The Top 100 Most Loved Eating Out Brands 2019

Who is winning the hearts of UK diners?

savanta.com Contents

Introduction 03 A warm welcome 04 Why a top 100 league table? 05 The (commercial) power of love 06 Putting the report in context 08

Which brands are the top performers? 09 The top 20 most loved eating out brands of 2019 10 Quick service 11 Fast casual 12 Coffee shops and cafes 13 restaurants 14 Restaurants 15 Cuisines 16

Observations and analysis 18 The experiential drivers of love 19 Fostering meaningful brand relationships 20 Embracing innovation 22 – The rise of plant-based and alternative proteins 22 – Tech: a true sectoral game-changer? 24

The league table in full 25 No. 1 - 100 26

How Savanta can help you 29 Our core areas of service delivery 30 Our BrandVue data engine 31 The team behind the report 32

savanta.com Introduction

04 – A warm welcome

05 – Why a top 100 league table?

06 – The (commercial) power of love

08 – Putting the report in context

savanta.com 3 Introduction

A warm welcome

Welcome to the Top 100 Most Loved Eating H2O Publishing is delighted Out Brands – a recognition and celebration to be collaborating with Savanta on of the most emotively connected dining the Top 100 Most Loved Eating Out Brands.

brands in 2019, brought to you by Savanta It’s a valuable exercise in helping explain current turbulence and avoid the bear in partnership with H2O – the leading just why customers love the brands traps – not straying too far from the they do and, of course, who is the most core proposition DNA, or losing the drive foodservice publishers in the UK popular on the high street. for continuous, relevant innovation.

Within this report we reveal the provided on how to best nurture brand Such insight in relation to brands is Our league table of loved brands will most loved eating out brands on affinity – across both functional and imperative, as, let’s make no bones about highlight who is ‘winning’ in the brand the high street – with performance emotional dimensions. The underlying it, the current trading environment is a space – and start to explore why they rankings straddling brands from the links between love and commercial tough one. The eating out vertical is being are succeeding as well as flagging , pub, coffee shop, and performance will also be uncovered. buffeted by macro-economic and sectoral a few lessons learnt along the way. quick service/fast casual verticals. Furthermore, we will drill into what it headwinds (escalating rents, business We hope you enjoy. The consumer insight is drawn from the means for a customer to be ‘in love’ with rates, labour costs) in tandem with falling Tristan O’Hana, opinions of some 100,000 diners, through a brand – helping operators understand, high-street footfall and over-supply. Editorial Director – H2O Publishing Savanta’s market intelligence platform in far more granular detail, the drivers of That said, it’s not impossible to BrandVue Eating Out: the largest and true brand affinity as well as the levers succeed. The rewards are there for most comprehensive brand, audience and to pull in creating and deepening the love. those brands that can ride out the customer tracking engine in the market. All the best and happy reading. Over the following pages fresh, Scott Dodgson, cross-category perspectives will be Account Director – Savanta

savanta.com 4 Introduction

Why a top So, let’s compare apples with 100 league apples. To this end, we have also compiled a top three of brand love table? across the following sub-sectors:

Pub restaurants Restaurants Coffee / cafe

That’s easy.

Over the last few months we’ve lost count of the number of occasions on which we’ve been asked… ‘So, how is our brand doing?’ followed by… ‘How does that compare to our competitors then…is that good?’ Quick service Fast casual Whilst, it is – of course – important we acknowledge that relative brand restaurants dining performance is only part of proposition success, it is a central plank. Plus, true brand affinity (love) has real bottom-line value – as we’ll validate a little later. Context is all though. Whilst we can draw some conclusions Additionally, we’ve taken a look at ‘cuisine love’. Given – as with the other from the helicopter view of the eating out space, brand associations, territories – analysis of this area provides learnings from which we can draw value perceptions and experiential benchmarks vary wildly by sub-sector. some real insight and direction. Particularly when it comes to true brand love. As an illustration, the Caffè Nero, coffee-shop, grab-and-go occasion is clearly a very different experience to visiting Côte for your anniversary.

savanta.com 5 Introduction

The (commercial) power of love

Given though that the average level Of course, we know – often painfully of love in our league table is around so – that brands can grow without being ten percent, a healthy incremental loved. ‘Buying’ love can be achieved by increase would be a single simply opening more outlets, offering percentage point or more. heavy discounts and/or operating With the (mean) average visitation of in locations where there is minimal any brand within our league table sitting competition. But, critically, is this the at three times a year, a single point most cost-effective investment and is Love’s nice, but it doesn’t increase in brand love would equate it sustainable in the long-term? Recent to a 4.6% uplift in footfall. This is even high-profile brand implosions and estate pay the bills...or does it? more impactful for those high-frequency rationalisation activity may suggest not. sub-categories (i.e. coffee/cafe). The fundamental question is whether At a very basic level, there is a relationship it’s worth trying to be more loved by between the extent to which consumers consumers. Our league table certainly love an eating out brand and their venue confirms that the top spots are held visitation. Analysis of behavioural visit by some very valuable brands, but is patterns (of those propositions featuring there a quantifiable business case for in our top 100), reveals two-fifths of visits moving up the table? The answer is yes. are linked – to some degree – to the love We have undertaken extensive statistical of the brand. With almost a quarter (23%) “The greater the love, analysis on the data held within our of visits absolutely depending upon BrandVue Eating Out platform, to brand love. the greater the dining uncover the business impact of being Regardless of business size, for those loved. In doing so, we have arrived brands which develop true affection at some enlightening findings – – and ultimately love – customer visit frequency; for a 7% increase helping casual dining operators make frequency increases. The greater the a compelling case for investing in love, the greater the dining frequency; in brand love, there’s an becoming more loved or, at the very least, for a 7% increase in brand love, there’s the avoidance of becoming unloved. an extra visit per customer. extra visit per customer.”

savanta.com 6 Introduction

Visit frequency vs love How can my brand The strength of the relationship between love and number of visits become more loved? We can see that people love McDonald’s and visit often, while Miller & Carter is a rare treat. While Pret’s customers visit often, they don’t Further analysis of the underlying drivers of brand love reveal some interesting seem to display a great affinity for the chain. findings which can help marketers and customer experience managers take practical steps to increase footfall – as well as make appropriate investment cases to key decision-makers (and budget holders). 9 McDonald’s Crucially, the drivers of brand love to directly contribute to the bottom are quite different from other, line. Customer experience innovation, 8 more familiar, KPIs – such as NPS without involving capital or pricing, (Net Promoter Score). Research in can yield double-digit growth.* 2018 by Savanta into the drivers of NPS Money can’t buy you love, but investment 7 Costa revealed customers’ brand advocacy is in great service and innovation can. It’s conditioned heavily by rational factors possible to sustain an unloved business, such as the deliciousness of the , but progress is slower and expensive 6 the freshness of the ingredients etc. – dependent upon new openings, as well as (too often) discounting. Love drivers, on the other hand, are much more emotional — potentially Investing in becoming more loved, 5 because love is something more through innovation, service and Pret Domino’s private and intangible, as well as atmosphere will enrich the business less about defending an opinion. by increasing average customer

Annual visit frequency visit frequency Annual 4 This is about contributing to the frequency. For chains, even the smaller Nando’s delivery of a (consistently) positive ones, incremental gains per customer personal experience. Our analysis add up – eventually making a tangible 3 of the key drivers of brand love difference to the bottom line. include prompt and friendly service, Creams Cafe Let’s also not forget, the more as well as restaurant ambience. visitors who experience your great Miller & Carter 2 The significance of this is that our food, the greater the word of mouth. findings empower the marketing and Recommendation is still the number one customer experience teams reason to trial a new eating out venue. 1

0% 5% 10% 15% 20% 25% *Please note, far greater detail on the associated analysis is provided % of people who love the brand later within ‘The experiential drivers of love’ section. savanta.com 7 Introduction

Love by sub-sector UK consumers out around 3 times per month Quick service % Putting the restaurants 12.8

Coffee / cafe 10. 3%

Fast casual % dining 10. 2 Typically, we visit 35 report in context eating out brands a year Restaurants 9. 6%

Pub % Eating out frequency per month restaurants 8 . 7

Female Male The UK consumer loves 2.8 3.0 3.4 on average 1.2 eating out Scotland brands at any one time 2.7 3.3 Age group Frequency North-East Annual visit frequency Northern 16–29 3.4 Ireland 2.9 Quick service Yorkshire & restaurants 4.5 30–44 3.2 Humberside Younger consumers 2.6 Coffee / cafe 3.7 (under 30) are the 45–59 2.4 3.0 most frequent diners, North-West Fast casual eating out 3.4 times >59 2.3 3.0 2.8 dining per month, compared West Midlands 2.4 Pub to 2.3 for the over 60s UK Overall Eastern restaurants 2.9 2.3 2.9 3.9 Restaurants 2.5 2.4 2.5 South–West South–East Those in Wales are less Average brand love likely to eat out with an average frequency of 2.3 per month Age group Avg no. of brands loved Region Avg no. of brands loved

16–24 1.9 North 1.1 + 25–34 1.8 100k 150 Midlands 1.1 per year brands tracked, 35–49 1.2 sampled daily sampling South 1.0 50–59 0.6 Londoners are the most London 1.9 active diners eating out 60–74 0.3 Results taken from H1 2019 (50,000 respondents) 3.9 times per month

savanta.com 8 Which brands are the top performers?

10 – The top 20 most loved eating out brands of 2019

11 – Quick service restaurants

12 – Fast casual

13 – Coffee shops and cafes

14 – Pub restaurants

15 – Restaurants

16 – Cuisines

savanta.com 9 Which brands are the top performers?

The most The Top 20 big reveal… loved eating out Ranking Brand 1 McDonald’s brands of 2019 2 Nando’s 3 Costa

4 Greggs

5 KFC

6 Domino’s

7 Creams Cafe Context is everything 8 James Varlow, 9 Miller & Carter Senior Consultant – Savanta 10 JD Wetherspoon

At first glance, the ‘top twenty’ of our McDonald’s – although brand legacy 11 most loved league table is a highly and its estate scale are far from the sole diverse list of brands, with few points influencers upon McDonald’s engendering 12 Hut Restaurants of commonality. But, look again… of love. McDonald’s is a brand rightly 13 Starbucks when we explore a little deeper, we garlanded for its constant drive for

spot that the QSR and coffee shop innovation, not simply for its own sake, 14 behemoths feature prominently – but to retain customer relevance. undoubtedly braced by their respective Why though the prominence of the likes 15 The Ivy brand legacies and scales of estate. of Creams Cafe, Miller & Carter, Five 16 Burger & Lobster Thus emphasising the importance of Guys, et al? Substantively it’s about investment in customer love over the proposition ‘flair’, attention to detail and 17 long-term, as well as the significance quality service. Each does things in their of physical – outlet – availability for own unique way, to give a refreshing – 18 customers to get their ‘love fix’. customer relevant – makeover to what 19 Pho This is perfectly encapsulated by can be a tired and predictable offering. 20 Bistrot Pierre

savanta.com 10 Which brands are the top performers?

It’s no coincidence that McDonald’s and decisive reactions to unforeseeable has the highest annual visit / order events. As evidenced by their response Category frequency in the eating out market. to the potentially brand crippling But what of the other brands chicken shortage crisis as well as who made the QSR shortlist? its tongue-in-cheek print advertising medallists… KFC’s strong result – 5th highest overall referencing the copycat names used – reminds us that brand love is not by many a high street chicken shop. Quick service restaurants a race to the lowest price point. KFC, Subway, in third, reminds us that fast with its far from rock-bottom pricing food can be an enriching, customisable thresholds, has the highest sales per experience – as healthy or indulgent hour of the QSR brands in the top 100. as we wish it to be. Brand love is about Whilst KFC has limited edition items providing the option to be as virtuous and a strong OOH presence like or unhealthy as we choose, depending Top 3: McDonald’s, it has also shown quick on the specific occasion or our mood. McDonald’s, KFC and Subway Oli Fenton, Senior Consultant – Savanta

Let’s cut to the chase: the UK loves – with multiple QSR brands featuring within the top 10. The top QSR brand is also the operator at the top of the 100 list — McDonald’s. An incredible one in five British people love the brand, something which doesn’t happen by accident. Here are some of the reasons why…

Perfecting the release of new menu the example for how OOH should be used items: McDonald’s often releases new by big operators – always in relation to the additions to its menus. At the front nearest restaurant or the newest release and centre of this are limited edition – whilst reminding consumers of the core items, such as the Double Quarter offer true to every outlet. This is how to Pounder, Chilli Chicken Nuggets and make a massive brand feel like something regional burgers. These create a sense close-to-home, familiar and loved. of urgency and, in the age of FOMO, Always available: 24-hour McDonald’s there is not an emotion more lucrative. restaurants allow any craving for a But, they are also all tied in with the Big Mac to be met. Social media has simple premise – a burger and fries. increased the ‘opening hours’ in which Ever present OOH advertising: McDonald’s brands can infiltrate a consumer’s day knows how to use out-of-home better – with younger people increasingly eating than anyone else – whether it’s bus stops, whenever they like. Restaurants available

billboards, or road signs alerting you to a at any time fit neatly with modern Always available – McDonalds famous golden arches restaurant at the next right. The brand sets lifestyles and consumption trends.

savanta.com 11 Which brands are the top performers?

Category US-founded burger chain Five Guys medallists… Fast casual

Top 3: Nando’s, Five Guys and Leon Sophie Watson, Senior Consultant – Savanta

Nando’s has struck the perfect chord To build anticipation, the locations with customers. As it stands, it is the of these billboards were kept secret undisputed champion of the fast-casual with teasers and hints shared across dining space. This begs the question, digital channels. This initiative wasn’t to the availability of unlimited toppings, operators, it is also amongst the most ‘what is the brand doing to win the restricted to local residents though, with Five Guys offers plenty of variety nimble – having excelled at capitalising stomachs of consumers?’ — with almost wider activity across social media. whilst at the same time maintaining a on contemporary cuisine trends and one in five claiming to ‘love’ Nando’s. The ‘Secret Menu’ is another example of fairly limited menu – particularly when dietary preferences. A quick glance One area in which Nando’s excels Nando’s rewarding loyal consumers via compared to the likes of McDonald’s. at its online menu reveals a variety of is its clever, quirky, engagement exclusive menu editions. Nando’s has The proposition is clearly resonating vegetarian and vegan options – with a of its customer base – positively embraced the digital medium to drive with consumers and this is reflected by number of ‘hero’ products clearly visible, boosting brand perceptions via affinity – in a very ‘on-brand’ manner. its strong Net Promoter Score. At +32 including ‘Jack Wings’, a cheesy vegan interactive marketing activity. The second most-loved fast casual brand for H1 2019 it’s head and shoulders jackfruit nugget in a gluten-free crumb. In spring 2019, Nando’s captured the is Five Guys. Since launching in the UK above any of its burger-based rivals. With the company reporting a 21% attention of Londoners and Mancunians in 2013 the US-founded burger chain Completing the top 3 most loved fast- increase in vegan sales between January through the launch of giant loyalty has grown quickly and now boasts close casual brands is the healthy fast food 2017 and 2018, its bold decision to cards attached to billboards, with to 100 sites. With literally hundreds of operator Leon. As well as being one position plant-based alternatives at the the chance to win 10 free meals. different ways to customise a burger due of the fastest growing UK restaurant heart of its offer is clearly paying off.

savanta.com 12 Which brands are the top performers?

more exciting fresh food options. Items but cheeky PR stunts and good- included lentil, butternut and tomato humoured, self-deprecating marketing Category salads as well as pancetta, roasted too. The much-lauded launch of the tomato and mozzarella tartlets – options vegan sausage roll making strategic far removed from legacy (cheese-toastie- sense from a product as well as a based) perceptions of coffee shop fare. promotional standpoint. Acknowledging medallists… Let’s also not ignore the prominence evolving consumer wants/needs Coffee shops and cafes of the high street baker, Greggs. and flexitarianism trends in a quirky, A purveyor not just of savoury pastries, irreverent fashion – what’s not to love?!

Top 3: Costa, Greggs and Creams Cafe James Varlow, Senior Consultant – Savanta

Costa Coffee’s self-proclaimed status consumers (it has the highest annual as ‘The Nation’s Favourite Coffee visit frequency of all coffee chains) – Shop’ is certainly a bold claim, but one therefore driving greater levels of affinity. that is supported by its lofty status Costa’s nearest coffee-chain rival, in the love league table. Ranking 3rd Starbucks, also features in the top out of 100, and with more than 17% 20 – underlining the UK’s status as a of UK consumers claiming to love the nation of coffee lovers. With some 95 brand, only McDonald’s and Nando’s million cups of coffee consumed per outperform the coffee giant. day, this is a trend still on the increase. Key to Costa’s appeal is its sheer scale. But serving coffee alone is not enough. With around 2,500 outlets spread across The rise of grab-and-go concepts the UK, it covers a far greater proportion offering fresh and hot menu items – of the nation’s high streets than some alongside hot – has caused the of its immediate competitors – such coffee giants to rethink their approach as Starbucks (c.1,000) and Caffè Nero to serving food. Caffè Nero, for example, (c.700). This impressive footprint recently trialled a Deli Kitchen range at provides a strong foundation to build and a number of sites – with the intention of 95 million cups of coffee are consumed per day in the UK maintain more frequent interactions with offering consumers greater variety and

savanta.com 13 Which brands are the top performers?

Category The Sedge Lynn pub, medallists… Pub restaurants

Top 3: Miller & Carter, JD Wetherspoon and Toby Carvery Alasdair Pearce, Senior Consultant – Savanta

At number nine in our league table is hate it, its results and successes make Miller & Carter, the steakhouse brand it impossible to ignore. Partly, it’s the that takes a premium approach to basics such as price – JD Wetherspoon generating consumer engagement prices are now around 20% cheaper – with a ferocious attention to detail than the industry average according and focus upon quality service. to recent industry research – but Miller & Carter creates an experience there’s more to it than that. It’s smart that customers clearly respond to – as well – by being branded, but still breakfast, coffee and lunch deals generate some consternation, its NPS (advocacy) score has been distinctive, JD Wetherspoon manages JD Wetherspoon creates welcoming particularly amongst leadership teams consistently top of all brands. If this a tricky balance in making each venue and warm atmospheres all day across of those brands lower down. continues, it is likely to rise further unique and ‘pub-like’ while still offering occasions, further enhancing its appeal. But look again. By offering a reliable the reassuring ‘Spoons’ classics. up the ‘most loved’ rankings as its Elsewhere on our list, it’s notable that offering and genuinely good service aggressive expansion continues. With its app and paperless billing – Toby Carvery and Farmhouse Inns sit these brands can inspire significant In tenth place is JD Wetherspoon: it manages to be cutting edge and within our top 25. The position of these levels of customer loyalty amongst Britain’s most loved pub brand — as leverage the brand in a way unbranded brands (as well as JD Wetherspoon) audiences whose preferences well as its most disliked. But love or groups simply can’t replicate. With on our league table may initially are not being catered for.

savanta.com 14 Which brands are the top performers?

an equally strong experiential Coming in at third among the casual performance – its NPS has comfortably dining operators is The Ivy. Offering Category sat in the top three of all eating out modern British cuisine in a ‘sophisticated brands for the past couple of years. and relaxed all day dining’ environment, With UK consumers increasingly The Ivy offers a premium experience at opting for over more a relatively affordable price point. The medallists… ‘traditional’ offerings – such as Italian or chain now boasts more than 20 sites Indian – Wagamama looks well-placed spanning the UK, with another four Restaurants to continue its strong performance. soon to open. It remains one to watch.

Top 3: Restaurants, Wagamama and The Ivy James Varlow, Senior Consultant – Savanta

With QSR and grab-and-go concepts Second among the casual dining brands dominating the upper echelons of is Wagamama (14th overall). The British the league table, the most elevated restaurant chain which serves Asian casual dining brand in our ranking food based on Japanese cuisine has is Pizza Hut Restaurants – the long- been one of the strongest performers established chain takes 12th place. in the casual dining sector in recent Since the opening of the first Pizza Hut years. The reasons behind this success? over 40 years ago in Islington, it has From a brand perspective, it marks been the go-to venue for family dining itself out as distinct and innovative… occasions up and down the country. whether it is announcing the introduction Its rich heritage in the UK eating out of gender-neutral toilets as part of industry is one of the key components Pride celebrations or introducing the of its appeal… whether it was launching ‘noodle lab’ – a test kitchen in Soho the first pan pizza in 1980 or the which is open for the public to try first stuffed crust equivalent in 1995, new concepts and dishes. It stands Pizza Hut has built and sustained out for its bold and fresh thinking. British chain, Wagamama which serves Asian food based on Japanese cuisine a level of brand equity many of its Wagamama successfully marries competitors can only dream of owning. a strong brand performance with

savanta.com 15 Which brands are the top performers?

Category medallists… Cuisines

Sophie Watson, Senior Consultant – Savanta

Whilst there is value in focusing upon QSR brands – where speedy service these individual sub-categories, it is is expected alongside quality. Burgers also worth commenting on the diversity and chicken, of course, dominate the of the most loved cuisine types and fast food category. Although product their associated experiences in-the- launches aligning with growing trends, round. American fast food chains are such as , are on the rise. particularly popular, with the likes of Coffee shops and those in the cafe space McDonald’s, KFC and Five Guys all are amongst some of the most loved making an appearance in the top 20. brands with Costa, Greggs and Starbucks The familiarity and consistency all gracing the top 20 – driven primarily of the food offering clearly plays by the rise of convenience-based demand. a major role, particularly across the

“Burgers and chicken, of course, dominate the fast food category.”

savanta.com 16 “Pizza is well and truly loved in the eating out sector with an array of choices alongside countless deals and promotions.”

The success of Greggs illustrates this choices alongside countless deals and point perfectly. They sit in 4th position promotions, these brands are likely to due to their wide offering of continue attracting consumers and products whilst being savvy enough preserving their brand love. But, are some to reach a new audience through the ‘buying’ this love at too high a price? launch of its vegan sausage roll in Whilst more scattered, pub restaurant early 2019. It should therefore come brands – Miller & Carter, JD Wetherspoon, as no surprise that they have seen and Toby Carvery – are in evidence an uplift in brand love this year. across the upper quartile of the brand Outlets offering also love league table with each offering a feature prominently. Domino’s, Pizza range of popular dishes. Good pub grub Hut and Franco Manca all fall into the is an easy win in the eating out space, top 20 most loved eating out brands. with favourites such as steak, burgers, Pizza is well and truly loved in the eating roast dinners, as well as fish and chips, out sector, and with an array of pizza consistently listed on the menu. savanta.com 17 Observations and analysis: What can we learn from the results?

19 – The experiential drivers of love

20 – Fostering meaningful brand relationships

22 – Embracing innovation

22 – The rise of plant-based foods and alternative proteins

24 – Tech: a true sectoral game-changer?

savanta.com 18 Observations and analysis

The experiential Primary experiential drivers of love Value % % for money 30 25

Speed % % drivers of love of service 30 16

Quality % % of service 30 13

Friendliness % % of staff 30 9

Venue was % % clean/tidy 30 8

Atmosphere % % /ambience 30 7 Where should I focus my Quality of % % efforts (and investment)? ingredients 30 6 Flavour 30% % It’s not what you offer, it’s how out experience? Great service. Peeling of the food 6 you offer it. Value for money is the back the layers, we have ascertained top experiential driver of love, but that three service-related attributes notably the only price related driver. are strong drivers of brand love– Neither the price attractiveness of the friendliness of staff, as well as Clearly, understanding the dining atmosphere that also works in harmony food, nor drinks, featured strongly. the speed and the quality of service. context is, of course, imperative. with the overarching proposition – be that This is potentially because focusing on No matter how large your brand, it is Sit-down, special occasion brands will be bustling and loud, or minimal and quiet. price is too functional a dynamic for your people who make (or break) it. found wanting if they have a low score The final key driver is one that pops up engendering true brand affinity with It is though worth highlighting that on any one of these three – friendliness, in all the sectoral analysis we conduct: consumers prepared to flex their value you don’t have to hit all three of the speed or quality. food quality. The emphasis here is perceptions (and bill breakpoints) if service attributes to create brand Furthermore, experience is not just about on strong flavours and the quality of the overall experience is deemed worth love. McDonald’s has minimised the people, it’s also about environment. The ingredients; the perceived healthiness it. Indeed, if the overall experience amount of restaurant crew interaction cleanliness/tidiness of the venue, as well and freshness are relatively unimportant is good enough, consumers are to maximise speed of service, which as the atmosphere/ambience, feature for brand love. Quality must run through willing to pay extra for a brand they improves overall experiential quality – strongly amongst the key drivers of brand the whole food offering and not just love. Five Guys is illustrative of this so friendliness of staff is minimised, love. But, do note that the décor doesn’t be linked to new menu editions. within the burger and fries space. in favour of a focus on the other two need to cost the earth, but does need The opportunity to increase brand So, what is essential for a ‘loved’ eating service components. Speed is key. to be on-brand – aligned to a restaurant love is there to be grasped…

savanta.com 19 Observations and analysis

Employ analytics to help Fostering understand, profile and size your customer typologies meaningful brand The more you know about your current and prospective customers, 1 the more successful you will be in developing meaningful relationships with them. Of course, that’s not rocket science – but important to reaffirm nonetheless as it’s the keystone of any customer engagement programme. relationships Gathering as much data as possible provides a deeper, more granular, understanding of existing and potential customers’ demographics, behavioural patterns, needs, motivations and preferences. It also facilitates the ‘sizing’ of such consumer groupings. Enabling the prediction of future behaviours, as well as the more effective targeting of marcomms activities, helps maximise customer loyalty and positive sentiment through the delivery of the right message, to the right customers, at the right moment.

Love takes time Personalised and relevant to nurture and grow communication

Whilst we have just established the of time, across multiple touchpoint Bespoke, personalised customer/prospect communication demonstrates drivers of brand love in-restaurant, interactions. In our experience though, interest in their unique needs and interests. If they’ve abandoned we need to acknowledge the wider there are four central approaches 2 their online restaurant booking, you can send a friendly note asking contextual customer journey and which – if executed effectively – if any help is required. Maybe it’s been a year since their first visit potential influences upon it. Ultimately, can help foster those meaningful and you want to send them an email celebrating this anniversary. as in all relationships, love must be relationships, helping drive positive With the power of marketing automation, an efficient – proactive – approach nurtured – in many different ways. brand sentiment and, by extension, can be taken to solidify customer relationships. Tailored communications, Brand affinity is no different, you build bottom-line revenue generation. suited to every stage of the customer journey, demonstrate that it with customers over a long period the brand cares, which will – over time – reap its reward.

savanta.com 20 Observations and analysis

Be social, although mindful that this is a two-way conversation

In this digital age, many brands still make the mistake of believing their social channels are solely for building visibility and extending 3 reach. A social presence has an associated responsibility of providing a customer service capability, as and when it is required. There is nothing more dissatisfying to a customer than to wait for an extended period to receive a response or, for that matter, to be ignored entirely. As we are all highly aware, social channels form part of the holistic brand persona – and are just as susceptible to reputational damage.

Retain over replace

Most casual dining brands have a well-established marketing strategy, but very few have a documented customer retention plan. A greater effort and investment in nurturing customer relationships will be made if the focus is upon customer retention. As it is widely acknowledged 4 within our highly competitive sector, customer retention is markedly cheaper than acquisition. Of course, an exceptional proposition, dining experience and positive value associations are central to retention rates. A route though to incrementally nurture positive customer relationships and loyalty is to reward them for it. Consistently sending personalised rewards (often within a loyalty app), even if comparatively small in real-terms value, are all small but thoughtful gestures which give customers a tangible reason to keep coming back.

savanta.com 21 Observations and analysis

Embracing The rise of plant- based foods and innovation alternative proteins

1The ever-increasing interest in personal and environmental Keeping things fresh health is helping drive a growing consumer BrandVue Eating Out unfortunately hasn’t got a crystal ball predisposition towards alternative proteins and facility — if only! From various retrospective trends we can, plant-based foods. Critically though, how real is though, make certain observations moving forward. One is this ‘hot’ opportunity for the restaurant sector? that innovation is central to retaining brand love, to keeping the Before we can truly ascertain whether plant-based foods proposition fresh and relevant in a rapidly changing marketplace. represent a substantive opportunity for the sector, let’s This is most pertinent across food trends and technological firstly take stock of recent contextual trends and influences… enhancement. So, let’s take each of these two elements in turn…

savanta.com 22 Observations and analysis

We simply can’t ignore It’s about more than simple the growth of ‘clean-eating’ health and ethical considerations

Clean-eating is centred around the We’re all aware of Wagamama’s recent Yes, of course, eating alternative proteins dimensions. Cauliflower wings, consumption of more fruit, vegetables, success within a highly challenging is overtly linked to dietary health and broccoli bites and yuca fries whole grains, lean proteins and healthy marketplace. The brand offer is built upon environmental morals – they’re hard- encapsulate very distinctive taste, fats whilst – at the same time – limiting a commitment to fast-cooked, fresh and baked associations. That said, these as well as texture, profiles. the intake of processed foods. This is an healthy pan- – positioned are far from the sole choice drivers. Furthermore, Korean, African and - approach personified by Japanese dishes. as feeding the ‘mind, body and soul’. Plant-based foods (and alternative influenced dishes often ‘champion’ the proteins) are a vehicle for menu vegetable components – at the expense, innovation and freshness – delivering or often even inclusion of, the protein. something different across key

Truly, is this a hard, commercial, opportunity?

So, to the commercials. Are plant-based – in parallel with its growth across “Eating alternative proteins menu inclusions a distraction, or is the Southeast Asian territories. associated NPD investment likely to Back in Blighty, let’s not forget the is overtly linked to dietary deliver a bottom-line return? Ultimately, impact of the much-vaunted Greggs that’s a judgement call we can’t make vegan sausage roll. Whilst it’s rather without knowing the individual business tired to rake over old news, the effect health and environmental context. We can though draw some the offering had upon brand re-appraisal learnings by peeking across the Atlantic… and profits cannot be overstated. morals – they’re hard-baked Double-digit growth has been evident this Are the tectonic plates shifting in year amongst US restaurant operators relation to protein preferences and which have included alternatives consumption behaviours? Maybe not, associations. That said, on their menus. Illustrative is White but certainly there is the odd fault-line Castle, with its BBQ Impossible Slider, opening up. Ultimately though, plant- rolled-out across its 350+ restaurant based foods represent an opportunity these are far from the sole estate. In addition, VeganBurg has for innovation – which the most agile announced an ambitious expansion sector performers will exploit. choice drivers.” plan to further extend its US footprint

savanta.com 23 Observations and analysis

The transformational game-changer

Let’s not though view the rollout of 5G in a vacuum. This greater connectivity goes hand-in-hand with the growth of AI and machine learning, as well as impacting hugely upon social media – given the facility for instantaneous connections. By extension, the customer experience (and associated expectations) will continue to evolve – across in-restaurant and delivery channels – as 5G adoption gains pace… • Ordering platforms, from menus to drive-throughs, are likely to evolve into more immersive and interactive experiences. • 5G-connected droids/drones could allow restaurants to send out more food Tech: deliveries (e.g. Just Eat has an established relationship with Starship Technologies). Innovative 5G technologies are also likely to drive cost efficiencies, through more a true sectoral effective monitoring of food production and wastage levels as well as the training of kitchen teams through AR/VR experiences. game-changer?

2Fifth generation (5G) wireless networks is one of the next big things in the casual dining space. Let’s briefly remind An undoubted opportunity ourselves about the technology that is already proving disruptive and re-shaping the sector – digital menu boards, – faster, easier, better mobile ordering and POS ( and Byron are rolling 5G-connected technologies represent a major opportunity to deliver an enriched out Facebook Messenger payment), delivery services etc. customer experience, whilst increasing revenues and reducing overhead costs These all require network connectivity to make them viable. – the classic win-win. So, just think how the industry will further evolve given Placing functional ordering (and payment) processes in the hands of the customer, super-fast internet (with speeds 10 times faster than when done well, is efficient as well as customer empowering. Additionally, it frees currently) – with a guaranteed signal connection to boot. up restaurant teams for true, engaging, customer interactions. Yes, 5G will deliver these functional benefits, along with deeper – more transformational – change…

A shallow adoption curve

Whether it’s pre-ordering your favourite coffee from your favourite barista, paying at your table within the blink-of-an-eye, or ordering home-delivery with a simple tap of your finger, 5G-connected technologies will soon be enriching the dining experience. Whilst the adoption curve will be relatively shallow over the next 12-24 months, at some point in the near future critical mass will be reached. As an industry, it is imperative we’re ready for 5G to go ‘bang’ – driving innovation, not being dragged along in its slipstream!

savanta.com 24 The league table in full

26 – No. 1 – 100

Data relates to interviews conducted in H1 2019. Base sizes range from c1,000 – 5,000

savanta.com 25 The league table in full

No. 1 – 100 Ranking Brand 11 Five Guys

The rankings are based on the % of consumers 12 Pizza Hut Restaurants selecting ‘Love’ on a 7 point scale when asked to describe their opinion of a brand they are familiar with. 13 Starbucks 14 Wagamama

15 The Ivy

Ranking Brand 16 Burger & Lobster

1 McDonald’s 17 Toby Carvery

18 Franco Manca 2 Nando’s 19 Pho

3 Costa 20 Bistrot Pierre

21 Bill’s 4 Greggs

22 Farmhouse Inns 5 KFC 23 Turtle Bay

6 Domino’s 24

25 Wahaca 7 Creams Cafe 26

8 Subway 27 The Alchemist

28 9 Miller & Carter 29 Giggling Squid

10 JD Wetherspoon 30 Cosy Club

savanta.com 26 The league table in full

Ranking Brand Ranking Brand

31 Loch Fyne 56

32 The Real Greek 57

33 Harris+Hoole 58 Wildwood

34 The Stable 59 Bell

35 Leon 60 Piccolino

36 Gaucho 61 Wok&Go

37 Coffee#1 62 Byron

38 63

39 Tortilla 64 Joe & The Juice

40 YO 65

41 Frankie and Benny’s 66

42 Le Pain Quotidien 67 Sizzling

43 Papa John’s 68

44 Honest Burgers 69 Brasserie Blanc

45 Chopstix 70 Itsu

46 Loungers 71

47 72

48 Pizza Express 73

49 Roosters Piri Piri 74 Caffè Nero

50 TGI Fridays 75

51 The Breakfast Club 76 Ed’s Easy Diner

52 Côte 77 Vintage Inns

53 Veggie Pret 78 Flaming Grill

54 Crown Carveries 79 Chipotle

55 Browns 80 Nicholson’s

savanta.com 27 The league table in full

Ranking Brand

81 Two for One

82

83 Revolution

84 Old English Inns

85 Brewdog

86 Coast to Coast

87 Eating Inn

88 AMT Coffee

89 Stonehouse Pizza & Carvery

90 Carluccio’s

91 Gusto

92 Ember Inns

93 Pod

94 ASK Italian

95 Lloyds No.1 Bar

96

97 Harry Ramsden’s

98

99

100 Pitcher & Piano

savanta.com 28 How Savanta can help you

30 – Our core areas of service delivery

31 – Our BrandVue data engine

32 – The team behind the report

savanta.com 29 How Savanta can help you

Our core areas of service delivery Coverage and capabilities

Target market Customer experience All employed from a understanding enrichment • Category due diligence • Customer satisfaction surveys commercial, • Consumer trends • Brand communities strategic, • Market segmentation • Touchpoint CX tracking standpoint

Brand management Proposition & growth development • Health audit • Ideation & concept screening • Perceptions tracking • Pricing strategy research • Strategy research • In-the-wild product testing

Behavioural Marcomms shopper analysis optimisation • Path-to-purchase mapping • Communications development • Shopper observations • Advertising testing & tracking • Retail safaris • Experiential activity assessment

savanta.com 30 How Savanta can help you

We ask 100,000 diners annually BrandVue Eating Out – our market intelligence platform – is the largest, most granular brand, audience and customer Our BrandVue tracker in the market. This rigour provides us with a detailed understanding of sub-category level performance – across a data engine whole gamut of brand health and experiential measures. 150+ brands surveyed No brand operates in a vacuum, so it’s imperative we understand the competitive context. We currently track some 150+ brands and are constantly scanning the horizon for the next wave of eating out propositions to add.

Daily perceptions tracking Given major perceptual and experiential fluctuations – peaks as Leveraging the full power well as troughs – across the year, we monitor performance of BrandVue Eating Out continuously (on a daily basis), as opposed to one fixed point in time. Sharing the where and why Whilst various syndicated tracking vehicles can provide brand awareness, very few can help unpack the ‘why’. BrandVue Eating Out places considerable value upon gaining a clean read of the sales pipeline, and the associated consumer journey We ask 100,000 150+ brands Daily perceptions – central to any customer-centric marketing strategy. diners annually surveyed tracking

Seeing the real-world value The successful establishment and nurturing of a strong brand can deliver considerable bottom-line impact. It can though be challenging to justify the investment. Through BrandVue Sharing the Seeing the Eating Out, we can place a real-world value on KPI performance where and why real-world value (inclusive of affinity), empowering brand champions and marketeers with the data and insights required to drive their decision- making… delivered through a real-time digital dashboard.

savanta.com 31 How Savanta can help you

James Varlow Senior Consultant James has a real passion for the Eating Out sector, allied to a The team phenomenal ability to see the ‘picture-in-the-numbers’ – translating this into directional, actionable, insights. He is a BrandVue Eating Out ‘super-user’ – able to gain a granular understanding of how particular brands are performing within the competitive behind the report marketplace – identifying relative strengths and weaknesses, as well as potential commercial opportunities not fully realised.

Oli Fenton Senior Consultant Oli works with many BrandVue Eating Out clients to gain Julian Dailly an enriched brand and customer understanding, employing Senior Vice President, Key Accounts his advanced analytical abilities to help realise the Julian’s core expertise is strategic brand insight and positioning. associated commercials linked to acquisition and growth. His real strength is supporting clients in gaining an enriched understanding of their brand – within broader customer and market contexts. Translating this into bottom-line returns, Julian has provided consulting support to some of the UK’s most recognisable eating out brands, including for the likes Sophie Watson Senior Consultant of Deliveroo, Nando’s and Prezzo. Working with a variety of eating out brands has provided Sophie with a keen understanding of the eating out space – across multiple channels. She excels in weaving multiple data sources (BrandVue, direct customer feedback, trading numbers, etc) together to tell a rich, commercially focused, narrative.

Scott Dodgson Account Director Alasdair Pearce Scott, the commercial lead for BrandVue Eating Out, has spent Senior Consultant half a lifetime working in close partnership with brands across the Alasdair is one of our resident brand (and BrandVue Eating Out) casual dining sector – leading a raft of strategic brand insight and experts, honing his skills across multiple verticals, albeit principally consulting programmes. Over the years, he has been involved in the casual dining. His scholastic (Cambridge University) endeavours have cut and thrust of commercially illuminative projects for a wide range proved formative in him truly recognising the power, as well as value, of blue-chip clients, including McDonald’s, Caffè Nero, and Five Guys. of a strong brand – supporting his clients in looking to realising this.

savanta.com 32  020 8038 0607 [email protected]

This report has been prepared for general interest only and no representation or warranty (express or implied) is given as to the accuracy or completeness. Of the information contained in it, to the extent permitted by law, Savanta Limited and its employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of anyone relying on the information contained in this report or for any decision based on it. We expressly reserve all rights in and to the name “Savanta” and “BrandVue”, our logo, service marks, trading names and/or trademarks. © 2019 Savanta Limited. All rights reserved.