What is the Outlook for the Restaurant Trade in the UK in the Coming Years



Research and Markets (http://www.researchandmarkets.com/reports/c24621) has announced the addition of Restaurants Market Report Plus 2005 to their offering

Consumer spending on restaurant meals stalled at 12bn at current prices during 2003 and 2004, as a result of falling confidence combined with the negative impact of publicity on fast food, obesity and healthy eating. In the 5 years to 2004, growth in spending of 11.1% was well below total growth in the consumer economy.

However, the restaurants market does contain areas of optimism as well as pessimism. Defined to cover only sit-down meals within restaurants (excluding takeaways and not counting alcohol in the 12bn value), the market is still led by fast-food meals (24.2% market share in 2004) despite falling between 2000 and 2004, but faster growth is coming from the second-largest providers, public houses (pubs) and hotels. In a survey in 2005, 72% of adults were identified as users of pub-restaurants. Pubs have extended and improved their food offer, making it unnecessary for drinkers to move on' to separate restaurants to eat.

Traditional sectors of the very diverse UK market for restaurants - a diversity that is characteristic of consumer willingness to adapt to new styles of eating from all over the world - include curry houses and Chinese restaurants, steakhouses and unlicensed cafs, but these are suffering from the growth of newer concepts, such as fast-casual' dining, Spanish tapas and Japanese sushi. Larger towns and cities offer a wide range of opportunities to eat out, including various types of pizza/pasta or chicken-based restaurants, some of which are part of national or even international chains (e.g. Pizza Hut, Pizza Express, Kentucky Fried Chicken [KFC] and Nando's).

The majority of restaurants are, like most pubs, owned and run by individuals or families, but the market is polarised between these bistro' operations and the multinationals, such as McDonald's and Yum! Brands Inc (owner of Pizza Hut and KFC). The UK's largest indigenous operator is Whitbread PLC, with chains of pub-restaurants and cafs, as well as the UK franchise for Pizza Hut, totalling 1,450 restaurants. McDonald's is second, in terms of restaurant numbers, with approximately 1,300 branches all under the same brand. There have been a fair number of acquisitions among smaller players in 2004 and 2005, including the merger of three well-known brands - Pizza Express, ASK and Nando's under Altia Holdings.

Consumer research shows that the majority of adults eat out regularly, rising to more than 80% among the most affluent professionals. Avoiding cooking at home has become part of the lifestyle of busy consumers, particularly families with two earners. This basic demographic trend should underpin steady growth in future, once the uncertainties of mid-decade are overcome. The immediate future for restaurants holds the prospect of a complete ban on smoking, which should be beneficial to trade in the long term.

Companies featured in the report:

- Whitbread PLC
- McDonald's Restaurants Ltd
- Burger King
- Altia Holdings Ltd
- The Restaurant Group PLC
- Kentucky Fried Chicken
- Compass Group PLC
- Wimpy International Ltd
- Tragus Holdings Ltd
- Out Of Town Restaurant Group
- Giardino Group Ltd
- Luminar PLC
- La Tasca Restaurants Ltd
- Noble House Leisure Ltd
- Conran Restaurants Ltd
- Wagamama Ltd
- Loch Fyne Restaurants Ltd
- Paramount PLC
- Signature Restaurants Ltd
- Yo! Sushi Ltd
- Gaucho Grill PLC
- Pizza express Ltd

For more information visit http://www.researchandmarkets.com/reports/c24621

Laura Wood
Senior Manager
Research and Markets
Fax: +353 1 4100 980





What is the Outlook for the Restaurant Trade in the UK in the Coming Years