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A Healthy Future for Foodservice?

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A Healthy Future for Foodservice? 22/02/2016 A healthy future for Foodservice? How Foodservice is responding to the Health debate Emma Read Director of Marketing and Business Development 25 February 2016 Overview • Foodservice - what is it? • Health - what do we mean? • Supply, Demand, or both? • Consumer demand • Operator supply • What next • Key points 1 22/02/2016 We know Foodservice - specialists www.hrzns.com Foodservice - what is it? 2 22/02/2016 We define The Foodservice Universe A large market • Food, drink sales to consumers £46.6 Bn • Excludes drink in Pubs, Hotels, Student Unions etc not served with food • Food sales to consumers £34.5 Bn • Food sales to operators £10.7 Bn • Food shipments £7.5 Bn • It serves 7.9 Bn meals/year Source: Horizons – Market Structure and Trends 2014 3 22/02/2016 One consumer - different sectors satisfy different needs Sector Customer need • Quick Service Restaurants • Destination outlet - • Pubs customers are primarily • Restaurants going there to eat • Hotels • Food not main reason for • Leisure visit -secondary need is to eat whilst there • Staff Catering • Food not main reason for • Health Care visit - limited other • Education choice of food so • Services restricted to outlet Source: Horizons Market Structure and Trends 2014 Health - what do we mean? 4 22/02/2016 Health has comes of age - now we talk about “wellbeing” Horizons highlight it as a Top 10 Foodservice Trend • Growth of Fast Casual • Evolution of pubs and café culture • Location, Location, Location • Adaptation of technology • Health and Lifestyle • Cuisine and flavour trends • • Blurring of day parts Ongoing evolution of what works • • Personalisation Acquisition and mergers Note: These trends are within the wider context of macro factors affecting the Foodservice market, which are not considered here 5 22/02/2016 Supply and Demand for health - or both? Demand - from consumers Supply - from operators Demand: what consumers are saying 6 22/02/2016 All of us, and in different environments With different needs It’s my I’m at work – it’s grandmother’s lunchtime birthday I want to take I want to chill my girlfriend out I’m a vegetarian … and I love the planet… … I don’t I’m hungry!!! I’m … and give a toss on a I’m not diet 7 22/02/2016 And other demands as well as health Faster payment Dietary methods Food on the go requirements Allergen Personalised food information 24/7: I want it when I want it, where I want it! Ethical sourcing Latest trends And the quandry of “being good” vs “it’s a treat” 8 22/02/2016 47% of consumers mention at least one health / lifestyle factor affecting choice of where to what to eat – slightly less so at Christmas! One in ten are looking for vegetarian options Consumers more interested in healthy options in the summer than in the festive season (approx. 1/3 vs 1/4) Women generally more interested in these issues than men 14% 12% 12% 10% 10% 9% 8% 8% 7% 7% 6% 5% 5% 4%4% 4% June 2015 4% 3%3% 3% 3% 3% 3% December 2015 2% 2% 2% 2% 0% Source: Eating Out-Look Consumer Survey January 2016. Base: GB Adults who ever eat out (2,013) Supply: how operators are responding - On menus - Operator initiatives - Operator openings 9 22/02/2016 Supply - on menus Allergens and GF continue, Superfood as a term is emerging 80 ‘Healthy/lifestyle’ factors Dietary requirements 70 Winter 2013 60 Summer 2014 50 Winter 2014 40 Summer 2015 30 Winter 2015 20 10 Number of Foodservice Brands 0 • ‘Superfood’ is a more common term up 45% year on year • ‘Allergy’ or ‘Allergen’ has steadily increased up 20% year on year • ‘Gluten free’ up 71% over the last 2 years, but stable vs last season Source: Menurama Winter 2015 10 22/02/2016 Terms - “Superfood” increasing, “Healthy” declining 30% Superfood Healthy 20% 10% 0% Summer Winter Summer Winter Summer Winter Summer Winter Summer Winter 2011 2012 2013 2014 2015 • 14% of brands in Menurama have dishes containing the term “superfood • “Superfood” dishes have increased by 61% since last year • Brands using the term “healthy” fallen from 17% to 12% since 2011 Source: Horizons Menurama Winter 2015 “On trend” ingredients in “superfood” dishes Samphire Chia Seeds +24% +300% Avocado Quinoa +11% +154% Source: Horizons Menurama Winter 2015 Figures show growth in numbers of dishes inlcuding the superfood from winter 204 to winter 2015 11 22/02/2016 Brands with gluten free menu options on the increase 60% 50% 40% 30% 20% 10% Summer Winter Summer Winter Summer Winter Summer Winter Summer Winter 2011 2012 2013 2014 2015 • 50% of brands in Menurama now have gluten free options • Up from 36% a year ago Source: Horizons Menurama Winter 2015 Free From choices abound! Lactose/dairy free’ is increasingly Brands offering Gluten Free Dishes an option on menus • • Abokodo • Jamie’s Italian LEON • Little Chef • • Carluccio's • Handmade TGI Fridays • Thistle • Chef & Brewer Burger Co • Pizza Express • EAT • Chiquito • La Tasca • Zizzi • Ed’s Diner • Marstons • Horse • Hungry Horse JD Wetherspoon Website TGI Website Source: Menurama Summer 2015 12 22/02/2016 And Healthy is flagged on menus • Pizza Express • Ask • Zizzi • Prezzo • Bella Italia • Harvester • Giraffe • Jamie’s • Itsu • EAT • Gusto • Abokado • Yo Sushi The option of a Healthier alternative has proven particularly popular on Casual Source: Menurama Winter 2015 Italian Menu’s As is ‘vegetarian/vegan’ • Separate Vegetarian section is becoming less popular • More commonplace is to have a vegetarian option within the main menu • 81% of brands surveyed had a Vegetarian main course choice Goose • 14% of all main course listings are Vegetarian Source: Menurama Winter 2015 13 22/02/2016 Supply - operator initiatives: some examples Gluten Free & Dairy Free highest impact on dishes likely to serve Dietary trends or issues likely to have an impact on the dishes served over next few months or so % 0 20 40 60 80 100 56 Gluten Free 39 43 Dairy Free/Lactose Intolerance 23 40 Vegetarian options 32 26 Vegan options 20 22 Free from..in general 20 Autumn 2014 20 Autumn 2015 Calorie Info 19 14 Salt Levels 15 69% claim issues listed are likely to 13 Low/reduced fat 18 affect the dishes they serve in next 13 few months Low/reduced sugar 16 9 low/reduced carbohydrate 13 20 None 31 Source: Eating Out-Look Operator Survey Base: All Respondents: Spring 2014: (296), Autumn 2014 (292), Spring 2015 (281), Autumn 2015 (307) 14 22/02/2016 Responding to consumer and government pressures Pressure on industry to ‘do the right thing’…. Others catching up quickly through partnerships… Operators catering for a variety of dietary requirements …or lifestyle choices! 15 22/02/2016 Vegetarian – take a leaf out of Pret’s book? • UK’s healthiest and fastest fast- casual restaurant … • Falafel and Halloumi wrap now the fastest selling hot wrap • Best-selling vegetarian SuperBowl of beetroot, butternut squash and feta Other examples • Pho gains accreditation 26 Jan • Patisserie Valerie launches Gluten Free - 5 in range • Starbucks launches National Green Juice Day 16 22/02/2016 On the move! Healthy pulls up at Motorway Service Stations Tossed now available in 6 Motorway Service Stations “Even we were gob-smacked by the PR,” he said. “Customers are walking the talk (on healthy food).” McKie McKie also revealed that the fastest growing line at the Waitrose stores located with Welcome Break is sushi . “It’s growing by 35% year-on-year,” he said. Supply - Operator openings 17 22/02/2016 Healthy Quick Service Restaurants are the 5th fastest growing outlet type UK Rank Type Of Offer Outlets Growth Brands Sector 2015 Antigiano, Beany Green, Benugo Cafe Deli, Bobs and Berts, Cafe Grounded, Ca'puccino,, Fait Maison, FCB Artisan Espresso Bars, Fernandez & Wells, Filmore & Union, Ground 1 Coffee shop 122 154% Q Espresso Bars, Notes, Red Kiosk Company, Rhode Island Coffee, Small Batch Coffee Barburrito, Benito's Hat Mexican Kitchen, Chilango, Mexican Chipotle Mexican Grill, El Mexicana, Freebirds World burrito fast 2 113 146% Burrito, Mi Casa, Mission Burrito, Pinto, Poncho No 8, Taco Q casual Bell, Tortilla Mexican Grill Caffe ́ Concerto, Gusto, La Porchetta, Polpo, San Carlo, Italian casual 3 102 82% Tony Macaroni, Valentina, Villagio, Wildwood Kitchen, Zaza R dining Birley Sandwiches, Camden Food Co., Delice de France, Sandwich bar 4 70 59% Piece, Pita Pit, Simply Eat, Wrap It Up Q quick service Chop'd, Friska, Planet Organic [Food To Go], Pure, Tossed, Healthy quick 5 68 100% Vital Ingredient Q service Source: Horizons Ones To Watch – Nov 2015 Ones to Watch - Healthy Quick Service Restaurants Source: Ones to Watch Nov 2015 18 22/02/2016 Operator highlights • Operators are reacting to changing consumer lifestyles by supplying healthy food options and more information on menus • Allergen information has seen a significant change of importance on menus since the legislation change a year ago • 67% of operators say health issues have already / are likely to affect dishes served – gluten free is most commonly cited issue • Existing operators are leading the way with new initiatives and taking advantage of this growing/relevant sector • New operators are appearing on the high street, offering new and exciting variations of ‘healthy food’ What next? 19 22/02/2016 Horizons highlight as a Top 10 Foodservice Trend 2015 • Growth of Fast Casual • Evolution of pubs and café culture • Location, Location, Location • Adaptation of technology • Health and Lifestyle • Cuisine and flavour trends • • Blurring of day parts Ongoing evolution of what works • • Personalisation Acquisition and mergers Note: These trends are within the wider context of macro factors affecting the Foodservice market, which are not considered here More to follow More use of vegetables, vegan Superfoods Clean, raw, paleo… Guilt free snacks Options for kids 20 22/02/2016 Key points In summary • It’s a healthy future! • Foodservice is a large market • Consumers are more educated and are expecting and looking for more choice of healthy options and information on menus • Operators are actively making changes to their offer to meet this • And new operators are entering the sector with “healthy” offers • A positive future looking forwards 21 22/02/2016 Thank you! www.hrzns.com [email protected] 22.
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