State of the nation
Casual dining is booming but independents are losing out, with consumers demanding quality, value for money and consistency above all else in 2014. Elly Earls reports
e’re eating out more often, average spend is up in almost every com- mercial restaurant category and, thanks to our increasing desire for quality, value for money, consistency and social expe- riences, casual dining is the fastest growing segment in the eating out market. But it’s not the only one that’s doing well; quick service is growing too, if not quite as fast, while the top end of fine dining has remained recession-proof, although it has had to move with the times. Yet, zoom in on the space in between fine dining and casual dining, and you’ll find independent restau- rateurs suffering, with sales, average spend and number of visits all on the decline. Overall, say commentators, it’s the opera- tors that are responsive to customers’ evolv- ing demands that have come out on top, and will continue to do so.
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Casual dining: booming Casual dining is without a doubt the sec- tor that has caused the biggest stir in the eating-out market this year, drawing an extra 47 million visits each year compared with five years ago, an increase of annual traffic by 11.6%, according to research from analyst firm the NPD Group. And when compared with the progress of full-service restaurants (defined by the NPD Group as formal/traditional restaurants and those serving Greek, Indian, Japanese, French and Italian food, among other types of cuisine), which have seen traffic decline by 11.4% since year end March 2009, it’s clear where much of their business is com- ing from. So why are diners being pulled away from
more formal establishments to casual din- ing restaurants, which in the NPD Group’s terms include operators such as Gourmet Burger Kitchen (GBK), Strada, Carluccio’s and Giraffe? According to the NPD Group, it’s not just their attractive prices. Indeed, despite the average bill per visit of around £11.50 for a dinner, casual dining’s growth has out- paced the cheaper fast-food channel, where the average spend per visit is much lower at only £5.04. Moreover, casual dining is only slightly more affordable than the full ser- vice channel, where bills per visit work out at about £15.70. Rather, branded operators provide the
best of both worlds, the NPD Group believes – the combination of the ambience and quality of food that a full-service restaurant
Restaurant Insight Report | September 2014 4
The concentration of pubs and resta
2, 237
2,
NORTHERN IRELAND 596 1, 421
WALES
607
SOUTH WEST
5,
offers, with the speed and delivery of a quick- service outlet. They’re also good family options, something that’s top of mind for many consumers in 2014. “Appealing to families has been a key part
of the out-of-home market’s evolution,” says Cyril Lavenant, director of foodservice UK at the NPD Group. “Occasions featuring chil- dren are driving growth completely, with adult-only occasions in decline.” Peter Backman is managing director of
foodservice market trends and data provider Horizons, which in contrast to the NPD Group, includes pubs as well as branded restaurants within ‘casual dining’, defining it as the segment where customers spend £10-20 per meal. He says it’s the increasing reliability of the branded portion of casual dining that has largely been responsible for its growth. “They provide good value for money but also consistency,” he says.
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