2. Strategic Analytical Review of the Catering Sector James Guild Oliver Benbow Gareth Williams Claire Ryder Lisa Westwood Bournemouth University BAIHM Business Strategy

3. Introduction Catering sector consists of: - Restaurants - Takeaways/Café’s - Pubs/Bars - Hotels Each sub-sector caters for a similar segment of the entire market Investing in the sector?

4. Introduction - statistics Restaurants take up 68% of the eating out market Market value reached an estimated 21.8 billion pounds in 2000 This indicates a market growth of 6% between 1995 and 2000 2 in 10 adults are choosing to eat out more often (leisure intelligence, 2001)

5. Restaurants - Fine Dining - Independent /Privately owned - Brassiere - Ethnic - A la Carte - Table d’hote - Themed/Branded Restaurants Analysed Sector - Restaurants

6. Reason for analysing Restaurants: Market Share HighLow Growth Boston Consultancy Group Model

7. Trends In The Catering Sector People want value for money More leisure time Social trends towards a healthier lifestyle Increase in PDI and consumer expenditure

8. Increase PDI and Consumer Expenditure Trends 1994-1999

9. Increase in eating out

10. Trends In The Catering Industry Inbound tourism

11. Direct - Takeaways/Café’s - Supermarket/Convenience Food - Pubs - Hotels - Contract Catering i.e. in store Competitors

12. Indirect - Theme parks - Leisure centres - Shopping centres - Cinemas - Hobbies

13. (DEEPLIST) Factors Influencing The Catering Sector Demographic - American demography of “large portions” - Woman from a large % of customers to restaurants in the daytime, however equal split during the evening - Consumers continue to seek value for money, with an AVG spend per capita of £389 - The UK public with the help of technology are more knowledgeable regarding foreign/ branded food

14. (DEEPLIST) Factors Influencing The Catering Sector Economic - Possible predicted “recession” - Current base rate lowest ever for decades - Food prices remain constant in the industry, following BSC and foot and mouth - Economic cycles

15. (DEEPLIST) Factors Influencing The Catering Sector Ecological - Consideration towards the use of recyclable goods - Possibility of extra operating expenses due to environmental friendliness - Foot and mouth

16. (DEEPLIST) Factors Influencing The Catering Sector Political - Impact of current worldwide political unrest - Implications of the Euro on the future economic position within the UK - Policies on subsidisation

17. (DEEPLIST) Factors Influencing The Catering Sector Legal - Legislation regarding increased minimum wage - European Union working time directive, 48 hour working week - Food and Safety Act 1995 - Disability Discrimination Act (Updated)

18. (DEEPLIST) Factors Influencing The Catering Sector Informational - Increased access to multimedia systems - Virtual tours - Consumers choice to access and research specified eating requirements

19. Social - Competition for leisure time - More women are working - Family orientation values (cocooning) - Large target market - Consumers are comfortable with established high street branded restaurants (DEEPLIST) Factors Influencing The Catering Sector

20. Technological - Cook-chill methods are on the increase allowing for a less skilled workforce to be employed - Growing use of internet - More consumer awareness via media publications

21. Risk Factors For Market Entry Saturated market Predicted recession High start up costs Increased home leisure activities Strict legislative factors Ego of founder Uncertainty of foreign expenditure

23. Future Trends In The Catering Industry Systematically increasing Disposable income Indirect competitors expected to gain in popularity in the next 4 years (i.e.theme parks) Social trends towards a healthier lifestyle Main target market (55+) is growing in age and numbers

24. Main Market Audience

25. Recommendations Branding/theme of product - possible franchise affiliation Strive to offer value for money Reserve of adequate capital Use celebrity image to produce image of quality Develop effective marketing strategies - target correct and emerging markets

26. Demographic location/infrastructure Know your legislation Effective and efficient use of resources Recommendations

27. Conclusion The next 5 yrs will see an uncertain economic climate, worldwide. However current trends indicate a growth in eating establishments, particularly branded outlets. People will continue to eat out,as it is now a characteristic of the population!