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In-store Catering - UK - November 2011

“One of the key challenges for the in-store catering market is the general lack of engagement with consumers. As it is often just seen as a refuelling option, and not an experience, it has been particularly vulnerable to downturn in consumer spending.”

– Helena Spicer, Senior Foodservice Analyst

Some questions answered in this report include:

  • How can in-store caterers add value to the shopping experience and broaden their appeal?
  • What can in-store caterers learn from the wider eating out market in terms of cultivating a ‘want to buy’ mentality?
  • How can the sector improve its quality credentials while delivering on convenience?
  • How can in-store caterers retain their share of the leisure pound?

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Table of contents

  1. Introduction

      • Definition
        • Abbreviations
        • Executive Summary

            • The market
              • Figure 1: UK in-store catering market size and forecast, 2006-16
            • Department stores and variety stores
              • Supermarkets/grocery retailers
                • Bookstores and music stores
                  • Garden centres and DIY stores
                    • Furniture stores
                      • Market factors
                        • Broader market environment
                          • Department stores and variety stores
                            • Supermarkets/grocery retailers
                              • Bookstores and music stores
                                • Garden centres and DIY stores
                                  • Furniture stores
                                    • Companies, brands and innovation
                                      • Market share
                                        • Figure 2: Number of retail outlets and in-store catering outlets, by brand/store name, 2011
                                      • Innovations
                                        • The casualisation of eating out
                                          • Experience-driven concepts
                                            • Wider distribution
                                              • The consumer
                                                • In-store catering outlets visited
                                                  • Figure 3: In-store catering outlets visited, September 2011
                                                • Reasons for eating in in-store catering outlets
                                                  • Figure 4: Reasons for eating at in-store restaurants, by sector, September 2011
                                                • Attitudes towards in-store catering outlets
                                                  • Figure 5: Attitudes towards in-store catering outlets, September 2011
                                                • In-store catering target groups
                                                  • What we think
                                                  • Issues in the Market

                                                      • How can in-store caterers add value to the shopping experience and broaden their appeal?
                                                        • What can in-store caterers learn from the wider eating out market in terms of cultivating a ‘want to buy’ mentality?
                                                          • How can the sector improve its quality credentials while delivering on convenience?
                                                            • How can in-store caterers retain their share of the leisure pound?
                                                            • Future Opportunities

                                                                • Let’s Make a Deal
                                                                  • Experience is All
                                                                  • Broader Market Environment

                                                                    • Key points
                                                                      • Unemployment – stable but unnerving
                                                                        • Figure 6: Employment and unemployment, by gender, 2006-16
                                                                      • Consumer confidence remains fragile
                                                                        • Figure 7: GfK NOP Consumer Confidence Index, monthly, January 2007-September 2011
                                                                      • Uptick in some markets, but restrained consumer spending overall
                                                                        • Figure 8: Agreement with selected lifestyle statements on spending, 2007-11
                                                                      • Demographic trends
                                                                        • Figure 9: Trends in the age structure of the UK population, 2006-16
                                                                        • Figure 10: Forecast adult population trends, by lifestage, 2006-16
                                                                        • Figure 11: UK households, by size, 2006-16
                                                                    • Competitive Context

                                                                      • Key points
                                                                        • Eating out market
                                                                          • Coffee shop market
                                                                            • Sandwiches and lunchtime food
                                                                              • Supermarkets
                                                                                • Grab and go market
                                                                                  • In-home options
                                                                                    • Figure 12: Trends in buying more premium foods instead of eating out, January 2009-August 2011
                                                                                  • Leisure/shopping centres
                                                                                    • Online shopping
                                                                                      • Figure 13: Most popular types of products purchased online regularly, 2010
                                                                                    • Online fashion retailing
                                                                                      • Online grocery retailing
                                                                                        • Figure 14: Online grocery sales as a proportion of the overall grocery sector, 2006-11
                                                                                    • Strengths and Weaknesses in the Market

                                                                                      • Strengths
                                                                                        • Weaknesses
                                                                                        • Who’s Innovating

                                                                                          • Key points
                                                                                            • The casualisation of eating out
                                                                                              • Experience-driven concepts
                                                                                                • Wider distribution
                                                                                                • Market Size and Forecast

                                                                                                  • Key points
                                                                                                    • Mixed fortunes see market stagnate in 2011
                                                                                                      • Figure 15: Market size and forecast of the UK in-store catering market, 2006-16
                                                                                                    • Retail market overview
                                                                                                      • Impact of online sales
                                                                                                        • In-store catering overview
                                                                                                          • Forecast
                                                                                                            • Figure 16: UK in-store catering market size and forecast, 2006-16
                                                                                                          • Forecast methodology
                                                                                                          • Market Share

                                                                                                            • Key points
                                                                                                              • Figure 17: Number of retail outlets and in-store catering outlets, by brand/store name, 2011
                                                                                                          • Department Stores and Variety Stores

                                                                                                            • Key points
                                                                                                              • Department stores
                                                                                                                • Market overview
                                                                                                                  • Figure 18: Visits to a department store in the last three months, 2007-11
                                                                                                                • Consumer in-store catering usage
                                                                                                                  • Companies and products
                                                                                                                    • Debenhams
                                                                                                                      • House of Fraser
                                                                                                                        • John Lewis
                                                                                                                          • Fenwick
                                                                                                                            • Harvey Nichols
                                                                                                                              • Harrods
                                                                                                                                • Selfridges
                                                                                                                                  • Variety stores
                                                                                                                                    • Market overview
                                                                                                                                      • Consumer in-store catering usage
                                                                                                                                        • Companies and products
                                                                                                                                          • Marks & Spencer
                                                                                                                                            • Bhs
                                                                                                                                            • Supermarkets/Grocery Retailers

                                                                                                                                              • Key points
                                                                                                                                                • Market overview
                                                                                                                                                  • Online grocery sales
                                                                                                                                                    • Consumer in-store catering usage
                                                                                                                                                      • Companies and products
                                                                                                                                                        • Asda
                                                                                                                                                          • Morrisons
                                                                                                                                                            • Sainsbury’s
                                                                                                                                                              • Tesco
                                                                                                                                                                • Waitrose
                                                                                                                                                                • Bookstores and Music Stores

                                                                                                                                                                  • Key points
                                                                                                                                                                    • Bookstores
                                                                                                                                                                      • Market overview
                                                                                                                                                                        • Figure 19: Visits to a book shop in the last 12 months, 2007-11
                                                                                                                                                                      • Consumer in-store catering usage
                                                                                                                                                                        • Companies and products
                                                                                                                                                                          • Waterstone’s
                                                                                                                                                                            • Music stores
                                                                                                                                                                              • Market overview
                                                                                                                                                                                • Companies and products
                                                                                                                                                                                • Garden Centres and DIY Stores

                                                                                                                                                                                  • Key points
                                                                                                                                                                                    • Garden centres
                                                                                                                                                                                      • Market overview
                                                                                                                                                                                        • Consumer in-store catering usage
                                                                                                                                                                                          • Companies and products
                                                                                                                                                                                            • Dobbies Garden Centres
                                                                                                                                                                                              • The Garden Centre Group (previously Wyevale)
                                                                                                                                                                                                • DIY stores
                                                                                                                                                                                                  • Market overview
                                                                                                                                                                                                    • Figure 20: DIY in the home in the last 12 months, 2007-11
                                                                                                                                                                                                  • Consumer in-store catering usage
                                                                                                                                                                                                    • Companies and products
                                                                                                                                                                                                      • B&Q
                                                                                                                                                                                                      • Furniture Stores

                                                                                                                                                                                                        • Key points
                                                                                                                                                                                                          • Market overview
                                                                                                                                                                                                            • Figure 21: Furniture bought in the last 12 months, 2007-11
                                                                                                                                                                                                          • Consumer in-store catering usage
                                                                                                                                                                                                            • Companies and products
                                                                                                                                                                                                              • IKEA
                                                                                                                                                                                                              • Use of In-Store Catering

                                                                                                                                                                                                                • Key points
                                                                                                                                                                                                                  • Supermarkets are still the most popular in-store catering venues
                                                                                                                                                                                                                    • Figure 22: In-store catering outlets visited, September 2011
                                                                                                                                                                                                                  • Supermarkets battling with a contraction in family spending
                                                                                                                                                                                                                    • M&S targets diners with a variety of service formats
                                                                                                                                                                                                                      • Department store catering is not seen as an important reason to visit
                                                                                                                                                                                                                        • Leveraging pester power could prove beneficial to furniture store caterers
                                                                                                                                                                                                                          • Bookstores in decline: opportunities for growth may lie in becoming more multifaceted
                                                                                                                                                                                                                            • DIY stores represent only a small proportion of the in-store catering market
                                                                                                                                                                                                                            • Reasons for Eating at In-Store Restaurants

                                                                                                                                                                                                                              • Key points
                                                                                                                                                                                                                                • In-store catering primarily seen as a refuelling option
                                                                                                                                                                                                                                  • Figure 23: Reasons for eating at in-store restaurants, by sector, September 2011
                                                                                                                                                                                                                                • Supermarket in-store catering users are habitual refuellers
                                                                                                                                                                                                                                  • Consumers are looking for an ‘escape’ in department store restaurant/cafés
                                                                                                                                                                                                                                    • Garden centre in-store catering users are looking for more of an experience
                                                                                                                                                                                                                                    • Attitudes Towards In-store Catering Outlets

                                                                                                                                                                                                                                      • Key points
                                                                                                                                                                                                                                        • Shoppers are unengaged with in-store catering, leading to missed revenue
                                                                                                                                                                                                                                          • Figure 24: Attitudes towards in-store catering outlets, September 2011
                                                                                                                                                                                                                                      • In-store Catering Targeting Opportunities

                                                                                                                                                                                                                                        • Key points
                                                                                                                                                                                                                                          • Three key in-store catering target groups
                                                                                                                                                                                                                                            • Figure 25: In-store catering target groups, September 2011
                                                                                                                                                                                                                                          • Apathetic Users (53% of consumers aged 16+)
                                                                                                                                                                                                                                            • The Un-Engaged (29% of consumers aged 16+)
                                                                                                                                                                                                                                              • In-store Enthusiasts (18% of consumers aged 16+)
                                                                                                                                                                                                                                              • Appendix – Use of in-store Catering

                                                                                                                                                                                                                                                  • Figure 26: In-store catering outlets visited, September 2011
                                                                                                                                                                                                                                                  • Figure 27: Most popular in-store catering outlets visited, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 28: Next most popular in-store catering outlets visited, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 29: Other in-store catering outlets visited, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 33: In-store catering outlets visited, by financial situation, September 2011
                                                                                                                                                                                                                                                  • Figure 34: In-store catering outlets visited, by feeling about financial situation, September 2011
                                                                                                                                                                                                                                              • Appendix – Reasons for Eating in an In-store Catering Outlet

                                                                                                                                                                                                                                                  • Figure 35: Reasons for eating in an in-store catering outlet, September 2011
                                                                                                                                                                                                                                                  • Figure 36: Most popular reasons for eating in an in-store catering outlet in a supermarket, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 37: Next most popular reasons for eating in an in-store catering outlet in a supermarket, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 38: Most popular reasons for eating in an in-store catering outlet in a variety store, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 39: Next most popular reasons for eating in an in-store catering outlet in a variety store, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 40: Reasons for eating in an in-store catering outlet in a department store, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 41: Reasons for eating in an in-store catering outlet in a garden centre, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 42: Reasons for eating in an in-store catering outlet at other stores, by detailed demographics, September 2011
                                                                                                                                                                                                                                              • Appendix – Attitudes Towards In-store Catering Outlets

                                                                                                                                                                                                                                                  • Figure 43: Attitudes towards in-store catering outlets, September 2011
                                                                                                                                                                                                                                                  • Figure 44: Agreement with statement ‘They offer good value’ and ‘I have been cutting back on eating at in-store cafés/restaurants to save money’, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 45: Agreement with statement ‘They offer a good variety of food’ and ‘I like them because I know exactly what I will get’, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 46: Agreement with statement ‘The food quality is usually not very good’ and ‘I’m put off when they don’t have relaxed/comfortable seating’, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 47: Agreement with statement ‘They don’t seem very appealing/interesting’ and ‘They are convenient when I need to eat in a hurry’, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 48: Agreement with statement ‘They cater well to children/they are family friendly’ and ‘I tend to forget they’re there’, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 49: Agreement with statement ‘They are an important part of the shopping experience’ and ‘I only use them as a last resort’, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 50: Attitudes towards in-store catering outlets, by most popular attitudes towards in-store catering outlets, September 2011
                                                                                                                                                                                                                                                  • Figure 51: Attitudes towards in-store catering outlets, by next most popular attitudes towards in-store catering outlets, September 2011
                                                                                                                                                                                                                                                  • Figure 52: Attitudes towards in-store catering outlets, by other attitudes towards in-store catering outlets, September 2011
                                                                                                                                                                                                                                                  • Figure 53: Attitudes towards in-store catering outlets, by financial situation, September 2011
                                                                                                                                                                                                                                                  • Figure 54: Attitudes towards in-store catering outlets, by feeling about financial situation, September 2011
                                                                                                                                                                                                                                              • Appendix – In-Store Catering Targeting Opportunities

                                                                                                                                                                                                                                                  • Figure 55: In-store catering target groups, by detailed demographics, September 2011
                                                                                                                                                                                                                                                  • Figure 56: Attitudes towards in-store catering outlets, by in-store catering target groups, September 2011
                                                                                                                                                                                                                                                  • Figure 57: In-store catering outlets visited, by in-store catering target groups, September 2011
                                                                                                                                                                                                                                                  • Figure 58: Reasons for eating in an in-store catering outlet, by in-store catering target groups, September 2011
                                                                                                                                                                                                                                                  • Figure 59: Reasons for eating in an in-store catering outlet, by in-store catering target groups, September 2011
                                                                                                                                                                                                                                                  • Figure 60: Reasons for eating in an in-store catering outlet, by in-store catering target groups, September 2011
                                                                                                                                                                                                                                                  • Figure 61: Financial situation, by in-store catering target groups, September 2011
                                                                                                                                                                                                                                                  • Figure 62: Feeling about financial situation, by in-store catering target groups, September 2011

                                                                                                                                                                                                                                              Companies Covered

                                                                                                                                                                                                                                              • Arcadia Group
                                                                                                                                                                                                                                              • Asda Group Ltd
                                                                                                                                                                                                                                              • Ben & Jerry's (UK)
                                                                                                                                                                                                                                              • Bentalls Plc
                                                                                                                                                                                                                                              • Bhs Ltd
                                                                                                                                                                                                                                              • Caffé Nero Group Plc
                                                                                                                                                                                                                                              • Carluccio's
                                                                                                                                                                                                                                              • Co-operative Group
                                                                                                                                                                                                                                              • Costa
                                                                                                                                                                                                                                              • Debenhams Total (GTV)
                                                                                                                                                                                                                                              • Dobbies Garden Centres plc
                                                                                                                                                                                                                                              • Ella's Kitchen Ltd
                                                                                                                                                                                                                                              • Fenwick Ltd
                                                                                                                                                                                                                                              • Harvey Nichols UK
                                                                                                                                                                                                                                              • Hix Restaurant and Bar
                                                                                                                                                                                                                                              • HMV Retail Ltd
                                                                                                                                                                                                                                              • Homebase Ltd
                                                                                                                                                                                                                                              • House of Fraser Plc
                                                                                                                                                                                                                                              • IKEA
                                                                                                                                                                                                                                              • J. Sainsbury
                                                                                                                                                                                                                                              • John Lewis Plc (department store)
                                                                                                                                                                                                                                              • Kantar Media
                                                                                                                                                                                                                                              • Kingfisher UK & Ireland
                                                                                                                                                                                                                                              • Krispy Kreme UK
                                                                                                                                                                                                                                              • Maison Blanc Ltd
                                                                                                                                                                                                                                              • Marks & Spencer
                                                                                                                                                                                                                                              • McDonald's Restaurants Limited (UK)
                                                                                                                                                                                                                                              • Office of Fair Trading
                                                                                                                                                                                                                                              • Selfridges Group
                                                                                                                                                                                                                                              • Starbucks Coffee Company UK Ltd
                                                                                                                                                                                                                                              • Tesco Plc
                                                                                                                                                                                                                                              • Wagamama Ltd
                                                                                                                                                                                                                                              • Waitrose
                                                                                                                                                                                                                                              • Waterstones Booksellers
                                                                                                                                                                                                                                              • Wm Morrison Supermarkets
                                                                                                                                                                                                                                              • Wyevale Garden Centres
                                                                                                                                                                                                                                              • Yo! Sushi

                                                                                                                                                                                                                                              In-store Catering - UK - November 2011

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