2. The state of eating-out Peter Martin, Peach Factory

3. Reaction to recession People arent staying at home Search for affordable luxuries Declining trends Experience seeking Green / ethical consumerism Growing trends Demand for simplicity Discretionary thrift Mercurial consumption Source: The post-recession consumer, P Flatters & M Willmott, Harvard Business Review, July-August 2009

4. Record year at the movies £1bn sales in UK in 2009

5. Top pub and restaurant chains ahead too Six months Easter to Xmas in positive territory Data from Coffer Peach Business Tracker

6. People still eating out Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009

7. …compared to 2008 Source: Eating-out and the Consumer 2008, Peach Factory/Harris Interactive (survey February 2008)

8. U25s driving eating-out (% eating out at least monthly) Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009

9. A brand literate nation Increase in recognition across the board in past 18 months

10. Brand awareness Which of the following pub and restaurant brands have you heard of? Over 90% know: McDonalds; Pizza Hut; Burger King; KFC; Starbucks; Little Chef; Wetherspoons; Wimpy; Subway Over 80% heard of: Beefeater; Pizza Express; Costa; Harvester; Over 70% know: Brewers Fayre; TGI Fridays; Frankie & Bennys; Pret a Manger; Caffe Nero; Yatess Over 60% heard of: Slug & Lettuce; Nandos; Café Rouge; Garfunkels Over 50% recognise: Bella Italia; Caffe Uno; Toby Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009

11. Biggest visibility winners La Tasca - up 19% points Café Rouge - up 16% Bella Italia - up 16% Caffe Nero - up 15% Carluccios - up 15% Wagamama - up 14% Toby - up 14% YO! Sushi - up 12% Pret - up 11% Nandos - up 11% Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009

12. People are using brands 1.McDonalds40% 2.KFC 27% 3.Wetherspoon 26% 4.Subway 26% 5.Pizza Hut21% 6.Burger King 20% 7.Starbucks 18% 8.Costa17% 9.Pizza Express 16% 10.Harvester 16% Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009 % eating at in past six months

13. People are using brands 11.Brewers Fayre14% 12.Nandos 13% 13.Frankie & Bennys13% 14.Beefeater10% 15.Pret9% 16.Caffe Nero 9% 17.Café Rouge 9% 18.Toby8% 19.Wagamama 8% 20.Little Chef 7% Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009 % eating at in past six months

14. Biggest winners Subway+6% pts Costa +6% Pizza Express+6% KFC+5% Nandos+5% Wetherspoon +4% Café Rouge +4% McDonalds+3% Wagamama +3% Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009 Increase in those visiting in past six months Value and promotion work

15. Brands in growth announcements only in past few weeks M&B to focus on six core brands Punch rolling out new concepts Nandos plans for 20plus openings this year, Clapham House plans to triple number of GBKs Tampopo plans to expand at a rate of three or four sites a year Busaba Eathai plans four more sites, Giraffe launches Guerilla Burgers a new burger restaurant Living Ventures launches Red Door Neighbourhood Bar & Kitchen. David Bruces Country Food & Dining secures fourth site

16. But theres competition Operators have to be smart

17. How good was the experience? A more mixed picture from a more discerning consumer (% rating experience good or excellent) Over 75% positive rating: Carluccios, Nandos, Prezzo, Wagamama Over 70% positive rating: Pizza Express; Beefeater; Harvester; La Tasca Over 65% positive rating: Café Rouge; Toby; Chef & Brewer; GBK; Table Table; Bella Italia; Pizza Hut; Subway; TGI Fridays; Pret a Manger Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009

18. But not all good news Consumers much more critical - by and large a dip in experience ratings Big risers - giving a better experience Carluccios, Nandos Big losers - giving a worse experience ….some casual dining brands who might be resting on their laurels Innovation, excitement and giving people a reason to go out…winning through Source: HARRIS INTERACTIVE / PEACH FACTORY - EATING OUT FIELD SURVEY: 12th August - 20th August 2009

20. A few words about pubs…. Only 25% of adults go to their local for a drink at least twice a month; just 8% weekly Over 60% drink at home at least twice a month; 38% weekly 65% say they like traditional pubs But not the centre of social lives Prefer pubs with good food and wine Source: Eating-out and the Consumer 2008, Peach Factory/Harris Interactive (survey February 2008)

21. What bosses are going to do about it Market imperatives

22. Biggest challenges 1.Consumer confidence 2.Economy 3.Employee relations 4.Access to funding 5.Changing customer habits But are generally optimistic

23. Issues for consumers 1.Quality of experience 2.Service 3.Price 4.Consistency

24. Becoming more important 1.Customer service 2.Online marketing 3.Staff training 4.Strong brand identity 5.Menu development 6.Customer feedback / research

25. Technological solutions: Voice recognition to improve drive-thru, carry-out and delivery orders - staying on top of costs

26. Where need to improve 1.Online activity 2.Consumer research 3.Marketing 4.Property / site acquisition 5.Staff training and development

27. Where invest 1.Service levels 2.Food quality 3.Marketing and promotions 4.Menu development

28. Investing in service culture

29. The new wallet

30. It is not the strongest of the species that survives, not the most intelligent, but the one most responsive to change. Jim Sullivan quoting Darwin