 Figure 2.1.4 – Total Number of UK Branded Restaurant Outlets With Percentage Growth YOY, 2008-2018F 24

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2.1.8 Total Eating Out Market Size by Estimated Annual Turnover 25 Figure 2.1.5 – Estimated Total Annual Turnover of UK Eating Out Market 25 2.1.9 Total Restaurant Market Size by Turnover 26 Figure 2.1.6 – Total Turnover of UK Branded Restaurant Market, by Channel, 2008-2018F 26 2.1.10 Branded Restaurant Market Size by Turnover 27 Figure 2.1.7 – Total Turnover of UK Branded Restaurant Market, by Channel, 2008-2018F 27 2.1.11 Branded Restaurant Market Size and Growth by Total Annual Turnover 28 Figure 2.1.8 – Estimated Annual Turnover of UK Branded Restaurant with Percentage Growth YOY, 2008-2018F 28 2.1.12 Branded Restaurant Outlet vs. Turnover Growth 29 Figure 2.1.9 – Branded Restaurant Outlet Percentage Growth vs. Turnover Percentage Growth YOY, 2008-2018F 29 2.1.13 Market Share of Branded Chains by Channel 30 Table 2.1.3 Market Share of Branded Channel by Store Numbers – 2009-2013E 30 Table 2.1.4 Market Share of Channel by Turnover – 2009-2013E 30 2.1.14 Market Share of Branded Restaurants Compared with Independents 31 Table 2.1.5 Market Share by Store Numbers and Turnover – Brands Compared with Independents, 2013E 31 Figure 2.1.10 Branded Market Segment Share Growth by Store Numbers – 2013E 31 2.1.15 Market Share of Pubs by Outlets 32 Table 2.1.6 Market Share of Pub Channel by Store Numbers – 2009-2013E 32 2.1.16 Market Overview – Market Share of Pub Channel by Turnover 33 Table 2.1.7 Market Share of Pub Channel by Turnover – 2009-2013E 33 2.1.17 Market Overview – Market Share of Branded Pub & Restaurant Groups 34 Table 2.1.8 Top 15 Pub Groups, Market Share by UK Pub Numbers and Turnover, 2013E 34 2.1.18 Market Share of Casual Restaurants by Outlets and Turnover 35 Table 2.1.9 Market Share of Full Service Restaurant Channel by Store Numbers – 2009-2013E 35 Table 2.1.10 Market Share of Full Service Restaurant Channel by Turnover – 2009-2013E 35

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2.1.19 Market Share of Branded Restaurant Chains 36 Table 2.1.11 Top 20 Branded Casual Restaurants, Market Share by UK Store Numbers and Turnover, 2013E 36 2.1.20 Market Share of Fast Food by Outlets 37 Table 2.1.12 Market Share of Fast Food Channel by Store Numbers – 2009-2013E 37 2.1.21 Market Share of Fast Food by Turnover 38 Table 2.1.13 Market Share of Fast Food Channel by Turnover – 2009-2013E 38 2.1.22 Market Share Fast Food Chains 39 Table 2.1.14 Market Share of Branded Fast Food Chains by Store Numbers and Turnover, 2013E 39 2.1.23 Market Overview – Winners and Losers 40 Table 2.1.15 Restaurant Market Dynamics by Channel – 2013-2018 40 2.2 Impact of Economy 41 2.2.1 Current Trading Environment 42 Figure 2.2.1 – Current Trading Environment, 2009-2013 – Industry Views 42 2.2.2 Recent Trading Performance 43 Figure 2.2.2 – Impact of Economic Conditions on Market, Q1 2010-Q1 2013 – Industry Views 43 2.2.3 Future Revenue Expectations 44 Figure 2.2.3 – Future Revenue Expectations, 2011-2013 – Industry Views 44 2.2.4 Timing of Full Economic Recovery 45 Figure 2.2.4 – Expectations for Economic Recovery, 2009-2013 – Industry Views 45 2.2.5 Industry Perspectives on Trading - Positive 46 2.2.6 Industry Perspectives on Trading - Negative 47 2.3 Pricing Trends 49 2.3.1 Branded Restaurant Average Typical Menu Prices 50 Figure 2.3.1 – Average Course Prices of Branded Restaurants, Feb 2012-Feb 2013 50 Table 2.3.1 – % Growth of Overall Prices, Feb 2012-Feb 2013 50

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2.3.2 Branded Restaurant Average Entry and Exit Menu Prices 51 Figure 2.3.2 – Average Entry and Exit Prices by Course, Branded Restaurants, Feb 2012-Feb 2013 51 Table 2.3.2 – % Growth of Overall Prices, Feb 2012-Feb 2013 51 2.3.3 Branded Restaurant Average Menu Prices, Percentage Change 52 Figure 2.3.3 – Percentage Changes, Average Prices by Course, Feb 2012-Feb 2013 52 2.3.4 Average Starter Price by Segment 53 Figure 2.3.4 – Average Starter Prices of Branded Restaurants, by Segment, Feb 2011-Feb 2013 53 Table 2.3.3 – % Growth of Starter Prices, by Segment, Feb 2012-Feb 2013 53 2.3.5 Average Main Course Price by Segment 54 Figure 2.3.5 – Average Main Course Prices of Branded Restaurants, by Segment, Feb 2011-Feb 2013 54 Table 2.3.4 – % Growth of Main Course Prices, by Segment, Feb 2012-Feb 2013 54 2.3.6 Average Side Dish Price by Segment 55 Figure 2.3.6 – Average Side Dish Prices of Branded Restaurants, by Segment, Feb 2011-Feb 2013 55 Table 2.3.5 – % Growth of Side Dish Prices, by Segment, Feb 2012-Feb 2013 55 2.3.7 Average Dessert Price by Segment 56 Figure 2.3.7 – Average Dessert Prices of Branded Restaurants, by Segment, Feb 2011-Feb 2013 56 Table 2.3.6 – % Growth of Dessert Prices, by Segment, Feb 2012-Feb 2013 56 2.4 Consumer Trends – Industry Views 57 2.4.1 Most Important Consumer Trends 58 Table 2.4.1 – Most Important Consumer Trends Currently Affecting The Industry, 2013 – Industry Views 58 2.4.2 Consumer Spend 59 Figure 2.4.1 – Impact on Consumer Spend per Visit, 2011-2013 – Industry Views 59 2.4.3 Consumer Visit Frequency 60 Figure 2.4.2 – Consumer Visiting Frequency, 2011-2012 – Industry Views 60 2.4.4 Consumer Tipping Behaviour 61 Figure 2.4.3 – Consumer Tipping Behaviour, 2011-2013 – Industry Views 61

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2.4.5 Consumer Value Expectations 62 Figure 2.4.4 – Consumer Value Expectations, 2011-2013 – Industry Views 62 2.5 Key Success Factors and Business Challenges 63 2.5.1 Key Success Factors 64 Table 2.5.1 – Key Success Factors for Foodservice, 2011-2013 – Industry Views 64 2.5.2 Success Factors Industry Perspectives 65 2.5.3 Importance of Alcohol 66 Figure 2.5.1 – Importance of Varied Alcoholic Range on The Success of an Operator, 2013 66 Figure 2.5.2 – Alcoholic Drinks Stocked, 2013 66 2.5.4 Importance of Coffee 67 Figure 2.5.3 – Importance of Varied Coffee Menu to the Success of a Foodservice Operator, 2013 67 2.5.5 Other Beverages 68 Figure 2.5.4 – Hot/Cold Beverages Typically Stocked/Offered, 2013 68 2.5.6 Main Industry Challenges 69 Table 2.5.2 – Main Industry Challenges Facing the Foodservice Industry, 2012-2013 – Industry Views 69 2.5.7 Hospitality VAT Rate 70 Figure 2.5.5 – Impact of Increased Vat Rate on UK F&B Sector, 2011-2013 – Industry Views 70 2.5.8 Staff Issues 71 Figure 2.5.6 – Staff Shortages, 2013 – Industry Views 71 2.5.9 Staff Investment 72 Figure 2.5.7 – Staff Shortages, 2013 – Industry Views 72 2.6 Property 73 2.6.1 Current Availability of Sites in the UK 74 Figure 2.6.1 – Current Site Availability in the UK, 2012-2013 74 2.6.2 Expectations for Restaurant Rents 75 Figure 2.6.2 – Rental Outlook, London vs. Regions, 2013 75 UK Branded Restaurant Market – Strategic Analysis, June 2013 © Page v TABLE OF CONTENTS

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2.6.3 Physical Expansion 76 Figure 2.6.3 – Physical Expansion Challenges, 2012-2013 76 2.6.4 Acquisition Activity 77 Table 2.6.1 – Restaurant Brand Acquisition Activity 2011-2013 77 2.7 Suppliers 79 2.7.1 Supplier Success Factors Operator Views 80 Table 2.7.1 – Key Supplier Success Factors, 2012-2013 – Operator Views 80 2.7.2 Importance of Strong Supplier Relationships 81 Figure 2.7.1 – Importance of Strong Supplier Relationships for NPD, 2012-2013 – Operator Views 81 Figure 2.7.2 – Impact Of Economy on NPD, 2013 – Operator Views 81 2.7.3 Importance of Strong Supplier Relationships 82 Figure 2.7.3 – Importance of Supplier Understanding of Consumers, 2012-2013 – Operator Views 82 Figure 2.7.4 – Benefit of Strong Supplier Relationships, 2012-2013 – Operator Views 82 2.7.4 Key Challenges for Suppliers Operator Views 83 2.7.5 Supplier Success Factors Operator Views 84 Table 2.7.2 – Preferred Supplier Marketing Channels 2013 – Operator Views 84 2.8 Mega Trends 85 2.8.1 Healthier Eating 86 Figure 2.8.1 – Healthier Eating, 2009-2013 – Industry Views 86 2.8.2 The Responsibility Deal 87 Figure 2.8.2 – The Responsibility Deal, 2013 – Industry Views 87 2.8.3 Importance of Local Sourcing 88 Figure 2.8.3 – Importance of Local Sourcing, 2008-2013 – Industry Views 88 2.8.4 Future of Sustainability in Foodservice 89 Figure 2.8.4 – Future of Sustainability in Foodservice, 2013 – Industry Views 89

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2.8.5 Operators Engaging in Discounting 90 Figure 2.8.5 – Operators Engaging in Promotions, 2012-2013 – Industry Views 90 2.8.6 Impact of Discounting on Sales and Profit 91 Figure 2.8.6 – Impact of Discounting on Sales, 2012-2013 – Industry Views 91 Figure 2.8.7 – Impact of Promotional/Discounting Activity on Profits – Industry Views 91 2.8.7 Operators Engaging in Discounting 92 Figure 2.8.8 – Percentage of Brands Offering Promotions by Selected Segments, 2013 92 Figure 2.8.9 – Percentage Promotion Types Offered, 2013 92 2.8.8 Discounting Mechanics 93 Figure 2.8.10 – Most Popular Type of Promotions Within Segments, 2013 93 2.8.9 Discounting by Weekday and Day-Part 94 Figure 2.8.11 – Percentage of Brands with Promotions by Time of Week, 2013 94 Figure 2.8.12 – Distribution of Promotions by Day Part within Segments, 2013 94 2.8.10 Habitual Discounting 95 Figure 2.8.13 – Consumers Habitual Discounting, 2012-2013 – Industry Views 95 Figure 2.8.14 – Discounting Becoming the Norm, 2012-2013 – Industry Views 95 2.8.11 Implications of Discounting on Business 96 Figure 2.8.15 – Weakened Loyalty, 2012-2013 – Industry Views 96 Figure 2.8.16 – Impact on Footfall, 2012-2013 – Industry Views 96 2.8.12 Adapting Discounting in the Current Market 97 Figure 2.8.17 – Focused and Targeted Promotions, 2013 – Industry Views 97 Figure 2.8.18 – Introduce Loyalty Schemes, 2012-2013 – Industry Views 97 2.8.13 Role of Technology in Discounting 98 Figure 2.8.19 – Greater Role of Technology in Personalised Offers, 2013 – Industry Views 98

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2.8.14 The Future of Discounting 99 Figure 2.8.20 – Future Discounting in 3-5 Years Time, 2012-2013 Industry Views 99 Figure 2.8.21 – Future of Loyalty Schemes in 3-5 Years Time, 2012-2013 Industry Views 99 2.8.15 Social Media Engagement 100 Figure 2.8.22 – Social Media Engagement, 2013 100 Figure 2.8.23 – Social Media Channels Used, 2013 100 2.8.16 Impact of Social Media on Sales 101 Figure 2.8.24 – Sales Increase Based on Social Media Engagement, 2013 101 2.9 Market Outlook 103 2.9.1 Key Market Growth Drivers 104 Table 2.9.1 Key Market Growth Drivers 104 2.9.2 Key Market Growth Inhibitors 105 Table 2.9.2 Key Market Growth Inhibitors 105 2.9.3 Importance of Branded Chains 106 Figure 2.9.1 – Importance of Branded Chains, 2010-2013 – Industry Views 106 2.9.4 Growth Inhibitors, Industry Perspectives 107 2.9.5 Fastest Growing Trading Formats 108 Figure 2.9.2 – Fastest Growing Restaurant Business Concepts in the Next 3-5 Years, 2011-2012-2013 – Industry Views 108 2.9.6 Fastest Growing Cuisine Trends 109 Figure 2.9.3 – Fastest Growing Cuisine Types in the Next 3-5 Years, 2011-2012-2013 – Industry Views 109 2.9.7 Fastest Growing Menu Trends 110 Table 2.9.3 – Fastest Growing Menu Trends in the Next 3-5 Years, 2012-2013 – Industry Views 110 2.9.8 Future Eating Out Frequency 111 Figure 2.9.4 – Eating Out Frequency in 5 Years Time, 2011-2013 – Industry Views 111 2.9.9 Future Technology 112 Figure 2.9.5 – Future Technology, 2011-2013 – Industry Views 112 UK Branded Restaurant Market – Strategic Analysis, June 2013 © Page viii TABLE OF CONTENTS

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2.9.10 Long Term Opportunities and Challenges 113 2.9.11 Future Industry Trends 114 2.9.12 Brands to Watch 115 2.9.13 Best in Class Operators 116 SECTION 3 – COMPETITIVE LANDSCAPE 117 3.1 Operator Profiles 119 3.1.1 All Bar One 120 3.1.2 ASK Italian 122 3.1.3 Beefeater 124 3.1.4 Bella Italia 126 3.1.5 Brewers Fayre 128 3.1.6 Browns 130 3.1.7 Burger King 132 3.1.8 Byron 134 3.1.9 Café Rouge 136 3.1.10 Carluccios’s 138 3.1.11 Chef & Brewer 140 3.1.12 Chimichanga 142 3.1.13 Chiquito 144 3.1.14 Côte 146 3.1.15 Crown Carveries 148 3.1.16 Domino’s 150 3.1.17 Frankie & Benny’s 152 3.1.18 Garfunkel’s 154 3.1.19 Giraffe 156 3.1.20 Gourmet Burger Kitchen 158 UK Branded Restaurant Market – Strategic Analysis, June 2013 © Page ix TABLE OF CONTENTS

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3.1.21 Harvester 160 3.1.22 Hungry Horse 162 3.1.23 Jamie’s Italian 164 3.1.24 KFC 166 3.1.25 La Tasca 168 3.1.26 Las Iguanas 170 3.1.27 Little Chef 172 3.1.28 Loch Fyne 174 3.1.29 Loungers 176 3.1.30 McDonald’s 178 3.1.31 Miller & Carter 180 3.1.32 Nando’s 182 3.1.33 Piccolino 184 3.1.34 Pitcher & Piano 186 3.1.35 Pizza Hut 188 3.1.36 Pizza Express 190 3.1.37 Prezzo 192 3.1.38 Sizzling Pubs 194 3.1.39 Slug and Lettuce, The 196 3.1.40 Strada 198 3.2.41 Subway 200 3.2.42 T.G.I. Friday’s 202 3.2.43 Table Table 204 3.2.44 Toby Carvery 206 3.2.45 Wagamama 208 3.2.46 Wasabi 210

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3.2.47 Wetherspoon 212 3.2.48 Wimpy 214 3.2.49 YO! Sushi 216 3.2.50 Zizzi 218 SECTION 4 – CONSUMER INSIGHT 221 4.1 Section Summary 223 4.1.1 Primary Information Source 224 4.1.2 Section Summary 225 4.2 Visit Frequency 227 4.2.1 Frequency of Visits by Channel 228 Figure 4.2.1 – Frequency of Visits – Analysis by Channel, Mar 2012 228 4.2.2 Breakfast Frequency 229 Figure 4.2.2 – Frequency of Visits, 2012-2013 229 4.2.3 Lunch Frequency 230 Figure 4.2.3 – Frequency of Visits, 2012-2013 230 4.2.4 Dinner Frequency 231 Figure 4.2.4 – Frequency of Visits, 2012-2013 231 4.2.5 Frequency by Gender 232 Figure 4.2.5 – Frequency of Breakfast Visits – Analysis by Gender, 2013 232 Figure 4.2.6 – Frequency of Lunch Visits – Analysis by Gender, 2013 232 4.2.6 Frequency by Gender 233 Figure 4.2.7 – Frequency of Dinner Visits – Analysis by Gender, 2013 233 4.2.7 Impact of the Economic Climate on Frequency of Visits 234 Figure 4.2.8 – Changing Frequency in Light of Economic Climate, 2012-2013 234 4.2.8 Changing Frequency – Eating at Home vs. Eating Out of Home 235 Figure 4.2.9 – Changing Frequency of Visits, 2012-2013 235

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4.2.9 Changing Frequency 236 Figure 4.2.10 – Changing Frequency of Visits, by Channel, 2013 236 4.2.10 Changing Frequency – Customer Insight 237 4.2.11 Changing Frequency in Next 12 Months 239 Figure 4.2.11 – Changing Frequency in Future, 2012-2013 239 4.2.12 Future Changing Frequency – Customer Insight 240 4.2.13 Non-Regular Eating Out Frequency 241 Figure 4.2.12 – Non-regular Eating Out Frequency, 2013 241 4.2.14 Reasons for Not Eating Out 242 Figure 4.2.13 – Reasons for Eating Out Rarely/Never, 2013 242 4.2.15 Perception of Eating Out Frequency 243 Table 4.2.14 – Perception of Number of Eating Out Establishments Visited in 3 Months, 2013 243 4.3 Consumer Behaviour 245 4.3.1 Breakfast Establishments 246 Table 4.3.1 – Top 20 Latest Visited Breakfast Establishments, 2013 246 4.3.2 Lunch Establishments 247 Table 4.3.2 – Top 20 Latest Visited Lunch Establishments, 2013 247 4.3.3 Dinner Establishments 248 Table 4.3.3 – Top 20 Latest Visited Dinner Establishments, 2013 248 4.3.4 Weekly Visit Patterns 249 Table 4.3.4 – Day of the Week Consumers Last Ate Out, Lunch vs. Dinner, 2013 249 4.3.5 Weekly Visit Segmentation 250 Table 4.3.5 – Consumer Weekday Typologies, 2013 250 4.3.6 Time of Consumption 252 Figure 4.3.1 – Time Breakfast Consumed, 2013 252 Figure 4.3.2 – Time Lunch Consumed, 2013 252

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Figure 4.3.3 – Time Dinner Consumed, 2013 252 4.3.7 Distance Travelled to Establishment 253 Figure 4.3.4 – Distance Travelled to Get to Establishment for Breakfast/Lunch/Dinner, 2013 253 4.3.8 Purpose for Visits at Breakfast 254 Figure 4.3.5 – Purpose for Visits at Breakfast, 2012-2013 254 4.3.9 Purpose for Visits at Lunch 255 Figure 4.3.6 – Purpose for Visits at Lunch, 2012-2013 255 4.3.10 Purpose for Visits at Dinner 256 Figure 4.3.7 – Purpose for Visits at Dinner, 2012-2013 256 4.3.11 Purpose for Visits Demographic Analysis 257 Figure 4.3.8 – Purpose for Visits at Breakfast – Analysis by Gender, 2013 257 Figure 4.3.9 – Purpose for Visits at Lunch – Analysis by Gender, 2013 258 Figure 4.3.10 – Purpose for Visits at Dinner – Analysis by Gender, 2013 259 4.3.12 Habitual vs. Social Eating Out 260 Figure 4.3.11 – Habitual vs. Social Eating Out, Breakfast, 2013 260 Figure 4.3.12 – Habitual Vs. Social Eating Out, Lunch, 2013 260 Figure 4.3.13 – Habitual Vs. Social Eating Out, Dinner, 2013 260 4.3.13 Reason for Choice of Establishment 261 Table 4.3.6 – Reason for Choice of Establishment for Breakfast, 2013 261 Table 4.3.7 – Reason for Choice of Establishment for Lunch, 2013 262 Table 4.3.8 – Reason for Choice of Establishment for Dinner, 2013 263 4.3.14 Food and Beverage Incidence at Breakfast 264 Table 4.3.9 – Top 5 Food Items, Sandwich Fillings and Croissants at Breakfast, Q1 2013 264 4.3.15 Types of Food Consumed Lunch vs. Dinner 265 Table 4.3.10 – Top Types of Food and Beverages Purchased, Lunch, Q1 2013 265 Table 4.3.11 – Top Types of Food and Beverages Purchased, Dinner, Q1 2013 266 UK Branded Restaurant Market – Strategic Analysis, June 2013 © Page xiii TABLE OF CONTENTS

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4.3.16 Main Factors to Choose Food 267 Figure 4.3.14 – Top 10 Factors Contributing to the Food Choice on This Occasion, Breakfast/Lunch/Dinner, 2013 267 4.3.17 Main Factors to Choose Food – By Channel 268 Table 4.3.12 – Frequency of Visits at Breakfast – Analysis by Channel, 2013 268 Table 4.3.13 – Frequency of Visits at Lunch – Analysis by Channel, 2013 269 Table 4.3.14 – Frequency of Visits at Dinner – Analysis by Channel, 2013 270 4.3.18 Favourite Cuisine 271 Table 4.3.15 – Favourite Cuisine, 2013 271 4.3.19 Adventurist Behaviour and Interest in Food 272 Figure 4.3.15 – Adventurist Behaviour, 2012-2013 272 Figure 4.3.16 – Interest in Food, 2012-2013 272 Table 4.3.16 – New Cuisines Tried in the Last 3 Months, 2013 273 Figure 4.3.17 – Reasons to Try New Cuisines, 2013 274 Table 4.3.17 – Top 15 Cuisines that Would Like to See More of, 2013 275 Table 4.3.18 – Dishes that Would Like to See More of, 2013 276 Figure 4.3.18 – Reaction to the Horsemeat Scandal, 2013 277 4.4 Brand Preferences 279 4.4.1 Brand Loyalty 280 Figure 4.4.1 – Brand Loyalty, 2012-2013 280 4.4.2 Factors Encouraging Brand Loyalty 281 Figure 4.4.2 – Most Important Aspects of a Brand Name that Would Encourage Loyalty, 2013 281 4.4.3 Breakfast Rankings 282 Table 4.4.1 – Brand Rankings by Key Success Factors – Neutral Sample*, 2013 282 4.4.4 Lunch Rankings 283 Table 4.4.2 – Brand Rankings By Key Success Factors – Neutral Sample*, 2013 283 4.4.5 Dinner Rankings 284 UK Branded Restaurant Market – Strategic Analysis, June 2013 © Page xiv TABLE OF CONTENTS

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Table 4.4.3 – Brand Rankings by Key Success Factors – Neutral Sample, 2013 284 4.4.6 Breakfast Revisit and NPS 285 Table 4.4.4 – Brand Rankings by Revisit and NPS – Neutral Sample, Breakfast, Feb 2013 – Apr 2013 285 4.4.7 Lunch Revisit and NPS 286 Table 4.4.5 – Brand Rankings by Revisit and NPS – Neutral Sample, Lunch, Feb 2013 – Apr 2013 286 4.4.8 Dinner Revisit and NPS 287 Table 4.4.6 – Brand Rankings by Revisit and NPS – Neutral Sample, Dinner, Feb 2013 – Apr 2013 287 4.4.9 Favourite Branded Restaurant 288 Table 4.4.7 – Favourite Restaurants, 2013 288 4.4.10 Brands vs. Independents 289 Figure 4.4.3 – BRAND vs. Independents, 2012-2013 289 4.4.11 Popular Restaurants 290 Figure 4.4.4 – Top 15 Restaurants Visited In Last 3 Months, 2013 290 4.4.12 Newly Visited Restaurants 291 Figure 4.4.5 – Top 15 New Restaurants Visited in Last 3 Months, 2013 291 4.4.13 Restaurants Consumers Would Consider Visiting 292 Table 4.4.8 – Top 20 Restaurants Consumers Would Consider Visiting, 2013 292 4.4.14 Restaurants Not Visited in the Last Three Months and Reasons Why 293 Table 4.4.9 – Top 15 Restaurants Not Visited in Last 3 Months and Main Reasons Why, 2013 293 4.4.15 Establishment That Would Not Visit Again 294 Table 4.4.10 – Establishment Visited in the Past that Would Never Visit Again, 2013 294 4.4.16 Reasons to Stop Visiting 295 Figure 4.4.6 – Reasons to Stop Visiting This Brand, 2013 295 4.5 Spend and Value 297 4.5.1 Average Spend 298 Figure 4.5.1 – Average Spend, Breakfast/Lunch/Dinner, Jan 13 – Apr 13 298 UK Branded Restaurant Market – Strategic Analysis, June 2013 © Page xv TABLE OF CONTENTS

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Figure 4.5.2 – Average Spend by Channel, Breakfast/Lunch/Dinner, Apr 2013 298 4.5.2 Average Spend by Primary Reason for Visit 299 Figure 4.5.3 – Average Spend at Breakfast – Analysis by Main Purpose of Visit, 2013 299 Figure 4.5.4 – Average Spend at Lunch – Analysis by Main Purpose of Visit, 2012-2013 300 Figure 4.5.5 – Average Spend at Dinner – Analysis by Main Purpose of Visit, 2013 301 4.5.3 Changing Spend Behaviour 302 Figure 4.5.6 – Changing Spend Behaviour, 2013 302 Figure 4.5.7 – Changing Spend Behaviour, 2013 302 4.5.4 Consumer Confidence 303 Figure 4.5.8 – Current Spending Habits, 2012-2013 303 Figure 4.5.9 – Confidence in Future Income Levels, 2012-2013 303 4.5.5 Impact of the Economic Climate 304 Figure 4.5.10 – Readiness to Cut Back on Eating Out, 2012-2013 304 4.5.6 Maintaining Eating Out Spend 305 Figure 4.5.11 – Eating Out Budget Planning, 2012-2013 305 4.5.7 Trading Down Behaviour 306 Figure 4.5.12 – Changing Spend Behaviour, 2012-2013 306 Figure 4.5.13 – Changing Spend Behaviour, 2012-2013 306 Figure 4.5.14 – Changing Spend Behaviour, 2012-2013 306 Figure 4.5.15 – Changing Spend Behaviour, 2012-2013 307 Figure 4.5.16 – Buying Take Away Instead of Eating Out, 2012-2013 307 4.5.8 Pricing 308 Figure 4.5.17 – Pricing Perception for Branded Establishments, 2013 308 4.5.9 Good Value for Money 309 Figure 4.5.18 – Value vs. Convenient Location, 2013 309 4.5.10 Factors Contributing to Good Value for Money 310

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Figure 4.5.19 – Most Important Factors Contributing to Good Value for Money, 2013 310 4.6 Consumer Mega Trends 311 4..6.1: Healthier Eating 313 4.6.1.1 Overall Healthy Eating Habits 314 Figure 4.6.1.1 – Overall Healthy Eating Behaviour, 2013 314 4.6.1.2 Consumer Lifestyle Approaches to Healthier Eating 315 Figure 4.6.1.2 – Healthier Eating Out Of Home, 2012-2013 315 4.6.1.3 Availability of Information on Healthier Options 316 Figure 4.6.1.3 – Nutritional Information In Eating Out Establishments, 2013 316 4.6.1.4 Main Indicators for a Healthy Food Option 317 Figure 4.6.1.4 – Top 15 Indicators For Healthy Options, 2013 317 4.6.1.5 Healthier Eating Availability 318 Figure 4.6.1.5 – Availability of Healthier Options, 2012-2013 318 Figure 4.6.1.6 – Choice Based on Healthy Food Options, 2013 318 4.6.1.6 Importance of Calorie Counts on Menus 319 Figure 4.6.1.7 – Influence of Calorie Labelling on Choice, 2012-2013 319 Figure 4.6.1.8 – Influence of Calorie Labelling on Visits, 2012-2013 319 4.6.1.7 Factors Preventing People from Eating More Healthily 320 Figure 4.6.1.9 – Top 10 Factors Preventing People from Eating More Healthily When Out of Home, 2013 320 4.6.1.8 Willingness to Pay More for Healthier Options 321 Figure 4.6.1.10 – Willingness to Pay More for Healthier Options, 2013 321 4.6.2 Discounting 323 4.6.2.1 Frequency of Using Discount Vouchers 324 Figure 4.6.2.1 –Frequency of Using Discount Vouchers, 2012-2013 324 4.6.2.2 Discounting by Channel 325 Figure 4.6.2.2 – Discounting, 2013 325

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4.6.2.3 Sources Of Discount Vouchers 326 Figure 4.6.2.3 – Sources Of Obtaining Discount Vouchers, 2013 326 4.6.2.4 Discount Driven Choice 327 Figure 4.6.2.4 – Choosing a Restaurant Based on Voucher Availability, 2012-2013 327 4.6.2.5 Service Erosion due to Discounts 328 Figure 4.6.2.5 – Service Levels Decrease When Using a Voucher, 2012-2013 328 4.6.2.6 Value Erosion by Discounting 329 Figure 4.6.2.6 – Value Erosion, Current Meal Value, 2012-2013 329 Figure 4.6.2.7 – Value Erosion, Future Meal Value, 2012-2013 329 4.6.2.7 Consumer Discounting Typologies 330 Table 4.6.2.1 – Consumer Discounting Typologies, 2013 330 4.6.2.8 Reasons for Not Using Discount Vouchers 331 Figure 4.6.2.8 – Reasons for not Using Discount Vouchers, 2012-2013 331 4.6.3 Social Media 333 4.6.3.1 Social Media 334 Figure 4.6.3.1 – Social Media Channels Followed at Least Once a Month, 2013 334 4.6.3.2 Social Media Influence 335 Figure 4.6.3.2 – Social Media Engagement, 2013 335 Figure 4.6.3.3 – Social Media Influence, 2013 335 4.6.3.3 Social Media Typology 336 Table 4.6.3.1 – Social Media Typologies, 2013 336 4.7 Consumer Typologies 337 4.7.1 Regional Highlights 338 4.7.2 Branded Casual Restaurant Consumer Typology 339 Table 4.7.1 – Branded Casual Restaurant Consumer Typologies, 2013 339

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4.7.3 Independent Restaurant Consumer Typology 340 Table 4.7.2 – Independent Restaurant Consumer Typologies, 2013 340 4.7.4 Pub Restaurant Consumer Typology 341 Table 4.7.3 – Pub Restaurant Consumer Typologies, 2013 341 4.7.5 Traditional Fast Food Consumer Typology 342 Table 4.7.4 – Traditional Fast Food Consumer Typologies, 2013 342 4.7.6 New Fast Food Consumer Typology 343 Table 4.7.5 – New/Emerging Branded Fast Food Consumer Typologies, 2013 343 4.8 Research Summary Table 345 4.8.1 Research Summary Table 346 Table 4.8.1 – Research Summary Table 346

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